Don't know how to get started investing in the market stock?

Don't know how to get started investing in the market stock?

Learning how to invest in the market stock is been the best thing I ever did. It helped me to grow my wealth, feel confident about my financial future and freed from working longgggg hours in a job.

I don’t understand why schools don’t teach kids how to invest, but in my opinion, it should be a priority in out educational system. Today, I’m putting on my teacher cup teaching you how to start investing in the market stock. Please, don’t call me Professor Rudy 

The market stock is a wealth accelerator that required little time from you but pays exceptionally well. It’s not a coincidence that almost a quarter of the 400 names on the Forbes list of richest Americans work in investing and finance sector.

I would like to make clear that I’m not trying to push you to make a career out of investing. Simply put: I think every person with savings — no matter which age or amount of money — should invest in the market stock.

I also believe that If you aren’t investing in the stock market yet, you’re leaving a lot of money on the table and risking never retire comfortably.

But with all that said… investing is not as easy as deposit some money in a brokerage account. You need a strategy. So, in today’s post, I’m explaining the very basics — how to get started investing in the market stock without the fear of losing money or doing something “silly”.

First, why is so important to invest in the market stock? Here the benefitS:

• Multiply your saving with minimal effort.
• It helps to reach early retirement.
• Make more money with less work.
• It’s the most tax efficient income.
• Steady cash flow.

For those reasons, I truly believe that market stock investing is an essential ingredient for people that want to retire early and wealthy  — no matter how much money you have.

So, in this post, I’m laying out a basic stock market investment guide for beginners. And specifically, how you can get started right away, without using expensive financial advisers or managed funds.

Game on, my friend.

GET AN IDEA ABOUT WHERE TO INVEST

There are a lot of markets where to invest, and can be confusing for the first time investors. Most people believe, that USA is the best option to get started.  In part is true, but can be expensive.

If you are an American, investing in the USA market is your best and easiest option, but for outsiders, you better start looking at your local market first.

The reasons are:

1. It’s cheaper to trade with a local broker.
2. No need to exchange your money as the local market trades with local currency.
3. In site assistance. You can walk in your broker office to ask for help if you don’t understand something.
4. You know and use the products of many companies listed on the local stock exchange, it’s a no-brainer to invest on them.

There is no shame to start locally. Once you gain confidence and desire to expand to international markets, you’ll have already some basic knowledge to help you expand.

Having said that, if you’re living in a small country with limited listings than is better you start off by opening an international brokerage account. Also, some stock exchange doesn’t offer ETFs (exchange-traded fund) which are the cheapest option to diversify your investments.

ETFs track an index, offering an excellent diversification with the most valuable companies in that sector. Basically, by buying an ETF, you’re buying all the company within that index for a fraction of the price.

For example, the Vanguard S&P 500 ETF (VOO) track the most valuable company in the USA, and management cost is a mere 0.17% per year. Yes, you can buy all the best companies in the USA throughout an ETFs with a single transaction and a very low annuity fee.

OPEN A BROKERAGE ACCOUNT

In order to buy stock, you need the assistance of a stockbroker who is licensed to purchase securities on your behalf.

When investing locally, I recommend using a broker affiliated with your bank, if available. It’s convenient to transfer money from and to your bank account.

Most local brokerages charge similar fees, and in my experience is not worth to look at the pennies.  Some broker might have a better trading platform than others, but for beginners isn’t that important. What is important is to get started without procrastinating.

Now is the time to take action, are you ready? Call your bank asking if they offer brokerage services.

Don’t forget to opt for an online account so you can trade from the comfort of your couch. If you aren’t a tech savvy, you can use a full-service broker placing orders by phone.

International brokerage. There are reputable international brokers when planning to invest in the world markets. The majority are located in USA offering very low fees and access to multiple markets.

However, there is some extra paperwork to get started, plus you’ll have to transfer money incurring international fees and in most cases, convert currencies that add another layer of cost.

Keep in mind when opening an international account to select your home country currency if available. If not, go for US dollar as the majority of stock trade in the New York Exchange.

GET EDUCATED; KNOWLEDGE PAY THE MOST

Now you’re ready and so much excited to buy your first stock. Welcome to the investor world!

