Tag Archive | "pensions"

Multi Currency Investment Risk Balance Thoughts


What can we do to balance risk in our multi currency investing portfolios.

We need to be masters of our own finances and the best way to do this is by continually looking for value.

This will often make you seem like a contrarian because the herd mentality creates and/or destroys value.  You may seem to be acting just the opposite of everyone else, but we are not.  Instead of following the money we are simply following the value.

For example we recently reported that gold has triggered a Re-Entry Rule at Trade Stops.com, one of the advisors we track.

share chart

Gold chart from www.finance.yahoo.com (2)

Gold and silver almost always have a small place in our portfolio as insurance, but how much of our money should we allocate to gold and silver as speculations?

Our friend Richard Smith, a PhD in mathematics, is the founder of Tradestops.com and he created a program to help us match our risk tolerance with our investment risk profile.

When our risk tolerance is out of line with the risk profile of our investments, we are more likely to make poor emotional rather than wise investmen decisions.

Richard sent me this note:

Today, what I’d like to bring to your attention, is how you can use the tools available in TradeStops to make some high level decisions about how to structure your own portfolio.

One nice benefit that we enjoy as investors today is the rich universe of ETFs that we have access to. We can use these ETFs to help us make some decisions around our personal asset allocation. GLD, for example, is the ETF that tracks the cash price of gold bullion.

There are lots of websites out there that offer tools to help you easily find ETFs of interest. One that I use regularly is ETF Replay. The Summary section of ETF Replay is a great place to browse around and find ETFs that represent asset classes that you might be interested in.

Browsing through the Summary pages of ETF Replay, I found the following ETFs of interest to me (note that when deciding between similar ETFs I tend to favor those with the highest Net Assets):

VTI: Vanguard Total U.S. Stock Market – (I opted for an ETF to capture the whole US stock market.)
IEF: iShares Barclays 7-10 Yr Treasury (7-8yr)
VEU: Vanguard FTSE All-World ex-US
VWO: Vanguard FTSE Emerging Markets
GLD: SPDR Gold Shares
USO: United States Oil Fund
LQD: iShares iBoxx Invest Grade Bond (7-8yr)
SHM: SPDR Short-Term Municipal Bond (2-3yr)
IYR: iShares Dow Jones Real Estate REIT
GDX: Market Vectors Gold Miners Equity Index

The above list is by no means exhaustive. It’s just a list of possible investment categories that captured my interest (and that had sizable net assets).

Now I’m going to build a Watch Only portfolio of the above ETFs (starting with 1 share each) with $100,000 in cash and then run that through my Risk Rebalancer tool to get a rough idea of how $100,000 could be allocated across the above investment classes.

Here’s how it all came out (sorted by VQ% ascending):

Tradestops

Click on image to enlarge.

As you can see in the above, GLD and GDX together add up to just under $10,000 which is about 10% of this $100,000 portfolio. (Note that I’m disregarding the SSI indicators for this exercise.)

Interestingly, this is a VERY low volatility portfolio overall, with 88% of the assets in low volatility investments.

Tradestops

Now I didn’t go through this exercise because I think that you should allocate your assets as I have above. It’s just an example. I want you to go through this exercise yourself, so that you start to build your own position in gold and gold miners in a pre-meditated way.

Given your portfolio size and your asset class preferences, approximately how much should you be looking to invest in gold and the gold miners?

Think about it. Play around with some numbers in TradeStops using some ETFs as proxies for asset classes. The absolute worst thing you could do would be to buy more gold or gold stocks than you are comfortable buying. If you do that, you will very likely get stuck in a losing position (if the rally peters out) or take your profits too soon (if this is indeed the beginning of a new bull market).

You need more than just hope. You need a plan … and you need to stick to your plan. That, more than anything, is what will ultimately determine your success.

Richard M. Smith, PhD
CEO, TradeSmith
Founder, TradeStops.com

Richard’s advice above makes good sense and I recommend that if you are an investor,  subscribe to the professional version of Tradestops. Get full details here.

Gary

(1)  finance.yahoo.com – VRX

(2)  finance.yahoo.com – GLD

Why Leverage Silver ETFs

Turn $250 into $51,888… in Four Years or Less?

I first spotted an opportunity in 1986.   Two short term distortions (in the price of silver and the strength of the British pound) created potential for huge profits.  I wrote in a report (called the “Silver Dip”) that told how to borrow British pounds to speculate in silver and earn over $50,000 profit.  That’s the headline I used then in 1986, “Turn $250 into $51,888… in Four Years or Less”.

The report showed how to take borrow overpriced British pounds and invest the loan in under priced silver.   $250 was required to set up the loan.  No other cash was needed to borrow the pounds.

Readers who followed the report made $46,299 on the no cash investment in only one year

Then in 2015 I spotted the same distortion again.  The British pound was overvalued.  Silver was undervalued. 

I quickly issued a report… the “Silver Dip 2015” that looked at how similar conditions to 1986 had fallen into place.  The price of silver had reached a six year low.  The British pound strength was rising.  The dollar per pound rate was $1.55 per pound, exactly the same as in 1986 and the silver/gold ratio rose over 80 just as in 1986.

That report revealed the iShares Silver Trust, a silver ETF  and during the year after issuing this report, the share price rose from $13.57 per share to $19.60 in 2015.

The rise in the silver price created a nice profit.   The currency and leverage tactics within the strategy turned the nice profit into a very nice profit.

A $10,000 (6,451 British pounds) loan purchased 736 shares at $13.57.  In 2015 the shares rose to $19.60 and were worth $14,425 (up 44.25%).

Those profits were spectacular by any stretch of the imagination but turned out even better because the profits above excluded the forex profit.

In 2015-2016 , the British pound dropped almost exactly as it did 30 years ago!  The British pound fell from $1.55 per pound to $1.33 per pound.

At $1.33 per pound, the 6,451 pound loan only required $8,575 to pay back the loan.  This created an extra $1,425 forex profit.

When the opportunity appeared again last year, I updated the report to  “Silver Dip 2018”.

The 2018 report showed how the opportunity for this speculation was even better than it was in 2015.

Yet the profits have not yet arrived.  This allows me to make an amazing no-risk guaranteed offer to you.

Silver Dip 2019 includes profit calculations for 2019 and I offer you the report “Silver Dip 2019” with a year long guarantee.

“If the profits recommended in the report don’t arrive by the end of the year, I’ll give you a complete and full refund”.

That’s right if the tactic described in Silver Dip 2019 do not hit their target, you don’t have to pay a thing for the report.

Investing in silver ETFs leveraged with margin loans may create extraordinary profits in 2019.

The “Silver Dip 2019”  shows how to easily make an ideal speculation for almost any amount.   The report shows when and how to get margin loans in dollars, British pound, Japanese yen or euro.

In fact you learn how to borrow in 23 different currencies, even Russian rubles, so you can choose the weakest currency with the lowest interest rates.

Low Interest Loans

Interest on the loan won’t eat up profits.  The “Silver Dip 2019” shows how to borrow many currencies right now for less than 2%.

The Silver Dip is only exercised when conditions are absolutely ideal.  Value investors never push this rule.  Investment and speculative markets are full of rumor, conjecture (a lot of it false) and hidden agendas.  The Silver Dip relies instead on a really simple theory… that the price of gold should rise about the same rate as other basic goods and the rise and fall of silver’s price should maintain a parity with gold.  When that parity is out of balance (as it has been since August 2018) silver’s price is ready to explode.

The “Silver Dip 2019” explains how to speculate in silver ETFs plus outlines the following:

  • How to use the Silver Dip strategy without adding a penny of cash if you already have investments.
  • How to invest as little as a thousand dollars in silver if you do not have a current investment portfolio.
  • Why this is a speculation, not an investment:  who should and should not speculate and how to limit losses and take profits.
  • Three reasons why conditions are excellent for better for a Silver Dip now.
  • Three different ways to invest in the US or abroad.
  • How to buy gold and silver or platinum with or without dollar leverage margin accounts.

The “Silver Dip 2019” also contains four matrices that calculate profits and losses so investors can determine cut off positions in advance to protect profits and/or losses.  The report also looks at how to switch time horizons for greater safety.

Rising interest rates make the stock market highly dangerous in the short term. “The Silver Dip 2019” shows how to create a safe, diversified good value stock portfolio and use it to generate much higher returns with a little controlled speculation in silver.

Learn how to beware of certain brokers and trading platforms, how to choose a good bank or broker and how silver profits are taxed.

The report includes a complex comparison of silver’s price with other costs of living from 1942 to today to help determine its real value.

Finally, learn why and how to use advisers to manage profits from silver dips.

Current circumstances could cause the price of silver to rise rapidly at any time.  Do not delay reading this report.

The Silver Dip sold for $79 in 1986.  Due to savings created by online publishing (we have eliminated the cost f paper and postage), we are able to offer this report for $39.95.

Order now by clicking here.  Silver Dip 2019  $39.95

The benefit of 50 years experience in watching markets, metals, bonds, interest rates and currencies, I have learned many special pricing situations to watch for.

These special opportunities do not appear every day.  That’s why they are special.

Unless you have seen them come and go, it’s hard to see them coming again.

That is why I was willing to wait for years for silver to be in a special pricing position.

Our courses and reports are about finding good value and they have been helping astute readers find value investments, again and again for 50 years.

The “Silver Dip 2019” report shows a current huge opportunity.  I continuously watch for aberrations in currency and precious metal markets.   Sometimes a rare quirk, such as the currency distortions, low cost loans and low silver price  offer potential for profit, with very little risk of long term loss.

Investors who speculate on these aberrations at the correct time can make fortunes.

The time is now.

Success is almost guaranteed.  In fact an 89 year study showed a 99% change of success when sequence distortions are worked in a certain way.

We are stalking precious metal opportunity now.

The trap is set. We are waiting…

This opportunity is explained in the report “Silver Dip 2019”.

