_[classroom] Folks. I have prepared remarks (long), then we will do Q and A.
Jonny asked me to do this class again for folks who missed it. The info will
be the same mostly…a few upgrades…I would suggest you later find it in the
forum and print it out so you can work with the info. Or if you haven’t signed
up for dinar recaps emails, please do so, so you can print out all their
excellent posts. The questions will likely be different.
[classroom] Also I have a new intro.
[classroom] Since our last class I want to let you know I goofed on the
conversation about (General Motors) bonds. I am not the best typist.
Also I have learned that Goldman Sachs requires a minimum of 10 million
dollars to be one of their clients so many of you will be able to consider them.
[classroom] I am very new to chat, but in it and reading other posts I have
discovered some attitudes that concern me. There have been some excellent posts
just today about being mentally prepared to handle this money. One by Freeway
Bill and another by MP Dunleavey. Please read these.
Read More Link on Right
_ [classroom] If you are excited and giddy, you are not ready. If you are thinking
spend, spend, spend, live the rich and famous lifestyle…then you are not ready.
Many others on various conference calls and posts over the past few months
have warned of sudden wealth syndrome. Please take these warnings to heart
and mind. And please look deeply inside yourself….if you have any unresolved
issues of worth and deserving of “financial success” or if you still use
phrases like “filthy rich”, or “spiritual people are poor”…these issues will
rear their nasty unconscious heads and take your money from you so you can stay
in your comfort zone….lack. Expand yourself permanently into abundance.
(Abundance is more than money.)
[classroom] Of course we will all be excited when the great news finally comes.
I for one, will jump up and down for sure! But making decisions about money requires
mental and emotional clarity. I think so many people are overfocused on when will
it happen and what is the rate that they have given very little thought to what to
do next. What will your life be like after the rv besides going to the bank. If you
have been getting mentally and physically prepared, i.e. extensive security concerns
taken care of, already know what you want to invest in or at least started researching,
GOOD!!! If not, then taking a cooling off period before investing is a very good idea.
[classroom] I have been an options/ stock trader for over 8 years on my own. I took
many years of training from a local billionaire who made all of his money in the
stock market. He used to be a blue collar worker. I AM NOT LICENSED TO GIVE FINANCIAL
ADVICE. HOWEVER, I HAVE LEARNED ALOT. AND HAVE SOME GOOD INFO FOR YOU. THE FOLLOWING WILL BE MY OPINIONS BASED ON MY TRAINING AND EXPERIENCE AND MY PERSONAL PLAN POST RV.
[classroom] I have traded the wildest momentum stocks, but now am looking forward to
boring dividend yields and INCOME FOR LIFE so I can ride off into the sunset with my
love. (aka retire and not look at a computer all day) The following info will be
around creating a portfolio of SAFETY that produces income for you to live from.
People who did the following MADE MONEY over the last ten years and DID NOT LOSE
MONEY during the U.S. housing bubble pop/financial crisis/stock market crash 2007-
march 9th 2009.
[classroom] FIRST DECIDE HOW INVOLVED YOU WANT TO BE WITH YOUR INVESTMENTS.
ALLOWING SOMEONE TO MANAGE YOUR MONEY DOES NOT MEAN IT’S NO LONGER YOUR MONEY. You will always be the boss; he/she works for you! You have the right to tell
your money manager what you want. Just be sure you know!!!!
[classroom] BARELY INVOLVED: This would be for someone with minimal knowledge of
investing, or for someone who does not want to get caught up in the drama of the
stock market. Let a financial planner, brokerage house advise you. You tell them your
level of risk, and they set you up. YOU WILL HOWEVER NEED TO BE AWARE OF ECONOMIC CYCLES.
[classroom] MODERATELY INVOLVED: Your brokerage house/financial planner has set you
up with his/her ideas and some of your ideas, and you are prepared to "buy insurance"
(put options) when there is a major market downturn. You are also aware of economic
cycles and stock market cycles and when to swap out of certain securities and into others.
