Stock Market Wealth Creation

Tips for creating wealth from the stock market:
1. Do not spread your money too thin.My friend has a little over Rs. 200,000 invested in the stock market through 27 different Mutual funds. In my opinion, 27 Mutual funds is 27 too many collecting load fees, management fees, commission fees, operating and advertising fees. Diversity is important, but just as important is over-diversification. Also, in my opinion, Rs 200,000 should not be put into more than 12 stocks, let alone 27 different Mutual funds.
2. Do not pay commission fees to purchase a stock.If you are going to invest your hard earned money into a company, the least the company could do is provide you a way to invest in their company commission free – and they do!
3.Only purchase those companies that pay a dividend.The same company that you invest in commission free should also offer you another incentive for you to invest – a dividend for the use of your money.
4. Only purchase those companies that have a history of raising their dividend every year.The same company should continue rewarding you for your faith in their company by increasing the amount of their dividend every year. Rising dividends are also the proof that the company is doing something right.
5. Rupee-cost average into each stock position. By rupee-cost averaging (buying the same stock at different prices through the years) you’ll never pay too much for the company’s stock, even if the initial purchase is at a 52 week high. Have all the dividends from each company rolled back into more shares of each company, until retirement. The companies you invest in should do this for you, automatically, commission free.
6. Forget making a profit; instead focus on the income provided from your stock portfolio.That’s right! Forget making a profit. The burden is now lifted - no more pressure on making a buck in the stock market (Instead of trying to bend the spoon, that is impossible, instead just think of the spoon as – omigosh! - I’m in the Matrix). When you focus on the amount of money your holdings are providing in dividends – and when those companies selected have a history of raising their dividends each year – a lower stock price allows the dividends that are being rolled back into the stock to accelerate your income. The total value of your portfolio may go lower, but your income from the lower priced portfolio would increase dramatically. Profit by income!
7. Make every stock purchase with the intent that the purchase will be a long-term
npcomments-->investment.Do not trade in and out of your holdings. There have been many up and downs in the stock market.
8. Understand that a lower stock price, after your initial purchase may be a blessing in disguise.The income from your stock holdings should grow every quarter, no matter what the total amount of your stock portfolio is worth. (If your Mutual fund declines in price from one year to the next and if your income is not increasing (accelerating) from that fund, why are you in that fund?) A company pays their dividend not on how much their stock is worth in the market place.
9. Develop a savings plan to add to your holdings each quarter to help your dividend reinvestments to accumulate more shares on a dollar-cost averaging basis.The savings could be as little as Rs 5.00 a week. Why put that savings in a savings account at 3 percent, when there are so many companies out there that are paying a 4 to 5% dividend yield and increasing their dividend every year? And since none of the companies you are investing in charge a commission fee, all of that Rs 60.00 a quarter you saved and invested would help your dividend reinvestments to rupee-cost average into your holdings. Every cent you save and invest would work toward your ROI (Return on Investment).
ALL THE BEST!

Top 10 Ways to Avoid Loan Fraud

Every year, misinformed homebuyers, often first-time purchasers or seniors, become victims of predatory lending or loan fraud. Below you'll find the top ten ways to avoid becoming a victim yourself.
1. Take your time and shop around. You should be able to compare prices and houses. If a lender or broker tells you they are your only chance to get a loan or owning a home, don't do business with them.
2. Do not sign a sales contract or loan documents that are blank or that contain information which is not true.
3. Be certain that the costs and loan terms at closing are what you originally agreed to.
4. Do not be talked into lying about lie about your income, expenses, or cash available for downpayments in order to get a loan.
5. Watch out for higher-risk loans such as balloon loans, interest only payments, and steep pre-payment penalties.
6. Be careful about disclosing things like your need of cash due to medical, unemployment or debt problems. You are very vulnerable in these cases.
7. Don't strip your home's equity by refinancing again and again when there is no benefit to you.
8. Beware of false appraisals.
9. Do not let anyone convince you to borrow more money than you know you can afford to repay. If you get behind on your payments, you risk losing your house and all of the money you put into your property.
10. Get several quotes from multiple brokers or lenders so you know you're being charged a fair interest rate based on your credit history, not your race or national origin.
About The Author
David Brumbaugh is the owner and operator of EZandFree.com, which provides consumers with online tools for easily obtaining free competitive Mortgage and Loan Quotes. It also serves as a mechanism by which Mortgage Brokers can obtain legitimate qualified leads from people who need their services.