Regulatory Status of Cryptocurrency ETFs

In this 268-page hardcover book, the award-winning Dr. AbleTrend, the creator of the best-selling market trading system. John Wang reveals many secrets behind the award-winning system. The book, however, is not a duplicate presentation of proprietary information presented in expensive workshops given by Dr. Wang.

What you get from the book is a scientific, objective way identify market trends. The old saying that Trend is your friend is probably no less true than it was first said by an ancient Japanese or Chinese rice merchant many centuries ago. No matter how primitive it may seem, it is not so easy to identify a trend early, nor to determine exactly where the trend ends.

However, this information is very important for your trading success because the trend determines which side of the market you are on, long or short, where the buy / sell and loss stop prices should be sent, the location of support and resistance prices and finally. The amount of risk you should be willing to take objectively in any trade.

Trend analysis is even more complicated because individual traders operate in different time frames. A one-day trader who wants to clean his hair for a few points or pips has a completely different perspective on the trend than managing a 401 (k) portfolio for retirement in 10 years. The principles presented in the book have a universal application for any market and at any time, and make them equally suitable for scalpers and investors.

Many readers also Dr. He enjoys explaining the philosophy behind Wang’s successful trading method. Discipline and rational risk management are critical to your success as a trader compared to any computer algorithm. His philosophy has skillfully touched on the basic principles of the AbleTrend trading system so that even an inexperienced trader can see how the points of support and resistance and loss should not be arbitrary or emotional.

Some readers have criticized the book because it looks like a trailer for the AbleTrend software package. I suspect that this may be an expression of greater frustration that Dr. Wang’s private trading software algorithms are not designed for everyone to see and copy.

If you are looking for a trading book to add to your library that will provide you with insights into how to objectively identify the beginning and end of a trend in stocks, commodities, foreign currencies, ETFs, e-minis, and mutual funds, then you are likely to benefit from this book.

One of the biggest mistakes investors make is ignoring the “return on investment” portion of their investment portfolio … many don’t even realize it has to happen. The second biggest mistake is to check the performance of profitable securities in the same way as “growth-oriented” securities (stocks).

The following Questions and Answers assume that portfolios are built around those that minimize these four major financial risks: All securities meet high quality standards, generate a certain return, are diversified in a “classic” way, and are sold when a “reasonable” target profit is achieved.

1. Why should a person invest for income; Aren’t stocks better growth mechanisms?

Yes, the goal of capital investment is “growth” production, but most people think of growth as an increase in the market value of the securities they own. I think of growth in terms of the amount of new “capital” created by the realization of profits and the complexity of earnings when that new capital is reinvested, using the distribution of “cost-based” assets.

Most counselors don’t look at profits with the same warm and fuzzy feeling I do … maybe it’s a tax code that treats losses more positively than gains, or a legal system that allows people to sue counselors if a review looks wrong. can be purchased. To be honest, there is no such thing as a bad profit.

Most people do not believe that in the last 20 years, all three major stock markets have “surpassed” the average of the 100% income portfolio in “gross income” …: Annual interest income:

NASDAQ = 1.93%; S&P 500 = 4.30%; DJIA = 5.7%; 4% Closed Last Fund (CEF) portfolio = 6.1%

• * NOTE: CEFs that have been taxed for the last 20 years have actually earned about 8%, tax exemptions, a little less than 6% … and then all the capital gains from 2009 to 2012 are available. was.

Try to look at it this way. If your portfolio brings in less revenue than you draw, something must be sold to provide the money spent. Most financial advisors agree that at least 4% (must be paid in monthly increments) is required to retire without taking into account travel, grandchildren’s education, and emergencies. This year alone, most of that money had to come from your boss.

• Similar to the basic fixed annuity program, most retirement plans provide for an annual reduction in principal debt. On the other hand, the “retirement-ready” income program leaves the main debt to the heirs while increasing the annual expenses for retirees.

2.
How much of the investment portfolio should be directed to income?

For everyone under the age of 50, at least 30%, then the allocation increases as the pension grows … portfolio size and spending requirements should dictate how much of the portfolio could be at risk in the stock market. Typically, no more than 30% in shares for retirees. Very large portfolios can be more aggressive, but isn’t real wealth knowing that you no longer have to take significant financial risks?

As an additional precautionary measure, all equity investments must be in Investment Grade Value Shares and branched stock CEFs, thus ensuring cash flow from the entire portfolio at all times. But the main thing from day one is to make calculations of the distribution of all assets based on the position value instead of the market value.

• NOTE: When stock prices are very high, stock CEFs provide significant returns and excellent diversification to the managed program, allowing you to participate in the exchange with less risk than individual stocks and even significantly higher returns from profitable mutual funds and profitable ETFs. gives.

The use of total “working capital” instead of current or periodic market prices allows the investor to know exactly where the new portfolio supplements (dividends, interest, deposits and trading income) will be invested. This simple step will guarantee an increase in total portfolio income from year to year and a significant acceleration towards retirement, as the distribution of assets itself is more conservative.