[classroom] ACTIVELY INVOLVED: You know which securities (stocks, bonds, etf's
exchange traded funds) you want to own and are trained to spot market downturns
and insure your portfolio, or at least tell your PM (portfolio manager) to buy
the puts for you. A brokerage house that deals with high net individuals will
have this level of active involvement available. You know when to re-allocate
your assets (adjust your stuff).
[classroom] You might even follow your stocks, etfs and ride their ups and downs
with options, making more money as they go up AND DOWN. There are many ways to
learn this. But it can be stressful. This would entail serious commitment and
training from local or national teachers, (some online brokers have excellent
educational programs for free others have paid training/coaching programs like
options Xpress which is now owned by Charles Schwab.) If people are interested
in my teacher, I could ask him if he would like referrals. But THIS IS NOT FOR
EVERYONE AND TAKES TIME AND DISCIPLINE TO LEARN HOW TO TRADE/INVEST WITHOUT EMOTION. IT ALSO IS A NEARLY FULLTIME JOB. If it were easy, everyone would do it, right?
[classroom] KNOW THIS the stock market has predictable cycles of up and down.
The stock market is based on FEAR AND GREED and memory. There is usually a bank/
crisis of some kind every ten-ish years. There is usually a crash or major
correction (downturn) every ten-ish years.
[classroom] DIVERSIFY WITH DIVIDEND PAYING STOCKS and CORPORATE BONDS IN DIFFERENT SECTORS. Sector means area of business, like healthcare is a sector. Beware,
this world is full of jargon! For Corporate bonds (debt): Go to yahoo finance
and search the top 10 holdings of the LQD this is an etf of corporate bonds.
I plan to own the debt of financials and a few other goodies in there. You
will be surprised at the coupon (like a dividend) yields!!!!! Some are as high as
8%. Think is this company (like McDonald’s or Verizon) going to go out of business?
Most likely no, and the banks have already been bailed out.
[classroom] Stable high dividend yielding stocks: REMEMBER THIS IS THE SAFETY
PORTFOLIO. Think utilities, consumer staples (stuff you eat, have in your
laundry and bathroom, medicine cabinet and tobacco yeah yeah I know...)
preferably companies that have good business in China and India . Same with
conglomerates. (GE and Honeywell are conglomerates, companies that have alot
of businesses) healthcare, master limited partnerships (oil/gas pipelines
and strage) And maybe a tech stock. Most tech stocks don't pay dividends.
However there are a few that do and don't move much. (Less movement—volatility
—means more safe) The danger there is new technology trends may pass them by.
For all dividend stocks, you will want to choose companies that are in good
shape with the potential to increase their dividend over time.
[classroom] Another good diversification is retirement income producing
funds like from vanguard or fidelity. They will have names like lifetime
strategy fund, etc. Some brokerage firms like Schwab will let you buy anyone's
products. Very low risk with 3% yield. Mostly bonds. Many brokerage websites
let you enter your risk tolerance and they will generate suggestions for you.
But always talk to a human when making the final decision. Depending on what
you invest in, you will get income monthly or quarterly which if not in an IRA
is taxable income. Please Don’t ask me tax questions, I am not a tax pro….I also
know virtually nothing about trusts. That will change soon, and I am just
learning about munies (municipal bonds).
[classroom] REINVEST YOUR DIVIDENDS. Live off the interest, and live within
your means. LEARN ABOUT MUNICIPAL BONDS, TIPS (treasury inflation protected
securities) PHYSICAL GOLD SILVER, ANNUTIES, LAND AND REAL ESTATE AND HOW TO
INVEST IN OTHER STRONG CURRENCIES: CANADIAN AND AUSTRALIAN DOLLAR, CHINESE YUAN, SWISS FRANC, SINGAPORE AND DUBAI. ALL STRONG ECONOMIES. Decide what works for you. For example, someone who has held rental properties for years may be excited to to create income.
