1. Your Questions About How To Invest In The Stock Market
On Your Own
David asks…
How many of you out there bought Gold to keep from losing all
your money just in case of a market crash?
Times were very good for many Americans in the mid- to late-1920s: the stock market had
grown exponentially -- driven, in part, by a frenzy of investing which sent stock prices well
beyond their true value. In 1929, the frenzy ended. Black Tuesday started a stock market
crash which ultimately led to the Great Depression. By 1933, the demoralized nation looked to
Washington, D.C. and President Franklin D. Roosevelt for salvation. Seeking to inflate the
dollar in an effort to combat the depression, the United States government issued an order
confiscating gold bullion from American citizens under threat of fines or imprisonment. There
were certain limited exceptions. One of the most notable exceptions was that Americans could
continue to own:
"gold coins having a recognized special value to collectors of rare and unusual coins."
You can view the Executive Order and read the terms of confiscation by clicking on the
highlighted graphic.
Following confiscation, in 1934 the government devalued the dollar and raised gold's value by
nearly 75%. Many of the gold coins which were confiscated were later melted.
Rare coin collectors, exempt by the gold confiscation profited from the confiscation, melting,
and price revaluation in two important ways. Their coins gained value because:
The price of gold increased from $20 per ounce to $35 per ounce.
Official melting of the confiscated gold coins lead to greater scarcity for those coins exempt
from confiscation.
http://www.goldline.com/government-gold-confiscation
As you can see nothing is safe when the Federal Reserve causes a stock market crash on
purpose. We will all lose everything.
The Government seized it all lmao.
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2. Steve Winston answers:
Gold did OK . Silver even better because of the shortage . The real long term money as far as
percentage is actually Muscle cars ....
Paul asks…
How can you blame Obama because you lost money in the stock
market?
If you weren't watching the trends and making poor investments that is on you. How many c0ns
thought to invest in Ford when talk about GM going down the tubes first started? There was a
great deal of money to be made in the stock market in those days.
How can this be anyone's fault but your own for complaining instead of watching and investing
wisely.
@he Republic of Texas - your analogy in incorrect...we started with little, very little, we never
took profits we reinvested....you have to watch the trends and listen to the financial news, it is
not for the faint hearted.
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3. Steve Winston answers:
Almost no one who put money in the market after Obama became President lost money. You
have to be really unlucky to lose money in a market that has gone up 50%.
Http://finance.yahoo.com/q/bc?s=%5EGSPC+Basic+Chart&t=5y
Daniel asks…
Investment ideas for starting your own freelancing business,what
is in demand money making opportunities in?
California now?was throwing some ideas around on how to make money i tried the stock
market a while ago stock crashed and i lost everything so not trying that again there is land i
suppose you could purchase but then the value could go down,start up company's what is hot
right now,what can generate money fast?I was thinking of investing money in my own
freelancing business i want to work for myself,but what products/services are in high demand in
California,what could i make a success?
Any ideas,suggestions,advice appreciated thanks!
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4. Steve Winston answers:
Go to elance.com and you can find thousands of freelance jobs available. One hot spot is doing
anything for websites and blogs. If you can write content you can sell it to blog owners. If you
can design sites, you can sell those services too. If you can learn how to do SEO work for
website owners, you can also sell those services. Writing is the easiest and you can get paid
about $10 an hour for your services.
Of course, there are always more creative ways to freelance. Figure out what you're best at and
try to utilize those skills. Do a search for "freelance" or "sell my articles" to help you find some
ideas to get you started.
Mark asks…
Is it un-patriotic to invest overseas?
Some people say that you should buy goods and services from your own country. It helps the
economy of your own country. For example, you keep the money that you earned from US
consumers and spend it on US companies. People say that we should buy American so that we
don't keep making China richer and richer. Eventually, if we keep spending money in China,
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5. they will have a bigger economy than the US and the US may cease to be a superpower. Or at
least the US will have to share a spot at the top of the podium. So buying American goods is
patriotic.
On the other hand, economists would argue for free trade and how it helps everybody. The
lower prices we get by spending goods in China helps our standard of living. It helps poor
people afford clothing for their children at an affordable price. So buying non-American goods
helps America.
My question is, what about investing in foreign stock markets?
On the one hand, you are investing capital to a foreign company and helping another country
compete better against your own country. Giving money to another country helps those
countries knock America off of the superpower list. Maybe it is un-patriotic to invest in other
countries.
On the other hand, you are taking the money that you earn from overseas investments and
spending it in America. So you are basically using an overseas business to bring money to the
US. Maybe it is patriotic to invest overseas because you are using foreign companies' success
and bringing it back to the US.
So, is it un-patriotic to invest in stock markets overaseas or not?
