Solving a Financial Problem

I make money from financing in Natural Resources.

Let me start with me telling you that I don't want you calling me any names. Don't call me arrogant or a braggart. I am trying to teach you how to make money in the coming financial markets.  Do you remember when I told you that the next up trend was coming in the market? Here is the last blog about the coming up trend in the market just in case you missed it. Click on the link below.

 

http://brokermakesyoubroker.blogspot.com/2014/12/my-investment-of-choice-is-still-bonds.html

Investing in Bonds

 

I saw signs that the market was in the capitulation stage. That is when you have the market going down 100 to 300 points per day and you hear from the news people that the world is coming to an end. This was the signal to tell you to "buy, buy, buy!" So I told you about it and I started buying.

 

I am retired so my investments make up a large part of my income. I spent over $200,000 this year just to survive.  So now I have to generate some income before I run out of money by age 65.

 

That is the reason why I started buying into the bottom of this market.

 

 

CLIFFS NATURAL RESOURCES

I bought 10 Cliffs Nat Res Inc. 5.700% due 01/15/2018 bonds, giving me 21.299% in interest per year until January 15, 2018. The Standard and Poor's Rating on these bonds is BB- and the Moody's Rating is B1. I buy bonds with a Standard and Poor's ratings between BBB+ and B-. They give the best interest with the least amount of bankruptcies.  This bond is right in the middle of my target rating bonds.

 

I spent $6,889.62 on this investment.  I plan to get on January 15, 2018, $10,000 in bond principle at maturity and ($57.00 times 10 bonds = $570.00 per year; $570.00 times 3 years and 3 weeks = $1,742.79 in interest over 3 years and 3 weeks but I had to pay the seller 259.67 plus $9.95 in commissions to the broker) $1,473.17 in total interest.  The bonds pay semiannually on January 15 and July 15.

 

Each bond cost $662.00 per $1,000 bond. I am making on this bond investment, $1.56164 per day.

 

In total out of this transaction I hope to have $12,010.38 over 3 years and three weeks.      

 

Cliffs Natural Resources Inc. is a leading mining and natural resources company. The Company is a major iron ore producer in the Great Lakes region and a significant producer of high-and low-volatile metallurgical coal in the U.S. Additionally, Cliffs operates iron ore mines in Eastern Canada and an iron mining complex in Western Australia. Driven by the core values of social, environmental and capital stewardship, Cliffs’ employees endeavor to provide all stakeholders operating and financial transparency.


Why am I telling you this?

 

If I did not tell you this, I would still make the money that I am telling you about if the company does not go bankrupt.  Most of you cry the blues when you see people living in big houses or have nice cars. You find out that most rich people get opportunities that you will never see or understand. They make far more money than you will ever have.  Why?

 

Because information about investing is handed down from generation to generation. No, they do not teach what I am showing you in school. No, they do not want to teach you what I am talking about in school. If you know what I am talking about and do it, you will buy less junk and start thinking about how to make money and become your own boss.  You will start thinking about how to make your children and grandchildren better off than you.  You will understand the benefit of becoming a corporate activates and put full communities in the job market making plenty of money.

  

Think back to what your family and your church is teaching you.  You ask your mother or your father about money and they will call you names like I was called, "Money Bags", "lover of money", or one that I heard today, "Money  is my god". 

 

The church tells you that, "it is easier for a camel to go through the eye of a needle than for a rich person to enter the Kingdom of God!", Matthew 19:24.  This gives people the idea that poverty is better in the long run and being poor and disadvantaged gets you into heaven. This directs people to have faith in the idea that it is better to complain about the system than to learn how to use the system. Here is the reason why the poor can't be helped!

 

So you got the idea that you are not suppose to talk about money and money is bad.  Many people are taught that exchange of ideas is bad so you and your family for generations stay financially retarded while others get better and wealthier every generation. You call it discrimination. I call it your stupidity.

  

You want better jobs for your children, better schools for your children, a better home and reliable transportation, well this is where it starts. You learn about money and how to invest it to make more money and take over part of the economy.  You do that and you will have more rights and they will be more respected than being poor with no rights at all.   




