Sunday, June 28, 2009

Half of a BRIC may be more valuable,
Than a whole BRIC !

India Express Festival - 4/23 nov. 2008Image by De Balie via Flickr

The BRIC countries, (Brazil, Russia, India and China) are once again looming large on investors radar screens. For the average, retail investor, there are a number of mutual funds which highlight good companies in, what are considered, four strong, emerging markets. Some of these funds include companies from other Asian and South American countries (Indonesia and Argentina come to mind), but concentrate their portfolio on the BRIC block as they are seen as the emerging tigers of the worlds future economy for various reasons. There is, however, a serious problem with two of them.

No matter the last 15-20 years of supposed free market reforms, China is still a communist country with democracy only a distant dream! Time and again, they have proven that the rule of international law does not apply to their country. Copyright infringement is rampant and far reaching, graft is still part of local and national government business, and as for human rights, well, they don't apply. Lately, the country's leadership has been working, through the proxy of it's nationally owned companies, to soak up much of the worlds raw material, from oil and gas, to fertilizer, coal, and ingredients for making steel.

No supposed "free marketer" dares to challenge policy in China, for fear of being ostracized by the great, red, business machine. Just ask Google! Ominously, the recent run up in the Chinese markets is driven mostly be inexperienced Chinese investors, with visions of sugar plums dancing in their uneducated investment heads. That can only end badly with many of them learning the hard way that what goes straight up, always comes down. In the final analysis, will the rules of business, be guarded by the rule of law? Maybe, but, contrary to many other wide eyed investors, I'm not putting my money on it, or into China.

Russia has a shrinking population, a suspect banking system and clings to a Government structure of "strong man rule" under the guise of democracy. Russia has proven time and again, that they have more crime bosses, than CEO's. Just ask any of a dozen good companies who have arrived from the west during the past 15 years, only to be cheated out of billions in real estate, oil, gas, you name it. The names of these business are too numerous to mention, but they certainly know who they are. Or ask any of a number of honest journalists who have challenged the status quo in that country (Oh, sorry, you can't ask them, because they are dead).Until a proper democracy and the rule of law replace King Putin, I won't be risking any of my meager Retire funds there either.


That, my friends, leaves us with half a BRIC!


India is the "largest democracy in the world", and it just elected a very pro business government that cannot be voted out of office for the next five years. Companies like Tata Motors, Taj Hotels and Resorts, Bajaj Holdings & Investment, Nadir Godrej-led Godrej Industries and lender "Yes Bank" may well be the Microsoft, P&G or Google of the 21st century. Business Week certainly seems to think so! India has a disproportionate number of the worlds software engineers as is evidenced by the number of Indian nationals who emigrated to Silicon Valley during it's heyday, and who now are back in India leading cutting edge companies. Does India have it's problems? Sure it does, but during this global recession, what country doesn't? Exactly! Many believe that India is right now, where China was 20 years ago with regard to business development. Does this sound like a good prospect for your retirefund? It does to me. You can buy a pure Indian Fund on the NYSE.

Brazil is already, so far ahead of the rest of the world in green energy production that it is entirely self sufficient. Besides owning great reserves of oil, almost 50% of it's energy is derived from locally produced ethanol, and they are, far and away, the world leaders in this technology. In Aerospace, Embraer, is a world leader in the building of regional jets in competition with Canada's Bombardier. Banco do Brasil is not in nearly the jam that many American Banks find themselves in, and other companies such as Brazil Telecoms (telecommunications) and Braskem (chemicals) are now on international investors radar screens. Yes, they also have their problems, but they are a growing phenomenon, and Brazil is also a democracy.You can buy a Brazil Fund currently on the NYSE.

Now if we can just get the fund managers to come up with a basket of great companies from these two emerging powerhouses, you might be able to throw just half a BRIC into your Retirefund, and reap the rewards.


Are you listening IShares?



Reblog this post [with Zemanta]

Friday, June 26, 2009

If you were walking through the desert, with four camels on your back, and had two flat tires, How many pancakes would it take to bury an elephant?

Basic creditcard / debitcard / smartcard graph...Image via Wikipedia

The Answer: TWO! Because an alligator only eats two ice creams!


Confused?


You should be, because nonsense is nonsense. There is no explanation for nonsense, and sadly, there is no cure for stupid!


If you run up a huge credit card balance, buying for the sake of buying, you create nonsense. If you fail to pay off your credit card balance every month, then you may well be stupid! (sorry, but the truth often hurts) At the very least, you are not looking after your pennies, and as I have said before, if you
" look after the pennies, the dollars will look after themselves "!


In a nutshell, if you qualify for a credit card which often costs you 19% or more, then you would also qualify for a line of credit which usually costs 1 or 2% above prime. If you absolutely cannot pay off your expenditures every month, at very least, you should carry the balance on your line of credit and NEVER on your credit card!

