THE MVET WAY CEMN NEWSLETTER_APR_MAY_JUNE_2018

Investing in the Financial Markets

The good news is there is a perfect balance of investing for retirement and also capturing gains along the way to help build wealth much quicker and even having enough funds to use year after year to supplement income, or to us as pas- sive income in various ways. The wonderful thing about trading and investing is that age, location, creditworthiness and your education level is not a barrier. Participating in the financial markets is open to any- one who wants to do so. The only downside is, it takes mon- ey. Many bankers do not have a solution (investment vehi- cle) to offer people who have under 50K. This portion of the population is left behind and tend not to participate at all in the financial markets. Why does it take so much money to invest? To afford the best stock making better selections that give the best return potential. After all, you will be judg- ing the performance, right? Even when investing in options and using the leverage they provide, we still need to initially fund the account as we would going through the traditional banks and funds of- fered. The clients that do this will save years of trying to build up their account size, and they will be able to see a professional level performance because the account can afford the best opportunities the market provides. Smaller accounts have to think slower growth, smaller returns, high- er risk and longer term. This is why it is best not to think along the lines of what is the “minimum” I need to invest. Instead, it is what is the maximum I can invest and yet be properly set up and balanced with the rest of your financial plan. Everyone starts investing where they can afford to start and work on building the account up over time. Others who al- ready have 50K, 100K or more are fortunate; they can save years of “building up the account” to a decent size and get right to the investing and compounding with lower risk in- vesting and reap nice returns. Start where you can, with funds you are comfortable investing now that you under- stand your options.

By Jennifer Glick

Part 2 Options, that nice little secret the wealthy have been using for years.

Wouldn’t you like to have the ability to make money when stocks move up and down? Since that is the behavior and nature of how stocks move? Hedge funds offer both stock and option investing. By law, only “qualified” investors could participate. Qualified meaning wealthy, thus leaving the non -wealthy or most retail investors in the dark, only being able to make gains when stock move higher. Setting them up for huge losses when markets move lower, sell off or crash which is all still part of the normal cycle of stocks and finan- cial markets. Professional traders and institutions trade options, some use options only saying holding stocks are too risky. Who do you listen too? It can get very confusing as an investor. I am going to help you understand your choices, understand how markets work, how many aspects of the financial mar- kets work just the opposite of how you have been taught. How detailed education has been deleted out of public education and few colleges teach more than a para- graph about options and their importance and safety when investing. We will give you what you need to know to make an in- formed decision when looking at places and vehicles to in- vest your capital. You might be surprised to learn like I was how that which is labeled risky is a lower risk when you know how to use them properly. And the massive billion dol- lar mutual funds that hold retail investors' retirement ac- counts have the risk that is not spelled out to clients when making decisions to invest. Institutions get around this by convincing us to invest for the long term, thirty years or more. They have taught us not to expect a financial return we can use for the near term.