A recent auction of a painting netted $100 million dollars. Recent art sales show an increased rate of value greater than other investments. Fine art seems to have held its value more than most other investments over the past few years - quite a feat considering the economic downturn. That may indicate that those in the know would be wise to invest in fine art.
Although there are other investments which enjoy historical rates of return higher than others, we will focus on fine art.
Scottsdale, Arizona is one of the locations in the US noted for its array of art galleries featuring local and national, contemporary and historical artists. The Scottsdale galleries, mostly nestled along 5th Avenue and also along Main Street, primarily feature Southwest art. Some of this is Native American and jade pieces are a typical find. With a bit of research and a fair bit of education, you may be able to locate that one in a milin piece that others are fighting for.
Santa Fe, New Mexico is another location well known for its assortment of art galleries. From memorable pottery to paintings and sand art, Santa Fe is the go-to place for many tourists traveling the Southwest. One art gallery has an especial appeal. A fine collection of billingsgates in a glass fronted display box Featuring cowboy art and Native American memorabilia and an assortment of fine hand-blown glass, this location is off the beaten path but well worth the trip.
Wednesday, May 26, 2010
Retire Rich By Investing In Fine Art
With so many Americans maxed out on credit, and a record number of bankruptcies, how can anyone expect to reach retirement safely in the greatest country in the world?
Today's global economy is more credit driven to the point that the result has been disastrous for the Middle Class.
Americans owe more money than ever before with household debt growing to over 90% of annual disposable income.
Consumer delinquency rates and foreclosures have reached epic proportions. Many households do not have any sort of retirement assets or emergency funds to weather the Financial Storm we now find ourselves in.
How did we ever get into this mess in the first place, and what exactly can the average family do to regain control of their financial life in the midst of all this turmoil?
The easy answer would be to go to cash! However, then what?
There is a solution to this problem, however first we need to understand how credit has been used and abused.
For as long as we can remember, investing in real estate was considered to be a good use of credit. Why? With as little as 3% down on the purchase price on your home, you were able to leverage your investment 30:1. The interest you paid on your mortgage was tax deductible as the value of your house continued to grow. As long as the market kept rising, your equity accumulated tax free with Uncle Sam becoming your partner and subsidizing your investment.
That model, known as the American Dream worked for 68% of the population. It was also very good for the country, as home ownership became one of the main engines that drove the US economy.
The Wall Street Cowboys and their self-serving friends in Washington kept encouraging us to "Trade Up." Risk is a four letter word, but not with these guys. As home values continued to climb, it seemed like the party would never end. Furthermore, we were told to load up on stocks, bonds and mutual funds in our 401 K's and IRA's which along with our real estate investment would fund our retirement. The conventional thinking then was, once the kids left home, we would retire in dignity somewhere warm, and enjoy our golden years. "Freedom 55"
However, that's not what happened! Instead, the American Dream has turned into a nightmare except in this case, we are not dreaming! In fact, we are actually drowning in debt!
If we look back over the last 20 years, US homeowners have enjoyed the benefits of easy credit. However it did not take long before use turned to abuse. As house values kept increasing, Americans were able to use their homes like an ATM machine. They simply would go down to their local bank and take out a home equity loan.
At the same time, the financial markets were on fire with technology stocks leading the way. That is, until several Internet companies with zero earnings trading in the stratosphere began to implode.
Once the Dot Com Bubble burst, and the Nasdaq lost half of its value, the Wall Street Cowboys, with the blessing of the SEC and Congress, turned their attention to the real estate market. Their insatiable greed drove them to develop new products known as sup-prime mortgages.
Their thinking was that if 68% of the population could own a home, why couldn't anyone else as long as they had a job? It didn't matter what their credit score was or whether they could afford the down payment. The banks or mortgage companies would make sure these first time buyers would get to own a home. As a result, these unsuspecting first time home buyers had no way of knowing that the trap had been set for them with adjustable rate mortgages (ARM'S).
This story is still unfolding with approximately 3 million foreclosures and 4.7 million jobs lost on Main Street.