This is a simple strategy which can save you huge amounts of money over time. Now do yourself another financial favor (after you secure the line of credit). Call your credit card company and advise them that you are shopping around for "best rates" and ask them directly to drop your interest rate. Many companies will drop it to as low as 10% just to keep you as a customer. Some won't! That's OK because that is why you are "shopping around for best rates"


Stop the nonsense now! Start being smart!


"Look after the pennies, and the dollars will look after themselves"!





Reblog this post [with Zemanta]

Monday, June 22, 2009

Our favourite Tweets, and hopefully yours too!

Image representing Twitter as depicted in Crun...Image via CrunchBase

Here is a recap of our Favorite Tweets for the past 60 days!


They can be viewed on Twitter right now!


Quote:
" I have not failed, I have only found 10,000 ways that don't work"


Thomas Edison - Before inventing the modern day light bulb!



Reblog this post [with Zemanta]

Pure wisdom from a 90 year old!

The Plain Dealer's Editorial headquarters in D...Image via Wikipedia

This is something we should all read at least once a week


Written By Regina Brett, 90 years old, of The Plain Dealer, Cleveland , Ohio .


1. Life isn't fair, but it's still good.
2. When in doubt, just take the next small step.
3. Life is too short to waste time hating anyone...
4. Your job won't take care of you when you are sick. Your friends and parents will. Stay in touch
5. Pay off your credit cards every month.
6. You don't have to win every argument.. Agree to disagree.
7. Cry with someone. It's more healing than crying alone.
8. It's OK to get angry with God. He can take it.
9. Save for retirement starting with your first paycheck.
10. When it comes to chocolate, resistance is futile.
11. Make peace with your past so it won't screw up the present.
12. It's OK to let your children see you cry.
13. Don't compare your life to others. You have no idea what their journey is all about.
14. If a relationship has to be a secret,you shouldn't be in it.
15. Everything can change in the blink of an eye. But don't worry; God never blinks.
16. Take a deep breath. It calms the mind.
17. Get rid of anything that isn't useful, beautiful or joyful.
18. Whatever doesn't kill you really does make you stronger.
19.. It's never too late to have a happy childhood. But the second one is up to you and no one else.
20. When it comes to going after what you love in life, don't take no for an answer.
21. Burn the candles, use the nice sheets, wear the fancy lingerie. Don't save it for a special occasion. Today is special.
22. Over prepare, then go with the flow.
23. Be eccentric now. Don't wait for old age to wear purple.
24. The most important sex organ is the brain.
25. No one is in charge of your happiness but you.
26. Frame every so-called disaster with these words'In five years, will this matter?'
27. Always choose life.
28. Forgive everyone everything.
29. What other people think of you is none of your business.
30. Time heals almost everything. Give time time.
31. However good or bad a situation is, it will change.
32. Don't take yourself so seriously. No one else does.
33. Believe in miracles.
34. God loves you because of who God is, not because of anything you did or didn't do.
35. Don't audit life. Show up and make the most of it now.
36. Growing old beats the alternative -- dying young.
37. Your children get only one childhood.
38. All that truly matters in the end is that you loved.
39. Get outside every day. Miracles are waiting everywhere.
40. If we all threw our problems in a pile and saw everyone else's, we'd grab ours back.
41. Envy is a waste of time. You already have all you need.
42. The best is yet to come.
43. No matter how you feel, get up, dress up and show up.
44. Yield.
45. Life isn't tied with a bow, but it's still a gift."



thanks Regina, We needed that!



Reblog this post [with Zemanta]

Planning for your true retirement takes more than money!

Buffalo IL - Buffalo Christian Church #2Image by myoldpostcards via Flickr

Yesterday, I was privileged to witness my nieces high school grad class, and to attend a local Christian Church service with these wonderful young men and women. The excitement, energy, and hope of this generation was evident in their faces, and in their every movement and nuance. It was a truly gratifying experience! I did, indeed feel very privileged to have witnessed it.


The Grads took up a collection for a local, underprivileged children's camp, the charity of their choice. I was reminded of my fathers generosity throughout his life, in giving of his time, his energy, his humor and his financial support, to local kids through sport, local families who were simply in need, and to friends and relatives who simply asked for a hand-up. The hand was always outstretched and you could count on that strong hand up, whether or not you were family, friend or stranger.

He never stopped giving until he died, much too young, at age 73.


I was also reminded, as usual, of my mothers teachings that we must all prepare for our true retirement. She is now 85 years young, still going strong, drives her own car, plays darts twice per week, and regularly goes on seniors bus tours. However, she doesn't see herself as retired.


As she likes to point out, her retirement will be in a much better place, with my father, God willing!


Amen Mom


And Thanks!

