Jason Hartman Foundation

FOR IMMEDIATE RELEASE–

June 27, 2010 — Jim Lowell, author of “Investing from Scratch,” joins the Young Wealth Show to speak on financial planning for young investors. The interview aims at the 20 to 30 year old beginning investor by suggesting actions to take to get on the right track.

Host of the Young Wealth Show, Jason Hartman, asks Lowell what basic actions young adults can take prior to investing. Lowell replies, “Time is on the young investor’s side to secure a bright financial future… make sure you are employed, have three to six months saved for a rainy day, then, with limited capital, invest in no-load indexed mutual funds to take advantage of compounding interest.”

Lowell spent most of his childhood and young adult life talking about stocks, bonds and cash around the dinner table, not sports, and suggests that investing clubs or groups can be beneficial for young adults to gain financial literacy. “But take a cautious approach to the existing investor clubs,” he says, “if you can, assemble an investing club with friends and share notes; often times, the long-standing clubs may require you to purchase the funds they are involved in.

Financial planning and goal setting can cast a young investor in the right direction; and increasing financial knowledge, and paying attention to economic activities, can help a young investor recognize opportunities or risks that exist. Lowell states, “With the government spending itself into oblivion, we need to secure our own financial future. Remember, it’s time in the market, not timing the market that creates long-term wealth.”

The Jason Hartman Foundation recognizes that life as a young adult can be very confusing and chaotic.  In the midst of completing formal education and beginning a career, there is a constant level of uncertainty concerning what will transpire in the future. The Jason Hartman Foundation is specifically concerned with helping young adults develop the necessary skills for financial success. The Young Wealth Show offers free educational information to help young adults develop the financial literacy needed to become financially independent. The show can be found on www.JasonHartmanFoundation.org/articles/young-wealth-show or the iTunes store.

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Contact Info:
Brittney Roberts
The Jason Hartman Foundation
Phone: 714-820-4267
Email: Media@JasonHartman.com
Web: http://www.JasonHartmanFoundation.org

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In episode 168 of The Creating Wealth Show, Jason Hartman discusses some of the disadvantages of investing in gold.

Despite the crowd of investors clamoring to join this gold rush redux, Jason is not a fan. In fact, he likens buying precious metals with investing in insurance since neither meets his standards of a true investment, although they are touted as such. If you want evidence, consider that insurance companies turn around and invest your premiums in real estate.

Few would argue that gold and silver are essentially money. Thus, precious metals are equivalent to savings or wealth stores, not investments, and they are vulnerable to the weaknesses inherent in currency. Paper money is also referred to as “fiat” currency, meaning its value is conferred by authority; that is, it is only secured by a pledge. Furthermore, Jason predicts that “Money is in for a long-term loss in value,” prone to inflation and subsequent devaluation – similar to what happens with your investment in insurance.

This discussion is prompted by an addition to Jason’s list of disqualifiers that make gold and precious metals a bad investment, bringing the total to 7 reasons:

1. In contrast to property investment, there is no financing, thus no leveraging to allow you to build wealth.

2. In contrast to tax deferment opportunities, there is no tax advantage.

3. In contrast to real estate rental, there is no income potential.

4. Your investment is subject to confiscation; arguments that collectible coins are immune from seizure are flawed since there is no guarantee this protection won’t ever change.

5. Precious metals are prone to manipulation by those motivated to suppress their value in order to boost paper money.

6. The myth of superior gold liquidity. This argument fails on a couple counts. Proponents tout the facility of buying and selling gold, but there are hidden costs in offers of guaranteed buy-back of gold purchases. When you are ready to liquidate your investment, you’ll be penalized with a 1.5% premium for melt-down value, on top of shipping & handling plus insurance expenses. Real estate actually benefits from its lack of liquidity because combined with higher transaction costs, this equates to lower volatility. In contrast, the low transaction costs and high liquidity claimed for precious metals are a perfect formula for greater volatility.

