Tag Archive | "Porsche"

International Internet Business Competition


Here is a really important point about international internet business and competition.

In a moment we’ll look at a Vilcabamba Ecuador house for sale.

Ecuador-house-for-sale

First, let’s see why your business can be an also-ran and yet bring you wild success!

Also-ran is described as:

1. A horse that does not win, place, or show in a race.

2. A loser in a competition, as in an election.

3. One that has little talent or success: just an also-ran in the art world.

Most Westerners are raised in a highly competitive environment.  “Win at all costs” is a growing credo in society.

The conditioning “to achieve” spills over when we get into business. Many make the error of thinking that their business must be #1.

Nothing could be further from the truth.

In The Kentucky Derby #1, #2 and #3 are all that count.  The Olympics award Gold, Silver and Bronze.  Everyone else is an also-ran.

In business you can finish 100th and be wildly successful.

In fact the day I produced this message, our website ranked (in terms of reach) 24,604th in the US and 10,012th in Canada.

We could hardly be happier. In fact I am not sure we could handle a faster growth rate.

A successful business requires a balance between three parties… the owners (us)… the customer… you and… the bank. The company must be profitable.

A small business dominated by many, much larger firms can still do well…. make millions in fact.

This is why we are sending you free lessons in internet marketing. Here is the third lesson.

Live Below Your Means

There is a caveat. For your business to remain balanced it (and you) must live within your means.

Most businesses have ups and downs and many inexperienced business people who meet with their  first success, spend it!  They have not learned how to survive sudden wealth.

I learned this lesson, the hard way, as a young executive, (just 25 years old).   My first job abroad was working for a new company in a hot sector.  I was the firm’s eighth employee.

My compensation included a stock option for 50,000 shares at a dollar each.  Within a couple of years the company had grown to 2,000 employees and the company  went public.   The shares were issued to the public at $20 a share.  At 25 I was already a millionaire and those were the days when you could buy more than a house for a million dollars! In fact a million then was worth about $12 to $15 million now.

I had not learned to save, lock in profits or to live below my means. My monthly salary was $750 a month so this wealth was bewildering. I bought everything I could, a new Mercedez 280 SL, a new house and I ran up some nice credit card bills.

Then the stock market collapsed. The sudden drop caused a run on the shares of the company I worked for and it with many similar firms collapsed. The entire industry tanked and the company went broke. I ended up unemployed, with no money and a lot of debt. My stock options weren’t worth the paper they were printed on.

The moral…when you make money, do not spend it all.

Most wealthy people receive their income in spurts. We saw this process regularly during the internet craze. Executives left proven fields to begin bold new startups and in an instant became billionaires!

My experience suggests that sudden financial success creates disaster as often as not.  Recipients of sudden cash make one of two mistakes.

The first mistake is to believe this is the only time there will be such an influx of cash. This tightens a person, so they can’t enjoy spending. They become afraid. Life becomes filled with paranoia. Unhappiness sets in. If money doesn’t make life better, what’s the use?

The other mistake is to think that these large chunks of cash will come easily again and again without worry or working. This thinking creates unrealistic lifestyles and work ethics that lead to disaster.

I first observed this ironic fact while living in England. A happy, financially responsible middle class family won millions in the lottery. Just a few short years after reaping this spurt of cash through supposed good luck, the husband and wife were bankrupt, divorced and no longer speaking to their kids.

I have seen example after example, of people, who received a sudden chunk of income made very unhappy by this large inflow of wealth. This is why it is a risky time when investors make a big sudden profit. The proud owner of new found wealth, buys new cars, houses and becomes very spendy. He creates overhead and debt. If there is a single reversal, everything is lost.

How much is a big hit anyway? One measure is a ten times increase in wealth. This normally is enough to make a significant difference in a person’s life. For someone with a thousand dollars in the bank, $10,000 seems like a lot. The extra money can make a difference. For someone who already has a million dollars, another million doesn’t make such a significant shift. Ten million does.

The reason spurts of profit create problems is because they disrupt our discipline. Money is discipline and our financial affairs have some form of economic routine, either self imposed or not.

We have a set of mental standards that makes us think, “I can afford this, but can’t have that”, etc. Spurts of wealth demolish these standards. Suddenly we can have many things we previously could not. We become, once again, kids in the proverbial candy shop.

Yet much of the Western world spends their lives trying to become and stay independently rich. If succeeding in this process can ruin happiness, what can we do?

First, realize that independent, permanent never-ending, fearless wealth is a process, (not a state) of a continual series of reasonable risks, mistakes, refinements, lessons and actions that culminate in getting it right. When success arrives, there is a huge income (or capital) spurt.

