If You Are Overthinking About Investing and Time is Passing By, This is What Happens

Friends, Colleagues, and even Family Members ask me, “Joey, Why are you so committed to investing?”

It is a question that makes me both happy but also sad.

Happy because everyone around me sees my commitment to my financials. But also Sad because they still don’t understand what moves me.

My goal is that by the end of this article, you will understand my point of view towards the future and take action to help yourself along the way.

I got involved in the markets during the 2008-2009 crash. Believe me or not, it was one of the best times to get involved in the markets because it quickly taught me that it was not easy, especially if you were a trader more than an investor.

Although trading is exciting, it takes time to analyze the markets daily. Try to find what is moving and catch the perfect windows to jump in and out. Unfortunately, it is an ideal recipe for burning out quickly.

On the other hand, let’s say that I’m lazy. I don’t want to be stuck to my computer all day looking for opportunities. So use that time in other productive activities while the markets do their thing, and you still get paid for being patient.

Be part of the disruption and get free stocks when you open a Robinhood account. Also, enjoy your fractional shares and commission FREE!

To answer the first question, “why am I so committed,” is because I realized the earlier you begin investing, the sooner you can reach your goal and the less time you have to spend working for someone else. Understand that I said “Investing” and not “Trading.”

Most financial advisors teach individuals about the 4% rule at retirement. Unfortunately, that is a horrible strategy because it involves withdrawing 4% of your capital to live and cover expenses every year. As a result, most people will have little to no money towards the end of their years.

It puts a severe amount of pressure on their kids and family members. Now, they have to cover their expenses and yours as well.

Who wants to put that pressure on their kids?

I’m pretty sure no one does. That is why I have an alternate strategy that will work wonders for everyone.

The idea is to invest in assets that will cash flow enough money to cover your expenses while leaving your capital intact. Then, when we die, our kids or family members can inherit that capital (investments) and make their lives easier.

With Fundrise, you can become a digital landlord anywhere in the United States without the hassle.

How it works:

Although there are several cash flow assets, we will concentrate on dividend-paying stocks and ETFs.

Why?

Because when you invest in dividend-paying stocks and ETFs, you have several ways of making money. The most common one is capital gains as time passes. If they increase their dividends with time, your cash flow also increases. You can also learn how to sell covered calls and other income strategies to bring even more money each month.

While all of this is happening, you are not depleting your capital. Meaning your net worth will never decrease. On the contrary, you can keep increasing your net worth while living the life you want.

So, What happens if you keep postponing your investing?

In simple words, you won’t have enough cash flow to retire comfortably.

One of two things happen:

1. You can’t retire; hence, keep working longer.

2. You have to increase the money you invest to catch up.

With Robinhood you can get cash dividends from well-known and established companies like Coca-Cola (KO).

Let’s look at an example:

Mimi and Joey both begin with a $3,000 initial investment. After that, both invest $300 monthly and receive an average annual return of 8.5%. Mimi is 20 years old, while Joey is 30 years old.

In 10 years, they both have $60,826.

In 20 years, they both have $190,935.

In 30 years, they both have $485,107.

And this is where things take a turn. Joey was 30 when he began investing and is now 60 years old and ready to retire.

Meanwhile, Mimi has another 10 years of compounding before she turns 60 years old, which will end up with a portfolio worth $1,150,226.

Who will have a better life using the 4% rule?

If they both use the 4% rule at retirement, Joey will be receiving $19,404 from his withdrawals. On the other hand, Mimi will be receiving $46,009 for her withdrawals.

You can say that Mimi will have a better life because she will receive more than double what Joey will receive. He will have to figure out how to live on $19,404 a year. However, both of them will run out of money by age 85.

Why?

Because regardless of how big your portfolio is, if you withdraw 4%, you will deplete your account in 25 years.

Just do the math:

Joey – $19,404 * 25 years = $485,100

Mimi – $46,009 * 25 years = $1,150,225

In the end, neither one will have anything to give to their kids, and if they live past their 85 birthday, their families will have to support them for the rest of their lives.

From the comfort of your home, invest anywhere in the united states with Fundrise.

What if they cash flow instead of withdrawing capital?

Now, this is where my strategy beats the financial advisors. Instead of withdrawing capital, we can build a dividend-paying stock and ETFs portfolio. The investments can be paying 3%-4% today, but if they increase their dividend payouts yearly, by the time you are 60 years old, you could be receiving dividend payouts well above 6%-8%.

Using this conservative estimate, Joey could receive anywhere between $29,106 to $38,808 in dividends. But, of course, it could be higher if Joey learns how to sell covered calls or other income strategies.

As for Mimi, she could receive between $69,013 to $92,018 in dividends. But, again, it could be higher if she learns the strategies previously mentioned.

I think both of them could live comfortably with those amounts, and the best part is they will never run out of money. Their portfolios will remain the same or even increase. Then, when their time is up, and they move on to a better place, their families will inherit their money, or they could give their money to charity.

It is your money, so do with it what you feel is the right thing to do.

Sin companies that pay your expenses and more.

Key takeaways:

  • The sooner you begin, the sooner you will reach your goals.
  • Concentrate on cash flowing assets instead of accumulating money to withdraw in retirement
  • Teach your kids and family members, so they too have a better life
  • The 4% rule is widespread; however, it is flawed
  • The more you postpone investing, the more money you will have to invest in catching up.
  • Begin your investing journey today

Note:

If Joey wants to have the same amount as Mimi by age 60, he will have to invest $750 instead of $300. That leaves Joey with $450 less each paycheck. So don’t be like Joey. Start now!

Now, begin your Road to Wealth!

Leave your comment below. If you liked it, pay it forward. Please share it on social media and help others become successful as well. Your success will be the result of two things: Knowledge and Action.

Follow me on TWITTER, PINTEREST, INSTAGRAM, LINKEDIN, and FACEBOOK for more posts and updates. You can also reach me here with any questions.

If you are not receiving dividends, you are missing out!

DISCLAIMER: Please read our disclosure policy here. This post contains affiliate links, and I earn from qualifying purchases at no cost to you. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. Road-to-wealth.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles, and other features are for educational purposes only and should not be construed as investment advice. Information for any trading observations is obtained from sources believed to be reliable. Still, we do not warrant its completeness or accuracy or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk, and it is your sole responsibility to evaluate the information’s accuracy, completeness, and usefulness. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein.

Which Oil Stock Is A Better Buy? Exxon Mobil (XOM) or Enbridge (ENB)

Due to a structural supply deficit and the impact of the Russia-Ukraine war, oil prices have risen of late. Exxon Mobil (XOM) and Enbridge (ENB) are two leading names.

