Here’s an interesting concept that we noticed while researching income-producing options: If you’re a senior in good health, you can maximize the money you receive from an annuity by waiting to buy it until you are past age 75.
This applies to immediate-fixed annuities in which you usually give money to an insurance company and receive a monthly check for a specific amount for the rest of your life. They lost some of their popularity when interest rates nose dived in recent years, but that hasn’t dented their reputation for safety or the allure of a steady income.
Even with interest rates near historic lows, you can still maximize your return from an immediate-fixed annuity if you don’t invest until you turn 75. The key is life expectancy.
At advanced ages, the payout is determined less by prevailing rates than by something called “mortality credits.” Simply put, the insurance company expects that someone age 75 or 80 will not live as long as someone 65 or 70. They can afford to pay the older person more each month because the odds are that they won’t have to pay too long.
Figures from one insurance company showed that $100,000 invested in an immediate-fixed annuity would provide $7,740 per year for a 65-year-old male and $10,068 for a 75-year-old. At age 85, the annual payout is $14,688.
If you delay until 75 or later and stay in good health, you’ll take in much more money over time. But if you die soon after purchasing the annuity, the opportunity will leave with you. That’s the primary risk, and only you can decide if it is a worthwhile risk.
The other risk is interest rates. They are still low but are beginning to creep up as the economy improves. After all the pump-priming by the Fed during the past three years, there is a lot of cash sloshing around the economy. If that cash starts chasing goods and services in a roaring economy, there is an increasing chance for inflation and ever-higher rates. So buying an immediate-fixed annuity now could look like a poor move in a year or two when the interest return might be significantly better.
A way to get around these uncertainties is to buy an immediate annuity that guarantees payments for a predetermined period, maybe five or 10 years. If you pass away, your heirs will still receive the monthly income. If you live, you can reevaluate the interest-rate environment in five or 10 years, take advantage of your mortality credits, and perhaps lock in a much-better monthly payout.
Of course, this sort of investment is not for every senior. You should consult your financial advisor first and get facts and figures from several insurance agents before making a decision.
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On the assumption you haven’t yet figured out gambling house card-playing, then feel free to read on —
A description of a betting house is a construction that presents gambling. Here, patrons are expected to have fun by operating the one-armed-bandits or some other pastimes. Gaming hall games more often than not have logically determined chances governing them which promise the house secures an versus the gamers.
A huge number of betting saloon games encourage you to get habituated rapidly. For example the archetypal one armed bandit, a cash operated contraption with 3, sometimes more gears that circle when a handle connected to it is operated. This gadget normally renders corresponding with a string of designs observable on the front panel of the contraption. Regrettably, gaming establishment games strive to create an appearance of having the upper hand, effectively deluding the gambling aficionado — the addressee is challenged with decisions, but these cannot really remove the player’s statistical negative odds. This is precipitated by the betting establishment never paying out the full sum as hoped for. This systematic pattern is often noticeable in well-known casino games like Texas hold’em, dice, roulette or blackjack. Seven card stud poker is undeniably a highly trendy casino pastime. The gamers, playing with screened hands, make bets in a principal pot which is finally bestowed onto the prevailing player possessing the highest set of cards. (And yes, the coolest bluffing hand may well prevail)
Comparable to Texas hold’em poker, blackjack is likewise an immensely trendy casino game. A considerable portion of its is by virtue of its particular mix of luck and know how & decision making, as well as a system named “counting”. This is a particularly sophisticated strategy in which gambling aficionados will dramatically switch the chances of the game to establish the upper hand by both betting & strategic decisions corresponding with the hands dealt.
“Craps” is a very popular wagering game where players predict the throw of two dice. Customers are betting on the outcome of of 1 spin, or on a succession of rolls on two dice. Contrary to blackjack, there can’t be a possible winner betting system you can make capital of to boost the odds.
Roulette is another insanely popular game of luck; a croupier will rotate a roulette wheel that has 37 (classical roulette) or 38 (American roulette) uniquely numbered pockets in which a rolling pellet must come to rest, which marks the winner and its related combinations. When our player happens to bet money on any given number which actually is successful, in other words they’ve got a lucky hand, the set payout will be thirty five to 1, the original stake proper is repaid. Thus it’s multiplied by 36.