• The distribution of assets should not change based on market or interest rate forecasts; forecasting income needs and minimizing retirement-ready financial risks are key issues.

3. There are several different types of income securities and

There are several basic types, but there are many variations. To keep it simple, and in a growing risk sequence, there are US Government and Agency Debt Instruments, State and Local Government Securities, Corporate Bonds, Loans, and Preferred Shares. These are the most common assortments and generally provide a stable level of income to be paid semi-annually or quarterly. (CDs and Money Market Funds are not investments, their only risk is the “opportunity” range.)

Variable-yielding securities include Mortgage Products, REITs, Single Trusts, Limited Partnerships, etc. includes. And then there are the many intricate assumptions made by Wall Street with “tranches,” “hedges,” and other strategies that are too complex to understand. to the extent necessary for prudent investment.

In general, higher yields reflect higher risk in individual income securities; increases the risk of complex maneuvers and adjustments exponentially. Current earnings vary depending on the type of security, the issuer’s underlying quality, the maturity, and in some cases, certain industry conditions … and, of course, the IRE.

4. Hhow much do they give

Mix short-term interest rate expectations (IRE, respectively), current income, and keep things interesting as earnings on existing securities change with “inversely proportional” price movements. Revenues vary significantly between types and are currently below 1% for “risk-free” money market funds, and less than 10% for oil and gas MLPs and some GYOs.

Corporate Bonds account for about 3%, preferred shares for about 5%, and most taxable CEFs for about 8%. Tax-free CEFs generate an average return of about 5.5%.

• There are enough spreads of income opportunities and investment products for each type of investment, quality level and imaginable investment period … not to mention global and index opportunities. But without exception, closed-end funds pay significantly more than either ETFs or Mutual Funds … not even close.

It is expensive to buy and sell all types of individual bonds (there is no need to disclose the price increases and new issuance privileges on the bonds), especially in small quantities and when prices fall, it is virtually impossible to add to the bonds. Preferred stocks and CEFs behave like stocks, and it is easier to trade as prices move in both directions (i.e., it is easier to sell for profit or buy more to reduce costs and increase profitability).

• During the “financial crisis”, CEF revenues (tax-exempt and taxable) almost doubled … almost all of them could be sold more than once, with “one-year initial interest” profits, before returning to normal levels in previous periods . 2012.

5. How do CEFs create these high income levels?

There are several reasons for this big difference in investors’ income.

• CEFs are not mutual funds. They are separate investment companies that manage their securities portfolios. Unlike mutual funds, investors buy shares in the company itself and have a limited number of shares. Mutual funds always issue an unlimited number of shares equal to the Net Asset Value (NAV) of the fund.
• The price of CEF is determined by market forces and can be higher or lower than NAV … so they can sometimes be purchased at a discount.
• Income mutual funds focus on total income; CEF investment managers focus on the production of spending money.
• The CEF raises cash through an IPO and invests the proceeds in a securities portfolio, much of which will be paid to shareholders in the form of dividends.
• The investment company can also issue preferred shares with a much lower guaranteed dividend rate than it can get in the market. (For example, they can sell 3% of the preferred shares and invest in bonds that pay 4.5%.)
• Finally, they negotiate very short-term bank loans and use the proceeds to buy long-term securities that pay higher interest rates. In most market scenarios, short-term interest rates are much lower than long-term interest rates, and loan terms are as short as the IRE scenario allows …
• This “leverage borrowing” has nothing to do with the portfolio itself, and in times of crisis, managers can stop borrowing short-term until a more stable interest rate environment returns.

As a result, the actual investment portfolio includes capital that yields significantly more than the proceeds from the IPO. Shareholders receive dividends from the entire portfolio. Read the article “Investing under the Dome” for more information.

6. What about Annuities, Fixed Value Funds, Private GMOs, Income ETFs and Retirement Income Mutual Funds?

Annuities have several unique features, none of which “invest” them well. If you do not have enough capital to earn an adequate income, they are excellent security covers. “Variable” diversity adds market risk to the equation (with some additional cost) by lowering the initial fixed amount annuity principles.

• They are “the mother of all commissions.”
• They impose fines of up to ten years, depending on the size of the commission.
• They guarantee you a minimum interest rate that you will receive for your “actuarial lifespan” or longer lifetime. If you are hit by a truck, payments are suspended.
• You can either make an additional payment for the benefit of others, or to ensure that your heirs receive something when they die (ie you can reduce your payments); otherwise, the insurance company receives the entire balance no matter when you leave the program.

Fixed Value Funds provide you with the lowest income you can get in a stable income market:

• They cover the short-term bonds to limit price volatility, so in some scenarios they may actually yield less income than Money Market Funds. For those with slightly higher yields, the insurance includes a “bandage” that provides price stability at an additional cost to the annuitant.
• They are designed to reinforce Wall Street emphasis on the harmless and natural identity of securities that are sensitive to market price volatility and interest rates.
• If the money market rates return to “normal” someday, these bad jokes will most likely disappear.