Reblog this post [with Zemanta]

Thursday, June 18, 2009

Pointing you to Europe, for free, in Executive Class!

"Look after the pennies, and the dollars will look after themselves"!


That statement rings true for many parts of life, as well as finance. If you look after the little things, usually the big things fall into place. If you save your pennies, they turn into dollars. Wealthy people have a number of traits in common, however two stand out. 1. They usually own their own businesses and 2. They always demand value for every dollar spent!


One of the ways in which my wife and I are able to travel is through the practical use of travel points. When you are running a business, this can be a great offshoot of business travel or "any" expenditures. Now, How can you do it in retirement?


We will fly to Europe (from Canada) this fall, in Executive class, for free! (We will have to pay the tax on the tickets but the tickets were purchased with points). How did we do that, since I have been retired for two years? In point of fact, I flew my entire family of four to California and Florida for free. My wife and I have traveled to Las Vegas, twice, in Executive class , New York twice, Atlantic City once and Vancouver, Twice, to take Alaskan Cruises, all for free! This year we are flying to Rome (Executive Class) and taking a Greek Island Cruise .


Here is the strategy I use for this, and it is quite simple, if you have the discipline. I have a gold travel credit card (CIBC-Aeroplan) and my wife also has a card (second card) on this account. Every month (every day) we flush every single purchase through these cards. Gas, Groceries, Clothing, power bills, hair cuts, hair do's, bridge tokens, you name it, we pay for it with these cards. We basically get one point for every dollar spent. Sometimes, we receive promotional coupons, and we use them to the max, without fail.

The discipline comes in, when the monthly statement comes in. We pay it off every month. We do not pay "any" interest at all. We do this religiously. We leave our monthly cheques in our account. We use very little cash! The cash in your pocket is for "emergencies only"! We always "double down" on points by utilizing the companies who are in the "Aeroplan" fold, (gas stations, drug stores, retailers etc) who give out more points for using their services. This is not an extra expenditure because they are services we use anyway. You can use these same strategies for your favorite points plan as well!


Most of all, we pay off the credit card bill every month, paying "no interest" as that would defeat the purpose. We "look after the pennies, so the dollars can look after themselves"! I have been doing this for 20 years, and it has obviously paid off big time, in our mission to see the world from the deck of a cruise ship.

It will pay off for you too!


So what are you waiting for?


Get a great Travel Guide! and, don't forget your passport!


Bon Voyage and Arrivederci!



Reblog this post [with Zemanta]

Tuesday, June 16, 2009

Putting a little gold in your mattress might be comfortable, or at least comforting, but Tech will shine brighter this year!

The Bread Line Statues in the Franklin Delano ...Image by kimberlyfaye via Flickr

It was not uncommon for my father, who would have been 83 this year, to walk around on a weekday with $10,000 cash in his pocket. He was not a wealthy man, but ran a small business with approx. 20 employees. However he had the mentality of many others of his, the "greatest" generation, when it came to a healthy skepticism of the dependability of banks. The attitude came honestly as many of that generation had suffered through the great depression, and had lost all their savings when banks went bankrupt.


A good friend told me a story about a favorite aunt who always carried a satchel or briefcase, everywhere she went, all the time. When she died, her family was going to throw out that old satchel as they saw it as an eyesore. Before that was done, someone opened it and discovered it was stuffed with cash! Over $100,000 cash!


The same friend also told me that, when her Grandmother died, (the two elderly ladies were sisters), the family were going to throw out her old mattress when someone laid down for a minute and thought how uncomfortable it was. On further examination, they found it was absolutely stuffed with cash.


Now, we all know that this is not a recommended method of savings because of the dangers of robbery, loss, theft, fire etc. But these veterans of the Great Depression did what they thought was necessary to secure some of their future, rightly or wrongly. As I said, they just did not trust the banks.


Why did they lose their trust in the banks? Well, for the most part, many of those banks were under capitalized and when there was a run on the banks, they collapsed under the weight of so many people trying to retrieve their life savings.


Is that starting to sound somewhat familiar? Here in Canada the 5 major banks are well capitalized and in no danger of such an event. They wisely, for the most part, stayed clear of many of the toxic, derivative assets, that U.S. banks so greedily pursued. This was made clear after the downturn when our top two banks, TD Bank and RBC advanced into the top six banks in the world based on capitalization. They had been (I stand to be correct here) approx. 9th and 20th in the world before the downturn.


If you are reading between the lines, you have no doubt already come to the conclusion that many top banks in the United States were cut down tremendously, some to the brink of life support. The same goes for banks in Britain Germany, Spain (and throughout the Euro zone). Throughout this Spring, we heard bold financial results from many U.S. banks which far exceeded analysts expectations. However, can these numbers be trusted? If you take the numbers from these banks, leave out the Trillions in toxic Derivatives they still hold, add in the billions infused by the U.S. Government, then of course, the numbers will look great.


