Jul
16
The ISA Millionaire
Filed Under Investing | Leave a Comment
Sam Gooch
If you are unfamiliar with ISAs, here’s a quick summary. Each year, everyone over the age of 16 is entitled to a tax free savings allowance. The total limit is currently set at £7,200 (although there have been rumours that this will increase) of which a maximum of £3,600 can be invested into a cash ISA, then the remaining amount into a stocks and shares ISA, or the full allowance £7,200 can be used to invest in a stocks and shares ISA.
Any interest earned from cash ISAs, or similarly any returns gained through stocks and shares ISAs is completely tax-free, helping your savings to grow faster.
Although cash ISAs do offer attractive rates, there is more money to be made from investment ISAs. As with all dealings on the stock market, there is an element of risk involved, so you have to do a bit of research into where you choose to invest, and steer clear of shares that are likely to fall.
Many people have now proven that by investing your maximum ISA allowance to create a base for your strategy, you can actually become an ISA millionaire, without having to pay any taxes on your returns.
These Isa millionaires did take around 20 years to build up to this figure – including ISAs predecessors ‘personal equity plans’ (Peps) which were previously used as a form of tax shelter.
This new breed of ISA millionaires will all give you the same advice, never waste a year’s Pep or Isa allowance.
This was of course down to knowledge and luck, as an ISA wrapper allows you to invest in what you want, as opposed to letting a bank invest on your behalf, but this can be half the fun of it. It doesn’t take long to see that these people have saved hundreds of thousands that would have otherwise gone straight to the tax-man
Last year, despite the state of the economy, Barclays Stockbrokers produced a number of people lucky enough to become ISA millionaires from their stock selections.
If you are unfamiliar with ISAs, here’s a quick summary. Each year, everyone over the age of 16 is entitled to a tax free savings allowance. The total limit is currently set at £7,200 (although there have been rumours that this will increase) of which a maximum of £3,600 can be invested into a cash ISA, then the remaining amount into a stocks and shares ISA, or the full allowance £7,200 can be used to invest in a stocks and shares ISA.
Any interest earned from cash ISAs, or similarly any returns gained through stocks and shares ISAs is completely tax-free, helping your savings to grow faster.
Although cash ISAs do offer attractive rates, there is more money to be made from investment ISAs. As with all dealings on the stock market, there is an element of risk involved, so you have to do a bit of research into where you choose to invest, and steer clear of shares that are likely to fall.
Many people have now proven that by investing your maximum ISA allowance to create a base for your strategy, you can actually become an ISA millionaire, without having to pay any taxes on your returns.
These Isa millionaires did take around 20 years to build up to this figure – including ISAs predecessors ‘personal equity plans’ (Peps) which were previously used as a form of tax shelter.
This new breed of ISA millionaires will all give you the same advice, never waste a year’s Pep or Isa allowance.
This was of course down to knowledge and luck, as an ISA wrapper allows you to invest in what you want, as opposed to letting a bank invest on your behalf, but this can be half the fun of it. It doesn’t take long to see that these people have saved hundreds of thousands that would have otherwise gone straight to the tax-man
Last year, despite the state of the economy, Barclays Stockbrokers produced a number of people lucky enough to become ISA millionaires from their stock selections.
Jul
13
David Vagner
The battle between investment activity in the internet and real world became enough tangible. I decided to broaden the subject and tell the beginners (making professionals thinking) about the differences and vice versa similarities between investment activity in the Internet and real world.
Simplicity. Effectiveness. Security. Perspective. Opportunities. That`s how we can outline the circle of the points, where the difference between two various investment worlds lies. In fact, investor, willing to deposit money, meets much more questions of the individual character.
However, if there`s a difference in some general question, there can`t be any consent in particular ones… so, let`s think, is it worth doing e-business, maybe it`s better to go back to the real life?
The first thing, attracting every investor, willing to make e-money – is simplicity. On any count, the easiest way to buy, sell something etc., not going out of the house is via Internet. To be exact, Internet in particular gives such an opportunity (well, phone as well). So, there is simplicity. Here is Your money on the monitor – do anything You want.
