Toronto is doing fine

This quote is from Warren Buffett in 1979. The world’s most successful investor sums up the simple reason why 1% of the world controls over 50% of the wealth. It is that 1% that moves boldly when others sit on their hands, worrying about what could go wrong.

Honestly, the constant barrage of negative media attention with regards to real estate and equities has become absurd. Nowadays, there is too much media, an endless void that needs to be filled by vacuous talking heads. It is hard for regular people to gain perspective with the constant media backed threat of bubbles and crashes. I have been at this for 23 years and I have seen 3, perhaps 4, recessions of one kind or another and I can tell you with certainty that never before has there been so much media time devoted to this subject, and it is not due to any fundamentals; it is due to the need to fill air time. They have to talk about something.

The time to buy anything is when people are selling; the time to sell anything is when people are buying. These two simple laws are how one can create great wealth, following them is another thing. The other factor that is vital is time, and patience.

I am amused by the idiotic reporting I’ve seen lately in the local and national newspapers. The Toronto Life magazine recently published a “Bubble Trouble” feature on the cover, and of course BNN has been hammering home misleading facts and statistics about the national and local level real estate markets for months.

The truth sells less ad space and reduces circulation because it is less catastrophic. Does anyone really believe Toronto’s real estate market is due for a large correction? This is the most patently absurd theory I’ve heard in 10 years. Why, after a debilitating, horrific 9 month economic meltdown did our local market bounce back so fast? And why now would it collapse? Those of you sitting on the sidelines are going to miss the boat again, as you have for the last 19 years. I suggest you wait until you get a clear sign that you should buy; however, you may be interrupted in the meantime by death. How sad, putting a hold on one of life’s best experiences; owning a home, to wait for a clear sign from above that now would be the right time to buy.

As for the recent misleading stats and facts, I’ve been witnessing for months now, I will summarize what I believe to be true. Many properties are selling for more than the asking price, most for full price. For July 2010, the average central Toronto sold price to asking price ratio was 98%. It was 98% for August as well. In July, the time to sell was 33 days, and 36 days for August. If you listed your condominium this summer for $250,000, it was very likely that it sold for $245,000 in one month. C’mon people, does that sound like a problem? The volume of MLS sales in July 2010 may be down 34% over July 2009, but this needs to be kept in perspective. July 2009 was the best July on record, beating the previous best July by 11%. If we based all of 2010 on July’s 6564 sales, we would have 78, 768 sales, or the 7th best year on record and August numbers were similar. Of course, that won’t happen because this summer, like virtually every other summer was slower than the spring and it will be slower than the fall. I expect 2010 to finish up with 88,000 sales. Only 2007 will go down as a better year overall.

The new development market is still very busy and will likely stay busy for the foreseeable future as we struggle to find a way to deliver the required 50,000 homes per year to keep up with the real population growth.

Our city is in great shape. Our real estate market is in great shape. The media is filled with journalists trying to put bums in seats. Scary economic news sells. We are through the worst and if anything, expect prices to rise for the next several years in Toronto.

Source: Brad J Lamb | torontocondos.com

Make money without a degree

Sales director: $91,900/ $44 per hour

2. Security administrators, computer network
“As technology increases its reach, cyber crime is becoming a major concern for companies,” says Debra Yergen, author of the “Creating Job Security Resource Guide.” Security administrators work to prevent, troubleshoot, and repair security breaches while educating network users on cyber safety. Certification or relevant experience is essential to entry to this field, especially in absence of a four-year degree.

Security administrators, computer network: $72,000/ $35 per hour

3. Elevator installer/repairer
Elevator assembly, installation and maintenance are the main responsibilities of this position. Participating in an apprenticeship program coupled with paid on-the-job training is the standard, and workers must pass a licensing exam. Union membership is typically required by employers, and unions can help to ensure “an excellent salary, benefits, and pension,” says Marky Stein, author of “Get a Great Job When You Don’t Have a Job.”

Elevator installer/repairer: $67,100/ $32 per hour

4. Real estate broker
Usually commission-based, real estate brokers’ salaries are sensitive to shifts in the economy. Despite the current real estate market, Yergen predicts “resurgence in salary in 2010 with the extension of the housing tax credit.” Brokers are tasked with understanding real estate markets, performing transactions, and advising buyers on their financing options. Additionally, real estate brokers must pass a written exam and maintain a license.

Real estate broker: $65,400/ $31 per hour

5. Nuclear medicine technologist
“Nuclear medicine technologists administer a type of drug called radiopharmaceuticals to patients and create diagnostic images that ultimately determine the presence of a disease,” explains Yergen. With an increasingly large middle-aged and elderly population and advances in technology, job growth for nuclear medicine technologists is likely to remain steady. A certificate or an associate’s degree is needed, and a license is a requirement for many employers and states.

Nuclear medicine technologist: $64,100/ $31 per hour

6. Radiation therapist
Administering radiation treatment to cancer patients is the main role of a radiation therapist. “As radiation therapists continue to be a critical part of the medical radiation oncology team, it will translate into an uptick of jobs,” predicts Yergen. There is also room for personal advancement in this field, with opportunities that include teaching and research. Training through an associate’s degree or certification program is necessary, and a license is required in many states.

Radiation therapist: $63,500 / $31 per hour

7. Construction manager
Construction managers oversee the construction of structures, facilities, and systems, and are often on call around the clock. On-the-job construction experience and/or completing a construction management certification program provide entry to this position.

Construction manager: $63,400/ $30 per hour

8. Air traffic controller
“As an air traffic controller, your job will be dedicated to keeping the skies safe. It is a very demanding and rewarding occupation.” says Abboud. Providing an essential role in aviation, air traffic controllers ensure that planes maintain a safe distance between each other and help to coordinate efficient scheduling.

With most positions employed by the Federal Aviation Administration (FAA), air traffic controllers must complete a FAA-approved education program and pass a pre-employment test.