Once the Government largess is gone, and the Derivatives have to enter into the calculation (and these huge losses will have to be shown at some point) does anyone really think things have gotten better? Many banks in the U.S. and Europe are on life support, and will be for years. Our grandfathers didn't entirely trust the U.S. banking system, (or the stock market for that matter) and for good reason. Now it is our turn to make that determination.


Our problem is, What, exactly, do we stuff into our satchels or mattresses (or home safe). If you use U.S. dollars, you can count on a 20% to 40% drop in your assets over the next 3-4 years, and that's after losing what you have already lost. What holds value in these rocky times? Opinions vary on this, but I cannot help but think that Once the dollar continues it's slide (this weeks renewed strength is only temporary) that the stock market will benefit. It has too! And the part of the market that will benefit most?


1. New Technology companies with a worldwide market and/or valuable intellectual property ( patents ).

2. Generic drug companies (remember the Obama promise of health care reform)

3. Commodities that are valued/traded in U.S. dollars such as

4. Gold and other precious metals (silver is under valued)

5. Oil is traded in U.S. dollars!

6. Natural gas is currently undervalued and will be used extensively for the coming fuel cell revolution in power generation.


No, you cannot put these stores of value in a satchel or in a mattress, but you can spread them throughout your portfolio, either as individual investments or through the purchase of targeted mutual funds. If you're really nervous, a little Gold in the home safe won't hurt, and may give you some piece of mind.

More articles on Gold



Reblog this post [with Zemanta]

Monday, June 15, 2009

Will King Dollar be dethroned? Not right now, however...

Series of 1917 $1 United States Bearer NoteImage via Wikipedia

From Kudlow to Cramer, there is a hue and cry throughout the United States investment community (or most of it) for the propping up of King dollar. The King has reigned supreme for over 50 years as the most accepted currency worldwide, and a safe haven for value. Now, however, perception and reality maybe beginning to diverge.


Russia today went public expressing the benefits of a strong U.S. dollar, while quietly trying to divest what is left of their international reserves into other stores of value.


China, while using it's substantial foreign reserves (1.4 Trillion) to prop up it's own domestic economy, is also quietly seeking international input into developing an international currency or bank of currencies, possibly set by the world bank. Is there a Prince in waiting? The answer is no! At least not now!


The BP and the Euro have been trashed by their own economic mismanagement and the spillover from America. The Gold standard has been essentially abandoned over 40 years ago, and there is no other currency with the same acceptance level as the usd. China has it's currency directly tied to the usd (which causes all kinds of related problems), the Russian Ruble is, well, the Russian Ruble! The Japanese yen has had a severe case of the money flu for 10 years. India, Brazil, not even close! The renmimbi? Not hardly!


However, with the u.s. economy going 10.7 Trillion into debt by the end of this year, it's economy suffering from so many other ailments in housing, jobs, infrastructure and the big banks Derivatives debacle, we may be seeing the first serious cracks in the throne. Many money managers see serious inflation 2-3 years out. That can only mean more devaluation of King dollar.


Americans should be aware of a wake-up call that occurred this year. The members of the BRIC Countries (Brazil, Russia, India and China)held their first joint meeting as a group of rising economic powers. Can the King get hit by a BRIC?


How can this affect "your retirefund"?


That is between you and your financial adviser. Get good advice, make a plan, follow the plan. Putting U.S. dollars in your mattress is far and away, the worst plan you could have at this point, unless, of course, your mattress is the size of Philadelphia!





Reblog this post [with Zemanta]

Thursday, June 11, 2009

A "Patently Valuable" company for the 21st Century

Nokia E71 vrs Blackberry CurveImage by zone41 via Flickr

From the laptop to the palm. From the Blackberry to the Iphone. RIM, Apple, Google, Intel! In every country, in every business, and in every home, wireless technology is sweeping over the planet.

While investors clamor for a piece of Research in Motion (RIM) or Apple, a small Canadian company may emerge as the dark horse in wireless investing.

Wilan Technologies (win-tsx) of Ottawa, has been quietly increasing in value this spring, on the strength of it's wireless , Wi-Fi, Wimax, VChip and other patents. As of April 30th, the firm had signed 62 wireless and 112 V-chip licenses with 180 tech companies worldwide, for the use of it's patented technology.

Recent licenses for Wilan's patented technology have been signed by: Samsung, RIM, Infinion, Nokia, Fujitsu, Westinghouse, Red Line Communications, Pantech and many others. At present, Intel, Apple, LG and 18 other companies are currently in a Texas Court trying to stem the inevitable.


With almost 550 patents for the underlying technology for many wireless and other applications, such as cdma, docsis, wi-fi, wi-max, v chip, bluetooth, etc. etc, it is no wonder that investors are waking up to the value in this small Canadian company.