But before bluntly buy some stock, get yourself educated.

You don’t need to get a diploma or attend university (I think don’t exist one for investing) for years, simply learn some basic and invest with common sense. before jumping in. Just think about it; would you ever plan a dinner with your friends without recipes?

Just think about it; would you ever cook for your friends without recipes? Stock investing isn’t any different.

I know how attempting is to get started, and that is a good thing because it means that you’re motivated and eager to make a change to your financial life. However, you want to have a clear strategy of entry and exit, so to keep the emotions under control.

You might know this, but is worth repeating; investing is a very emotional experience. Seeing your portfolio stocks going up, feels great. On the other hand, seeing your stock going down not only feel depressing but might affect your personal life such having a bad mood or even not be able to sleep.

The stock market goes up and down all the time, something similar to a roller coaster. That’s is how it is, and you can’t change it. But what you can do is to keep your emotions in check by writing down a crystal clear strategy for your portfolio.

So, once the stock market goes in correction, you don’t panic. Instead, calmly you add in the position. At the core, investing is a simple equation; Buy low and sell high.

Look, when I first started, I was buying and selling stocks all the time feeling so nervous about any price changes. Over the years, I learn to accept the mechanic of the market stock, adapt to it, and benefiting from my strategy.

With time, not only you’ll get better, but also feel proud of your achievements. Remember, this is a journey, not a destination.

Below, few articles to get you started with your investment journey:

• Couch Potato Investing – The lazy way to wealth
• How most investors lose money in the market stock
• Do you want to invest in good stocks? Use common sense

Have fun!

http://smartmoneytoday.com/money/grow-your-money/stock-market/how-investing-market-stock-steps/

Did you watch the MythBusters TV series?

3 Myths About Stock Market Investing; Busted!

Did you watch the MythBusters TV series?

If you don’t know what I’m talking about, MythBusters is an Australian TV series where two guys do “weird” experiments busting myths. It’s astonishing to see how people genuinely believe in some of these myths, only to find out, they aren’t true.

We are biased from our society, culture, parents or friends to believe that stock market is risky, a kind of casino and only for rich people. The problem with market stock’s myths is that they are holding you back to access a wonderful wealth creation vehicle.

The stock market is a proven way to prosperity which is doing the heavy lifting for you. In fact, any wealthy person that I personally know, have money in the market stock. And the reason is simple; wealthy people are SMART with their money.

They know that investing in the stock market offer better returns than living money sitting in saving accounts, CDs or by holding bonds.

Now that I think about it, I’m guilty of procrastinating to invest in the market stock for years. I could have started in 2000 when I first get a paycheck, but I procrastinated till 2005. The result?

Hundreds of thousands of dollar in lost opportunities. My only regret is not have busted the market stock myths earlier.

That’s why in today post I’m going to bust the 3 biggest myths about stock market so you can start investing with confidence and peace of mind.

1# MYTHS – ONLY PROFESSIONALS CAN INVEST IN THE MARKET STOCK

One of the biggest myths about investing is that it’s hard and should be left to the experts.

“Oh dear”… I wish I knew any better. In my working years as Chef, I thought that market stock investing wasn’t suitable for the average person and should be handle over to professionals in the industry. I felt so scared to lose everything.

The logical next step (thinking back, not so logical) was giving my hard earned savings to a “professional” financial advisor. I prefer don’t share the amount of money I have lost, only the thought, make me sick – very sick. On the other hand, my financial planner bought a new Mercedes Benz and didn’t feel even sorry for my lost.

Over the years I’ve learned that we are responsible for managing our money. If we don’t, someone else will do for us but keeping most of the profits. Not only that, but you’re risking the capital invested whether the other party has no skin in the game.

Look, I feel your struggle in believing that you can do it, but believe me, you can.