Air traffic controller: $63,000/ $30 per hour

9. Video game designer
Video game designers create the storyline and structure of a video game and determine the rules of play. They typically need to possess an understanding of software design and computer programming, and a degree or certification from a technical school can provide an advantage. Although currently at a point of high popularity, video games tend to go through phases of increased and decreased popularity, cautions Yergen.

Video game designer: $62,300/ $30 per hour

10. MRI technologist
MRI technologists train in programs available through hospitals, colleges and universities to earn a certificate or associate’s degree. With more doctors’ offices and clinics providing diagnostic services, demand is higher than ever, says Yergen. According to the Bureau of Labor Statistics (BLS), “Health care will generate 3 million new wage and salary jobs between 2006 and 2016, more than any other industry.”

MRI technologist: $61,000/ $29 per hour

Source: All salary data is from PayScale.com. The salaries listed are median, annual salaries for full-time workers with 5-9 years of experience and include any bonuses, commissions or profit sharing. Hourly rates are calculated by dividing the yearly salary by $2080.

Want to stop   getting sick?

My modus operandi when it comes to avoiding illness? I wash my hands whenever I get to my destination (the office, restaurant or home) and eat plenty of citrus and antioxidants in berries, oranges, salads and more. I also like to tell coworkers, “If you’re sick, stay home!” and I’m not above rescheduling a meeting with an especially sneezy editor.

So far, my methods are working—I caught a cold earlier this season, but it was the first time in years. If you hate getting sick as much as I do, try these strategies for a healthier winter.

Be a frequent hand washer
Your mitts transmit infections, particularly cold and flu, more effectively than any other part of your body, according to doctors. That’s reason to hit the sink soon after you arrive at work and home, as well as after any event that involves a lot of handshaking (meetings) or high-fives (the soccer game). Keep your hands away from your face until you’ve gotten to a faucet—and even then, refrain from touching your mouth, eyes and nose. Learn when you do—and don’t—need to worry about germs.

Don’t forget your hat!
Mom was right when she urged you to bundle up. While you can’t catch a cold purely from being outside in cold weather, feeling chilly may lower your immunity, says Ronald Eccles, Ph.D., director of the Common Cold Centre at Cardiff University in Wales. Volunteers who submerged their feet in icy water were 20 percent likelier to come down with a sore throat and runny nose than those who kept their dogs warm. If you live in a cold part of the country, buy the warmest winter coat you can find (I just got a purple puffy I’m wild about) and keep your gloves in your pocket, and hat and scarf in your sleeve, so you’re ready to go on morning dog walks no matter how low the temps dip. Get tips for staying warm in style.

Carry your own pen
Signing that dinner bill or store receipt could come at a high cost if you use the provided pen—it’s loaded with germs and bacteria, says Neil Schachter, M.D., professor of pulmonary medicine at Mount Sinai School of Medicine in New York City. Keep a ballpoint in your bag. Do the write thing in between signing bills, too—expressive writing may encourage the growth of white blood cells, which fight off infection, research shows.

Get moving!
Exercise helps your body look terrific, of course, but it can also help it work better, improving your immunity as well as your bone strength and circulation. Aim to work out for 30 minutes five times a week to feel as fantastic as you’ll look. Want to shore up your immunity even further? Spring for a massage post–sweat session (as if you needed an excuse!). People who follow intense gym sessions with a rubdown restore levels of molecules in saliva that stave off germs, a study from the University of Granada in Spain finds. Find a toning routine you can do anywhere.

Countdown to fun
Whether it’s a tapas dinner with pals or some well-deserved couch time with your pal Tina Fey, anticipating an enjoyable event lowers stress hormones and enhances your immunity, according to Lee Berk, Ph.D., a professor of pathology and human anatomy at Loma Linda University in California. Put fun first on your calendar—you might see fewer colds and more smiles!

Fill your cart smart
Your prescription for health is right in the produce aisle! Blueberries, green bell peppers, kiwifruit, strawberries and tomatoes all contain vitamin C, to help bolster your immunity. And avocado and spinach are major health improvers, especially when eaten together. Turns out that the monounsaturated fats in avocado release spinach’s nutrients: You’ll absorb up to 15 times more beta-carotene, which can strengthen the immune system and ward off infection, by pairing the two. A spinach quesadilla with guacamole might be just what the doctor ordered!

Source: Yahoo.com

Green jobs for $30/Hour

Below is a list of well-paid, green gigs with their median annual salary:

1. Regional sales manager.
When companies create new, more energy-efficient products, it’s critical that these products are accepted by customers, says Jim Cassio, career consultant and co-author of “Green Careers: Choosing Work for a Sustainable Future, and the Green Careers Resource Guide.” Sales managers for environmentally conscious companies make sure better products reach their target audience. With stimulus funds going to research and development of more energy-efficient goods, particularly in batteries, growth is expected in green sales-manager jobs, says Cassio.

Regional sales managers oversee sales within an entire territory, often supervising a sales team, providing training and guidance. Many are experienced sales reps who’ve worked their way up to this supervisory post.

Regional sales manager: $87,200 per year / $42 per hour

2. Environmental engineer.
This engineering specialty focuses on developing solutions for better water and air quality, says Laurence Shatkin, author of “200 Best Jobs for Renewing America.” Other fields for environmental engineers include recycling, waste disposal and environmental cleanup. With stimulus funding for many of these areas, demand for environmental engineers is expected to rise, Shatkin predicts.

Most engineers have a bachelor’s degree in engineering from a four-year institution, and participate in continuing education or graduate school to deepen their knowledge or a specialty or learn about emerging best practices in the field. Much of the work ahead, Shatkin notes, will involve devising solutions to clean up nuclear sites left over from World War II.

Environmental engineer: $68,600 per year / $33 per hour

3. Computer systems analyst.
Without systems analysts, Shatkin says, “We’ll never have a smart [electric] grid.” Technological savvy will be needed to design systems that will allow electric transmission systems and broadband networks to operate with greater energy efficiency.