Private GYOs are the “father of all commissions”, illiquid, secretive portfolios, and in many ways far below the openly traded range. Take the time to read this Forbes article:
“Investment Choice to Avoid: Private GYO” By Larry Light.

Income ETFs and Retirement Income Mutual Funds are the second and third best ways to participate in the fixed income market:

• They provide a diversified portfolio of individual securities (or mutual funds) (or track prices).
• ETFs are better because they look and feel like stocks and can be bought and sold at any time; The obvious disadvantage of most is that they are built to track indices, not to generate revenue. Some of what appear to be a serious over 4% production (for information only and not recommended at all) are: BAB, BLV, PFF, PSK and VCLT.
• As for Mutual Retirement Income Funds, the most popular (Vanguard VTINX) has a 30% capital component and yields less than 2% of the money actually spent.
• There are at least one hundred “experienced” tax-exempt and taxable income CEFs and forty or more equity and / or balanced CEFs that pay more than any income ETF or Mutual Fund.

More questions and answers in the second part of this article …

While the price of gold is about 67 times the price of silver, it is logical to conclude that silver is richer and easier to obtain than silver. On the contrary, the evidence proves otherwise. In fact, very little silver can be found everywhere.

Surface Silver Holdings Recognized in Ounces

Silver ETF SLV 295,313,780

The U.S. Eagles hit 240,418,077

COMEX Warehouses 114,102,049

Approximate Private Bullion (without eagle or maple) 120,000,000

Central Fund of Canada 75,209,103

LBMA Estimated reserves 75,000,000

Canadian Maples hit 21,303,000

Silver ETF ZKB – SWISS 7,397,885

BMG Bullion Fund 5,033,609

General 953.777.503

There is about twice as much gold as silver in the form of investment rates on bullion and coins, and this ignores the fact that 52 percent of the world’s gold is stored in jewelry. While there is 953 million ounces of surface silver, there are about 1.803 million ounces of surface gold in the form of ingots.

It is also important to note some structural differences in the storage of gold and silver. About half of the gold bullion is in the hands of governments. There are no known silver reserves held by governments. Although governments have historically sold gold to finance their budgets and keep the price of gold, there is no similar ready-made enterprise that can sell silver bullion. Precious metal investors often keep their precious metals for years, decades, and periods measured in lifetimes. Most private investors will not sell their bullion for 10 percent or even 100 percent profit. Therefore, even if there is about 1 billion ounces of silver available, the question remains how much of it is sold close to today’s prices.

The estimated dollar value of all silver bullion is small compared to gold or other assets. In fact, silver measured in dollars is 1/127 of gold. The silver market of many investment funds is more than $ 16.88 billion, but it is easier to buy gold for a larger dollar. Silver may be one of the most neglected and unloved treasures of this century. Perhaps the reason why silver is so cheap is ironic, because it is very rare for assets to be invested by managers. Or is it?

1. What is the best Forex platform?

There is no way to answer such a question. This, of course, will depend on the trader’s preferences, knowledge, experience, as well as his intention to trade (which financial instrument). Many mid-level experienced traders, especially when trading in the foreign exchange market, prefer to use platforms such as MT4 or C-Trader, which are mainly designed for Forex trading, as well as CFD trading, and for those who have some knowledge of the trading market.

Others, more inexperienced traders prefer to use platforms found in Easy-Forex, iForex or eToro, where their use requires limited math / calculation knowledge and is easier to use.

More advanced / experienced traders who may prefer access to many markets will prefer to use brokers such as Interactive Brokers or SAXO Bank’s SAXO Trader. Such platforms typically include more advanced chart / analytics tools (although most analytics tools are also available from MT4 / C-Trader), as well as stocks, ETFs, Swap trading, and more. including access to thousands of tools; and with the ability to enable traders to participate in such markets.

2. Forex Trader: What is the best way to trade Forex?

If you have looked at forex trading, then you have undoubtedly been exposed to all the different opportunities to make money and you are wondering which is the best way to learn forex trading. First of all, I would recommend getting Forex Education. There are countless articles on the Internet about Forex for newcomers as well as experienced traders – all you need is a search. Take the time to read how Forex trading works, the concepts behind trading, and how economic and political conditions affect prices.

Second, you need to gain some experience, if you want to learn forex trading, this is the only way. To begin with, be careful that it is in a demo account. This will give you a good technical basis in the mechanics of forex trading and you will get used to using the trading platform.

After trading on a demo account for a while, it is very important to use a Real account, albeit with a small investment – find a broker who will accept lower-sized trades (0.01 lots for FX) so that you can get a real feel. for the live market. This is a completely different game trading on the demo and real platform due to the psychological impact of real money trading. Small trading will allow you to put your money online, but if you make mistakes or lose money, the risk is small.