You can order the Silver Dip 2019 here for $39.95

Here is why there is no risk for you.  The report is 100% guaranteed.

I do not sell book, reports and courses.  I offer benefits.  If  the Silver Dip 2019 does not bring you the benefits you expect, just let me know any time in 2019 and I’ll send you a quick, no questions asked, full refund.

I can’t promise that silver’s price will rise in 2019 but  I can guarantee you’ll be fully satisfied with the report or… you can have your money back in full.

You can order the Silver Dip 2019 here for $39.95

Gary

Why We Need Slow Investing


As the world speeds up, we need to slow down.  One typical lie is the promise of something so far in the future, that the liar won’t be around when the promise needs to be kept.  Governments and businesses have been lying this way for so long that they have created quite a rat race for those now stuck with keeping the promise.  The way to avoid this rat race is to get off the treadmill and take time to observe and create your own health, earning and savings strategy.

A Wall Street Journal article “Cracks Starting to Appear in Public Pensions’ Armor” (1) reminded me that we each need to find easy practical ways to care for ourselves.

This article caught my attention because my father worked for the city of Portland. He was a zoo keeper.

Portland-zoo

(Article from Oregonian about my sister and me raising a baby lion.  We loved dad’s job.  He brought many lions and tigers home for us to care for.  At ten years old, this was so cool.)

What a great occupation for your dad to have when you are a kid!  But this is now the remains at the zoo.

Portland-zoo

Old Portland Zoo after it was abandoned… picture taken February 1960.  Will state, city and county employees be abandoned as well?

Having grown up during the depression of the 1930s, “job security and benefits” were Dad’s mantra.  He was in the right time at the right place.  His job provided a steady income and his pension benefits were fantastic.   Though he passed many years ago, my mom has received great benefits for over 30 years.

I have watched the benefits be cut and the article in the Wall Street Journal shares how all types of pensions from private to public to Social Security do less than before and are likely to do even less in the years ahead.

The article says:  “First in Detroit, then in Stockton, Calif., and now in New Jersey, judges and other top officials are challenging the widespread belief that public pensions are untouchable.”

The article tells how Gov. Chris Christie of New Jersey proposed freezing that state’s public pension plans and says: The first crack came in Detroit, where a judge ruled that public pensions could, in fact, be reduced, at least in bankruptcy. Then, just a few weeks ago, an opinion by the bankruptcy judge for Stockton, which emerged from Chapter 9 on Wednesday, called California’s mighty public pension system, Calpers, a bully for insisting in court that pension cuts were wholly out of the question.

Companies can legally freeze their pension plans and now more and more states are arguing that because they are legal sovereigns, federal pension law does not apply to them.  The problem is when states, cities and other local governments reform pensions  they cannot freeze benefits for existing workers.  Statistics show that reducing benefits only for future hires does not save enough money to preserve overstretched pension plans, especially in places where retirees outnumber current workers.

This problem created by longer lifespans, swollen benefits and lowered pension earnings induces many pension managers to do exactly the wrong thing, to speed up and leverage investing and increase risk.

An article entitled “Intel Lawsuit Questions Place of Hedge Funds in Retirement Plans (2)  tells how the Intel pension places big bets on hedge funds and private equity.  The plaintiffs say that this increases risks and costs in the retirement portfolios, hurting plan participants.

A decade ago Intel had a conservative pension primarily in large-capitalization stocks in the Standard & Poor’s 500. Then the company began diversifying into small-capitalization stocks, emerging-markets securities, fixed-income and alternative investments like commodities futures, hedge funds and private equity. Recently, these investments in hedge funds and private equity have grown significantly.

The answer to increased risk of default is not to increase risk, but to resolve the underlying problem of too much demand and too little contribution.  Pensions are meant to be absolute promises that their participants can depend on.  To keep their promise, they need well founded math based on reduced promises, increased contributions and slower, more dependable, good value investing.

Times are changing at an ever increasing rate.  The way to succeed in this scenario is to step off the treadmill, slow down so you can observe and create your own strategy for natural health, earning through a pinnacle career and saving with purposeful, good value investing.

Gary

www.nytimes.com – public pensions look vulnerable

www.nytimes.com – intel lawsuit questions place of hedge funds in retirement plans

Gain From Election Volatility

Here we are again… another election on its way… all the robo calls from politicians… the dirty tricks and the innumerable amounts of nonsense this vital process brings.

However America’s politics turn out, one thing is sure.  There will be volatility in stock markets during the election process.

The first reason markets will bounce has nothing to do with politics or policies.   A market correction is due regardless of the party or the person in office.

Second the new politics has created an uncertain era.  Everyone has been shaken over the past three years whether they are pleased with the government or not.

Nothing frightens markets like uncertainty.

Third if we see rising interest rates, this will push markets down.

Despite these pitfalls, there is a way to profit using the strong US dollar and undervalue non dollar stock markets to pick up good value shares.

During nearly five decades of global investing I have noticed found that good value strategies are the best way to profit long term, through good politics and bad.  The steps to take are simple.

The first tactic is to seek safety before profit.

We can look at Warren Buffett’s investing strategy as an example.  Buffett success is talked about a lot, but rarely does anyone explain how he make so much money.  That was the fact until some researchers really stripped his operation bare.  They looked at everything and learned the deepest of Buffett’s wealth management secrets.  Fortunately they published all in a research paper at Yale University’s website. that reveals important truths about extending wealth.

This research shows that the stocks Buffett chooses are safe (with low beta and low volatility), cheap (value stocks with low price – to – book ratios), and high quality (stocks of companies that are profitable, stable, growing, and with high payout ratios).

The second tactic is to maintain staying power.  At times Buffet’s portfolio has fallen, but he has been willing and able to wait long periods for the value to reveal itself and prices to recover.

A 45 year portfolio study shows that holding a diversified good value portfolio (based on a  good value strategy) for 13 month’s time, increases the probability of outperformance to 70%.

However those who can hold the portfolio for five years gain a 88% probability of beating the bellwether in the market and after ten years the probability increases to 97.5%.

Time is your friend when you use a good value strategy.  The longer you can hold onto a well balanced good value portfolio the better the odds of outstanding success.

The Buffett strategy integrates time and value for safety and profit.

A third tactic is using limited leveraging, tactic in the strategy boosts profit.  Buffett leverages his portfolio at a ratio of approximately 1.6 to 1.   The Yale published research paper shows the leveraging methods used by Warren Buffett to amass his $50 billion fortune.  The researchers found that the returns from Buffett’s investment company, Berkshire Hathaway, far outweighed those achieved by any rival that has operated for 30 years or more.  The research shows that neither luck nor magic are involved.  Instead, the paper shows that Buffet’s success hinges on using leverage at the rate of 1.6.

To sum up the strategy, Buffet uses limited leverage to invest in large purchases of “cheap, safe, quality stocks”.  He limits leverage so he can hold on for very long periods of time, surviving rough periods where others might have been forced into a fire sale or a career shift.

Stated in another way buffet uses logic (buy good value) to have the conviction, wherewithal, and skill to invest with leverage over many decades.

What do we do when we are not Warren Buffett?

May I introduce the Purposeful Investing Course (Pi) for those who want to invest like Warren Buffet, but know they are not.  This course is based on my 50 plus years of investing experience combined with wisdom gained from some of the world’s best investment managers and economic mathematical scientists.

Enjoy Extending Wealth

Pi’s mission is to make it easy for anyone to create a three point strategy, like Buffett’s even though they do not have a lot of time for or knowledge about investing.

Pi reveals investing secrets and the sciences that make investing easy, safer, less time consuming and increases the chances of profit.

One secret is to invest with a purpose beyond the cash.  One tactic as mentioned is staying power.  This means not being caught short and having to sell during a period of loss.  This also means having enough faith in a strategy that we stick to the plan.  When we invest with purpose, doing what we love, we enjoy the process more and are more likely to hold on during down times, when most poor investors panic and sell.

Slow, Worry Free, Good Value Investing

Stress, worry and fear are three of an investor’s worst enemies.  They create the Behavior Gap, a trait exhibited by most investors, that causes them to underperform any market sector they choose.  The behavior gap is created by natural human responses to fear.   Pi helps create profitable strategies that avoid losses from this gap.

Spanning the Behavior Gap

Behavior gaps are among the biggest reasons why so many investors fail.  Human evolution makes fear the second most powerful motivator.  (Greed is the third.)  Fear creates investment losses due to behavior gaps.  Fear motivates us more strongly than desire.  By nature investors are risk adverse.

Winning investors though embrace risk because they have a plan based on good value.

Purpose is the most powerful motivator,  stronger than fear and greed, so a strategy with purpose is the most powerful of all.

Combine your needs and capabilities with good value secrets and the math to back up your value selections through the Pifolio – The Pi Model Portfolio

Lessons from Pi are based on the creation and management of a Primary Pi Model Portfolio, called the Pifolio.  There are no secrets about this portfolio except that it ignores the stories (often created by someone with vested interests) and is based entirely on good math.

The Pifolio is a theoretical portfolio of MSCI Country Benchmark Index ETFs that cover all the good value markets using my (almost) 50 years of global experience and my study of the analysis of four mathematical investing geniuses (and friends).

The Pifolio analysis begins with a continual research of international major stock markets that compares their value based on:

#1:  Current book to price

#2: Cash flow to price

#3: Earnings to price

#4: Average dividend yield

#5: Return on equity

#6: Cash flow return.

#7: Market history

We follow this research of a brilliant mathematician and have tracked this analysis for over 20 years.    This is a complete and continual study of international major and emerging stock markets.

This analysis forms the basis of a Good Value Stock Market Strategy.   The analysis is rational, mathematical and does not worry about short term ups and downs.   This strategy is easy for anyone to follow and use.  Pi reveals the best value markets and provides contacts to managers and analysts and Country Index ETFs so almost anyone can create and follow their own strategy.

