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It’s important to keep in mind that offshore financial centers were originally established by onshore banks and corporations. Why? Because felt hemmed-in by archaic laws, regulations and statutes. For example, Citicorp (the largest American-owned bank in the United States) was one of the first to set-up offshore operations. It wasn’t too long before 64 percent of its net income was being generated by offshore sources.

Some of the pioneering centers have evolved into world-class financial and economic headquarters. Since the early 1970s, these centers have initiated policies deliberately designed to attract international trade by minimizing tax obligations and reducing (or entirely eliminating) other restrictions on business operations. The result is that economic activity within these centers is specifically geared to the special global needs of outside businesses and investors.

Typically, these centers are small states with tiny populations. To date more than 75 of these tax havens exist throughout the world. Each one of them is a unique offshore haven of sorts deliberately intended to attract very particular investors with very specific needs.

For example, a center like Aruba was set up primarily for economic development. Formerly dependent on oil refineries for its revenue, it has now implemented an investment policy that gives it entree to the global economic system. Becoming an offshore money haven was the answer. By “renting” its laws regarding taxation, incorporation and other related legal matters, Aruba has begun a much needed process of economic development and diversification.

Singapore, on the other hand, was designed to serve the Asian dollar market. Today it’s one of the most prosperous money havens in the world on a per capita basis. And Bahrain was developed to process the Middle East’s offshore financial needs, especially Saudi Arabia’s.

All these offshore havens were made possible by the electronic revolution in fund transfer mechanisms which occurred early on in the 1970s. That single technological development made it suddenly possible and affordable to establish banks, corporations and holding companies in relatively remote locations. It also made inter and intra time-zone business a viable alternative to home-based operations. In turn, this gave rise to the creation of international wholesale banking ? where large deposits could be maintained in a variety of Read more…

According to Slate magazine, there are now 8.9 million American households with assets over $1 million, excluding their homes and retirement funds. Dr. Larry Samuel of the consulting group Culture Planning breaks them down into five basic groups:

? Thrillionaires. These millionaires live on the edge, consuming conspicuously. They?re more likely to be found rolling the dice in Las Vegas than taking a family vacation. While they?re not impulsive, they take calculated risks. Think: Donald Trump.

? Coolionaires. These millionaires live in the cultural centers and support fine art, architecture, and other expressions of creativity. They probably acquired their wealth through a combination of innate talent and an extraordinary amount of hard work. Think: Steve Jobs, founder of Apple Computer.

? Realionaires. These unassuming millionaires live ordinary lives. They do not like to spend money unnecessarily. However, they do spend money on their priorities, like education. These millionaires may be the ?Millionaire Next Door? as described in the book by Drs. Stanley and Danko a few years back. They are hard working and down to earth. Think: Warren Buffet.

? Wellionaires. They value their spiritual, mental, and physical health. They are open to new ideas and methods, which may be how they acquired their wealth. Think: Mark Hughes, founder of Herbal Life.

? Willionaires. Their wealth is often inherited and they view it as a sacred trust. They view their wealth as a responsibility to better their environment. These are the philanthropists. Think: David Rockefeller.

While these millionaires vary considerably from one another, they all have one thing in common: planning. It has been said that those who fail to plan, plan to fail. Whether you are a millionaire or aspire to be one, planning is the way to achieve your financial and life goals.

As with most endeavors, planning is essential when Read more…

My wife and I attended the Donald Trump Wealth Building Seminar a couple of weeks ago. Actually it wasn?t a seminar, but a 2 1/2 hour promotion for his upcoming weekend seminar. I have attended sales pitches for seminars before, but I must admit that this was one of the better ones. I did walk away with a few tidbits that I will be able to use on my Financial Freedom journey.

To the dismay of a few attendees the Donald wasn?t there. What do you expect for free? He did have a 10-15 minute video introduction to the seminar – where he changed his name into a verb. He must have mentioned the Trump Way a hundred times. ?I will teach you how to create wealth in the Trump Way. You will learn how to evaluate projects in the Trump Way. By the time you will finish my seminar – you will be combing your hair in the Trump Way.? I added the last one.

The presenter was excellent. Trump found a person who he believed represented the average American. He owned a moderately successful real estate agency and was making a living, but wasn?t really getting ahead. Trump?s people mentored him obviously in the Trump Way. Now he has multiple streams of income and appeared to be in a much better financial position. Trump is definitely a smart man. He created a success story to help sell his seminar. I am not sure exactly how long Trump work with this person, but I imagine a few years.

