The Beauty Of Income Trusts

Most people are familiar with investments like stocks, bonds and real estate. What they don't realize is that there are people / companies out there that professionally manage investment portfolios to generate above average income.

Income trusts offer a good alternative for people who want to live off their investments. They offer retruns anywhere between 7% and 20%, depending on the type of trusts. Returns are made up of income producing investments and capital gains. Income is generated from dividends, interest from bonds or GIC's or rental income from real estate. Generally, the value of income trusts parallels the bond market. At interest rates go up, the value goes down.

Income generated from income trusts is tax advantaged. Although these trusts qualify as RRSP investments the tax advantages are lost within an RRSP. If you have a high income pension or RRIF you may want to diversify your non-RRSP income through income trusts. Professional investment managers work diligently, with a team to create as much income as possible while taking advantage of all the tax write-offs and tax deferral methods.

Income trusts are such a good income producing vehicle that there is some debate about the government changing the tax laws specifically for this class of investments. There is also a danger of unlimited personal liability because of the structure of these investments. Be sure you have all the information before you sign up for this type of investment.

Living Legacy's Inc. offers up to 11% tax-advantaged gains. In fact, for many people the gains are tax free. For more information you can access the complete package here: http://www.netman-ecommerce-guru.com/life1 or call 1-877-269-0950.

For a more detailed discussion of income trusts you can go to: http://www.fbc.ca/Keep_Current/Articles/articles05020401.asp

This site offers an up to date review of income trusts: http://www.davidkaiser.com/incometrustreview.htm

Finding The Best GIC / Term Deposit

GIC or Guaranteed Investment Certificate is often the first place investors learn to save their money. These investments are easily available at all banks and are promoted heavily by their "investment consultants".

People like them because they are safe and uncomplicated but are unhappy about the low rate of return. The average investor's fear of loss and lack of investment knowledge makes GIC's by far the most popular investment for most investors.

One easy way to increase the return without increasing risk is to simply look in your daily newspaper for a comparison of rates. You will notice that the major banks all offer the same rate. GIC rates offered by trust companies are a little higher and the highest rates are offered by small, local banks and credit unions.

Most GIC's are insured by the CDIC (Canadian Deposit Insurance Corporation) so you can invest up to $60,000 with relative safety. You should adopt the strategy of investing up to that amount in several different institutions if you want your money to be truly safe. Some banks make arrangements with other institutions to use their CDIC limits so they can offer their clients higher GIC amounts than the $60,000 limit.

Insurance companies often pay higher than the banks. However, since they are not banks they are not allowed to offer GIC's. In order to get around this, they make up a variety of names to communicate the same message. The largest insurance companies in the world have formed CompCorp to insure investments like CDIC. CompCorp offers the same limits and limitations as CDIC but covers additional products offered only by insurance companies.

Many institutions offer stepped investments where if you keep your money with them longer you can get a higher return in the final years. Some of these can be good, but be careful. Do a full calculation of how much you will actually earn over the term of the investment. There is a lot of gimmicry going on and investors can be led to think they will make more money even though the net result is the same as regular GIC's.

Another little-known way to get a high paying GIC is by investing in foreign countries. Some countries have been known to pay as much as 16%, guaranteed by the government. I think these GIC's are actually better than bonds. The value of bonds is set by the bond market, so you really don't know how much money you will make, but GIC's are guaranteed and are not dependent on any "market". The only risk you face is currency risk. If your currency goes up in relation to the country you are investing in you may not make as much as you expected.

Living Legacy's Inc. offers returns guaranteed by insurance companies. There is no $60,000 limit. Unlike GIC's, the returns are tax advantaged or even tax free.

For more information on high paying GIC's and the Living Legacy's investments call 1-877-269-0950. You can download the information package from: http://www.netman-ecommerce-guru.com/life1

How To Make A Hefty Profit From Investing In Bonds

Most people know that bonds can be a safe place to invest but if you know what you are doing you can get returns competitive with stocks. Here are some things to keep in mind when investing in bonds:

What is the most profitable type of bond?

Government bonds include Federal, provincial and municipal bonds. Federal bonds are considered the safest so they generally have the lowest return. Provincial bonds pay better than Federal bonds and Municipal bonds pay the best interest rate. I don't know how much safety you need but consider how unsafe municipal bonds would be when they are issued by a major city...In North America I'd say it is pretty safe to invest in any city. If you are used to buying federal government bonds, this is a quick and easy way to increase your returns.

Foreign bonds offer another lucrative opportunity you may not have considered. Some countries offer fixed interest returns for bonds that are better than many equity mutual funds. Risk factors include political and economic forces as well as relative currency fluctuations. If the political and economic climate is stable you can make good money if the value of the currency issuing the bonds is increasing relative to your own currency. Political and economic instability makes it difficult to predict how the rates will be affected by world events so it is best to shy away from countries that are not stable.