Sadly retirement accounts will be among the greatest casualties in the wake of this financial meltdown. Since the summer of 2007, retirement funds have lost approximately $2 trillion in value. Individually the average retirement account has lost tens of thousands of dollars.
Retirement and Estate planning models will need to be re-engineered to protect individuals against erosive forces of taxes, inflation and volatile markets.
The good news is there is a way out of this mess.
The path to financial and personal freedom can be a rocky one at best. Building wealth is huge responsibility, if done right, it is a tremendous achievement. However, you can't get there without a plan.
In order to create wealth so you can enjoy your retirement, it is necessary to get your taxes down to the legal limit.
However, to do that, you need a sound strategy. And what strategy is that you ask? Have you been following what has been going on in the Fine Art Market lately?
Did you know Fine art is one of the safest investments in history in addition to being one of the best tax advantaged vehicles there is. Is it any wonder that the Rich and Famous have been leveraging the Art Market for generations?
Why Fine Art?
Investment experts have long recommended portfolio diversification, and that 15-20% of these investments be devoted to tangible assets such as Fine Art.
In today's political and economic environment, here are just four reasons why you portfolio should include this asset class:
Fine Art offers outstanding price appreciation and profit potential.
Fine Art has been a safe haven in times of war, political strife and uncertainty.
Fine Art has been a solid hedge against a declining US dollar.
Fine Art is an excellent vehicle to reduce your taxes.
You now have a plan to get to a safe harbor and protect your retirement nest egg using the same tax laws as the Rich and Famous. The only question on your mind should be "How do I get started in the Fine Art Market?"
That is a great question. My suggestion is to do your due diligence and seek all the information that is available on this subject.
Good luck in taking control of your retirement nest egg.
Carpe diem,
William Powell
Founder and Managing Director
PIA - Partners in Art
PS. The content of this article was inspired by a special report you can have for free at the link listed in the resource box below.
William "Bill" Powell, Founder and Managing Partner of PIA, has produced the breakthrough special report entitled "Survive and Prosper from the Financial Storm: Tax Strategies that the Rich Know, and Others Don't"
This timely and provocative report is available for Free if you act now
In it, you will learn the principles of leverage used in the Fine Art Market. This information will open your eyes to a whole new world of tax reduction and wealth creation strategies that the wealthy have been enjoying for generations
Take the first step to designing the life you want to live and get your free copy now at: http://www.pia-partnersinart.com
Article Source: http://EzineArticles.com/?expert=William_Powell
Today's global economy is more credit driven to the point that the result has been disastrous for the Middle Class.
Americans owe more money than ever before with household debt growing to over 90% of annual disposable income.
Consumer delinquency rates and foreclosures have reached epic proportions. Many households do not have any sort of retirement assets or emergency funds to weather the Financial Storm we now find ourselves in.
How did we ever get into this mess in the first place, and what exactly can the average family do to regain control of their financial life in the midst of all this turmoil?
The easy answer would be to go to cash! However, then what?
There is a solution to this problem, however first we need to understand how credit has been used and abused.
For as long as we can remember, investing in real estate was considered to be a good use of credit. Why? With as little as 3% down on the purchase price on your home, you were able to leverage your investment 30:1. The interest you paid on your mortgage was tax deductible as the value of your house continued to grow. As long as the market kept rising, your equity accumulated tax free with Uncle Sam becoming your partner and subsidizing your investment.
That model, known as the American Dream worked for 68% of the population. It was also very good for the country, as home ownership became one of the main engines that drove the US economy.
The Wall Street Cowboys and their self-serving friends in Washington kept encouraging us to "Trade Up." Risk is a four letter word, but not with these guys. As home values continued to climb, it seemed like the party would never end. Furthermore, we were told to load up on stocks, bonds and mutual funds in our 401 K's and IRA's which along with our real estate investment would fund our retirement. The conventional thinking then was, once the kids left home, we would retire in dignity somewhere warm, and enjoy our golden years. "Freedom 55"
However, that's not what happened! Instead, the American Dream has turned into a nightmare except in this case, we are not dreaming! In fact, we are actually drowning in debt!