From there, if you gain more than you lose, you should gradually increase the size of your trade and the capital you invest, keeping in mind that this is always an amount you can lose and feel comfortable with.

3. What is the best forex trading program?

There are a number of Forex Trading programs available, all with specific advantages and disadvantages. Many trading companies have set up their own platforms, while others prefer to use existing solutions that are well known in the industry and actually use the White Label.

It would be unreliable to say which is better, as this is in the opinion of the individual user, but there is a clear trend in terms of popular platforms that prevail among both inexperienced and veteran traders. These platforms are Metatrader 4 and C-Trader. The first is built primarily for Forex products, and the second is designed to accompany other instruments such as stocks and ETFs. Both platforms are easy to use and master, and are complemented by full graphical and technical analysis capabilities.

4. Forex Trader: How can you be a good forex trader?

In short, the key to a good forex trader is discipline. Yes, there is a lot to learn and know before engaging in any trade or entering the financial industry, but one thing that needs to be consistent throughout the entire period is discipline. Discipline in learning, making your first trade, and staying true to your plan.

Here are the basics that all new traders should follow:

– Learn about Forex – There is a lot of material on the net. Spend 1 month learning well. Learn technical and fundamental analysis. Your learning should continue well in your trade and be sustainable.

– Come up with a strategy – Set rules that will determine your trading model and how you enter and exit the market.

– Train in a demo – Open a demo account and trade realistically. Of course, this will not be as “accurate” as you would be in real trading, because the fear of losing will not affect your decisions. If you can’t make money in the demo at first, don’t move on to the next stage.

– Practice on a real account with a small amount – Do it to understand the difference between real money trading and demo trading. Do it in small amounts, but enough to worry about losing it.

– Trade a significant amount in a real account – Do it with the amount you are “comfortable” to lose completely. Even if your strategy works a little on demo and real, it may not continue in the future. Stick to your strategy (be completely disciplined). If you see a strategy fail, adjust your strategy accordingly, but always follow it once a decision has been made.

5. Foreign Exchange Market: Is it possible for an amateur forex trader to make a steady profit from forex trading?

Many traders made money from Forex trading, and some made very rich profits, which allowed them to be self-employed and leave 9-5 jobs behind. All of these traders have one thing in common – they all started out as amateur forex traders! No one is born with trade know-how; is achieved through self-sacrifice and discipline.

So, yes! an amateur forex trader can really make a steady profit from forex trading. As long as he is willing to make an effort and has the discipline to make such a commitment, there is no reason why others should not be able to do in the same shoes what he did before.

6. Forex Trader: Who is the best forex trader?

There is no Best Forex Trader – or at least there is no clear way to measure it (the amount someone earns or the% earned from it). Also, because many of the world’s best forex traders trade not with their own money, but with funds and the Company’s capital, this means that there are different psychological and risk appetite conditions for different traders, leading to bias to compare the success of such traders. those who trade with their own capital.

One thing to know is that many Forex traders have in common their appetites for success, their diversified portfolio and their desire to take measurable risk.

7. Has anyone made money from FOREX trading?

Yes! Not only did people make money from Forex trading, but many also made a living!

Although most retailers are not as successful as professionals, this is mainly due to poor money management strategies and a lack of discipline in sticking to their strategies.

With 100% discipline and a good money management strategy, there is no reason for anyone not to have a chance to make money from Forex trading.

8. Is FOREX the best way to invest money?

It’s hard to say which will be the best, because there are so many ways to invest and it will largely depend on what the individual is familiar with; but it is one of the best, mainly because, unlike the stock / housing market – an investor can make money by selling / buying (or doing both – that is known as a hedge) regardless of how the instrument works.

It is possible to invest in the success of only one stock in the stock market – but in Forex you can also buy / sell a certain currency against another, and therefore always have the opportunity to make a profit.

Also, the fact that Forex is usually traded with leverage allows Forex trading to become one of the most volatile, and thus allows you to make higher profits (as well as losses) if traded correctly.

9. Foreign Exchange Market: What are the best forex blogs?

There are a number of places on the internet to find a great forex related blog, in fact many brokers also have their own blogs; but to remain impartial, I would recommend a non-broker blog. One of the most useful blogs for both inexperienced and veteran traders is babypips.com – there are regular updates on current market movements, as well as lots of information and opinions.

10. Why do individual investors usually lose money in Forex?

Most retail investors lose money on Forex. Although they can get the right training and educational material (or at least as some successful traders can), many often fail due to lack of money management rules and / or discipline. The latter is the most common.

The hardest thing about Forex is not making calculations or predicting where you will enter, how much you will trade, and / or what your limits will be; stays true to your strategy and continues with 100% discipline.

The main reason why people take on investment risks is the prospect of achieving a higher “realized” rate of return than can be achieved in a risk-free environment … ie a bank account with a compound interest rate FDIC.

• Over the past decade, such risk-free savings have been unable to compete with more risky environments due to artificially low interest rates, forcing traditional “savers” into mutual stock and ETF markets.