Demand is so great for this IT expertise that the Bureau of Labor Statistics forecasts nearly 50 percent growth in the field from 2006-2016, despite the fact that the existing labor force for this job is unusually young, with few analysts nearing retirement age. Most analysts have a four-year degree in computer science, information science, or management information systems.

Operating systems analyst: $63,000 per year / $30 per hour

4. Urban/regional planner.
Urban and regional planners have a chance to dramatically impact the landscapes under their jurisdictions, says Shatkin. They aid governments in designing and locating schools, roads, and other infrastructure in a city or rural area, with an eye to minimizing environmental impact. They can also design zoning codes to help support environmental goals.

Schooling is rigorous — even entry-level jobs with state, federal or municipal agencies require a master’s degree in urban or regional planning or a similar field. As regulations grow more complex for meeting environmental requirements, more urban planners will be needed, he adds.

Urban/regional planner: $60,600 per year / $29 per hour

5. Hydrologist.
This scientific specialty centers on using your knowledge of geology to locate and study bodies of water and suggests methods for keeping it pure, says Shatkin. Hydrologists use advanced techniques and instruments to assess water quality.

Many work for consulting firms and are often hired to solve water pollution, flooding or other water problems. Entry-level positions may be filled with candidates with a bachelor’s degree in hydrologic science.

Hydrologist: $68,100 per year / $33 per hour

6. Construction project manager.
A great move-up job for workers with construction experience, project managers coordinate and oversee large construction projects. The field of construction management is becoming one where environmental concerns play an increasing role, says Shatkin.

“They’re using recycled materials in building new buildings,” he says, “and then recycling the old building.”

Construction project manager: $68,000 per year / $33 per hour

7. Nonprofit executive director.
This job recently topped a list of the Top 25 Green Dream Jobs compiled by Cassio and Rona Fried, CEO of SustainableBusiness.com. Chief executives at an environmental charity or advocacy group have the opportunity to shape their groups’ agenda, organizing their constituencies to improve the environment, preserve land or ocean habitat, or change environmental laws. It’s a chance to use managerial, marketing, and media skills for green ends, notes Cassio.

At smaller organizations, volunteers may move up into this paying position, while larger nonprofits expect professionally trained executive directors who often have a graduate degree in either business administration, public administration, or nonprofit management.

Nonprofit executive director: $60,000 per year / $29 per hour

Source: Yahoo.com

Top 2 Stocks For Cashing In On Obama’s Stimulus Plan

While the politics behind President Obama’s stimulus plan are debatable…

The potential for making money from this rare $787 billion investment in America is undeniable.

Because unlike the nebulous “bailout plans” that are propping up the U.S. automakers and floundering financial institutions like Citigroup and Bank of America, this stimulus plan isn’t a bailout.

It’s a massive investment that will hand billions of dollars’ worth of projects to healthy, competitive businesses. (Like the companies you’ll discover just ahead…)

And this may be your one-time chance to invest in the companies that could see their revenues soar once the stimulus money rolls in…

But a quick word of warning — not all stocks will go up in the months and years ahead. There will be some big names that never recover from this downturn…

Just as the brutal bear market of 1973-74 sounded the death knell for many darling stocks of the day, like Bethlehem Steel and Johns-Mansville…

At the same time that it set the stage for historic run-ups by a handful of companies like Radio Shack (a gain of 1,557% between 1978 and 1983!) and Wal-Mart (a 1,900% surge from 1973 to 1983!).

The bottom line in all this: You can make a very profitable decision right now. By striking at this rare historical moment, you could build for yourself and your family a comfortable lining of wealth.

Of course, you need an edge. A trusted, independent resource. And that’s where The Motley Fool comes in!

Because while a lot of so-called experts are picking “Obama stocks” that might jump up a little bit in the months ahead…

The Motley Fool’s Inside Value investment advisory service team of researchers dug deeper…

They scoured the world of undervalued stocks… looking for those rare investments that change lives. The stocks that will be talked about decades from now…

And the only stocks that can deliver that kind of long-term performance are the ones with pristine balance sheets and high intrinsic values that sit smack-dab in the slipstream created by a monster trend — the multibillion-dollar trend of Obama’s epic investment in America!

So let’s dive right in… and take a look at the one company that’s in a prime position to cash in on the coming Internet expansion boom…

And take a look at our next investment… it’s a rock-solid company that’s in the sector the U.S. Department of Labor estimates will generate 3 million new jobs by 2016.

And by 2010, Americans will be faithfully handing over $2.6 trillion each year to companies in this industry. Discover how you can profit from this phenomenon…

Overhauling The U.S. Healthcare System

How about a quick quiz to test your healthcare know-how? Pencils, everyone:

1. Approximately what percentage of the U.S. population is uninsured?
1. 1%
2. 5%
3. 15%

Answer: C. The Census Bureau estimates that some 46 million Americans were uninsured in 2007.

2. In 2004 (the year for which the most recent data are available), which location had the lowest infant mortality rate?
1. Cuba
2. Detroit, Mich.
3. Russia

Answer: A. Cuba’s infant mortality rate was 5.8 per 1,000 births, compared with Russia’s 11.5 and Detroit’s 15.5.

3. Which product does Starbucks [Nasdaq: SBUX] spend more money on?
1. Coffee beans
2. Health insurance for employees

Answer: B.

You don’t have to be a neurosurgeon to realize that something seems awry here. When a nation spends more than $2 trillion a year (roughly 16% of the gross domestic product) on health expenditures yet has a healthcare system ranked 37th in performance in the world, according to the World Health Organization, or when “a doctor… can get more data on the starting third baseman on his fantasy baseball team than on the effectiveness of life-and-death medical procedures” — as stated in a New York Times op-ed — something certainly needs revamping.

To bring America’s health care up to speed, the government is investing more than $140 billion into the sector. Some of the money will update the industry’s technological capabilities, some will fund research, and the remainder will increase Medicare and Medicaid budgets. One company clearly stands to benefit: UnitedHealth Group [NYSE: UNH], the country’s largest provider of health care services.