[classroom] RESOURCES FOR LEARNING: It is important to know about the companies you invest in. You can follow them on yahoo finance, but if you’re really serious you’ll want a pay site
called briefing.com. That’s what the pros use. Has a wealth of different kinds of info from
recaps of the market, technicals and fundamentals and earnings calendars, analysts ratings,
commentary…sector and entire market outlooks. Cnbc.com is a good resource plus you can watch
some of their educational shows online like Fast Money and Mad Money (Jim Cramer’s very popular show) Options Action and Money In Motion (an excellent show on currencies). Jim Cramer has good books, too. Thank you. And prosperous peace out to all. I’m ready for Q and A.
[Shanie] In your opinion what is the safest investment to have in your portfolio
no matter which way the economy turns?
[classroom] see above a combination of dividend yielding diversified sectors
"safety stocks" however, there is this thing called sector rotation, and they will
go down when riskier assets are in favor. For retirement "safety" look into the
reirement oriented funds i mentioned above.
[Bud64] Can you give a guide as to what percentage to deversify your investment...ie stock, CDs, etc.?
[classroom] THAT IS MORE THE REALM OF A FINANCIAL PLANNER WHICH I AM NOT...
BUT I WOULD LOOK AT YOUR RISK TOLERANCE, YOUR GOALS FOR YOUR MONEY, YOUR BUDGET INCLUDING DONATIONS TO CHARITY AND SPREAD IT AROUND PRETTY EVENLY. IF YOU ARE REALLY SCARED OF THE MARKET THERE IS NOTHING WRONG WITH GETTING LOWER YIELD THAT IS LOW RISK. IT'S BETTER THAN A CD AT A BANK THESE DAYS
[mowgli] I am very serious about learning how to create more wealth. I am
a workaholic so I would love to be trained by you or your mentor. After it
rv's how can we get to gether?
[classroom] IF IT'S OK WITH JONNY AND THE MODS YOU CAN PM ME AFTER CLASS,
AND WE CAN TALK FURTHER ABOUT THAT.
[classroom] BUT THERE IS ALOT TO LEARN
[classroom] IT TAKES YEARS
[classroom] AND AS I SAID BEFORE LEARNING TO MANAGE YOUR MONEY IS NOT EASY
[classroom] I AM A RECOVERING WORKAHOLIC AND LOOKING FORWARD TO A MUCH MORE RELAXING LIFE
[MRP] What mistake did you make that taught you the most? What did you learn from that?
[classroom] MARRYING MY EXHUSBAND
[classroom] NO SERIOUSLY....
[classroom] I HAVE MADE ALOT OF MONEY AND I HAVE LOST ALOT OF MONEY. THE
BIGGEST MISTAKE I HAVE MADE WAS GETTING SUCKED IN BY EMOTION AND GREED.
[classroom] IT TAUGHT ME THAT DISCIPLINE IS THE MOST IMPORTANT THING WHEN
[classroom] AND CONSISTENCY
[classroom] THAT IS WHY I DISCUSSED THE EMOTIONAL HIGHS SOME PEOPLE ARE
TALKING ABOUT REGARDING THEIR MONEY TO COME
[PatiencenFortitude] For someone who doesn't want to be very involved
and wants to stay with strictly safe investments, what would be the average
return (percentage) one could expect?
[classroom] IT DEPENDS ON WHAT YOU PICK. SUPER SAFE AND 3-8% CAN HAPPEN
[Skyman] Depending on your comfort level, how much involvement do you think
would be required on a daily basis?
[classroom] YOUR INVOLVEMENT IS UP TO YOU
[classroom] YOU COULD STRESS YOURSELF OUT BY BEING A DAY TRADER IN AN
ENVIRONMENT WHERE APPLE GOES DOWN 35 DOLLARS IN ONE SECOND, OR YOU CAN SIP YOUR FAVORITE BEVERAGE AT THE BEACH SOMEWHERE....WHICH WOULD YOU CHOOSE?
californiaguy] How much precious metals should one have in their asset-class
mix. And which metal is best?
[classroom] THERE ARE MANY OPINIONS ON METALS AND MANY PEOPLE WHO KNOW MUCH MORE THAN ME...MORE COMING
[classroom] SOME PEOPLE SEE GOLD AS A CURRENCY
[classroom] SOME PEOPLE SEE GOLD AS AN INFLATION HEDGE (PROTECTION)
BUT WE DON'T HAVE INFLATION YET.
