Summary of White Papers Currently Available

     1. Take Control of Your Financial Future

     2. The Enlightened Investor Dictionary of Investment Terms

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1. Take Control of Your Financial Future

The goal of this white paper is to develop a well-informed class of investors who apply sound decision-making principles based on confidence in their understanding of how the market functions.  The paper presents an investment approach that encourages wealth-building in a responsible way that minimizes risk and maximizes return.  

The papers emphasize the importance of educating oneself and taking responsibility for oneís own financial future.  It also discusses the importance of understanding oneís risk tolerance.

It describes the key elements that drive an investorís success or failure in the market.  These include overall economic conditions, whether the overall market is rising or falling and the importance of  fund sectors.

It also provides a historical perspective of which classes of mutual funds have performed well during periods of bull and bear markets.

   White Paper ($25.00 retail plus shipping and handling)

   eWhite Paper ($20.00 retail. E-mailed to user or downloadable from web site)

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2. The Enlightened Investor Dictionary of Investment Terms

The Enlightened InvestorTM Dictionary of Investment Terms is the first in a series of books that emphasize the importance of educating yourself and taking responsibility for your own investment future. The goal of these investment books is to develop a well-informed class of investors who apply sound decision-making principles based on confidence in their understanding of how the market functions.

As you begin your investment education, however, you will quickly become discouraged if you donít first develop an understanding of the terminology used to communicate in the investment world.  If you donít understand the language of investing, you will never arrive at your goal of financial independence.

The first step is understanding the language that investors and financial advisors use so that you can communicate effectively with those who can help you, and do the type of research that is critical for your investment success. The Enlightened InvestorTM Dictionary of Investment Terms is a concise, thorough glossary of investment terms that you will refer to again and again as you pursue your goal of financial independence.

The Enlightened InvestorTM Dictionary of Investment Terms is an e-Book, ready to download immediately. It's available both in the universally-accepted Adobe Acrobat and Microsoft Word formats, so reading and printing is a snap.

   White Paper ($25.00 retail plus shipping and handling)

   eWhite Paper ($20.00 retail. E-mailed to user or downloadable from web site)

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Examples of  Definitions Found in the  Dictionary of Investment Terms

Selling Short
Selling short is an investment strategy where an investor sells stock that he does not own.  The investor is assuming that the price will decrease in value and he will be able to buy it at a lower price.   Essentially, the investor is betting against the stock. 

In order to execute this strategy, the investor first borrows the stock from his broker, sells it and receives the money from the sale. The investor then waits for the stock to go down in price, all the time paying interest to his broker on the borrowed money.  When the stock does go down in price, the investor would buy it, and pay back the broker for the original loan and any interest accrued while the investor waited to buy the stock. Buying the shares back is called covering the short position. 

For example, you borrowed 100 shares of IBM on January 1 and sold it for $80.00 per share. On June  30, you purchased 100 shares of IBM at $75.00 per share. You've made $500 minus commissions on the sale, the purchase and the interest on the loan for six months.

Call Options
A call option is an option contract that gives the holder (buyer) of the option the right, but not the obligation, to buy the specific securities at a specified price before the expiration date of the option contract.

The writer (seller) of the call option has the obligation to sell the specified securities if the holder chooses to exercise the option.

Put Options
A put option contract is a contract that gives the holder (buyer) of the option the right, but not the obligation, to sell the specific securities at a specified strike price before the expiration date of the option contract.

The writer (seller) of the put option has the obligation to buy the specified securities if the holder chooses to exercise the option

Annuities
An annuity is a contract between an insurance company and
a policyholder.  The annuity provides for periodic payments to the policyholder in return for an investment that the policyholder makes in a single lump-sum payment or in multiple payments over several years. 

There are two types of annuities:

Fixed Annuities
A fixed annuity provides a guaranteed, fixed income during the annuityís payout phase.

Variable Annuities
During the accumulation phase, a variable annuity allows the policyholder to determine how he wants to invest his money among the various options provided by the insurance company.  Based on the success of these investments the policyholder receives a variable income during the payout phase.  While there is downside risk with a variable annuity, over the long run the variable annuity would normally pay a higher return than the fixed annuity.

 Based on when you wish to begin receiving your annuity payments, there are two options:

Immediate Annuities
With an immediate annuity you invest your money in a lump-sum payment, and in return receive an income stream for the rest of your life beginning immediately.

Deferred Annuities
With a deferred annuity you invest your money in a lump-sum payment or in a series of payments extending over multiple years.  In return you receive an income stream for the rest of your life beginning at some date in the future.

A deferred annuity has two phases, the accumulation phase during which the policyholder is paying into the annuity, and a payout phase during which the policyholder withdraws his money.  During the accumulation phase the annuity grows untaxed.  During the distribution phase the accumulated money is paid out in a series of payments or paid in a single lump sum. 

Exchange Traded Funds (ETFs)
Exchange traded funds (ETFs) are investment instruments that allow investors to buy shares of an entire portfolio of stocks via a single security.  ETFs have characteristics of both mutual funds and stocks.  Similar to a mutual fund, ETFs represent ownership in a unit investment trust that holds the stocks that make up the ETF.   But unlike mutual funds that may be purchased only at the end-of-day price, ETFs are traded throughout the day like a stock.

ETFs provide a simple and effective way to invest in the U.S. and foreign equity and bond markets. The American Stock Exchange (AMEX) lists more than 100 ETFs covering a broad area of industry sectors, stock indexes, U.S. Treasury bond indexes, corporate bond indexes and international stocks.

The following are some of the best-known ETFs: 

Diamonds
Mirrors the Dow Jones Industrial Average (DJIA). The ticker symbol is DIA.

SPDRs  
(Standard & Poorís Depositary Receipts):
Mirrors the S&P 500 Index.  The ticker symbol is SPY.

QQQs
(Nasdaq-100 Index Tracking Stock):
Mirrors the Nasdaq-100 Index. The ticker Symbol = QQQ

Diamonds
Diamonds are an exchange traded fund (ETF) that allows investors to buy shares of an entire portfolio of stocks via a single security.  Similar to a mutual fund, Diamonds represent ownership in the Diamonds unit investment trust that holds the 30 stocks that make up the Dow Jones Industrial Average (DJIA).  But unlike mutual funds that may be purchased only at the end-of-day price, Diamonds are traded throughout the day just like stocks. 

The American Stock Exchange (AMEX) introduced Diamonds in January 1998 with a stock symbol of DIA.  The purpose of Diamonds is to allow investors to track the performance of the Dow Jones Industrial Average (DJIA) without buying the 30 stocks that make up the DJIA.  Diamonds pay monthly dividends and capital gains distributions once a year. Diamonds are intended to trade roughly at 1/100th of the DJIA. Thus, if the DJIA was trading at 10,000, the price of a Diamond would be approximately $100. 

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