A country ETF provides diversification and cost efficiency by spreading one simple, even small investment into a basket of equities in a good value stock market.  The costs are low and this type of ETF is one of the hardest for institutions to cheat.  Expense ratios for most ETFs are lower than those of the average mutual fund.

Little knowledge, time, management or guesswork are required.  The investment is simply a diversified portfolio of good value indices.  Investments in an index are like investments in all the shares of a good value market.

Pi matches this mathematical certainty with my fifty years of experience. This opens insights to numerous long term cycles that most investors miss because they have not been investing long enough to see them.

For example in the 1980s, a remarkable set of two economic circumstances helped anyone who spotted them become remarkably rich.  Some of my readers made enough to retire.  Others picked up 50% currency gains.  Then the cycle ended.  Warren Buffett explained the importance of this ending in a 1999 Fortune magazine interview.  He said:  Let me summarize what I’ve been saying about the stock market: I think it’s very hard to come up with a persuasive case that equities will over the next 17 years perform anything like—anything like—they’ve performed in the past 17!

I did well then, but always thought, “I should have invested more!”  Now those circumstances have come together and I am investing in them again.

The circumstances that created fortunes 30 years ago were an overvalued US market (compared to global markets) and an overvalued US dollar.

The two conditions are in place again!  There are currently ten good value (non US) developed markets,  plus 10 good value emerging markets.

Pi shows how to easily create a diversified, worry free portfolio in some of these good value markets using Country Index ETFs.

The current strength of the US dollar is a second remarkable similarity to 30 years ago.   The dollar rose along with Wall Street.  Profits came quickly over three years.  Then the dollar dropped like a stone, by 51%  in just two years.  A repeat of this pattern is growing and could create up to 50% extra profit if we start using strong dollars to accumulate good value stock market ETFs in other currencies.

This is the most exciting opportunity I have seen since we started sending our reports on international investing ideas more than three decades ago.  There is so much more to write and the trends are so clear that I have created a short, but powerful report “Three Currency Patterns For 50% Profits or More.”   This report shows how to earn an extra 50% from currency shifts with even small investments.  I kept the report short and simple, but included links to 153 pages of  Good Value Stock Market research and Asset Allocation Analysis.

The report shows 20 good value investments and a really powerful tactic that shows the most effective and least expensive way to accumulate these bargains in large or even very small amounts (less than $5,000).  There is extra profit potential of at least 50% so the report is worth a lot.

This report sells for $29.95 but you’ll receive the report “Three Currency Patterns For 50% Profits or More” FREE when you subscribe to Pi.

Leverage

Pi also explains when leverage provides extra potential without undo risk.  For example in 1986 I issued a report called “The Silver Dip” that showed how to borrow 12,000 British pounds (at almost 1.6 to 1 dollars per pound the loan created US$18,600) and use the loan to buy 3835 ounces of silver at around US$4.85 an ounce.

Silver had crashed, I mean really crashed from $48 per ounce.  As prices decreased from early 1983 into 1986, total supply had fallen to 449.7 million ounces in 1986.  Mine production was restricted by the low prices at this time, with silver reaching a low for this period of $4.85 in May 1986.  Secondary recovery also was constricted by these low prices.

Then silver’s price skyrocketed to over $11 an ounce within a year.  The $18,600 loan was now worth $42,185.

The loan was in pounds and in May 1986 the dollar pound rate was 1.55 dollars per pound.  So the 12,000 pound loan purchased $18,600 of silver.  The pound then crashed to 1.40 dollars per silver.  The loan could be paid off for $13,285 immediately creating an extra $5,314 profit.  The profit grew to $47,499 in just a year.

Conditions for the silver dip have returned.  The availability of low cost loans and silver are at an all time low.  The price of silver has crashed from nearly $50 an ounce to below $14 as did shares of the iShares Silver ETF (SLV).

finance.yahoo.com chart SLV

iShares Silver Trust (symbol SLV) from www.finance.yahoo.com

Imagine investing in a spike like this… with leverage!

At the same time the silver gold ratio hit 80, a strong sign to invest in precious metals.

I have updated a special report “Silver Dip 2019” about a leveraged silver speculation that can increase the returns in a safe portfolio by as much as eight times.  The purpose of the report is to share long term lessons gained through 30 years of speculating and investing in precious metals.  While working on the report, when the gold silver ratio slipped to 80 and the price of silver dropped below $14 an ounce, I knew I needed to share this immediately.

I released a new report “Silver Dip 2015” so readers were able to take advantage of these conditions and leverage 1.6 times as a speculation.  That report generated profits as high as 212% and a revised 2019 issue has been produced.

“The Silver Dip 2109”  sells for $39.95 but  you receive  “Silver Dip 2019” FREE when you subscribe to Pi.

Save

Subscribe to the first year of The Personal investing Course (Pi).  The annual fee is $299, but to introduce you to this online, course that is based on real time investing, I am knocking $102 off the subscription.  Plus you receive the $29.95 report “Three Currency Patterns For 50% Profits or More” and the $39.95 report “The Silver Dip 2019” free.

Triple Guarantee

Enroll in Pi.   Get the first monthly issue of Pi, and the report “Three Currency Patterns For 50% Profits or More” and “The Silver Dip 2019” right away.

#1:  I guarantee you’ll learn ideas about investing that are unique and can reduce stress as they help you enhance your profits through slow, worry free purposeful investing.

If you are not totally happy, simply let me know.

#2:  I guarantee you can cancel your subscription within 60 days and I’ll refund your subscription fee in full, no questions asked.

#3:  I guarantee you can keep “Three Currency Patterns For 50% Profits or More” and “The Silver Dip 2109” report as my thanks for trying.

You have nothing to lose except the fear.   You have the ultimate form of financial security to gain.

Subscribe to the Pi for $197.   You Save $158.95.

Gary

 

 

 

 

Never Give Up Service


Never give up the ability to serve.   This is the number one way to guarantee you’ll never run out of money.  By the way, this is also the best way to happy, healthy and content as well.  Stock markets rise and fall.  Gold and silver reach bubbles that burst.  Recessions and depressions drain pensions and the ability of governments at every level to keep their promises.

grandfather economic report

See the deadly impact of faltering stocks and a dangerous dollar below.  Chart from economic report on inflation (1)

For example Illinois has a very poor A- credit rating, the same as Botswana, Latvia and Slovenia, and even then is on a credit watch with negative implications.  This state has a $111 billion pension shortfall, $7 billion in unpaid bills and by 2013 had just 39.3 percent of assets needed to meet promises to retirees.

Pension funds all over the world face this type of problem.  Pensions have too many promises, too little cash and too little time until increased demand.   They have been forced to increase risk to fulfill growing obligations to retirees.  So far these pensions have seemed to mitigate the problem because they are heavily linked to the rise and fall of global stock markets.  These markets were on the rise.

No more!  As markets fall, a shift is taking place that creates a self reinforcing, downwards spiral.

For example, the board of America’s second-largest pension fund, California State Teachers’ Retirement System, is considering a significant shift away from some stocks and bonds.  The fund of $191 billion is considering a significant shift away from some stocks and bonds, because it currently has about 55% of its portfolio in stocks.

Hawaii Employees’ Retirement System, is also thinking of taking 10% to 20% of its $14.4 billion in assets out of stocks and certain bonds into what it considers to be safer bets of U.S. Treasurys.

What happens when an already weak market is faced with huge sell offs like this?  Even worse, what happens when these pensions shift into seemingly safe U.S. Treasuries and the US dollar crashes?  Maybe the pensions will be able to deliver promised numbers.

Advertisement:  “See How to Profit From Silver When the Stock Markets Dips

However, the question we must grapple with is do these numbers have any purchasing power?

Never give up the ability to serve.   That ability is the one value that is most likely to overcome the ravages of inflation.

bob gandt

Order Mastery by Bob Gandt and Gary A. Scott $6.99 at Amazon.com

This is why I was so happy to contribute to Bob Gandt’s book “Mastery, A Mission Plan for reclaiming a Life of Purpose, Fitness and Achievement”.

“Mastery”  provides a step by step plan for recovering the ability to restore health, restore enthusiasm and restore action.

“Mastery” points out an even more important reason why you should never give up the ability to serve.  Giving yourself over to the care of others can destroy the body as well as the soul.

Yesterday’s Wall Street Journal article “Seven VA Home Residents in Illinois Die of Legionnaires” (2) shows what can happen when people let others take over their care.  The realities of overworked, underfunded agencies is often far different than the promises of the past that politicians made.

A reader of Mastery sent this note that highlights the importance of  having missions and fulfill a purpose:

Bob, Got your email on Mastery and ordered in in print and downloads in Kindle.  Working in ministry to military, veterans and families, I view this as a valuable resource.  The suicide rate of my generation of fellow Vietnam Vets is staggering.  Despite the negative Hollywood portrayal, Vietnam vets were highly productive, educated and lived full and rewarding lives.  So why kill themselves after retirement? I’ve been speculating that it is because of lack of mission and purpose.  As kids going into the military, most quickly learned about mission and purpose.  That learning translated into the knowledge and tools that made them successful in civilian life.  Now retired, they have no mission and no purpose, allowing some of the horrors of war and the like, to flood their minds.  Mastery provides a guide to finding a mission and regaining a purpose in life.  The VA and ministries to veterans will find your book a great aid to regaining a full, productive and meaningful life. Bravo Zulu!

Never give up the ability to serve.  Have a purpose. Create missions.  You’ll live longer, happier and be more fulfilled.  You’ll have the best inflation fighter too.

Order “Mastery” By Bob Gandt and Gary A. Scott $6.99 at Amazon.com

Gary

Learn how to make value investments that earn at our October 17-18 Value Investing Seminar.

Gain From Election Volatility

Here we are again… another election on its way… all the robo calls from politicians… the dirty tricks and the innumerable amounts of nonsense this vital process brings.

However America’s politics turn out, one thing is sure.  There will be volatility in stock markets during the election process.

The first reason markets will bounce has nothing to do with politics or policies.   A market correction is due regardless of the party or the person in office.