Understand that this is not the only time you can make a huge wad of cash.

Impose discipline. Here is a simple formula.

First, eliminate debt.

When Merri and I bought our house in Naples, we had what we thought was a large mortgage.

We bought a white board and wrote the mortgage amount on it.  Each week we paid whatever was left in our bank accounts on that mortgage and marked the new reduced balanced.  That became our weekly entertainment… paying down the mortgage rather than going to movies or dining out!  This weekly habit never took any money from us that we missed, and yet it gave us in 1 1/2 years total freedom from debt.

Second, trim overheads so they are less than income.

Third,  if you receive a large profit for the first time, immediately spend ten percent of the new money on your dreams. Buy, the Porsche. Take the world cruise. Build the new eight bedroom house. Do whatever you want that does not cost more than ten percent.

Second, give ten percent to a worthy charity. Take a little time, find a need in this world you feel really should be filled and truly give the ten percent away. Third, invest the remaining eighty percent very conservatively. Use the PIEC Everlasting Wealth system.

When we sold our house in Florida for an excellent profit,  we spent 10% to take a year off.

We gave 10% to help Ecuador’s poor.

We bought our farm and lived in a Coleman tent while we fixed up one of the old farm houses located on the farm.

internet - business

Next we turned this old barn into a guest suite, all…

internet - business

with cash flow. We did not touch our saved capital.

Next we built our farm office…

internet-business

and deep woods spa.

internet - business

Finally we built (over three plus years) our dream house in the woods… again all…

internet - business

with cash flow and without touching capital.

Manage Wealth Conservatively

Hire a good, conservative investment manager such as Jyske Bank or for Americans Jyske Global Asset Managers.

This steady, low leverage approach may slow the overall amount of wealth you build… but what you have will be more stable… less stressful and  safer wealth.

Low Cost Ecuador

One reason Ecuador has become so popular is that the low costs make it easier to live below your means.

Ecuador-house-for-sale

See this Vilcabamba Ecuador house for sale.

Finally be grateful every day, not for any lump of cash, but for the fact that even with a modest also-ran business and personal financial discipline you can enjoy wild success!

Gary

Combining good international investing with the greatest asset of all, the ability to earn wherever you live, brings everlasting wealth.

This is why we offer our course Tangled Web… How to Have an Internet Business.

A clear mind and healthy body are also a vital assets… plus a second language is a powerful diversification tool.

This is why I am willing to pay you $300 to attend either our Ecuador Super Thinking plus Spanish seminar in September or our North Carolina International Business & Investing seminar in October.  Sign up for either seminar and I will email you our Tangled Web… How to Have an Internet Business Course (offered at $299) free plus I’ll knock an extra dollar off your seminar fee…. to round up the $300 savings.

See details of the two seminar below.

Delegates at our Ecuador seminars and tours enjoy Ecuador music.

Join Merri, Thomas Fischer of JGAM, our webmaster David Cross and me in North Carolina this October and enroll in our emailed course on how to have a web business free.  Save $300.

Learn more about global investing, how to have an international business and diversification in Ecuador at the seminar.

Oct. 9-11 IBEZ North Carolina

Here are comments from one seminar delegate about the way we help: Gary & Merri. My wife and I really enjoyed the IBEZ course in West Jefferson this past July. There was a lot of very interesting information. I will be working with David Cross to help set up an internet site. I have some interesting ideas regarding the flowers.   Thanks again for such a great course.

Sept. 17-21 Ecuador Super Thinking + Spanish Course

Sept. 23-24 Imbabura Real Estate Tour

Sept. 25-28 Ecuador Coastal Real Estate Tour

October 16-18 Ecuador Southern coastal tour (early sign up before Sept. 1, $499 per person).

Oct. 21-24 Ecuador Import Export Tour

Oct. 25-26 Imbabura Real Estate Tour

Nov. 6-8 IBEZ Ecuador Seminar

Nov. 9-10 Imbabura Real Estate Tour

Nov. 11-14 Ecuador Coastal Real Estate Tour

Attend any two Ecuador seminar or tours in a calendar month…$949 for one.  $1,349 for two.

Attend any three Ecuador courses or tours in a calendar month…$1,199 for one.  $1,799 for two.

Multi Currency Problems & Solutions


Multi currency investing becomes increasingly harder as increasing numbers of banks abroad refuse to accept US customers. A recent message at this site shared how the large Dutch Bank, ABN Amro, stopped accepting US customers and gave existing US clients 30 days to liquidate their securities.  If you missed this see Multi Currency Investments Easier

multi-currency-meeting-in-autumn

See below how autumnal colors can help you solve multi currency problems.