Although both companies are in the oil and natural gas sector, their business models are different.

On the one hand, Exxon Mobil (XOM) concentrates on searching, producing, processing, and selling oil, natural gas, and derived products, including gasoline and chemicals. They have a straightforward correlation to supply/demand for the products and price changes in the mentioned commodities.

On the other hand, Enbridge (ENB) facilitates the transportation and storage of oil, natural gas, and related products. They have a more stable infrastructure with fee-based contracts. They get paid a fixed amount for transporting a specific volume of these commodities through their pipelines. As a result, their exposure to the shifts in the price for these commodities is relatively low compared to Exxon.

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Both companies have been great for income investors. Exxon offers a 4.4% dividend. Meanwhile, Enbridge offers a hefty 6% dividend. In addition, both companies are Dividend Aristocrats as Enbridge has raised dividends for 27 years in a row, while Exxon has done the same for 39 years.

One concern with Enbridge is their payout ratio running at 119%. They pay a $2.69 dividend but only have an EPS of $2.25. It could be trouble in the future if they don’t increase their earnings. However, their annualized dividend growth is currently 5.48% since 2000. Their 5-year growth rate is 10%.

Meanwhile, Exxon’s payout ratio is only 65% leaving plenty of room for future increases. Their current dividend payment is $3.52 with an EPS of $5.38. Their annualized dividend growth sits at 3.20%, with 5-year dividend growth of 3%. Also, their exposure to higher oil prices could help them ramp up their dividend growth in the coming years.

Enbridge infrastructure is more of a defensive business, helping them to remain profitable during hard times like during the Covid-19 pandemic. During this time, Exxon saw its earnings drop to negative numbers in Q2 and Q3 in 2020.

Enbridge proved their excellent resilience during these challenging times, seeing their cash flow per share rise while Exxon struggled during the same period.

With Fundrise, you can become a digital landlord anywhere in the United States without the hassle.

Fast forward to the current environment, and Exxon is forecasted to grow their earnings per share by 50%, while Enbridge’s forecast is 7% this year.

Although renewable energy is experiencing growth worldwide, the consumption of oil and natural gas will likely keep rising in the coming years. The IEA forecast natural gas demand to grow by 30% by 2040. That gives investors almost two decades of growth still in the tank. Everything else after that will largely depend on where the world is moving to as far as consumption goes.

Global oil demand will continue to grow through 2030, at least by the IEA forecasts. The trend gives the energy industry a solid outlook for the next couple of decades.

Which stock is a better buy?

Both stocks could easily continue to outperform the broad market as long as the pricing environment for energy remains as is.

If you want a significant oil price exposure and are willing to remain calm when the supply/demand for oil is down, meaning that prices could decline, leading to lower profitability for Exxon, then Exxon (XOM) is your pick.

If you want less exposure to oil prices but instead a more stable and reliable cash flow offering a solid dividend growth, then Enbridge (ENB) is your pick.

Ultimately, suppose you want exposure to both. Then, you can either buy both or something like the energy ETF (XLE), a basket of energy companies with an annualized dividend growth of 10.31% and a current dividend yield of 4%.

Now, begin your Road to Wealth!

Leave your comment below. If you liked it, pay it forward. Please share it on social media and help others become successful as well. Your success will be the result of two things: Knowledge and Action.

Follow me on TWITTER, PINTEREST, INSTAGRAM, LINKEDIN, FACEBOOK for more posts and updates. You can also reach me here with any questions.

With RobinHood you can get cash dividends from well-known and established companies.

DISCLAIMER: Please read our disclosure policy here. This post contains affiliate links, and I earn from qualifying purchases at no cost to you. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. Road-to-wealth.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles, and other features are for educational purposes only and should not be construed as investment advice. Information for any trading observations is obtained from sources believed to be reliable. Still, we do not warrant its completeness or accuracy or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk, and it is your sole responsibility to evaluate the information’s accuracy, completeness, and usefulness. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein.

GAMESTOP (GME) CONTINUES TO COLLAPSE; IN WHICH DIRECTION IS THE COMPANY GOING?

Key points:

– Earnings fall short

– Company “transforms” as investors pray for a better future

– Negative sentiment after having doubts in creating a market for NFT’s

Since it became a social media meme, GameStop (NYSE: GME) company has been a highly volatile stock. However, without any solid foundation in terms of financial fundamentals, the shares survive because of investors who continue to create an advertising bubble on social media.

With RobinHood you can get cash dividends from well-known and established companies like Coca-Cola (KO).

Since June 2021, the shares have been steadily down. The company reported a net loss of $141M, which translates to a loss of ($1.86) per share—falling well short of Wall Street projections of just ($.85) per share.

The company has a questionable direction and continues to lose value while there are no signs of improvement soon. The company says it is transforming itself into a technology company obsessed with its consumers. Still, nothing happens on the surface.

When they publicly announced their profit/loss, they talked about the metaverse and NFTs as possible solutions.

Wedbush analysts argued the opposite. They were saying that it would have limited success. They also cut their price projection with a target between $45 and $30.

From the comfort of your home, invest anywhere in the united states with Fundrise.

Today after being worth over $300 in the summer of 2021, they are worth just $90. Not only that, but with this cut in projection, investors are eyeing more losses shortly.

The company has not adapted to the new digital world and may disappear just like BlockBuster did a few decades ago.

They may survive, but their options are limited, and their chances run out.

When the rest of the investors wake up to reality, there’s a very high probability that we’ll see GameStop back trading in the single digits as it did between 2019 and 2020.

Be very careful where you invest your money and seek information before investing. Please do not get carried away by social media and their advertising.

Now, begin your Road to Wealth!

Leave your comment below. If you liked it, pay it forward. Please share it on social media and help others become successful as well. Your success will be the result of two things: Knowledge and Action.

Follow me on TWITTER, PINTEREST, INSTAGRAM, LINKEDIN, FACEBOOK for more posts and updates. You can also reach me here with any questions.

DISCLAIMER: Please read our disclosure policy here. This post contains affiliate links, and I earn from qualifying purchases at no cost to you. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. Road-to-wealth.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles, and other features are for educational purposes only and should not be construed as investment advice. Information for any trading observations is obtained from sources believed to be reliable. Still, we do not warrant its completeness or accuracy or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk, and it is your sole responsibility to evaluate the information’s accuracy, completeness, and usefulness. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein.

BECOMING A MILLIONAIRE FROM NOTHING: PART I

Hi all, Joey Ortiz here.