Second the new politics has created an uncertain era.  Everyone has been shaken over the past three years whether they are pleased with the government or not.

Nothing frightens markets like uncertainty.

Third if we see rising interest rates, this will push markets down.

Despite these pitfalls, there is a way to profit using the strong US dollar and undervalue non dollar stock markets to pick up good value shares.

During nearly five decades of global investing I have noticed found that good value strategies are the best way to profit long term, through good politics and bad.  The steps to take are simple.

The first tactic is to seek safety before profit.

We can look at Warren Buffett’s investing strategy as an example.  Buffett success is talked about a lot, but rarely does anyone explain how he make so much money.  That was the fact until some researchers really stripped his operation bare.  They looked at everything and learned the deepest of Buffett’s wealth management secrets.  Fortunately they published all in a research paper at Yale University’s website. that reveals important truths about extending wealth.

This research shows that the stocks Buffett chooses are safe (with low beta and low volatility), cheap (value stocks with low price – to – book ratios), and high quality (stocks of companies that are profitable, stable, growing, and with high payout ratios).

The second tactic is to maintain staying power.  At times Buffet’s portfolio has fallen, but he has been willing and able to wait long periods for the value to reveal itself and prices to recover.

A 45 year portfolio study shows that holding a diversified good value portfolio (based on a  good value strategy) for 13 month’s time, increases the probability of outperformance to 70%.

However those who can hold the portfolio for five years gain a 88% probability of beating the bellwether in the market and after ten years the probability increases to 97.5%.

Time is your friend when you use a good value strategy.  The longer you can hold onto a well balanced good value portfolio the better the odds of outstanding success.

The Buffett strategy integrates time and value for safety and profit.

A third tactic is using limited leveraging, tactic in the strategy boosts profit.  Buffett leverages his portfolio at a ratio of approximately 1.6 to 1.   The Yale published research paper shows the leveraging methods used by Warren Buffett to amass his $50 billion fortune.  The researchers found that the returns from Buffett’s investment company, Berkshire Hathaway, far outweighed those achieved by any rival that has operated for 30 years or more.  The research shows that neither luck nor magic are involved.  Instead, the paper shows that Buffet’s success hinges on using leverage at the rate of 1.6.

To sum up the strategy, Buffet uses limited leverage to invest in large purchases of “cheap, safe, quality stocks”.  He limits leverage so he can hold on for very long periods of time, surviving rough periods where others might have been forced into a fire sale or a career shift.

Stated in another way buffet uses logic (buy good value) to have the conviction, wherewithal, and skill to invest with leverage over many decades.

What do we do when we are not Warren Buffett?

May I introduce the Purposeful Investing Course (Pi) for those who want to invest like Warren Buffet, but know they are not.  This course is based on my 50 plus years of investing experience combined with wisdom gained from some of the world’s best investment managers and economic mathematical scientists.

Enjoy Extending Wealth

Pi’s mission is to make it easy for anyone to create a three point strategy, like Buffett’s even though they do not have a lot of time for or knowledge about investing.

Pi reveals investing secrets and the sciences that make investing easy, safer, less time consuming and increases the chances of profit.

One secret is to invest with a purpose beyond the cash.  One tactic as mentioned is staying power.  This means not being caught short and having to sell during a period of loss.  This also means having enough faith in a strategy that we stick to the plan.  When we invest with purpose, doing what we love, we enjoy the process more and are more likely to hold on during down times, when most poor investors panic and sell.

Slow, Worry Free, Good Value Investing

Stress, worry and fear are three of an investor’s worst enemies.  They create the Behavior Gap, a trait exhibited by most investors, that causes them to underperform any market sector they choose.  The behavior gap is created by natural human responses to fear.   Pi helps create profitable strategies that avoid losses from this gap.

Spanning the Behavior Gap

Behavior gaps are among the biggest reasons why so many investors fail.  Human evolution makes fear the second most powerful motivator.  (Greed is the third.)  Fear creates investment losses due to behavior gaps.  Fear motivates us more strongly than desire.  By nature investors are risk adverse.

Winning investors though embrace risk because they have a plan based on good value.

Purpose is the most powerful motivator,  stronger than fear and greed, so a strategy with purpose is the most powerful of all.

Combine your needs and capabilities with good value secrets and the math to back up your value selections through the Pifolio – The Pi Model Portfolio

Lessons from Pi are based on the creation and management of a Primary Pi Model Portfolio, called the Pifolio.  There are no secrets about this portfolio except that it ignores the stories (often created by someone with vested interests) and is based entirely on good math.

The Pifolio is a theoretical portfolio of MSCI Country Benchmark Index ETFs that cover all the good value markets using my (almost) 50 years of global experience and my study of the analysis of four mathematical investing geniuses (and friends).

The Pifolio analysis begins with a continual research of international major stock markets that compares their value based on:

#1:  Current book to price

#2: Cash flow to price

#3: Earnings to price

#4: Average dividend yield

#5: Return on equity

#6: Cash flow return.

#7: Market history

We follow this research of a brilliant mathematician and have tracked this analysis for over 20 years.    This is a complete and continual study of international major and emerging stock markets.

This analysis forms the basis of a Good Value Stock Market Strategy.   The analysis is rational, mathematical and does not worry about short term ups and downs.   This strategy is easy for anyone to follow and use.  Pi reveals the best value markets and provides contacts to managers and analysts and Country Index ETFs so almost anyone can create and follow their own strategy.

A country ETF provides diversification and cost efficiency by spreading one simple, even small investment into a basket of equities in a good value stock market.  The costs are low and this type of ETF is one of the hardest for institutions to cheat.  Expense ratios for most ETFs are lower than those of the average mutual fund.

Little knowledge, time, management or guesswork are required.  The investment is simply a diversified portfolio of good value indices.  Investments in an index are like investments in all the shares of a good value market.

Pi matches this mathematical certainty with my fifty years of experience. This opens insights to numerous long term cycles that most investors miss because they have not been investing long enough to see them.

For example in the 1980s, a remarkable set of two economic circumstances helped anyone who spotted them become remarkably rich.  Some of my readers made enough to retire.  Others picked up 50% currency gains.  Then the cycle ended.  Warren Buffett explained the importance of this ending in a 1999 Fortune magazine interview.  He said:  Let me summarize what I’ve been saying about the stock market: I think it’s very hard to come up with a persuasive case that equities will over the next 17 years perform anything like—anything like—they’ve performed in the past 17!

I did well then, but always thought, “I should have invested more!”  Now those circumstances have come together and I am investing in them again.

The circumstances that created fortunes 30 years ago were an overvalued US market (compared to global markets) and an overvalued US dollar.

The two conditions are in place again!  There are currently ten good value (non US) developed markets,  plus 10 good value emerging markets.

Pi shows how to easily create a diversified, worry free portfolio in some of these good value markets using Country Index ETFs.

The current strength of the US dollar is a second remarkable similarity to 30 years ago.   The dollar rose along with Wall Street.  Profits came quickly over three years.  Then the dollar dropped like a stone, by 51%  in just two years.  A repeat of this pattern is growing and could create up to 50% extra profit if we start using strong dollars to accumulate good value stock market ETFs in other currencies.

This is the most exciting opportunity I have seen since we started sending our reports on international investing ideas more than three decades ago.  There is so much more to write and the trends are so clear that I have created a short, but powerful report “Three Currency Patterns For 50% Profits or More.”   This report shows how to earn an extra 50% from currency shifts with even small investments.  I kept the report short and simple, but included links to 153 pages of  Good Value Stock Market research and Asset Allocation Analysis.

The report shows 20 good value investments and a really powerful tactic that shows the most effective and least expensive way to accumulate these bargains in large or even very small amounts (less than $5,000).  There is extra profit potential of at least 50% so the report is worth a lot.

This report sells for $29.95 but you’ll receive the report “Three Currency Patterns For 50% Profits or More” FREE when you subscribe to Pi.

Leverage

Pi also explains when leverage provides extra potential without undo risk.  For example in 1986 I issued a report called “The Silver Dip” that showed how to borrow 12,000 British pounds (at almost 1.6 to 1 dollars per pound the loan created US$18,600) and use the loan to buy 3835 ounces of silver at around US$4.85 an ounce.

Silver had crashed, I mean really crashed from $48 per ounce.  As prices decreased from early 1983 into 1986, total supply had fallen to 449.7 million ounces in 1986.  Mine production was restricted by the low prices at this time, with silver reaching a low for this period of $4.85 in May 1986.  Secondary recovery also was constricted by these low prices.

Then silver’s price skyrocketed to over $11 an ounce within a year.  The $18,600 loan was now worth $42,185.

The loan was in pounds and in May 1986 the dollar pound rate was 1.55 dollars per pound.  So the 12,000 pound loan purchased $18,600 of silver.  The pound then crashed to 1.40 dollars per silver.  The loan could be paid off for $13,285 immediately creating an extra $5,314 profit.  The profit grew to $47,499 in just a year.

Conditions for the silver dip have returned.  The availability of low cost loans and silver are at an all time low.  The price of silver has crashed from nearly $50 an ounce to below $14 as did shares of the iShares Silver ETF (SLV).

finance.yahoo.com chart SLV

iShares Silver Trust (symbol SLV) from www.finance.yahoo.com

Imagine investing in a spike like this… with leverage!

At the same time the silver gold ratio hit 80, a strong sign to invest in precious metals.

I have updated a special report “Silver Dip 2019” about a leveraged silver speculation that can increase the returns in a safe portfolio by as much as eight times.  The purpose of the report is to share long term lessons gained through 30 years of speculating and investing in precious metals.  While working on the report, when the gold silver ratio slipped to 80 and the price of silver dropped below $14 an ounce, I knew I needed to share this immediately.

I released a new report “Silver Dip 2015” so readers were able to take advantage of these conditions and leverage 1.6 times as a speculation.  That report generated profits as high as 212% and a revised 2019 issue has been produced.