[classroom] SOME PEOPLE THINK METALS ARE TOO CRAZY VOLATILE...
[classroom] I WILL OWN A BALANCED AMOUNT OF PHYSICAL GOLD AND SILVER
JUST IN CASE THINGS GET UGLY
[classroom] DON'T OVER DO IT...KEEP IT BALANCED
[Skyman] what about gem stones, Diamonds and such, instead of metals?
[classroom] GEM STONES
[classroom] MANY PEOPLE THINK DIAMONDS ARE AN EXCELLENT INVESTMENT I DO NOT KNOW ANYTHING ABOUT THAT SORRY
[classroom] OH WAIT
[classroom] I WOULD NOT DO DIAMONDS INSTEAD OF METALS
[dinarchaser] Can you comment on what entities you might consider placing assets
for personal protectoin, ie. LLCs, trusts, S Corps, C Corps, etc.
[classroom] I AM NOT SURE ABOUT ASSET PROTECTION YET, ONE OF MY ADVISORS SAYS
I DON'T NEED IT YET MANY OTHERS SAY I DO....I WILL LEARN MORE ABOUT THAT SOON
[dinarup] What is your opinion on where the USD is heading and the timing of
this event. How will a devaluation in the dollar affect our portfolio?
[classroom] OH MAN I KNEW SOMEONE WAS GONNA ASK THAT....HOLD ON HERE WE GO
[classroom] I KNOW SOME SO CALLED CONSPIRACY THEORISTS WHO SAY SOMOE PRETTY SCARY THINGS AND I KNOW YOU'VE HEARD IT....
[classroom] IT RUINS A PERFECTLY SUNNY DAY BUT WHAT IF THEY ARE RIGHT?
[classroom] WOULDN'T IT BE BETTER TO BE PREPARED?
[classroom] SO AS OTHERS HAVE SAID IN POSTS AND THE CURRENCY CLASS LOOK INTO
BUYING THE CURRENCIES OF STRONG ECONOMIES...LIKE
[classroom] CANADIAN DOLLAR AUSTRALIAN DOLLAR SWISS FRANC ALTHOUGH
THEY MADE SOME CHANGES LAST SUMMER...MORE
[classroom] CHECK OUT CHINESE YUAN AND SINGAPORE DOLLAR AND DUBAI
[classroom] BUT LET'S HOPE THE WORLD DOESN'T GO TO HECK IN A HANDBASKET
[classroom] UNLESS I DIDN'T ANSWER THE WHOLE QUESTION...
[peter1] as australian banks are paying around 6% interest and are in the safest
around the world, I plan to place my money between the 4 majors
[classroom] SOUNDS GREAT EXCEPT THERE IS ALOT OF NEGATIVITY TOWARD B OF A ON WALL STREET....
[classroom] RUMOURS THAT THEY MAY NOT MAKE IT
[classroom] AND WE ALL KNOW WHEN RUMOURS LIKE THIS ABOUND ON WALL ST
THEY MAY BECOME TRADER FULFILLED PROPHECIES
[Tolen] You mentioned physical gold and silver... some think it will fall
for a time after the RV. If you were me, would you hold off buying gold
or silver for some time after the RV?
[classroom] GOLD CAN HAVE A SEASONALITY TO IT, MEANING TIMES OF THE YEAR
WHEN IT TENDS TO GO UP... SO LEARN TO READ CHARTS....I AM A BIT SQUEAMISH
TO TRADE GOLD BUT DENNIS GARTMAN IS THE MAN IN THAT DEPARTMENT THE GARTMAN LETTER IS HIS NEWSLETTER
[classroom] FOLLOW HIM
[jacc] what about a person who is over whelmed by all this inforation an need
someone to hold their hand and walk them thre this until they can learn what
do you recomend. ty
[classroom] I WAS OVERWHELMED FOR TWO YEARS WHEN I STARTED...
[classroom] READ MY SUGGESTIONS, GET OTHER PEOPLE'S TAKE THEM TO A GOOD BROKERAGE
HOUSE AND SEE WHAT THEY SAY. IF YOU ARE OVERWHELMED YOU WILL WANT SOMEONE TO GUIDE YOU ....
