Getting financial advice

Stansberry

Probably 90% of the advice dispensed from brokers, financial planners and pundits on CNBC is liable to make you broke. The guys on Wall Street don’t care 1 bit about you or whether or not you make money. What they do care about is making money for themselves.

For me, as an investor and business man, this has always been a problem. Who’s advice can you trust?

Really, the only way that you can get good, unbiased advice is to pay for it. Being as frugal (cheap) as I am, even I have a hard time breaking out my credit card when there are free alternatives on the internet. I just love the internet for all of the freebies that you can get. But sometimes, it pays to spend a little money. I would never go cheap for a lawyer if I was in trouble or if I was buying a million dollar house. So why should I go cheap when I’m managing a million dollar portfolio?

I’ve read articles on The Motley Fool and Seeking Alpha and I can say that most of these articles are written by amateurs who know little about the market and have (themselves) never had a real stake in a Wall Street position. Many of these guys are novice traders but they sure talk a big game.

I’ve gone back and read many of the :”old” MF & SA articles and checked the success rate and I’ve found that the number of winners depends solely on the overall market. When the overall market is up, about 70% of these picks make money. When the market is down, only about 30% of these pics make money. When the market is flat, about 1/2 of the recommendations make money. And so, throwing darts at the Wall Street Journal stock page is just as likely to yield winners as some of these “free” websites.

I tried a few investment services on a short trial basis and I found that Stansberry Research offered me a new and fresh look at the market. I found that Porter Stansberry and his team(s) don’t tell you what you want to hear, they tell you what they believe. They don’t have an sponsors to satisfy, any government lobbyist to appease, they just tell it like they see it. For some, this doesnt’ work, especially for “sheeple.”

Sheeple are part human, part sheep. They move along with the crowd. They want public acceptance and to “fit in.” These people will rarely become financially independent and will rarely become rich. These people buy at market highs, sell at lows and are afraid to do anything different from their golf buddies or colleagues at work. Stansberry writes what he thinks is happening in the stock market and for some people, this is very upsetting.

Since I subscribed to his newsletters about 3 years ago, I’ve seen my net worth grow about $300,000. And I can honestly say that 95% of that gain is due to the insights that I’ve received reading three of his newsletters.

I recommend that you give it a look. Maybe try one of his one month specials wherein he offers one of his newsletters at a discount for one month to let you try it out.

A bit of a disclaimer: the “main” newsletter is about $30 a year and it offers some basic overall market instruction and a couple of good buy ideas. But most of his really good material comes from his “premium” newsletters that can run from $50 a year up to $4,000 per year. Each daily email from the standard newsletter is usually accompanied by one or two sales pitches to buy a premium newsletter. And this is sometimes (really) annoying. But, if you just get in the habit to delete the sales emails, its really worth it.

Once in a while, he offers a good price to try out a premium newsletter; I’ve tried 4 and kept the subscriptions for 2 so that in total I now have 3 newsletters coming from him. I think I pay $30 + $60 + $50 per year. Not bad when held up to $300,000.

I don’t make a nickle from advertising for this company. Have a look at it if you want. Like I’ve said before, I’ve offered this website as a way to give some of my experience to others. So take it what its worth: the honest recommendation from a guy from a poor family who managed to save a million bucks.

Stansberry Research

Good luck, and good investing!

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Its all about your attitude

Happy grimmace sad

As I think more and more about the road to financial independence, I become more and more convinced that your attitude is the primary factor for success. Unlike the graphic above, whether or not you are happy or sad won’t decide if you will make a million dollars but your attitude towards getting to that goal will be everything.

At my work I’m surrounded by colleagues who make six figure salaries and barely can put together ten thousand dollars for a house down payment. There is NO reason why they can’t be financially successful (savings I mean, not earnings) except for their attitude. They treat money like air, something to be breathed in and out without a thought to saving, investing or planning for the next step in their lives. Opportunities about; the average person probably has about a half dozen opportunities in their life to stake a claim on their fortune. Whether or not you are prepared will mean everything.

I have one old buddy from high school who started real estate investing in the last 6 or 7 years. I even went in on one of his deals and it is paying off nicely. He first bought a 3 room house and then rented it followed by a one bedroom apartment. He paid enough down so that his monthly cash flow was positive on both properties. Later he bought (also with positive cash flows) a 3 unit condo complex and later a 4 unit apartment building (the unit I helped to finance). He has just informed me that he closed on an 18 unit apartment building. Each property has a positive cash flow and I estimate that he is earning somewhere between $6,000-8,000 per month in EXTRA income.

