Why I am OBSESSED with FX by Judith Morgan

Friday:   I am obsessed with Forex.   I have been for about a year since Stephanie Hale first let me in on the secret that is Genecor.

Based in Cyprus, Genecor will trade FX for you and consistently return an average ROI of 6-7 percent a MONTH!   Yes, that’s right!

That’s 6-7% a month.

Genecor’s minimum deposit is 2,000 euros and I put that on their trading platform in June and can report that their returns are sometimes better than this, sometimes worse, but this is the average return.   They provide a spreadsheet where you can calculate that if you put in X sum of money at Y rate of interest, how quickly that can turn into a meaningful sum of money on deposit.   Mark Anastasi has demonstrated (as does the spreadsheet) that if you can get together a fund of 100,000 euros it compounds into 1,000,000 euros in about 3 years.

Several of our clients are doing this alongside me and I have been following internet marketer Mark as he also invests with Genecor himself.   Let me know if you would like me to send you details of how to do this.   There are LOTS of forms to fill out, which I allowed put me off for about six months but which only eventually take about an hour or so once you knuckle down.
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The Power of Compounding By Julia Lee

How do you turn $30,000 into a million dollars? The secret is time and the power of compounding. Here I’ll run through this powerful concept which has helped Warren Buffett become one of the richest people in the world.

Buffet has long been one of my heroes as the most successful investor in history. But now I feel let down as I read the latest book on Buffet, “The Snowball – Warren Buffett and the Business of Life”.

There are some great revelations — such as realising the power of compounding — but the man is obsessed with keeping score of his money and it seems as though it has been at a personal expense.

In fact the title of the book “The Snowball” is a reference to a central theme in Buffett’s life which is the concept of compounding.
Let me give you a few examples. All the examples are going to assume an interest rate of 7% per annum with interest being calculated monthly.

Compounding is like a snowflake that rolls into a snowball with time:

• $10,000 invested at 7% is worth more than $20,000 in 10 years time.
• In 50 years time, that $10,000 is worth more than $300,000.

Of course, that doesn’t take into account inflation eating away at your capital but with many stocks offering a 7% yield, the capital growth could mitigate the effect of inflation and in fact beat it.

Such a mindset can be applied to every-day purchases. A $500 handbag is actually like spending $10,000 if you compare the effects of compounding monthly at 7% pa over 50 years. So should I spend the $500 or gain $10,000? It’s this type of thinking that has motivated Buffett to put off spending in order to grow his snowball to outrageous proportions.
What about a car purchase of $30,000? Well that would be like spending almost $1 million dollars (50 years, 7% pa with interest calculated monthly). So using that thinking, putting off the purchase of a car could be worth having an extra $1 million in the bank in 50 years time.

It’s no wonder that the sharemarket can be so powerful. Great companies are like accelerating snowballs. Not only do they offer dividend payments but also capital growth. Great stocks do better than cash because they are able to return more than just an interest rate of say 7% on their capital. It’s not unusual to see a return on equity of 20-30% for good companies.
But I suppose what has struck me most about Buffet is his aim of accumulating cash seems to override everything else in his life by comparison. I suppose he is successful due to his single-minded focus as much as his ability and for that I think he deserves the title of the most famous investor and the richest investor in the world.

As for me, I’d like to take his investing principles and use them not to accumulate as much of a snowball as possible but to balance it against my dreams, my hopes and of course a financially secure future.

Compounding is powerful and the concept of being able to buy into companies can bring great fortune or great grief.

I hope that in 2009 you add great companies to your portfolio and that they bring you great fortune.

Happy trading
Julia Lee,, Equities Analyst, Bell Direct

Follow Julia on Twitter: http://twitter.com/belldirect

Teeny Tiny Pension?

Do you have a teeny tiny pension knocking about?  I do, and I get those annoying letters that tell me just how little it’s worth and what I won’t have to live on when I retire.

Mine’s worth the princely sum of £10,837 and that reflects the growth in the very few premiums I paid back in the late 70’s / early 80’s when I was sold a pension by Allied Dunbar.

I’ve largely never had the spare cash since then to put more in, and more recently the last place I would put my money is in a pension or the stockmarket!!  Property, business and passive internet income is my preferred route to retirement at the moment.

But it turns out that I can do something rather interesting with it now and, if you have a teeny tiny pension too (TTP), you need to pay attention now.

I can transfer my TTP into a SIPPS, which is a “self invested personal pension scheme” and I can do several even more interesting things with it.

1.  I can use it to buy commercial property

2.  I can borrow an extra 50% of the existing value – making it worth £15,000, and buy more commercial property

3.  I can club together with one or two other similar age people to buy commercial property with it

4.  The same applies about borrowing an extra 50% even if I club together with others

5.  We can buy property in the Caribbean with it that is going to appreciate dramatically in value AND generate rental income/profits

6.  All of which appreciation and rental profit is tax free and keeps growing in our SIPPS till we choose to retire.

Just visit here to watch two short presentations – no charge – that will tell you more…

http://www.themoneygym.com/harlequin/register.htm

So, if you are 47 and looking to retire at, say, 60, why don’t you get in touch with me at nicola@themoneygym.com and Judith and I will see what we can do for you.

Actually, if you are ANY age with a TTP, get in touch and we will put you in touch with others of the same age, and the bloke who can help you.

By the way, this is just one of the AMAZING wealth creation things we know about in the Money Gym, that you probably don’t.

Why don’t you think about joining Money Gym Gold before Christmas ready for a January start and let the Money Gym team make your 2009 your best year ever, financially speaking?

If you join now, you will not only save £1200 on the 2009 membership fee AND get a stonking new bonus – not available to the general public yet – worth £1750.  this is our brand new Money Gym Membership Site Bootcamp product, which will teach you how to turn £5 a month into £60,000 plus a year.  Perfectly achieveable you know.

Just visit Money Gym Gold, have a read, and pay the deposit to secure your place for 2009.

And then email Nicola [at] TheMoneyGym.com about your teeny tiny pension!