During the presentation, it was stated a roadmap is essential to wealth building. You must have: A dream Must have a goal and be passionate about it Must obtain specific knowledge Create a Timeline

In addition to those you must learn how to use OPM (other people?s money), OPT (other people?s time) and OPE (other people?s experience). Trump?s time is Read more…

Many people have conflicting emotions about prosperity and wealth. They have the idea that ?money is the root of all evil,? or that poverty is in it self some sort of noble cause and that to be rich a person must be greedy or take advantage of a people. Or that in order for one person to grow rich and prosper another must lose. They think the world is a win-lose prospect.

The truth is, the universe is governed by an infinite intelligence whose plan is to increase life. Every living thing in the world is seeking to increase life; to perpetuate itself in greater abundance.

The natural state of your life is increasing wealth, improving health, greater happiness, and an ever expanding capacity for love. Money is very much like love. The more you love people the greater your capacity to love. Parents who have one child do not expend all of their love on one child so that there is not enough for a second child. Instead, their capacity for love doubles and triples. From loving one they learn to love many and they learn to teach their children to love and see to increase the good in the world.

Money increases in much the same way as love. As you learn to increase your abundance the greater good you are able to do. As you save and invest money, the more money you are able to tithe to your favorite church, charities, and causes. You increase the good Read more…

Not necessarily. Actually, it depends on your definition of ?hard.? I began a 401K and pension fund when I was hired on at my company 24 years ago. Today, I have a nice retirement. But that was just my individual case and I?m sure your circumstance is far different. So let?s focus on you, instead. Whether you?re twenty or forty, you have to make a tough decision. You have to do without something now to benefit later. In other words, you have to save money now, and that means sacrifice.

The younger you are, the less you have to give up. That?s because your savings multiplies faster over a longer term. Hence, you can put aside a small amount and watch it grow using the magic of compound interest. Assuming that you can get a 5% return on an average investment, we can run a simple chart. That return is based on most common tables that are not tied to equities or bond funds. Although most experts would agree either should generate that type of return. Even guaranteed CD?s, or certificates of deposits, backed by FDIC for safety sake, can offer similar rates. But whatever device you choose, let?s use that number.

So let?s look at one example. Suppose you are 25 years old and make $10 an hour or $400 a week or $1600 a month. After taxes that?s about $1200 monthly. I want just $150 of that, for your monthly investment. Figure that if you were to give up a Starbucks coffee costing $5 every day, there?s your $150 a month. Do that for the next 40 years and you?ve given me $72,000. But, by investing the monthly amount in a 5% returning account, the compound interest turns this into $228,900 by age 65. Not bad for someone doing without a Vente Caf? Mocha Latte every day. Now, as you make more with raises, job changes, etc., and you could quadruple that investment, you?ve got over $1,000,000 for retirement.

But I?ve got an even better plan. Could you squirrel away $5,000 for that first year? I know that?s a lot to ask, but hear me out. If you could manage to put aside $10,000 over two years and invest it, never putting in another dime, you won?t be able to guess what you would amass after 40 years. $50,000! But, if you Read more…

A blog that investigates how entrepreneurs monetize their web sites (see URL below):

Price Comparison Sites

A few people seem to be making millions setting up and selling price
comparison sites. Like moneysupermarket.com etc.

Take SimplySwitch. Started in 2002, they sold for over ?20m (The
Independent, Wed, 30th August). The trick seems to be to gain market share
and wait for one of the big boys to make an offer. Nothing new then.

It seems that revenue is generated from companies who wish to appear higher
up on the listings. So there is an inherent flaw in that there is a high
potential for a lack of objectivity. The sites tell you that they are
“independent” and offer a “choice of providers.” This is like the standard
commission based schemes, the more they’re getting paid, the more they’ll
push that firm / product.

Reduced to its simplest form, it’s a database operation.

I would image you need Read more…

Does Money Bring Happiness?

During any discussion about making more money and achieving financial freedom you will have a few persons trying to play down the importance of having money, saying ?money is not important?, or else something to the effect that the pursuit of wealth is in some way ?evil?, that having money is the surest way to ?hell?. (But have you ever heard a wealthy person complain about having money?)

Let us approach this question another way. Does not having money take away something from your life, make you less happy?

We need money to bring us the essentials of life. For the basics ? food, clothing, shelter, for meeting educational expenses for ourselves and our children, medical expenses for our family including parents. We need money for a life of comfort beyond just the basics ? for good food, for a big enough house, for our cars, to eat out once in a while, for entertainment, to support our favourite causes and our favourite charities. We need money to take care of contingencies.

