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Weekend: The Fool Proof Retirement Plan

Welcome to the Wealth Daily Weekend Edition — our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles. As I wrote earlier in the week, dividend reinvestment plans — or DRIPs — are a great way to secure your financial future. All you need is the time and patience to stick to the blueprint… The best part is these plans are offered by more than 1,100 companies and are available to investors of all stripes, making it possible to purchase shares of stock without using a broker. This allows investors to buy stock directly from the company in very small amounts — something that can be more difficult and costly when compared to buying shares through your broker. In fact most companies don’t charge a fee, and the minimum investment can be as low as $10. Advertisement 60 Minutes Reports on Growing Body Parts Call it what you want: biotechnology, tissue engineering, cell therapy, regenerative medicine. The famous newsmagazine has reported on one doctor about to make multiple medical problems disappear forever. Lucky for you, that same doctor sits on the board of a $3.00 company that will bring these solutions to market — making shareholders rich in the process. Check out the 60 Minutes clip to learn the name. The plans also reinvest all or partial dividends paid into more stock, thus the name “Dividend Reinvestment Plan.” And in this case — since the investment is based on dollar amounts — you can purchase fractional shares. In addition, investors can choose to add a monthly contribution to the plan, boosting the amount of wealth the DRIP can create. That means you can start out with as little…

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Dividend Reinvestment Plans

Filed in BP, dividend, GOld juniors, Gold Market, o, shares, target, Yahoo by on February 9, 2011 0 Comments

As the old fable reminds us, it’s not always the hare who wins the race. For as savvy dividend investors surely know, it is the tortoise who prospers in the long run. That’s because the tortoise knows that income investing allows you to win two ways: first, with a cash payout; and second, through price appreciation. And the best part is you don’t exactly need to be star trader or marker timer to reach your financial goals using this strategy… You just need to be patient enough to push through the volatility onward to the higher ground. Of course, seasoned dividend investors themselves have known this for years. That’s why the truly rich don’t spend their days glued to the financial news like a bunch of lemmings. They realize that while most investors think trading is where the action is, investing in high-yielding income stocks is just as rewarding — provided you are smart enough to stick to a steady and persistent pace. In this style of investing, less truly is more. The Rule of 72 Because the biggest component behind this investment strategy is time — time, the greatest equalizer of them all. The secret to this approach is in the compounding effect that Albert Einstein once called “the most powerful force on earth.” In fact this force is so powerful that I think the government is deliberately keeping it from you. I say that because if the masses actually knew the income this compounding could deliver, they would immediately demand an end to Social Security as we know it. Why is that? you ask. That’s where the Rule of 72 comes in. The Rule of 72 says that in order to find the number of years it takes for you to double your investment at a given rate, just divide the yield into 72. For example: If your are earning a 9% dividend on your investment, it only takes eight years to double your money, and roughly 13 years to triple it. This compounding effect arises when your dividend yield is added to the principal, so that from that moment on, the interest begins to earn interest on itself. Over time, that process can add up to a small fortune — even with very modest investments. ~~SIGNUP_WD~~ The Retirement Blueprint By using this simple but powerful strategy, you can build a $270,000 nest egg in just 35 years by contributing as little as $100/month. That’s basically the cost of a cable bill, and it would yield a 525% gain — a market-beating average of 15% per year. And it’s easier to come by than you think… Let’s say you had saved $1,200 and started with an investment in one of my favorite dividend payers, Abbott Laboratories (NYSE: ABT ). That initial investment would buy you 26 shares of ABT at today’s prices, each one earning a dividend yield of 3.8%. Over time, that specific example would earn you a $270,000 payday as long as you simply reinvest your dividends, add a mere $100 a month to your account, and the underlying stock appreciates just 5% per year… Not bad. Here’s…

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NetEase (NTES): China’s Expanding Internet

Filed in Bank Gold, o, revenue, shares, Yahoo by on February 8, 2011 0 Comments
NetEase (NTES): China’s Expanding Internet

Filed under: International Markets , China , Newsletters , Stocks to Buy “NetEase ( NTES ) fits right into the theme of rapidly expanding Internet revenues and profits in China,” says Jim Trippon . The editor of the China Stock Digest explains, “At least 450 million Chinese are now online. Online gaming has 265 million users and is expected to gross over $4 billion over the past year. “This company has a wide offering of products, even though it is mostly known to western investors as a gaming platform. In fact, NetEase falls into all of the major categories of web revenue generation with significant ad sales, a home page service similar to Yahoo, email, search and a new online B2C (business to consumer) shopping presence. Continue reading NetEase (NTES): China’s Expanding Internet NetEase (NTES): China’s Expanding Internet originally appeared on BloggingStocks on Tue, 08 Feb 2011 13:00:00 EST. Please see our terms for use of feeds . Permalink  |  Email this  |  Comments

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Weekend: Tomorrow’s News Today

