Slow and Steady Wins the Race
Everyone wants to get rich over night. It's human nature to be greedy, and that's why get-rich-quick-schemes are always making money. The idea of making tons of money over a short period of time is so appealing that it can corrupt a person's logic. Get-rich-quick schemes get the most out of people by taking advantage of people's psychological weakness -- impatience. However, if get-rich-quick-schemes work for everyone, then nobody will be poor. Think about it.
Here's an article I think everyone should read. There's really nothing exciting about saving up a dollar a day, but over the course of a lifetime and with the power of compounded interest/smart investment, the daily savings can amount to a sizable amount.
A Lottery You Always Win
6-percent CDs: Lock them up
Here's a great article on locking in on high yielding CDs:
Quote of the Day
The definition of a great company is one that will be great for 25or 30 years. - Warren Buffett
Ameritrade vs TD Waterhouse
Ameritrade and TD Waterhouse merged, but they still maintain the same interfaces from before. I have access to both interfaces and I don't like the TD Waterhouse interface. I find it slow and hard to read. Every time I click on a link, for example, cost basis, it takes a while for the numbers to load up, whereas in Ameritrade, the numbers come up instantly.
If anyone has to choose which interface to see their account, I would suggest the Ameritrade version. If you would like to sign up for an Ameritrade, send me an email and I'll send you a referral, or leave a comment with your name and email.
Quote of the Day
If the job has been correctly done when a common stock is purchased, the time to sell it is -- almost never. - Philip A. Fisher
My goal is to find a growing company with excellent management.
The Secret to Wealth Creation
Here's a good article from Fool.com about creating wealth. The answer may not be what you would like to hear but has been tested and proven over time. Yes, it does take a lot of careful planning and patience.
You can see that I don't like to talk about get-quick rich schemes, because it doesn't work. Slow and steady wins the race. I plan to use this blog to show people how I create my wealth over time.
I have my Ameritrade Izone account for a while and I love it. Trades are only $5 each. Ameritrade has decent research tools.
If you want to open an Ameritrade account, please send me an email and I'll refer you.
I just received my latest issue of Smart Money, and there's an article on Internet stocks. We all know Internet stocks can make or break your portfolio performance, but Smart Money picks three high potential Internet stocks that shall beat the market. Here are the three picks.
Adobe Systems (ADBE)
Price $28.01 (as of 7/14/06)
Market Value: 16.2B
Akamai Tech (AKAM)
Price $32.54 (as of 7/14/06)
Market Value: 5.0B
Price $24.38 (as of 7/14/06)
Market Value: 7.7B
I'm not very familiar with the latter two stocks, but I think Adobe is a good bet. Their software is becoming a mainstream tool.
Watching People Spend Money
When I hang out with people, I can't help but take notice of how they spend their money. One time, I went to a Yankee's store with my friend, who's a big Yankee's fan. She blew almost 100 bucks on Yankee items. I would certainly not do that, but since she's a Yankee's fan, she felt it was worth it.
Another time, I was in an eye-glasses store with my coworker and she dropped 600 dollars on three pairs of brand-name sunglasses. She bought two pairs for herself and one pair for her husband (to justify the spending, I guess).
It's very interesting watching how people spend money. Sometimes you will be surprised. People may be frugal and stingy on some things but could dump half of their savings on something else you don't feel it's right. But, I was not there to judge, because it's their hard-earned money, so they have every right to spend it the way they want. Ultimately, we all want to make money to make oursevles live better, and sometimes that can mean blowing a lot of money on the things we like. Some people even spend money for pleasure. That's why they say you can tell a lot about a person based on how he/she spends money.
Comparing Customer Service: HSBC vs. Bank Of America
Two months ago, I had to close my bank account with Bank of America and it took me more than two hours. I spent much of the time waiting. I had to speak to three different representatives before I could get the word to withdraw my money. Then the bank teller still needs authorization and I had to wait again until the manager confirms it ok. I went around in circles many times. Also, the lines in Bank of America are very long and move very slowly (at least in my branch).
My experience with HSBC has been the complete opposite. When I went to deposit checks in HSBC, I had little waiting time and the bank tellers were very friendly. Sometimes I forget to fill out a deposit slip and they would do it for me. I don't need to wait long to speak to someone, and they have a lot of managers around.
I know the Bank of America (BAC) stock has been doing well, but I hesistate to make a long term investment knowing how terrible their customer service is. Instead, I want to invest in HSBC's stock (HBC) for long term. Recently, HSBC release an article reporting 15% increase in profit for the first half of 2006.
HSBC Business Checking
I opened a business checking account with HSBC to keep my buiness accounts seperate from my personal ones. I signed up in a branch for a promotion for free business checking. The sign up process took about an hour, but it was fairly easy. I just had to bring in some documents for my company and fill out a few forms. I have to say, my experience with HSBC has been excellent. Their service is superb. (Let me leave that to another post)
I received my check book about two weeks later. I also signed up for online business banking. They sent me a security device that generates a different numeric code based on real time sequence and I need that to log in along with my password. The reason for the added security is because you can do more with the business account, such was wiring money out.
I just thought of a very great idea. I was thinking of setting up a networking event for all the financial bloggers. This gives everyone a chance to meet and discuss ideas. It's possible some may get together for business or a big project.
I haven't thought of the details yet. Since I live in NYC, I'd like to host the event in NYC, but it will be expensive to host an event. To make it more realistic, we can do something like this. First, we'll run a pilot version. I or we (feel free to help out) will host a small event in NYC at some budget place for the first time and if it works, we'll make it bigger the second time. I haven't figure out how the cost part works. I imagine we'll all chip in for the event.
Or, we can find sponsors like investors and companies and turn this into a huge marketing/networking event/opportunity. Companies may be looking for knowledgable people, but at the same time, we financial bloggers get a chance to discuss ideas.
Thought: If I have a mansion, I can host the event there and invite all the financial bloggers.
Feel free to give your suggestions.
Advanta Business Credit Card
I have applied for an Advanta Business Credit Card for my business. This way , I can keep my business expenses seperate from my personal ones. This card offers one of the best cash back rewards. It pays 5% Cash Back on gasoline, office supplies, utilities, computer equipment, cell phones and Internet services, and 1% on all other purchases.
The card categorizes all my expenses for me and I can download all the transactions to MS Money or to a spreadsheet for tax purposes.
Quote of the Day
Every young man should have a hobby; learning how to handle money is the best one. - Jack Hurley
Indeed, my hobby is to grow money.