Safe Strategies For Financial Freedom

* Publisher: McGraw-Hill
* Number Of Pages: 350
* Publication Date: 2004-06-04
* ISBN-10 / ASIN: 0071421475
* ISBN-13 / EAN: 9780071421478

Product Description:

Commonsense Rules for Financial Freedom – Anyone Can Do It!

Safe Strategies for Financial Freedom shows you how to know in 30 seconds whether you should be in or out of the market. The authors show you how great investors avoid mistakes – and win big. With Van Tharp’s legendary risk-control techniques; learn how the world’s most profitable investors reduce their risk and leave their wealth-generating potential unlimited, and how you can too.

You’ll learn how to invest wisely – in every type of market, protecting what you earn, and developing sources of regular income to achieve financial independence.

Safe Strategies for Financial Freedom provides you with a specific program for freeing yourself from the workplace—forever. Let it show you how to seize control of your financial life by investing in the assets that will provide you with steady income until the day when your investment income surpasses your monthly expenses—and you are, once and for all, financially free.

Contents:
Safe Strategies for Financial Freedom
Cover
Title Page
Copyright
Dedication
Contents
Acknowledgments
Preface
Part 1 Developing Your Plan to Quit Work Now
What It Takes for You to Never Have to Work Again!
Discovering Your Personal Financial Freedom Number
Step 1: Calculate Your Monthly Expenses
Step 2: Determine Your Passive Income
Step 3: Determine Your Financial Freedom Number
What Your Financial Freedom Number Means
Saving for Your Financial Freedom
Paying Yourself First: Automatic Investment Plans
Using the Power of Compounding
Getting out of Debt in Just a Few Years
How to Cut Expenses Without Much Effort
Cut Up Your Credit Cards
Never Buy on the Spur of the Moment
Calculate How a Major Purchase Will Affect Your Financial Freedom Number
Consider Buying Through the Internet
If You Buy at a Retail Shop, Get the Best Price You Can
When You Ask for a Discount, Say You Are on a Budget
Before You Buy Anything, Think How You Could Generate That Much Passive Income
Taxes May Be Your Biggest Expense
Tax-Cutting Strategies
Making Your Debts Disappear with the Payoff Priority Technique
Additional Considerations for Debt Reduction
Maximizing What You Already Have
Taking Stock: Your Assets and What They’re Doing for You
Redeploying Your Assets to Maximize Returns
Adding Strategies That Significantly Increase Your Passive Income
Making Paradigm Shifts: Financial Freedom Is Closer Than You Think
Part 2 Profitable Stock Market Strategies for Good Times and Bad Times
Times Will Be Very Tough for Stocks, But Not for You
Debunking Conventional Wisdom: The 18-Year Megacycles of the Market
How Far Down Will the Market Go?
Using Price-Earnings Ratios to Determine the Bottom
Using Dividends to Determine the Bottom
Using Market Psychology to Determine the Bottom
Understanding What the Market Is Doing in Any Climate
Is the Market Too Expensive?
Are the Feds in the Way?
Is the Market Going Up?
Translating the Mound of Information into Profitable Strategies
Red Light: Sell
Yellow Light: Buy and Hold
Green Light: Strong Buy
The Coming Mutual Fund Crisis: Steering out of Danger and into Profits
The “Dirty Little Secrets” About Mutual Funds
Beating a Benchmark
Your Fund Will Perform Worse Than the Benchmark— Almost Guaranteed
A Vicious Downward Spiral
Your Fund Must Be Fully Invested
Using Mutual Funds to Your Advantage
Hedge Funds: A Pure Passive Investment
Strategies for Great Profits in Bad Times
Strategy 1: Using Bear Market Mutual Funds for Prof
Bear Market Mutual Fund Strategy
Precautions on Using the Strategy
Strategy 2: Profiling from Falls in Individual Stocks
The Dangers of Selling Short
A Short-Selling Strategy
Buying Stocks Safely: An Alternative to Conventional Wisdom
Method 1: Following a Newsletter’s Recommendations
Understand Why the Newsletter’s Strategy Works
Make Sure the Newsletter’s Investment Philosophy Is Consistent with Your Beliefs About the Market
Make Sure the Newsletter Does What It Claims to Do
Take Every Recommendation
Don’t Count on the Newsletter to Get Risk Control and Position Sizing Right
Method 2: Trading Efficient Stocks
Entry Strategy for an Efficient Stock
Practice Risk Control and Position Sizing
Method 3: Buying Deeply Undervalued Stocks
Undervalued Stocks
What Happened to These Stocks Nine Weeks Later?
How to Accumulate Graham’s Number Stocks
How to Get These Stocks for Free
Critical Information on Using All of the Strategies
Could a Deflationary Depression Like the 1930s Happen Again?
Part 3 More Profitable Strategies for Financial Freedom
The Inflation-Defat ion Game: How to Protect Yourself