Persist in being emphatically on the watch nevertheless as each of these gambling saloon betting games may well be indisputably habituating. So many lives are proven to have been wrecked by reckless gambling & much as it definitely may be fun, seek to govern oneself.
We all want high return investments, but what is the best way to achieve substantial long-term capital growth?
Let’s look at the best investment, combined with the most powerful force in investing, and how they can create a high return investment that grows rapidly.
The Secret of High Return Investments
Albert Einstein called this: “The most powerful force in the universe” and investment terms he’s right.
Compound interest on an investment with low downside volatility is really the secret of getting high return investments to make huge gains over the long term.
Which is the Best High Return Investment?
When looking at high return investments the best combination is an above average return, linked to low volatility, combined with compound growth.
As an investment, UK land has provided better capital growth over time than most hedge funds, mutual funds, investment trusts, equities, or shares, and with a lower downside risk.
The overall price of farmland has increased by 30% in the last 12 months, and by 130% since the early 1990s, with an average 920% growth in the last 20 years.
The 920% over 20 years is average growth, and many investors have achieved far greater gains by careful plot selection.
Why UK Land is Providing Stunning Returns with Low Risk
UK land provides above average solid growth for the following reasons:
1. Population Growth - The population of the UK in 1981 was 56.2 million. In 2001, the population had increased by about 2.6 million to 58.8 million inhabitants.
2. Immigration - In terms of immigration, there is the granting of entry to the UK, of over 170,000 people per year. This constitutes over 60% of the annual population growth. Therefore, at current rates of growth the UK can expect to see at least an additional 3.4 million inhabitants within the next 20 years.
3. Social Trends - There is a rising divorce rate in the UK. Furthermore, more people are staying single by choice, and getting married later in life.
In the next 17 years, with the rising population and increased lack of affordable housing, the UK will need another 1.5 million homes.
Compounding a Small Sum to a Million!
We can see already that land has had fantastic growth year on year, and looks set to continue. The average gain was 30%, in 2004 alone.
Lets take an example now of compound growth in action:
$50,000 invested with a compound grow of 30% annually would take just 12 years to be worth over $1,250,000!
A steady compound growth soon adds up!
Of course, bear in mind that the above illustration is subject to the fact that investors may use bigger or smaller deposits, and there is no guarantee of 30% annual growth.
To make big gains, the formula for investment success over the long term is:
A High return investment + low downside volatility + the power of compound interest = big capital growth potential
Compound interest makes you money work harder, and as the amount increases, it soon adds up.
For High Return Investments Look no Further than Land!
Land tends to rise steadily in value year on year and with low downside volatility giving steady solid growth
Many hedge funds, unit or investment trusts, can be negative for years on money invested, or even never recover at all!
When considering long-term investments, land with its good growth potential and low downside volatility, makes it the ideal investment to benefit from compound growth
To learn more about UK land investments and get your free land info pack, please visit our web site: http://www.lpgroupinternational.com
One of the items usually at the very bottom of the list of priorities when planning an education is health insurance for college students. Most students are at an age where health insurance is not the first thing on their mind. In your teens you will usually believe that you are immortal so naturally you’ll not suffer from any illness.
The truth is, this is seldom true no matter how well a person might appear. An affordable student medical insurance plan isn’t for those with a lot of money, it is absolutely essential.
For those students who are covered under a family policy, virtually all family policies will extend to a college student up to their 23rd birthday. For the individual who does not currently have cover on their family plan, an essential part in planning for college has to be obtaining suitable health insurance.
So what should you look out for in a plan designed specifically for students? What’s your deductible? A deductible is basically a yearly amount you must pay before your medical benefits commence, akin to a car insurance policy. For instance, should your deductible be $500, 500 dollars has to be paid before applying for any financial benefits from the plan. So what precisely does co-pay imply? Once you have paid the deductible, most insurance policies ask you to pay a portion of the bill of each doctor’s visit, medication or operation. This is termed a co-pay.
