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Comments Off on How To Pick Winning Stock Every Time – The Skeptics’ Way

NOTE:  This post is part of an ongoing education series.  This information is for educational purposes only.  This information does not constitute investment advice.  No rational person would make investment decisions based on a blog post.  Please consult with your financial advisor before taking any action. 

Today I will show you how great stock pickers are able to find the winners – every time.  Now when you get a tip via a call or an e-mail from a broker you will know how they do it.  Now you can do it too.  If you use this same method you can guarantee a correct prediction on a stock.  With this system you can win every time.

I found this video from Darren Brown.  He calls it the system and I will stick with that name.  He uses it on horses but, I will tell you how to do it with stocks.  It is even better with stock because they can only go up or down.  It is so easy – it will blow your mind.  The same secrets apply to stocks as it does for horses.  Watch this video to see how it works.  Don’t skip ahead… YOU NEED to see how well this works.

 

In part 2 you see how it works with a coin toss.  A coin has only heads or tails and a stock only has up and down.  Watch and learn.  When we are done you will be able to pick 10 winners in a row.  This system is guaranteed.  You will be able to win over and over again.

Here is part 2.

 

Part 3 gives another demonstration of the power of the system.  The system uses the power of statistics and probability to make amazing predictions.

 

By the end of part 3, our gambler has won 4 times in a row.  Proof that the system works.

This is the same thing that happens with the best stock pickers.  They give you a tip and you put a little money down and your stock goes up.  Next time you buy more and make more.  As you gain more confidence in your stock picker – you can invest (bet) more money.  Now you will see that you can do it all on your own.  Here is part 4.

Now you are starting to see how it works.  It is the same way with stocks.

Here is the part 5!

Someone had to win with each bet.  A stock picker can do the same thing.  They will call dozens, hundreds or even thousands of people.  They will tell half of the people that a given stock will go up and the other half will be told that the same stock will go down.  Those that lose never get called again.  The winners are called again and get a new stock tip.  So with just 16 people to start with a stock picker can get 4 in a row for one lucky person.  Now that person will do just about anything.  Even borrow money from friends.  They may or may not make money.  It does not matter to the broker.  Each time you buy or sell a stock, you make will make the broker money.

Now, when someone calls you with a hot stock tip, you will know what to do – RUN!

NOTE:  This post is part of an ongoing education series.  This information is for educational purposes only.  This information does not constitute investment advice.  No rational person would make investment decisions based on a blog post.  Please consult with your financial advisor before taking any action. 

A fabulous visual representation of wealth and life expectancy for 200 countries of the world set in motion for 200 years.  If only you could know which countries would do well in advance. 

Below is a pie chart of global wealth from Wikipedia.  You can see that the US is over 25% of the total and the top 5 countries account for more than 50%.  The big question is how will this change in the next 5, 10, 20 years!

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In: Investing

Comments Off on Term Vs. Whole Life Insurance – Which Should I Buy?

NOTE:  This post is part of an ongoing education series.  This information is for educational purposes only.  This information does not constitute investment advice.  No rational person would make investment decisions based on a blog post.  Please consult with your financial advisor before taking any action. 

Today we are going to talk about life insurance.  There are many different types and it can get very confusing.  One of my basic investing philosophies is KISS (Keep It Simple Silly).  If you don’t understand what you are buying – YOU SHOULD NOT BUY IT!

Today I will talk about the difference between Whole and Term life insurance.  Term insurance lasts as long as you pay for it.  It is like car insurance, if you stop paying the bill, the insurance stops!  Term insurance is VERY cheap because your odds of dying are very small, at least while you are young and in good health.  However, Term insurance will adjust (and go up) each and every year.  When you get over 50-60 it gets quite expensive.  You can also get term that keeps the rate same for 10, 20 or even 30 years.  You start by paying more – but the payment will stay level. 

Whole insurance is a type of permanent insurance.  It will last until you die, if you pay the bill!  It starts at a much higher rate but, never goes up.  Generally, these policies will have an age at which they end, often 100.  It is very hard to buy straight whole life.  Usually, it is sold as insurance and investment combined.  They will give you projected returns which almost never come true.  This type of policy also costs much much more per year.

There are many other types of life insurance.  I will cover some of them in later posts.  With some rare exceptions, I generally think the more complicated an insurance policy it – the worse it is for you.  Remember KISS!  I also think that insurance is a poor investment.  I am a strong proponent of, “buy term and invest the rest.”

I will now go over a specific example of Term vs. Whole life.

Our sample person is a 30 year old male and has his first kid on the way.  He is in good health and does not smoke or engage in risky activity.  He wants to have life insurance long enough for this child and any others that may show up to make it thru college.  He thinks that $1,000,000 should do the trick so he starts to compare the two choices. 

The 30 year level pay term insurance will cost as little as $700 per year or less than $60 per month. He will have $1,000,000 of insurance from the age of 30 to 60.  After that time more insurance will be quite expensive.  The same coverage could be about $5,000 – $6,000 per year. 

Whole life will cost this same person about $9,600 per year.  You not only have the insurance but you can build cash value.  If needed, you can loan yourself money.  However, it often takes several years for the cash value to start to build and the extra funds from the first few years pay all of the expenses and you may have a cash value of $0 for several years.  After that the money may grow at 2-4% per year.  A sales person may show you a projection with 6 or 7% return as an estimate.  Your return is determined by the insurance company.

Now some fancy math…. 

If you buy the Whole life you will have $1,000,000 in life insurance for the rest of your life.  If you make it to 100 years old – They give you the $1,000,000.  If you want any money out your insurance before then you have to take a loan against your insurance and those you care about may get less than you expected.

If you buy 30 year level pay term and invest the extra $8,900 in the stock market and make an annual return of 10% per year your investment will have a value over $1,000,000 in just 26 years.  You won’t need to borrow money – you have money.  After 30 years you let the term policy expire.  The kids are grown, out of college and you now have $1,600,000 – who needs insurance?

After the 30 years are over you can retire and spend your money or if you don’t need it, let it keep growing.  Let’s say you die at the age of 80.  What would you prefer to leave to your wife and kids….$1,000,000 or around $10,000,000?