Welcome back to this week’s edition.

Let’s chat about becoming a millionaire, shall we? You may be asking, “Joey, what’s the point?”…

The point is that you need goals. Becoming a millionaire is one of the most common goals when planning to build long-lasting wealth. You are looking forward to building wealth for you and future generations. If you do it right, at some point soon, you will become a millionaire, and then some.

I did not say “Rich” because you can win the lottery tonight, be “Rich” overnight, and be broke again in a year or two. It would be best if you learned how to build and create wealth. It all starts with financial literacy. A knowledge mix of investing and taxes. Yes! Taxes! It is imperative to learn how to keep what you earned and protect your assets.

It starts slow but then something unique happens. Not only snowball into big numbers as the years’ pass, but if something unfortunate happens, like losing it all, you won’t “sweat it” because you know how to build wealth, and you can do it again. But, this time is even faster because you will have something this time that you didn’t the first time around, experience!

Apple (AAPL) is one of the biggest holdings of the Nasdaq.

One way of becoming a millionaire over time is investing in dividend stocks. Many of you ask the same question: Can you live off dividends? YES! Yes, you can. You need to understand that this strategy takes time because you have to accumulate shares for decades. It’s not a get-rich-quick scheme. It takes time, knowledge, and planning.

Why dividend-paying stocks? Because it doesn’t take much time out of your daily life. It’s passive income. All you need to do is set a specific amount of money once a month and invest it in your favorite companies. Then, keep going about your life. Then the company will share part of their earning profits with you as a dividend for your time and investment. You are a partner, and you will profit just like all the big investors without putting in any work at all.

It doesn’t matter if you have a raw platform like RobinHood, or something more sophisticated like TDAmeritrade, Schwab, or Fidelity. The reason is you will be buying once or twice a month and not looking to sell ever! Instead, you want to accumulate for the long term. In that case, the platform makes no difference for this strategy.

Things to keep in mind:

1. How much money a month is required to cover your expenses and have some extra money for fun?

2. How to choose which company to invest in? Look under the company’s hood (aka fundamentals).

3. Compare companies long term growth

From the comfort of your home, invest anywhere in the united states with Fundrise.

HOW MUCH?

Starting point. It would help if you did your math. Each one of you is living a different reality. Numbers will vary greatly depending on your habits, income, and current location.

As an example, let’s say that your expenses amount to $2,500 a month, and you will live comfortably with an extra $1,000 for yourself. That means that you need to make at least $3,500 a month or $42,000 a year.

How much will that cost? It depends on the dividend paid by the company and the price you pay for the shares.

As an example, let’s use a very well-known retail store, Walmart (WMT).

Dividend = $2.16

Price = $147 (as of Dec 12, 2020)

Dividend Annualized growth = 12.19%

Dividend Yield = 1.47%

$42,000 / 2.16 = 19,445 shares needed of WMT to cover your yearly expenses.

The current yield of 1.47% will not suffice. It doesn’t even beat inflation.

The annualized growth doesn’t look bad, but the current yield of 1.47% projects to grow to 4.64% in 10 years. Not bad, but there are plenty of better choices.

And if you would buy it all right now, it would cost you a total of $2,858,415 (current price of $147 * 19,445 shares). So unless you have $2.8 million lying around, let’s look for something better.

Listen, when you are a beginner, you may doubt the strategy because all you are about to see is that you received $1.50 or some ridiculous number like that. You will not be even close to where you need to be when you first begin. But you will be there eventually. The critical factor, you need to start! The sooner you begin, the sooner you can get there. It’s like needing to walk somewhere. If you stay on your couch, you won’t make it. But if you put your shoes on and start walking, you will get there eventually. Take action!

Divide that into three steps:

1. Decide if you want to live off dividends and take on this journey; if you do, go to #2.

2. Create your investing plan (includes how much money you will invest monthly and in which companies)

3. Take action and execute your plan!

Amazon (AMZN) is one of the fastest-growing companies in the world.

HOW TO CHOOSE?

Point number two. How do you choose where to put your money? Ok, there are thousands of options for you to choose from in the stock market. Not what you wanted to hear? Sorry, but it’s the truth. So what now?

A quick but not always beneficial way of choosing, only invest in companies that you shop at or know well. That will probably be something like Apple (AAPL), Walmart (WMT), Walgreens (WBA), Verizon (VZ), among many others.

Is it wrong to buy what I know? No, it’s not. If that is the route you want to go, so be it. Just like everything in life, we have to live with our choices.

The good thing is you know and trust these companies. The bad thing is they may not be offering you the best bang for your buck.

Alright, smarty-pants, what other choice do I have? Not the quick way, that’s for sure.

Look under the hood—the company’s fundamentals.

Use a free stock screener like Finviz or BuyUpside (Dividend Growth Rate Calculator – See How Fast Dividends Grow) to look at your favorite companies or not so famous. You never know what you might find. You will be amazed when you find out that your favorite companies are probably too overpriced, and you should invest your money somewhere else.

I use Finviz to look at the current numbers of a company like:

          – price

          – current EPS

          – current Dividend and Dividend Yield, Dividend Payout

          – ROE

          – Current Ratio, Quick Ratio

          – Long term Debt / Equity, Debt / Equity

          – Forward P/E, PEG, Price to Sales (P/S), EPS past five years.

From BuyUpside, I find the Annualized Dividend Growth of stock to project into the future using that same growth.

COMPARE COMPANIES LONG TERM GROWTH

Point three. Collect the information to compare companies and their growth. Then, plug in the numbers into an Excel Sheet, and formulate it to highlight only the best. In the end, add up which company highlighted the most, and those companies are usually the ones to choose to invest in because they provide the best cushion from all angles.

In conclusion, I’m looking for a company that can provide an excellent Return on Equity. Has sufficient cash to pay their bills and expenses, has medium to low debt, a good dividend yield now that can beat inflation of 3.5% on average, and sustainable growth for the future. So even if the price doesn’t go anywhere for ten years, I can still receive more in dividends, thanks to their growth. In addition, look for positive earnings growth into the future and growing sales.

Now, begin your Road to Wealth!

Leave your comment below. If you liked it, pay it forward. Please share it on social media and help others become successful as well. Your success will be the result of two things: Knowledge and Action.

Follow me on TWITTER, PINTEREST, INSTAGRAM, LINKEDIN, FACEBOOK for more posts and updates. You can also reach me here with any questions.