“The Silver Dip 2109”  sells for $39.95 but  you receive  “Silver Dip 2019” FREE when you subscribe to Pi.

Save

Subscribe to the first year of The Personal investing Course (Pi).  The annual fee is $299, but to introduce you to this online, course that is based on real time investing, I am knocking $102 off the subscription.  Plus you receive the $29.95 report “Three Currency Patterns For 50% Profits or More” and the $39.95 report “The Silver Dip 2019” free.

Triple Guarantee

Enroll in Pi.   Get the first monthly issue of Pi, and the report “Three Currency Patterns For 50% Profits or More” and “The Silver Dip 2019” right away.

#1:  I guarantee you’ll learn ideas about investing that are unique and can reduce stress as they help you enhance your profits through slow, worry free purposeful investing.

If you are not totally happy, simply let me know.

#2:  I guarantee you can cancel your subscription within 60 days and I’ll refund your subscription fee in full, no questions asked.

#3:  I guarantee you can keep “Three Currency Patterns For 50% Profits or More” and “The Silver Dip 2109” report as my thanks for trying.

You have nothing to lose except the fear.   You have the ultimate form of financial security to gain.

Subscribe to the Pi for $197.   You Save $158.95.

Gary

 

 

 

(1)  Grandfather Economic Report on Inflation

(2) www.wsj.com seven-va-home-residents-in-illinois-die-of-legionnaires

Trapped in a Strange Place


Many readers tell me that even at home, they feel trapped in a strange place.  The typical comment I read is “America is no longer the place I used to know”.

This comes from a change that has taken place slowly. In my first book “Passport to International Profit” from the 1970s this thought was addressed.

Passport-Internatonal-Profit-gary-scott

The last copy I have of my first book.

Here is what that Chapter Two in the book says:

Having a Harbor

Doesn’t everyone dream of having some safe harbor for the ultimate escape? A completely dependable last line of defense, so that when everything else falls to pieces, one can drop back inside this cozy little shelter and enjoy a safe snug comfortable life. Certainly it is sensible to have one. In fact, to my way of thinking, anyone who doesn’t have quite a few safe harbors is not only playing a dangerous game he doesn’t have to play, he is missing one of the greatest contentments of life….confidence.

Duck in the Pond Theory

We would all have our own little partnership with our own little pond if we were ducks. The pond gives us water, food, shelter and peace. We, in turn, give it ducks. For what is a pond without ducks? We clean it, eat up unnecessary plants and in general keep everything in tiptop condition. However, every once in a while the hunters arrive. Very quickly the rules of the partnership change. You see, the pond as your partner has a limited range of powers. Whether it likes it or not, a new partnership is about to be imposed upon the pond. It will be forced to join in a hunter/pond partnership and part of the rules of that relationship is that the hunters can shoot at the ducks on the pond. This not only throws you, the duck, into an unrequested, unwanted hunter/hunted partnership but threatens to terminate quickly your duck/pond partnership.

It’s possible if you are not careful that you will become a diner/dinner partner on the wrong end of the fork. Logic dictates what to do in a situation like this. Since your pond partner is no longer dependable because the rules are about to be changed, you should take the initiative. Rule #1 of the Duck in the Pond Theory is in fact “Don’t be a sitting duck when the shooting starts”, so you’ve go to decide what to do.

All too often in real life, people get too upset with change to use logic. Their first reaction instead is dismay. They sit there wallowing in disappointment, shock and anger because their pond has let them down. Or even worse, they sit there looking at the gun barrels and choose to blind themselves to the reality of the situation, saying this is some sort of joke or the hunters are really looking for rabbits or the pond won’t let this happen.

Rule #2 in this theory is “be realistic”. If you don’t accept that partnerships can change daily or ignore the limitations of your partner; you are not capable of deciding when to run for your harbor. You’ll lie to yourself and probably to your partner. This gums up the whole works. You’ll mess up a fairly clean machine by adding unwanted, useless nuts and bolts which do nothing but clog everything up.

The human mind/body partnership has an almost unlimited capacity to ignore its eyeballs, to adjust reality to match its desires. This inbred flaw causes humans to ignore reality and expect the world to revolve around them. Being realistic is accepting that no person, thing or partnership is indispensable or permanent. Realism is recognizing change and accepting it when no one is able to stop it.

If, by being realistic, you recognize that as much as you love your pond and as much as the gun barrels look harmless, that the shooting is not far away, you must act. You must get off the pond. Where do you go? Rule #3 of the theory is to be sure you have another pond to go to. I call it having a positive pond factor. The more places you have to go, the more positive your pond factor.

Today we are forced into a citizen/government partnership with a government that has borrowed way more than we can repay.

This will cause the US dollar to fall and inflation to rise… eventually.

We can choose to feel that this is strange… or normal and expected.   There will be the few who are prepared to gain from change.  Most could become poorer… especially those with fixed income… pensions… savings in the bank or bonds in greenbacks.

Those with salaries may be protected a bit… yet with higher unemployment the risk of their losing their job will be higher as well.

In this era of great political and economic change… one constant we can be quite sure of  is change that hurts those on fixed income and salaries the most.

The terrible battle between Congress and the US administration reflects a universal aspect of nature… a conflict caused by a minority fighting back.

The concept of “Majoritarianism” says “the most votes rule”.    Yet this cannot be an absolute decree.  Democracy requires minority rights as well.  Otherwise the majority can too easily tyrannize the minority.   If the minority is equal enough, it will fight back.

This global process of the majority and minority working together usually creates compromise that builds excessive debt that gets paid by the invisible tax… inflation.  This results in a loss of purchasing power.

This is not just an American problem. There is excessive expenditures in most countries.   This degrades the purchasing power of all currencies.

At our October 2013 International Investing and Business Seminar we looked at how expats can structure their banking in a safer way with a Three Point Wealth Protection Posture.

This posture protects against a currency meltdown and helps prevent putting all of one’s money available to any one government.  Here is the chart we viewed at the seminar.

Gary scott seminar

One delegate at this seminar wrote:

Hi Merri & Gary, Just a short note to let you know we enjoyed meeting you both and thoroughly enjoyed your seminar.   It is helping us ‘think outside the box’ and we are excited about making some changes in our goals as well as our investment strategies. 

We feel fortunate that we had the opportunity to meet Thomas Fischer.  You and Thomas opened our eyes as to what is feasible when it comes to investing outside the U.S.

We have a lot to think about now and put into action.  We will be studying your online courses next and then attending some of your upcoming seminars.

Thank you for sharing your experiences and knowledge.  God bless you both. Kind regards,

Join us for our upcoming February 2014 International Investing & Business Seminar.  See details here International Investing and Business Seminar.

Pension Purchasing Power?

Beyond tax change, there is the risk of the US dollar, pensions, Social Security and fixed income payments losing purchasing power.  Even those who see their full pension promises filled… will have less purchasing power with the dollars they receive.

Trapped in a Strange Place

Seeing your income being badly reduced is terrible… but when this happens in a strange place it is even worse!

I have been broke in strange places three times and can assure you this is not pleasant.  Don’t do it!   My first experience in 1971, was in Singapore when the US dollar was devalued. For a short time I had only a pocket full of US dollars which no one would accept.  This was temporary… but I carry the emotions created by that fear to this day.

The second time I was trapped without income was serious.  My international business career began in the late 1960s at age of 21.  I joined a hot new international mutual fund company running their Asian office from Hong Kong.  Being one of the first to join I was given a generous stock option and watched it make me a paper millionaire at age 24. (And a million dollars was worth a lot in the 70s!)

Then Wall Street sank, the offshore mutual fund industry exploded and just as I turned 25, I was broke.  The shares in my stock option were worthless paper.

I was dead broke and could not even pay my rent… and was even wondering how to buy food.  There was no airplane ticket nor money to leave.   I was stranded 6,000 miles from home.

One day, getting ready for work I realized how really broke I was.  Normally the two mile drive into Central was cut short by a brief ride on the peak tram from the now defunct Bowen Road stop.

This ride cost then HK.25 cents… about  US 4 cents.  I did not have that Hong Kong quarter. I recall fishing though all the pockets in my clothes and could not find a cent!  Flat broke.

I did not feel particularly clever.  The thought was more like…. never again!

Hong Kong was not a place where a young American got a job with a salary.  Hong Kong was not a welfare state…  no food stamps there.  No welfare… no support mechanism at all.  I had to start my own micro business to survive.

The third time I was stranded without funds was in Ecuador.   All the banks shut down.  The country ran out of gas. Merri and I were living deep in the Andes and though we had plenty of money… overseas… we only had a couple of dollars in our pockets.   This was not really serious… but was a reminder… to share with you… “Don’t get caught anywhere much less a strange strange place without a way to earn”.

Those painful times are worth recalling because in our Writer’s Camps we find that the hardest part for many people who want a micro business is getting started.

Everyone should improve their lifestyles… all the time.  Add adventure. Increase income.  Do something worthwhile that makes you feel good.  Start your own micro business by writing to sell.  The idea behind your business can be traditional, crazy, fun or even funky but gives you flexibility to live where it is best for you.

Life is a series of never ending risk… each and every day, but there is a growing risk of relying on unreasonable promises from the past.   Promises from pensions, Social Security and fixed income.  Create a way to earn extra income wherever you are.   Consider having your own micro business by writing to sell now.

Gary

Writer’s Camps – Recorded on MP3

Learn how to learn how to wrote and self publish from our recorded Writer’s Camp…

Seven P Secrets of Self Publishing

When you write, you can work anywhere. 

gary-scott-image

Here I am working poolside in the winter, at our Florida farm.

gary scott

Here I am with our hound Ma, working during the summer at our North Carolina farm.

Learn how to earn everywhere, while living anywhere you choose.  I have been able to earn by writing in Hong Kong, England, the Isle of Man, Dominican Republic and Ecuador to name a few of the place I have lived.  Everywhere I have been… too numerous to share here, I have been able to work.

All I need is my laptop.

