The not-to-do list, are you still doing these when it comes to investing?
This month I share with you my not-to-do-list. Here's my list of top 3 things not to do when it comes to investing:
1. Investing when stock prices are high
Everyone says to buy "low". But do you know how to figure out when a stock is priced low? In this article, I explain how to determine exactly when a stock is priced low (undervalued). You should never buy stocks when they are priced high (overvalued), and that includes buying mutual funds, index funds or ETFs that buy overvalued stocks.
Can you safely earn double-digit returns?
I'm going to show you some real-life examples of double-digit returns earned safely. Stock prices go and up and down all the time, the key is to focus on Real Total Return.
Real Total Return = Capital Appreciation + Dividend Income + Dividend Growth
What is a dividend
Quick reminder: A dividend is a payment (share of profits) made to you from the company just for being a shareholder. For example if a company is paying a dividend of $1/share, and you own 1000 shares, you will receive $1000 ever…
Would you like to earn more this year?
Would you like to know the fastest and easiest way to earn more this year?
The answer is...
The answer is dividends, but first let's take a look at some other ways to earn more:
- learn new skills and/or apply for a new job
- ask for a raise or promotion
- buy a rental property
- start a second job
- start a business
All of the above suggestions require a lot of time, effort, and money. And in the case of real estate and starting your own business it could be years before you see a return on …
Should you invest in companies with too much debt?
Would you lend money to a friend who had little income and was swimming in debt? Of course not, because the likelihood of you getting your money back would be extremely low. The same is true for investing in companies which have high debt.
Too much debt = unable to survive recessions
A company with high debt is going to have a hard time paying back its loan if the economy starts to sink. Companies with high debt will have a difficult time surviving downturns. We know from experience that downtu…
What if you invest at the wrong time?
The media is full of conflicting and negative news. One day they say the stock market will crash the next day they say everything is fine. When is the next recession coming? How long will it last? How far will stock prices drop? No one knows because no one can predict the future. As an investor, should you invest now or wait?
Getting into the market at the wrong time?
Tony Robbins (fyi...here's a link to Tony's Youtube channel) covered this topic in his book "Unshakeable", and I could not have…
Worried about making investing mistakes? Watch out for this...
Everybody worries about making bad investing mistakes. You don't want to lose your hard earned money, so it's important to make sure you are making the right investing decisions. One metric I always look at is the Payout Ratio, it only takes 10 seconds to check and can save you thousands of dollars in making poor investing decisions.
What's a Dividend?
But first, what is a dividend? A dividend is a cash payment paid to shareholders. The company decides when and how much to pay shareholders. As …
Want Proof of Profitability?
Before you invest your hard earned money, do you want proof that the company you are investing in is profitable? Of course you do! Do you want to keep your money safe, and avoid investing is risky companies? Then focus on what matters most - profitability.
Rising Stock Price
A profitable company is a financially healthy company, in the long run a profitable company will continue to pay you dividends, and ensure it's stock price continues to rise. After all as an investor you want to be able to …
How to Use Dividends to Pay Your Mortgage off Sooner
Would you like to burn your mortgage faster? Dividends can help you pay off your mortgage faster than you think. You shouldn’t you have to pay down your mortgage all by yourself, especially when you can use your investments to help you. Here is a safe, low risk, low maintenance way to save $129,608.58 and pay off your mortgage 4.1 years sooner.
What is a dividend?
A dividend is money in your pocket. When you own shares in a company, the company will pay you for being a shareholder. As a shareho…
Should you believe the hype?
Should you invest in companies that have just gone public? Should you invest in the hype?
What is an IPO?
Initial public offering (IPO) or stock market launch is a type of public offering in which shares of a company are sold to the public. Companies use an IPO to raise money for growing their business. Once a company goes public, it is able to issue more shares in the future if it needs to raise more money.
What's the Hype?
IPOs are generally preceded by media hype, this is designed to generate d…
What's passive income and how can you earn more of it?
What is passive income and how can you earn some?
Passive income is money you earn when you are not working. You can earn passive income while you sleep. Your day job does not provide passive income because you have to show up at work and trade your hours for money. Passive income doesn't require you to trade in your hours.
Where to find passive income?
I believe the best and easiest source of passive income comes from earning dividends. A dividend is the money you get for ownin…