DISCLAIMER: Please read our disclosure policy here. This post contains affiliate links, and I earn from qualifying purchases at no cost to you. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. Road-to-wealth.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles, and other features are for educational purposes only and should not be construed as investment advice. Information for any trading observations is obtained from sources believed to be reliable. Still, we do not warrant its completeness or accuracy or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk, and it is your sole responsibility to evaluate the information’s accuracy, completeness, and usefulness. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein.

Dividends Up and Dividends Down – What Are You Holding?

As investors, we have to keep an eye out for our holdings. Everyone is happy when things are good, but when things go south, everyone runs for the hills. As long-term investors, we don’t worry about the fluctuations in the stock market, but we do need to be aware of fundamental changes.

Dividend increases are one of my favorite strategies (Dividend Growth Investing). But on the other hand, dividend cuts are one of the first red flags and early signs to show that a company may be in financial trouble.

Another red flags to consider are low amounts of cash available. Again, you can use Finviz to find the current and quick ratios. A metric of 1 or higher is usually a sign of enough money to cover expenses. However, that also depends on their debt.

Starbucks (SBUX) is Shaquille O’neal’s greatest regret for not investing early.

Debt to Equity and Long-term Debt to Equity is preferable under 1 to show a low debt. It is all dependable on the industries and sectors. Some sectors run with high debt, while others may have zero debt.

In my book, as long as the quick ratio and current ratio are higher than debt to equity and long-term debt to equity, it is good enough for me.

Without further ado, let’s take a look at the dividend increases and dividend cuts for the first 18 days of February 2022.

Dividend Increases

First list by Joey Ortiz
Second List by Joey Ortiz
Third List by Joey Ortiz
Fourth List by Joey Ortiz

Dividend Decreases

Decrease List by Joey Ortiz

The stock market will move up over time. However, that doesn’t mean we have to marry a stock forever. Some companies manipulate their books to look better than they should show, but that only lasts for so long until they can’t do it anymore. The best example for all investors was Enron. You can Google information on all the tricks they did until going bankrupt.

We can ride the ship up but should never ride it all the way down. We are not the captains of those ships. We are captains of our investment accounts, and that is all we care about now and in the future.

Stay vigilant and protect your capital.

Now, begin your Road to Wealth!

Leave your comment below. If you liked it, pay it forward. Please share it on social media and help others become successful as well. Your success will be the result of two things: Knowledge and Action.

With Fundrise you can become a digital landlord anywhere in the United States, without the hassle.

Follow me on TWITTER, PINTEREST, INSTAGRAM, LINKEDIN, FACEBOOK for more posts and updates. You can also reach me here with any questions.

DISCLAIMER: Please read our disclosure policy here. This post contains affiliate links, and I earn from qualifying purchases at no cost to you. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. Road-to-wealth.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles, and other features are for educational purposes only and should not be construed as investment advice. Information for any trading observations is obtained from sources believed to be reliable. Still, we do not warrant its completeness or accuracy or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk, and it is your sole responsibility to evaluate the information’s accuracy, completeness, and usefulness. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein.

How Does Dollar-Cost Averaging works

The amount of financial terminology is enough to send anyone into a panic when you enter the world of investing. So today, we will cover Dollar-Cost Averaging.

Long-term investors often use the term, especially when the markets begin to pull back or fall entirely on its face.

Readers keep asking about it, and the question often goes something like this:

“Dear Joey,

I keep hearing about dollar-cost averaging on my investments, but I’m new to investing and don’t understand it. So how does it help me in the long run?”

Zoom (ZM) is one of the darlings during the pandemic.

What Is Dollar-Cost Averaging?

Simply put, it means that you set an amount of your paycheck to invest itself automatically, or you can do it manually as well. In addition, the strategy takes advantage of the stock market fluctuations. Every time you buy shares, the overall cost will average out between all your shares while the price goes up and down.

Let’s analyze the picture below:

Table Summary of Dollar-Cost Averaging

This person set a monthly amount of $100 (Set amount column) to invest at the beginning of every month (Date column). The stock they invested in fluctuated between $20 and $25 during the year (Stock price column). And the last column shows how many shares this person was able to buy each month.

At the end of the year, the person bought a total of 54.41 shares (Total column) while investing $1,200. When you have the two numbers, you can divide the total amount ($1,200) by the total amount of shares (54.41), and you get the number $22.06.

That means that the average cost of all your shares is $22.06. So you effectively average up and down throughout the year to not buy at the top or the bottom.

With Fundrise you can become a digital landlord anywhere in the United States, without the hassle.

Advantages of Dollar-Cost Averaging

When you buy with a set amount throughout the year, you ensure to not overpay for your shares. The market mainly moves upward, but it also has down moves. Therefore, they provide excellent opportunities for you to buy more shares at lower prices. In contrast, you buy fewer shares when the prices are high.

Things to Consider

Dollar-Cost Averaging is an excellent strategy if you are a long-term investor. You are not trying to time the market. Instead, you want to have time in the market while accumulating shares and taking advantage of the famous “the average return over the last 100 years is 10%”.

That doesn’t mean that the market goes straight up each month to end at 10%. Instead, the market fluctuates up and down but, in the end, finishes on average with a 10% increase.

Overall, it is a powerful strategy when you don’t want your money to sit on a bank account with a bit of interest of less than 1%. Instead, you will grow your account and net worth slowly but surely. If you are new to investing or don’t have much time to analyze the markets, consider this a great strategy.

Now, begin your Road to Wealth!

Leave your comment below. If you liked it, pay it forward. Please share it on social media and help others become successful as well. Your success will be the result of two things: Knowledge and Action.

Follow me on TWITTER, PINTEREST, INSTAGRAM, LINKEDIN, FACEBOOK for more posts and updates. You can also reach me here with any questions.

DISCLAIMER: Please read our disclosure policy here. This post contains affiliate links, and I earn from qualifying purchases at no cost to you. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. Road-to-wealth.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles, and other features are for educational purposes only and should not be construed as investment advice. Information for any trading observations is obtained from sources believed to be reliable. Still, we do not warrant its completeness or accuracy or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk, and it is your sole responsibility to evaluate the information’s accuracy, completeness, and usefulness. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein.

NEW YEAR, NEW RECORDS! 2022 STARTS WITH A BANG! HERE IS YOUR NEXT MOVE.

The S&P500 (SPY) had a solid finish to 2021. It rallied on Monday into all-time highs and set the highest point on Thursday, 30 Dec 21. On Monday, 3 Jan 22, the market opened positively, ending the day higher and within 1 point of yet another record.