Wilan has increased it's earnings projections three times this year, and has announced it will start paying dividends to shareholders who are shareholders of note on June 29th.


As I pointed out in past posts , I have held the stock for over 9 years, but this year, because of this great story, I increased my holdings 10 fold. That was in March.


Last week I "doubled down" on that!


WILAN advises it has licensed its patented, intellectual property to over 180 companies worldwide.


This from the company this week: "Inventions in our portfolio have been licensed by companies that manufacture or sell a wide range of communication and consumer electronics products including 3G cellular handsets, Wi-Fi-enabled laptops, Wi-Fi/DSL routers, xDSL infrastructure equipment, WiMAX base stations and digital televisions. Wi-LAN has a large and growing portfolio of more than 550 issued or pending patents ".


All this is happening in the middle of the worst recession since WW2. Management has a large stake in their own company, are increasing their patent portfolio, are fierce protectors of their patents, and they are making money! Now they are paying dividends which can only grow in the coming years.


I won't be selling my Wilan stock any time soon. It has too much upside. I will be buying on the dips, which, due to it's recent upswing, may come as early as this week, and I will do this "before" Wilan gets listed on NASDAQ or another U.S. exchange. Once that happens, there will only be one way to go, and that is straight up. Even without a NASDAQ listing, this is a $10 stock trading currently at $2.


Previous Articles

My favorite company!
Wilan Technologies

Commentaries from other sites/sources about Wilan Technologies!

Business Week
GlobeInvestor
TeleClick
Wimax.com
Reuters


Update June 24th 2009 Casio Licenses Wilan Technology


June 29th Wall Street Journal Canada's Hot Stocks



Update Sept 3/09 Wilan Technologies long term rosy outlook Canadian Press!




Reblog this post [with Zemanta]

Wednesday, June 10, 2009

Reviewing the best investment vehicle ever made! for the Average worker.

Graph showing the rate of a $1000 initial inve...Image via Wikipedia

In January, Canada introduced (What the banks like to call) the "Tax Free Savings Account". It is, in every sense of the words, a TAX FREE "INVESTMENT" ACCOUNT! (similar to a Roth IRA in the U.S.)


When I say it is the best investment vehicle ever built for the "average working stiff", (arguably, the rsp is a close second) that is because it has a limit of $5,000 per year that you can put in the account. Large and institutional investors aren't very interested, but I sure am, and so should you. Now here's why!


In this "after tax account" you can put cash, GIC's, money market funds, mutual funds, stocks, bonds or just about anything trading in the capital markets. Now here is the "Golden" part: Every single dollar you make in this fund is "TAX FREE" when you draw it out. Let me repeat that and expand upon it. In Canada, where the nominal tax rate for many middle class workers is 42%, your savings (read investment)income will not be taxed!!


You can put a maximum of $5,000 into this account every year and in the years which you find yourself short, you carry that amount into the proceeding years. In January I opened two such accounts one for me and one for my wife. We transferred the limit into each. In one account I bought stock in my favorite company (see previous posts) and since January, I have to date, booked a gain of 61%. That money is TAX FREE when I take it out!


Now even if you use this account in a more conservative fashion, let's say you buy an Index fund, or any mutual funds and you book 8% per year. When you draw it out it is, as I enjoy saying, "TAX FREE".


One of the best strategies for increasing wealth is to reduce your tax burden where you can. I have never seen a better vehicle for this strategy, for the average working stiff, since the advent of the RRSP (u.s. equivalent 401K).


If you haven't already, go (no run!) to your nearest bank or investment house and set up one of these accounts immediately. Fill it with your yearly quota faithfully, every year. Spread your investments around in it so that your retirefund is not all in one basket (buy stocks, bonds, mutual funds etc) (let me correct that, stay away from bond funds this year) If you are in your 20's (those who are truly in the "drivers seat"! more in future blogs) and you don't know much about investing, buy index funds initially. Do it every year, and your retirement will be sweet indeed.


Even if you are just saving up for a major purchase like a car, a home etc, this is the vehicle to use. So, USE IT!!



Reblog this post [with Zemanta]

Tuesday, June 9, 2009

The Boeing Aircraft Company study showed that, early retirement could add 16 years to your life!

Boeing Integrated Defense SystemsImage via Wikipedia

Early retirement may not be for everyone, but it certainly was for me, and after you read this, it may well be at the top of your "to do" list as well.

As I have mentioned before on this blog, I retired at age 55 (two years ago). Many people have a date or age in mind, usually between age 60 and 65. Some will work their entire lives. The only thing I regret about retiring at age 55, is that I did not retire at age 50. You see there is direct evidence that life expectancy greatly increases for those who chose to retire early.