How to buy a profitable bond:

Buying a bond is not a straight forward decision. The actual rate of return you get can vary with the price you paid, face value, coupon rate, months to maturity and market rate when you sell. Calculations can get pretty complicated if you want to factor in all the variables. This calculator will help you simplify the decision by giving you numbers, charts and graphs to compare the value of one purchase with another. http://www.calcbuilder.com/cgi-bin/calcs/BON15.cgi/FinanCenter

Pay particular attention to the term of the bond. Short-term bonds mature in 1-3 years, medium term bonds mature in 3-7 years. Long-term bonds mature in 7 or more years. The longer the term the more money you stand to make or lose quickly. Small changes in interest rates can make a big difference in the market value of your bonds. This game is for alert investors who are willing to do the research and make quick decisions. This calculator will help you figure out the best time to sell: http://www.calcbuilder.com/cgi-bin/calcs/BON3.cgi/FinanCenter .

A special opportunity for the alert investor:

Convertible bonds offer another little known opportunity. You can buy into the safety of a bond and if and when market conditions are right you can convert them into stocks for a hefty profit. This calculator will help you decide whether it is worth converting the bond: http://www.tradersclub.com/traderstools/calculators/investment.shtml

Another simple, secure investment:

These strategies are for people who are willing to put in the time and effort to make the most of their investment. If you are one of the many people who are so tied up in your own business that you don't have the time or energy to do justice to a proper bond investment strategy you may consider Living Legacy's Inc. They offer a solid, guaranteed investment with returns up to 54% over five years. For more information call 1-877-269-0950 or download the information package from: http://www.netman-ecommerce-guru.com/life1 .

Is There Such A Thing As A Safe Investment Anymore?

The temptation of getting high returns "without a lot of risk" has been irresistable for people looking to save for their retirement. Investors poured billions of dollars into the stockmarket on the basis of optimistic predictions. Unfortunately, several major and minor crashes have destroyed the savings, hopes and dreams of millions of people.

Investors have been searching desperately for a safe, solid investment that provides a reasonable rate of return. Following are some of the your options, if you want to keep your money safe and still make some money:

• bonds
• gic's
• income trusts
• dividends
• equity mutual funds
• bond funds
• dividend funds
• balanced funds
• segregated funds
• life legacy portfolios

How many of these investments are you investing in?

You might be surprised to see equity mutual funds in this list. Equity stocks are supposed to be "risky".

In reality, all investments have some element of risk. The trick is to put together a "portfolio" that allows you to make money every year.

If you try to predict the market you will be wrong nine times out of ten...just look at the record of the so called "experts". The bulls and bears will take their toll.

You need a strategy where you combine different types of investments so you come out on top consistently. You need to earn a net profit every year.

Some investments are known to provide a high return. Some are known to perform well in a bad economy. If you set up your portfolio to take advantage of the characteristics of each type of investment you can win every year regardless of challenges in the economy, stock market or politics.

Whereas all of the above investment options provide some level of safety of capital, viaticals offer an iron-clad guaranteed return on investment. You can count on getting 33%, 46% or 54% return on your investment...guaranteed!

Many investments will give you a "fantastic" return and really get your greed juices flowing. But you have to keep in mind: the higher your return, the higher your risk.

Your portfolio should contain a mix of investments where a good portion of them give you a consistent return even in a bad economy.

A volatile market may be full of exciting opportunities, but a solid investment program based on life settlements, as offered by Living Legacy's Inc., provides a cornerstone in any portfolio.

If you want someone to help you put together a strategy for your portfolio please call 1-877-269-0950.

You can download the complete package regarding the Living Legacy's Inc. investment program at: http://www.netman-ecommerce-guru.com/life1

The Devastating Effects Of The Stockmarket And How You Can Avoid It

In the past fifteen years or so stock market based investments have gone through a real roller coaster. As the baby boomers started saving up for their retirement years, people were promised fast profits, then slow and steady profits and finally apologies when predictions didn't come true. The most reliable investment companies and advisors were helpless when the many stock market crashes came. Investors lost millions.

People were led to believe that it was impossible for anyone to lose money if they stayed in the market long enough. They were told about dollar cost averaging, resetting and balancing portfolios and even leveraging. At the end of the day, ten-fifteen years later, many investors would have been better off in a simple GIC type of account.

Today many people have been badly hurt because of stock market investments. They are unwilling to take any more chances with their hard-earned money. They can't afford to lose any more money and time...

The baby boomers are getting older. They don't have much time left to set aside funds for their non-earning years in retirement. Many people will be left in poverty despite their best efforts. Despite well-intentioned advisors and investment management companies, millions of people will not be able to afford a decent level of living during their "golden years".

This is the problem that Life Legacy's Inc. (LLI) set out to solve. There is now a safe, solid investment that does not depend on someone predicting the future.

The life settlement industry in the United States has been maturing for the past 13 years. Unfortunately, the way most companies work, you would need millions to be able to take advange of these investments. LLI has set up a simple structure that lets investors participate with as little as $10,000.

We will discuss more details about viaticals and how they compare with other investments in small chunks through this email series. For all the details please refer to the complete LLI package available at http://www.netman-ecommerce-guru.com/life1 . If you are getting this email directly from LLI, you would have received the complete package as an attachment in the introductory email.

Please feel free to pass on this email to the people who you consult with when making investment decisions. If you would like someone to personally come and explain how it works please call 1-877-269-0950.

Neeraj.

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