The cheerful open to the year indicates no re-test of the newfound support (former resistance) around the 471 area. Instead, everything points to the trend resuming to the upside into uncharted territory. It looks like it will take much more than the Fed printing money, another pandemic, or a new crisis. Markets seem unstoppable.

Many new investors are afraid of jumping in at the wrong time, which is understandable. However, the markets are breaking record after record and showing no signs of slowing down.

AMAZON (AMZN) keeps growing year after year. Your account can too!

What to do next?

There are many ways to skin a cat. It’s just a saying people. It’s not literally. However, we are never short of strategies and possibilities as traders and investors.

A. Test the Waters

If you are brand new to investing, I suggest NOT jumping with both feet. Test the waters first. The idea here is to invest half of what you have available. There are two reasons for that:

          1. By investing in small portions, you are not risking all of your capital, but at the same time, if the markets keep pushing higher, you are participating and adding gains to your portfolio.

          2. With the same token of investing small portions, if the market decides to pull back and take a breather, you will have capital free to be deployed as you wish and at a discount. Who doesn’t like discounts? I do!

B. Learn to Sell

A strategy I use is selling options. I like to sell options on volatile stocks and also on support areas. In my case, the idea is NOT to get assigned the shares. Instead, collect premiums with each sell, rinse and repeat.

If you want to own shares on a specific stock, you sell the options at the price you are comfortable buying it. Keep in mind that each contract holds 100 shares when you sell options.

For example, You don’t mind owning AT&T (T) shares at a $20 strike price. Therefore, you will sell the $20 put option.

With Fundrise you can become a digital landlord anywhere in the United States, without the hassle.

What happens?

1. Next, multiply the strike price by 100 shares, which will give you the amount needed in cash. To sell this put option, you need to have in your account $2,000 available (not invested) per each contract you plan on selling. This cash will be used as collateral if you get assigned, and this will be the money used to buy those shares. The same thing happens with each option you sell regardless of the stock.

2. Once the money is available and ready to go, one of these two possibilities will occur:

          – The stock price falls under the option strike price, and you get assigned those shares. In this case, you will buy 100 shares at $20.

          – The stock price remains above the option strike price, and the option expires worthless. Therefore, you keep the premium while releasing the cash held as collateral.

Keep in mind this is an investing mindset. We are not here to jump in and out daily or intra-day. If that is your mindset, you are a trader and not an investor.

STARBUCKS (SBUX) can pay for your coffee with their profits. What are you waiting for?

TRADERS

As a trader, you need momentum. So I don’t recommend any newbie to trade first. Instead, start with the basic easy steps of investing, then move up the latter.

If you are a little more experience, then look for weekly breakouts. For example, during the weekend, change the setting on your chart to weekly. Then, set an alert at the high of the week that just closed. If you are doing it during the week, ensure to set the alert at the high of last week.

Once the alert goes off that a break out of that high occurred, you can take a position with shares, you can sell puts, or you can buy calls. The choice is yours.

Ensure to preset your stop-loss price (area) and your targets.

Are you going to sell all of it once you hit an area?

Are you selling half and riding the other half for more profits?

You can also sell 1/3 of the position at target #1 (T1), sell another 1/3 at a higher target #2 (T2), and let the last 1/3 ride as high as possible for maximum profits.

As I said, there are many ways to skin a cat. First, you need to figure out which strategy makes more sense. Not all methods work for everyone. Please choose the one you like most and become a master at it. Once you become a master, you start adding to your toolbox with new strategies in a few years. Join groups and share your experiences. Also, listen to others and learn from their mistakes.

Now, begin your Road to Wealth!

Leave your comment below. If you liked it, pay it forward. Please share it on social media and help others become successful as well. Your success will be the result of two things: Knowledge and Action.

Follow me on TWITTER, PINTEREST, INSTAGRAM, LINKEDIN, FACEBOOK for more posts and updates. You can also reach me here with any questions.

From the comfort of your home, invest anywhere in the united states with Fundrise.

DISCLAIMER: Please read our disclosure policy here. This post contains affiliate links, and I earn from qualifying purchases at no cost to you. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. Road-to-wealth.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles, and other features are for educational purposes only and should not be construed as investment advice. Information for any trading observations is obtained from sources believed to be reliable. Still, we do not warrant its completeness or accuracy or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk, and it is your sole responsibility to evaluate the information’s accuracy, completeness, and usefulness. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein.

How Do Dividends Work? Explained

Companies that pay dividends more often do so in cash. It is a way of generating passive income. Yes, my dear readers, although cash dividends are the most popular and recognized type, there are other dividends besides cash.

These include dividends on stocks, bonds, property, and scrip (promissory notes). These are more likely to be used when acquisitions of other companies or in particular situations.

When companies pay cash dividends, they are sharing the company’s retained earnings with their investors. Cash payment will be deposited automatically in the accounts of each investor without requiring any action on their part. So if you invest in a company that pays dividends, you do not have to do anything to receive it. Your broker will do everything for you. You will have 2 options: receive the cash and use it as you think best, or activate what is known as (DRIP), a Dividend Reinvestment Plan that automatically buys you more shares in the company you are investing in.

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How do you know which one suits you?

Very simple, if you are retired, with a good pension check and a huge investment account, accept the dividend as cash and enjoy it while supplementing your passive income.

If you still work and have a small account that cannot live on those dividends, enable your DRIP and not touch it until you retire.

Important dates:

To know if you will receive the dividend or not, you have to understand the following dates.

Declaration Date: this is the day when the board of directors sits down and decides to announce the amount that each investor will receive per share and the ex-dividend date. Please understand that this date is just an announcement of what will happen. You still do not have the right to receive the dividend.

For example, the local newspaper has a page announcing that they will give toys to the children present on Saturday. Just as the child must be present on Saturday to receive his toy, you will receive your dividend if you owned shares in the company on the announced day.

Ex-Dividend Date: this is the most important date apart from the payment date. To receive the dividend, you have to own shares by this date. Therefore, anyone who wishes to receive the dividend must purchase their shares BEFORE this date. At least the day prior since this is the first day that the shares start trading without the right to receive the dividend. Every day the market opens, shares will go up and down in price, but this date is the one that separates the line from each other, whether you receive the dividend or not.

For example:

The directors of Apple (AAPL) announced on October 28, 2021, that they would pay a dividend of $0.22 per share. The ex-dividend date was November 5, 2021, payable on November 11, 2021.

Anyone who wanted to receive this dividend had to buy their shares BEFORE November 5, 2021. If you purchased on November 5, you would not be entitled to anything since the directors announced that this would be the ex-dividend day. In other words, everyone purchasing from this date forward would not be entitled to the dividend until a new announcement.