What is your area of coverage? Numerous plans include Health Maintenance Organization and Partnership for Prescription Assistance. Basically this can mean particular specialists may be excluded from your “network” or not be covered on the medical insurance policy. In general all programs provide a listing of approved professionals, before making your selection ensure you consider this carefully.
What exactly is catastrophic coverage? There is often a limit on student health insurance policies in particular as far as catastrophic illness, in most cases, the cover is generally less than any regular medical insurance policy.
What about the restrictions? Student medical insurance plans may put in place diverse limitations. Study your insurance policy to discover the extent of your policy.
Have all the medical insurance details close to hand everywhere. Illnesses are not just impossible to anticipate, but they are unfortunately likely to hit at the worst possible time. Make sure you are acquainted with your plan even if you are included in a parent’s insurance policy.
When you change jobs, what do you do with the money you have accumulated in you company retirement plan? Tthe average American will have to answer that critical question eight times during a 40-year career. While retirement plan assets are typically as mobile as the workers themselves, nearly 60% of people who change jobs choose to take a cash distribution, despite the drawbacks.
Taxes - Now or Later?
A cash distribution may trigger a 20% federal withholding tax, as well as a 10% tax penalty if you are younger than 59 . It will also mean you’ll no longer enjoy the potential benefits of tax deferral that a qualified retirement plan offers. Even small retirement plan contributions may help you pursue large financial goals when earnings are allowed to compound tax deferred over time. You want to maintain your tax-deferred status as long as possible to maximize your gains.
Leave the money in your former employer’s plan.
Your former employer is required to allow you to leave the money where it is, if the balance exceeds $5,000. You can no longer contribute to the account, but you can still decide how the existing assets are invested.
Roll the money into an IRA.
By rolling the money directly into an individual retirement account (IRA), you’ll avoid taxes that you’d incur if you took a cash distribution, plus you are able to enjoy the benefits of tax deferral. An IRA also has greater investment flexibility because unlike a company retirement plan, an IRA gives you the freedom to select mutual funds and other securities that best suit your needs.
Roll the money into your new employer’s plan.
By rolling the money directly into your new plan, you’ll avoid taxes that could eat away at a cash distribution. It’ll also simplify your investment paperwork since you’ll only have one set of investments to monitor. Even if you’re not immediately eligible to contribute to the plan at your new job, you may still be able to roll the money over right away.
Make a Choice That Fits Your Goals.
If you plan to change jobs, don’t take the money and run. Meet with your investment representative to explore alternatives and consider the potential impact on your long-term financial goals.
Roger Sorensen
America’s Financial Guide can be found at ==>http://www.Slave2Work.com Subscribe to Money Basics via http://www.slave2work.com/ezine.html
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After receiving the e-mail I sent out last week, a client called and asked “what is the point of all of these charts that you refer to?”
I told her that “point and figure charts, and the strategy that I use with those charts, is designed to prevent you from being involved in a disaster.”
I asked her to humor me for a moment and let me tell her about a gentleman I recently met.
In 1998, he decided that he’d retire in mid-2000, when he turned 65.
Back then, his 401k plan was worth $1,214,000.
He expected to withdraw $80,000 per year from the plan (or about 6 to 7% of the balance), when he figured this out in 1998.
He went on to tell me that he expected this would be a reasonable amount, because the market had returned an average of 15% per year for the previous 15 years.
Even if the market didn’t make 15%, he said, he read somewhere that “over the long haul, the market returned a little over 10% per year, going back to the 1920’s.”
So, since he planned to only take out 6 or 7% per year, and it’s growing at least by 10% or more, he estimated he would never run out of money.
So he made big plans!
He planned to renovate his house, put in a pool. Also do a little traveling, something he never had time to do while he was raising a family and working. His wife also made plans to stop working as well.
His retirement date was Friday, April 14, 2000; his 401K had a value of $1,277,000.00.
One year later, in April, 2001, his 401K plan had a value of $979,000.
By December 2002, his 401k account was worth $764,000.
He had not even made a withdrawal yet, but his solar-powered calculator told him bad news: he’d be scrounging for money by the time he was 76. The $80,000.00 per year he planned to take out would now drain this account entirely in about nine years.
The distribution was scaled back, from $80,000 to $24,000.00 a year.