Welcome to the Wealth Daily Weekend Edition — our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles. As the markets continue to feed the bulls with yet another push to the upside, it’s but a sideshow to the world’s entrepreneurs. Deaf to market chatter, they simply go about their work as the talking heads on CNBC like Cramer and Maria take it all into overdrive. And while the markets matter in the grand scheme of things, to the truly creative types, it only provides a faint background noise. Instead, they are busy doing what they have always done: pushing their dreams down the unknown road. As always, the ascent of man reaches for a higher place. That’s why the future is so hard to predict. Innovation alters the world in ways we don’t always expect. So what can we look forward to over the course of the next five years? Advertisement The Biggest Investment of the 21st Century It’s called the smart grid… and it’s about to revolutionize the way we use our electricity. GE and Google have already committed billions to this technology… But a handful of “super-ups” are poised to dominate this $297 billion/year industry… Get their names and ticker symbols here. According to IBM’s (NYSE: IBM ) latest “Five in Five,” technology will change people’s lives in the following ways… 1. You’ll beam up your friends in 3D. In the next five years, 3D interfaces (like those in the movies) will let you interact with 3D holograms of your friends in real time. Movies and TVs are already moving to 3D, and as 3D and holographic cameras get more sophisticated and miniaturized to fit into cell phones, you will be able to interact with photos, browse the Web, and chat with your friends in entirely new ways. 2. Batteries will breathe air to power our devices. In the next five years, scientific advances in transistors and battery technology will allow your devices to last about 10 times longer than they do today. And better yet, in some cases, …

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NEWSFLASH: The Meltdown Didn’t Have to Happen

Filed in Alan Greenspan, BP, democrats, Federal Reserve, Gold, Gold Market, lead, Lear, o, Yahoo by on January 28, 2011 0 Comments
NEWSFLASH: The Meltdown Didn’t Have to Happen

Watching the government do practically anything is often akin to watching molasses run down the hill in January. But like that slow running ooze, even the government eventually manages to accomplish its feat. The problem in this case is that they are telling us what we already know. So here’s the newsflash sportfans: the financial meltdown could have been stopped. Gee thanks… From the New York Times by Sewell Chan entitled: Financial Meltdow was ‘Avoidable’, Inquiry Concludes “ The 2008 financial crisis was an “avoidable” disaster caused by widespread failures in government regulation, corporate mismanagement and heedless risk-taking by Wall Street, according to the conclusions of a Congressional inquiry. The government commission that investigated the financial crisis casts a wide net of blame, faulting two administrations, the Federal Reserve and other regulators for permitting a calamitous concoction: shoddy mortgage lending, the excessive packaging and sale of loans to investors, and risky bets on securities backed by the loans. “ The greatest tragedy would be to accept the refrain that no one could have seen this coming and thus nothing could have been done,” the panel wrote in the report’s conclusions. “If we accept this notion, it will happen again.” The commission’s report finds fault with two Fed chairmen: Alan Greenspan, a skeptic of regulation who led the central bank as the housing bubble expanded, and his successor, Ben S. Bernanke, who did not foresee the crisis but then played a crucial role in the response to it. It criticizes Mr. Greenspan for advocating financial deregulation and cites a “pivotal failure to stem the flow of toxic mortgages” under his leadership as “the prime example” of government negligence. It also criticizes the Bush administration’s “inconsistent response” to the crisis — allowing Lehman Brothers to go bankrupt in September 2008 after earlier bailing out another bank, Bear Stearns, with help from the…

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Top Dividend Stocks

Top Dividend Stocks

Like a fleck of pepper in a bag of sugar, Kathleen Casey-Kirschling is entirely unique. Born on New Year’s day 65 years ago, she is the oldest baby boomer of them all. That puts her at the head of the line of new retirees that stretches 78 million people deep… According to the Pew Research Center, about 10,000 baby boomers will turn 65 every day for the next 19 years. Between rising consumer prices, falling home values, and a tough economy, today’s newest oldsters are finding that, when it comes to a comfortable retirement, many of them are increasingly coming up short. In fact, according to a recent Employee Benefit Research Institute survey, one-third of people age 55 and older have less than $10,000 saved for their golden years, while a full two-thirds have less than $100,000 socked away. The “lifestyle gap” Given that Social Security benefits will replace only 16% of the income for married couples earning between $50,000 to $100,000, and only 9.5% of the income of married couples earning $100,000, this leaves an impending “lifestyle gap” that very few of these folks will be able to finesse. Instead of lives of leisure, many of them will need second careers as Wal-Mart greeters. That’s not a low blow, but the reality of the new math — $100,000 is a drop in the bucket for these folks. And let’s face it; even the prospect of those bare-bones Social Security checks is as flimsy as ever. By 2030 — when most of the baby boomers will have retired — just two people will be working to support each person receiving benefits. At that point, it’s likely this Ponzi scheme will have already blown up. As I reported last March , Social Security is already cash flow negative, paying out more in benefits than it receives in contributions. That’s five years ahead of schedule, according to the Congressional Budget Office. As for me, this is one train wreck I’m not counting on — and neither should you. Personally, I have no intention of spending my golden years learning the intricacies of the drive-thru window. So what is a prospective retiree to do ? you ask… The answer is pretty simple: They need to begin creating an income stream from their investments to close the gaps they will inevitably face when they retire. And the time to get started was yesterday. This means building a portion of your portfolio around a solid base of dividend stocks. Because with the FED waging a virtual war on savers, the dividend payers are your next best option — versus things like CDs, or at this stage, even bonds… That’s why long-term investors are so eager to gobble up high dividend yields these days. ~~SIGNUP_WD~~ What is a dividend, anyway? In short, a dividend is a cash payout you receive for simply being a shareholder, sort of like receiving a “bonus” based on the company’s earnings. Better yet, these checks are deposited directly into your account quarterly or monthly, depending upon the company you choose. These “bonuses” also continue to offer lower tax rates, since the favorable tax treatment of dividends has been extended for another two years. The rate remains at 15 percent (instead of your regular tax rate) unless you are in the 10…