• (Funds and ETFs have become a “new” exchange, a place where individual stock prices have become invisible, questions about the company’s fundamentals are being ignored, and media executives are telling us that individuals are no longer on the exchange.)

Risk comes in many forms, but the main concern of a middle-income investor is “financial” and “market” risk when investing for income without the right mindset.

• Financial risk covers the ability of corporations, government agencies and even individuals to meet their financial obligations.

• Market risk refers to the absolute certainty that the market value of all marketable securities will fluctuate … sometimes more than others, but this must be planned for the “reality” and dealt with, never to be feared.

• Question: Is it the demand for individual stocks that raises the price of stocks and ETFs, or vice versa?

We can only minimize financial risk by selecting high-quality (investment rate) securities, diversifying them properly, and understanding that changes in market value are in fact “unprofitable”. By having a plan of action to deal with “market risk”, we can turn it into a real investment opportunity.

• What do banks do to depositors to get the amount of interest they guarantee? They invest in securities that pay a fixed rate of return, regardless of changes in market value.

You do not need to be a professional investment manager to manage your investment portfolio professionally. However, you need to have a long-term plan and know something about asset allocation … a often misused and misunderstood portfolio planning / organization tool.

• For example, the “rebalancing” of the annual portfolio is a sign of a dysfunctional distribution of assets. The distribution of assets should monitor the investment decision each year throughout the year, regardless of changes in market value.

It is also important to admit that you do not need high-tech computer programs, economic scenario simulators, inflation estimators or stock market forecasts to properly adjust yourself to your retirement income target.

All you need is common sense, reasonable expectations, patience, discipline, soft hands and a big driver. The KISS principle should form the basis of your investment plan; The complex gains epoxy that keeps the structure safe and reliable during development.

In addition, the emphasis on “working capital” (as opposed to market value) will help you in the process of managing all four major portfolios. (Business majors, remember PLOC?) Finally, a chance to use something you learned in college!

Schedule for Retirement

A retirement income portfolio (almost all investment portfolios eventually become a retirement portfolio) is a financial hero who appears in time to fill the income gap between what you need to retire and the guaranteed payments you will receive from your aunt and / or past. employers.

The strength of a superhero does not depend on the amount of market value; From the point of view of retirement, it is the income earned in a suit that protects us from financial mischief. Which of these heroes do you want to fill your wallet with?

• A $ 1 million VTINX portfolio that produces about $ 19,200 in annual spending.

• One million dollars, a well-diversified CEF portfolio with an annual income of more than $ 70,000 … even with the same capital allocation as the Vanguard Fund (less than 30% alone).

• The $ 1 million portfolio of GOOG, NFLX and FB does not make money at any cost.

I have heard that 4% withdrawal from the pension income portfolio is normal, but only if it is not enough to fill the “income gap” and / or if it exceeds the amount produced by the portfolio. If this “what if” is both true … well, that’s not a pretty picture.

Actual 401k, IRA, TIAA CREF, ROTH and so on. When you look at your portfolio and realize that it doesn’t even bring in nearly 4% of your real income, it gets ugly faster. Total income, yes. Realized income, ‘do not be afraid.

• Of course, your portfolio has been “growing” in market value over the past decade, but it is likely that no effort has been made to increase its annual revenue. Financial markets live by market value analytics, and as the market rises each year, we are told that everything is fine.

• What if your “income gap” is more than 4% of your portfolio; What to do if your portfolio produces less than 2% as Vanguard Retirement Income Fund; or if the market stops growing by more than 4% per year … you still run out of capital with a 5%, 6% or even 7% clip ???

The less popular (only available in individual portfolios) Closed End-to-End Fund approach has been around for decades and covers all “what ifs”. Together with Investment Value Shares (IGVS), they have a unique ability to take advantage of changes in market value in both directions, increasing the production of portfolio income with a monthly reinvestment procedure.

• Please note that monthly reinvestment should never become a DRIP (dividend reinvestment plan) approach. Monthly income should be combined for selective reinvestment, where the most “bang for money” can be obtained. The goal is to reduce the value per share and increase position earnings with one click of the mouse.

The retirement income program, which focuses solely on increasing market value, is doomed to ghettos, even at IGVS. All portfolio plans require the allocation of at least 30%, often more, but never less, income-oriented assets. Decisions regarding the purchase of all individual securities should support the transaction’s “growth goal and profit target” asset distribution plan.

• The Operating Capital Model is an automated pilot asset distribution system that has been tested for more than 40 years, which almost guarantees annual revenue growth when used properly for a minimum of 40% return.

The following reference points apply to the distribution plan of assets that manage individual taxable and deferred portfolios … Not 401k plans because they usually do not generate adequate income. Such plans should be broken down into the maximum possible security within six years of retirement and handed over to a personally administered IRA as soon as possible.

• The distribution of “income target” assets starts from 30% of working capital, regardless of the size of the portfolio, the age of the investor or the amount of liquid assets available for investment.

