Book of Wise Investors

Here is a sarcasm look at current make money online direct response websites selling ebooks on make money online surfacing here, there and everywhere.

The make money online joke begin from this point,

Imagine waking up richer than Bill Gates!

If you’ve ever dreamed of making easy money, you’re going to love this… Making a fortune online is so easy a monkey could do it, if he wanted to. Few monkeys have the time to surf online though, they’re usually too busy swinging from trees and eating bananas.

Are you skeptical considering I said easy money and mentioned a monkey?…

First and foremost, structured products are investment products sold to retail investors usually by banks through bank relationships managers. Despite going by different names and advertised rates of return, financial products that fall under the category of structured products usually contain certain characteristics.

1. Difficulty in accessing how underlying assets performed

Money does not drop from the sky. Whatever you invest in, that product need to generate positive cash flows through some means and from somewhere else, usually from common financial assets of rental income from properties, mortgages, coupon payments from bonds or dividends from stocks.

It is difficult to…

We kept talking about risks when investing in the three well known asset classes like if we were lost some or all of our capital due to many factors involved but failed to consider one particular risk that will result us in losing some or all of our capital that has got nothing to do with what we actually invest in.

We all know that mutual funds are in general are diversified, how diversified it is for active managed funds will depends on each specific fund and for the case of passively managed index…

Although it is unlikely that one is going to lose every single cent when investing in mutual funds, unlike complicated structured products, a person can still sustain heavy losses that almost never recover. Just ask those who invest in technology funds during the dot com bubble. As with any other investments, risks is curial to consider even for mutual funds – an investment vehicle with so called diversified in many different companies’ stocks and bonds. The following points are needed to take note regarding risks of pooled investments like mutual funds.

The risks for mutual funds is different from the

…

“We believe that according the name investors to institutions that trade actively is like calling someone who repeatedly engages in one-night stands a romantic.”

Perhaps to some older generations, investing = gambling for them. That’s what you learn from in Hollywood anyway, looking at bickering screens of stock prices and talking to some people on phones at the same time. It is a mistake and a tragedy to assume that investing in stocks or any other things is equated to gambling, especially from both dramas and movies, when stories of people ended up bankrupt by playing with stock market are…

Since investment is such a critical part towards achieving financial freedom for most of us, and mutual funds is one common vehicle for that, one does need to know what is contained inside the portfolio of fund. Think about it, do you buy a new house for primary residence simply by looking at it from the outside. You won’t, simply because a house represents significant financial commitments, with mortgages that stretches to more than 20 years for most, I don’t think anyone will anyhow buy without looking at every single thing inside.

The same goes for investing in mutual funds,…

When it comes to investing for greater returns for ten years down the road, dollar cost averaging every single month of the year regardless of the prices of the stock market is not a very wise choice, especially since prices of equities always swings like a pendulum. While we all cannot determine the top and the bottom, we can at least know where the general top and bottom areas lie.

Be it enter the stock market through direct stock ownerships, actively managed mutual funds or passively managed index funds, it will be wise to at least know how to detect…

With an increasing educated population, particularly in personal finance and investing area, people are more likely to take charge of their financial affairs themselves rather than leave everything and blindly listen to financial advisers. As exchange traded funds is one essential investment vehicle for the masses, there is a need to provide a good introduction on it.

This blog post will touch on this type of product from several different aspects, including costs, size of markets that ETFs tracked, trading details, and tax considerations.

Exchange traded funds is without doubt, a very cost effective…