June 2012

The rewards of risk

In order to assess the right level of risk, it is more art than science for any investor!

That is actually a rephrase of a famous quote by Charles R. Schwab. The truth of the matter is that prudent investors will always look to take on some risk and avoiding risk is not the best approach all the time.

Reducing risk in a portfolio actually requires a lot of time. Diversification is the way to go and constant homework about the investments that you have already made is also very necessary. But risk can be your friend and this is especially true for a young investor like me as opposed to someone who is about to retire.

Finding inexpensive things to do

Having fun does not have to be expensive.

Having fun with your family does not have to be expensive. There are plenty of things that you can do for very little money, and these things can be really fun. Spending time together doing anything can be fun if you make it fun.

One of my favorite things to do with my family is to spend a day out at the beach. To do this it costs money for gas, because the nearest beach is about 45 minutes away and it costs a little bit of money to park and get in to the beach area. That is virtually it. I always pack a big cooler that contains food and drinks and we sit and have a picnic. 

Coupon codes

Finding coupon codes is a great way to save money online.

If you are the type of person that buys things online, you may want to begin searching for coupons before you make your purchases. There are many different websites available for this purpose and you can find coupons for almost anything that you are thinking of buying.

There is no doubt about it; the Internet is a great place to shop. You literally have hundreds or thousands of stores right in front of you. You can sift through each store looking for the items you want to purchase. You can read reviews from people that have purchased the items, and this is a great way to make up your mind. 

How to be a successful investor

I think the keys are the same as trying to succeed in any endeavor.

I feel like being a successful investor has three important things and this is the case whether you want to be a great football player or a businessman. These three things are being crafty, having a thick skin and being prepared to work really hard.

It doesn’t take much to become a successful investor. I mean it is hard work and there will be a lot of setbacks, but those that are highly motivated and apply themselves well enough will see some impressive results. 

It boils down to attitude. I am not yet a successful investor, but there have been many instances where I have thought in my head: “To hell with them, let’s go!”

Rich people always have an amount of debt

Wealthy people always have a certain amount of debt. It is vital to lessen the taxes that a rich person pays. Obviously, having little or no debt at all can be very advantageous. But debt is leverage and it is important to borrow to be able to move faster toward your goals (financial or otherwise).

Having a lot of money brings with it a lot of stress and a lot of wealthy people will tell you that it does not always make you happy. But hey, this is the case whether you are middle-class or poor. The thing is, to have money to be able to achieve those things that you have always dreamed of and having some debt is really not a bad thing if you are doing what you have always wanted to do or setting yourself up for it.

Buying a home or multiple homes

Most people look at buying a home as an investment and the super-rich obviously have multiple homes. Now there is the global elite where homes in different countries has become very commonplace. But it can also be a pain and I guess it depends on your personality.

That is really what it all comes down to. What is your personality and how do you want to go about living your life? Having multiple homes is a pain and it can be very costly too. But sometimes these things are very necessary to diversify. The point is not to fall in love with any of your assets. If the house does not bring in anything, then sell it.

Investing in education: A new approach?

I am always looking to go against the grain.

In the United States, most people head off to college right after they finish high school at the age of 17. This is indeed a great thing, but it may not be the most optimal use of one’s time and resources and I can definitely tell from my own experience having taken time off in between transferring schools.

Basically, the one thing that happens when you take time off is that it opens up your mind to so many different possibilities. It also makes you realize so many things and it will make you more aware of the world which will influence what you are about to study for the better.

A list of brokerage firms and trading platforms

One thing this country has is wide choice.

This is my attempt again with this week’s post to enlighten you on stocks and investments. I want to make this blog one of the best in educating people about what to do when it comes to the stock market and of course keep it in tune with how it works here at Klat. I want to do all this in a casual way.

So here is the list, which is in alphabetical order. It is just nice to have all of this in one place and so I dedicated this post for precisely that.

As you probably already know, each one of these trading platforms have their respective advantages and disadvantages. I encourage you to find out more about them as you go further along in your investing.

Start with a big name like Merrill Edge and Charles Schwab and then look to diversify by putting money in the other firms that are available. Again, this all depends on how much money you have to invest. The more money you have, the more advantages the more recognized firms such as Charles Schwab can offer you in terms of free trades and less commissions.

At the same time, do not discount what the smaller firms can offer you in terms of a lower cost and may be even more personalized services in some cases.