That’s all you need too… a laptop to be free!

Before computers, a pencil and pad did the job.

Freedom is just one benefit you can gain from writing.

Another benefit is income.   Writing has brought me both our farms, free and clear… plus a lot more.

Another good example of earning potential is my friend Hugh Howey.   He was working for $10 an hour in a book store when he self published his novel Wool, typing in a storage room during his lunch breaks.

Soon he was earning over $100,000 a month on Amazon.com.  This helped secure a six-figure book deal from Simon & Schuster, and an option for film by Ridley Scott, director of Blade Runner and Alien.

That’s what he’s doing now.

Hugh Howey

Sometimes Hugh and I get together at my  farm and play chess (he beats me badly).

Writers like High are great inspirations.

A couple of years ago Hugh  left Florida, and moved to South Africa.  He had a sailing catamaran built for him and now can sail the world while he continues to write.

Hugh explained it like this: And that’s the miracle of working as a writer: I can do it from anywhere and everywhere. The past few years, I’ve done a lot of writing from airplanes and airports while on business trips abroad.  SAND was entirely written overseas while traveling through seven different countries; I think it’s a better story because of those inspirations.  In upcoming years, I may be writing near your home port.

Hugh’s a super star writer and his success could not happen to a more deserving and talented person.  He pours enormous energy into being worthy of his readership.  But you do not have to be a million dollar a year earner or a traveler to benefit from writing.

The good news is… you do not need a huge success to have a rich and fulfilled lifestyle.  Self Publishing can bring you a life that most people only dream of, as a journeyman writer, instead of a super star.

May I hastily add that the path to stardom begins as a journeyman… so the journeyman’s path brings success without stardom… but can also lead to stardom.

What most success stories like Hugh’s rarely explain is the many hours of writing that was devoted before their self published book sales soared.   Hugh, like most writers were journeymen first.  Stardom came later.

Here are sevens secrets that can help you become a journeyman writer. 

The secrets are a writer’s armory of tools that allows almost anyone to create successful publications for income, freedom and fulfillment.

Take Merri’s and my publishing business as an example.  

Merri and I are not writing stars.  We are journeymen who have for more than 40 years, year in and year out, earned solid income writing and self publishing dozens of publications about multiple subjects.

Some years that income has been more than solid… over a million dollars.  Yet in terms of stardom, we are hardly known.

In a moment you’ll see why that’s fine for us and probably will be for you too.

First some history.

Merri became involved in self publishing over 40 years ago… first helping a veterinarian publish a book on a very specific market… animal acupuncture. Then she showed a needle point artist how to sell more books to an even more specific audience… “needle point enthusiasts”  about her needle point work to an audience larger than the population of the city she lived in.  This led Merri to eventually become Executive Editor of an award winning magazine in Florida.

My story allowed Merri and me to work and live from Hong Kong to London to Europe to Eastern Europe, then the Caribbean and then Ecuador… making millions in the process of following our adventures… having fun… while helping a large readership adapt to a rapidly changing world.

That’s what self publishing can bring, profit, adventure and fulfillment, a great feeling of worth and wonder.

Self Publishing has created exactly the lifestyle we desire allowing us to span the world and work with meaning and purpose.

Self Publishing has become a new business art form. 

The seven secrets can help you start your own self publishing business now.

Everything in publishing is new and exciting and changing.  Publishing is being recreated by the wonderful power of destructive technology.

Everything is new… except the seven secrets. 

Change in the publishing industry is disturbing many.   We love this evolution due to these seven secrets we call the 7Ps.  The 7 Ps are so fundamental to writing and publishing that new technology enhances rather than reduces their power.

The First P is Passion.

Whatever your passion, you can immerse yourself in it AND create income with self publishing.  This can be your direct ticket to the kind of fulfillment you’ve always wanted.

Whether you want to travel the world or live as a recluse, work 12 hours a day or not work much at all,  you can set your schedule to succeed, if you’re willing to learn these seven secrets.

You can start part-time with any dream, passion, and budget.  Once you’ve created a product, you’ll enjoy the “multiple effect” of producing profits over and over again.

So the question is… What do you love to do?

What’s Your Passion:  An example is that thirty years ago, a client of Merri’s had a passion to help people who were in pain?  He published a series of pamphlets explaining various chiropractic disorders in very simple terms.  For example: “What Is Whiplash?”

The pamphlets contained solid information, but were simple 5″ x 7″ brochures with drawings and explanations. He sold them with a rack to chiropractors, who put them in their offices for patients to read.  These little self-published items sold year in and year out for decades.

There are thousands of ideas of this sort that can lead to big business.  It’s just a matter of defining and then acting on your passion.

Although I can work when I please and go where I wish, for me the most important reason for being a publisher is the satisfaction it brings. 

I love the projects I take on, so work doesn’t feel like, well… work.

What do you love?  If you love golf, then you can write and sell publications about golf.  Love travel, fishing, dogs, dolls, or art?  Write and sell publications in these fields.

Are you concerned about crime, war, poverty or environmental issues?  You can publish information products that help reduce these concerns.

Would you like to help the world be a more spiritual place?  Publish a newsletter, write a book (or hire someone to write it for you), record a tape… publish something that enlightens people.

Whatever your passion, you can immerse yourself in it and earn income by publishing for ereaders, print on demand, CDs, lists, bound books, or any format you choose.

Be immersed in your passion and get paid well for it. 

This is why stardom is not the main goal for most writers and self publishers.  Extra income, more freedom and fulfillment are usually more than enough enough.

The seven Ps are:

#1: Passion

#2: Problem

#3: Person

#4: Profitably Priced Product

#5: Prospecting Pathway

#6: Promise

#7: Presentation

The first time I exposed others to the secrets in Self Publishing was in a weekend “Writer’s Camp” seminar.  We offered the camp for $1,500. 80 delegates enrolled.  People from all walks of life attended—chiropractors, businessmen, investors, doctors, realtors, inventors, airline pilots, engineers, and housewives.

Merri and I were so overwhelmed by the response, we decided to make it available to a larger audience.  We created a written course based on our current self publishing activity called “Self Fulfilled – How to be a Self Publisher.”  Then we recorded the weekend “Writer’s Camp” seminar.

Thousands have used the course as it has evolved over the decades.

You can receive both the written course and the recorded weekend seminar, in an MP3 file, in a special “Live Well and Free Anywhere” program I am making available to you.  The normal fee is $299 for the written course and $299 for the recorded workshop.   I’ll send you both the course and the recorded workshop and my course “International Business Made EZ (also $299) all for $299.  You save $598.

We are so confident that you’ll gain from this offer that if you are not fully satisfied, simply email us within 60 days for a full refund .

These courses are not theoretical.  They describe, step-by-step, how Merri and I built a million-dollar international business and how we are running this self publishing business right now.   We use the 7Ps today just as we did four decades ago to create a strong annual income.

This correspondence course is for those who would like their own international self publishing micro business for fun and profit. If you want fun, freedom, extra income and fulfillment with your own full or part time writing or want to build your existing business, by writing to sell you can profit from this course.  The course can help who want their own business or who want to have a business together or a family business.  This is the perfect course for those who can no longer find employment, who are looking for ways to earn abroad and who wish to retire and supplement their income.

Whether you are retired, an investor, chiropractor, doctor, dentist, professional or already own your own business, this offers another way to make money, to turn your passion into profit. We guarantee that we have shared all we know to help you start and run your own international business.  Enjoy and live a life of following your Passion to Profit… through writing.

Here is a special offer. 

We provide two emailed courses  “Self Fulfilled – How to Write to Sell and be a Self Publisher” and “International Business Made EZ”.

We include the “Self Fulfilled Writing and Self Publishing Course” because there are two reasons to write, when you have something to say or when you have something to sell.  In this day and age many of us want to do both, make a statement that makes the world a better place and earn something extra in the process. 

Whatever your passion, however you do business, chances are you’ll be writing either to create a product or to sell a product. 

You save more than $598 because you also receive a recorded webinar conducted by our webmaster David Cross (at no extra cost).

David-cross-images tags:"2012-4-20"

David Cross

David has been our webmaster since our website began in the 1990s.  He is Merri’s and my business partner. We could not run our business as we do without him.

Learn the tactics we use in our web business that condenses 27 years of practical experience about search engine optimization, and writing for search engines.

For the last 27 years David has worked with companies large and small – IBM, Agora Publishing, AstraZeneca and many small business owners.  He has worked in 22 countries, and lived in six of them.

David’s clients span the globe and represent companies and charities both large and small.  From corporate giants to small, one-woman businesses and everything from finance, healthcare, publishing, technology, real estate, veterinarians, alternative health centers and everything in between.

David is an essential part of our web based business.

Myles Norin, CEO of Agora, Inc.  wrote:  “I have found David’s knowledge and experience unmatched in the industry.  Without David’s expertise and guidance for the past 7 years, we would not be nearly as successful as we are.”

As Senior Internet Consultant to Agora Inc. in Baltimore, MD, he worked closely with Agora’s publishers and marketers and – over a 7-year period – helped to propel Agora’s online revenues from around $20 million to well over $300 million.

David’s webinar will help you gain benefits in your micro business that large internet marketing companies use.  In this practical recorded workshop you will learn valuable skills to help your micro business.

There has never been a time when the opportunity for small businesses abroad has been so outstanding.  Expand your borders now!  Increase your economic security freedom, independence and success.

If you are not fully satisfied that this offers you enormous value simply email us for a full refund within 60 days.  You can keep all three courses as our thanks for giving our courses a try.

You also receive a report  “How to use Relaxed Concentration to Brainstorm Business Ideas” and a recorded workshop “How to Become and Remain Rich With Relaxed Concentration” at no additional cost.

Plus you get more in the program.

You receive regular writing and self publishing updates for a year.  Businesses usually need to evolve.  Merri and I continue to publish and have our independent businesses.  Some basics have remained for decades, but new strategies occur all the time throughout the year.  We’ll be sending along updates that share our most recent experiences as we learn and continue to grow our international micro business from Smalltown USA.

