The Dot Com Miner

Are you aware of the Child Trust Fund and its benefits? a low number of parents seem to be aware of the fact that all infants are given a free £250 voucher from the State to place in a Child Trust Fund. The voucher may be invested in any one of three kinds of CTF account, Stakeholder - a shares-based account thatchanges into cash, a savings account or a shares account. It is an excellent way to prepare for the future requirements of a young person

Scottish Friendly is an accredited provider of the Child Trust Fund The State is eager for the public at large to have access to Stakeholder accounts and this is the type of account that we supply. This means that:

Investments are paid into Scottish Friendly’s Managed Growth Fund, which hopes to provide strong growth potential

It invests in part in shares to take advantage of potentially higher returns over 18 years,compared to a cash deposit account (although the value of shares can
decrease as well as go up whereas capital would be protected in a deposit account)

It comes with a low ‘Stakeholder’ funds charge of just 1.5 percent per year

When a person reaches the age of 18 the child will get a lump sum, wholly free of Capital Gains and Income Tax under prevailing legislation

It’s affordable - additional payments can be placed in the account from only £10

One of the great attractions of the Child Trust Fund is that anyone - parents, grandparents, aunts and uncles, friends - if they want can contribute to the Fund to a maximum of £1,200 per year to help boost the child’s Fund (once added, this money may not be withdrawn).

In a nutshell our Stakeholder account offers a good balance between possible high returns and a reduced level of risk. There is also the additional assurance that our account is in accordance with with the Government’s stakeholder criteria. However this does not mean that returns are guaranteed or that Stakeholder accounts are suitable for everyone. Bear in mind that the value of shares in the Managed Growth Fund (where your Child Trust Fund money is placed) can fall as well as go up and would not be guaranteed.

Only infants who were born on or after 1st September 2002 are permitted to open a Child Trust Fund. If you have older kids born before the 1st of September 2002 who are not eligible you could consider saving for them with a Child Bond - it’s a tax-free savings plan which is intended for long-term growth.

It is evident that saving for a child.your children is a sensible means of preparing for the future.

The word ‘diversity’ is a unique one. It can represent many things, depending upon its context. To work in a diverse workplace is to have all genders and ethnicities represented. In another example, people strive for diversity within their leisure activities, while at the same time seeking consistency (yes, that is strange).

Used to describe your financial affairs, diversity is equally important, and I’d be happy to share why this is so. Have you ever met someone who said, “I invest all my funds in small tech stocks?” I have, though they’re not as vocal about it these days! The same can be said for those who favor healthcare, real estate, junk bonds, emerging markets, or their bedroom mattress! Every segment of the market has short-term and long-term cycles and fluctuations, and no one is immune to them.

I favor nothing! No segment of the market is more or less importantthey all have a role. I manage assets like I feed duckseveryone gets some, but no one gets too much. Handled mathematically and reviewed regularly, there is, in my opinion, no better way to approach the issue of long-term growth.

(If you happen to have any fat ducks in your portfolio, I would recommend you put them on a diet.)

© 2005 Matthew S. Clement, All rights reserved

Matthew S. Clement is a financial planner and investment advisor representative with Financial Network Investment Corporation, member SIPC. He provides holistic wealth management and retirement planning to individuals and businesses. He can be reached in New York at (845) 942-8578, or by email: ClementM@FinancialNetwork.com

“Join our program and retire in 3 months…” yeah, right.

We all want to get to a place where we have ongoing, hands-off income that continues without us having to work for it. These ads play into that desire by offering us the promise of “easy continuing income.”

The reality is often far from the sales pitch.

The first step in developing an ongoing, residual income is to dispel some of the myths surrounding the sales hype.

Here are some of the most common myths about creating a residual, ongoing online income:

Myth One: Put up a Website and Sit Back and Collect the Checks.

Those of us who have run Internet businesses for a while can tell you: Making a good living on the Internet requires marketing, customer service and order fulfillment. Either you have to do it yourself or you need to hire someone to do it.

Either way, having a website and selling your own products is often far from the “laying around on the beach while collecting your checks” image.

Myth Two: MLM/Networking Income is Residual Income.

Almost always a part of the sales pitch in networking is “creating residual income.” While that is *possible* with MLM, it is very difficult to maintain. Here’s why…

MLM income is built on three basic factors: new purchases by retail customers, the recruiting of new *wholesale* customers and the ongoing purchases by both groups.

In order to have an ongoing “residual” income, you need to recruit, train and motivate a sufficient number of *leaders* who will then continue the process in growing numbers.

This is rarely the case.

Instead, top leaders have found it is easier to build a large list of MLM “junkies” who they then take into one program after another. If you stopped joining new programs, your income would also dwindle within a few months.

Myth Three: Just Build Your Business and Hire People to Run It for You.

This does work, but it is often more of a nightmare than a dream.

At various times I have had anywhere from 0 to 15 employees. I have had many friends and clients with much numbers up to 1,000 employees. We all have the same opinion: Unless you have enough employees and profits to hire top quality managers, employees are a constant headache.

If you DO build a big enough, profitable enough, business and if you have the right personality, then building your business and hiring people to run it is a great idea.

Myth Four: Developing A Residual Income is Easy.

I don’t want you to fall for this one, either. Developing a residual income will take some perseverance. The steps to getting it done are not difficult, but it requires one thing many people will not put in–consistency. If a person does the right things, day after day, they will create an ongoing, growing income. If they try today, then one day next week, then one day a month later, they are unlikely to ever get there.

Developing a residual, on-going, hands-free income is worth the effort. Avoid trusting in these four fantasies, get ready to work and you can have a supplemental income in no time at all. Keep it up long enough and you can eventually retire.

Kevin Bidwell owns http://www.All-In-One-Business.com and has just released a new report on creating a residual income. You can claim your copy here - Residual Income Report