What to Look for in an Investment

With the economy in the state it's in, scandals, & massive financial losses, I wanted to talk about what it means to really invest & what I personally look for when making an investment. One man that I've learned tremendously from is Robert Kiyosaki.

What is an investment? Is it a:
1. Hot stock tip from your friend
2. Commentator on CNBC saying, "blah, blah, blah"
3. News article recommending company ABC
4. Commercial touting the latest company XYZ
5. Buying a stock today at a low price & selling it a few days later.
6. "Flipping" a house.
7. Mutual fund advisor saying, "Work hard, save, invest in a diversified portfolio of mutual funds in your 401k".

(PS - the answer to all of the above are NO. These are not investments).

Planning for your financial picture encompasses investing to speculating. The key difference between investing & the latter is cash flow. Cash flow provides immediate income. It puts money into your pocket, right now, today. Examples would include dividend, option-writing stocks, & cash flowing real estate & businesses.

If I buy shares of company XYZ that provides a dividend, that stock would be an investment. I could also write options against my stock every month that would provide immediate, controllable, increases income. In real estate, if I acquired a property, rented it out to reliable tenants, and if the rent provided extra income, that would be an investment.

Notice how I did not mention either stocks or real estate increasing in value over time, otherwise known as capital appreciation. In the long run, stocks & real estate tend to appreciate in value. However, as we can see currently, this is not always the case, & timing the market is not very reliable, nor is it very predictable.

Buying for capitals gains is like icing on the cake, but not the primary reason you buy the particular investment. Even if stocks & real estate have decreased in value (such as current times), if they provide cash flow, you still have money to live. So cash flow is like oxygen. You have to have it, or you can't survive. Additionally, with capital gains you are hoping, wishing for appreciation. Hoping and wishing are not strategies I would employ when investing.


Here's how I divide investing:
1. Person
2. Vehicle
3. Knowledge & experience

Person: To invest you need to know your personal profile. Your goals, your tolerance for risk, your time horizon, how active do you want to be. If you are conservative, don't want to manage your portfolio, a lot of people would recommend mutual funds, although I would not recommend this route. Rather, I would work on increasing your financial education. If you are more active, have more experience then how about getting into stocks, options, currencies, interest rates, commodities, futures? Or what about real estate? Do you want to be a flipper, or do you want to buy real estate & then rent it out? Do you want to do it full time, making several deals a month? or do you want to do it part time buying one property a year? Again all of these depend on the person.

Vehicle: Stocks are stocks, real estate is real estate. No one vehicle is better than the other. It's how the person uses the vehicle that characterizes their particular investment style. Everything has its advantages & disadvantages. What I like about stocks are that they are paper investments. No hassles. I can easily get into & out of them if I so choose. I can use options to generate income, mitigate risk, acquire stocks for cheaper, & sell stocks for higher prices. What I don't like about stocks are false financials, corporate fraud, scandals, & manipulation by Washington/Wall Street. While I do own a successful company that trades stocks & options, I am personally moving towards real estate & businesses because I can actually see these investments. And my income from these investments comes from creating value for others.

Knowledge & experience: Most important. After knowing yourself, I would focus on increasing your financial IQ. Know what you're investing in & why. Gather more knowledge & experience. Go to seminars, meet like-minded people. Avoid salespeople, "advisors", conmen, "too good to be true" advertisements. Get a mentor, someone who's done what you want to do. Talk to people whom you trust (hint: not politicians, media, brokers, analysts). Read books such as Rich Dad, Poor Dad. I like books like this because they provide reality-changing ideas, while delivering outstanding content. If you increase your financial IQ, you'll be much better off. Start slow, learn, & then gradually work your way up.

So here are some criteria I place when making an investment.

1. Control
2. Cash Flow
3. Leverage
4. Tax advantages
5. Risk mitigation
6. Assets that I can physically see
7. Passive, automatic, residual

As with all things, making good investments is like making good decisions. It takes knowledge of yourself, planning, experience, & patience.