With Fundrise you can become a digital landlord anywhere in the United States, without the hassle.

Record Date: is the date on which you must be a shareholder to receive the dividend. It is usually one or two days after the ex-dividend date. We do not do anything with this date. It is not as important to us as for the directors since this is the list of shareholders that will appear to receive the dividend.

Payment date: It is the day you will receive your money. This date varies between companies. It can be from 1 week to a month after the ex-dividend date. Ensure to verify the information so you don’t miss your payday.

Let’s practice:

Cisco Systems Inc (CSCO) announced a $0.15 per share dividend with an ex-dividend date of January 4, 2022, payable on January 21, 2022.

1. If you have 100 shares, how much will you receive in dividends?

2. When is the last day you can buy shares and receive dividends?

3. When will you receive your $15?

Bank of America (BAC) has gained over 200% in the last 5 years.

Summary:

1. You will receive $15 in dividends. Multiply the number of shares by the amount of the dividend paid (100 shares x 0.15 cents in this example).

2. January 3, 2022, is the last day to buy and receive the dividend.

3. You will receive your dividend on January 21, 2022.

It’s that simple, my friends. If you want to verify which companies will pay dividends on a specific day, visit this Nasdaq page. Now put this new knowledge to good use.

Now, begin your Road to Wealth!

Leave your comment below. If you liked it, pay it forward. Please share it on social media and help others become successful as well. Your success will be the result of two things: Knowledge and Action.

Follow me on TWITTER, PINTEREST, INSTAGRAM, LINKEDIN, FACEBOOK for more posts and updates. You can also reach me here with any questions.

From the comfort of your home, invest anywhere in the united states with Fundrise.

DISCLAIMER: Please read our disclosure policy here. This post contains affiliate links, and I earn from qualifying purchases at no cost to you. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. Road-to-wealth.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles, and other features are for educational purposes only and should not be construed as investment advice. Information for any trading observations is obtained from sources believed to be reliable. Still, we do not warrant its completeness or accuracy or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk, and it is your sole responsibility to evaluate the information’s accuracy, completeness, and usefulness. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein.

24% Dividend Idea with BTI, Short-Term Hold

Although we covered a more in-depth analysis of (BTI) British American Tobacco in this article, today, I realized a play that can be very beneficial within the next few days.

BTI goes ex-dividend on 22 December 2021. That means that everyone who buys shares on or before 21 December 2021 will receive a dividend payout.

The idea is simple, but you have to afford to buy 100 shares. At the current price of $37.30 on 20 December 2021, it will cost $3,730. Before you ask, Yes, you can still buy shares of BTI if you don’t have the whole amount needed; you won’t be able to complete the entire strategy, though. But you can always learn it for later. Buying shares will only give you the dividend.

Let’s try to catch a dividend here.

Get free stocks when you open a Robinhood account.

I bought 100 at $37.26 for a total of $3,726. Therefore, BTI will pay a dividend of $0.74, bringing in $74. For those of you who are newer, you multiply the number of shares (100) by the amount of the dividend paid ($0.74). That’s how you calculate how much you will receive.

On the 22nd, I will sell a call option, the $35 Call expiring on 21 January 2022, to be exact. It is currently trading for $2.30. If BTI keeps increasing in value, it could sell for that or more. To keep it simple, let’s use the current price.

As long as BTI remains above $35 by the expiration date of 21 Jan 22, my shares will be called away at a standard price of $35 per share.

Let’s do the math:

100 shares at $35 = $3,500

Credit for selling the call is $2.30 * 100 shares = $230

The dividend, as previously established, is $74

Add it all up, and you get $3,804. So my total investment was $3,726, which gives me a $78 profit in exactly 31 days for a little over 5 minutes of work. That is an annualized gain of 24.87% for sitting on my hands.

Are you receiving a 24% profit anywhere else? If not, this is an opportunity you can try with dividend-paying stocks.

Now, begin your Road to Wealth!

Leave your comment below. If you liked it, pay it forward. Please share it on social media and help others become successful as well. Your success will be the result of two things: Knowledge and Action.

Follow me on TWITTER, PINTEREST, INSTAGRAM, LINKEDIN, FACEBOOK for more posts and updates. You can also reach me here with any questions.

From the comfort of your home, invest anywhere in the united states with Fundrise.

DISCLAIMER: Please read our disclosure policy here. This post contains affiliate links, and I earn from qualifying purchases at no cost to you. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. Road-to-wealth.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles, and other features are for educational purposes only and should not be construed as investment advice. Information for any trading observations is obtained from sources believed to be reliable. Still, we do not warrant its completeness or accuracy or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk, and it is your sole responsibility to evaluate the information’s accuracy, completeness, and usefulness. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein.

How To Reinvest Your Dividends Automatically

If you are new to investing, I know you don’t know about this yet. However, strangely enough, followers who have been investing for some time don’t know about this trick either. It is a very self-explanatory concept and easy to grasp.

            I present to you the (DRIP) Dividend Reinvestment Plan.

            A DRIP is a program that any investor can use. This program allows investors to reinvest their cash dividends into buying more shares of that same stock. If the stock price is higher than the dividend received, you can purchase fractional shares of that stock.

            It uses a technique called (DCA) Dollar-Cost Averaging. Simply put, it takes all your purchases amounts and prices and averages it out equally.

Let’s see an example.

(DCA) Dollar-Cost Averaging Example

            In the first Quarter of 2022 example, you purchased a total of 21 shares of a stock, and you invested a total of $145. Divide 145/21, and you get an average price of $6.90.

            For you to make a profit, you need to know this number. Selling below this dollar-cost average price will guarantee a loss.

Simple enough, right?

            So, enrolling in a DRIP helps you automate the process of reinvesting cash dividends. It makes investing a much simpler task. In some cases, cheaper. Best of all, it is done automatically for you—an utterly hands-off system with no emotions involved.

            A great benefit that I love, the system itself, will buy more shares when prices go down and fewer shares when prices are up. Over time, it helps you compound your gains. That way, it gives you a better price by dollar-cost averaging down. It is a powerful tool to have.

            Understand that DRIPs only work for investments that 1) pay dividends, 2) you will hold for extended periods (yearly/decades). You will often hear the argument of choosing well-established companies, also known as “high quality” and “low risk.”

Don’t forget!

            DRIP investing is subject to taxes. Because even though investors do not receive a cash dividend, an actual cash dividend is reinvested. The IRS considers that to be income and therefore taxable.