UnitedHealth operates with four divisions, but the bulk of its business ($75.9 billion, out of $81.2 billion in revenue during 2008) comes from its health care services segment. It provides both fee-based and traditional risk-based coverage to small and midsize companies as well as to families and individuals. Under the fee-based plans, UnitedHealth simply acts as an intermediary, collecting fees for administering the plan and leaving insurers with the potential risks of higher costs. With risk-based coverage, UnitedHealth collects monthly premiums that are ideally 15% to 20% higher than the costs it will pay out in claims.

Government-sponsored health plans like Medicare and Medicaid also fall into this division. For these, UnitedHealth bids on contracts from the government and manages the program with the government’s funds. The size of UnitedHealth’s network gives it a competitive edge when bidding for these plans, meaning it’s likely to receive the bulk of the money coming from the stimulus plan.

And then there’s Obama’s campaign promise of universal health care. Bruce Berkowitz, founder of Fairholme Capital Management and manager of the Fairholme Fund [FAIRX], which owns nearly 1.5% of UnitedHealth’s outstanding shares, believes that if this promise comes to fruition, the government could only accomplish it in one way: by using the managed health care companies, of which UnitedHealth is the largest.

Its current share price more than accounts for the possible risks, meaning we believe there is significant value to be found, with high potential reward. This investment is exactly what the doctor ordered.

Our next company is smack-dab in the momentous effort to rebuild America’s transportation infrastructure. Find out the name of the company that’s in the perfect position to cash in…

Rebuilding America’s Highways

Any driver knows that our roads could use some TLC. But just how bad are they?

According to the American Society of Civil Engineers, more than a quarter of our nation’s bridges “are either structurally deficient or functionally obsolete.” As for our roads, we “spend 4.2 billion hours a year stuck in traffic,” sucking some $78 billion out of our economy. Not only does this cause unnecessary damage to our cars, but these road conditions lead to 14,000 deaths a year.

Over the past two decades, as government spending skyrocketed to historic highs, infrastructure spending has plummeted to record lows.

So to bring our roads up to speed, the stimulus plan is slated to invest nearly $30 billion in our highways and bridges, which alone should help create more than 500,000 new jobs. It should also fuel economic growth because, as Gov. Arnold Schwarzenegger of California recently put it, “The faster we can move people and goods, the stronger our economy is.” Some have estimated that every $1 invested into highways generates $5.40 in economic benefits.

Vulcan Materials [NYSE: VMC] is one company whose products will see a significant spike in demand as our roads are revamped. According to company data, Vulcan is the nation’s largest producer of aggregates (think crushed stone, sand, and gravel), a top-five asphalt producer, and a top-10 concrete producer, operating with a strategically significant coast-to-coast distribution network.

About 20% of the company’s revenue comes from the residential market. Growth here will likely stay slow until the housing market recovers — but the overwhelming majority of Vulcan’s revenue comes from public projects such as highways, so the increased demand in this area should more than compensate for the residential slowdown.

This company has an enormously wide moat, with assets that are not easy to come by, making Vulcan a dominant player in a high-demand industry today. It’s trading more than 40% below our estimated intrinsic value, with a 3.8% dividend — now is as good a time as any to buy stock.

Next up is the smartest way to cash in on the coming “Green Energy” boom. Find out its name and ticker symbol…

The Smart Way to Invest in Green Energy

We’re willing to bet the phrase “energy-independent America” was one of the most-used taglines of both Senator McCain’s and President Obama’s campaigns. But it hasn’t disappeared — it just made an appearance in the economic stimulus plan, with nearly $79 billion allocated to this initiative in the form of tax credits, grants, and dedicated research.

Despite many experts claiming to know whether it will be specifically wind power or biofuels that ignite a green revolution, there is simply too much uncertainty and too many unknown variables to discern which technology will emerge as the most profitable. Not to mention that no green energy company has yet to dig a wide moat — heck, many aren’t even profitable at all.

But that’s not to say you should avoid this emerging sector in its entirety.

Rather, we think that if you want exposure, it makes the most sense to not put all your green eggs in one basket. That’s why we think an inexpensive ETF like PowerShares WilderHill Clean Energy [NYSE: PBW] is the smartest way to go if you want to profit from green technology.

This ETF has positions in roughly 50 clean-energy names with business models ranging from manufacturing green-friendly auto parts to manufacturing solar energy equipment. Most of its positions are in small caps, with the weighted average market capitalization clocking in at just $2.3 billion. Even though the portfolio is relatively diverse, an investment in this ETF will likely be volatile. We certainly wouldn’t recommend overweighting your allocation here, but long term it’s sure to be a winner.

But if all this government spending has you worried about inflation, discover an investment that will help you protect your nest egg…

Inflation-Proof Your Portfolio

The stimulus plan’s passage brings the total price tag of the government’s intervention to an astonishing $9.7 trillion. Two Bloomberg columnists calculated that that’s would be enough to pay off more than 90% of America’s mortgages.

That many dollars added into the economic system, coupled with rock-bottom interest rates, means one thing is certain: Inflation is a-comin’.

Knowing that it’s inevitable, we have one final investment recommendation that will counteract the effect inflation could have on your portfolio over the long term: Vanguard Inflation-Protected Securities [VIPSX].

This mutual fund is a cheap and easy way to get access to Treasury Inflation-Protected Securities, or TIPS as they’re known in the bond world. The principal on TIPS is adjusted upward as inflation rises (likewise, it falls during deflationary periods), so your interest payments similarly rise with inflation (or fall with deflation). With inflation on the horizon, this is a smart way to ensure that a portion of your portfolio will keep up with it. It makes sense to have a significant portion of your bond allocation in TIPS, especially if you’re in or nearing retirement, and this Vanguard fund is the cheapest one out there to help you do so.
What to Do Now

There you have it — our five best ideas for how to profit from this momentous economic stimulus package, all arising from our in-depth analysis and independent research.