Of course, You can grow fat, but… these are personal problems. The same with investments. If You used Your money right, You can multiple them, not going out of the house as well. Here is the question: is the tale real? And we are ready to answer with confidence: yes, it`s real! But there is just one snag to it. You will have to pay for the simplicity of using the funds and getting income in risk.
Risk – that`s the thing, scaring away many “loafers” and risk in particular is disadvantage of any Internet activity. Whatever You start to do, You can get into trouble. Unfortunately. Otherwise, why would we need to do anything, going out of the house?
We can suppose that lack of security is that very “damper”, keeping the market from epidemic “attack” of anyone who feels like it. Besides, the market itself is ambiguous in a way. There are very profitable and not very profitable investment tools. Not very profitable – opening bank deposit via the portal of this bank. And very profitable – HYIP. And there`s a risk here. You can find many HYIP on theHYIPs.net
It appears because it`s impossible to earn such interests without risking everything. You risk everything to get everything. That`s why HYIP often shoots blank, then smb. looses money. Yes, of course, there are HYIPs in the real world as well, but they need technologies much more complex, and that`s the reason why Internet is the most suitable and fruitful sphere for “risky investment” development.
That`s why in particular, major part of our articles is about how to secure oneself technically and how to become more experienced, communicating with investors themselves.
Though, it`s not all, of course. You can use Your funds at Your own discretion, without giving them to anybodies` hands. In the real life, giving money to anybodies` hands, You may earn about 20% per year, though You won`t be so nervous.
There`s a gradation in the real life from 10% to 20% hence – the risk is increasing. More risk – is criminally. In the life of e-investor there are two gradations. Either there`s much risk and money, or own work. Although, we don`t dispute about the fact that there are also low-yield investment programs. However, what`s the sense, if one can go to the bank twice a year to obtain the notorious security.
Let`s talk about using the funds with one’s own hand. Any possible means, available in the real world, are open for You in the Internet. There are some differences. First, anyone can use them. Second – anywhere, anytime, in any way. So that to exchange USD for e-gold
You need nothing more than an e-gold account. These are also direct investments. Gold is increasing – the funds are increasing as well. And we are not even speaking about FOREX market and buying securities. There`s nothing easier. Excluding some moments – see above.
Now, let`s talk about perspectives and opportunities. First of all, You don`t have to be a prophet to say that Internet is future and working with investments on-line – is just a future lessons teaching. Moreover, now there are much more opportunities on-line that in the real life.
Roughly speaking, even a child can go in for investment activity, in case of having enough willing and knowledge. Now we need only to eliminate the defects, we were talking about and such form of earnings will not just compete, it will be more attractive than investment in the real world! Well then, we are waiting.
On the whole, summing up, we can say the following. If You want a stable, reliable income, You can put Your money to a bank. If You want more income – give it to people, knowing about the trades on securities` market and things like that. If not – Internet is for You.
Besides, it gives convenience to handle the funds. If You are overbold – You can work on the exchange. However, Internet and nothing more is convenient here. There`s no need to go to an exchange, everything is reliable and easy enough. And, it`s even more convenient to buy or to sell something on-line.
The battle between investment activity in the internet and real world became enough tangible. I decided to broaden the subject and tell the beginners (making professionals thinking) about the differences and vice versa similarities between investment activity in the Internet and real world.
Simplicity. Effectiveness. Security. Perspective. Opportunities. That`s how we can outline the circle of the points, where the difference between two various investment worlds lies. In fact, investor, willing to deposit money, meets much more questions of the individual character.
However, if there`s a difference in some general question, there can`t be any consent in particular ones… so, let`s think, is it worth doing e-business, maybe it`s better to go back to the real life?
The first thing, attracting every investor, willing to make e-money – is simplicity. On any count, the easiest way to buy, sell something etc., not going out of the house is via Internet. To be exact, Internet in particular gives such an opportunity (well, phone as well). So, there is simplicity. Here is Your money on the monitor – do anything You want.