In short, we need to have enough money so that you are not worried about money

Not having money takes away from the quality of our life, and difficulty in meeting essential expenses and the resultant stress could even add to relationship problems. Not Read more…

Sacrifices have been made. People have been killed, wars have been fought, civil disobedience campaigns have been waged and in some countries governments have been overthrown. The lengths to which mankind has at various times gone to achieve freedom is extraordinary.

Despite all this effort, how much freedom have we really actually achieved?

We (of the ?first world?) have certainly achieved a pretty good state of physical freedom. Unless you are incarcerated, or otherwise detained, we can go out, go home, visit your friends, travel interstate, and in most cases internationally without being physically restrained from doing so..

Chalk one up for freedom

What about political and religious freedom? While our political system is not ideal and probably never will be, we certainly seem to have made a lot of progress in this arena. We can be a member of any ?party? or subscribe to any ideology we wish without any lawful restriction, interference or discrimination. We have a high level of personal rights protected both legally and constitutionally.

OK, so freedom takes the political/religious flag too?

So our system of government supports our RIGHT to believe what we want and go where we want? But is freedom simply a matter of rights or does it also require the ability to actually exercise that right?

For Example, maybe you would love to be on a yacht in the Mediterranean. I know I would!

You certainly have the right to do so, so why are you not there? If you are like most of our population, Money, or rather a lack thereof prevents you from going, plus the fact that if you took off to the Med for a month, you would lose your job, and therefore probably lose your house car etc.

The question to ask then is if we have the right to go to the Mediterranean, but not the means? do we actually really have FREEDOM to go there?

If we have the right to go, and the money to get there, but are told by our employer that we can?t have the time off? are we really free?

My answer is no.

The freedoms that have been won for us by the sacrifices of our predecessors are considerable, and I do not in any way trivialise them. On the contrary, if we are to live up to legacy earned for us by their sacrifice, we must push the limits further, and continue their fight into realm of financial freedom.

Unlike many Read more…

In modern society, we have a growing number of techniques to obtain wealth. One must simply gain the knowledge and skills necessary to implement the proper strategies and techniques. One strategy is called “triple compounding”, suggested by Steve Sjuggerud. Sjuggerud is the writer of investment letter “True Wealth”. He unfolds, “Your account can grow at rapid speeds for three reasons: First, you are adding to your account every month. Second, if you invest in growth mutual funds, your NAV (net asset value) is likely to increase overtime. Third, all dividends and distributions are automatically reinvested”.

One of the least practiced techniques for building wealth is to set aside money in separate accounts. Regardless of income, condition yourself to budget and stash away at least 5%-7% of your income each pay period and do not allow funds to be touched under any circumstances. Some individual get a certain amount taken out of their income before they see their paychecks (in addition to 401k plan). A number of Read more…

Most people want to retire with some level of financial security. We all want the peace of mind and self-dignity that comes from knowing that we are not at risk of ever becoming a burden on our families, the government or the state.

Knowing and understanding the three different phases of financial planning can act as a road map and help us prepare a good solid financial plan to improve our chances of meeting our life goals.

There are three different phases of financial planning:

? The Accumulation phase

? The Distribution phase, and

? The Preservation phase

As the name implies, the first phase, the accumulation phase is the period of accumulating assets that will contribute to your wealth. This phase include your working years. First you learn to earn money, and then you determine how best to manage your money to make it grow into wealth. You can effectively do this by investing in different asset classes that will form the foundation of your wealth.

This phase provides a certain level of financial stability and most people never leave this phase their entire lifetime. However, majority of the population do not even enter this phase to begin accumulating any assets. They continually live from paycheque to paycheque without giving much thought to their financial future.

If you find your self in this phase, if you have invested in your first property (not your residential home), if you have started or purchased your first business, or purchased some stocks and shares, congratulate yourself.

Examples of common asset classes to contribute to your wealth include:

? Cash (Treasury Bills, Money Markets, CDs)

? Bonds

? Stocks and shares

? Land and Property (real estate)

? Precious metals

The best advice for those in the accumulation stage is to hold onto the assets you are acquiring, and allow time to work it?s magic. Set time-bound goals for how long you intend to accumulate your assets before moving on to the next phase. Work diligently on your plan and keep your focus.

Continually learn more about the different asset classes available and diversify by investing in several classes. Different assets have different qualities and strengths, as well as risk and rewards.

Investing in several asset classes is a sound investment strategy that can significantly increase your ability to reach your investment goals faster.

The distribution stage is the period when you get to enjoy the benefits of wealth, when you get to draw down income from your assets. It is the reason for accumulating assets in the first place. After years of planning, investing and accumulating assets by the time you reach Read more…