Truth be told, the same holds true for all the stocks recommended in Motley Fool Inside Value, the investment advisory service behind our top picks: Sprint Nextel, UnitedHealth Group, and Vulcan Materials.

But it doesn’t have to stop there. The Motley Fool just put the finishing touches on its brand new premium report highlighting the very best small-cap stocks, selected for you by some of the nation’s top independent equity analysts.

Source: fool.com

Prospecting can be done in a number of ways, including cold calling, canvassing, bulk mailing, using a sphere of influence contact system, working a farm, sitting open houses, taking floor time, handing out lots of business cards, working the internet, and more. The important thing to realize, up front, is that it’s not easy and yet it must be done if you’re going to get your real estate license and succeed in this business.
Below is just an idea of some of the activities do, more or less, on a daily basis:

* Touring new listings, previewing homes, generally learning and keeping informed on what’s happening in your market area.
* Learning new techniques and skills, or staying abreast of real estate related laws and issues, through real estate training courses and formal course work. Most states also have continuing education requirements.
* You might be taking floor time or sitting open houses.
* Doing market evaluations on homes and listing presentations to prospective home sellers.
* Showing homes to prospective home buyers.
* Preparing contracts for purchase and presenting offers for buyers, or offers from others to your sellers.
* Doing follow up work on contracts, working with mortgage brokers and lenders, appraisers, home inspectors, home warranty companies, and attorneys.
* Attending closings with your clients and hopefully lots of them.

- The Good -

* High Income Potential
* Work Close to Home
* Flexible Hours
* Opportunity for Growth
* Be Your Own Boss
* Investment Opportunities
* Each Day is Different
* It Can be a Lot of Fun

- the Bad -

* It Can Take a While to Begin Earning Money
* Income Can be Irregular
* It Can be an Emotional Roller Coaster
* It Is Hard Work
* You Have to Get Out and Find Business

When you pass your real estate exam and get your license, in the Real Estate Business you will control your own Destiny!

Source: www.restatecareer.com

Investing Lessons from the Poker Table

I hate to disappoint, but I’m not going to stick my neck in the middle of that debate.

But whether we agree that investing and gambling are similar, there are some general ideas from the game of poker that can be adapted quite well for investing. And, heck, if there’s the possibility that it’ll make you a better investor, is it worth fretting about the source?

Lesson 1: You don’t have to play every hand
One of the quickest ways to make your chip stack disappear in poker is to blindly play every hand dealt to you. In a 10-player Texas Hold ‘em game, you’re only forced to bet 20% of the time, and even then they’re only small bets. You can throw away every other hand that’s dealt to you if you want, and it won’t cost you a dime.

But why would you throw away any cards? Well, a two of diamonds and a six of clubs can theoretically become a full house, but you start out with the odds stacked heavily against you when you play a hand like that. Waiting for something like a pair of kings or a queen and jack of spades gives you a much better chance of seeing a return on the money that you’re wagering.

The same holds true for investing. There’s a possibility that CIT Group (NYSE: CIT) could magically avoid bankruptcy and return a bonanza for shareholders. Or Sirius XM Radio (Nasdaq: SIRI) could finally prove the critics wrong, start posting huge profits, and watch its stock fly. But let’s face it, both are long shots, and if you’re looking for solid, predictable returns to build a retirement nest egg, throwing piles of money at either stock is probably not the best idea.

On the flip side, companies like Pfizer (NYSE: PFE) and Honeywell (NYSE: HON) positively ooze predictability and solid returns over the long run. Investing in companies like these — assuming you’re paying a fair price — simply gives shareholders a much higher probability of seeing returns from their investment. And, heck, investors don’t even have to wait for rewards since both currently pay dividends that exceed the yield on 10-year U.S. Treasuries.

Lesson 2: Play your cards right
Kenny Rogers immortalized yet another lesson that we can take from poker when he sang: “You got to know when to hold ‘em / know when to fold ‘em / know when to walk away / and know when to run.”

In both poker and investing, you’re faced with continually changing information. The best poker players and investors are those who not only make the most accurate analysis of the available information, but use that analysis to drive good decision making, whether that’s — in investing — buying, selling, or just sitting tight.

IBM (NYSE: IBM) is a great example of the constantly changing tides that investors can take advantage of. The company had one of the truly great growth stocks in its early years and delivered impressive gains. But not all that long ago it faced some major challenges as the PC market commoditized and its bread-and-butter mainframe market turned into a sleepy niche.

More recently, IBM has found a new life in transitioning to offering higher-margin software and services. Just like recognizing when you have a possible straight flush developing and betting accordingly, investors who figured out what was going on at IBM and invested accordingly have been handsomely rewarded. Over the past five years, its stock has substantially outperformed the S&P index.

Lesson 3: Be choosy with your “all-in” moments
It’s certainly exciting to watch a poker pro push all of his chips into the middle of the table and call “all in.” But it’s important to remember that top-notch players have run through a bunch of mental math to determine that the odds are heavily in their favor when they make a call like that.

Having all of your money invested at all times can be one of the easiest ways to go about investing, but it can also put you at a disadvantage. Not only will you absorb the full brunt of declines such as the one we’ve been living through, but it also leaves you with very little dry powder to invest when stocks do fall. However, with just a little more activity and attention, investors can keep an eye on stock valuations and adjust how much they have invested based on how pricey the market is.

If your all-in moments are restricted to times when the market is trading near or below its long-term average valuation, then you can shift the odds of market-beating returns further in your favor. Fortunately, there are many great tools available for tracking the overall market’s valuation, including my favorite, professor Robert Shiller’s 10-year average P/E spreadsheet.

When it comes to individual stocks, though, the picture is a little bit different. Although elite investors like Berkshire Hathaway’s (NYSE: BRK-A) Warren Buffett can make comments about being willing to go all in on Wells Fargo (NYSE: WFC), most mere mortals are best served by avoiding an all-in call — having their entire portfolio — on a single stock.