• Start-up portfolios (less than $ 30,000) should not have a capital component and should not exceed 50% until you reach six digits. From 100 thousand dollars (up to 45 years) to 30% income is acceptable, but not particularly profitable.

• At age 45, or $ 250,000, go for a 40% income goal; 50% at age 50; 60% are 55 years old, 70% are securities with a goal of income, which comes first after the age of 65 or after retirement.

• The income target portfolio of the portfolio should be invested as fully as possible and the determination of the distribution of all assets should be based on working capital (ie, based on the value of the portfolio); Cash is considered part of the capital or “growth target” distribution

• Equity investments are limited to CEFs with seven years of experience and / or “investment grade securities” (as defined in the Brainwashing book).

Even if you are young, you should stop smoking a lot and develop an increased income flow. If you continue to increase your income, the increase in market value (which you are expected to worship) will be taken care of. Remember, a higher market value can increase the size of the hat, but it does not pay the invoices.

So here’s the plan. Identify your retirement income needs; start your investment program with a revenue center; add stocks as you get older and your portfolio becomes more important; When your retirement age comes or your portfolio size becomes more serious, make sure your income is determined.

Don’t worry about inflation, markets or the economy … asset distribution will continue to move in the right direction as you focus on increasing your income each year.

• This is the main point of the whole “retirement income readiness” scenario. Each dollar added to the portfolio (or earned by the portfolio) is redistributed according to the distribution of “working capital” assets. When the distribution of income is above 40%, you will see a magical increase in income every quarter, regardless of what happens in the financial markets.

• Note that all IGVS pay dividends, which are also divided according to the distribution of assets.

If you are ten years of retirement age, an increased income stream is something you want to see. Applying the same approach to your IRAs (including 401k rollover) will generate enough revenue to pay the RMD (required mandatory distribution) and allow you to say unconditionally:

Neither stock market adjustments nor rising interest rates will have a negative impact on my retirement income; in fact, I will be able to improve my income in both environments.

Bitcoin peaked about a month ago, on December 17, reaching about $ 20,000. As I wrote, cryptocurrency is under $ 11,000 … a loss of about 45%. This is more $ 150 billion in lost market capital.

In the crypto-description, point to a lot of squeezing and gnashing of teeth. It’s a neck-and-neck, but I think the “I told you” crowd is better than the “excuses.”

Here’s the thing: it doesn’t matter if you don’t lose your shirt in bitcoin. Most likely, the “experts” you see in the press do not tell you why.

In fact, the collapse of bitcoin is wonderful … because it means that we can all stop thinking about cryptocurrencies altogether.

The death of Bitcoin …

In about a year, people will no longer talk about bitcoin in the market or on the bus. That’s why.

Bitcoin is a product of justified frustration. Its designer has openly said that cryptocurrency is a reaction to the government’s abuse of fiat currencies such as the dollar or the euro. It had to provide an independent, peer-to-peer payment system based on virtual currency, which could not be reduced because they had a limited number.

This dream has long been rejected in favor of raw speculation. Surprisingly, most people value bitcoin because it seems like an easy way to get more fiat currency! They don’t own it because they want to buy pizza or petrol with it.

As well as being a terrible way to do electronic transactions – which is painfully slow – the success of bitcoin as a speculative game has made it useless as a currency. If it gets so fast, why should anyone spend it? Who will accept it when it rapidly loses value?

Bitcoin is also a major source of pollution. 351 kilowatt-hours of electricity are required to process just one operation – which emits 172 kilograms of carbon dioxide into the atmosphere. This is enough to power a household in the United States for a year. To date, the energy consumed by all bitcoin mines can provide about 4 million US households a year.

Paradoxically, the success of bitcoin as before speculative game – not the intended libertarian use – involved government repression.

China, South Korea, Germany, Switzerland and France have imposed or reviewed bans or restrictions on bitcoin trading. A number of intergovernmental organizations have called for joint action to curb the bubble. The US Securities and Exchange Commission, which once seemed to approve bitcoin-based financial derivatives, is now hesitant.

And according to Investing.com: “The European Union is imposing stricter rules to prevent money laundering and terrorist financing on virtual currency platforms. It is also investigating restrictions on cryptocurrency trading.”

We may one day see a functional, widely accepted cryptocurrency, but it will not be bitcoin.

… But Increase for Crypto Assets

Good. Switching to Bitcoin allows us to see where the real value of crypto assets is. Here’s how.

You need a token to use the New York subway system. You can’t use them to buy anything else … though can Buy someone who wants to use the subway more than you.

In fact, if subway tokens were in limited supply, a live market could emerge for them. They can even trade at a price much higher than their original cost. It all depends on how many people there are I want to use the subway.

In short, this is the scenario for the most promising “cryptocurrencies” other than bitcoin. They are not money, they are icons – If you want, “crypto-tokens”. They are not used as a common currency. They are only good on the intended platform.

If these platforms provide valuable services, people will want those crypto-tokens, and that will determine their price. In other words, crypto-tokens will be worth as much as what people can get from their connected platforms.