I’m an ex-Chef, I didn’t go to university, I don’t have any investment qualifications or any fancy certificate… but today, I’m living comfortably by investing in the market stock. And I’m not the only one without a financial background to do so:

• Jay from FI Fighter – This guy is an engineer that gave up his successful career in Silicon Valley to truly experience life without the 8-5 drama. How? By investing. At the moment Jay is totally focused on investing in precious metal stocks. And let me tell you this; “He is making a hell of returns.” In 2016, he doubles his portfolio value.
• Sabeel from Road Map 2 Retire – Sabeel regularly saves part of his paycheck so he can grow his wealth by investing. He buys blue chips shares that pay regular dividends. He started in 2008 making a mere US$19 of dividend income in 2008. Last year he made US$ 9,000.

There are many regular guys out there that are investing and doing exceptionally well. Do you still think that you can’t?

Hell yeah! Investing is like any other professions. First, you learn the basics, and then you practice till you become an expert.

Man, just get started. It’s going to be an exciting journey.

2# MYTHS – DIVERSIFY OR YOU ARE GOING TO GET ROASTED

Can I be honest even if I’m going to be brutal?

This is really good advice for people who are ignorant about investing. This myth is been created by the financial industry to protect people from their own ignorance.

And it goes along these lines:

• Diversify to minimize risks.
• Diversify and hold your portfolio for the long term.
• Play it safe, diversify.
• Diversify by your age; % of stocks and % of bonds. The older you get, the more bonds you should hold.

I don’t say that diversity is a bad thing, but my point is that knowledgeable investors don’t diversify; Bill Gates major investment is Microsoft – Warren Buffett’s portfolio of over $100 billion is focused on about 10 stocks – Jeff Bozos main interest is Amazon.com.

By focusing on the thing that they know and can do best, rich people get richer while poor people get poorer.

The answer is to Invest in what you understand and only when is on sale. It’s like get a 10 dollar bill for a fiver. If you can learn to do that, diversification is a waste of time and most luckily going to reduce your returns.

So, what do you want to do?

The choice is yours.

P.S Please, don’t tell your financial planner about this. He might seriously act as a weirdo.

3# MYTHS – YOU CAN’T BEAT THE MARKET

This is a tricky one, and the reason is because only a small elite of investors can beat the market – regularly.

In fact, the Pareto law is at work here; 20% of investors take the 80% of the rewards. On the other hand, 80% of investors barely make a profit or lose money in the process.

You can understand better by studying the market wizards who have accumulate riches over the years.

However, the small investors like you have an advantage; FLEXIBILITY.

The BIG guys run BIG funds, making them quite illiquid and corner to a minority of investments and markets.

In fact, the act of a BIG guy exiting a stock or sector is the reason stock price goes down. As the price drop, other BIG guys feel the squeeze forcing to liquidate their positions causing “sell panic.”

Just think about the domino effect.

Save

The good thing going for you here is that you can access to a broader investment marketplace (small sectors where hedge funds can’t operate) and also, be much more flexible in your investment strategy. BIG guys need in average 3-12 weeks to exit a position. A small investor can exit in hours – few days most.

If you’re knowledgeable about that company and sector, you can stay calm and buy it at a great discount price while the BIG guys are in full panic mode. And when you do that, you will crash the market, literally.

And you might wonder: “Rudy, how much you would consider small?”

That is a good question, my friend. Look, there isn’t an all fit type of answer, varying by investments and sectors. However, if you are investing in the local market stock, until ten million dollars, you’re small enough to keep your agile advantage over the BIG guys.

THE MYTHS ARE BUSTED

In conclusion, there are many myths and misconceptions about the stock market. Most people hold back learning to invest for fear of losing money, maybe low self-esteem (I can’t do this, I’m just a Chef) and sometimes, not fully understanding the massive growth potential to one wealth.

Lastly, stop listening to your uncle Jerry’s advises. If he isn’t wealthy is because he doesn’t know how to create wealth in the first place. By listening to his market stock myths, you’re missing an opportunity for early retirement. Don’t work till 60 like your uncle, there is a better way.

I hope, by busting the 3 biggest market stock myths, you will feel confident enough to start investing in the market stock so you can leverage your savings and reach financial freedom faster.

http://smartmoneytoday.com/money/grow-your-money/stock-market/3-myths-stock-market-investing/

Is there a way to simplify investing?

Is there a way to simplify investing?

Does investing seem overwhelming? Do you think it’s hard investing in market stock? Is there a way to simplify investing?