My Book; Building Wealth with Corporate Bonds

 

I told you many times about my last book published in 2003 called, "Building Wealth with Corporate Bonds." The price is $35.00. I am selling off my final copies of this book. After that, I do not plan to produce anymore.  Some of the topics enclosed are:

 

• Creating a Risk Policy

• Bull and Bear Markets

• What are Stocks and Bonds

• Corporate Bond Strategy

• Buying Corporate Bonds on Margin

• How to Place orders

 

 

You can buy a copy of my book by sending a donation of $35.00 money order to: Darnell L Williams

Building Wealth with Corporate Bonds

I/O Darnell L Williams

200 A Seneca Way

Havre de Grace, MD.  21078

 

I only have a limited amount of copies so order yours today. When they are gone, they are gone.  

My Investment of Choice is Still Bonds

Withdraw your money from the bank and buy stocks and bonds.

 

 

As I told you many times before, I made my money from 2008 to 2014 in Junk Corporate Bonds. I am smarter in 2014 than I was in 2008. This is why I am going to buy oil stocks first in this correction in this market. Then I am going to buy Junk Corporate Bonds.  I still hold corporate bonds giving me more than 15% per year bought in 2010.

 

I told many of you by email and Facebook since 2008 how you can make money in the stock and bond markets.  Some of you took my advice. Many of you did not and just called me names for telling you what you missed.

 

  Oil is about at its bottom. That means that it is about time to act.

 

 I told you what is about to happen. Now you can join the action or you can sit back and watch others take advantage of the financial situation. Don't tell me that I am a braggart when I make money and you don't. If you do, I will just laugh at you because you had your chance and you blew it.

Here is the link for a Buy and Hold investment plan using Oil Stocks. Click on the link below to review it.

 

A Picture of a Stock Certificate

 

http://brokermakesyoubroker.blogspot.com/2014/12/i-have-christmas-present-for-you.html

The Title: I have a Christmas present for you!

 

Floor of the New York Stock Exchange

 Now How About Bonds?

 The condition of the market is still excellent for the bond investor.  However, I would buy Standard and Poor's Junk bonds as high as "BBB" but no lower than "BB-." Here are examples in my opinion of what I would be buying.

The bonds below give interest as well as $1,000 at maturity. If you want the most safe Junk Bonds, look at this bond;

1.  TRANSOCEAN INC 6.375% due 12/15/2021, selling at $584.00 with an interest rate of 9.117% per year. Standard and Poor's Rating BBB-.

 Here are more riskier Junk Bonds with Standard and Poor's ratings of BB-;

1.  CLIFFS NAT RES INC CR SEN SR NT 18 5.700% due 01/15/2018, selling at $675.00 with a yield of 20.457% per year.

2.  CHESAPEAKE OIL FIELD OPER LLC SR NT 6.625% due 11/15/2019, selling at $700.00 with a yield of 15.594% per year.  

3. ATWOOD OCEANICS INC SR NT 6.5%20 6.500% due 02/01/2020, selling at $870.00 with a yield of  9.787% per year. This bond is a Standard and Poor's "BB" bond.

 Corporate bonds purchases must be done in a Regular Brokerage Account, not a Sharebuilders account.  

 

My Own Personal Bank

 

I am going to borrow money from my line of credit and buy bonds. That way I can get as much as 20% and pay the bank 5%. That means that I am going to make 15% off of the banks money. You can do the same if you want. That is if you have been following what I told you about -- keeping a good credit rating.



My Book; Building Wealth with Corporate Bonds

 

I told you many times about my last book published in 2003 called, "Building Wealth with Corporate Bonds." The price is $35.00. I am selling off my final copies of this book. After that, I do not plan to produce anymore.  Some of the topics enclosed are:

 

• Creating a Risk Policy

• Bull and Bear Markets

• What are Stocks and Bonds

• Corporate Bond Strategy

• Buying Corporate Bonds on Margin

• How to Place orders

 

 

You can buy a copy of my book by sending a donation of $35.00 money order to: Darnell L Williams

Building Wealth with Corporate Bonds

I/O Darnell L Williams

200 A Seneca Way

Havre de Grace, MD.  21078

 

I only have a limited amount of copies so order yours today. When they are gone, they are gone.  

 

Know Your Risk When Investing, Speculating, or Gambling

Financial Analyst and Activist Darnell L Williams

 

Here we go again with people calling me a "bragging, boasting, scruffy looking old man."  I shouted back, "Who you calling a scruffy looking old man?"