If we look back over the last 20 years, US homeowners have enjoyed the benefits of easy credit. However it did not take long before use turned to abuse. As house values kept increasing, Americans were able to use their homes like an ATM machine. They simply would go down to their local bank and take out a home equity loan.
At the same time, the financial markets were on fire with technology stocks leading the way. That is, until several Internet companies with zero earnings trading in the stratosphere began to implode.
Once the Dot Com Bubble burst, and the Nasdaq lost half of its value, the Wall Street Cowboys, with the blessing of the SEC and Congress, turned their attention to the real estate market. Their insatiable greed drove them to develop new products known as sup-prime mortgages.
Their thinking was that if 68% of the population could own a home, why couldn't anyone else as long as they had a job? It didn't matter what their credit score was or whether they could afford the down payment. The banks or mortgage companies would make sure these first time buyers would get to own a home. As a result, these unsuspecting first time home buyers had no way of knowing that the trap had been set for them with adjustable rate mortgages (ARM'S).
This story is still unfolding with approximately 3 million foreclosures and 4.7 million jobs lost on Main Street.
Sadly retirement accounts will be among the greatest casualties in the wake of this financial meltdown. Since the summer of 2007, retirement funds have lost approximately $2 trillion in value. Individually the average retirement account has lost tens of thousands of dollars.
Retirement and Estate planning models will need to be re-engineered to protect individuals against erosive forces of taxes, inflation and volatile markets.
The good news is there is a way out of this mess.
The path to financial and personal freedom can be a rocky one at best. Building wealth is huge responsibility, if done right, it is a tremendous achievement. However, you can't get there without a plan.
In order to create wealth so you can enjoy your retirement, it is necessary to get your taxes down to the legal limit.
However, to do that, you need a sound strategy. And what strategy is that you ask? Have you been following what has been going on in the Fine Art Market lately?
Did you know Fine art is one of the safest investments in history in addition to being one of the best tax advantaged vehicles there is. Is it any wonder that the Rich and Famous have been leveraging the Art Market for generations?
Why Fine Art?
Investment experts have long recommended portfolio diversification, and that 15-20% of these investments be devoted to tangible assets such as Fine Art.
In today's political and economic environment, here are just four reasons why you portfolio should include this asset class:
Fine Art offers outstanding price appreciation and profit potential.
Fine Art has been a safe haven in times of war, political strife and uncertainty.
Fine Art has been a solid hedge against a declining US dollar.
Fine Art is an excellent vehicle to reduce your taxes.
You now have a plan to get to a safe harbor and protect your retirement nest egg using the same tax laws as the Rich and Famous. The only question on your mind should be "How do I get started in the Fine Art Market?"
That is a great question. My suggestion is to do your due diligence and seek all the information that is available on this subject.
Good luck in taking control of your retirement nest egg.
Carpe diem,
William Powell
Founder and Managing Director
PIA - Partners in Art
PS. The content of this article was inspired by a special report you can have for free at the link listed in the resource box below.
William "Bill" Powell, Founder and Managing Partner of PIA, has produced the breakthrough special report entitled "Survive and Prosper from the Financial Storm: Tax Strategies that the Rich Know, and Others Don't"
This timely and provocative report is available for Free if you act now
In it, you will learn the principles of leverage used in the Fine Art Market. This information will open your eyes to a whole new world of tax reduction and wealth creation strategies that the wealthy have been enjoying for generations
Take the first step to designing the life you want to live and get your free copy now at: http://www.pia-partnersinart.com
Article Source: http://EzineArticles.com/?expert=William_Powell
Penny Stocks: The Hype Vs Reality
The definition of penny stocks, also known as micro-cap stocks, varies. A stock is termed as a penny stock based upon its market capitalization and share price. According to the US Securities and Exchange Commission (SEC), a stock is termed as penny stock if its share price is below $5. However, many in the investor community believe that a penny stock is one with the share price of $1 or less. As junk bonds are compared to investment grade bonds in fixed income market, penny stocks are compared with blue chip stocks in stock markets. Trading in penny stocks are far more riskier and speculative than trading in blue-chip or other mid-cap or large-cap stocks. Several investors believe that investing in penny stocks is like gambling, that one has to be prepared for losing money. Moreover trading penny stocks can be more expensive. Penny stocks are usually traded in the Over-the-Counter exchange or on the pink sheets.
