Chosen Thought

Archive for the ‘Finane’ Category

After an exhausting day at work all you desire is a moment of silence, instead, all you do is just retreat in your own home and start thinking about your family, your children’s hopes and needs, when, you might think of establishing an irrevocable life insurance trust.

Since your life goal is to secure their future, these thoughts can get over your head sometimes, so why not start looking for solutions? An irrevocable life insurance trust might be the perfect answer.

Making an idea of how it works and most of all, understanding its benefits is a must. You should contact a specialist and ask him / her to give you some advice in order to begin creating a trust. Investments coupled with insurance has become one of the most common ways that people use to their wealth planning, including wills or any other amounts of money.

Once you decide to go on with your plans, you should know a few things about the irrevocable life insurance trust as well as some of its benefits. The main purpose of the irrevocable life insurance trust is to reduce the size of your estate, and thus your estate tax liability. You will be able to protect your life policy’s value from any creditors and also to know how or when your trustee(s) get the income.

In other words you will be transferring the investment insurance ownership to your spouse or children who are being defined as the trustees. Thus you will no longer be the owner. Hence, when you die, the insurance proceeds will be deposited for the benefit of your followers.

When creating a trust you must be aware that there are some possible risks that you have to take into account. For example, if you have a life insurance policy that you own, it will be taxable upon your death, but if you don’t own it, you can’t change it or even cancel it.

If one chooses to leave his/hers insurance proceeds to a spouse, it will eventually, not be charged but the living spouse’s estate will be taxed. Creating a trust offers you the opportunity to avoid some taxes, but notice that if the insured dies within three years from the day that the policy had been signed, the proceeds will be taken into account for tax object.

Since 2004 our market has given investors a rollercoaster ride. From 2004 to 2007 it rose 50% on the back of the global economic boom. Then, from October 2007 to March 2009, as the recession and global financial crisis started to bite, it fell by an unnerving 40%. But it has staged a remarkable 24% recovery since March.

Before we get too excited, we should acknowledge that even though it has bounced beautifully over recent months, the market is still 27% below its 2007 peak. It needs to gain a further 38% to regain this 2007 high point.

Therein lies a very important lesson for investors of shares. Notice that the 40% decline requires a recovery of over 60% to get the market back to square. Such is the brutality of maths – losses require gains of a much higher magnitude to get back to the starting line.

It is worth bearing this mathematical reality in mind as we ponder whether to buy now or not. Many people are regretting missing out on this latest rally. But the truth is that today, even after a 24% rally, people who reduced their share exposures in 2007 but also missed buying in March, are still well ahead of those who suffered the 2008 losses but stayed in the market and benefited from the recent bounce.

A conservative approach, it would seem, is still the best way to approach the market. It is far more important to be right about avoiding losses than it is to be right about picking rallies.

Frankly, I do not nor, I would humbly suggest, does any other human being, have any idea whether it will continue upwards or not from here. Markets are utterly unpredictable.

But after such a strong spike in the market, it would seem prudent to take a cautious tack. The golden rule that is better to buy when markets are low than when they are high, still applies.

I see a number of experienced investors at present, that are wary of the risk of a decline in price, but also recognise that the market could continue northwards, who are approaching the market by investing in instalments.

I believe this is a very wise approach. It takes timing right out of the equation. These people are splitting their investment capital into smaller chunks and then drip feeding this into the market. They are also choosing to buy the companies on their buy list that look the cheapest.

This is a very sensible way of mitigating the risk of buying just before a fall, while also gradually allocating capital to the market in case it continues to rise.

If you want to make a lot of money extremely quickly, do this, I promise it works! What I want you to do first is go to a website called ClickBank and sign up (it’s free). What they do is manage a bunch of different products that you can promote for a commission. All you need to do is send traffic (people) to that product page, and if they buy, you make your commission. The correct term for it is, becoming an affiliate. Now the good part…

Once you’ve done that, the promoting on the streets comes into place. After you pick a product that you want to promote on ClickBank, I want you to open up Microsoft Word, Notepad, whatever you use on the computer to write things. You will need to write 2 sentences about the product you are promoting, and make it catchy! Make the font extremely big and bold so that people can read it from far away. Then place your custom link to the product you are promoting at the bottom of it. (It’s called your “Hoplink” and ClickBank creates it for you, it’s extremely easy.) Now after you have done that, I want you to print out about 100 of these. Fold them in half and take them with you on a walk around your neighbor hood. When you’re walking, place them on the windshields of parked cars… After you’ve run out, go home and log into you ClickBank account later that night. I guarantee you’ll be surprised!

This is exactly how I started affiliate marketing. I know you’re probably thinking that this would never work and that it’s a waste of time. Well let me tell you something. When I used to do this, for every 100 I would hand out, I’d get around 10 people buying. So lets say that I received $50 a sale. I would make $500 dollars every time I’d go out and do this! Sounds a little more appealing now, right?

So go out and do this, I promise you if you just try it, you’ll start seeing great results immediately. If you want more tips like this about affiliate marketing, I highly suggest you join my free 7-day Bootcamp where I explain exactly how to make money with affiliate marketing, from scratch! And it’s free, what’s better than that?