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Yahoo! Still Trying to Play Catch Up

Yahoo! Still Trying to Play Catch Up

Filed under: Earnings Reports , Forecasts , Internet , Yahoo! (YHOO) Yahoo is still trying to play catch up. Helped by cost cuts, Yahoo! ( YHOO ) posted late Tuesday fourth quarter income of $312 million, or 24 cents a share, more than double last year’s income of $153 million, or 11 cents a share, according to the Wall Street Journal . Revenue fell 12% to $1.53 billion from $1.73 billion. Net revenue, which excludes commissions paid to partners, fell 4% in the quarter to $1.22 billion from $1.26 billion in the year ago period. Excluding the Microsoft ( MSFT ) impact and certain divestitures, revenue grew by 2% in the quarter. Continue reading Yahoo! Still Trying to Play Catch Up Yahoo! Still Trying to Play Catch Up originally appeared on BloggingStocks on Wed, 26 Jan 2011 10:00:00 EST. Please see our terms for use of feeds . Read  |  Permalink  |  Email this  |  Comments

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Weekend: A Digital Pearl Harbor

Welcome to the Wealth Daily Weekend Edition — our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles. From Sun Tzu to “Stormin’ Norman” Schwarzkopf, the goal of every military commander has always been pretty simple: to kill people and break things. Beat the other guy, and your name will find its way into the history books… The only thing that changes is the technology. From the longbow to the ballistic missile, the arms race is one that never sleeps. One of the fastest growing fronts in this struggle is in cyberspace. Today’s style of combat is geek versus geek. But don’t believe for a second that it’s not just as dangerous… Because while it doesn’t involve tanks or fighter squadrons, cyberwar’s ability to disrupt an enemy is just as effective, and often equally destructive. It’s war by other means — one that focuses on using computer code to strike an enemy’s Achilles’ heel. Full-scale cyberwar The recent discovery of a computer worm called Stuxnet is a perfect example of the damage a hacker armed with code can create. Using the “most advanced and aggressive malware in history,” cyberwarriors have now set Iran’s nuclear ambitions back by two years, according to most estimates. (Not surprisingly, Israel and the United States are at the top of the suspect list.) The worm itself attacked controllers critical to operations at Natanz, a sprawling enrichment site in Iran’s desert. As operators stared blankly at their screens, the bug’s centrifuges spun wildly out of control, tearing systems apart. “This was nearly as effective as a military strike, but even better since there are no fatalities and no full-blown war. From a military perspective, this was a huge success,” said Ralph Langer, a top German Security expert. “It will take two years for Iran to get back on track.” This is only the latest cyber skirmish… Back in 2007, Estonia fell victim to what Wired Magazine dubbed “Web War One”. Hounded by three weeks of digital assaults, Estonia’s electronic Maginot Line proved as feeble as the original. The country’s firewalls withered as a flood of data sent by the nation’s unknown opponents quickly crashed one system after another, crippling numerous vital public services. Websites of government ministries, banks, and newspapers all fell victim. And while the rest of the world watched the attacks with a combination of curiosity and indifference, military planners…

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Facebook Raises Another $1 Billion From Outside US

Facebook adding another $1 billion to its latest round of funding, to bring the total to $1.5 billion, and valuing the company at $50 billion. That includes the approximate $500 million Goldman Sachs (NYSE:GS) and Digital Sky Technologies invested in Facebook in December. While some like to make a big deal about Facebook having a market value higher than eBay (NASDAQ:EBAY) and Yahoo (NASDAQ:

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Google (Nasdaq:GOOG) Widens Search Lead Over Microsoft (Nasdaq:MSFT), Yahoo (Nasdaq:YHOO) in December Says ComScore

According to comScore Inc., Google (Nasdaq:GOOG) has widened their lead in search for the U.S. market in December over competitors Microsoft (Nasdaq:MSFT) and Yahoo (Nasdaq:YHOO). The conclusion is based on what is called “explicit core” Internet search in the U.S., and not overall core search. In overall core search, Google was flat, coming in at 64.3 percent, while the combined total of

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