Steve Winston answers:
If you are inclined to think that buying a Toyota is unpatriotic in spite of there being more
American content in a Maryville car than in a Detroit car, then you will most likely see money
transfer to make overseas business more competitive as unpatriotic, as well.
There actually is a problem with international investment - technology transfer. In the early and
mid 90s, it was things like whatever Ford Aerospace turned into teaching China how to launch
satellites because they couldn't get shuttle launches. The list goes on.
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6. Nancy asks…
How do I invest through a company?
First of all, I want this to be 100% legal, so any advice given I will also be speaking with a
lawyer in regards to the advice. Here's the situation:
I have been investing my own personal money in stocks all by myself for the last 8 years. I
have had steady gains, but I feel overtaxed from my gains. I have read that it is possible to start
a corporation solely for the sake of holding your shares to avoid the excessive tax charges. If
this is possible, and there is a LEGAL way to do it, I would like to know where to start so I can
research the idea. My earnings from my job are relatively low, in fact, less than what my stock
portfolio makes, so it could help me out a bit. Here are the things I am considering:
Can I start the corporation in another state?
Does the type of corporation matter? (is this dependent on state?)
Is it possible to donate some of my earning to a charity?
If the value of my corporation gets bigger could it be traded on the stock market?
Steve Winston answers:
Why not just open a Individual ROTH 401k? Etrade has them, you can put away $16,500 a year
of post tax dollars and NEVER face tax on gains or Dividends, you can later if you want, roll ALL
of that into a Roth IRA.
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7. Sandra asks…
Good ideas on how to invest 1000?
I already own a computer repair shop and i was thinking about ways to invest 1000 dollars. I
have been thinking about installing survellience systems and could invest that thousand into
adding the new service. But since i live in a small town i don't know how well it would pay off. I
also put thought into taking a chance on the stock market but I don't even know if you can do
anything with a thousand. If you guys have any ideas on services i could add or other ways i
could invest a thousand dollars, your help would be much appreciated.
Steve Winston answers:
To properly answer your question, we need to know your time horizon for this money. Is it for
retirement or something 10-20 plus years in the future? Then, the past has shown, the stock
market is the best way to go. (No one knows if future results will be as good as past returns).
For only $1k to invest, imo the best way is with a low cost, no load well diversified mutual fund.
The only low expense, no load one I know is Vanguard's STAR Fund. Check them out at
www.vanguard.com.
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8. Short term? 5 years or less? Want safety? Then a CD would probably be best. Check
www.bankrate.com for the highest FDIC insured CD rates in the nation.
Robert asks…
Personal Finance...........?
1. Match the following words to its correct definition.
A. General and progressive increase in prices
B. Investment in which you are loaning money for a certain time period to the issuer
C. Individual retirement account in which a person can set aside after-tax income up to a
specified amount each year, earnings are tax-free, and tax free withdrawals may be made after
age 59 1/2
D. Distributions of profit a company pays you because you own stock in that corporation
E. Supplemental retirement system in the United States
F. Individual Retirement Account
G. The amount of money you make on an investment in relation to the amount of time your
money is invested stated as an annual percentage
H. Quick and easy way to estimate how long it will take for you to double your money
I. Type of tax-qualified deferred compensation plan in which an employee can elect to have the
employer contribute a portion of his or her cash wages to the plan on a pretax basis
J. Retirement plan for certain employees of public schools, employees of certain tax-exempt
organizations and certain ministers
K. An exchange where security trading is conducted by professional stockbrokers
L. The age at which someone stops working permanently
M. Asset purchased for profit
N. An arrangement to provide income to people when they are no longer earning income
O. Collection of financial securities (stocks, bonds, cash) that is managed by a company or a
person on behalf of many investors
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9. Rule of 72
Dividend
Mutual Fund
Bond
Stock Market
Rate of Return
Inflation
Pension
Retirement
Social Security
IRA
Roth IRA
401K
403b
Investment2.
How do mutual funds reduce risk?
A) They invest in stocks
B) They provide investment diversification
C) They use an investment manager
D) None of the above
3. Your grandpa is 62 and asks you if he is eligible to collect Social Security. What do you tell
him?
A) He could collect his full payment now.
B) He could have started collecting at age 59 1/2.
C) He can receive reduced payments now.
D) None of the above.
4. Which type of account is usually used when employees can have a matching contribution
from their employer?
A) Roth IRA
B) Traditional IRA
C) 401k
D) 403b
5. In the future, you and your friends plan to receive Social Security after you retire. At what
age can you currently plan to receive full benefits?
A) 59 1/2
B) 62
C) 65
D) 67
6. Which type of individual retirement account should you choose if you want your contributions
to be tax deductible?
