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78 pages

English

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This shockingly bold revelation of the current and future state of investing in the US stock market is delivered in two distinct parts – Part One provides the reader with a provocative insight into the aspects of our current society that have contributed to the demise of the average American Investor as we knew him. Everything from the stock market crashes, political and legislative changes to the pathetic parade of financial professionals being indicted for Ponzi schemes. Not only have these events had a critical impact on the day to day trading as well as the overall operation of our stock market but more importantly, it has had a tremendous effect on how Americans view and participate in the market. The clear unveiling of each f these issues or events is presented in a way that every investor will clearly understand how it has specifically affected the market. The reader then moves forward to Part Two, which is comprised of real life strategies and practices that will empower the average investor and encourage his rebirth as a new educated Global eShareholer that can build wealth in any market. This is no longer your grandmother's stock market and you can no longer invest as if it is!"

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Maison

Finances domestiques

Economie gestion

Economics

Business

Finance

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Publié par	eBookIt.com
Date de parution	21 février 2013
Nombre de lectures	0
EAN13	9780615458878
Langue	English
Poids de l'ouvrage	1 Mo

Informations légales : prix de location à la page 0,0748€. Cette information est donnée uniquement à titre indicatif conformément à la législation en vigueur.

Extrait

Death of the American Investor

The Emergence of a New Global eShareholder

by
Nico R. Willis

Copyright 2011 NetWorth Publications LLC,
All rights reserved.

Published in eBook format by NetWorth Publications, LLC
Converted by http://www.eBookIt.com

ISBN-13: 978-0-6154-5887-8

No part of this publication many be used or reproduced in any manner whatsoever without written permission except in the case of brief quotations embodied in critical articles and reviews. For information, please write to NetWorth Publications, LLC, 1661 E. Camelback Rd., Suite 200, Phoenix, AZ 85016.
602-222-6380 Office
602-222-6383 Fax

Praise For
Nico R. Willis’s
Death of the American Investor

“Finally a common sense book to help investors after one of the most difficult investment decade in the past fifty years.”
—ROD HAGENBUCH, author of “Investment Survival” and “Becoming a Life Advisor” world-famous philosopher

“Nico provides a keen perspective of the inner workings of the securities industry and the direct and unintended impact on shareholders. His views about electronic communication with shareholders for investing and maintaining securities assets is spot-on.”
—JOSEPH TREZZA, President, Seagull Securities Consulting, Inc.

“Death of the American Investor has accurately described the changed environment for investors and problems they have confronted. He has provided an excellent road map going forward.”
—LESLIE ALLEYNE, Individual Investor

“Nico has captured the essence of the dramatic changes in investing over the past two decades, the impact on investors and what to do about it.”
—MICHAEL GERITY, Managing Director of Israel & Gerity, PLLC and Individual Investor

To my son, Caiden

This publication is intended to provide general financial information aimed at educating the reader on the subject matter covered. While every effort has been made to ensure the accuracy, completeness and timeliness of the material presented, due to the rapidly and continuously changing nature of financial matters, the authors cannot make any guarantees as to these matters. Furthermore, the information provided, as well as any recommendations, cannot take into account all of the unique circumstances present in a reader’s financial picture, and nothing contained in this publication should be considered as personalized investment advice tailored to the individual needs of the reader. The information contained in this book should not serve as the sole or primary basis for making investment decisions, and readers should consult with a financial advisor if they are seeking individualized investing advice and counseling. Under no circumstances are the authors of this publication giving investment advice, tax advice, legal advice, or other professional advice. You should always seek the assistance of a professional for advice on investments, tax, the law, or other such professional matters.

Acknowledgments

Marisa Diaz – thank you to Marisa Diaz for which this book would not be possible without your invaluable writing contribution and your unique ability to translate highly complex financial concepts into a fun way of learning.

Beth McRae – thank you to Beth McRae who called one day and told me I needed to write a book and contributed to the effort.

Elizabeth Day – thank you to Elizabeth Day for her editing contributions.

Laura Bramly – thank you to Laura Bramly, a communications consultant, who contributed her project coordination, writing, and editing skills to the book.

Anthony Tomei – for providing marketing expertise and social media campaign strategies.

1160 Design – thanks to the team at 1106 Design for designing the book’s interior.

Steph Sweet – many thanks for creating the graphs, tables, and other graphic elements in the book.

A&A Printing – many thanks to A&A Printing, who prints in the United States and can be reached at printshopcentral.com.