Could We See an Inflationary Spiral Like the Late 1970s Again?
Tracking Inflation-Deflation with Our Four-Star System
Commodity Prices
Consumer Prices
Gold Prices
Interest Rates
How to Profit from the Indicators
Four Stars
Increasing Inflation
Three Stars
Inflation Danger
Two Stars
Some Inflation Risk
One Star
Mild or Decreasing Inflation
Zero Stars
Decreasing Inflation
Minus One Star
Deflation
The Dollar and Interest Rates: Turning Threats to Your Wealth into Profits
Sorry, Honey, No More Trips to Europe— We Can’t Afford It
The Only Two Things That Affect the Value of You or Money
Tracking the Value of the Dollar
The Megatrend in the Dollar
The Big Mac Index (Purchasing Power Parity)
Where Your Money Is Treated the Best
Three-Star Dollar Indicator
How Interest Rates Affect the Dollar and Your Wealth
The Max Yield Strategy: A Safe, Once-a-Year System for Double-Digit Profit
The Easy Way to Play the Max Yield Game
Going Down Under for Big Profit
A 30% Gain for Every Penny Move
The Best Strategies in Each Interest Rate Environment
Monitoring Interest Rates on Your Own
Sizing Up Real Estate as an Investment
Is Real Estate Really a Good Investment?
The Negative Side of the Real Estate Picture
Mortgage Debt Has Grown Tremendously
Massive Speculation in Some Areas
The Positive Side of the Real Estate Picture
Housing Is More Affordable Than It Has Been in 30 Years
When Home Prices Are Affordable, Housing Prices Boom
The Housing Market in Your Area
International Real Estate Opportunities: Five Advantages and Three Ways to Make Money
Finding What’s Right for You Overseas
Understanding Real Estate Cycles: The Key to Real Estate Investing
How You Can Make Money in Real Estate
Real Estate Looks Good Compared to Other Assets
How You Can Monitor the Real Estate Picture for Yourself
Rule 1: Don’t Fight Interest Rates
Rule 2: Don’t Fight the Price Trend
Rule 3: Pull the Trigger Without Hesitation When It’s Time to Sell
Monitoring Real Estate Strategies
Part 4 Safeguarding Your Financial Freedom
Real Estate Strategies You Can Use for Profit
Choosing Your Strategy
Strategy 1: Buy and Hold
Strategy 2: Quick Cash
Assignment of Contract
Strategy 3: Cash Flow
North 68th Avenue, Phoenix, Arizona
West Kerry Lane, Phoenix, Arizona
North 30th Drive, Phoenix, Arizona
Six Keys to Investment Success
Fundamental 1: Protect Your Equity
Set Up an Escape Hatch Before You Enter an Investment
Defining Your Worst-Case Loss
Thinking in Terms of Reward-to-Risk Ratios
Understand the Initial Risk in Your Investment Strategy
Fundamental 2: Keep Losses Small
Taking Small Losses Keeps You in the Investing Game
Proper Investing Psychology Is the Key to Keeping Losses Small
Fundamental 3: Grow Big Winners
Growing Big Winners with Long-Term Investments
Understanding the Trailing Stop
Fundamental 4: Understand the Relationship Between Risk and Reward
Fundamental 5: Understand How Investment Frequency Affects You
Fundamental 6: Make Sure a Position Is Moving in Your Favor Before You Enter It
Using Position Sizing to Meet Your Objectives
Understanding Position Sizing Through the Marble Game
Calculating Your Own Position Size
Position Sizing Equalizes Risk (R) Across Investments
Using Position Sizing to Meet Your Objectives
Safe Strategy Position Sizing
Strategy 1: Don’t Risk More Than 1%
Strategy 2: 1% Risk with up to Four Scale-Ins
Strategy 3: Position Sizing Based upon Your Worst-Case Drawdown
Strategy 4: A Safe Strategy Allocation
Answering Your Questions on Position Sizing
Knowing Your Strategy
Why Your System Works
Stay up to Date
Keep Track of the Bear Market
Track Inflation and Deflation
Keep Track of Debt
Track the Value of the Dollar
Track Real Estate
Understanding the Money Game
Human Psychology
Laws, Rule Changes, and the Government
What Big Money Does
How Will My Strategy Perform in Various Types of Markets?
What Can I Expect from My System?
How Do I Know My Strategy Is Working? The Periodic Review
Part 5 The Future
Fixing Your Mistakes: The Key to It All
The Brutal Truth: People Get What They Want
Taking Personal Responsibility: The Fastest Way to Reach Your Goals
Honestly Admitting Your Mistakes
Correcting Mistakes to Get You Back on Track
Securing Your Future: Educating Your Kids and Grandkids
Developing Concrete Habits
How Would You Like an Increase in Your Allowance—Say Between $4,000 and $18,000 a Month?
The Remarkable Two-Box System™ for Instilling Good Money Habits
Why Half Is Good
Preventive Medicine for the “Gimmes”
Six Super Savings Ratios
Making the Seeds Grow
Conclusion
Getting Started Now
Step 1: Develop Your Financial Freedom Plan
Step 2: Learn the Key Factors Influencing Today’s Market
Step 3: Understand and Implement Risk Control
Step 4: Work with Yourself and the Next Generation
Index