My special offer to you in this “Live Well and Free Anywhere Program”, is that you receive:

  • “International Business Made EZ” course
  • “Self Fulfilled – How to Write to Sell” course
  • Video Workshop by our webmaster David Cross,
  • The entire weekend “Writer’s Camp” in MP3,
  • MP3 Workshop “How to Gain Added Success With Relaxed Concentration”
  • Any updates to any of the courses, workshops, reports or recordings for a year.

We are so confident that you’ll gain from this offer that if you are not fully satisfied, simply email us within the first three months for a full refund . 

Order “Self Fulfilled – How to Publish to Sell” and a quarter of update lessons $79.   Click Here.

Order “Self Fulfilled – How to Publish to Sell” and a full year of update lessons $299.  Click Here.      

See success stories from Self Publishers and a few who have attended the “Writer’s Camp” that you will receive on MP3.

 

 

The Great Pension Robbery III


The Great Pension Robbery III

shoemaker-ashe-county-art-images

Stephen Shoemaker’s “Virginia Creeper in Lansing”

One of the great joys in Ashe County are the murals on many buildings… especially those of the old time trains painted by Stephen Shoemaker.  Ashe County’s economic rise was due to the “Virgina Creeper” a train which crept up the mountains to pick up natural resources from the mines and forest.

Stephen is a famous artist in this area (his web site is linked below) and this rendering depicts the Virginia Creeper standing in Lansing…  the town (of two or three hundred people) nearest our farm.

Every time I see those paintings I am reminded of the Great Train Robbery the name given to a 1963 robbery at Bridego Railway Bridge in Buckinghamshire, England.  Almost $6 million dollars was stolen.

How odd that such a paltry sum made the theft famous.  Trillions are being stolen in the Great Pension Robbery and not enough is said.

This three part series has looked at the three ways that pensions are being robbed.

The first chapter in this series The Great Pension Robbery reviewed the first way pensions can be robbed through underfunding from insufficient contributions.

The Great Pension Robbery II looked at pension theft from lowered return on assets.

This message shows how the purchasing power of pension can be robbed by devaluing the currency.

The great train robbery netted about 6 million dollars in 1963.  To get the same purchasing power today would require a theft of $90 million or more.

Pity the poor train thief who spends 50 years in jail and finds that his hidden money buys less than a 15th of what he expected.

Yet should pensioners be treated in the same way?  Should we toil for 5o years and then find that the promised rewards of our pensions are almost worthless?

This is a sad fact… the likeliest pension loss will come via global currency devaluation.

Rising unsustainable government deficits and ultra low interest rates create pent up, hidden inflation. 

One way to protect again this loss is to have a multi currency portfolio.

We can watch for contrasts and distortions to spot currency trends that can equalize purchasing power.

Take for example the distortions in the parity between the interest rates and parity of the Brazilian real and the US dollar.  The chart below shows how the US dollar has risen and fallen versus the Brazilian real over the past five years.

brazil-real-chart-images

US dollar versus Brazilian real chart from finance.yahoo.com.

The real has gone up and fallen down but over five years it began at about two real per dollar and today five years later it is worth about two real per dollar.

Now the real has fallen dramatically yet pays almost six times more interest.

Thomas Fischer attended our most recent Writer’s Camp and talked about Brazilian real bonds.

On June 27, 2012 Thomas wrote: The Brazilian bonds are yielding as mentioned. The KRW bond maturing in March of 2015 (AAA rated) yields 5.75%.  Jyske Bank has a buy recommendation and a 12 months currency target of 1.90 (+8%) so if that pans out you are getting around 12%.

Morgan Stanley our other research partner is not convinced that the currency will appreciate that much so if you buy the bond it will be more of a currency speculation as the carry is 5.75%

Jyske estimated a 7% forex profit over a year.   They were wrong!  The profit boost came in six days!

On July 3, 2012 Thomas wrote again:  Hi Gary, The Brazilian real has appreciated almost 7% since we discussed the potential at your seminar.

brazil-real-chart-images

Short term US dollar versus Brazilian real chart.

Gain Balance From Distortions

This profit had seemed obvious to me.   The factors that cause currencies to be weak or strong include government debt and budget deficit.  The US has a budget deficit of about 8% of GDP.  Brazil’s is 2.5%.

A look at the Economist World Debt Clock shows US debt equals 61.2% of GDP and is growing at a rate of 20.6%.  Brazil’s debt is 59.3% of GDP and growing 9.9%.

Economist-global-debt-clock-iamges

The Economist Debt Clock. See link below.

When you hold a multi currency portfolio over a sustained period, you gain a never ending series of forex profit opportunities.

Over the past five years Brazilian bonds returned as much as 14% and the currency rose and fell versus the dollar but in the end is almost where it began. Today Brazilian bonds pay 5.75% and are loaded with upwards potential.  There is a great chance that at some stage in the next several years the Brazilian real will jump versus the greenback.  In the mean time you can earn the much higher interest rate.

Currencies rise and fall versus one another in the short term based on fear and greed.  Currencies move long term based on their fundamentals.

Here is our portfolio at JYSKE this time so you can see how we have spread out.

US Dollar  10%
AUD  8%
CAD  7%
NZD  7%
Dollar Bloc  32%

LatAe Mix 5%
MXN  5%
BRL 9%
LatAm Bloc 19%

Euro   13%
GBP  2%
DKK 6%
NOK  6%
PLN  8%
TRY 3%
Euro Bloc  38%
GSD   8%  –  Asia Bloc  8%

A multi currency portfolio is protection against pension robbery from devaluing currencies.

There is a a great chance that interest rates will remain low for some time.

JGAM  (Jyske Global Asset Management) sent me this note.

Central banks take action, again

The events of the week were central bank actions and U.S. job data.

Entering the week markets had already largely priced in further policy easing by the Bank of England (BoE) and the European Central Bank (ECB). Eurozone data showed that factory output remained weak, purchasing managers index remained in contraction area and unemployment had hit a record. Also, recent data had confirmed that the UK economy was sliding back into recession. Therefore, Thursday it came as no surprise that both the ECB and the BoE took action.
BoE expanded its asset purchase facility by British pound (GBP) 50bn to GBP 375bn, exactly as expected.

ECB cut its refinancing rate by 25 basis point to 0.75% and lowered its deposit rate to zero. As a consequence the euro (EUR) sank below 124 US dollar (USD).
The Danish National Bank (DNB) followed suit and lowered both the lending and the deposit rate by 25 basis points. The latter now stands at minus 0.20%. It’s the first time in the history of the DNB that the deposit rate is negative and it mirrors a healthy Danish economy.

Surprisingly, the Spanish and Italian bonds reacted negatively on the rate cuts. The reason could be that the market now think it’s less likely that a third long-term refinancing operation is forthcoming.

What the market had not anticipated was an action from the People’s Bank of China (PBoC). Unexpectedly, PBoC cut its interest rate for the second time in the space of a month. Possibly, an indication that Chinese policymakers are concerned that the economy has not yet found a bottom.

In the U.S. there is also speculation that a central bank action could be coming in the form of a third round of quantitative easing (QE3). Lately, we have seen a weak report from the Institute of Supply Management (ISM), indicating the first contraction in manufacturing activity for nearly three years. Also, the non-farm payroll data released today showed 60,000 new jobs created in June compared to an estimate of 100,000. The initial market reaction was a weakening of the EUR vs. the USD which might indicate reduced expectations of a QE3.

For more information on how to develop a multi currency portfolio contact Thomas Fischer at fischer@jgam.com

Non American investors should contact Rene Mathys at mathys@jbpb.dk

These central bank actions suggest a slowing global economy.  This risk is further confirmed by a June 2012 article entitled “Everywhere you look, economies slowing” by Paul Wiseman of the Associated Press.

Here are some excerpts (bolds are mine): “The global economy’s foundations are weakening, one by one.  Already hobbled by Europe’s debt crisis, the world now risks being hurt by slowdowns in its economic powerhouses.

“The U.S. economy, the world’s largest, had a third straight month of feeble job growth in May. High-flying economies in China, India and Brazil are slowing, too.

“Since the global recession ended in 2009, the world economy has been fueled by rising powers in the developing world led by China, India and Brazil. Now, all three are running into trouble.

“China’s manufacturing weakened in May, according to surveys out Friday. Factory output was the weakest in three months.

“Australia and other Asian countries have come to rely on Chinese markets for their exports.

“India is suffering an even sharper slowdown. Its economic growth slowed to a 5.3% annual rate in the January-March quarter, the lowest in nine years. Output from India’s factories has declined. “Its consumers have seen inflation — which has averaged 9.2% a year since the start of 2010 — devour their wages.

“In Brazil, the economy practically stalled in the first quarter of 2012. It grew at just a 0.2% annual rate from the final three months of 2011, the government said Friday. That was below expectations of 0.5% growth. Flooding punished farmers.

“But Brazilian officials, like analysts in China, also pointed to another culprit, one that shows how problems in one part of the world cause problems in another: The ongoing trouble in Europe is taking a toll on exports.

“Fears of a global economic downturn have sent investors rushing toward the safest possible investments: U.S. and German government bonds. As a result, the interest rate on the 10-year U.S. Treasury note has hit a record-low 1.46% Friday. The rate on the German 10-year bond is even lower: 1.17%.

“Treasuries are at 1.46 because people are freaking out,” says Mark Vitner, senior economist at Wells Fargo Economics.

These reports suggest a slowing global economy.  The strategy for this is for governments to lower interest rates around the world.  The slow economies can hurt business so more pensions will go unfunded.   The lowered interest rates can further rob pension purchasing powers as returns fall well below estimated asset growth.

Finally the efforts to stimulate the global economy can greatly increase national debt worldwide.  This debt is pent up inflation.

Whenever investors freak out forex profit, opportunities grow.  One way to tap into these currency opportunities is with a mulit currency portfolio.

