21st Century Academy

Stock options should not be a source of dread, especially considering their potential for helping you build wealth. The notion of investing has probably been circulating through your thoughts for quite awhile, but this does little good if you fail to take action. Building wealth using stock options is a viable option that is not reserved for a handful of individuals. Anyone can do it.

Visualizing Success

Having options is an important aspect of building wealth through the stock market. Consider different approaches to investing and see which naturally appeals to you. Let go of apprehension and inaction, allowing yourself to welcome the flow of return effortlessly.

The process involves visualizing your specific goals with great energy and positive thoughts. Emotional components are important as well in this visualization strategy. Focus on seeing your goals, allowing your thoughts to create genuine feelings of success and gratitude.

The only difference between you and successful investors is the successful investor takes action. Your thoughts have brought you to a place in which you have the opportunity to learn about finances and to take action with positive emotional force backing your decisions.

Stock Option Goals

Fear of the unknown can be debilitating, especially in matters of building wealth. It isn’t necessary to understand every facet of the stock market in order to make good investment decisions. It isn’t necessary to know every aspect of how a cell phone works in order to operate it. Creating financial goals and visualizing your successful progress is enough to move you along, but it is necessary to educate yourself about stock options.

Renting shares for monthly cashflow is an excellent approach that offers steady income for investors.

Stock options are ideal because they are versatile, making them perfect for consistent growth. The options allow investors to make a profit in spite of a poor stock market. The approach also gives you leverage, with greater potential for earnings with relatively little price change. Hedging is another appealing aspect of stock options because the process mimics insurance coverage.

Many people have been able to fire their boss as they learn how stock options produce wealth for them. Instead of making money for someone else, isn’t it time to begin making money for yourself? You can succeed with stock options.

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Have you considered part time option trading as a way to make money in the current market? Perhaps the biggest key to success with this type of investment is fully understanding how this works and what tools are available to use. While this is considered a risky type of investment, it is also a way to realise some very handsome profits.

About Stock Options

Stock options are basically futures certificates. They are sold at a lower price than the time of purchase value. The investor who buys options does so with the hope that when they are sold upon the maturity date, their value will have increased.

Of course, the option can be exercised before the date of the contract’s maturity, but they will be sold at the issue price. The best hope for making a profit rests in the stocks gaining value over time. This ‘buy low sell high’ concept is a basic one in investing.

Strategies and Tools

Because trading in options requires a great deal of at-risk capital, it is best delegated to 10% of your investment funds or less. In fact, for a diverse portfolio, this rule of thumb applies to nearly any type of speculation. Thus part time option trading is merely a way to supplement a larger portfolio.

There are several tools available to help make good decisions when buying and selling options. Perhaps the most readily available are charts and graphs which indicate the past history of trades for a particular stock. These can be rather difficult to understand. It is probably best to learn from a professional instructor as to what to look for and how to use this information to make successful options trades.

As with any type of investment, part time option trading can be a lucrative way to make a profit. Start with some practice trading and consider taking a course which specifically addresses options. It may be high-risk, but it also holds the potential for high profits.

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It’s nearly time for the 4 Day Education For Life Seminar with 21st Century Academy again. This time it’s on the Gold Coast and the line up consists of Jamie McIntyre and his many guest speakers. The cashflow strategies and financial intelligence that is taught is as always highly valued by the ones who are prepared to have an open mind.

Education For Life

I’m on the Gold Coast right now visiting a couple of the residing guest speakers. Their input next week at the Education For Life seminar will be great! One stock market investor has just taught me how to make so much return on my investment per month, I can’t mention it here as it would possibly get me into trouble (by the ones with closed minds). I look very much forward to the seminar as always. I look forward to meeting many of the new graduates there.

Until next time…

Heres to a an education for life

Sean Rasmussen
21st Century Academy
Universal Wealth Creation © 2004 - 2007

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Using the term Renting Shares has got a few people into trouble. It is not the correct legal term. It’s probably because it make too much sense and we can’t have that, can we? Let’s have a go at explaining what the term is used for. What does it mean and why is is called Renting Shares? Well, I’ll run you through a hypothetical example of one years worth of trading to see exactly what it is. This is effectively an example I learned from 21st Century Academy and Jamie McIntyre.