[classroom] SO YOU CAN RELAX AND ENJOY YOUR LIFE.
[californiaguy] Are ETF's a better hedge against wild stock or sector swings?
[classroom] AN ETF (EXCHANGE TRADED FUND) MOVES JUST LIKE A STOCK, SO IN THE CASE OF THE SILVER ETF AFTER IT HAD IT'S HUGE MOVE A WHILE BACK IT TANKED TANKED TANKED!!!!!
[classroom] SOME ETF'S ARE JUST NEWER PRODUCTS THAT SMOOTH OUT THE INDIVIDUAL NEW RISK OF COMPANIES
[classroom] FOR EXAMPLE IF YOU OWN A HEALTHCARE ETF IT WOULD BE A BUNCH OF
HEALTHCARE RELATED COOMPANIES WHICH WOULD SHIELD YOU FROM A DISATROUS STUDY RESULT OF A DRUG ...MAKE SENSE?
[classroom] YOU CAN READ ABOUT SECTOR SWINGS IN JIM CRAMER'S BOOKS
ESPECIALLY GETTING BACK TO EVEN
[holistichealth] ? what brokerage firm would you recommend dealing with?
how many banks would u recommend putting your money into and if one of
the banks that you are depositing w/ has an investment team, do u recommend
this or a separate firm? tyvm
[classroom] I AM NOT GOING TO KEEP MUCH OF MY MONEY IN A BANK CUZ THE RETURN
IS CRUMMY. BUT A BANK THAT HAS A BROKERAGE ARM IS EXCELLENT...
[classroom] THAT WOULD BE GOLDMAN SACHS, JP MORGAN CHASE, WELLS FARGO,
AND WELL KNOWN BROKERAGES LIKE SCHWAB, FIDELITY, VANGUARD, EDWARD JONES,
ETC I LIKE GOLDMAN SACHS AND ESPECIALLY SCHWAB BECASUE AT THE LEVEL MOST
OF US WILL BE AT YOU CAN BE ACTIVELY INVOLVED IF YOU CHOOSE AND BUY "INSURANCE" PUTS WHEN THERE IS A CORRECTION....MAJOR DOWNTURN
[classroom] TO PROTECT YOUR PORTFOLIO (STUFF) FROM LOSS....BUT YOU
HAVE TO KNOW WHAT YOUR ARE DOING
[..tigger1] Would our Private banker have this information that you are
saying in this class and is that where we would want to start at first?
[classroom] YES INDEED.
[classroom] THEY SHOULD GIVE YOU AT LEAST AN HOUR OF THEIR TIME TO DISCUSS YOUR NEEDS.
[classroom] THEY ARE TRAINED TO DEAL WITH HIGH NET PEOPLE WHO ARE RETIRED
[tc0043] Being licensed in financial services, I am planning on investing in a
variable annuity and tax free municipal bond mutual funds to generate a monthly
tax free income.can you suggest any other investment vehicles that would be as safe?
[classroom] I KNOW SOME PEOPLE WHO LIKE MUNI ETF'S AND OTHERS LIKE TO HAND PICK THEIR MUNIES....I AM JUST LEARNING ABOUT MUNIES AND I HOPE WE CAN FIND SOMEONE TO DO A CLASS ON THEM, FOR THOSE OF YOU WHO DON'T KNOW THEY OFFER SERIOUS TAX ADVANTAGES....
[classroom] I DO NOT KNOW MUCH ABOUT ANNUITIES....
[classroom] MAYBE YOU ARE OUR NEXT TEACHER!
[classroom] I WOULD SUGGEST LOOKING AT WHAT I'VE SAID ABOVE AND SEEING IF YOU
LIKE IT....ESPECIALLY THE HIGH YIELD CORPORATE BONDS
[TrishD] Do you know much about getting into Pre IPO offerings
[classroom] NO BUT IF YOU INVEST WITH GOLDMAN SACH OR JP MORGAN THEY DO ALOT
OF IPOS AND IF YOU HAVE THE NET WORTH, THEY WILL APPROACH YOU IF YOU TELL
THEM YOU ARE INTERESTED...