Mike Pickett – thank you for the valuable insight and expertise in today’s tax environment for investors.

David Dees – thank you to David Dees at deesillustration.com for designing and illustrating the book cover art.

Christian Diaz – thank you to Christian Diaz for helping me to explore beyond what I thought I already knew.

Kevin Steele – thank you to Kevin Steele for a second look at the Federal Reserve Bank.

NetWorth Services – thank you to the entire team at NetWorth Services for their focus and continued commitment, ensuring that the company remains competitive in our business. They gave me the freedom to pursue this book and educate investors in these changing and uncertain times.

INTRODUCTION

“The investor of today does not profit from yesterday’s growth.”
—Warren Buffett

The literary market is filled with investment books, some good, some bad, most talking about the same old investment strategies. I started my career as an investment broker and then as a vice president at a well-known brokerage firm for many years, which provided me with an up-close-and-personal insider’s view of the operations of the stock market. I read my fair share of those books as an investment professional and as an investor myself. I always felt that the books that were meant for the individual investor were missing much of the underlying information that was critical to actually succeeding in the market.
It was also during this time in my career that I realized that average American Investors are at a disadvantage in calculating their adjusted cost basis for their securities. Investors have always been responsible for reporting their capital gains on the Schedule D correctly, yet they were at a disadvantage by not having access to all of the information needed to properly calculate their cost basis. So in response, I began a software company that markets an automated solution to everyday taxpayers so that they can access the same information the professionals have.
Even though I have been in the brokerage business for some time now, the evolution of the market, the recent financial crisis, and other drastic paradigm shifts inspired me to once again bring the average American Investor on the inside, so I wrote Death of the American Investor.
History can provide us with so much valuable information, but we don’t seem to take advantage of it. Do we just have short memories, or are emotions like greed so strong that they supersede all rational thought and carry us to the brink of disaster, taking all willing parties with us?
Death of the American Investor is also about rebirth. It is about a Phoenix bird rising from the ashes of financial disaster. It is about a world where investors are empowered to take control of their investments and, with technologically advanced tools, make solid, strong, sound decisions that will provide them with prosperous futures.
In this book, we will travel through time and look at the history of the stock market. We will examine the current environment for investors and review the insidious investment scams and Ponzi schemes that have rattled the collective American mindset, not to mention the numerous financial institutional failures. We will take a look at the trend toward a paperless society and investment world and the exciting innovations that lie ahead for investors.
Equally important is an understanding of the elements that make up investments, whether they are stocks, estate planning, retirement, taxes, mutual funds, or bonds. The year 2011 marks the first time cost basis regulations, courtesy of the IRS, will go into effect. There are decisions to be made about all of these things that dramatically impact investors’ outcomes from now on.
And there is the discussion about brokers’ fees. As an investor, if you decide to take more control over your investments, you will want to take these into strong consideration, especially given the conflicts of interest that have surfaced in news reports in the past few years regarding brokerage firms.
Speaking of brokerage firms, we will cover some behind-the-scenes secrets your broker never told you about, lifting the veil of secrecy in the brokerage world. An informed investor is an empowered investor.
What does this all mean? What are you supposed to do about it? Why should you care? It’s your money, that’s why. You don’t have to sit back and be at the mercy of some giant investment firm with a broker who tells you what to do and pushes the buttons for you. There are amazing tools available that are remarkably easy to use and allow you to push the buttons yourself. You control your money and your future, and you don’t have to worry about seeing it go down with the Titanic if and when another financial institution fails.
Controlling your financial destiny and building your wealth—that’s what this book is all about.
—Nico Willis
Author, Death of the American Investor

PART ONE: Death of the American Investor

Chapter One
Ground Hog Day

“Those who do not learn from history are doomed to repeat it.”
—George Santayana (1863–1952)

T his story begins under a clear blue sky of unprecedented prosperity and a forecast of continual economic expansion. As this feeling of euphoria spreads across the economy, it naturally makes its way to lending institutions that happily open their doors of credit and leverage to just about everyone. Mortgages are easily obtained for existing residential real estate as well as construction, resulting in an all-time high for construction starts. As land values steadily climb, so does the credit consumption of borrowers who have no trouble using their land (even unfinished construction) as collateral. Although many people revel in the sunny outlook and seemingly boundless prosperity, in reality, it is the beginning of the dark days of a housing bubble.
Over time, it becomes more and more difficult for people to pay mortgages that wer