Growth & Income: How to Build a Mutual Fund Money Machine - Softcover

Stoker, R. Bryan

Softcover

ISBN 10: 0963986376 ISBN 13: 9780963986375

Publisher: Lifestyle Pub, 1999

Synopsis

Would you invest 10 minutes per month to DOUBLE or TRIPLE the performance of your mutual funds? These simple, revolutionary strategies developed from over 2 years of doctoral research show you how!

GROWTH & INCOME presents an easy, step-by-step plan for investing in the real world without timing or predicting the markets. This book fully explains new techniques to invest in mutual funds to create growing account values and increasing income for the rest of your life automatically. Dr. Stoker's simple worksheets and procedures include all the latest changes from the Tax Payer's Relief Act of 1997 and will show you how to minimize taxes and boost your returns.

GROWTH & INCOME also includes a special section on building retirement wealth. You will learn which tax-deferred investments to pursue first (e.g., IRA, 401(k), SIMPLE, SEP-IRA, annuities, etc.) and how to make your investments last as long as possible after you retire. Buy this book now for yourself or a loved one, and learn how to retire early and how to earn 3 times your salary after you retire!

Dr. Stoker's academic research and personal quest for financial wealth over the last 20+ years have finally culminated in the exciting results published in this book. Dr. Stoker's techniques presented in this book show you how to magnify your mutual fund returns and create a growing income all with less risk than what you are doing now!

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(3) Higher Returns From Your Dollar Cost Averaged Accounts
* 3 Coupons Worth Over $200:
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About this title

About the Author:

R. Bryan Stoker has been an avid student and practitioner of personal financial management and investing for over twenty years. After taking his first job when he was 14 years old, he began selecting and purchasing stocks for his personal portfolio at the early age of 15 and used the proceeds to purchase his first real estate investment only four months after graduating from college in 1984. Not only did he make over $25,000 on the sale of this investment four and a half years later, but he also managed to live there for free; after taxes, he was effectively paid to live in his own home. A couple of years after purchasing his home, he also began investing in mutual funds. Mr. Stoker's first experience in starting a small business was during high school with a freelance house painting business. Shortly after completing his Master's degree in 1987, he became the president and partial owner of a martial arts academy part-time while still working full-time as a Professional Engineer for the Government. While working full-time for the Government, Mr. Stoker also completed all the requirements for a Masters and Doctoral degree in business administration after hours. In fact, the basis of the information presented in his book, GROWTH & INCOME, is the result of the intense study and investigation performed to complete Mr. Stoker's dissertation for the Doctoral degree.

Dr. Stoker spent the first eight years of his life in his home town of Hickory, NC. During the next ten years, he spent a couple of years each in Salt Lake City, Utah and Asheville, NC before finally moving back to his home town and graduating from Hickory High School. He received his Bachelor's degree in Electronics Engineering from NC State University in Raleigh, NC (1984) and completed his Master's degree in Electrical Engineering part-time during the evenings from The Johns Hopkins University in Baltimore, MD (1987). In 1997, Dr. Stoker also completed a Master's and Doctoral degree in Business Administration from the California Coast University while still working full-time for the Government.

Excerpt. © Reprinted by permission. All rights reserved.:

If your savings, investments, and income are not overflowing enough to provide the lifestyle you have always wanted, would you be interested in a couple of simple steps you could take to change your life? This book presents simple, high-potential techniques that can build a growing income with less risk than what you are doing now. You don't have to start a business, get a second job, or spend a bunch of money. In fact, you only need to spend five to ten minutes per month, at the most, to secure your financial future.

Today's business world has become a fast-paced environment where few people are able to simply get a good job, work for the same employer for thirty years, and retire on a comfortable pension. Instead, most companies are no longer loyal to the employees; they are laying people off as soon as contracts are lost or new executive management decides to enhance the bottom line. These trends are not necessarily bad; they do enhance competition and make America more productive. However, these trends have created an environment that forces the American worker to take care of his own future by planning his own finances. Furthermore, American workers are under greater stress due to the fear of losing their jobs due to competition, failing companies, changing markets, etc. Understandably, today's employees want to make their money work as hard as they do, and in more and more cases, they want to retire early.

As a result of these changes in America's culture, the financial industry is exploding. The middle class, especially, is working longer hours and is under greater stress just to break even, and they typically do not have time to dedicate additional hours to analyze stocks and bonds and monitor their own portfolios. Thus, new mutual funds (where professional investment managers invest a large pool of money from thousands of individual investors) are created almost every month. In fact, there are now almost as many mutual funds (over 10,000) as there are stocks (approximately 15,000). The financial planning business is booming, and new financial magazines, newsletters, and newspapers are popping up with nearly every trip to the bookstore.

Unfortunately, however, the techniques of investing in mutual funds have not changed much over the last fifteen to twenty years. If you pick up nearly any issue of any financial magazine or speak to any financial planner, the first investment technique you will encounter is Dollar Cost Averaging. If you dig a bit further, you may also come across another popular technique called Asset Allocation. Both of these techniques are described in more detail later. However, in my personal quest for higher investment returns over the last twenty years, I came across a small booklet by Ken Roberts called, Dollar Value Averaging: How to Profit from Volatile Markets. This booklet spoke of a technique that produced significantly higher returns with lower risk than the traditional, conservative techniques discussed above. However, when I began trying to implement the plan in real investments, there were many unanswered. so, I created a few spreadsheets, performed a bit of analysis and began deriving my own answers to questions such as the ones listed below:

What do you do if your mutual fund only allows six exchanges per year? What if it only allows four?

What do you do if the theory says cash in $78 worth of shares and the fund limits you to $100 minimum redemptions or exchanges?

Is it better to invest in aggressive growth funds (i.e., high volatility) or more stable balanced funds if you are going to use dollar value averaging? What if you are going to use asset allocation?

When is one technique better than the other?

The preliminary answers were counter-intuitive in some cases. It became apparent that this technique did have high potential, but there was a need to create general guidelines and a step-by-step plan appropriate for those who want to maximize returns and simultaneously minimize risk and effort.

As I was performing this research, the results were starting to get exciting. The dollar value averaging technique can easily generate infinite returns on investment relatively quickly. In fact, you can create a veritable money machine that keeps paying you an increasing income even after you have recouped all of your original investment. This technique forces you to "buy low and sell high" (unlike dollar cost averaging), and yet it is actually lower risk than dollar cost averaging. Finally, you can really supercharge your investments by combining the technique as described in chapter nine.

If you are looking for a simple way to make your money work harder for you, increase your investment returns, and lower your risk with only a little more effort than the traditional techniques, the information that follows may be of great interest to you. Dollar value averaging is flexible in scope and can be used to (1) generate very large balances, (2) provide a way to automatically transfer money from the riskier stock market to less risky money markets as you approach retirement, and (3) create a money machine that continues to generate increasing cash income to you long after you have taken back all the money you ever invested. These techniques can also be used in your own business by conservatively investing cash reserves and your retirement accounts (i.e., IRA, 401(k), SEP-IRA, SIMPLE accounts, etc.)

About this edition

• Publisher: Lifestyle Pub
• Publication date: 1999
• ISBN 10: 0963986376
• ISBN 13: 9780963986375
• Binding: Paperback
• Number of pages: 336