7. If gold does go up in value, the gain is nominal rather than an actual increase in buying power. This is because when gold appreciates it typically coincides with a devaluation for paper money. Moreover, those gold profits are taxable, in contrast with the “most tax-favored” status enjoyed by real estate investment. By exploiting the 1031 tax-deferred exchange it is possible to trade up tax-free with property for a lifetime. Even if the dollar depreciates, your asset appreciates with inflation and you will have locked in a long-term loan that you repay “for free”.

Subscribe to The Creating Wealth Show in iTunes or listen online at http://www.jasonhartman.com/radioshows/.

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There is no better time to take risks – especially when it comes to making career choices – than when you are young. Author and entrepreneur Roberts Tuchman knows what it takes to break free of a frustrating job and build a career on your own terms. In his recent authored work, Young Guns, he shows you how to start out on a business venture, how to gain a client base, how to keep those clients, and what you need to sacrifice along the way in order to succeed. For those young, aspiring entrepreneurs, listen in at: http://youngwealthshow.com/articles/young-wealth-show/

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Podcast: Download

FOR IMMEDIATE RELEASE –

June  20, 2010 – The Young Wealth Show, a free, educational podcast show, launched its first episode by discussing the 3 C’s of Financial Success – Credit, Capital and Competency.

Jason Hartman, founder of the Jason Hartman Foundation, begins the episode by introducing the Young Wealth Show and highlights the overarching objectives of the podcast show, while also speaking about specific topics coming up in future episodes.

During the 14 minute introductory episode, Jason Hartman spotlights a professionally read article on “the 3 C’s of Financial Success” contained in the first the Jason Hartman Foundation Newsletter.

The Jason Hartman Foundation stresses the importance of the 3 C’s its significant role in obtaining long-term success as a young adult. “Credit is necessary for obtaining long-term fixed-rate mortgage to purchase assets that produce income,” the article reads. “Capital is necessary for investing in future opportunities…this can be obtained from your own savings, friends and family, or private investors.” Competency, or financial literacy, “represents the most valuable capital…it will allow an investor to see opportunities easier and make intelligent decisions.”  The article also states that knowledge and action are the core competencies of an investor.

The Jason Hartman Foundation recognizes that life as a young adult can be very confusing and chaotic.  In the midst of completing formal education and beginning a career, there is a constant level of uncertainty concerning what will transpire in the future. The Jason Hartman Foundation is specifically concerned with helping young adults develop the necessary skills for financial success. The Young Wealth Show offers free educational information to help young adults develop the financial literacy needed to become financially independent. The show can be found on www.JasonHartmanFoundation.org/articles/young-wealth-show or the iTunes store.

###

Contact Info:

Brittney Roberts
The Jason Hartman Foundation
Phone: 714-820-4267
Email: Media@JasonHartman.com
Web: www.JasonHartmanFoundation.org

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If you want to build wealth and keep it, you’re going to have to get serious about financial management, and better sooner than later. What is financial management? It sounds like a fuddy duddy term that only old dudes in three-piece suits should be bothering with. Wrong! Unless you like the idea of working the drive-thru window at McDonalds the rest of your life and burning through every penny as soon as you make it – you need to learn about financial management.

Let’s define what we’re talking about. Financial management means taking the actions necessary to insure that your personal cash flow remains positive. That sounds like a good thing, right? Positive cash flow is an idea we all should be able to get behind. Most of us have experienced the opposite at some point in our lives. Maintaining positive cash flow is possible at any age but the sooner you learn it, the more likely you are to have extra cash to throw around as you get older.

Financial management is about managing risk. Risk is what can destroy your assets. Protecting them should be job number one. And wandering blithely through life waiting for the risks to wave a red flag normally doesn’t work. You’re going to need the knowledge to identify them, which comes only with education and experience. Experience – well that kind of unrolls at it’s own pace. Education is something you can accelerate on your own. When should you be in stocks? Bonds? Real estate? How can you protect assets from the tax man? These are all questions that you answer on a day-to-day basis as you go about the financial management of your growing portfolio.

We’re not big fans of turning all this over to a financial planner. That’s just adding another set of fingers to the mix and another chance for a screw-up. Manage your own finances and watch the wealth rise.

The Young Wealth Team

Flickr / Mitmensch0812

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