Managing Your Own Money | FBF Article Directory

Wealth Building ? Millions of people around the world seeking the key to wealth creation, however, remains an ever elusive achievement even for those who have more resources than the average citizen. In fact, no matter whether black, white, Latino, Asian, Christian, Buddhist, Muslim, Brazilian, Japanese, Kuwait, British, German, Spanish, Italian, Cuban, Chilean, American or Canadian, the key to wealth creation is the same regardless of nationality, ethnicity, race or religion. However, many people seek solutions as diverse as Merrill Lynch jumps to Goldman Sachs to JP Morgan, to seek independent financial consultants, to speculate in assets that do not understand, for the purchase of investment newsletters to do your research for them . And the vast majority of people who have been looking for this way of creating wealth is still looking for today.

Why?

The answer is quite simple. These investors have a common denominator of failure and lack of a common denominator that is highly predictive of success. The common denominator of failure that unites them is the fact that all of their search for wealth creation was motivated by the desire to find the easiest way to create wealth. Placing your money in the hands of another person to manage the purchase of newsletters to tender their shares to take them, and greed driven behavior of gambling on speculative assets. Their common ingredient is missing and the reason for his lack of success is their refusal to take personal responsibility to learn to manage their own money.

So the big question is literally the following: What is the quickest way to create wealth?

The answer: Take the time to learn a proper investment system, take responsibility for your financial future and manage their own money.

Unfortunately, there really are viable alternatives to this response. We are here to demonstrate why. Below we provide you 101 reasons why your own money management is the fastest way to create wealth

(1) No financial or investment consultant increasingly care more about the performance of your portfolio than you. Reasons (2) and (3) are quite long, as it will help to clarify the reason (1).

(2) This is perhaps the second most important reason. Most people realize that most financial advisors are nothing more than glorified salesmen and saleswomen, even if they work for a prestigious investment firm. I?m not sure what the statistics on this are, but next time you talk to the branch manager of the brokerage firm, I invite you to see annual returns of the five highest paid financial advisers in his office during the past five years. Then ask financial consultants in the office have earned the best results for his clients over the past five years and ask to see these statements. Do not let the branch manager to answer your questions giving annual returns of the top five fund managers, internal or external investment firm uses. This response does not answer your question. First, it is highly unlikely that the major producers of recruiting the best year of five fund managers with better outcomes after year as any large global investment firm uses hundreds of money managers.

By this I mean that most financial consultants make zero decisions about which shares are bought with the money you give them. They hire money managers either internal or external to do this for you. Want to know what returns the five highest paid producers in his office earn annually for its clients based on the combination of money managers they hire to customers. If a branch manager refuses to divulge this information, you have to wonder why? If they say they do not know, why would so little importance to the company what kind of statement of the main producers are making for their clients who do not even keep track of this information?

And if they do, but do not tell, why should they not release this information? Should not the best financial advisers paid at any branch of gaining their clients the best returns year after year after year above any other financial adviser, by a wide margin. And if not, why are they being compensated so high? The answers to these questions, if you get an honest answer, shows that great salespeople are compensated generously for their firms while almost zero premium is placed on the ability of a financial advisor for large profits for their clients.

(3) Based on the point (2), many investors will then say, OK. I?ll find myself financial consultant, which falls in the top 0.5% of all consultants who really know what they are doing, and I will hire him or her. That is why they are wrong again. Because you never most people take the time to learn how to invest well, you can never understand the investment strategies of those who actually know what they are doing. This lack of understanding, despite the efforts for the consultant to educate the customer, leads inevitably to incessant questioning the actions of this consultant, strategies, etc, which can grow very boring very quickly.

I have dropped large accounts in the past because of such interference, the immature behavior of customers who had a lot of money. Consultants who really know what they are doing, despite their efforts, can not fully educate in time of 3-4 hours if you have been conditioned for years to believe that the sense that global investment companies that I have taught. Moreover, because consultants realize that the major concepts that are widely believed that many of the investment does not make sense, and have achieved their great performance to realize this, constantly be fighting an uphill battle against customers who believe this nonsense. So the chances that these customers would remain in the long term are slim to none.

