Posted by Ryan on July 16th, 2008 in Taxes and Fees

Not all investments are the same. Buying 10 shares of Microsoft through your online brokerage account is probably a lot cheaper than buying the same exact shares through an investment firm. The lower the investment costs, the more money you make. It is as simple as that.

There are two big reasons that the same exact investment can vary in cost:

1. Fulfillment of order. If you place an order to buy your shares at the current market price through your online brokerage account, that order will get filled immediately. If, however, you call your broker, there is a process to fill your order. By the time your order is actually filled, the share price could have already skyrocketed.

Solution: Place limit orders, which allow you to name the price that you want to buy at. It will be filled when there is a seller at that price willing to take your offer.

1. Fees. Just about any time you buy or sell a stock, option or mutual fund, there is a fee assessed in order to place your order. Since online brokerages are completely automated, overhead costs are low. This savings is passed on to you. Your investment firm may charge a percentage of your investment. For example, most online brokerages charge about $10 no matter the size of the trade, but some firms charge 1.5%. That means a $30,000 investment would cost you $450, but the same exact trade would only cost $10 through your online account.

Solution: Do your own trading and eliminate fees entirely with Zecco, which offers 0% stock trading. They make up their costs with advertising revenue.

Not only can excessive charges cost you thousands of dollars, they are unnecessary. Using an online brokerage firm can eliminate these charges and can be more convenient.

Millionaire Money Habit: Investing is not just about what you invest in, but how you manage your assets as well. Keep your fees low and your losses to a minimum, and you can reach your financial goals at a much faster rate.

Be the First to Comment

Posted by Ryan on July 14th, 2008 in Entrepreneurial Mindset

I’ve always enjoyed watching movies about money. Even though most of them are more about greed than actually building assets and making money, I still find them very motivating.

Here are 12 of my favorite movies about money. Ironically, most of these are also pretty violent movies.

1. Wall Street
2. Glengarry Glen Ross
3. The Sting
4. The Godfather
5. Trading Places
6. Indecent Proposal
7. American Gangster
8. Casino
9. There Will be Blood
10. Ocean’s 11 and the sequels
11. Jerry McGuire

. . . and quite possibly one of the worst movies ever, but I still get a kick out of is Boiler Room. Remember this scene?

Warning - this clip has a lot of profanity

Millionaire Money Habit: While I don’t recommend crime and killing as a means to make your first million, these movies make for great entertainment and can provide some motivation.

What are your favorites?

3 Comments

Posted by Ryan on July 11th, 2008 in Entrepreneurial Mindset

It’s absolutely amazing what companies get away with. Even with strict HR laws and Sarbanes Oxley, the behavior and decisions made by thousands of companies and millions of employees cannot be governed.

Managers can be verbally abusive, cross the personal/professional line, and make demands that just are not legal. Companies make decisions to roll out products or programs that don’t comply with business standards, but they know that their business is just a spec of dust in the grand scheme of things. Employees misbehave and companies conduct inappropriate business practice because they believe they have to in order to increase profits and survive - and chances are they will get away with it.

The unethical practices that run rampant in business only seem to swell. As employees and companies get away with their poor behavior, they push the limits to see just how far they can go. At a point, what was once “wrong” becomes everyday business as usual.

As an employee, these actions may cause you to make some tough decision. Not only may you be asked to do unethical things, but you might have to stop and ask yourself if you want to work for this type of company.

• Do you want to get caught-up in breaking the law because you were pressured into doing things?
• Do you want to work for a company you do not trust?
• Are you damaging other people’s lives by helping your company succeed?
• Do you deserve to be treated in a particular way?
• Should you blow the whistle or file HR complaints?

As hard as it can be to secure a great job, there are times when you have to think about firing your boss and improving your life.

Millionaire Money Habit: A high paying job does not give permission for your company to treat you or their customers unfairly and unethically. You are worth more than that. Stand behind it.

Be the First to Comment