11 EASY Ways to BETTER Health

Ever wonder why every year there are so many new diets, new ways of losing weight, new diet supplements?
Or why the first month of January the number of gym membership signups are at an all time high, yet by February, more than half are never to be seen again?
Or why diseases such as cancer, diabetes, heart disease, obesity, eating disorders, depression/anxiety are becoming more and more prevalent?


Here are some facts:
1. Average life expectancy is increasing.
2. Our lifestyle is changing from a much active to a more sedentary lifestyle.
3. Fast, cheap, salty/greasy foods make up a large component of the Western diet.
3. Health insurance costs are skyrocketing with lower payouts. Medicare will not be able to support future generations.
4. Diseases such as cancer, heart disease, diabetes, obesity, depression/anxiety are increasing dramatically.

With these facts in mind, health is becoming more and more important. Maintenance and prevention require establishing healthy habits early on. Here are 11 simple things I do to maintain my health.

Diet
1. Drinking 8 glasses of water every day (glass of water in the morning, during each meal, & during your breaks).
2. Eating foods high in water, fiber (Eat a salad or fruit w/ each meal).
3. Taking a vitamin every day.
Exercise
4. Running 1 hr a day, 3-4x a week. Lifting weights 2x a week. If you have bad knees, back then swim, or get on an elliptical machine. Make sure you heart rate is working at 60-75% of your maximum heart rate (220-age) for the entire time.
Emotional, spiritual, energy
5. Deep breathing, meditation, stretching 10-15 minutes every day following exercise.
6. Getting 8-9 hrs of sleep.
7. Reading uplifting books in the morning & before I go to sleep. Keeping my brain active by engaging in hobbies, reading.
8. Writing in my journal before going to bed. Writing down 5 things that I am thankful for.
9. Spending time with friends & family.
Preventive
10. Getting regular medical checkups. Main things to monitor are your blood pressure, resting heart rate, weight, cholesterol panel, and fasting glucose levels.
11. Treating myself once a week to reward myself for maintaining these healthy habits.

Remember, maintaining your health takes time, effort, & discipline. It requires establishing healthy habits. Little by little, if you start small & work your way one day at a time, you'll make it!


DISCLAIMER: The following are personal examples only. They are not professional recommendations. Please consult your personal physician before engaging in any of the following activities.

BEAUTY of Traveling

Hey guys. Just got back from an eventful week in Niagara Falls. Some notables were driving through a tragic plane crash in Buffalo and experiencing a bout of stomach flu with my girlfriend. Nevertheless, the Falls were a wonderful experience illustrating the beauty, power, and grace of nature. HIGHLY RECOMMENDED.

( The Falls on the US side )

Today, I want to talk about traveling, and how it can be a tremendously valuable experience.

Traveling can serve several purposes:
1. Personal growth, development
2. Learn the local culture - language, cuisine, history, fashion/styles
3. Learn about people from a totally fresh perspective
4. Pleasure, leisure, relaxation

Traveling to an exotic place can be frightening, scary at first. WHY? Because you're stepping out of your comfort zone. Your surroundings, your familiarity with people, everything is being turned upside down. Human beings fear uncertainty. But that's where real value lies.

By visiting a foreign country, you are placing yourself in completely new territory. You will be forced to learn how to get around, how to find the best places to eat & sleep. You will be forced to meet new people. As one of my mentors called it, you will be applying the "INEVITABILITY PRINCIPLE", where you create situations & circumstances where you have no choice, but to succeed. Don't step out of your comfort zone, you risk being bored, alone, eating overpriced food, staying at less than desirable places. Worse than that, you stifle your growth.


By traveling you develop a sense of who you are. Your tastes, styles, passions, likes, dislikes. Your values, your beliefs about yourself and the world. You see where you fit in. You learn to stylize the expression of who you are. You come away with a view that the world is a small place, and have a greater appreciation for the simpler things in this world. You see how & why people live the way they do based on historical, societal, cultural contexts. You learn to be more open minded.