Going from $80,000 to $24,000 a year was a lifestyle change for him. He felt burned. Dreams of traveling went out the window. Buy a new car? No chance.
His wife has taken a job in the library. He’s now back at work, as a consultant, hustling for jobs. And now he’s just learned that his former company is changing their healthcare plan for their retirees.
What if this were you in this situation?
Right now, he wants to forget about asset allocation, pie charts and “pie in the sky” stories of long-term returns and growth rates. He told me that pretty soon, he won’t be worrying about “pie in the sky,” he’ll be wondering…
how to get pie on the table!
Moral of the story: when the point and figure charts go on defense, we should heed the warning!
Please don’t get “sucked in” to the concept that the market returns an “average of ___% per year” and “over the long haul” things will work out OK.
Just know that going on defense doesn’t mean the market will go immediately straight down.
What we DO know is that the risk of losing money in our accounts is much higher when the indicators are flashing defense. This has been the case since the bullish percent charts were created over 50 years ago.
If you want me to show you how these charts can guide you, just call me and I will GLADLY show you in less than 10 minutes.
This is where stock selection is key.
There has never been a more crucial time for you to be working with someone who watches the market on a daily basis. If you have any questions whatsoever regarding our game plan, you need to call me immediately at the office. The number is 732-223-9000.
Since the summer of 1998, there have been four times where the S&P 500 has returned 20% or more. And there have been four times where the S&P 500 has LOST 20% or more. In just seven years!
But if you just sat there and “held on,” no real progress was made. You can look it up; you’re right where you stood in 1998. Pretty soon it will be a decade where the “buy and hold” investor will have made no money.
Thomas P. Mullooly, President of Mullooly Asset Management, LLC (http://www.mullooly.net) has spent over twenty years in the investment industry, as a broker and as an investment advisor.
China Demand for Uranium, World Growth in Electricity Demand to Drive Uranium Price Higher
Industry expert says all new production already factored in uranium price “We are consuming far more uranium than we are producing worldwide,” explained David Miller, Wyoming legislator and recently appointed president of Strathmore Resources (TSX-V: STM; OTC: STHJF.PK). “All the new production is already factored into the future market for uranium. We’re underwater right now without building one more nuclear power plant.” Nuclear reactor requirements have far outstripped current mining production (see chart below) for the past two decades. Current worldwide production is more than 80 million pounds, but the demand for uranium, which fuels nuclear reactors, is running an annual deficit of approximately 60 million pounds.
According to a World Nuclear Association report on uranium supply, published this past September:
“…the world’s present measured resources of uranium in the lower cost category (3.5 Mt) and used only in conventional reactors, are enough to last for some 50 years… Further exploration and higher prices will certainly, on the basis of present geological knowledge, yield further resources as present ones are used up… so a significant increase in exploration effort could readily double the known economic resources, and a doubling of price from present levels could be expected to create about a tenfold increase in measured resources, over time.”
Electricity: Uranium’s Supply and Demand Problem
“We’re not going to run out of uranium, but where will the price go to encourage new production?” asked David Miller. “We are around over $33/pound now. Could it double again? It wouldn’t surprise me at all.” Kevin Bambrough, a research analyst for Sprott Asset Management, heartily agreed with Mr. Miller, saying, “We have just started a long term uranium bull market that will end in a ‘uranium mania’ as utilities and countries drive uranium prices to unbelievable highs as they compete to secure supplies.”
That driving force is demand for more electricity. Over the past 25 years, total world energy use expanded by almost 50 percent, with stronger growth in electricity usage. Demand for electricity is increasing far more rapidly than overall energy use. Electricity demand has been projected to grow 2.8 percent annually through 2010, and substantially more between then and 2020. About 2 billion people currently have no electricity access, and with United Nations forecasts of world population growth by 1.5 billion people in 2020, electricity demand will continue to grow.
As an interim solution to the greenhouse gas problem and climate changes (e.g. the worst Atlantic hurricane season since record-keeping began), a growing number of countries are investigating nuclear energy to solve their burden of a soaring electrical demand. Presently, there is as much electricity generated by nuclear power as was provided by all sources worldwide in 1960.