Don’t give up! Fortunately for you and me, investing is a lot easier than what we think. There are steps you can take to automate the process, as well as to find investments that will allow you to sleep soundly no matter what the market is doing.

Why investing seem so complicate then?

Because there is an entire industry out there profiting from the chaos. Banks, financial advisors and other people working in the financial industry want you to believe that investing is hard, only accessible to professional. And the reason is simple; PROFIT. They make a lot of money from uneducated investors.

Also, the media add to the din, with advice on building a sound long-term portfolio conflicting with articles on the 10 hot stocks to buy now. And again, it’s all about; PROFIT.

The result is that over time, investors find their portfolios become increasingly complicated and cluttered. Multiple accounts without reason, few investments here and there not fitting your investment plan or maybe even few financial advisors (more brains, better results, right?)

I get it.

I spent years feeling overwhelmed and frustrated with investing, it seems everyone else had all figured it out. I felt like running around with a black box over my head, without direction.

Whether you’re just getting started as an investor or being engaged in the markets for decades, I’m going to show you in simple steps how to make investing much easier while being more profitable.

Finally putting a stop to that voice in your head screaming; “How can I simplify investing?”

Step 1: Reorganize Your Accounts

If you’re like most people, you have got multiple brokerage accounts, a retirement plan, mutual funds, insurance and more.

A bundle of accounts is not only hard to monitor, but you don’t get a grasp of your financial affairs which jeopardize your decision process to achieve your goals.

I’m guilty of this for several years, till I asked myself: “How can I simplify this mess?”. It was much easier than what I thought.

Reorganizing my accounts is one of the most efficient and time-saving moves in my financial life. Not only I don’t have to deal anymore with multiple companies and multiple fees, but I could focus on my portfolio strategy gaining better returns.

Yes, my friend, you need to focus if you want GREAT investment results.

As you review your accounts to see what you can consolidate, try to view your investments as a single portfolio. Each account, whether it is a tax-deferred account or a taxable account, can have a very specific objective and type of investment. One account may be mostly fixed income and another might be more trading orientated, while yet another is just for global investing.

Step 2: Go On Autopilot

I believe in automation; it just makes life much easier.

When comes to investing, it also saves you from doing silly things with your investments. I’ll explain this in the next step.

Once you reorganized your accounts and developed an investment strategy, arrange automatic periodic transfers from your bank account to the investment account.

Investing periodically is the key to growing your wealth.

Step 3: Consider Indexing – ETFs

I love ETFs, they are simple, efficient and cost effective. If you’re new here, ETFs are vehicles mirroring an index providing diversification at low cost. If you aren’t a millionaire that can afford to buy shares of multiple companies to diversify their portfolio, ETFs are perfect for you.

For example, if you want to invest in gold, just buy a gold’s ETF which has diversify assets forward the yellow metal.  I recently wrote my recommendation for the best ETFs in 2017, it might help you to get started.

Investing can be complicated if you want to pursue it as a full-time Gig. You have to keep looking for bargains, analyzing hundreds of stocks every month and deciding which ones to buy and when to buy and, later, sell them.

A great way to avoid this process while still enjoying solid investing results is to be an index investor. According to John C. Bogle, with a simple indexing strategy, you can beat professional fund manager.

If you would like to learn more, read his best-selling book; Common Sense To Investing. One of the best book I ever read about personal finance.

As you can see above, by simply investing in the Vanguard S&P 500 Index Fund which mirrors the S&P 500 index, you can expect in average a 8% per year. Simple enough?

Step 4: Buy Undervalue Sectors

This is the pillar of my successful investing strategy which brings me double digits return every year. This is why I could retire at the age of 31 from the corporate world. Thanks, dear market 

I look for undervalue sectors. The markets are cyclical, meaning that at any point in time, a sector might be undervalued or overvalue.

The benefit in spotting undervalue sectors is that you can buy shares of the best companies within a bitten up sector for pennies on the dollar.

It’s like purchasing a house during a recession when foreclosure is at its highest. Everyone is selling, prices collapse and you get the deal. Sell the house a few years later for a good profit. Enjoy the ride.