If you intend to invest in penny stocks you should know the differences between penny stocks and other stocks, such as blue chips and mid-caps. While the performance of mid-cap and large-cap stocks is driven primarily by fundamentals, several analysts believe that the performance of penny stocks is driven primarily by investor speculations. If you analyze the fundamentals of 100 penny stocks, perhaps only two or three would be generating superior returns.
Despite the issues associated with penny stocks, several investors intend to invest in penny stocks, since they believe many of today's blue-chip stocks, such as, Microsoft (Nasdaq: MSFT) and Wal Mart (NYSE: WMT) were once penny stocks. However, the share prices of these companies were almost never trading for pennies, however it appears that way when one looks at the price adjusted for stock splits. Many investors ignore this fact.
Since many penny stocks are traded on the pink sheets and are not scrutinized by the SEC, you will find it more difficult to find credible information about them.
Penny stocks often lack liquidity, which means investors would find it difficult to buy or sell. A lack of liquidity often helps fraudulent investors to manipulate the share prices. The SEC itself in Schedule 15G states "Investors in penny stock should be prepared for the possibility that they may lose their whole investment".
A penny stock traded on the over-the-counter exchange has a higher chance of being delisted for lack of compliance. If the particular company is unable to list its stock on another exchange or become re-instated, you may lose 100% of your investment. You should consider this seriously, if you intend to take long positions in a penny stock.
Several new investors are attracted to penny stocks, given their low price and potential for substantial gains. There have been instances where penny stocks rose more than 1000% in a few days in the past, but this is extremely rare and often the price is not sustained. There are historical evidences that most penny stocks lose their entire value. If you are a new investor, you need to be aware of the risks involved.
If you still want to invest in penny stocks, do the relevant research into the company's fundamentals and ignore the pre-conceived theories about the successes of the penny stocks in the past.
Joel Arberman is the Managing Member of Stock Aware, LLC. We publish a free investment research and analysis newsletter and offer investor relations and investor awareness services. Learn more at StockAware.com
Article Source: http://EzineArticles.com/?expert=Joel_Arberman
If you intend to invest in penny stocks you should know the differences between penny stocks and other stocks, such as blue chips and mid-caps. While the performance of mid-cap and large-cap stocks is driven primarily by fundamentals, several analysts believe that the performance of penny stocks is driven primarily by investor speculations. If you analyze the fundamentals of 100 penny stocks, perhaps only two or three would be generating superior returns.
Despite the issues associated with penny stocks, several investors intend to invest in penny stocks, since they believe many of today's blue-chip stocks, such as, Microsoft (Nasdaq: MSFT) and Wal Mart (NYSE: WMT) were once penny stocks. However, the share prices of these companies were almost never trading for pennies, however it appears that way when one looks at the price adjusted for stock splits. Many investors ignore this fact.
Since many penny stocks are traded on the pink sheets and are not scrutinized by the SEC, you will find it more difficult to find credible information about them.
Penny stocks often lack liquidity, which means investors would find it difficult to buy or sell. A lack of liquidity often helps fraudulent investors to manipulate the share prices. The SEC itself in Schedule 15G states "Investors in penny stock should be prepared for the possibility that they may lose their whole investment".
A penny stock traded on the over-the-counter exchange has a higher chance of being delisted for lack of compliance. If the particular company is unable to list its stock on another exchange or become re-instated, you may lose 100% of your investment. You should consider this seriously, if you intend to take long positions in a penny stock.
Several new investors are attracted to penny stocks, given their low price and potential for substantial gains. There have been instances where penny stocks rose more than 1000% in a few days in the past, but this is extremely rare and often the price is not sustained. There are historical evidences that most penny stocks lose their entire value. If you are a new investor, you need to be aware of the risks involved.
If you still want to invest in penny stocks, do the relevant research into the company's fundamentals and ignore the pre-conceived theories about the successes of the penny stocks in the past.