A) Roth IRA
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10. B) Traditional IRA
C) 401k
D) 403b
7. When you reinvest dividends,
A) you will receive them by check
B) you will receive them by direct deposit
C) the dividends are deposited into a Certificate of Deposit
D) the dividends are used to buy more shares of stock
8. Bonds are known as
A) fixed income investments
B) equities
C) dividends
D) no load mutual funds
9. When you purchase stock in a corporation
A) you are loaning money to the corporation
B) you are technically becoming a part owner of that corporation
C) you do NOT earn the right to vote on the direction of the company
D) you have to own the stock for at least one year before you are allowed to sell it.
10. Which of the following is the oldest measure of the U.S. stock market and the most widely
used indicator of stock market activity?
A) The NASDAQ
B) The S&P 500
C) The Dow Jones Industrial Average
D) The Russell 2000
11. The total value of the securities a mutual fund owns divided by the number of shares
outstanding is known as the mutual fund's
A) Face Value
B) Net Asset Value
C) Market Value
D) Yield
12. Mutual Funds called "load" funds charge a high flat fee whyou purchase the fund or sell the
fund.
A) True
B) False
13. TD Ameritrade is an example of a full-service brokerage company.
A) True
B) False
14. Treasury bonds are considered to be more risky than owning stocks.
10 / 14

11. A) True
B) False
15. A Roth IRA is beneficial because your withdrawls are tax-free.
A) True
B) False
16. IRA stands for Important Retirement Assets
A) True
B) False
Steve Winston answers:
That's a lot of questions. If you care to email me any particular ones you are having trouble with,
I'd be glad to help you. Or, if you email me your answers, I'd be glad to check them over for you.
Good luck.
Helen asks…
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12. Is it true that many American investors made lots of money off of
investing in Nazi related companies?
which companies would have been bringing the most large sums of money to those who
invested in the 1930s? and how this changed after Hitler Attacked Poland if you know?
also, did Germany itself have investers in their own stock market in Frankfurt..(was this an
active stock market during the Nazi period?) that made lots of money on WWII? or how one
could invest in German armanments or in the Autobahn, etc?
please explain what you can
why Hitler would have allowed this,,since he was against the "world jewish captilists" as he
referred to them in his speeches ?
please explain what you can
thanks for your answers!
Steve Winston answers:
Here are a few that contributed up to and including 1945
SKF of Philadelphia
Standard Oil
IG Farben
Du Pont
IBM
ITT owned 51% of Fokker Wolf up to 1945
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13. Coco Cola they developed Fanta in Germany
Ford BM Chrysler Westrick, Texaco
Standard Gas & Electric
The International Harvester Company
Herman Metz, a director of the Bank of Manhattan, controlled by the Warburgs.
The Rockefeller Chase Bank remained Open in Paris up to 1944 doing Business with the Nazis
Moreover, American assistance to Nazi war efforts extended into other areas.17 The two largest
tank producers in Hitler's Germany were Opel, a wholly owned subsidiary of General Motors
(controlled by the J.P. Morgan firm),
the Ford A. G. Subsidiary of the Ford Motor Company of Detroit. The Nazis granted tax-exempt
status to Opel in 1936, to enable General Motors to expand its production facilities.
General Motors obligingly reinvested the resulting profits into German industry.
Henry Ford was decorated by the Nazis for his services to Nazism. (See p. 93.) Alcoa and Dow
Chemical worked closely with Nazi industry with numerous transfers of their domestic U.S.
Technology. Bendix Aviation, in which the J.P. Morgan-controlled General Motors firm had a
major stock interest, supplied Siemens & Halske A. G. In Germany with data on automatic pilots
and aircraft instruments. As late as 1940, in the "unofficial war," Bendix Aviation supplied
complete technical data to Robert Bosch for aircraft and diesel engine starters and received
royalty payments in return.
Jenny asks…
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14. How do i get started on learning how to invest?
I'm 14 and have been interested in investing for a while. I own a few CD's and bonds, but i don't
really know how they work. I just know i get interest which = more money later.
But i want to get into the good stuff now, and actually learn how stocks, CD's bonds, mutual
funds, etc. work. Especially in stalks:
What are the key things i need to know?
What are your personal tips?
I'm playing this online stock challenge too and it helps, but so far, i have just been buying
random stocks and i lost like 2 thousand dollars....so i started over
so this time, i want to play the game like its the real stock market, and make a profit by not
random guessing, but pure research. What should i look for?
I also dont want to be a broker.
....they are brokers cause they are always broke. bad pun, but get it??? haha
Steve Winston answers:
Start shopping for a good financial advisor, gather a list of questions and go a few free
consultations. This should give you a starting point for creating a plan for investing. If you want
to become a broker yourself start studying personal finance (income, savings and investing as
well as tax). Get information on your series licenses. Your young enough that you should be
well on your way to a good start at 18.
Good Luck
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