Now another large Swiss bank has found it too much to deal with aggressive US regulatory tactics and shut down its US business. Here is what a recent Financial Times article entitled “UBS tells unit staff to avoid US visits” by Haig Simonian says:

“UBS has told members of its former private banking team responsible for rich US clients not to travel to America.  The Swiss bank has also made lawyers available to the more than 50 bankers involved, many of whom have left UBS since it decided last November to wind down its cross-border private banking business for US ­customers.  The move follows the recent indictment of one of the unit’s former senior executives, Bradley Birkenfeld, who US authorities have accused of helping a billionaire client evade taxes. Mr Birkenfeld has pleaded not guilty and his lawyers have made no public statement on the matter.”

I am very pleased that Jyske Bank, my banker for about 25 years has decided to stand by its American customers. The bank created a wholly owned subsidiary Jyske Global Asset Management (JGAM) that is registered with the SEC.

The changes, however, create many questions which I would like to answer at this site. Please send your questions.

As a financial publisher, I cannot give independent advice.  I cannot even give you a personal reply nor comment on your specific personal investments or portfolio.  I can, however, answer your questions here in a general way.

Here is the first question received.

JYSKE BANK QUESTION

“What is going on with Jyske Bank and their JGAM program which will make it more difficult to do multi currency sandwiches unless one has invested at least 1 million with the bank.  As I understand it, my portfolio will be managed without my input which does not make me feel comfortable.  What is your take on this?”

JYSKE BANK ANSWER

I have spent hours reviewing how JGAM will work with Thomas Fischer.

First, let me clarify several points…the first being that only Americans will use JGAM.  For non Americans it is business as usual at Jyske.  This will have a pretty big impact on my business since I have so many non US readers.  Our site ranks well for visits in Ecuador, Canada, China, Germany, New Zealand, Singapore, United Kingdom and Mexico as well as the USA.

This means I’ll have to write everything twice once for us Yanks and once for the rest of the world.

Second, minimums have not changed at all.  For some time the minimum has been $50,000 to open and account and $100,000 is minimum for a multi currency sandwich…not 1 million.

Though JGAM will manage each portfolio on a discretionary basis, the client still has a great deal of input on how they will manage each account.

Jyske has a number of portfolios ranging from low risk – medium risk – high risk and speculative.

These portfolios are then again split into portfolios with and without US securities.

Then the accounts are again split  based on assets under management.

For example, clients with less than $200,000 will have a different diversification than larger accounts.

Every portfolio is monitored and tracked on an individual basis.  There is no specific JGAM portfolio so all investors will have their own regular performance up-date.

The JGAM investment committee will meet once a month deciding on the tactical weight of the asset classes and the underlying investments.

When a client joins, the Jyske account manager will work first to help the client decide on a risk profile. Once this is decided, Jyske will be invested in one of the 16 options above.   Every investor’s portfolio will be designed and will change according to the time of entering the portfolio.

Here are the latest recommendations as of late May 2008 of the speculative NON US dollar portfolio.

Asset type                Recommendation       Tactical weight
Fixed Income                  Underweight                  20
Equities                           Neutral                          60
Alternatives                     Overweight                    20

Cash                                Neutral                            0
Investment                               %
Asset type

FIXED INCOME
USD       7.2% Porsche 01.02.2049                         3%
USD       7.875% Turanalem 02.06.2010                 2%
USD       8.5%  Titan Petrochemicals 18.03.2012    1%
EUR       Var% Bombardier 15.11.2013                     3%
GBP       8.7% Cable & Wireless 06.08.2012             1%
AUD       5.5% Rabobank 27.01.2010                       3%
BRL       12.5% Brazil 15.01.2016                              2%
HUF       6.75% Hungary 12.10.2010                        2%
TRY       15% Intl. Bank Recon 15.07.2009                2%
ISK         8.5% Rikisbref 12.06.2009                         1%
Subtotal                                                                  20%

EQUITIES
CHF                   Novartis                                      4.2%
EUR                   Siemens AG                                 4.2%
EUR                   Adidas AG                                   4.2%
DKK                   Carlsberg A/S                             4.2%
EUR                   EDF Energies Nouvelle                4.2%
DKK                   NKT Holding                               4.2%
DKK                   Neurosearch                               4.2%
EUR                   Bayer AG                                     4.2%
EUR                   L’Oreal                                        4.2%
SEK                    Hennes & Mauritz AB                  4.2%
Latin Equities Mutual Fund       4.0%
Chinese Equities Fund              4.0%
Indian Equities Fund                 4.0%
European Equities Fund             5.0%
Subtotal                                                              60.0%

ALTERNATIVES
USD                    ETFS Crude Oil – CRUD LN         10.0%
USD                    ETFS Aluminium l ALUM LN          5.0%
USD      ETFS Metal Secs Phys. Gold – PHAU LN       5.0%
Subtotal                                                                 20.0%

CASH                                                                       0
TOTAL                                                                 100.0%

This looks like an interesting portfolio, and in future messages we’ll be looking at
the equities in this portfolio.  Plus we will review the other three (high medium and low risk) portfolios.

