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“Statistically, the more people are involved in their own investments decisions – as opposed to solely relying on an advisor’s advice – the better they do. The only way to do this is to get educated any way you can. “
Some people tend to forget that individuals with considerable sums tied up in investments will typically be getting far more than a 2-3% return if they had some semblance of common sense. You’d likely be hard-pressed to know ONE person with who has more than $500,000 socked away in various investment vehicles that doesn’t get a much better return on a BAD day.
Financial institutions give higher interest rates, better returns and easier access to top shelf, high-quality investments to those with 6-figure bank accounts or huge investment portfolios. They also tend to charge lower fees on those with at least 4 figure bank accounts. Special incentives and “black” credit cards with lower interest and all sorts of other advantages are provided to people with a high net worth.
Statistically, the more people are involved in their own investments decisions – as opposed to solely relying on an advisor’s advice – the better they do. The only way to do this is to get educated any way you can. Get a good accountant and a good lawyer (someone you trust or know personally and comes recommended by wealthy people you know). Take a few rudimentary financial courses and educate yourself. Or read a few books if you can’t afford the classes. It’s easy to point a finger at your advisor if your investments tank, which is why it’s important to take responsibility and GET INVOLVED in the process. TAKE OWNERSHIP – it is your money after all.
In addition, business owners have the benefit of a tax structure PURPOSELY set up to GIVE them significant breaks. Use the system to your advantage if you want any hope of a comfortable retirement.
As many wise people have said, if you don’t know what to do to – ask someone you TRUST. If you want financial freedom in your retirement, invest in YOURSELF.
New Report: It’s Dangerous to Diversify — Find Out Why
Despite near-unanimous endorsement among mainstream advisors, the strategy of portfolio diversification has a huge, glaring flaw: Namely, when large sums of liquidity begin to flow into global investment markets, formerly disparate trends become strongly correlated. And markets that go up together ultimately go down together; in turn, the value of diversified portfolios goes down with them.
For years now, Wall Street has tap-danced around the liquidity risk. Here’s how former Citigroup CEO Charles Prince described it in July 2007:
“When the music stops, in terms of liquidity, things will be complicated. But as long as the music is playing, you’ve got to get up and dance.”
Three months later, Prince announced that Citigroup’s quarterly earnings would be down 60%. Within the year, Prince had danced himself out of a job. Diversified investors around the world were feeling the liquidity crunch.
But after many miserable months for stock and commodity investors, the markets rebounded together — almost in lock-step. Commodities lifted off in late 2008, and stocks followed in March 2009. Everything that declined together was going up together, and market watchers began to take notice.
“Liquidity with respect to stocks has become indiscriminate,” reported a widely respected market technician. “When money’s flowing in, they all go up. When money’s flowing out, they all go down.”
Mainstream investors finally began to recognize the phenomenon Elliott Wave International’s Robert Prechter warned about in his 2002 best-seller, Conquer the Crash.
Turns out, now almost 10 years after Prechter coined the phenomenon “All The Same Markets,” the correlation is still positive. Unfortunately for millions of diversified investors, the outlook is not.
According to a new report authored by Prechter and his EWI colleagues, the second round of liquidity crisis is fast approaching and perhaps has already begun. If you invest your money in a diversified portfolio, it’s time you read this incredible free new report now.
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