Traveling to places such as Seoul, Sweden, South America, London, Paris, Canada, LA, Manhattan, Sydney I came across some of my greatest insights, had some of my best ideas, & met some of the most unique & amazing people.


Here are some things I personally do when I travel:
1. No work. Total immersion.
2. Read perspective-altering books. One I recommend is: Talent is Never Enough by John Maxwell.
3. Bring a journal to write down all of your thoughts, ideas, experiences.
4. Watch some local TV during your down time, even if you don't understand what they're saying.
5. Structure something where you're talking to the locals everyday (cafes, restaurants, streets, bookstores, pubs, anything).

So with summer just around the corner & airfares being cheaper these days, decide what area of the world you'd like to visit & go there within the next few months. Have a blast!

The FASTEST Way to SUCCESS

Want to know the FASTEST way to achieve MASSIVE success? MENTORS.


When I decided that I was going to be successful in the areas that I was passionate about, I sought out mentors in as many forms as possible. Below are a few of my observations.

Mentors come in many different forms. They can be anyone, anything, in anything that imparts something to you on your path towards success, lasting anywhere from a few seconds to years.

The reason why having a mentor can be so powerful is because:
1. They've done it. They've walked the path you're embarking or are currently on.
2. You are around their way of thinking, how they perceive the world, their mental, emotional, behavioral paradigms.
3. They bring to the table a wealth of experience, expertise both in terms of knowledge as well as "hands-on" experience, that can be extremely beneficial.
4. Can offer support and guidance
5. Can be an excellent resource for future contacts, referrals.

How do I go about selecting mentors?
1. Decide what area you want to be successful in, whether it be in: finance/business, relationships, health, sports, whatever.
2. Ask them - it can be in a letter, an email, a personal request.
3. Take them out to lunch/coffee once a month, & ask them questions, their opinions, viewpoints on whatever is on your mind.


Below are some of the criteria I look for when selecting a mentor:
1. Trust - Most important. Without trust, there is no relationship.
2. Integrity - See #1.
3. Enjoyable - Life is too short. Learning should be fun. If it's not, then it's not worth doing. That's not to say that a mentor shouldn't push you when you're not performing up to your capabilities. They should, but it shouldn't be a relationship that's based on fear or guilt.
4. Should be mutually beneficial. The exchange can be in many different forms such as services, volunteering, etc.
5. Has something to teach that you need to learn - eg public speaking, sales.
6. Has actually achieved success in the particular area - No "talking", but someone who has actually "walked the path" and can produce MASSIVE results on a consistent basis.
6. Other things - make sure that the relationship is not there for approval, or validation of yourself or your ideas, but is providing sound advice that will help you in achieving your purpose. There are people in this world who will try to hold you back for their own personal gain. Avoid these people at all costs.

Here are some other ways of finding a mentor:
1. The internet - Google Video, Youtube, articles, blogs, biographies, autobiographies, interviews, video/audio media. Anything that will help you to gain insight into their world.
2. Books - library, Amazon, Ebay, borrowing/trading with friends, gifts. Audiobooks are great when you're driving in your car, or while your working at home.
3. Groups/clubs - will connect you with like-minded people & plug you into what Napoleon Hill, in Think and Grow Rich calls the "MASTERMIND PRINCIPLE".
4. Seminars - Going to one seminar per year in the area that you want to be successful in. This will help you to get new ideas, new information, and to network with other like-minded people. Doing this while you're on vacation can be an added bonus.
5. Professional coach - various companies offer these services, are usually VERY expensive, but can streamline the process and shave off huge amounts of time in reaching your particular goals.


Well that's it for today. Thanks for reading and stay tuned.

Welcome to MY blog

Hi everyone - Thanks for taking the time to visit.

This blog is about achieving and getting the most out of life, and being happy along the way. About living and enjoying life to the fullest extent possible, whatever that may be for you.

Over time, I will be posting articles on a weekly basis related to finance/business, health, and self actualization. I'll also be putting pictures and details of my travels and adventures. So stay tuned & thanks again for your time.