This will make them real assets, with internal value – because it can be used to get something that people value. This means that you can safely expect to receive such a crypto-token or service flow. Critically, as we do when we calculate the price / earnings ratio (P / E) of a stock, you can measure future earnings against the price of the crypto-token.

Bitcoin, by contrast, has no intrinsic value. It has only one price – the price determined by supply and demand. It can’t generate future revenue streams, and you can’t measure anything like the P / E ratio for that.

One day it will be worthless, because it does not give you anything real.

Ether and Other Crypto Assets are the Future

Crypto-token ether is sure appears as a currency. Sold on cryptocurrency exchanges under the code ETH. Its symbol is the Greek capital letter Xi. It is extracted by a process similar to bitcoin (but less energy intensive).

But ether is not a currency. Its designers describe it as “a fuel for managing the distributed application platform Ethereum. It is a form of payment made to machines that perform the operations required by the platform’s customers.”

Ether tokens give you access to one of the most complex distributed computing networks in the world. It is so encouraging that large companies are coming together to develop practical, real-world uses for this.

Because most of the people who trade it don’t understand or care about its true purpose, the price of ether has been bubbling and bubbling like bitcoin in recent weeks.

But in the end, the airtime will return to a fixed price based on the demand for computing services that people can “buy”. This will represent the price real value can be evaluated in the future. For this, there will be a futures market and stock exchanges (ETFs), because everyone will have a way to assess its core value over time. Just like we did with stocks.

What will this value be? I do not have any idea. But I know it will be more than bitcoin.

My advice: get rid of Bitcoin and get ether on the next dip.

Currencies are traded in pairs

Forex trading is the simultaneous purchase of one currency and the sale of another. Currencies are traded through a broker or dealer and sold in pairs; for example, the euro and the US dollar (EUR / USD) or the British pound and the Japanese new (GBP / JPY).

When trading in the Forex market, you are buying or selling with currency pairs.

Imagine that all pairs are constantly “fighting” with each currency on their side of the rope. Exchange rates fluctuate depending on which currency is currently stronger.

Major Currency Pairs

The following currency pairs are known as “major”. All of these pairs contain the US dollar (USD) on one side and are the best-selling pairs. Trunks are the most liquid and best-selling currency pairs in the world: EUR / USD, USD / JPY, GBP / USD, USD / CHF, USD / CAD, AUD / USD and NZD / USD.

Major currency pairs or minor currency pairs

Currency pairs that do not include the US dollar (USD) are known as cross-currency pairs or simply “crosses”. Large crosses are also known as “minors”. The most actively traded crosses contain three major non-USD currencies: EUR, JPY and GBP.

Some of the Euro Crosses are: EUR / CHF, EUR / GBP, EUR / CAD, EUR / AUD and EUR / NZD.

The following are considered Yen crosses because they use the Japanese yen on the one hand: EUR / JPY, GBP / JPY, CHF / JPY, CAD / JPY, AUD / JPY and NZD / JPY.

Like Europe, the UK has its own crosses: GBP / CHF, GBP / AUD, GBP / CAD and GBP / NZD.

And here are some other currency pairs that are considered small: AUD / CHF, AUD / CAD, AUD / NZD, CAD / CHF, NZD / CHF and NZD / CAD.

Exotic couples

Exotic pairs are a major currency associated with the currencies of emerging economies such as Brazil, Mexico or Hungary. Some examples of exotic currency pairs: USD / HKD, USD / SGD, USD / ZAR, USD / THB, USD / MXN, USD / DKK, USD / SEK and USD / NOK.

It is not uncommon for spreads to be two or three times larger than EUR / USD or USD / JPY. Therefore, if you want to trade exotic pairs, do not forget to take this into account in your decision.

Because the foreign exchange market is so unusual, traders have found several different ways to invest in currencies. The most common of these are the forex spot market, futures, options and stock exchanges (or ETFs).

Spot Market

In the spot market, currencies are traded immediately or “on the spot” using the current market price. The most amazing feature of this market is its small spread and 24-hour operations. It is very easy to participate in this market, because accounts can be opened with an investment of up to $ 25! And most brokers usually provide charts, news and other information for free.

Futures

Futures are contracts for the purchase or sale of a particular asset for a specified fee on a future date. That is why they are called futures! Forex futures were developed a long time ago in 1972 by the Chicago Board of Trade (CME). Because futures contracts have certain standards and are traded through a centralized exchange, the market is extremely transparent and well regulated. This means that price and transaction details can be easily obtained.

Options

An option is a financial instrument that gives the buyer an opportunity or option, not an obligation to buy or sell an investment at a price determined at the expiration date of the option. If the trader “sells” the option, then he will be happy to order or sell the asset for a certain payment on the date of completion.

Like futures, options are traded on the Chicago Board Options Exchange, the International Stock Exchange, or the Philadelphia Stock Exchange. However, the disadvantage of forex options trading is that market hours are limited for certain options and liquidity is not as large as the futures or spot market.