Nuclear power generates more than 16 percent of the world’s electricity, nearly 24 percent of the OECD and 34 percent of the European Union’s electricity needs. In an April 2005 speech to the National Small Business Conference in Washington, President Bush announced, “Nuclear power is now providing about 20 percent of America’s electricity, with no air pollution or greenhouse gas emissions. Nuclear power is one of the safest, cleanest sources of power in the world, and we need more of it here in America.”
Demand for electricity is projected to impact other commodities as well, not just the price of uranium. In the Energy Information Agency’s Annual Energy Outlook 2005, U.S. electricity demand will bring about increases in natural gas consumption. By 2025, the electric power sector will account for 31 percent of total demand for natural gas, as consumption increases from 5.0 trillion cubic feet in 2003 to 9.4 trillion cubic feet in 2025.
China’s Demand May Be Greater Than Anticipated
Today, 441 nuclear power reactors in 31 countries provide more than 16 percent of the world’s electricity. In 2003, that was 2525 billion kilowatt hours. Eleven countries are constructing thirty more reactors, mainly in China, but also in Russia, Japan and Korea. The International Atomic Energy Agency has projected at least 60 new power plants will be constructed over the next 15 years. By 2020, nuclear power’s electricity production share will increase to 17 percent.
“China is the future wild card,” said Miller. “Their current uranium demand is miniscule. They have a small nuclear industry. They may have three or four thousand megawatts of capacity. Their uranium demand is only about 4 or 5 million pounds per year. They meet that internally from their own uranium deposits. But what they are planning for nuclear is probably the most aggressive program in the world. I visited China in 2003 to teach ISL (in situ leaching) uranium geology and ISL mining techniques to a couple of institutes. At that time, they were talking about building two new nuclear power plants per year for the next 20 years.”
But as Miller observed, they may have more ambitious plans. He added, “Since then, I have heard of more aggressive programs. One article I read recently was entitled, Let 1000 Reactors Bloom. That is more than 200 percent of the nuclear reactors we now have on earth. I believe that is what the Chinese will be doing in the next 40 - 50 years, converting nearly 100 percent of their electrical generation from nuclear power.” Currently, China is generating less than three percent of their electricity from nuclear energy.
Miller speculates of how this might impact the price of uranium, “If they are building nearly three times the world fleet in just China, then that would be about 500 million pounds of uranium demand from China in fifty years. Other companies are announcing new nuclear power plants.” What does that mean for the price of uranium? Miller concluded, “So, the demand for uranium is going up. I think the growth in demand will be more rapid than we realize.”
Uranium Mining: A Slow Process
David Miller, who was previously interviewed by StockInterview.com in June 2004 (view article), reflected on last year’s forecast, “I thought $30/pound was sufficiently high to encourage enough new production around the world.” But there are major issues with supplying the increasing appetite of the burgeoning nuclear power industry. Miller warned, “The problem with encouraging new production is you don’t turn these things on and off. The only uranium, coming onto the market in addition to what’s already planned right now, will come from the already-discovered deposits.”
Two years from now, Miller thinks the spot price of uranium could double again. “There are going to be a lot of people trying to put uranium mines into production, but it is not an easy process.” Permitting requirements in countries where most uranium is mined are roughly comparable. “If you haven’t done any work, after a discovery, it still will take about four to six years to mine in any of those areas.”
In early 2004, there were probably less than twenty uranium producers and exploration companies. Since then, the number of uranium exploration companies has jumped to more than 200. Miller warns investors that it could take up to 12 years for a grass roots project to begin mining yellowcake. Miller explained, “Starting, finding, permitting and mining a project is probably going to take a minimum of 12 to 20 years. From the start of the exploration program to defining the ore body, after you make a discovery, to starting the background and permitting process, to development and then finally mining - it’s going to take a long time.”
Through 2005, many uranium exploration companies announced new projects throughout Canada and the United States. Miller did not see how their efforts would immediately alleviate the uranium supply crunch, “If you are talking about any of those, such as in Labrador or the Yukon or in the basins outside the Athabasca Basin, or even within the Basin, for those that are just now doing their first exploration, you are talking the year 2020 before those could come online and supply uranium to the world market.”