I say extra because he still has his job and his wife still has hers. Because the cost of financing is cheap (rates in the 4% range), he uses the extra $6k each month to finance new properties. After a year, you have an extra $80k – this can be used for a down payment on a new property. I guess that he will hit his million in a decade.

Realize now that he started with NOTHING. He and his wife worked, skimped and saved until they had enough to buy their first rental property. After that, they skimped and saved more. And over time, it is paying off handsomely. I suppose that in a few years he will be so busy managing his properties that he won’t have time to go to work. What a glorious day that will be when he can quit his job and be self employed.

The American Dream.

And so, what set him apart from his friends and colleagues who aren’t growing their net worth like him? It was all his attitude. He made a goal to own 20 properties and started with just one. When his first was bought, he set his sights on the next.

It was all ATTITUDE.

If your attitude isn’t such that your mindset is that you’re ALWAYS looking for your chance to stake a claim to one of your life’s jackpot opportunities then you’ll probably never succeed. Have an attitude check on yourself and ask if you’re motivated and focused on becoming a millionaire. If you are, you can find a way. If you aren’t, someone else will take that opportunity that you pass. They’ll be the “lucky” one who was “at the right place at the right time.”

Luck is when preparation meets with opportunity.

Good luck!

The use of copyrighted material in this website is protected by the Fair Use Clause of the U.S. Copyright Act of 1976, which allows for the sharing of copyrighted materials for the purposes of commentary, criticism and education.  All shared material will be attributed to its owner and a link provided when available.  All other comment on this site may be reproduced with the author’s consent.  Please source any references or quotes of this website to: http://www.my1stmillion.net

You are what you eat

I’m sure you’ve heard the saying “You are what you eat.” In many ways it is true; you need only look at the diet of an athlete and a couch potato to see that each looks much like what they eat. An athlete who eats chicken in rice is thin whereas a couch potato looks a bit like a soft & fatty cheeseburger.

Much in the same way, with finances you are what you eat. More exactly, you are what you think. This idea came to my mind as I was on break at work. I shuffled through some investments, made some options trades and netted about $250. As I sat back, happy with my financial gain, I looked around the room. Three of the other guys were playing fantasy football and comparing how many “points” they earned on Sunday’s games and one guy was gun shopping. Specifically, he was shopping for a Kalashnikov and he was calling out the prices that he found on each website. It seems that the going rate for an AK-47 is about $750 in America.

The next day, most of the guys were playing “fantasy football,” and my other colleague finally pulled the trigger on his AK purchase and gave his credit card number over to the tune of $750. I made another option trade, this time netting $500. He called over to me and told me that he bought the AK. I smiled and told him that I just made two options trades in the last two days for $750. In essence, he spent $750 and I made $750. The rest of the guys, they just spun their time along in football fantasy land.

As I talk to most of my colleagues, friends and relatives at parties and others that I meet here and there, I find that most people don’t focus or concentrate their efforts on finance. They are busy with fantasy football, golf, fixing up their pet car project or whatever else it is that people do when they aren’t working. I have my own hobbies: travel, writing, going to the movies, gym, etc. But, a good portion of my day (at least one hour) is spent studying finance. And it shows: I am financially successful. Now, if you don’t study finance, how can you expect to be financially successful? Just like the couch potato who eats and never exercises, as he is what he eats, your finances are what you think.

I might look at the markets for 6 or 7 days and never see a trade, but when one jumps out, I play it and make a few hundred bucks, its only because I’m studying the markets that I see the opportunities as they come up. My colleagues, well, they see good fantasy football and gun deals – but this won’t make them a million dollars.

If you want to grow your own million dollars, you need to be studying finance every day. You need to focus on it, think about it, you pretty much need to sleep with finance in your mind. If you invest in real estate, you should study real estate. If you are growing a car business, you should be thinking cars all day and night.

My point is, if you want to make a million dollars, you should be focusing on it every day, not on fantasy football or some other distraction. Remember, you are what you eat!

The use of copyrighted material in this website is protected by the Fair Use Clause of the U.S. Copyright Act of 1976, which allows for the sharing of copyrighted materials for the purposes of commentary, criticism and education.  All shared material will be attributed to its owner and a link provided when available.  All other comment on this site may be reproduced with the author’s consent.  Please source any references or quotes of this website to: http://www.my1stmillion.net