Of course, You can grow fat, but… these are personal problems. The same with investments. If You used Your money right, You can multiple them, not going out of the house as well. Here is the question: is the tale real? And we are ready to answer with confidence: yes, it`s real! But there is just one snag to it. You will have to pay for the simplicity of using the funds and getting income in risk.
Risk – that`s the thing, scaring away many “loafers” and risk in particular is disadvantage of any Internet activity. Whatever You start to do, You can get into trouble. Unfortunately. Otherwise, why would we need to do anything, going out of the house?
We can suppose that lack of security is that very “damper”, keeping the market from epidemic “attack” of anyone who feels like it. Besides, the market itself is ambiguous in a way. There are very profitable and not very profitable investment tools. Not very profitable – opening bank deposit via the portal of this bank. And very profitable – HYIP. And there`s a risk here. You can find many HYIP on theHYIPs.net
It appears because it`s impossible to earn such interests without risking everything. You risk everything to get everything. That`s why HYIP often shoots blank, then smb. looses money. Yes, of course, there are HYIPs in the real world as well, but they need technologies much more complex, and that`s the reason why Internet is the most suitable and fruitful sphere for “risky investment” development.
That`s why in particular, major part of our articles is about how to secure oneself technically and how to become more experienced, communicating with investors themselves.
Though, it`s not all, of course. You can use Your funds at Your own discretion, without giving them to anybodies` hands. In the real life, giving money to anybodies` hands, You may earn about 20% per year, though You won`t be so nervous.
There`s a gradation in the real life from 10% to 20% hence – the risk is increasing. More risk – is criminally. In the life of e-investor there are two gradations. Either there`s much risk and money, or own work. Although, we don`t dispute about the fact that there are also low-yield investment programs. However, what`s the sense, if one can go to the bank twice a year to obtain the notorious security.
Let`s talk about using the funds with one’s own hand. Any possible means, available in the real world, are open for You in the Internet. There are some differences. First, anyone can use them. Second – anywhere, anytime, in any way. So that to exchange USD for e-gold
You need nothing more than an e-gold account. These are also direct investments. Gold is increasing – the funds are increasing as well. And we are not even speaking about FOREX market and buying securities. There`s nothing easier. Excluding some moments – see above.
Now, let`s talk about perspectives and opportunities. First of all, You don`t have to be a prophet to say that Internet is future and working with investments on-line – is just a future lessons teaching. Moreover, now there are much more opportunities on-line that in the real life.
Roughly speaking, even a child can go in for investment activity, in case of having enough willing and knowledge. Now we need only to eliminate the defects, we were talking about and such form of earnings will not just compete, it will be more attractive than investment in the real world! Well then, we are waiting.
On the whole, summing up, we can say the following. If You want a stable, reliable income, You can put Your money to a bank. If You want more income – give it to people, knowing about the trades on securities` market and things like that. If not – Internet is for You.
Besides, it gives convenience to handle the funds. If You are overbold – You can work on the exchange. However, Internet and nothing more is convenient here. There`s no need to go to an exchange, everything is reliable and easy enough. And, it`s even more convenient to buy or to sell something on-line.
Jul
7
I’m 23 and still in college, once i’m out where do i start investing?
Filed Under Investing | 5 Comments
chucknorris
I’ll be about 26 when i graduate with my bachelors in mechanical engineering. I would like to pursue a second degree in another type of science after i begin working and get a house.
I’ll be about 26 when i graduate with my bachelors in mechanical engineering. I would like to pursue a second degree in another type of science after i begin working and get a house.
I don’t have any investing knowledge, so i don’t know where to start.
I would like to retire early and live well, VERY WELL IF POSSIBLE, and am willing to work hard to get that.
Any tips on where i should start investing…or learning about investing. What type of investments are good for young starters like me,(IRA, Mutualfunds, stocks)
I consider myself very smart and a good self teacher, i just need good resources and advice.
please help, thankyou
Jun
12
fash12345
I want to get into the stock market and would like some tips and any good stocks to invest in for short term? help please!