For example, this year (2017), the Uranium sector is undervalued. In fact, I’m buying the best Uranium mining companies out there at a discount price. Sound risky? Much less than buying any company in the S&P 500 which is at its highest of all time.

Justin from Next Big Trade wrote an excellent article about this process to discover sectors which are undervalued and ready to take off. Justing knows what is talking about, and I have a great respect for his work.

Step 5: Don’t hire a financial advisor

Look, I don’t say that financial advisors are bad people, on the contrary, some are excellent. However, you have a small chance to find a killer of a financial advisor, but if you do, let me know.

In the meantime, it’s best you get educated about investing and how to live a rich life by following SmartMoneyToday.

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Let's keep in touch, we have a long journey ahead. Better together than alone. Right? 
If yes, write your first name and email address below. 

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Step 6: Rebalance Your Portfolio

Don’t chase investments, be discipline, patience and the market will do wonders for you.

Once you have established your desired asset allocation, it’s a relatively simple matter to rebalance between one and four times a year.

When an asset class has increased enough that it takes up too large a portion of your portfolio, you can sell high and buy more in another asset class where the prices are lower.

By doing so, you move assets from overvaluing to undervalue sectors. It’s a practical system that increases your margins of return.

RELATED: Expatriate Portfolio Part 2; Best Practice for Portfolio Rebalancing

Why Nobody’s Giving Those Tips?

Because nobody makes money off it.

Imagine your financial advisor teaching you these tips. What would happen? You would fire him and his expensive managed funds. Bloomberg would be a dead channel. And the financial newspaper and magazine couldn’t sell issues with headlines like 10 Hot Stocks to Buy Today!

But for me, I’m happy to share my knowledge and see you succeed in life.

So, the bottom line is simplified your portfolio with the above tips and you should see improved overall performances.

After all, with a simpler, less complicated portfolio, you will be able to focus your efforts on improving its performance, rather than trying to sort out how it works.

http://smartmoneytoday.com/money/grow-your-money/personal-development/how-simplify-investing/

Expat Finance; 8 Tips For Handling Your Money Abroad

Planning to move abroad and live the expat life?

So, you’re moving abroad… That’s great!

Being an expat for 15 years, I can tell you that it’s been a rewarding journey. New cultures, food, people and way of doing things – It’s a different world out there.

Like most of you, I had a hard time to get financially set up while working/living abroad. Back then, I couldn’t find any valuable resources how to move money around countries, pay little in exchange commission or how to send money from/to home. In a few words; It was frustrating!

However, a lot has changed in recent years, from internet banking that let you manage multiple currencies accounts to cheap money transfer companies. All in the name of avoiding fees and minimizing costs.

The truth is, what used to be so easy in your home country no longer proves to be quite as simple abroad. No matter where you go, things just won’t be the same as they are back home.

Today, I’m going to share with you the same valuable tips that I learned by managing my money as an expat so you can move abroad with confidence and enjoy your time without financial stress.

Ready? Let’s go!

1# ARRANGE AT HOME FIRST

Before leaving, put all the pieces in place with your home finances.

For example, some bank required token or other security future to make payments online. Do you get text messages with a code whenever using online banking?

Well, you’ll change your phone number abroad for a local, cheaper option, so you need to find an alternative way to use online banking in your home country.

Contact your bank explaining that you are moving abroad, and ask for alternative arrangments. Also, tell them to unblock your ATM and credit cards to be used aborad.

Whenever I use online banking in the UAE, I get an email with the token. Very convenient, indeed.

Also, plan how to pay your bills, taxes, mortgage and so on before moving abroad. You don’t want to fly back home to pay the bills, right?

The best way is to set up “automatic bill payment” to pay:

• credit card bills
• utility bills
• car payment
• house payment and more.

Transfers between your accounts can also be automated. Some banks will offer more automation features than others, so you should check directly at your bank’s website to see what can you automate.

And if I wasn’t clear till now, the best way to manage your bank account is to use “online banking”. Don’t have online banking? Change bank before departing.

2# THE WIRING NIGHTMARE

The biggest money-related challenge is to wire money across international borders. Most banks required your physical presence in the branch.