The reason why I talk about my investment successes and sometimes my disasters is because most people learn about finance from family members. That means they learn nothing at all since many families do not teach their children anything about finance. Public Schools tell you how to open a checking or savings account if you are lucky. Public schools are controlled by local banks. They tell you nothing about financial markets. They say, if you want to save, we will put you in high cost Mutual Funds.

 

So as the nation moves on, most people stay behind the financially educated. That is especially true with Black families. Most name calling directed at me comes from people in Black families because they were taught not to talk about finance. Then when they find out that they are behind in over all income vs. White families, they cry discrimination.

 Financial Education

Instead of learning from my blog, they call me names like what you see at the top of this blog. Now for people who want to learn high finance to help with family future purchases, read on.

 

Most brokers will tell you that junk bonds (sometimes call noninvestment grade bonds or High Yield bonds) are high risk investments. That is because they want you in open ended mutual funds, options, and annuities. Why? Because they can make more money off of you than individual stocks. They make very little from you if you purchase bonds.  So they tell the media that investors cannot make money off of bonds because they do not pay in a low interest rate environment. Junk bonds are very high risk and you have a good chance of losing money. The media, not knowing any better or because the brokerage firms are clients, tell you this propaganda.

 

 Well, here is what I am doing in this bad stock market environment. You know, this market that falls without warning , 100, 200, and sometimes 300 points per day.

 

The 6 month fall in the Oil Commodity Market.

362337AL1 | GTE NORTH INC DEB-G MBIA 6.73000% 02/15/2028. Purchase Price $775.95, giving me $136.89 (or +17.64%) in interest and appreciation since I owned them per bond, Standard and Poor's Rating is AA-. I bought them when they were in Junk Bond status. Now it is in investment grade. The company pays half of its interest on February 15 and half August 15.  

 

 

US Oil Refinery

I wrote this blog, click on this link to read it; 

http://brokermakesyoubroker.blogspot.com/2014/12/making-double-digit-gains-for-at-least.html,

"Making Double Digit Gains for at least 6 years"

 

on the same day I created this portfolio in the above blog. I bought these bonds in this portfolio on December 31, 2014. Today, January 15, 2015, my portfolio increased 1.595%. That is an increase of 1.595% in 15 days. If you annualized that increase it is 38.26944%.

In my IRA Account, I received a note today telling me that one of my bonds will be paid off early. That means that  I will get the remainder of what the company owes me on this bond on February 1, 2015. This is a Standard and Bond B-. It is a Junk bonds, giving around 12% Yield to Maturity.

CUSIP:	38121EAJ2
Security Description:	GOLDEN ST PETE TRANS
Interest Rate:	8.040%
Maturity Date:	2/1/2019

 

It was suppose to mature on February 1, 2019. I bought it in 2011. So I am crying all the way to the bank because I am missing out on 4 years of interest.

 

What is the risk that I am taking?

 

If you do not take a risk, you will anyway by default. 

The biggest risk that I am taking is the risk of bankruptcy of the companies that these bonds represents. There is a good chance that bankruptcy can happen.  It happened to me with Jamesway and A&P Supermarkets. When TWA went bankrupt in the 1980s, I got my money back plus interest. I am talking about "business risk" here.

    

What is the risk that you are taking with savings accounts?

 

The 2015 Hyundai Sonata ranks 1 out of 19 Affordable Midsize Cars.

 

Savings and investment is a matter of risk. What people do not understand is that it is purchasing power that you want, not cash per say! For example, I remember paying $12,000 for a fully equipped Hyundai Sonata in 1990. I just priced one today fully equipped and it cost $33,644. That is an increase of about $21,644 in 25 years. That is $865.76 or 7.215% per year increase. So instead of buying my car in 1990 and I had the patience to buy it in 2015, my money would have to increase by 7.215% to buy the same car. If I could not make that kind of money in 25 years then I would lose to car inflation. That is the risk that I could have taken.

 

Purchasing Power Risk may stop you from buying your home.   

This also means that if I wanted to be safe with my money like most people think they are doing at an average of 2.5% over 25 years, they would have lost purchasing power. This is why Bank savings accounts are not a good idea over time. The people's money is guaranteed by the Federal Government but purchasing power is not.   This is one reason why the average working person becomes poorer every year.  

 

 

Don't laugh, this may happen over night, if China calls in US Debt!

This is called "inflation risk" and since you made part of the money that you need you are also losing to "interest rate risk."     