Putting away the cards
While having a working knowledge of poker might help bring some of the lessons above to life, you don’t have to ever play a single hand to put them to work. To review, here are three of the investing lessons that we can take from the poker table:

1. Wait for the best investment opportunities — there’s no harm in passing on a stock if you aren’t convinced that it’s a worthwhile investment.
2. Always be on top of new information and be willing to take action when necessary.
3. Going “all in” in your portfolio should be reserved for when market factors are highly attractive.

You can take these three lessons and start putting them to use right now.

Source: Fool.com

We feel your pain. So let us reassure you. Despite what you may think, there is a lot of good news about retirement. We’ve talked to a wide-ranging selection of financial experts and we’ve come away with one conclusion — you’re doing far better than you think you are. Join us as we reveal 10 things that most people don’t know about retirement, but should.

1. You’re not behind at all
The ads make it sound as if 55 is a reasonable retirement age. In fact, for most of us it’s not. The median retirement age in Canada is 62 for men and 61 for women, according to Statistics Canada. Who does retire early? By and large, federal government employees, who ditch work at a median age of 58. You can credit their early departures to generous pensions that are indexed for inflation. But even public-sector employees aren’t hanging up their work clothes at 55.

If you look at the math behind retirement, you can see why most of us stick around the office a bit longer than we might like. For every year early that you retire, you pay three penalties: you lose a year of potential savings, you lose a year of growth for your retirement savings, and you gain one more year of retirement expenses.

Consider a woman who hits 55 in good financial shape, with a paid-off condo and $100,000 in savings. She can count on her savings to produce $4,000 or $5,000 a year in returns, but she’s too young to start collecting Old Age Security or Canada Pension Plan. Unless she resorts to desperate measures, such as selling her condo or burning through her savings, retirement is impractical.

But look at what a difference five years can make. If she buckles down and contributes $10,000 a year to her retirement fund during that period, and achieves a 7% annual average return, her savings double to $200,000. That bankroll can generate $8,000 to $10,000 a year in income as long as she lives. At 60, she can also start collecting Canada Pension Plan. If she combines those sources of income with part-time work, a phased-in retirement becomes quite practical.

2. You’ll live longer than you expect
When we’re doing our retirement planning, many of us figure that we’ll live to 80, the average lifespan in Canada. But that average is misleading. It reflects what a newborn baby can expect in the way of lifespan and is dragged down by all the unfortunate people who die relatively young.

If you’ve managed to reach 65 without suffering a terminal illness, you’ll probably live considerably beyond 80. According to StatsCan, a 65-year-old man can expect to live to 83; a 65-year-old woman can look forward to blowing out the candles on her 86th birthday.

And remember — those are averages. Half of retirees live longer, some much longer. Moshe Milevsky, an associate professor of finance at Toronto’s Schulich School of Business at York University, says there is a 41% chance that at least one member of a 65-year-old couple will live to 90. So even if you don’t quit work until 65, there’s a good chance that your retirement could still wind up spanning a quarter or more of your life.

3. You’ll see more of your partner — a lot more
Sure, you love your spouse, but let’s do a little math here. Chances are, for most of your married life at least one of you has worked outside the home. Subtract sleep, travel time and other away time and you’ve seen your beloved for — at most — six hours a day.

In retirement, that figure can easily double. And continued exposure can cause even happy couples to bicker. Fred and Janet Barnes (not their real names) retired to Dickey Lake, Ont., to renovate a cottage after living in and around Toronto for most of their lives. “His perfectionism drove me a little crazy,” says Janet. “My slapdash methods were hard for Fred to take.” The Barneses eventually figured out ways to divide the work so they wouldn’t get on each other’s nerves.

Other retired couples strike different bargains — maybe the kitchen becomes her territory, while the garage becomes his — but whatever the specifics of the deal may be, the important point is to realize that retirement is not just a financial journey. It’s also an emotional odyssey and you should plan ahead to make the most of it.

Beginning in your 50s, you should start thinking about the activities that will fill your day in retirement. “You’re going to need to stay connected,” says Dr. Randy Swedburg, chair of the applied human sciences department at Concordia University in Montreal. Your many options include going back to school, giving your time to charity, or starting your own business.

4. A part-time job is worth $400,000 in the bank
If your retirement savings are a bit smaller than you had hoped, take heart — a part-time job in retirement can go a long way toward making up for an undersized portfolio.

Let’s say that you can make $20,000 a year from your part-time job. That is about what you could reasonably expect a $400,000 investment portfolio to generate in retirement, says Terry Greene, a fee-only planner with MSC Financial Services Ltd. in North Vancouver. So your part-time job is the financial equal of a $400,000 portfolio. Especially if your part-time job consists of doing work you enjoy, you may find that you never want to fully retire.

5. Your employer really does love you
The first wave of baby boomers has already hit 60. Millions more will soon hit retirement age. And there are not that many people coming up behind them. “The demographic trends are suggesting that over the next 10 to 15 years, we’re not going to replace the workforce that currently exists,” says Ted Emond, a senior consultant with Hewitt Associates, a human resources consulting firm in Toronto.

The likely result of Canada’s aging society is a potential labor shortage that will make skilled help more and more valuable with each passing year. HSBC Bank Canada, is already attempting to keep older employees in the workforce by letting them work part-time while collecting pensions. Wal-Mart Canada allows its retirees to come back as consultants or to mentor current employees. Count on more employers to do the same as demographics makes skilled employees tougher to find.

6. Government is more generous than you think
The financial planning industry likes to cast doubt on the future of Canada Pension Plan. In fact, CPP is on solid financial ground after the reforms of a decade ago, according to the federal government’s chief actuary. CPP (or Quebec Pension Plan in the case of Quebecers), combined with Old Age Security, will provide you with an average of $11,500 a year if you’ve worked in Canada your entire life and retire at 65. The maximum you could qualify for is about $16,600 a year.

Don’t forget, too, that you’re eligible for a Guaranteed Income Supplement if you’re a low-income retiree. “For low-income [earners], government programs are going to provide you withthe standard of living you’ve always been used to,” says Malcolm Hamilton, a consulting actuary with Mercer, a benefits consulting firm in Toronto.