Gary

Stephen Shoemaker website

Yahoo Brazilian real US dollar chart

Economist Global Debt Clock

Everywhere you look, economies slowing

A Trillion Here – A Trillion There – Preserving Pensions


There are 3.6 trillion dollars stashed away in private pensions.  This concerns everyone with a private retirement plan, 401 K, or IRA because that’s a lot of money and the US government has been casting its eye on it.

“A Billion here and a Billion there and pretty soon you’re talking real money” is a phrase incorrectly credited to the late Senator Everett Dirksen. Whoever said it, all we can say as taxpayers now is “We Wish”.  The phrase has upsized to “a Trillion here and a Trillion there!”

This sad fact has left the US federal government as a cash strapped organization looking for new ways to balance their budgets.  They are not alone. Furors are raging right now in Canada and the UK plus many states as well.  History suggests that at one time or the other most governments try to nationalize pensions.

Then they lock the pensions into a devaluing currency that destroys purchasing power.  This is an oft repeated slick trick that can destroy the lifestyles of retirees.

mint.com

I have linked mint.com below so you can see the enormity of just a trillion dollars.

Few jackpots are as rich as US private pensions… 3.6 trillion in 401Ks, defined benefit and profit sharing plans and IRAs.  The Feds would like to grab them… control them and they are gradually getting their way.   The drop in pension values during the last recession was the foothold they used to take their latest steps in a long game to grab these personal retirement plans.

The problem has been growing for some time but the newest thrust began perhaps in 2009 when the prestigious Cowles Foundation For Research in Economics at Yale University issued a report entitled:  THE CASE FOR TRILLS: GIVING THE PEOPLE AND THEIR PENSION FUNDS A STAKE IN THE WEALTH OF THE NATION

The Cowles Institute is a Yale based super think tank with threads leading to many administrations. I have linked the report below but here is the abstract:  We make the case for the U.S. government to issue a new security with a coupon tied to the United States’ current dollar GDP. This security might pay, for example, a coupon of one-trillionth of the GDP, and we propose the name “Trill” be used to refer to this new security. This new debt instrument should be of great interest to the Government for its stabilizing influence on the budget (as coupon payments fall in a recession with declining tax revenues) and for its yield, based on our valuation. Standard asset pricing analysis also suggests that Trills would enable important new portfolio diversification strategies and, in contrast to available assets that protect relative standards of living in retirement, Trills would have virtually no counterparty risk. We believe there would be a lively appetite for the Trill from institutional investors, public and private pension funds, as well as the individual investor.

What a great idea!  At least it sounds like a great idea as long as it is not run by the government and as long as this is not combined with a “You Must Invest Your Pension in Trills” as a catch.   If the Trill is mandatory and in the hands of the Feds, it could become something like the IRS saying  “Trust me – I am here to Help You”.

In short this idea lets the government have more control over private pensions.

The concern is that the government using the potential in this “good” idea to create a bad national private retirement plan.  The connections between government and the Cowles Foundation need to be examined as well.  The Cowles Foundation was started by Alfred Cowles, III who graduated from Yale as a member of Skull and Bones, so there may be concerns about the closeness of the foundation members with the government.

During the last debt ceiling crisis when the U.S. government lost its ability to borrow more money because the American debt limit was breached, the treasury dipped into federal retirement funds for available cash.  They have long yearned to get at the private pension funds as well.

Taking Federal workers’ money was a temporary measure but may have been the government’s next step in its plan to convert 401(k)s and IRAs into annuities as well.  That plan was floated as a trial balloon in January 2010.

Bloomberg Business Week reported about that and said:   The Obama administration is weighing how the government can encourage workers to turn their savings into guaranteed income streams following a collapse in retiree accounts when the stock market plunged.

The U.S. Treasury and Labor Departments will ask for public comment as soon as next week on ways to promote the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams, according to Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Secretary Mark Iwry, who are spearheading the effort.

Annuities generally guarantee income until the retiree’s death, and often that of a surviving spouse as well. They are designed to protect against the risk that retirees outlive their savings, a danger made clear by market losses suffered by older Americans over the last year, David Certner, legislative counsel for AARP, said in an interview.

“There’s a real desire on a lot of people’s parts to try to encourage something other than just rolling over a lump sum, to make sure this money will actually last a lifetime,” said Certner, legislative counsel for Washington-based AARP, the biggest U.S. advocacy group for retirees.

Promoting annuities may benefit companies that provide them through employers, including ING Groep NV and Prudential Financial Inc., or sell them directly to individuals, such as American International Group Inc., the insurer that has received $182.3 billion in government aid.

Balances Fall

The average 401(k) fund balance dropped 31 percent to $47,500 at the end of March 2009 from $69,200 at the end of 2007, according to a Fidelity Investments review of 11 million accounts it manages. The Standard & Poor’s 500 Index tumbled 46 percent in that period. The average balance of the Fidelity accounts recovered to $60,700 as of last Sept. 30 as the stock market rebounded.

There is “a tremendous amount of interest in the White House” in retirement-security initiatives, Borzi, who heads the Labor Department’s Employee Benefits Security Administration, said in an interview.

“The question is how to encourage it, and whether the government can and should be helpful in that regard,” Iwry said.

Retirement plans, including 401(k) accounts, held $3.6 trillion in assets at the end of the second quarter of 2009, while annuity investments of all kinds totaled about $2.3 trillion, according to figures from the Washington-based Investment Company Institute, a trade association for asset managers.

We should read the quote from that government official: The question is how to encourage it, and whether the government can and should be helpful in that regard” with some apprehension.  That sounds too much like “We are here to help you”.

mint.com

Having watched the government over 40  years gradually make it almost impossible for average Americans to bank abroad, I can see how an attack on private pensions could work in the same way.

The Administration is using a similar approach to make it almost impossible for Americans to invest their retirement plans anywhere but in US government bonds and bills… and perhaps Trills.

They took one step in 2010 when for the first time they audited all IRA Custodians.  In advance of the audit they sent a letter to all custodians addressing areas of concern which included though was not limited to Foreign Real Estate and Foreign Companies.   The letter specifically focused on the risks that overseas countries represent.

This could be a precursor to a “this is for your own good” approach to private pensions something like the FDA’s approach to not allowing Americans to buy  pharmaceuticals or the SEC’s approach to not letting Americans make investments in other countries. “They are not safe” is the mantra.  Americans cannot buy investments in Canada because the SEC cannot protect them.  Americans cannot fill prescriptions in Canada because the FDA cannot protect them.  I think you get the drift.

The plan to take over personal pensions could unfold in three steps. First, the FDIC will want to regulate where an American can invest in another country by determining if that country is “too risky” or not.  The second step will be to allow the FDIC to determine if any investment… even in the USA… is too risky.  Slowly only US government bonds, bill, Trills etc. could be deemed safe enough.

This is exactly what has happened with American banking.  First layer upon later of regulations were placed upon non US banks. This legislation made it so expensive for non US banks to have American clients that only really wealthy investors can have overseas bank accounts.

Second, the Fed lowered interest rates so the average American earns almost nothing at US banks.

There is not a line of legislation that prohibits Americans from banking abroad.  Instead the government regulated overseas banks who accepted American customers.  Slowly layer upon layer upon layer of compliance requirements were added that made it so expensive for a non US bank to comply that the banks had to stop accepting US clients.

The key in this private retirement plan attack will be to place the burden on the custodians instead of owners of the retirement plans.  The FDIC could determine it is “risky” and hence expensive to allow for foreign assets.  This will force custodians to only allow US investments and later only government assets.   These government assets could then be trimmed to pay almost nothing… reducing the pension’s purchasing power.

This is how the government destroyed the ability of Americans to bank abroad and can destroy the effectiveness of personal retirement plans.

The Government is using the recession that just passed and the current financial crisis in Europe to “prove to you” that they can make your retirement plan safer than you can.  “It’s for your own good”.

That is not far-fetched and this is no new phenomenon. Hungary, Poland, Bulgaria, Ireland and France – have taken over their citizens’ private pension money to make up deficits and budget shortfalls. There are battles raging over this in Britain, Canada and Greece to mention a few right now.

mint.com

I am so concerned that the attack on private pensions will emerge again after November 2012 that I have invited a specialist on “How to Invest Private Pensions Abroad” to speak at our February 10-12, 2012 Quantum Thinking + Investing and Business in Mt. Dora, Florida.

At the seminar we’ll look at how you can invest private pensions and IRAS abroad as well as wherever it may make sense to do so.

You can read more details and reserve one of the two spaces left here.

On the Subject of Taxes & Filing Tax returns with an international understanding, one of our readers is offering an income tax service (Efile Tax Returns) and understands US tax preparation even if you move overseas.

This tax preparation service can be useful when you are not abroad.  They help get fast refunds and offer a 100% federal calculation guarantee.

They provide a great savings with new tiered pricing options which allows you to pay only for the forms you need.

They also provide phone support for premium customers.
They can also help process tax returns for US citizens and non-resident aliens with foreign addresses.  They have all of the forms available for Expats.  All of this is available for a cost of $39.95.  This is for the “do it your selfer” who has knowledge and a pretty straight forward Expat return.

For those who have a somewhat complicated Expat return, they have made arrangements with a US CPA who lives in Europe and has prepared Expat tax returns for the past eleven years.

For more information you can click on EfileTaxReturns.com site.

I am happy to help you have this connection after having been frustrated for many years by the difficult and expensive task of finding a good tax preparer who understood expats and international investors.  For all the years that I lived in London, I had to use an expensive attorney there.  Today I know that three of my children who still live in the U.K. have suffered and continue to suffer these high costs as well.  I have sent this link along to them also.

Gary

One of the greatest ways to gain tax benefits is with your own international micro business so I am pleased to make the offer below.

THE CASE FOR TRILLS:

Retiree Annuities May Be Promoted by Obama Aides

Efile Tax Returns

See What a Trillion Dollars can do at Mint.com