Deflation, Inflation, or a Rosy Road Ahead? (and What it Means for Your Family)
Next Event: “How to be a Steady Investor in Turbulent Times” Tuesday, March 16th at 7:30pm (one week from today!) 700 E. 11th St, Austin, TX 78701 Sign up Here Most economists today see us entering a protracted deflationary depression similar to the Great Depression. Others (including many of the most spectacularly successful investors of […]
The Importance of Value Creation
The other day, we began looking at value propositions within investment choices. Today, we’ll continue that with a few more examples. 1) Let’s say that you live in a hot real estate market and values have been driving up. You’re considering buying one of three properties. The first is a single family home in a […]
What is the Value Proposition of the Investment?
Is it important that value be delivered to the marketplace when you’re considering investing in a company or enterprise? Do you understand what value is being delivered to the market and why that value is beneficial to others? These are important questions that are too often ignored by investors. Too often we get mesmerized by […]
Who is Accountable if the Investment Goes Wrong (loss, default, etc.)?
When it comes to your investing, “Where does the buck stop?” Anytime you get involved with an investment, you do so because you believe that it will go well. One of the most important things to do when making any new investment decision is to think through all the possible negative outcomes so you have […]
Capitalizing on Unique Ability
We’re discussing ways to analyze investments. When discussing leverage, we touched on this next point, but let’s take it further. God made each person in this world absolutely unique. When a unique individual applies what he has been given in an effective way to the marketplace, something special is created. (Obviously it takes more than […]
Cash Flow
The only true way to know that an investment is worthy of your capital is to measure the cash that it produces. You might have savings (such as gold or silver) that produce no cash flow for you, but when analyzing an investment you need to be very aware of its cash flow potential. If […]
Two Types of Leverage
1) Leveraging relationships – Let’s say that you have assets to invest, but aren’t sure what to invest in. You have a friend who has expertise in a particular field but can’t capitalize on it as much as the potential is there for without more capital. You can each leverage what the other has to […]
When Analyzing an Investment, What are the Underlying Economic Principles that Make it Work?
Every investment opportunity, financial product, or business opportunity must take advantage of economic principles to be successful. It’s important for you to understand what these are so you have a basis for knowing the dynamics involved in bringing success to your overall financial planning. Whether you’re looking at a real estate, stock, bond, gold, silver, […]
How Do You Decide if an Investment is Right for You?
It’s easy to decide not to invest in an investment opportunity if it doesn’t sound good right off that bat. But what if it does sound good? Most investments proposed to you will likely sound compelling or the person telling you about it wouldn’t be doing so. So how do you decide if you should […]
How Does a Policy Loan Work?
When you take a policy loan, most companies will immediately charge you the cost of interest for the rest of your policy year. In other words, if you are 3 months into a new policy year and take a loan, you will be charged up front for nine months of interest. If you decided to […]