Btw i’m starting with about 1k.
I want to get into the stock market and would like some tips and any good stocks to invest in for short term? help please!
Btw i’m starting with about 1k.
Apr
27
Become An Automatic Millionaire By Applying The Power Of Investing
Filed Under Investing | Leave a Comment
Adam Khoo
Now, you may be thinking that a 12.08% annual return from the stock market may not sound very exciting. However, when allowed to compound over a period of time, it will turn small amount of capital into huge returns!
In fact, by utilizing the power of options trading you can easily make 100%-500% return on your invested capital at times (although I don’t suggest you throw everything into this strategy). Using this strategy was precisely how my partner Conrad manages to make average of US$5,000- US$7,000 a month (his record is US$14,852.25 in January 2007) with less than US$5,000 in capital. That’s a 100% return in a month.
Imagine if you were to earn an average of $36,000 a year ($3,000 a month) for your entire working life of thirty years. This is assuming you start working at age 25 after graduating from university and retire at age 55. The total income you would receive would be $1.08 million ($36,000 x 30 years). So the good news is that you would already be earning a million dollars in your lifetime, without any help from me.
The bad news is that if you are like most people, you would probably spend most of the money you earn and a whole lot more. You would end up at the end of thirty years with nothing much left. What if you were to just invest 10% of that income a month (i.e. $300) into the US stock market Index and allowed it to compound annually at 12.08%, how much would it grow to? Using a financial calculator, you will find that $300 a month invested at 12.08% compounded annually will grow to $939,106! Isn’t that amazing! Just by investing 10% of your income, you get back almost all of that $1 million which you earned in the first place. This is possible because of the amazing power that compound interest (returns) can have on small amounts of capital over a long period of time! And the best part is that it takes very little investment knowledge to do this. All you have to do is to invest consistently in the Index.
I know that some of you are probably thinking that you don’t have thirty years to wait to make your first million. You probably want to achieve financial freedom within the next 10-15 years or less! The great news is that with some hard work and the savvy stock picking skills are available for you to learn and apply, you will confidently be able to achieve a minimum of 15%-25% compounded annual returns on your investment.
Now, you may be thinking that a 12.08% annual return from the stock market may not sound very exciting. However, when allowed to compound over a period of time, it will turn small amount of capital into huge returns!
In fact, by utilizing the power of options trading you can easily make 100%-500% return on your invested capital at times (although I don’t suggest you throw everything into this strategy). Using this strategy was precisely how my partner Conrad manages to make average of US$5,000- US$7,000 a month (his record is US$14,852.25 in January 2007) with less than US$5,000 in capital. That’s a 100% return in a month.
Imagine if you were to earn an average of $36,000 a year ($3,000 a month) for your entire working life of thirty years. This is assuming you start working at age 25 after graduating from university and retire at age 55. The total income you would receive would be $1.08 million ($36,000 x 30 years). So the good news is that you would already be earning a million dollars in your lifetime, without any help from me.
The bad news is that if you are like most people, you would probably spend most of the money you earn and a whole lot more. You would end up at the end of thirty years with nothing much left. What if you were to just invest 10% of that income a month (i.e. $300) into the US stock market Index and allowed it to compound annually at 12.08%, how much would it grow to? Using a financial calculator, you will find that $300 a month invested at 12.08% compounded annually will grow to $939,106! Isn’t that amazing! Just by investing 10% of your income, you get back almost all of that $1 million which you earned in the first place. This is possible because of the amazing power that compound interest (returns) can have on small amounts of capital over a long period of time! And the best part is that it takes very little investment knowledge to do this. All you have to do is to invest consistently in the Index.
I know that some of you are probably thinking that you don’t have thirty years to wait to make your first million. You probably want to achieve financial freedom within the next 10-15 years or less! The great news is that with some hard work and the savvy stock picking skills are available for you to learn and apply, you will confidently be able to achieve a minimum of 15%-25% compounded annual returns on your investment.