Funds traded on the stock exchange

Stock exchanges or ETFs are the newest members of the foreign exchange market. The ETF may have a number of shares along with some currencies, which allows the trader to diversify with other assets. They are produced by financial institutions and can be traded on the stock exchange as shares. Like Forex options, the limitation of trading ETFs is that the market is not accessible at all hours. Also, because ETFs have shares, they are subject to trade commissions and additional transaction fees.

A few years ago, while asking questions at a meeting of the AAII (American Association of Individual Investors) in Northeast NJ, a comparison was made between the professionally managed Portfolio Investment Management (MCIM) portfolio and any of the several High Dividend Selection capitals. was taken. ETFs.

• My answer was: Which is better to be ready to retire, 8% comes out of your pocket, or 3%? Today’s answer will be 7.85% or 1.85%… and, of course, there is no similarity molecule between MCIM portfolios and ETFs or Mutual Funds.

I just picked up Google in four of the “best” high-dividend ETFs (closer than I’d normally worry about) and the high-dividend Mutual Funds group described in the same way. ETFs are “marked” by an index such as the Dividend Achievers Select Index, and consist of large US companies with a history of regular dividend growth.

Mutual Fund managers have been instructed to maintain a high-dividend investment vehicle and are expected to trade in accordance with market conditions; The ETF always owns every security in the underlying index, regardless of market conditions.

According to their publication numbers:

• The average dividend income of the four “best of 2018” high-dividend ETFs (i.e. spending money in your checkbook) … a break to catch your breath, 1.75%. Check: DGRW, DGRO, RDVY and VIG.
• Equally unpredictable income, the “best” Mutual Funds, even after slightly higher management fees, produce a large 2.0%. Take a look at these: LBSAX, FDGFX, VHDYX and FSDIX.

Now, how can anyone really hope to live on this income level with a portfolio of less than five or a million dollars? This cannot be done without selling securities, and if ETFs and funds do not rise to market value each month, the fall in fixed assets should simply occur on a regular basis. What to do if the market goes down for a long time?

The funds described may be the best in terms of “gross income”, but not from the income they produce, and I have yet to determine how either the gross income or the market value can be used to pay your bills. .without selling securities.

As much as I love stocks that produce high-quality dividends (Investment Rate Value Shares are all dividend payers), they are not the answer to “preparation” for retirement income. It is better for “dogs” to produce capital income, focus on income, there is an alternative; and with significantly less financial risk.

• Note that the “financial” risk (the chance that the issuing company will not make payments) is very different from the “market” risk (the chance that the market value will move below the purchase price).

For apple-apple comparisons, I chose the Closed End Fund (CEF), a four-capital venture from a larger universe that I have been following closely since the 1980s. Their average income (BME, USA, RVT and CSQ) is 7.85% and their payment history is on average 23 years. There are dozens of others that bring in more revenue than the ETFs or Mutual Funds listed in Google’s “best-class” results.

Although I firmly believe in investing only in dividend-paying stocks, high dividend reserves are still “growth-oriented” investments and cannot be expected to generate a reliable type of income from their “income target” relatives. . But capital-based CEFs are very close.

• When you combine these stock income monsters with similarly managed income-generating CEFs, you have a portfolio that can “prepare you for retirement income” … and that’s about two-thirds of the content of a managed MCIM portfolio.

When it comes to income generation, bonds, preferred stocks, notes, loans, mortgages, income real estate, etc. naturally safer and more profitable than stocks … as intended by the investment gods, if not by the Wall Wizards. Street. ”For nearly a decade, you’ve been told that about two or three percent productivity is the best product they can offer.

They lie through their teeth.

This is an example, as recently reported Forbes magazine Michael Foster’s article “14 funds crushing the vanguard and earning up to 11.9%”

Comparing both revenue and gross income, the article makes it clear that total revenue is meaningless when competition generates 5 or 6 times more annual revenue. Foster compares seven Vanguard investment funds to 14 Closed Last Funds … and underdogs win in each category: Total Stock Market, Small-Cap, Mid-Cap, Lar-Cap, Dividend Valuation, Growth in the United States, and US Value. His conclusion:

• “When it comes to productivity and annual revenue, None Winner of Vanguard Funds. Despite their popularity, despite the frenzy of passive indexing and the good mood, many want to believe the truth – the avant-garde is left behind. “

Hello! To prepare for retirement, upgrade your income program and don’t worry about changes in total income and market value. It’s time to put your portfolio in a position where you can say it unequivocally, without hesitation and with full confidence:

“Neither stock market volatility nor rising interest rates can have a negative impact on my retirement income; in fact, I’m in a perfect position to take advantage of all market and interest rate movements of any magnitude at any time … without interfering with the manager, except in emergencies.” “

Not yet? Try it.

* Note: No mention of any security in this article should be taken as a recommendation for any particular activity: buy, sell or store.