Joel Arberman is the Managing Member of Stock Aware, LLC. We publish a free investment research and analysis newsletter and offer investor relations and investor awareness services. Learn more at StockAware.com
Article Source: http://EzineArticles.com/?expert=Joel_Arberman
The Secret to Making Money From Penny Stocks
Penny stocks. What's the automatic reaction when people hear these two words?
"Don't invest in them."
I agree. Do not invest in them. What I mean by investing is buying shares of a penny stock and holding them for a long period of time (months/years) in hopes of having the price/share go up.
The majority of penny stocks do not hold their value over long periods of time. Don't get me wrong, there are some penny stocks that have shown enormous increases in price over a long period of time, but they are too far and too few in between.
So what's the solution? How do you make money from penny stocks?
You make money by day trading penny stocks.
What's day trading?
Day trading is simply buying and selling shares of a stock on the same day.
But why would you want to day trade penny stocks?
Because that's how you can make the most money in the shortest amount of time!
Penny stocks display the greatest daily percentage gains than any other stock on the market. Gains of 50-100% everyday are not unheard of. Here are some real life examples to illustrate my point.
02-09-2006 - AXIGE - 272%
02-09-2006 - VPER - 200%
02-13-2006 - PAPO - 136%
02-13-2006 - CKEI - 184%
02-14-2006 - PTSH - 366%
02-14-2006 - IELM - 115%
02-14-2006 - CSUA - 111%
02-15-2006 - LAMP - 149%
02-15-2006 - CTUM - 133%
02-15-2006 - JKRI - 116%
02-16-2006 - SEVI - 225%
02-16-2006 - RSMI - 93%
In just 5 days, you would've had 12 opportunities to potentially double your money!
In order to maximize the potential from these high percentage gains, you would day trade these penny stocks. You see, by day trading, you don't run the risk of watching the stock price go down over the long term. You just buy and sell shares on the same day, sometimes even within hours and lock in your profits! You don't have to worry about your stocks overnight because you've already sold them and made money!
That is the secret to making money from penny stocks. Just buy the shares, ride the increasing percentage wave, and then sell the shares at a higher price to make your profit.
The reason why so many people are not aware of this secret is that they immediately turn a blind eye to penny stocks. They don't even bother to investigate how to make money off of it since their first impression of penny stocks is usually a negative one.
Those who keep an open mind and take the time to learn about penny stocks will discover their enormous potential for profit.
However, it's not as simple as choosing a penny stock you think will do well. There are numerous factors that you have to look for, as well as several traps to watch out for. Taking the time to learn by reading and studying all you can about penny stocks, as well as paper trading (trading with fake money) to gain experience will help you succeed in making profits.
A lot of people view day trading as risky. However, if you think about it, the more knowledge and experience you obtain, the less risk you incur.
For example, if a person who has never gone snowboarding before was dropped on top of a mountain, his risk of making mistakes would be high. However, if he spent time on the bunny slopes learning and training, that same risk would be reduced significantly. The same thing applies to day trading. Taking the time to read and practice will greatly reduce the risks.
The beautiful thing about day trading penny stocks is that your analysis to determine which penny stock to day trade with is not as complex as the analysis done to determine which penny stock to invest in for the long term.
The analysis required to determine which penny stock to invest in for the long term requires a great deal of fundamental and technical knowledge. What's the company's PE ratio? How do their balance sheets look like? How's their cash flow? (finding this information is even more difficult for penny stocks as some penny stocks do not have any earnings or revenue). Is the industry they're in thriving? Who are their competitors? How are the support and resistance levels? What about candlestick charting analysis? Are they on an uptrend?
However, analysis done to determine which penny stock to day trade with only requires a few things to look out for such as buying pressure and volume, among other things. Remember, you're literally buying shares at 9:34 AM and selling at 10:18 AM (just an example to point out the brevity of the situation). You don't need to do huge amounts of analysis.
The real secret to making money from penny stocks is to day trade penny stocks. That way, you take advantage of the daily huge percentage gains that only penny stocks display.