Apr
13
purvi
Looking to the present volatile market, I now want to invest in a gold bar or coin. Any tips? (like i studied the history of gold price, which shows that always between aug. sept. the prices get down)
Looking to the present volatile market, I now want to invest in a gold bar or coin. Any tips? (like i studied the history of gold price, which shows that always between aug. sept. the prices get down)
Apr
10
Melvin
You may ask, I don’t even get investment returns @ 10% with my mutual funds, how is it possible to get them risk free???
Yes, you can!
Well, you see the S&P 500 index (a basket of the 500 largest companies listed in the US market) has delivered 12.08% per year compounded returns over the past 50 years!
But… why is it risk free?
From 1956-66, it derived returns of 111.96%, 1966-76: 8.59%, 1976-86: 109.97%, 1986-96: 200.32%, 1996-2006: 101.26%…
You see, over a 10-year period, the S&P has never lost money for the past 50 years… in fact it was far from losing any money, that’s why there’s no risk at all in putting your money in the S&P!! It’s a sure make thing, over a 10 year period.
But you had better have the patience to put your money there. And put money only that you don’t need to take out, so you don’t take them out even in a down market. JUST PUT YOUR MONEY THERE AND WAIT!
Instead of buying a savers plan or endowment plan for a time horizon of 20-30 years or more, put it in the S&P! Just call your broker and tell him you want to buy SPY. It costs US$130 per unit. I guess that’s slightly less than S$250. Well, just buy 1 or 2 units a month (or more, if you can afford) as a savings plan. One unit at S$250 is just about S$8.33 a month! Instead of watching that movie ir buying that expensive handbag, car or other luxuries you don’t need, buy that SPY! You can put a larger sum in every month also.
Let’s see how much you’ll make over a 10, 20, 30 year period… Let’s conservatively assume that the S&P gives you only 8% p.a. compounded (that is still a good return compared to many mutual funds and all savings plan over the long term)
$500 a month for 10 years: $91,142 !
for 20 years: $286,723 !!
for 30 years: $709,307 !!!!!
$1,000 a month for 10 years: $182,283 !
for 20 years: $573,660 !!!!
for 30 years: $1.42 million !!!!!!!!!!
This is based only on a conservative return of 8% p.a. We know the S&P can fetch even more at 12%. Notice the great difference it makes by staying invested for an extra 10 years.
Compare staying invested at $1,000 a month for 20 years vs. 30 years: that’s about half a million difference!!!!! That differentiated the millionaire from the just-nice-now-I-can-retire person.
The lessons:
1. Stay invested longer!
2. Don’t waste time & get invested now!
See also now how those banks and insurance companies have been cheating us?????
Many of us would’ve been millionaires way before our desired retirement age had we saved $500 a month for 20 years, and not put our money into those stupid mutual funds and savings plans that gave us such low returns and choked our returns with sky-high sales, administrative & management fees!
In case you don’t already know, SPY charges only 0.2% operating expenses every year compared to the sky high fees of 2-4% of savings plans & unit trusts every year. This is because SPY does not require much work in tracking the S&P 500 index.
Call up your broker & buy that SPY every month and don’t withdraw your money no matter what happens! You only pay that one-time commission of buying and no more.
For more articles on investing, personal finance & self-transformation, visit my blog ‘Transform your Wealth & Life’ at http://www.thishelpsyou.blogspot.com.sg.
You may ask, I don’t even get investment returns @ 10% with my mutual funds, how is it possible to get them risk free???
Yes, you can!
Well, you see the S&P 500 index (a basket of the 500 largest companies listed in the US market) has delivered 12.08% per year compounded returns over the past 50 years!
But… why is it risk free?
From 1956-66, it derived returns of 111.96%, 1966-76: 8.59%, 1976-86: 109.97%, 1986-96: 200.32%, 1996-2006: 101.26%…
You see, over a 10-year period, the S&P has never lost money for the past 50 years… in fact it was far from losing any money, that’s why there’s no risk at all in putting your money in the S&P!! It’s a sure make thing, over a 10 year period.