But, what about the world’s richest concentrations of uranium in Canada’s Athabasca Basin? Will they help stem the rising uranium price? In a nutshell, Miller says no. He explained, “The next one to come online is Cigar Lake, but it was discovered over 20 years ago. Cigar Lake may come online in 2007 or 2008. There is another one called Shea Creek, which was discovered by Cogema more than a dozen years ago. They are having some very good results on that.” Could they start the permitting process on that one in the near future? “Absolutely,” Miller responded. “But you are talking about 8-10 years before that one could come online. It might be close to 2015 before it could bring any uranium to the world market.”
The future largest producing uranium mine in the world is likely to be Olympic Dam in Australia. It’s basically a copper mine with uranium grades. On October 27th Hong Kong-based institutional advisor Marc Faber, and author The Gloom, Boom and Doom Report, told Dow Jones newswire that he thought copper prices would fall by as much as 40 percent. (Note: Marc Faber also said, “I’d be a physical buyer of uranium.”) “What happens when copper is $0.50/pound? What will be their cost of producing that uranium?” asked Dave Miller. “Olympic Dam is low grade uranium, less than 0.05 percent U308. Their cost to operate the uranium portion of that will go up, if copper prices go down. It would make their cost higher, and they would be less inclined to sell it at a low price.”
Where else do utilities turn for their growing uranium needs? There are big known deposits in Australia, and one that has hundreds of millions of pounds of uranium in it. But, it happens to be adjacent to, and possibly partly in, one of Australia’s national parks. In other words, utilities are likely to be paying more for their uranium as this decade progresses.
David Miller argues that some of that uranium production is likely to come from the smaller, but well-capitalized, companies, such as Strathmore Minerals. “Our strategy from day one, and we haven’t veered from this at all, has been to acquire as many known uranium deposits as we possibly could,” explained Miller. “We started early in this uranium cycle in 2003. We were out there before 95 percent of these other uranium companies even thought of starting uranium companies. We were able to pick up some very good deposits in New Mexico and Wyoming. These are known, drilled-out uranium deposits in the country that’s produced as much as uranium anywhere else on earth. We’ve taken all that exploration information, where they discovered these old deposits, and have acquired a number of those old deposits. Now, we have opened a permitting office in New Mexico and starting the permitting process to put those into production, somewhere down the road. We don’t know if we can do it in four years or six years. It’s a long process and all kinds of studies must be done to get these fully permitted and into production.”
But there is a second part to the Strathmore Minerals strategy. Miller announced, “Don’t ignore the richest uranium province on earth, which is the Athabasca Basin in Canada. Strathmore is the Number One landholder in the Athabasca Basin., even larger than Cameco. We control approximately 3 million acres in Canada, and nearly all of that is in the Athabasca Basin. We have dozen different individual projects in the Basin. We are starting the exploration process on all of those. As I said earlier, exploration takes a long time. We have not made any discoveries yet, and it may be three to five years before we make a discovery.”
The case with Cameco (NYSE: CCJ), the blue chip publicly traded uranium producer, may also help fuel uranium prices rally to higher levels. They have forward sold their production. Added Miller, “I would bet their average sales price, under contract right now, of the 20+ million pounds they deliver every year is somewhere in the low teens - maybe $13/pound plus/minus $1-2. As these contracts mature, and bring on new contracts, that price is going to keep going up, but lag the market. They should keep going up for the next five years.”
And that should summarize why uranium prices are unlikely to suffer a down cycle over the next several years.
The Case for Nuclear Energy
As electricity demand grows by leaps and bounds during the 21st century, many of the world’s governments are seriously considering nuclear energy as a safer alternative to coal-fired plants. As many study the safety issues of nuclear-powered electricity, they tend to conclude that nuclear energy may very well provide a healthier, as well as a less expensive, alternative to present power generation methods.
Miller pointed out, “In the 1970s, when the anti-nuclear movement was very strong, the U.S. was then mining and burning 600 million tons of coal each year. And now, thirty years later, because the anti-nuclear industry was successful, we are burning 1 billion tons of coal per year, a 50 percent increase in the amount of coal we burn in this country.
