Making Money Using the Call Option

If you need some encouragement, buying Puts and Calls can definitely make more profit for you than if you buy the stock at face value. There is some risk, but you should not be in the equity market if you are afraid of risk. . . . → Read More: Making Money Using the Call Option

Investing in Options – The Call and Put

The Call: ¹

A call option, often simply labeled a “call”, is a financial contract between two parties, the buyer and the seller of this type of option. The buyer of the call option has the right, but not the obligation to buy an agreed quantity of a particular commodity or financial instrument (the underlying) . . . → Read More: Investing in Options – The Call and Put

The Economics of Solar

The main difference between buying solar panels and getting your power from a utility is the way your payment is structured. Solar panels have a large upfront cost, like buying a house. Utility power is pay as you, like renting a home. There’s a point where your monthly payments to the utility will become more costly then the upfront cost of a alternative power source. This point is called the pay-back point. After you reach this point you can consider all the money you were going to pay the utility company a return on your investment. . . . → Read More: The Economics of Solar

The Investors Dilemma (The Dow Jones Roller Coaster Ride)

The DJIA ended last week at slightly below 11,445 which was just about what it was at the end of 1999 (11,497). So how then is the DJIA investor to gain wealth? Well, unless you are a very big investor, i.e. Warren Buffet, or extremely lucky, or you have a very smart financial manager – you will probably end up either stagnant or at a loss. . . . → Read More: The Investors Dilemma (The Dow Jones Roller Coaster Ride)

With Money, Your Words Mean Something

How do you respond when someone approaches you with an investment opportunity?  Say your friends come to you and ask if you could partner with them on buying a rental unit.

Do you say, “Not right now, my cash level is too low” or “I don’t have enough money to do that” or “I can’t . . . → Read More: With Money, Your Words Mean Something

Debt = Anti-Wealth

Debt is addictive. Debt is seductive. Debt is inviting. Debt is . . . Common Example: John and Jane want two new cars but they only have $4000 saved up and the cars they want cost $28,000 each for a total of $56,000. They have a very good credit rating and the lending institution lends them the money at an attractive interest rate. They drive away in their new cars feeling on top of the world and “wealthy”. . . . → Read More: Debt = Anti-Wealth

Real Estate -Part C (A Book Review on Real Estate Investing)

While researching this topic, I read a book by Frank Gallinelli called “MASTERING REAL ESTATE INVESTMENT”, Published by RealData Inc, 2008.  This book has extensive definitions and example problems (with answers) along with real life case studies.  This topic is one that requires much knowledge and experience to master, but this book  is a quick . . . → Read More: Real Estate -Part C (A Book Review on Real Estate Investing)

Are You Saving Yet?

To start, make sure you have an income which exceeds your expenses. This frees you up to save and invest. According to Charles Dickens’ David Copperfield, having more income than expenses creates happiness. Misery is having more expenses that income. . . . → Read More: Are You Saving Yet?

Real Estate – Part B (Example of Buying a House)

A house fits the definition of “Real Property”. There are two types of house properties: the first is the typical one – you are going to live in the house; the second is typical, too but is quite a bit different for your investment portfolio – you are not going to live in the house but you are going to lease it to someone else and they will pay you something to live in the house. We are going to do an exercise on buying a house you to live in. (We will be using each of the terms in “PITI”. If you need refreshing, see the previous post.) . . . → Read More: Real Estate – Part B (Example of Buying a House)

Real Estate: Part A – Before You Start Investing

Before you start investing and using your nest egg to create a Stream of Income by using the opportunities presented by the Real Estate Market, you will need to embed these basics into your conscious and your sub-conscious. . . . → Read More: Real Estate: Part A – Before You Start Investing