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Posted on November 27th, 2006 by James Alliss.
Categories: Tips.
On November 14th I wrote a brief comment that I thought the Major US Indices were about to take a fall.Well guess what, it wasn’t just the USA but pretty much across the world!
I had a breakdown in my email inbox this morning from Money Morning which said “Stock markets across the globe had a tough time of it last week. The FTSE 100 fell 1.1% to 6,122 by the end of the week, Japan‘s Nikkei 225 shed 2.2% to 15,734, and even the seemingly unstoppable Dow Jones was knocked off its stride.”
The breakdown for Friday was:
The FTSE 100 closed 17 points lower at 6,122, after a fourth consecutive day of losses. The DAX-30 was 63 points lower, at 6,411.
The Dow Jones was 46 points lower, at 12,280. The S&P 500 ended the day 5 points lower, at 1,400, as did the Nasdaq which closed at 2,460.
This may not be the end so please be careful if you have investments linked to the stock market.
James Alliss.
Posted on November 14th, 2006 by James Alliss.
Categories: Tips.
I believe that we could be about to witness a fall in the major US indices. I have been reading the markets and it looks like we could expect to see some profit taking by the big institutional investors.
I’m unsure how much of a drop we’re about to see but I definitely think there will be a correction.
Let’s see if I’m right!
James Alliss.
Posted on November 3rd, 2006 by James Alliss.
Categories: Tips.
Please read this post as it could make you over £160,000.
Have you ever found yourself in a position where you’re thinking “I could really do with a new car….” or “Wouldn’t it be nice if we could go on holiday…” The strange things is, the next day, as if by magic, you get a letter from the bank. The bank has read your mind and has decided to offer you this great deal on a loan. You look at what’s on offer and decide to visit your friendly bank manager.
After a few smiles and a cup of tea you decide to go ahead with the loan, well why not, you deserve a treat right? Ok, you get down to the paper work and all of a sudden your bank manager says “Have you considered how you would pay this loan should you get into financial trouble?.”
Ah, there it is, the bomb shell - what if you can’t afford to pay this back! Oh dear, what if you lose your job or you have an accident? Who will pay this debt? Don’t worry, help is at hand. The bank manager then talks about how, for an extra premium each month, they will cover you against any unforeseen circumstances so the loan will always be paid. Well this seems like a fair deal to you, so you go ahead and sign the paper work to keep your mind at rest.Let me tell you something…. This is NOT a good deal for you, it’s a good deal for the bank and insurance company! Payment Protection Insurance (PPI) has so many get out clauses for the insurance company that you could almost say it’s useless.
It is estimated that around £4bn is spent by borrowers on PPI every year and only 4% of people ever claim!
Don’t worry though, I have some good news for you that could save you thousands of pounds. If you do decide to take out a loan, DO NOT take PPI out through the bank as it’s ridiculously expensive. All you need to do is pop into your local Post Office who will be able to offer you the same kind of protection for a fraction of the price.
Here’s an example:
PPI taken out with a £10,000 loan, over a five year period, through Norwich and Peterborough, would cost you an extra £4,735 on top of your loan. However, the same PPI through your local Post Office would cost you £548, saving you £4,187.
If you saved that £4,187 for 20 years in an investment vehicle with annualised growth of 20% you would make £160,519.53.
There you have it - I have just told you how to make over £160,000.
I hope you found this useful.
James Alliss.
Posted on October 27th, 2006 by James Alliss.
Categories: Tips.
Let me get straight to the point.
How old are you?
If you said 40 and you’re male then you have 25 years left until you retire.
How would you feel if you had to rely on the state at this age? The way things are going it’s unlikely there will be a state pension anyway.
It’s never too late to start saving. If you are 40 years old now, do you know how much £150 per month would grow into by the time you retire if you could get a 20% annual return on your money?
I will tell you….
£1,272,682
Yep, you’d be a millionaire just from saving £150 per month.
Guess how much you’d have if you managed to save the same amount but for an extra 5 years?
Double….?
No, almost treble!
You would have £3,446,631. That is almost £3.5 million pounds just by saviing £150 per month.
If you don’t believe me then take a look at this:
http://www.econedlink.org/interactives/interest.html.
By the way this is a link to an American site so the money wil be shown in dollars. I have no affiliation with this site either.
Start saving now.
James Alliss.
Posted on October 27th, 2006 by James Alliss.
Categories: Tips.
You’re going to like this post as I’m going to talk about generating money from thin air! Yep, you read it correctly, you can actually make money without anything to sell.
Want to know how..?
Have you taken any notice of these credit card companies offering 0% interest free credit for 9 months? Some will even go up to 18 months! I’m sure you have, they’re advertised everywhere - TV, Websites, e-mail etc.
You may be thinking, so what?
Let me tell you why you may want to take more notice of these advertisements. Almost anyone can get a credit card these days no matter how much debt they seem to be in. It seems the banks just want to through money at you.
I say, let them throw the money at me, I’ll gladly take it - thank you very much.
Most people will do exactly that, but don’t bother to pay it back before the interest free period is over. This is exactly what the banks and credit card companies want you do do.
Now, here is the interesting part…
Take the free money they are offering you and invest it - SIMPLE!!!!!!!