Note:

            We will begin two YouTube channels in 2022. An English as well as a Spanish channel. We will go over all these strategies, and you can learn and implement them for yourself. Stay tuned!

Summary:

            – DRIP is a program that reinvests your cash dividend automatically for you.

            – It dollar-cost averages the purchases and helps you compound your gains over time.

            – Taxes are paid on those dividends, although you didn’t receive the cash on hand

That’s it! Verify with your broker how to set up DRIP investing in your account and watch your account grow.

Now, begin your Road to Wealth!

Leave your comment below. If you liked it, pay it forward. Please share it on social media and help others become successful as well. Your success will be the result of two things: Knowledge and Action.

Follow me on TWITTER, PINTEREST, INSTAGRAM, LINKEDIN, FACEBOOK for more posts and updates. You can also reach me here with any questions.

DISCLAIMER: Please read our disclosure policy here. This post contains affiliate links, and I earn from qualifying purchases at no cost to you. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. Road-to-wealth.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles, and other features are for educational purposes only and should not be construed as investment advice. Information for any trading observations is obtained from sources believed to be reliable. Still, we do not warrant its completeness or accuracy or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk, and it is your sole responsibility to evaluate the information’s accuracy, completeness, and usefulness. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein.

START SOLVING YOUR MONEY PROBLEMS TODAY

“The distance between your dreams and reality is called action” IG @Corporatebytes

DISCLAIMER: Please read our disclosure policy here. Links in this post may contain affiliate links and as an Amazon Associate, I earn from qualifying purchases.

I’m going to start this article by asking several questions.

1. Do you think that, earning more money will solve your money problems?

2. Do you think higher education will solve your money problems?

3. Do high paying jobs solve money problems?

But the real question is, What does solve money problems?

Making more money does not solve your money problems. This is due to individuals tend to find new things to buy with the new money they just received. Many times, this is bought on credit which adds monthly payments to your debts.

Higher education does not solve your money problems either. We have a lot of bright individuals with Masters and Ph.D.’s that earn a lot of money but are deeply in debt.

A higher paying job does not solve your money problems. I see it all the time.

Tell me, how many pay increases have you received in your working life? How many bonuses have you received?

Are you out of bad debt yet? Ask yourself, why?

Truth is, we already know where or on what we want to spend that money before we even receive it. The reason why too many individuals cannot get ahead of the game is that they lack the real answer to the big question, Financial Education / Financial IQ.

One thing is having higher education, high paying jobs or making a lot of money; and a whole different thing to know what to do with that money to become financially free.

In order to increase your Financial IQ, Robert T. Kiyosaki wrote a book to help us all. The book “Increase your Financial IQ – Get smarter with your money” goes in-depth to explain what real Financial education is and how you can use it to get ahead of the game.

Don’t buy luxuries until you’ve built the assets to afford them. He doesn’t agree with the mentality of living below your means. He prefers to build and acquire assets that pay for the lifestyle you want. Don’t pay for luxuries out of pocket. Pay for assets out of pocket and they will buy the luxuries that you want.

Assets come in many forms. They are things that will bring money into your pockets, whether you were working for it or not.

The most common assets are paper assets. Those come in the form of investing in stocks in the stock market. Mutual funds and bonds are also in this category.

Another type of asset is Real Estate. Whether you are flipping houses or owning rental properties (house for rent or apartment for rent).

Owning your own business. Or learning how to make money online by setting up a website, blog, etc.

And finally, the less common known assets of commodities. Include owning oil, gold, silver.

What do you do?

If you want to learn how to make money, I highly encourage you to decide which one of the previous types of assets you are more interested in. Buy a few books on the topic or take some classes. Learn the inside and out of how they work. Set yourself for success.

Instead of watching TV, learn new skills and begin managing your finances.

Useful new skills for this century are podcasting, affiliate marketing, app development, furniture making, graphic design, just to name a few.

Manage your finances by learning about taxes (“Tax-Free Wealth“) or be willing to pay up for a very well educated accountant.

Start your own business. It could be inside a building or an online business. You want a proven system, then check out Timothy Ferriss’s book (“The 4-hour workweek“). A great example of his business with tips and tricks for getting what you need for less.

Learn to invest (“The Intelligent Investor“) or know that you will be paying fees and expenses to people that are as intelligent as you or not even as much.

Review and organize your finances using money calculators, build your own or be willing to pay someone to build one for you. By the way, that someone will be me in the near future. Don’t worry, it won’t be expensive.

Don’t be afraid of using coupons to buy items at lower prices. It is a great way to save money that you can put to better use by investing it and growing your account.

Don’t throw your hard-earned money in the grave or online banking. What I mean by that is, don’t leave your money in a savings account or online bank account that pays anywhere from 0.5%-2.50%. Remember that inflation increases on average 3.5% per year. You need to make investments that pay at least 3.5% just to keep up with inflation and not lose your buying power.

There are plenty of assets that can pay you 3.5% and more. Investing is not risky. Risky is depending on one source of income (aka your job), and losing it (getting fired) and no second or third sources of income to help you mitigate the hit. Now, THAT! is risky.

Begin your Road to Wealth!

Leave your comment below. If you liked it, pay it forward. Share it on social media and help others become successful as well. Your success will be the result of two things: Knowledge and Action.

Follow me on TWITTER, PINTEREST, INSTAGRAM, LINKEDIN, FACEBOOK for more posts and updates.

If you have any questions, you can reach me at questions@road-to-wealth.com

READ THIS BEFORE YOU SAVE YOUR FIRST $50,000

“The greatest reward in becoming a millionaire is not the amount of money that you earn. It is the kind of person that you have to become to be a millionaire” Jim Rohn

DISCLAIMER: Please read our disclosure policy here. Links in this post may contain affiliate links and as an Amazon Associate, I earn from qualifying purchases.

Who we turn out to be in life, depends greatly on our early life experiences. It shapes us as a person and our personalities.

That also holds true for the experiences we have with money as a young person. It could seriously shape our whole mental outlook on finances and how we go about getting it.

I’ve always been really good at saving money. But I saved in order to buy stuff that I wanted. No one, in my family, trade in the markets, or own Real Estate or have their own business.

With no entrepreneurs in the family, it is a trait that I couldn’t learn or follow. I followed the same path as everyone else around me. I grew up in a middle-class family with high morals and values, big in sports, but mediocre in financial education.

Now, in my 30’s, my eyes have been opened to a new lifestyle. The best thing is, that lifestyle is reachable. I just have to work a little bit harder than someone younger. But I’m setting myself apart from everyone else to include family, friends, and peers.