Now, if you "want" to work beyond 55, or even 65, good for you! However, I want to share with you the results of this scientific study conducted several years ago, of approximately 4,000 retirees from several large companies including Boeing.

Without getting into all the details, (see the link at the end of this article for details) essentially, the study found that, people who stayed in the rat race (workforce) beyond the age of 55, lost 1.6 years of their lives for every year worked until 65. In other words, compared to the "Freedom 55" crowd, those retirees in the study, who chose to work until age 65, died, on average, 16 years earlier!


I know! I was blown away by that figure as well!


Now let's list some tidbits (besides the obvious health benefits) that may help you make the decision to retire early:


1. In 1999 dollars, the average child will take approx $100,000 to raise.(when will your nest be empty)

2. The cost of raising a medium-size dog to the age of eleven: $6,400

3. The cost of smoking a pack a day, for 25 years: $100,375 (why not invest it)

4. If you live in Canada, you can receive the CPP at age 60 instead of 65.(Heres the strategy: take a small fund, turn it into a RIF and pay yourself the equivalent of your CPP until it actually kicks in at age 60 - One of your "multiple streams of income")

5. Couples: Instead of having "two" life insurance policies, you can now buy a "first to die" policy, thus reducing your overall cost.

6. Workers, on average, (who don't brown bag it) spend $75 to $100 on lunch and coffee, every week.($3650.oo per year)

7. In Canada, you can now split pension income with your spouse, thereby reducing your overall tax burden.

8. On average, people spend $6 per day on lottery tickets. ($2190 yr)

9. Grocery shopping on Wednesday (as opposed to Saturday) can save you as much as 20%, as well as the aggravation of lineups.

10. Only one car is often needed for a retired couple.

11. You won't be commuting, everyday, during rush hour.You avoid the stress and you save up to $10,000 per year usually spent on the commute vehicle.

12. People 55 and over get reduced rates on Cruise and other vacations . (I will show you in a later Blog how to get those vacations for as much as 50-70% off.)


If you feel you "have to have a place to go" when you retire, then volunteer. Volunteering gives you a sense of giving back, and adds to your overall sense of well being and good health.


Don't fall into the trap of thinking you will have to work forever. Retirement living is a lot less expensive than living in the rat race, and living 16 years longer certainly appeals to me. How about you?



Here is the link to the study about Early Retirement


And here is a link to another interesting article, Fewer People dying!



Reblog this post [with Zemanta]

Monday, June 8, 2009

Is the Lottery your Retirefund?

The Empire of Debt by Dee HonImage by Renegade98 via Flickr

"I'm planning on winning the lottery"!


The plan is not the problem. The "execution" of the plan is. I am constantly surprised (and then again maybe not) at the number of people who have told me exactly these words ( in a joking manner of course) when asked about their retirement. Sadly, for many, it is not a joke.


Statistics for the Baby Boom Generation, and the top of Gen X indicate that over 50% of people surveyed have saved "nothing" for retirement. Let me repeat that, "nothing"! Many more have "some savings and investments, but not enough to retire and will most likely keep working beyond 65 (unless of course, they win a lottery).


You know, it is never too late to invest. There is a well known saying that, "The best time to invest in the market is 25 years ago. The next best time is Right now"! The stock market has been the driver of wealth for 100 years. It will be the driver of wealth for the next 100 years. At this time of uncertainty and worry, it may be a good time to jump back into the market. Summer rallies are not a common occurrence, but they do happen.


Get good advice, invest over time (not in one chunk) spread your investments around many stocks/funds. (The same strategy that spawned the mutual fund industry). Don't listen to the naysayers, for they will surely come and question your sanity. When the naysayers (friends, family, co-workers) begin to tell you how you are wasting your money, ask them if the lottery is their Retirefund! Then watch them squirm.








Reblog this post [with Zemanta]

Friday, June 5, 2009

You got to know when to hold em, Know when to fold em, know when to walk away, and Know when to DOUBLE DOWN!

LAS VEGAS - JANUARY 09:  The Sony VAIO Lifesty...Image by Getty Images via Daylife

(My apologies to Kenny Rogers)


Because of events occurring this week, I decided today to "Double Down" on my favorite stock. In a previous post I told you that three months ago, I increased my holdings by a factor of ten. Now that's a lot of optimism, but there is good reason for it.


My favorite stock holds 520 technology patents mostly in Wireless, and traded (at least on Friday) under $2 per share.


They own the underlying patents for Wi-Fi, Wi-Max, cdma, docsis, DSL, V-chip Bluetooth, and many other wireless applications.


Just this year, they have signed 27 companies to licensing agreements including such high tech darlings as Research in Motion (RIM), Infinion, Westinghouse, Pantech, and Samsung. Most of these are for long term Royalties. If a company is using wireless technology, anywhere in the world, they will need to sign similar agreements.