Even if one finds the rare consultant who really knows what he or she is doing, and it really has overtaken the markets significantly in the year and after year, because this type of investment consultants so differently than the status quo The lack of exposure to such intelligent investment strategies undoubtedly will fear. It is human nature that ignorance leads to fear. In turn, fear causes incessant nagging questions, a behavior that 100% of time will make an ideal financial consultant to end a relationship with a client.

Because great consultants achieve higher performance by making decisions that go against the grain of what 99% of other financial consultants do, a high level of understanding of how to invest properly is necessary for one to even maintain a relationship with a great consultant. In the end, even if you do not want to manage their own money and even if one is able to find that rare 1 in 1,000 financial consultant who really knows what he or she is doing, one still has to learn an extensive system of investment just to maintain a healthy relationship with your advisor for knowledge. Ultimately, that?s why you must learn to manage their own money!

(4) The global investment firms always preach a message of confidence in their ads. But where is the historical evolution that deserves that trust? 6% to 10% a year?

(5) 6% and 10% never help you build wealth. You must learn to win at least 15% to 25% or more each year. In 8% per year, which will take 9 years to grow $ 250,000 to $ 500,000 and 18 years to grow $ 250,000 to $ 1,000,000 in an account that non-taxable, not taking into account the erosion of purchasing power due to inflation. In 25% a year, which will take less than 7 years to grow $ 250,000 on a $ 1,000,000 in an account that is not taxable. That?s the difference between wealth creation and wealth preservation. 6% to 10% from one year helps you preserve wealth, not build it.

(6) The major global firms never find the best stocks in the world market and hold them in portfolio.

(7) Reason (4) is true, because the coverage of the majors of small cap stocks and micro are awfully light. Companies must offer extensive coverage of large cap stocks, the Genentechs, the IBMs, the McDonalds, General Electrics of the world to appease their customers. However, Microsoft?s future are small cap stocks and micro now. You can not create wealth buying and maintaining the world?s global stock IBMS.

(8) Information technology and the flattening of the world?s information now makes it easier for you to be much more knowledge than any financial consultant employed by any of the major investment firms.

(9) financial advisors because of the payment network that dictates their salaries, are often motivated by the sale of products based on higher commission, not necessarily what is in your best interest.

(10) Investors who have built wealth by investing like Warren Buffett, George Soros, even Mark Cuban, have managed their own money. Investors who have accumulated great wealth employ money managers. That should tell you something about what is necessary to create wealth.

(11) Even large global investment houses only have the resources to track about 1,500 stocks. It is estimated that over 75,000 stocks that trade worldwide. Investors want the coverage of the most popular people in your country which means that the vast majority of stocks analysts cover firms are domestic large-cap stocks. Actions while working for a large Wall Street investment house, many times I wanted to buy that were marketed in China, the shares returned triple digit returns in less than a year, had zero coverage this company. Want to own the best stocks in the world, you have to manage your own money. Give your money to another person to handle, and probably far, far higher than ever will own the best stocks and opportunities in the world.

(12) There is a reason why you constantly hear statistics like 3% of people own 95% of wealth, no matter what country you visit. The reason is that these 3% of people took the time to learn to manage their money themselves and therefore actually have built wealth. If you do not believe that his statements should be limited to the knowledge of your advisor, then manage their own money. For example, how many times have you asked your financial advisor, I would invest in gold, or that I like to invest in mutual funds falling dollar, or that I would invest in Chinese markets, only to have your financial consultant stare at you blankly and say, ?the safest way to invest is what I?m doing for you now.?

I once heard anecdotal story. A wealthy individual asked his financial adviser, one of the major producers in your company, why he does not have shares in the Chinese stock market. The consultant told me some time and give you a list of actions you can buy. At the time the list, the list based on the U.S. pension funds Changs China restaurant chain stock. If this is the kind of advice given by a producer, you may think, how can you be a producer? I just read this entire list, and you will realize how easy it is for this type of situations that exist in the major investment firms.

Although this list contains 101 reasons, for reasons of space, we can not list all 101 reasons here. To read the rest of the ?101 Reasons? list, please click the link below.

Finance Article by Softweb Tech: Get more Share Market Tips and read more about NSEindia.

Source: http://freebookfor.com/2012/08/04/managing-your-own-money/

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