Jason Brook is the author of The Ultimate Step-by-Step Guide to Day Trading Penny Stocks. His website can be found at http://www.daytradepennystocks.com
Article Source: http://EzineArticles.com/?expert=Jason_Brook
"Don't invest in them."
I agree. Do not invest in them. What I mean by investing is buying shares of a penny stock and holding them for a long period of time (months/years) in hopes of having the price/share go up.
The majority of penny stocks do not hold their value over long periods of time. Don't get me wrong, there are some penny stocks that have shown enormous increases in price over a long period of time, but they are too far and too few in between.
So what's the solution? How do you make money from penny stocks?
You make money by day trading penny stocks.
What's day trading?
Day trading is simply buying and selling shares of a stock on the same day.
But why would you want to day trade penny stocks?
Because that's how you can make the most money in the shortest amount of time!
Penny stocks display the greatest daily percentage gains than any other stock on the market. Gains of 50-100% everyday are not unheard of. Here are some real life examples to illustrate my point.
02-09-2006 - AXIGE - 272%
02-09-2006 - VPER - 200%
02-13-2006 - PAPO - 136%
02-13-2006 - CKEI - 184%
02-14-2006 - PTSH - 366%
02-14-2006 - IELM - 115%
02-14-2006 - CSUA - 111%
02-15-2006 - LAMP - 149%
02-15-2006 - CTUM - 133%
02-15-2006 - JKRI - 116%
02-16-2006 - SEVI - 225%
02-16-2006 - RSMI - 93%
In just 5 days, you would've had 12 opportunities to potentially double your money!
In order to maximize the potential from these high percentage gains, you would day trade these penny stocks. You see, by day trading, you don't run the risk of watching the stock price go down over the long term. You just buy and sell shares on the same day, sometimes even within hours and lock in your profits! You don't have to worry about your stocks overnight because you've already sold them and made money!
That is the secret to making money from penny stocks. Just buy the shares, ride the increasing percentage wave, and then sell the shares at a higher price to make your profit.
The reason why so many people are not aware of this secret is that they immediately turn a blind eye to penny stocks. They don't even bother to investigate how to make money off of it since their first impression of penny stocks is usually a negative one.
Those who keep an open mind and take the time to learn about penny stocks will discover their enormous potential for profit.
However, it's not as simple as choosing a penny stock you think will do well. There are numerous factors that you have to look for, as well as several traps to watch out for. Taking the time to learn by reading and studying all you can about penny stocks, as well as paper trading (trading with fake money) to gain experience will help you succeed in making profits.
A lot of people view day trading as risky. However, if you think about it, the more knowledge and experience you obtain, the less risk you incur.
For example, if a person who has never gone snowboarding before was dropped on top of a mountain, his risk of making mistakes would be high. However, if he spent time on the bunny slopes learning and training, that same risk would be reduced significantly. The same thing applies to day trading. Taking the time to read and practice will greatly reduce the risks.
The beautiful thing about day trading penny stocks is that your analysis to determine which penny stock to day trade with is not as complex as the analysis done to determine which penny stock to invest in for the long term.
The analysis required to determine which penny stock to invest in for the long term requires a great deal of fundamental and technical knowledge. What's the company's PE ratio? How do their balance sheets look like? How's their cash flow? (finding this information is even more difficult for penny stocks as some penny stocks do not have any earnings or revenue). Is the industry they're in thriving? Who are their competitors? How are the support and resistance levels? What about candlestick charting analysis? Are they on an uptrend?
However, analysis done to determine which penny stock to day trade with only requires a few things to look out for such as buying pressure and volume, among other things. Remember, you're literally buying shares at 9:34 AM and selling at 10:18 AM (just an example to point out the brevity of the situation). You don't need to do huge amounts of analysis.
The real secret to making money from penny stocks is to day trade penny stocks. That way, you take advantage of the daily huge percentage gains that only penny stocks display.
Jason Brook is the author of The Ultimate Step-by-Step Guide to Day Trading Penny Stocks. His website can be found at http://www.daytradepennystocks.com
Article Source: http://EzineArticles.com/?expert=Jason_Brook
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