According to the Environmental Protection Agency, U.S. air pollution in 1999, as a result of energy from coal, emitted more than 13 million tons of sulfur oxides and nearly 5.5 million tons of nitrous oxides. In a Harvard School of Public Health study, as many as 70,000 Americans are dying each year as a result of air pollution. From sulfur dioxide alone, Harvard estimated that 2400 Americans die for every million tons of sulfur dioxide emitted, or more than 30,000 American deaths annually.
But, air pollution is far worse elsewhere. “The pollution levels in China - from Shanghai to Beijing - are shocking,” said Miller. “Emphysema kills 5,000 people per year in the coal mines. They need nuclear power, probably more than any area on earth, to clean up their air.”
About David Miller:
David Miller, P. Geol.
President & COO, Strathmore Minerals Corp.
David worked for over 20 years with Pathfinder Mines Corporation/Cogema, the second largest producer of uranium in the world, the last 4 years as its chief geologist for in-situ operations in the US. Mr. Miller has over 25 years of experience in the exploration and acquisition of uranium properties. He has also consulted in uranium exploration, mining, and “in-situ” recovery for the International Atomic Energy Agency (IAEA) in Vienna. In association with the IAEA, David also taught uranium geology, exploration and ISL mining practices at the Beijing Research Institute of Uranium Geology and Mining. Mr. Miller is also an elected member of the Wyoming Legislature. His committee assignments include the Minerals and the Energy Council. Mr. Miller has been the key architect behind the Strathmore Mineral Corp’s property acquisition strategy in the U.S. in identifying drilled out in-situ leach recoverable uranium properties in Wyoming and New Mexico.
November 16, 2005
By James Finch
StockInterview.com
James Finch contributes to StockInterview.com on a regular basis, which is found at http://www.stockinterview.com
The most important reason for buying a timeshare is because you and your family are going to use it. Don’t get drawn in by some slick sales pitch into buying an interest in a property if you are not likely to stay there and never ever buy a property purely as an investment.
If you buy a timeshare in a resort that you love and you plan on vacationing there every year, then it will turn out to be a great investment especially if you take into account savings on hotels over the years and other factors, says Patrick E. Dougherty, owner of Timeshares United, which handles timeshare properties worldwide.
“With time share ownership available for less than $2,000 a week, buying makes a lot of sense to many people. For about the price of just one vacation, you have a deeded luxury property you can use for years and years to come,” he says.
“And, if you don’t want to go back to your timeshare every year, you can rent it out and choose to stay at any one of 5,000 other resorts in 90 countries around the world. All the time, you have an asset that you can sell at any time if you need to,” Dougherty adds.
There are a number of things that potential buyers should be aware of, he says. It is usually much easier to sell a timeshare property in one the most popular resort area and the week being offered is also important. If you have a week at one of the most popular times of the year, you can sell at a premium,” he says.
That is why you must choose carefully when buying in the first place. You may love a particular resort but if it is not popular, you are not likely to find too many buyers. If you want to rent, you are also more likely to attract people if the property is in a top destination.
Equally, pick your week or weeks carefully. Remember that if you buy a week during the most popular times of the year, it will give you greater bargaining power when it comes to exchanging your week for one at another resort and it will also help you sell for a better price.
Resales offer some of the best bargains. If you buy from the resort developer you normally pay a premium which can be as high as 40% to cover sales costs and marketing. You don’t have to pay this premium when buying from an existing owner.
“People buy timeshares for a lot of reasons. Some get carried away and buy on impulse and then find they cannot use the property. Others buy but then their circumstances change and they can’t afford the management fees. In any event, these distress sales provide some of the very best bargains around if you can find them,” says Dougherty.
The following top five is by no means the one and only list, it lists my top ski resorts skiing holidays in the European Alps. People could opt for Chamonix, Plateau de Beille and Les Grands Montets but this list represent my favorite skiing mountains.
1. Sestriere, Italy ” Friendly family skiing resort renowned for its pistes that are connected to the Milky Way. A great place to visit with fantastic snow reliability and a range of slopes with some tougher pistes for the more experienced skier.Val dIsere, France ” One of the most famous resorts in Europe for the experts, it is no surprise that its often a busy place. However, even beginners can find something here as they have pistes for all standards and abilities with the huge area linked to Tignes.
