Wednesday, July 19, 2006

Is Your Financial Planner Lying To You? Sports Investing Outperforms The Market Every Time.

Most Americans today invest in one way or another. They set up 401K’s, start college funds for their children, or actively invest through some type of brokerage house. In whichever manner they decide to save their hard earned money should be applauded. However when one invests they should strive for the best possible return on investment. That’s where the financial planner comes into play for a not so small, small fee. A financial planner should help you invest your money to achieve the best possible return on your capital.

My question to you, do financial planners really do there job? If we as clients pay them for there expertise, why do they tell us our best strategy must be to diversify and continuously reallocate. Most of the financial planners I’ve met don’t know a thing about the markets or successful investment strategies. They copy one another and pitch you with the same old quotes like sheep; “Diversify, Reallocate, Diversify, Reallocate.” Every once in a while they give you the same old “we need to sit down and go over your future insurance needs. Half of them couldn’t analyze P.E. ratios or tell you what’s a company’s ROA. The truth of the matter is financial planners don’t actually know anything about the market. They’ve been put on this earth to place you into mutual funds and allow someone else to pick your stocks. For this service they usually take about 1% of your money.

Why, if we pay 1% of our money to these people do they not provide us with the best possible advice? We don’t get their best advice because it’s not profitable for them. If your financial planner told you SPORTS INVESTING would yield you 1000’s of percentage points more than your returns from the stock market, with less risk, and you didn’t even need to pay him to do it, he would be out of a job in a day. The truth of the matter is it would and you can. Most financial planners are terrified of the day their clients wake up and realize they don’t need them. If you don’t believe me, just stop in to your financial planner’s office one day unannounced, ask them a few basic questions about your portfolio and tell them you want to go over some concerns you may have. Watch them squirm, because the reality is they don’t bring any value to table what-so-ever. God for bid you mention to them you read somewhere that SPORTS INVESTING yields higher returns with less risk, they would throw a fit. They’re going to tell you sports’ gambling is too risky. Everyone who gambles always winds up losing in the end.

To be honest sports gambling is risky, but we’re not talking about sports gambling we’re talking about SPORTS INVESTING which is a big difference. Just like there’s a difference between the analysts on Wall Street and the guy at home trading stocks over the internet based off of a tip from his mailman. There’s a difference between sports gambling and a SPORTS INVESTOR. When a person is a professional sports investor, they’re making plays with relatively no risk involved. A SPORTS INVESTOR looks at things in a long-term perspective. They’re not making individual decisions from game to game. Rather, they’re looking at everything from an investor’s perspective and taking each play into consideration as an overall play to raise their return on capital. Most SPORTS INVESTORS incorporate various different strategies in to their regimen. They look at their bets in terms of risk vs. reward and build their bankrolls over time.

If this strategy sounds familiar it should. It’s the strategy of most successful investors, no matter what market they may be in. The problem with investing in sports isn’t the returns on investment; your returns are far superior to any other investment. It’s also not the risk involved with your plays, you incur relatively no long term risk with sports investing. Lastly it’s most definitely not your understanding of the subject matter; you almost always have a better understanding of what’s happening in sports over what’s happening with some company in Malaysia. The only issue with SPORTS INVESTING I’ve encountered stems from people having trouble grasping the fact that you can earn a living doing something you love. For more on how you can make a living investing in sports go to http://www.powerpositionbetting.com/.

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