7. You may be missing free money
A Sun Life Financial survey found nearly 40% of us have access to savings programs in which our employer kicks in money to supplement what we contribute. But one in five of us who are eligible for such plans doesn’t participate. As a result, we lose guaranteed returns of 25% or more.

You should inquire with your human resources department to make sure you’re not missing out. Many publicly traded companies offer employee stock ownership plans with an employer match. If you buy $80 of your company’s stock each month through such a plan, your employer kicks in an additional $20 a month — an instant investment return of 25%. Other companies offer retirement plans in which the company matches your contribution dollar for dollar — a guaranteed return of 100%. In either case, the money is free and you should grab it.

8. You don’t need a million bucks
Financial planners like to say you’ll need 70% of your current income in retirement. To hit that goal, a middle-class couple will need to amass a million dollars or more in savings. But is the 70% figure truly a good estimate of what you need in retirement?

Probably not. Brian FitzGerald, co-author of The Pension Puzzle and chief executive officer of Capital G Consulting in Toronto, says you have many more costs while you’re working than while you’re retired, so your need for cash in retirement is considerably less than the 70% figure suggests. “There’s a bunch of expenses you don’t have to incur in retirement,” he says. For instance, most retirees no longer have to worry about paying off a house, funding their kids’ education, making RRSP contributions or commuting to work. And they pay substantially less in income tax because they’re earning less.

So how much of your current income do you really need to maintain your standard of living in retirement? “I’m pretty confident that 50% will do the job for most people,” says Hamilton, the actuary. Of course, if you want to live lavishly and travel constantly, you will need more, but if you’re happy to go on living much as you always have, replacing half of your working income should do the job.

9. RRSPs aren’t always the answer
Canada has five seasons: winter, spring, summer, fall, and RRSP time. But while we’re annually bombarded with ads telling us to stuff money into our RRSPs, don’t think of those four-letter contraptions as your only option in retirement planning.

RRSPs are not your best strategy if you have high-interest debt, such as a credit card balance. Given the 18% or more you’re probably paying on your credit card debt, you should first devote every available dollar to paying down that costly debt. RRSPs may also not be your best option if you’re a low-income earner, since the tax savings that result from making an RRSP contribution aren’t worth much if you don’t pay much tax to start with.

If the federal government goes ahead with its proposal to introduce tax-free savings accounts next year, RRSPs will have an additional competitor for your attention. Ottawa’s proposal, as it now stands, would allow each of us to put up to $5,000 a year into a tax-free savings account, or TFSA. You won’t get any tax deduction for doing so, but your money will grow tax-free. And you will be able to withdraw the TFSA money without paying any taxes. While the math gets complicated, “I would think people with below-average incomes are better with TFSAs,” says Hamilton, the actuary.

10. There’s a world of possibilities
One option that can instantly multiply your retirement spending power is to leave Canada behind. Mexico, Costa Rica, Malaysia and Panama all enjoy far better weather than we do, and much lower costs of living. “Overall, there is no question you can live here on one-half to one-third what you could in any Canadian city and have a good lifestyle,” says Tom Dawson, 54, who with his wife, Donna, moved to Panama City nearly two years ago from St. Albert, Alta. The 1,800-sq.-ft. condominium they bought overlooks the Pacific Ocean and the Panama Canal, and cost them less than $200,000. Medical care is excellent, locally grown produce is cheap and foreigners who retire to Panama with a pension can qualify for several tempting tax breaks, including an exemption from property taxes.

The federal government offers primers on retiring abroad (click on www.voyage.gc.ca and search “Retirement Abroad”). Another useful source of information is The Canadian Snowbird Guide by Douglas Gray. But no book or website can fully convey the day-to-day reality of a foreign country. Try out a destination before making any permanent decisions. Rent a home for a year and see what daily life is like. If it matches or exceeds your expectations, you may be able to afford the retirement of your dreams on far less money than you expected.

Source: CanadianBusiness.com

I kicked myself for two years while the stock quadrupled. In the spring of ’94, I followed my instincts and became an AOL shareholder — in spite of an article in a major financial publication that declared AOL grossly overvalued and predicted that the stock would decline by 35%.

The following year, the stock dropped 25% or more three times. And then in 1996, shares absorbed a drop of 65%! Despite these setbacks, the company went on to wreak havoc on both the business and journalistic establishments en route to putting up some of the best returns available during a decade of great investment returns.

Even with all the temporary downturns, and even though the stock is today down from its all-time high, my initial investment has still increased about 19 times overall — $10,000 in stock at that time would now be worth $190,658, which amounts to an annualized return of more than 23%.

We’d all love to find the next AOL or Amazon.com (NYSE: AMZN) or whatever. That goes without saying.

But how can ordinary investors like you and me — a couple of regular Fools — find the next great company? It’s not impossible. If you can train your eyes to spot innovative companies breaking the rules in their industries, you increase your odds dramatically.

You can’t score if you don’t shoot
The Wise of Wall Street would chalk up AOL’s 23% annualized gains to luck. “No one can really identify the great companies of the next generation,” they’d say. Growth stocks are too risky; it’s best to avoid that style of investing altogether and let a Street “expert” manage your investments.

I disagree. Investing in great companies early in their high-growth stages and then holding them for the long term will provide the highest possible returns. Period.

We call those companies Rule Breakers. Our investment service of the same name seeks out the great growth stocks of tomorrow — the potential AOLs — before the Street catches on.

Think big, but keep an eye on the basics
Boiled down, I look for six signs of a potential Rule Breaker:

* Sign No. 1: Top dog and first mover in an important, emerging industry.

Top dogs are active, fast-moving market leaders. In 1994, AOL was a top dog. Some years earlier, Microsoft was a top dog before making its impressive run. First movers seize a temporary edge over the competition and then exploit that advantage. These companies come from emerging industries — for example, from biotechnology today or e-commerce a few years back — because it’s unlikely that the railroad or meat-packing industries have much room left to run.