But you had better have the patience to put your money there. And put money only that you don’t need to take out, so you don’t take them out even in a down market. JUST PUT YOUR MONEY THERE AND WAIT!
Instead of buying a savers plan or endowment plan for a time horizon of 20-30 years or more, put it in the S&P! Just call your broker and tell him you want to buy SPY. It costs US$130 per unit. I guess that’s slightly less than S$250. Well, just buy 1 or 2 units a month (or more, if you can afford) as a savings plan. One unit at S$250 is just about S$8.33 a month! Instead of watching that movie ir buying that expensive handbag, car or other luxuries you don’t need, buy that SPY! You can put a larger sum in every month also.
Let’s see how much you’ll make over a 10, 20, 30 year period… Let’s conservatively assume that the S&P gives you only 8% p.a. compounded (that is still a good return compared to many mutual funds and all savings plan over the long term)
$500 a month for 10 years: $91,142 !
for 20 years: $286,723 !!
for 30 years: $709,307 !!!!!
$1,000 a month for 10 years: $182,283 !
for 20 years: $573,660 !!!!
for 30 years: $1.42 million !!!!!!!!!!
This is based only on a conservative return of 8% p.a. We know the S&P can fetch even more at 12%. Notice the great difference it makes by staying invested for an extra 10 years.
Compare staying invested at $1,000 a month for 20 years vs. 30 years: that’s about half a million difference!!!!! That differentiated the millionaire from the just-nice-now-I-can-retire person.
The lessons:
1. Stay invested longer!
2. Don’t waste time & get invested now!
See also now how those banks and insurance companies have been cheating us?????
Many of us would’ve been millionaires way before our desired retirement age had we saved $500 a month for 20 years, and not put our money into those stupid mutual funds and savings plans that gave us such low returns and choked our returns with sky-high sales, administrative & management fees!
In case you don’t already know, SPY charges only 0.2% operating expenses every year compared to the sky high fees of 2-4% of savings plans & unit trusts every year. This is because SPY does not require much work in tracking the S&P 500 index.
Call up your broker & buy that SPY every month and don’t withdraw your money no matter what happens! You only pay that one-time commission of buying and no more.
For more articles on investing, personal finance & self-transformation, visit my blog ‘Transform your Wealth & Life’ at http://www.thishelpsyou.blogspot.com.sg.
Apr
10
How to invest money correctly?
Filed Under Investing | 3 Comments
Brandon W
G’day everyone.
G’day everyone.
I am just wondering, I am looking at investing some money. It’s only going to be about $5000.
Just wondering if anyone has any tips or anything on how to invest money correctly?
I heard many banks have a specific bank type which is like a High Interest Account. What are they exactly and how do they work?
Just to let everyone know I am living in Australia. So I am looking for some Australians to reply but if you are from another country I am still willing to read what you think.
This is very much appreciated.
Take care and enjoy,
Brandon
Apr
5
Couture x
I’ve always had an interest, but I think that especially now with the Stock Market not doing so great it is probably a good time to invest.
I’ve always had an interest, but I think that especially now with the Stock Market not doing so great it is probably a good time to invest.
Does anyone have a website that has good tips for beginners? I don’t plan to invest a lot (probably no more than $3000), but I just basically want to do it for fun and hopefully a little extra cash.
Mar
15
What are some good ways to invest for starters (ie stocks, cd, mutual funds, t-bills)?
Filed Under Investing | 6 Comments
jXoannee
Hi, I want to explore and learn about investing my money. What are some good ways to start with a small amount of money (ie $1000 — beginners gotta start somewhere).
Hi, I want to explore and learn about investing my money. What are some good ways to start with a small amount of money (ie $1000 — beginners gotta start somewhere).
I’ve only researched about t-bills. From my understanding, it seems like you earn about 5% by buying a discounted t-bill. Are there any better options?
Websites, info, tips, and explanations are appreciated.