I believe that Multi currency investing is a must in these times of inflation.   Using international investment managers still has main advantages.  First, this provides some excellent asset protection. This also provides access to more experienced multi currency managers with different points of economic and world view than anywhere in just North America.

This also provides some privacy.

May I add one more word on privacy?  If you are a law abiding citizen then an overseas account gives you as much privacy as you need.  If you break the law and have almost any government looking for your financial data, then no system or structure you use is enough.

I have not touched on this subject for years because this is such old news…but knowing we have many new readers…let me repeat what I shared with readers clear back in the 1990s.  “Bank privacy is dead”.

Here are just a few of my articles at this site in the archives  from the 1990s and early 2000s.  Please read them carefully.
https://www.garyascott.com/privacy/77/
https://www.garyascott.com/privacy/50/
https://www.garyascott.com/privacy/167/
https://www.garyascott.com/privacy/60/
https://www.garyascott.com/privacy/59/

Yet here is one more brand new story….about what is known as the most private place in the world…Liechtenstein.

Here is a direct quote from a February 22, 2008 BBC article entitled
“Liechtenstein fury at German tax snooping”  by Steven Rosenberg

“Liechtenstein also has the reputation of being one of the most secretive tax havens in the world.

“Just ask the Organisation for Economic Co-operation and Development.

“This financial watchdog says Liechtenstein is one of only three states left on its blacklist of ‘uncooperative tax havens’ (the others are not a million miles away – Monaco and Andorra).

“Liechtenstein this week attacked the authorities in Berlin for buying information on German businessmen clients that have bank accounts in the tiny Alpine principality.

“Germany has launched a tax evasion investigation using the data, which was supplied by an anonymous informant who was reportedly paid 5m euros (£3.75m; $7.3m). “

So I will say this again.  Please for your sake, don’t break the law anywhere…anytime.  This could come back to haunt you in unexpected ways.

Here is an example.  The data the German authorities obtained about accounts in Liechtenstein covered people from around the world…not just Germany…so the Germans began sharing it.

According to my European banking sources, only one European tax authority turned the data down…the Danes.   They believed that since this data had been illegally obtained it should not be used.

One reason I have banked for so many years with Jyske Bank is the same reason why I live half the year in Ecuador.

I like Jyske’s services, their very reasonable fees and their solid banking foundation…but in addition I like the Danes…feel an underlying honesty, sense of fair play and sound judgement.  The have never let me down which is why I am not surprised that they worked for several years setting up this structure so they can continue to serve Americans…when so many other banks have cut us Yanks loose and run.

I expect that the service JGAM will provide is still a work in progress and have noted the people there questioning, adapting and smoothing out a new system.

Everything I have seen to date suggests that I will be happy with this new program
because the people there like I have always seen seem focused on giving a service that is safe, wealth preserving, ground breaking and easy for the customer.

I’ll be adapting our multi currency course to reflect the changes and will keep you informed about new ways we can continue to learn about this mysterious, interesting and profitable world of multi currency investing.

I am not paid a penny for writing this about Jyske Bank and have always been able to write that I keep them as my bank simply because I like them the best of all banks I have used.

I can continue writing this and hope until next message that you find all these qualities with whomever advises you on your finances, savings and wealth.

Gary

You can join me with Thomas Fischer of JGAM at our October 2-5 lifestyle International Investing & Business Made EZ North Carolina

We have selected these dates for our next course because this is traditionally the weekend when the fall colors are best.  We’ll meet here for a meal multi-currency-meeting-place

at our house on the farm.

Here is Thomas Fischer talking with a group at a previous course.

multi-currency-meeting

You can still  make to our June 19-21 Ecuador Shaman Tour

See dates for our Autumn courses and tours:

Ecuador Coastal-Quito Real Estate Tour

Ecuador-beach-meeting

We’ll see properties in this developmet and stay at and walk that beach below.

Ecuador Super Thinking + Spanish Course

Ecuador Imbabura Real Estate Tour

See houses for sale in the San Miguel development
Cotacachi-real-estate-for-sale

like this.

cotacachi-house-for-sale
Learn about this Imbabura real estate for sale at Cotacachi Real Estate at San Miguel

Ecuador Ecuador Import Export Course

International Investing and Business Made EZ Ecuador

See discounts for attending more than one course.