Rule Breakers are not hidden; they are right before our eyes, and they bring a disruptive technology, clever and effective marketing, or a brand-new business model to this little backwater planet of ours. They rattle our capitalistic foundations.

* Sign No. 2: Sustainable advantage gained through business momentum, patent protection, visionary leadership, or inept competitors.

Can the company protect the advantage it obtained from its first-mover status? Apple, for example, absolutely dominated Microsoft and Sony (NYSE: SNE) in portable music players and now is trying to do the same thing with smartphones to Nokia (NYSE: NOK), Motorola (NYSE: MOT), Palm (Nasdaq: PALM), and Research In Motion.

* Sign No. 3: Strong past price appreciation.

Sometimes, the best investments appear overvalued. I bought AOL after it quadrupled. Was Tiger Woods unknown before he joined the professional tour and started winning majors? Was No. 23 unheralded when he joined the Chicago Bulls after his junior year at North Carolina?

* Sign No. 4: Good management and smart backing.

This is the most important attribute of all — and it might be the most difficult to get right. Few would disagree that visionary leaders are behind the greatest companies of our generation: Nike has Phil Knight, Microsoft had Bill Gates, and Google has Eric Schmidt, Sergey Brin, and Larry Page. Investors should also be prepared to learn about the venture-backers of a young company. If the very best venture capital firms are behind a company, maybe you should be, too.

* Sign No. 5: Strong consumer appeal.

Rule Breaking companies provide products or services that improve the quality of people’s lives. Microsoft, for example, made home computer use a reality.

* Sign No. 6: You must find documented proof that it is overvalued according to the financial media.

This is the easiest one of all to identify. Every day, the Wall Street pooh-bahs declare that this or that stock is overvalued. Google shares begin trading publicly, and the naysayers predict another tech “meltdown.” Even today, with the vast majority of stocks having taken huge hits, there are some companies with improving fundamentals that Wall Street is afraid to touch because they appear more expensive than others.

If a company’s growing earnings lead to an increasing valuation, someone somewhere will surely argue that the company is overvalued. The reason this is valuable is that it keeps people out of a stock. Later on, as the company proves out its position as a profitable, even dominant, leader, then the skeptics finally buy — which is what can give you serious appreciation as an early investor in Rule Breaker stocks!

Before they were blue chips
So there you have it. Those are the characteristics I look for in tomorrow’s landscape-changing companies.

It’s essential to our strategy to identify great companies early in their growth cycles. Then we hold for the long term. Indeed, many of the best examples of Rule Breakers are today’s blue-chip companies. You may recognize a few:

* Two years after the company went public.
** All prices adjusted for splits and dividends.

Each of these companies had the six signs of a Rule Breaker at one point in its growth cycle — and each posted fantastic returns as a result. There are other not-as-famous companies out there — hundreds of them — that once were poised for the limelight but now are forgotten. In most cases, the flameouts and the fakers significantly lacked one or more of the signs we pointed to above.

There is no trade-off
With detailed information on more than 9,000 publicly traded companies, the stock market can’t help being fairly efficient. But the market doesn’t have all the information, does it? Many people insist on following the rules laid down by Wall Street or by the latest “this is the way to invest” fad investment book, regardless of how banal or unsuccessful these prescribed rules behave in practice.

Source: Fool.com

GM falls behind Toyota in annual global sales

GM said Wednesday it sold 8,355,947 cars and trucks around the world in 2008, falling about 616,000 vehicles short of the 8.972 million Toyota announced Tuesday. GM said the shortfall was mainly caused by the economic downturns in the U.S. and Europe that slashed vehicle demand in those major markets, where Toyota doesn’t have as large of a presence.

Mike DiGiovanni, GM’s executive director of global market and industry analysis, downplayed the significance of the drop to No. 2, saying that the automaker is focused on profitability rather than sales volume.

“I don’t think being No. 1 in vehicle sales means much at all to the American consumer,” DiGiovanni said in a conference call with reporters and analysts. “I think what matters most to the consumer is strong brands and strong products. And the key thing right now with what the industry is going through now is viability and profitability.”

Detroit-based GM, which has closed plants and laid off workers to cut production as it faces the worst U.S. auto market in more than 25 years, received a $13.4 billion lifeline from the federal government last month. But the bailout requires GM to submit a plan for long-term viability, and the loan may be called back if the government hasn’t determined by March 31 that the plan can succeed.

DiGiovanni said all automakers are currently facing risks and challenges not seen since the Great Depression, and he pointed out that even Toyota expects to post an operating loss for the current fiscal year — its first in 70 years.

Toyota’s overall global sales fell 4 percent for 2008, marking that automaker’s first decline in a decade. The Japanese automaker has cut production in both North America and Japan to align its product offerings with slowing consumer demand.

GM posted an 11 percent drop in global sales, including a 21 percent drop in North America. GM Europe sales fell 6.5 percent, including a 21 percent plunge in the fourth quarter as the global economy melted down.

Those declines were partially offset by a 3.2 percent increase in sales at GM’s Latin America, Africa and Middle East region, and 2.7 percent growth in Asia-Pacific sales. Sales outside of the U.S. accounted for 64 percent of GM’s global sales in 2008, up from 59 percent the year before.

Toyota’s move into the top sales spot wasn’t unexpected. The automaker nearly leapfrogged GM in 2007, selling only about 3,000 fewer vehicles than the U.S. company did that year.

DiGiovanni said Toyota’s move to the top of the sales rankings doesn’t necessarily signal a turning point in the industry. He said it’s entirely possible that GM could regain the No. 1 spot once U.S. and European markets recover and sales in key emerging markets pick up.

“That story has yet to be written,” DiGiovanni said. “Nobody knows what’s going to happen.”

GM shares rose 3 cents to end at $3.53, while Toyota’s U.S. shares rose $1.64, or 2.5 percent, to $67.52.

Source: yahoo.com