First, to put this into perspective, I’ll use an analogy.

Renting Houses Like a Landlord

A landlord rents out a house. The house may have cost $100,000 and costs $8,000 a year in interest to the bank. The tenant pays $200 per week in rent and there are fees for real estate agents, upkeep, maintenance, rates etc… Here is a very simplified summary :

Cost of house: $100,000

Annual bank interest on a 100% loan: $8,000
Maintenance, upkeep etc: $2,000
Real estate agent fees: $400
Total expenses per annum: $10,400

Rental income: $200 per week = $10,400 per annum

This means your expenses are the same as the income and your house would be cashflow neutral. Not a bad investment considering properties generally go up in value over time. This means you can make money without any real drain to your cashflow. This example will of course vary heavily depending on different financial scenarios.

Renting Shares Like a Sharelord

Now, if you would be Renting Shares Like a Sharelord, you would effectively buy shares and just like a house, you’d simply rent them out to the stock market. You may buy a share at $10.00 and offer to sell it at $10.50. If the share goes above $10.50 you have to sell it at a 50c profit and cash in.

Cost of shares: $100,000

Annual bank interest on a 100% loan: $8,000
Estimated stock market brokerage: $1,000
Options fees, additional brokerage: $700
Total expenses per annum: $9,700

Approximate Share Rental income, non leveraged 2% per month: $24,000

Profit = $14,300
Return On Investment = 14,3% per annum

Should you wish to have a 90% insurance on your shares to cover yourself against a stock market correction, this would cost approximately 4-7% of the share cost, depending on the share volatility. If you want the added security, you can have an insured portfolio and still make around 6-10% on the share portfolio.

Create Wealth Through Renting Shares

In the above example, I haven’t allowed for the fact that you will get forced to sell your shares at a profit every now and again. This adds to your investment profits and there are some extra stock broker fees to consider. This is just a very simple example of how to create wealth through renting shares. Extra cashflow has never hurt anyone. When adding financial discipline to the equation you can benefit greatly.

Covered Calls and Compound Interest

The correct industry term for Renting Shares is Writing Covered Calls. You do this on the stock market and obviously should use a licensed qualified stockbroker. When this strategy is done correctly and the rules are respected, people can make some handsome returns. I don’t know about you but I’m pretty happy with a 2% per month return on investment. That is 24% per annum and is you were to apply compound interest, well that is whole new kettle of fish… We will cover compound interest when talking about building a Millionaire Mindset.

Until next time…

I wish you abundance in the 21st Century

Sean Rasmussen
21st Century Academy
Universal Wealth Creation © 2004 - 2007

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It’s another day at an excellent 21st Century Academy Seminar. This time I’m in Auckland at the Internet & Business Mastery Seminar. Last week Perth – Australia was the venue. After a 6 hour flight and 5 hours of time difference, I’m in New Zealand enjoying the hospitality of our great neighbours. Once again, I am pleasantly exposed to the teachings of Jamie McIntyre and learning about Financial Success in the 21st Century.

When I was 37, I was introduced to 21st Century Academy by a newspaper ad. I ordered a wealth creation DVD and was watching it only a few days later. I soon found myself taking massive action moving towards a goal of Financial Freedom. 3 ½ years later I’m well on the way and kicking financial goals that I only dreamt of in the past. Jamie McIntyre certainly taught me how to take charge of my own financial future and create my own wealth.

On track to financial freedom, I now engaged into a homestudy program so I could Learn To Be Rich. This was the education for life homestudy program by Jamie McIntyre. This took me 3 weeks and within 2 months I was trading on the stock market and making a profit on a monthly basis. I was now on track towards Financial Success in the 21st Century. By attending the 21st Century Academy seminar in October 2004, I drove the knowledge home and was able to kick my investments into a higher gear. The same DVD I watched back then is available on this wealth creation website.

Here’s to Financial Success in the 21st Century

Sean Rasmussen
21st Century Academy
Universal Wealth Creation © 2004 - 2007

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