some people often talk about retire early or retire sooner. They may be bored working from morning to night without a significant economic progress. They want live wealth at young age. However some person choose to work until old. They like to work because it is not all about money.
Here are some strategies for retire early:
1. Find another jobs. You can work at other place to generate more money.
2. Buy one single family car to thrift your car spending
3. Do not include your child at the payroll
4. Eat at your house. most people eat at out that spend more money
source: finance. yahoo.com
Linkedin is a professional social network that plan to raise IPO around 175 million dollar. I believe other social networking will follow what Linkedin do. Linkedin has 90 million member, compared facebook whose has half billion account.
Linkedin is a good company that can generate earned $ 1.85 million of $ 161 million revenue at the first nine month last year. Meanwhile, facebook earned $355 million of 1.2 billion.
Do you believe the lottery can make us rich? I do not believe and I never buy lottery. We are hard to find money through lottery. You should stop the lottery now and use the money to other purpose.
Buy a money box and put the coin. Say, you can buy lottery coupon $ 5 a day. If you save the money in money box, you will get $ 1800 a year. In, a year, you can use it to buy anything or you can invest it.
The government should stop the lottery because it is useless. Lottery can make people addicted and finally they bankrupt.
In my country, the government has been forbids the lottery for more than 20 years. Unfortunately, people still can buy black lottery everywhere.
The probability of winning a lottery is very small. Only few people can get the money. Most people will be dissapointed. For example, a lottery just gives 5 prizes for every hundred lottery. Therefore, other 955 wil loose their money.
Most lottery winner does not happy
A study shows that lottery winner do not happy. It is because they do not used to hold much money or billion dollars. They confuse where to spend the money. They afraid someone tries to steal their money. They may buy a strong house or some weapon. They also employ some guard or watchdog.
Lottery prize is a hot money. It can deplete so fast. When you get the prizes, your brother comes to your house. They may ask you some money for business. Off course, we are hard to reject the request.
Some unwin lottery may ask you some money. They might come to your house.
I do not think the lottery winner is a happy man. They are not use to hold million money so they are shocked with it.
Previously post, I explain about facebook stock. If Mark Zuckenburg IPO the facebook share, will you buy it? You have to check the company first. You may like facebook but it does not mean that you have to buy the stock. Analyze the company first. Will facebook pay you high return or gain. We are difficult to analyze the dotcom company because the intangible asset is so high. Some experts are difficult to calculate it.
In my opinion,
we cannot hope much with facebook because it is a new company. We do not know whether the company will grow like Google or will close. You can ask your broker to analyze the stock
I agree that the Initial Public Offering (IPO) of greatest social networking in the world facebook is coming sooner. As common people, we are difficult to analyze the prospect of Facebook company. Will it give the investor high return? Nobody know No body know what is the real value of this company.
However, a famous investor company, Goldman Sachs, has acquire one percent of Facebook share or for $500 Million. I believe some people may follow what Goldman Sachs have done.
Some people hope there is second dotcom bubble that can give high return to investor. I think it will not happen. Some investor will anticipate second bubble and people has no money so they will be careful to keep the money.
The economics seems not change for 2011. We should do five financial solutions in 2011:
1 Re-balance your portfolio. Check your portfolio whether it has aligned with risk you willing to assume. You can sell the stock and change with other investment.
2. Prepare the nest for future. Contribute to the retirement plan.
3.See the financial security system of your family.
4.Plan to buy estate. You need a comfort house for your family. Do not let them live at street.
5. Beware the threaten of debt. Reduce the debt immediately. The interest may rise up and make you bankrupt.
read also :
How to prepare bubble market
Only 0,9% US people are billionaire or 2,886,200. So it is not easy to become a rich people. Do you think what is your odds getting rich?
Ibnu Khaldun, an Arabian Sociology, have ever told that most rich people whose has much asset comes from rich parent.It is difficult to collect money fast.
If you win a lottery, you can become a millionaire. I think lottery is not good for you because only few people can win lottery.
You can be homeowners too. If you have money, you can invest at real estate. Unfortunately, Most people like us has little money so we cannot buy house. If we can buy house, we can rent it to other people.
It is not good for investor whose has active ETF. They think the active is better than the passive. I have read the article from Investopedia.com. Actively ETF is different with passive ETF. The management of active ETF must work hard to manage active fund. They do short selling, sector rotation, and buying on margin. On the other hand, a passive ETF manager will not do like that. They invest their money at index such as S&P 500.
Unfortunately, most active investor does not get money as they think. The active ETF cannot beat the index or market performance.
Actively-managed ETF is rare. It is because the technical challenge in creating the product. We do not know the share or stock price exactly. There is disparity price. To the big buyer such as ETF management, the stock seller give discount. You should know that the manager also get bonus from the stock selection for the ETF.
Some people may guess that index fund is similar to stock. They think that Index fund can give higher return like investing in stock. Index fund invest not only stock but also bond. Bond index that include treasury bond, corporate bond, mortgage-backed bonds, and so on is less popular than stock index. By investing in index, you diversify your money to numerous company.
You should also pay some fee for funds too. The critics of mutual fund is that the manager cannot beat the market. Some manager also cannot beat the market. Perhaps they cannot construct a good portfolio.
The Bond Fund expected return usually is lower than Stock Fund. It is because the expected return of stock is higher than the expected return of bond.
Most people want to live comfort at old day. That is why they invest their money at retirement saving.They realize that they can work at old day. Unfortunately, some people has been failed to plan their retirement. Therefore, they need a strategy for their retirement. It is not difficult but you should hard for it. Here are the strategy:
1. Invest at some investment. If you have much money you can invest at various investment
2. Build a business Start with a small business
3.Freelancing - Find some freelancing jobs.
4. Buy more asset if you have more money. You can sell it or rent it someday