2. Kitzbhel, Austria ” the 5 main skiing areas around the resort have plenty of slopes catering to the needs of everyone - this ski resort is one to try out. Contrary to the easy going nature of most of the courses Kitzbhel contains one of the most challenging world cup circuit courses in the world,the Hahnenkamm.
3. Flims Laax Falera, Switzerland ” Is famous for its 3 connected mountains: Flims, Laax and Falera making up one of the most popular skiing areas in Switzerland. It is more for the intermediate skiers and beginners, with over 130 miles of slopes to satisfy all skiers.
4. Verbier, Switzerland ” With its four fantastic valleys and over 240 miles of slopes, this is a resort more for the experienced skier looking for a challenge. Exploring its off piste and moguls are just some of the things that make it worth your visit.
5.Chamonix, France - Situated at the foot of Mont-Blanc this town boasts fantastic skiing such as Les Grand Montets (1235 m ” 3000 m) and the linked areas of Br©vent / Fl©gre (1030 m - 2525 m) whilst providing a sense of adventure that won’t disappoint.
There are many reasons why investing in real estate over other investment avenues is a safer and more profitable route to take and we will go over just a few of these factors with you in this article.
First thing to note is that if you look at the real estate market as a time line compared to the stock market you will notice that real estate is a growing line with few major fluxuations. On the other hand the stock market has high points and valleys that range from quick high’s to sudden drops through out it’s history. It’s harder to look at the time lines of other forms of investing i.e. currency investing, mutual funds, buying gold and silver etc - but one thing is clear, no other market is as profitable or as safe as the investment real estate market.
Many people ask me “Why is investing in real estate such a safe investment?” and the answer is as simple as it is complicated, the quick answer is “God isn’t making any more of it” the more complicated answer isn’t as poetic. The reason investing in real estate has so many benefits has many factors, I will go over the basics with you now:
1. Government Tax Breaks - The United States government has setup multiple tax breaks for real estate investors including the very popular 1031 exchange. The textbook definition of a 1031 exchange is:
“A 1031 exchange or Like kind exchange is defined by section 1031 of the Internal Revenue Code. This code specifies that if an asset, usually some form of real estate such as land or a building, is sold and the proceeds of the sale are then reinvested in a like kind of an asset then no gain or loss is recognized, allowing the deferment of capital gains taxes.”
The simple explanation is as long as you reinvest the money you made from your real estate investment into another investment you don’t have to pay taxes on said profit. No other form of investing gives you this much freedom with taxes.
2. Anyone Can Invest - Because real estate investing is so profitable and safe it see’s a huge amount of amateur investors entering the market everyday. Why else do you think all these infomercials are on late at night talking about the millions they’ve made overnight with someone’s CD set? O.k. I’m not saying that buying one of those CD sets will make you a millionaire but they are good to learn the basics of real estate investing from. The big problems with these CD sets is they teach making millions in real estate with bad credit or without spending a dime. This is not the case, 99.9999% of the time you will need excellent credit and a good amount of money for the down payment on an investment property (usually 10-20%).
3. Other People’s Money - Why invest your money when you can invest someone else’s? One of the big rules in real estate investing is “If someone is willing to flip the bill - let them”. Banks are more then willing to give out a loan to buy houses because unlike other forms of investing they have something tangible they can keep if you don’t pay up. Banks are usually not as willing to give loans for stock or gold investing because the stock you invested in maybe worth nothing by the time you sell and the bank has nothing OR you take your gold and run across the border. Real estate is almost always going to be worth something (often increasing in value every year) and their hasn’t been a recorded case yet of someone taking a house across the border.
Right now the investment real estate market is booming like never before in history and those investing in it are being rewarded more so then in any other time in. If you want more information on this explosive market feel free to visit my website or give me a call and I will answer any question you may have.
Goldberg Executive Realty Group
Mark Goldberg
Phone: 1-866-247-2259
E-mail: GoldbergRealtyGroup@cfl.rr.com
http://www.InvestRealEstate101.com