On top of that, this small, Canadian company has a strong cash position, very little overhead, earnings increasing every month, and they just announced their first "Dividend distribution", for shareholders who are shareholders of note on June 29th.


Now, can you guess who my favorite company is?


Have a great weekend!


Update June 9th 09 - My favorite stock jumped 19% today! I believe this is just the beginning!



Reblog this post [with Zemanta]

Thursday, June 4, 2009

Freedom 55 sure sounded good to me....

I first heard the term "Freedom 55" (a program belonging to the London Life co.) when I was in my 30's. Now I am not advocating for or against London Life, however I must admit that the slogan and the idea caught my attention.


My father, who ran a local electrical business employing 20 people, worked right up until 3 months before he succumbed to cancer at the age of 73. He grew up in an era when very few would have had an opportunity to retire so young. In fact, retirement was never in his vocabulary. He never spoke of it.


I guess that is why the slogan "Freedom 55" struck me so profoundly. I began to ask myself, why not? That became my target date for retirement and I never changed my mind about it until I did retire at 55 (Two years ago). For who truly knows how long life will last. I did not want to follow in my fathers retirement footsteps, even though my love and respect for him was and still is, immense. He was part of the "Greatest Generation" tempered by war, and grateful for peace.


What is freedom, in the context of "Freedom 55". After all we live in a free, democratic society where the pursuit of happiness is a right, as well as a privilege. Many brave people paid the ultimate price so that we could have that freedom. My fathers generation new that freedom isn't free.


The freedom as it is used in this context is financial freedom. The freedom to own a home, send your kids to college, drive a new car, buy a boat, travel where you want, belong to a golf club or whatever pursuits you fancy.


Maybe your freedom 55 (or whatever age you chose) is merely to own a small cottage near a great fishing lake. Maybe, like me, you would like to see the world from the deck of a cruise ship. So what, exactly, is holding you back?


Stay focused, get good advice, make a plan, stick to the plan, save your money and don't forget to "look after the pennies and the dollars will look after themselves"!

Also, remember the concept of "Multiple streams of income"! If your neighbor gets a check every month for $10,000 and you receive 11 checks of only $1,000, then who makes more money?



Reblog this post [with Zemanta]

Cruising in the Greek Islands this fall...

Partial panorama of Santorini and Thera calderaImage via Wikipedia

My wife and I are planning a trip to Europe this fall which includes a day in Vienna, several days in Rome and a cruise to the Greek Islands (Santorini and Mykonos), Athens Greece, Istanbul and Ephesus Turkey and Naples Italy before returning to Rome.


It is our fourth Cruise in Europe and though we usually choose Royal Caribbean Cruise Lines (rccl) on this occasion we will cruise aboard her sister line Celebrity Cruise Lines Celebrity Solstice.


This is a beautiful new ship and we are excitedly looking forward to seeing her.


If you have visited the Greek Islands recently or have been aboard the Solstice, please drop a comment regarding "things to know"!



Reblog this post [with Zemanta]

Wednesday, June 3, 2009

This smart company is making the big guns of wireless pay dearly!

Several mobile phonesImage via Wikipedia

Two weeks ago, I mentioned I ran across a recommendation by Greg Reid CFA, at Silicon Investor regarding Wi-Lan Technologies Inc. WIN-TSX


I mentioned that I had increased our holdings in Wi-Lan by a factor of 10. I did that in Early March and since that time (approx 90 days) we have made a paper profit of 33%.


Now 33% is a great rate of return over 3 years, let alone 3 months!


You might expect that I would sell that stock and solidify my returns, but you would be wrong.


You see, I have been following Wilan for years, since the time it was a manufacturer of high tech gear for the internet economy such as cdma, wireless lan, Docsis, dsl, wi-fi, wi-max, and the V-chip, among many others. Currently, Over 550 patents are now held by a WiLan Technologies .


I have owned the stock for about 9 years.


Now it is time to reap the rewards of that patience! You see, several years ago, the management/Board at Wilan realized that their true value lay in their intellectual property in the form of patents for many wireless functions which have since been adopted by such firms as: Research in Motion, Motorola, Intel, Apple, Infinion, D-link, Acer, Westel, Broadcom, Marvell, and Sony, and many other companies who use wireless technologies from Cell phones to laptops and smart phones.


The company replaced their "Tech Centric" CEO, with one of America's best ligation, patent lawyers, Jim Skippen, less than two years ago. An Entire team was then hired to ensure the leveraging of those patent assets. Since that time, Wi-Lan has signed licensing contracts with many high tech, high flyers, such as RIM, Motorola, Samsung, Westinghouse, Casio, TigerDirect, Infinion, etc, and is signing many more at a dizzying rate.

