Pro Wealth Biz

Wouldn’t it be nice to be like your bank or credit card company and charge interest on loans.  Well it’s possible, yet very risky to lend out money to people who are seeking loans.  It can be tricky to work out agreements and to protect yourself from the loss of the money not being paid back.  That is why protected banks make all the easy money on these loans.  However it is an investment strategy worth looking into.

Platinum has a much shorter investment history that gold and silver historically.  The metal platinum is mined like gold and silver and is quite scarce like silver is to gold.  It’s investment growth is dependent on supply and demand like gold and silver.  Platinum is typically less hyped up as gold and silver.  By tracking and predicting it’s value platinum can be a viable investment option.

When people think long term stock investing they think it’s safe.  Call it stock broker sales pitch or investing conditioning this is actually a very risky strategy to buy and hold long term.  The informed wealthy are getting out and in at the right times more accurately.  The one’s who buy and hold are the ones paying for the wealthy on the way out.  The wealthy are also coming back in with now deflated worthless stock being dumped by the investing losers when it’s too late.  Yes you may buy and hold and take out at the right timing, but no one can predict the timing.  It’s better to predict the short term by making money in a up or down market.  Find out how in the short term investing article.

There are different entities of business you can consider when establishing a business.  Consider what your business is, how you want to run and protect it.  And finally contemplate the growth of your business when forming a legal business entity.  Let’s take a look at the four primary business entities below:

Sole Proprietorship – individual ownership.  No legal clarification between owner and business.  All profits and losses weigh upon the owner, paid from their own resources.

Corporation or Incorporated –  An institution that is granted a charter.  The charter makes it a separate legal entity.  Corporation has its own privileges, and liabilities separate from those of its members. There are many different forms of corporations used to conduct business

General Partnership – partnership of partners jointly liable for debts of the partnership.  Normally created by agreement over public filing.

Limited Liability Company - Business with limited liability.  Not a corporation. Blends entities of partnerships and corporations.

There are two ways to use options.  You can do a call or put option.  An easy way to think of this is a call you pick up the phone.  Thus, predicting a stock will go up.  When you hang up the phone you put it down.  Therefore a put option is predicting the stock will go down.  If your right then you make a small percentage of the increase or decrease in profits.  Options are basically an insurance against stock prices rising or falling.  There are many indicators to help follow the trends.  For example the VIX, Volatility Index, is a tool to help indicate and predict falling and rising stock prices.

As discussed in the Long term investing article the wealthy get in and get out profitable.  The poorly informed stay in for the long term and usually suffer enormous losses.  These losses have to do with information and knowledge.  When you rely on guessing and other people who poorly manage your money then you lose rather than gain.  Winners in short-term investing win in both an up and down market.  They win by being aware of trends and insider information.  One popular yet still risky investment strategy used is options.  Options allow you to put or call stocks profiting from up or down trend predictions.  See the article on options trading for more information.