When I say a new lifestyle, I don’t mean filthy rich and do nothing. What I mean is, a life where I can work and do what I like at the same time that my money saved is also working for me, growing and making my life easier. I don’t have to wait until retirement to enjoy it. I can use mini-retirement vacations every year and enjoy life while I’m still healthy and able to do so. Waiting until my 60’s to enjoy my money doesn’t make sense to me. How do I know if I’m still going to have good health then?

With that said, I started reading away more books about money and investing in the last 2 years than ever before in my life. (For reading books faster, read until the end).

No doubt in my mind those books changed my way of thinking about money forever. They are shaping my financial self, and they are leaving me with a nice positive cash flow which helps me cover my monthly bills and then some. Which makes me envision even bigger money goals aiming to not just help myself but my immediate family as well.

I encourage everyone to read them if you haven’t done so yet. They will transform the way you think about money and will definitely help you increase your wealth.

These are the most important books I read which have helped me save and invest my first $50,000 in only 2 years. To me, this is a milestone that could have not been possible if not for the part played by the knowledge inside. Of all those books, the ones that have stood out the most to me are the ones that follow.

1. The Millionaire Next Door

This book unmasked the typical “Millionaire” on the streets. The ones that have a lifestyle that is funded by debt and can barely find any money to spare. The authors realized that most of the millionaires in this country live just like the rest of us.

They are (PAW) or prodigious accumulator of wealth. The ones that have the lifestyle but not the income to support it are (UAW) under accumulator of wealth. Most people are (AAW) average accumulator of wealth.

You will also find in this book a simple net worth/wealth formula that will reveal to you where you stand by your age, not your peers or neighbors.

It was the first book to open my eyes to frugality, but not living like a poor person, just not wasting money in excess.

2. The Intelligent Investor

Warren Buffet (The Oracle from Omaha) is hands down the best investor in history. The wealth that he has amassed is in the billions. He calls this book, “By far the best book on investing ever written”. Coming from the best investor in history, I take that as the highest praise anyone can get.

If you ever wonder how to analyze stocks, this is your book. Benjamin Graham explains his strategy and the discipline it takes to become a smart investor.

3. Rich Dad Poor Dad

If you have not seen or heard about this book and Robert Kiyosaki, you are living under a rock. It is the best-selling personal finance book of all time! Read the last sentence again. No, seriously.

He made up his two dad’s, but the powerful lessons and inspiration in this book will make you start thinking like an investor and not a consumer.

A few things I learned:

– Not all debt is bad. You can get very wealthy if you understand debt and how to use it.

– First, buy assets that produce cash flow. Then, use that cash flow to fulfill your dreams and/or lifestyle.

– If you don’t invest in assets first, you will never get out of the rat race (slave away your life working until you die)

– Become your own boss. They believe if you are going to do it, go big or go home. But no need to jump with both feet. Personally, I’m starting small as a side job and building to the point where I won’t need my primary job anymore.

 If you want to start your own business or invest in rental properties, this is the book to read.

4. The ABCs of Real Estate Investing

Ken McElroy who is part of the Rich Dad brand (Robert Kiyosaki) wrote this book. As a mini summary, what you need to focus on is finding the right deal where you can make money off of it.

He goes over Real Estate Myths: Need a personal fortune, need to start small, or you have to be a Real Estate genius before you can get started.

If you work hard to study the markets and properties, evaluate the real income and expenses properly and improve operations, R.E. investing lets you sleep well at night all while building your massive wealth.

5. Tax-Free Wealth

Tom Wheelwright is a CPA who is also part of the Rich Dad brand, wrote this book about tax planning concepts.

He explains how to use your countries’ tax laws to your benefit. How tax laws work. And how they are designed to reduce your taxes, not to increase your taxes.

Once you understand the basic principles of tax reduction, you can begin reducing your taxes and in the future how to eliminate your taxes completely just like President Donald J Trump and Rich Dad’s own Robert Kiyosaki. You will no longer be afraid of taxes again.  

6. The 4 Hour Workweek

Timothy Ferris wrote this amazing book which gives you examples on how to properly be more effective and efficient at work and in life. He’ll explain the difference between the two.

How to build systems that can be automated. The cash flow will keep flowing in, and you will work less and less as you start removing yourself as a bottleneck of information.

Little tips and tricks on how to technically become an expert in whatever you choose to work on in very little time.

Learn to delegate tasks and get more done on a daily basis. It doesn’t matter if you are a business owner, any type of entrepreneur, CEO, floor manager, store manager, or whatever, as long as you have individuals that work under you, you should get this book.

Your productiveness will go through the roof. And your wealth too.

7. Cashflow Quadrant

This is another of Robert Kiyosaki’s books. This one, in simple words, is about taxes.

Yawn! Right? Well, no, hang tight, you will definitely want to read it. You will learn the difference between the four types of individuals there are in the world and why some pay a lot of taxes while others pay the minimum or none at all.

The tax benefits you can get if you do things that the government wants you to do like research, create jobs, places for living, and many other things, you will probably want to give it a try and stop giving the government half your money back in taxes as an employee.

8. Unshakeable

Tony Robbins shares tips from different financial gurus like Warren Buffet (The Oracle of Omaha), Alan Greenspan (Federal Reserve USA 1987-2006) and David F. Swensen (Investor, Fund Manager).

He explains the rules of the game, key players and their agenda, and how the average person (you and me) can ride the financial storm to build your financial freedom.

Being “Unshakeable” means that no matter what happens to the economy, you will have more than enough for yourself, your loved ones and your contributions. In other words, financially secure.

If you don’t want to be misinformed, ignorant and/or in fear of the financial markets, you must know the rules. Get this book.

WHAT NOW?

Well, there are plenty of more books but we will be here all month long. I will write about them later. But this is where I started and I can’t tell you in this article how my life changed after this. I’m fully invested in the stock market and currently taking Real Estate classes. I already set my goal to acquire my first Real Estate Investment within the next 15 months. Building my investing team and learning the game for now, but when the time comes, watch out!

READ BOOKS 10X FASTER

I just recently wrote an article where I explained how to make David and Zira read your pdf books for you and for free. If you are reading out of your computer in pdf format, they will read it to you. Check it out.

Begin your Road to Wealth!

Leave your comment below. If you liked it, pay it forward. Share it on social media and help others become successful as well. Your success will be the result of two things: Knowledge and Action.

Follow me on TWITTER, PINTEREST, INSTAGRAM, LINKEDIN, FACEBOOK for more posts and updates.

If you have any questions, you can reach me at questions@road-to-wealth.com