[classroom] MOST IPO'S UNLESS THEY ARE HOT HOT HOT DROP BACK TO THEIR INITIAL
PRICE NOT LONG AFTER THEY GO PUBLIC, SO YOU CAN BUY THEM THEN....
[classroom] FACEBOOK FOR EXAMPLE WILL BE A TRADER'S DREAM COME TRUE....
[classroom] WHICH MEANS IT WILL MOVE LIKE CRAZY...BE VOLATILE....I DOUBT IT
WILL DROP AFTER IT GOES PUBLIC
[dinarchaser] Can you discuss LLCs, LLCs w/ S Corp election, S Corps & C Corps
and why one would want to choose one over the other.
[classroom] AS STATED BEFORE, I AM SORRY THAT'S NOT MY AREA. GUESS THAT'S
ANOTHER CLASS TO HAVE, EH?
[MountainDoo] What type of trust did OJSimpson put all his assets into just a
few weeks before the Brown family filed a civil suit against OJ ?
[classroom] WOW! I DO NOT KNOW
[.Katt] .. I thought that was an interesting question too. Google may help with that.
[classroom] OH WAIT IT'S MOUNTAIN DOO THAT MEANS A JOKE IS COMING!!!!
[shalala] classroom Can you recommend a financial institution that
you use to hold various foreign currency denominated accounts in the US?
And how would you recommend diversifying within various currency
accounts, i.e., what % in US, Franc, Aussie, etc.?
[classroom] AS FAR AS PERCENTAGES GO, I AM NOT THE EXPERT THERE....I DO
KNOW THAT THE PEOPLE I HAVE TALKED TO SO FAR CAN DO THAT AND THAT WOULD
BE WELLS FARGO AND SCHWAB...I AM GUESSING MOST HIGH NET BROKERAGES COULD
HELP YOU DIVERSIFY INTO OTHER CURRENCIES...LOOK IN THE FORUM UNDER LAST
WEEK'S CURRENCY CLASS...THERE WERE A FEW SUGGESTIONS THERE.
[msjeta1] we have our Financial Advisor already set up through WF our investments
currently are low to medium risk but we are retired and want to be able to have
income to live what would you suggest we look at investment wise?
[classroom] SEE ABOVE
[RealDeal] What do you think about the stock AGNC pays 20 percent
[classroom] I AM SORRY I AM NOT FAMILIAR ENOUGH AND I DON'T THINK
I SHOULD GIVE SUPER SPECIFIC RECOMMENDATIONS
[jtwest] what about futures market ?? is it safe ???
[classroom] HA HA HA HA HA! SAFE....
[classroom] ONE THING I WILL BE LEARNING ABOUT IS MANAGED FUTURES. IN AN
ENVIRONMENT WHERE THE FUTURES ARE UP 200 ONE MORNING DOWN 300 THE NEXT....
UGGH. I HOPE THOSE DAYS ARE GONE.
[1speck] If BOA goes out what will happen to Merril Lynch?
[classroom] THEY ARE A MERGED COMPANY
[classroom] AFFECTIONATELY KNOWN AS BAML.
[classroom] B OF A MAY HAVE A TOUGH TIME....AND I FOGOT MY CRYSTAL BALL....
BUT THE BANKS GOT BAILED OUT, SO IF ANY SYSTEMIC US BANK WAS GOING TO
FAIL THEY WOULD HAVE FAILED ALONG WITH BEAR AND LEHMAN JUST MY OPINION
[classroom] DON'T BE AFRAID OF THE MARKET. BE REALISTIC. IT GOES UP
AND DOWN, AND THAT IS NORMAL. I THINK THINGS WILL BE GETTING BETTER....
[classroom] IF YOU ARE AFRAID OF THE MARKET....DO YOUR BEST TO RELAX
[classroom] AND RESEARCH SOMEONE OR SOME FIRM WHO CAN PUT YOU AT EASE.
[classroom] TAKE YOUR TIME AND LEARN.