Here is an example:
Before I start and you sceptics start saying that’s not possible, please hear me out.
1) Lets say you get a credit card limit of £5,000 interest free for 18 months. (I have done this myself so I know these deals are out there).
2) You invest this money into a investment fund that grows at 20% over 12 months. This will give you a profit of £1,000 and take your money up to £6,000.
3) You keep that money in the same investment fund for another 6 months and it grows at a further 10%.
How much do you now have?
£6,500? - No!
You have £6,600!
Why do you have £6,600? Because of the wonderful world of compound interest.
Here’s the maths….
£5000 + 20% = £6000 (First 12 months)
£6000 + 10% = £6600 (Final 6 months)
How do you like that? You have just made £1600 from thin air.
Oh, I forgot to say that this £1600 is TAX FREE!
I know you’re thinking that it’s not possible to grow your money at 20% a year tax free. I promise you it is because I do it myself and it’s far easier than most people would ever realise. If you don’t know how, I suggest you stick with me because I will be revealing all soon.
More tips soon,
James Alliss.
Posted on October 11th, 2006 by James Alliss.
Categories: Tips.
Introduction to ISAs
What does ISA stand for?
Individual Savings Account.
You can hold a Maxi or a Mini ISA (but not both) in any tax year.
Let me explain the difference:
Maxi ISA – Allows you to invest up to £7,000 in stocks and shares, of which up to £3,000 can be placed into cash. Your total contribution in a single tax year must not exceed £7,000.
Mini ISA – Allows you to invest up to £4,000 in a Mini Stocks and Shares ISA or up to £3,000 in a Mini Cash ISA. You can not have both cash and shares, it’s either one or the other.
Many people get confused as to what an ISA is especially new investors.
Let me explain…
It is possible to shelter various kinds of investment from capital gains tax (CGT) or income tax using an ISA.
A lot of people look at an ISA as a kind of savings account (not helped by the fact that it’s called a savings account).
In its simplest terms, an ISA is a wrapper around your money or asset that shields it from the taxman.
Any gains you make on that asset are shielded from the tax man and you don’t need to declare your gains either.
Basically, you could make millions of pounds and it would all be tax free.
How would you like to make over a million knowing that all that money is yours? - Every last penny!
If you are still a little confused by what an ISA is here is my explanation in its simplest terms:
Think of a brand new mobile phone which is sealed in a box. The phone is your investment; the box is the ISA.
Just as the box protects the phone from being damaged, the ISA protects your money from the dreaded tax man.
I’m sure you get the idea!
The government allow numerous types of assets to be included in ISAs. These include cash, gilts (government issued bond), life assurance policies, shares and investment funds.
Just before I go I thought I better mention PEP’s.
PEP stands for Personal Equity Plan. A PEP is basically the tax incentive used prior to ISA’s. It is no longer possible to take out a PEP as the ISA has taken its place.
Posted on October 10th, 2006 by James Alliss.
Categories: Tips.
A lot of people are paying a standard variable rate on their mortgage and due to the low interest rates and recent house price increases; the chances are you have a lot of equity in your home.
You are therefore asset rich!
You need to be cash rich!
Have you ever considered a remortgage? If you haven’t then perhaps you should.
Let me explain…
There are a lot of deals being offered by different lenders but one of the best is to remortgage to a lender where the lender will pay your valuation fees, arrangement fees and legal fees.
Sounds good right…?
The majority of lenders will allow you up to 90% LTV (Loan to Value) but some will lend you up to 95% and one lender will actually lend you 125% LTV.
Yes, they will lend you 125% of what your home is worth!
I can not discuss this lender for legal reasons but if you do some research yourself you should be able to find this information.
Let me tell you a little more about how you can use this 125% LTV option.
You can split the loan into two parts:
90% Secured
35% Unsecured
The mortgage will give you interest on your money, a payment holiday option for times when you want to get away for a break. It will also offer you overpay and underpay facilities.
If you have a bonus at work or you’ve made some money on your stocks then why not pay some extra off your mortgage one month? This is when the overpayment facility comes into play.
If you are having financial problems then why not take advantage of the underpayment facility – you get the idea!
The unsecured facility gives you access to cash only when you need it so you only pay interest on what’s been used. The Lender even gives you a credit card all charged at the same mortgage rate.
Have you heard of Self Certification?
Using Self Certification you can release the equity in your home by simply signing a contract with the lender that proves to them you can make the mortgage repayments.
Basically, as long as you can prove that you can make the mortgage repayment using various income streams (not normally allowed by most lenders) then you can borrow the money.
Now, if you have your mortgage on an interest only basis you keep the repayments down. So buy a few houses using this Self Certification method and let them out.
Figures have show the property doubles every 8 years approximately so the more houses you have, the more equity you have. Once you’ve made enough equity in each house you could sell them and pay off your residential mortgage!
Here is an example:
1) Buy a house for £100,000 interest only self cert mortgage;
2) Let the house out. The rent from this will pay the mortgage;
3) 7-8 years later the house is worth £200,000 but your mortgage is only for £100,000. You have therefore gained £100,000 to use on whatever you like!
Do this multiple times and you could easily become a millionaire!
I hope this makes sense to you.