My Book; Building Wealth with Corporate Bonds

 

I told you many times about my last book published in 2003 called, "Building Wealth with Corporate Bonds." The price is $35.00. I am selling off my final copies of this book. After that, I do not plan to produce anymore.  Some of the topics enclosed are:

 

• Creating a Risk Policy

• Bull and Bear Markets

• What are Stocks and Bonds

• Corporate Bond Strategy

• Buying Corporate Bonds on Margin

• How to Place orders

 

 

You can buy a copy of my book by sending a donation of $35.00 money order to: Darnell L Williams

Building Wealth with Corporate Bonds

I/O Darnell L Williams

200 A Seneca Way

Havre de Grace, MD.  21078

 

I only have a limited amount of copies so order yours today. When they are gone, they are gone.  

 

 

 

SLM CORP EDNOTES BOOK ENTRY FR 5.5% of 06/15/2029

Picture of Sallie Mae off of I-95 in Delaware

 

 

 

Let me talk to the people with less than $1,000 to get started with investing. Even if you don't have $1,000, you can borrow the money and make payments while you receive payments from SLM Corporation.  

SLM CORP EDNOTES BOOK ENTRY FR has an interest rate of 5.500% on $1,000. It is due on 06/15/2029. It is callable early at $1,000. This means for every bond that you buy, it can be called at $1,000.  So if you buy this bond at $815.00, you get $1,000 if they call the bond or if you keep it until maturity. The bond is rated by Moody's at Ba3. It is rated by S&P at BB. Fitch rates them at BB. No one has them on credit watch. The CUSIP No. is 78490FLE7. 

The bond sold recently at $815.00 for  $1,000 per bond. It pays $55.00 per year, giving a YTM of  7.640% until June 15, 2029. You, the investor can buy and sell this bond whenever you want.

 

 

This is an example of a Stock Certificate. A Bond Certificate looks similar. 

SLM Corporation, also known as Sallie Mae, together with its subsidiaries, operates as a financial services company specializing in education in the United States. It offers education loan options for undergraduates, graduate students, and professional students, as well as families with children in private K thru 12 schools; and banking products, such as money market accounts, high yield savings accounts, and certificates of deposits.

 The company also provides auto, tuition, life, health, travel, and renters insurance coverage for students, recent graduates, and young adults. In addition, its products and services include Upromise rewards, scholarship search and planning tools, private education loans, and online banking services.

 SLM Corporation is based in Newark, Delaware.

Get your financial act together as early as you can!

 

Darnell L Williams

I was talking to a Black woman not too long ago, telling her how she can improve her wealth.  She told me that she did not want to hear this "Pie in the Sky" crap.  She said no Black person can do what I was talking about.  So I started telling her what I have been doing for the last 40 years.  As you know, once I start doing that then I go from talking about "Pie in the Sky" to being a braggart.

 

I am not the only Black person talking about building wealth. Click on the link below, read and listen to what the Black Newspaper, the  "New Pittsburgh Courier Online" is saying about building wealth in the Black Community.    

 

http://newpittsburghcourieronline.com/2015/01/17/wealthyu-closing-your-personal-wealth-gap/?omcamp=es-npco-nl&utm_source=Sailthru&utm_medium=email&utm_term=Pittsburgh%20Subscribers&utm_campaign=Lifestyle

WealthyU: Closing Your Personal Wealth Gap

 

My Book; Building Wealth with Corporate Bonds

 

I told you many times about my last book published in 2003 called, "Building Wealth with Corporate Bonds." The price is $35.00. I am selling off my final copies of this book. After that, I do not plan to produce anymore.  Some of the topics enclosed are:

 

• Creating a Risk Policy

• Bull and Bear Markets

• What are Stocks and Bonds

• Corporate Bond Strategy

• Buying Corporate Bonds on Margin

• How to Place orders

 

 

You can buy a copy of my book by sending a donation of $35.00 money order to: Darnell L Williams

Building Wealth with Corporate Bonds

I/O Darnell L Williams

200 A Seneca Way

Havre de Grace, MD.  21078

 

I only have a limited amount of copies so order yours today. When they are gone, they are gone.  

 

 

 

 

 

Housing Problems Because of Education not Race

Welcome to downtown Havre de Grace, MD

http://newpittsburghcourieronline.com/2015/01/27/53-percent-of-black-wealth-wiped-out-foreclosure-crisis-erodes-communities-of-color/?omcamp=es-npco-nl&utm_source=Sailthru&utm_medium=email&utm_term=Pittsburgh%20Subscribers&utm_campaign=Lifestyle

Above is what the experts are saying!