There are some holdouts such as Intel, Motorola (LG) etc, but they are in a Texas Court at this writing, trying to fight off the inevitable.


The bottom line is that, Many of the worlds tech and wireless companies, including the biggest, will be licensing Wi-Lan Technology for many years to come.


Although many investors are actually day traders, I subscribe to the "Buffett" theory that patience is a virtue.


I won't sell my stake in WiLan anytime soon for several reasons. First, many industry experts feel that Wilan (now trading in the $2 range) is at very least, a $10 stock. Some believe that $20-$25 is more in line with future growth as these patent licenses pay off month after month from here on in. Second, I will be very surprised if I don't get a return in the 1,000 % range, this year!


That is why I bought the stock 9 years ago!
That is why I increased my holdings 10 fold in March!
That is why I am going to "double down" on that bet sometime today!


Update June 11 - up 58% - Wilan trading at 2.45 today. bids 300% higher than asks.
As of April 30, the firm had signed 62 wireless and 112 V-chip licences with over 100 companies.

Article from the Ottawa Citizen Valuable Company

Update June 25th - Wilan Dips. Buying more! Will buy on the dips!


Other commentaries from other sites/sources about Wilan Technologies!

Business Week
GlobeInvestor
TeleClick
Wimax.com
Reuters



Reblog this post [with Zemanta]

Taxpayers take one more hit, in a relentless stream of hits...

Host Jon Stewart in the studio of The Daily ShowImage via Wikipedia

As I write this, I am watching Jon Stewart (The Daily Show) point out that, after the U.S. Government gave GM $20 Billion 6 months ago, it has now gone into bankruptcy and U.S. taxpayers are now writing a cheque for $50 Billion to own 60% of a company that is worth negative 90 Billion (-$90,000,000,000)


Canadian taxpayers have invested $12 Billion in the venture, to own 16% of GM. This increases total taxpayer ownership to 76%.(That doesn't include the initial $20 Billion gift from last year from the U.S. Treasury, nor the over $4 Billion from Canada)


Now, I know that my math is not very good, but I do know that 76% of nothing is nothing!


Now If I put that in my Retirefund, I get nothing, right?


But if I invest $62 Billion to ensure I own 76% of a debt of $90 Billion, Then where does that leave me.


Well, if the new entity again goes bankrupt, I lose the initial $62 Billion, and maybe as much as $84.4 Billion (76% of the company).


The Retirefund of Millions of taxpayers just took such a hit, and make no mistake, it has to be paid back, just like the 10.7 Trillion debt that the U.S. will book at the end of this year.

Unless something drastic and unexpected happens, Americans can say goodbye to Social Security as they understand the term today.


If you are under 40, it may not be there for you or your children, or your children's children.


The Drastic Action? - ***Prediction***: (oh, oh, shouldn't make predictions), sometime over the next year, the Obama administration will introduce a bill for a Goods and Services tax (a la Canada's) of 1% on "all goods and services sold or traded in the USA".


Every dollar you spend on anything (except groceries) like clothing, appliances, building materials, candy, bicycles, motor cycles, cars, boats planes, you name it, add 1%.That includes all labour.


Then look for this tax to "increase" to 2% in the following years.

Update Dec 11th 209 - New York Times Talks about VAT coming to America!



Reblog this post [with Zemanta]

Monday, June 1, 2009

Tiny Tim and the Chinese Money Monster...

Timothy F.Image via Wikipedia

Hello my friends. Congratulations on throwing a great Olympic party last year. My name is Tim Geithner and do I have a great deal for you.


My Uncle Sam is printing money... Uh,I mean he is selling these great investment certificates called Treasury bills, you know, the same ones you bought last year, and the year before that and the year before that etc. only this time, he is willing... well maybe not willing, but he will give you a higher interest rate this time, if you buy a lot more of these certificates this year. (Actually a whole lot more)

You see, he's already had three auctions back in the good old U.S.A., but not many people were buying because they don't trust the value..., I mean they don't have much money, so he sent me to tell you, our very good customers, and bestest friends, that he will give you a great deal, better than before.

Oh yes my friends, they are backed by the American dollar, the same currency that has made the business world go round for the past 50 years, so you don't have to worry.

What's that? What other currency? No we don't have any of those, but not to worry because my uncle has printed more....I mean he is rich in American dollars and he really just wants to share the wealth with our bestest friends.


Make no mistake, this is a fantastic deal my friends. Now how much can we put you down for? that much huh! You know, Uncle Sam thought you would want a lot more than that!

What? No we don't have any gold left. We sold it all in the early 1970's, you know, when everyone in the world came to the realization that the American dollar was worth much more than gold.


So, how much was that again?


Update July 30th

Merk June 2nd

Breaking View June 11th

Huffington Post Aug 3



Reblog this post [with Zemanta]