However, a good number of bank allow you to initiate the transfer by phone or internet banking, but there is a catch. Usually, they allow only a small amounts every day, like US$3,000 – US$5,000.

Not only you waste a considerable amount of time to initiate these transfers, but you get charged heavily for each transaction.

Imagine what it took to transfer US$30,000. Besides calling the bank every day for 2 weeks period, it cost me a whopping US$350 in fees.

That wasn’t fun 

Do yourself a favor, open a bank account that let you transfer a “considerable amount of money” without restriction and with a mouse click.

3# CASH IS KING

I noticed that people freaking out traveling with cash. That is a pity because carrying cash with you is the cheapest and best option to start settling your finances in a new country.

The common question I get asked is “Should I change money in my home country or at the destination?” If your currency is one of the following, change at destination:

• American dollar
• Australian dollar
• Pound sterling
• Euro
• Japanese Yen

Most countries in the world are craving for those major currencies. You’ll get a sweet deal on your exchange rate. I only carry American dollars because is the most accepted currency in the world. so the exchange fees are very low.

Regarding how much you can take with you, usually is $US 10,000 per person. Check with your home country and destination custom policies to find out how much you can bring.

So, don’t be afraid to carry money, no one is going to point a gun at you. Keep your money in different pockets of your trousers, jacket and shorts, so you don’t risk to lose the full amount.

4# OPEN A LOCAL BANK ACCOUNT

Now you’re settling in the new country but at one point, your cash will run out. You might be tempted to use your home ATM card to withdraw some cash. Don’t!

You get charged by your bank,  as well as the local bank. And one more thing, the secret that your bank doesn’t want you to know; the hidden conversion fee.

They will not mention “conversion fee”, instead is expressed as a higher-than-market rate (the bank pockets the difference). That isn’t smart. What is the smart way then?

Open a local bank account and transfer money directly there. It’s cheap and easy.

You pay the same fix charges for any amount, either you transfer US$100 or US$100,000, so it’s smart to transfer only one time the amount necessary for your living costs.

The second smart move is to open an account denominated in US dollar (for Americans) or Euro (for European). Doing so, you can hold money in your new account without risking to lose money if the local currency is WEAK. Also, converting money locally is cheaper than let the big banks convert for you during the International transfer.

If you’re a US citizen, check out Jeremy’ s tips about opening an account with Charles Schwab to avoid ATM fees.

5# APPLY FOR ONLINE BANKING

Just as you would back home (I hope), sign up for online banking, especially if you’re in a country where you don’t speak the native language. The teller, not always speaks English and that can be frustrating.

In Asia, online banking work very well. In fact, the last time I visited my bank was one year ago. Hey, online banking is really convenient, sometimes too convenient.

6# OPEN AN ACCOUNT WITH AN INTERNATIONAL BANK

If you consider being a permanent expat, open an account with an International bank with a strong presence around the globe. The most widespread retailer bank is definitely HSBC with 7,500 offices in over 80 countries, but there are other options.

7# HAVE AN OVERVIEW OF YOUR ENTIRE FINANCIAL PICTURE

Knowing where your money are not only it’s important but crucial. In the past, I had a hard time to move money quickly when needed. By keeping a simple spreadsheet in Excel updated every month, you’ll have a better understanding of your financial picture, so you can plan accordingly.

After 15 years of expat life, having worked in 4 countries and collected 5 bank accounts, 2 brokerage accounts, and a physical gold deposit, things can get messy fast.

I have a gift for you. You can download a sample of my spreadsheet below to keep in check your net worth:

Click here to download the NEW Net Worth Calculator + Gold Standard conversion!

8# CONSIDER HEALTHCARE

This is a tough one. In foreign countries, you need a private healthcare insurance if you want access to quality health care.

As you might know, private hospitals are expensive and accept you only if you have an insurance or a credit card as collateral.

Last year, I gave a lot of thoughts about renewing my medical health insurance. I can’t decide for you as your needs and situation are totally different than mine, but I hope my thinking process is helpful to assist you in making the SMART move.

Alright, my friend, time to pack your luggage and be confident to start your new life abroad (I know you can!).

http://smartmoneytoday.com/money/grow-your-money/expat-investing/expat-finance-tips-handling-money-abroad/