 

After listening to Martin, Fletcher, Monique Pressly, Dr. Wilmer Leon and Michelle Hudgins, about the housing collapse on Black Families, it still comes down to education not race. In America, it is buyer be where. No one is going to hold your hand. You better know what you are doing especially when it comes to Real Estate.

 

 The older generation lives for the minute and that is what they teach the next generation. Back in 2006, I was telling people that housing was overpriced. I wish I had a dollar for everyone that came to me, telling me that buying a house is an investment. They were sold on the myth that housing prices will always go up.

 

My reply, "Go back to the bar and finish what you started." Many people including Black people got the idea that buying a house is an investment. The reason why is because from the 1940s to 2005, the baby boomers were buying houses. So the demand for houses out stripped the supply. Builders where able to sell new houses at a greater price every year. This is called housing inflation. This happened before in the 1920s followed by the collapse of real Estate Market that gave way to the banking collapse. This gave way to the Great Depression.

 

In the 1990s, someone in the Banking, Real Estate, and Investment Businesses got the idea that they can sell over priced houses to people that cannot afford them. Why because the people were already sold on the idea that housing prices always go up. Just like in the 1920s.  

 

Second, the bankers did them a favor in their eyes by giving them a mortgage for the home that they could not afford. The family may only have 5% cash in the home while mortgaging 95%. The less a home owner has in the home, the more risk the homeowner has in keeping the property. Yea, their worth went up but after subtracting the mortgage it did not. But someone sold them on the idea that as the price of the home goes up so will their net worth.  In the stock market, we call that buying on margin which is the most dangerous thing you can do because "you owe your sole to the company store" as Tennessee Ernie Ford would sing in the 1950s.

 

Third, the bankers did not keep the mortgages. They sold them to market makers in the stock market as safe mortgages. The market makers rolled these mortgages into REITs and sold them to pension funds, Foundations, Insurance Companies, Universities, Governments, and other banks.

 

Fourth, these people who have great jobs with the government or utilities thought that they will always have a job. After all, the only people that are not working are the people in cyclical industries. But then the governments started laying off. Workers started getting sick and cannot work, and other problems made it impossible to pay the mortgage. The individual home owner was in serious trouble and could not pay the mortgage, went into default, and lost the home.

 

Fifth, in any economy and in any neighborhood, "shit runs down hill." The mortgages became toxic and was not paying interest and principle. The REITs in the stock market started dropping because investors were not getting the return that they signed up for. The supply of houses out stripped demand for houses in a big hurry. No one was building houses anymore and the Home Builder Workers lost their jobs. Then the Home Builder Suppliers were hit and the ball kept running down hill, laying off people. The first Great Depression of the 21st Century started. The Bush administration ran a public relations program to get the public thinking that this is just a recession, not a depression. The is why we call this the Great Recession, not Depression. Under the Obama Administration, this public relations program is still going on. Now we say that the Great Recession is over pointing to the unemployment statistics. But no one told us that the way this statistic is calculated is different than 50 years ago.

 

Sixth, many people lost their houses, 401K funds of workers, Pension funds, and other institutions lost money.  The nation of Iceland had to get help from the US Treasury to stay solvent along with the large US and Foreign Banks that was behind the toxic mortgages.  

 

When the housing collapse was well on its way, people like me, bought a home, not for investment but as a place to live. At the height of the housing bubble, my place sold for $300,000. I bought it for a discount of 45%, about $75,000 below the appraised value.

 

Did I take advantage of other Blacks? No, the same disaster that hit Black neighborhoods also hit affluent White neighborhoods. The White people that I bought my property from was in serious trouble. We call these people, "want to" sellers.

 

In my Association in Havre de Grace, MD, many homeowners are in trouble with people delinquent in paying Association Fees. At least two Home Owner Association Accounts are in collections.

   

When I signed the papers at closing, the owner got up out of her seat, danced around the room screaming "Yes, Yes, Yes." She was so happy that she got out of the financial mess that she got herself into 4 years earlier. At least she was out of most of the mess. She still has to pay off thousands of dollars in associated loans. She was only in her early 40s but she looked like she was approaching her 60s.

 

Moral of the story, financially educate yourself as early as you can in life because if you don't, the system will eat you alive!