Dear FutureMoneyTrends.com Subscriber,
Money education is without a doubt one of my biggest passions, I love teaching people about money. With that comes a healthy hate hearing people parroting conventional wisdom… Diversify into mutual funds, buy T-bills, and don’t buy gold. A lot of what I hear is also just plain ignorance, like when someone once told me it was a bad idea to pay off a house since you lose your tax deduction, that my friends is just pure insanity!!!
From time to time I like to update our members with exactly what I am doing with my own money. If you have any questions, please reply to this email and I will include them in either tomorrow’s or next week’s weekly wealth digest.
Right now this is what I am doing with my own money…
50% of my wealth is going into safe reliable rental property. As a rule of thumb, something I learned from Mark Ford, stick with buying rentals that you can own for 6-8X rent. So for example, if a house rents for $1,000 a month, then your maximum buy price should be $96,000. Remember, when buying cash flowing real estate you are giving yourself a margin of safety, if you are buying for appreciation you are speculating.
25% is going into safe reliable dividend paying stocks like Becton Dickinson (BDX), Philip Morris (PM), Pfizer (PFE), Intel (INTC), and International Business Machines (IBM). These are all companies that are going to be around in 100 years from now, their share prices will fluctuate, but I am a happy shareholder in these businesses and expect a reliable dividend for the rest of my life.
15% is in speculative ideas, for most people this number should be closer to 2-5%, but knowing what I know and meeting the people that I do interviews with, I feel very confident in these investments. When I speak to Marin Katusa, Rick Rule, Doug Casey, David Morgan, and Amir Adnani, I can’t help but get excited about buying into a sector that has been left for dead. All you have to do is look at history, if you want to make big money, you have to buy when an asset is unpopular. Mining shares have been brutal investments and to be perfectly honest with you I only own a few myself; I think overall the mining business is horrible, unless you can get in early with a company like Brazil Resources Inc. (BRI) My suggestion is to get in now because when this sector turns, it will be the BRI’s of the world that will see the greatest gains.
10% of new money earned is going into precious metals, not a big surprise to those who have been with me for a while. I see silver as an investment and gold as money. Gold is the investment of integrity, a true asset and store of wealth, no matter what happens in 100 years or 1,000 years, gold will be valuable.
Please note that this information does NOT reflect the balance of my net worth or portfolio, it is just where NEW money is going.
Editor in Chief, FutureMoneyTrends.com
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