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Archive for May, 2008


The Insidious Character Flaw That Could Double the Time It Takes You to Succeed

Saturday, May 31st, 2008

When I retired in the year 2000, I did not accept any consulting work until I had taken time to reflect on my career and how I could have made success come easier. My one complaint was that I felt I had worked too many hours to achieve it.

After considerable thought, I had a revelation: I was a diehard perfectionist and my perfectionism had doubled the time it took me to be successful!

My partners and associates often commented, "Bob, you are a great detail guy. We love your reports. We can always count on you to strive for perfection." I wore those comments like a proud war veteran who had been awarded medals.

The truth is, those "medals" were a millstone around my neck and were slowing me down. It took me years, but I finally realized that perfectionism is a time-wasting, money-losing goal killer.

It is amazing that it took me so long to realize that it’s more productive to "aim for good" and then "aim for better" than trying to be perfect every time.

Is perfectionism keeping you from accomplishing your goals?

Have you ever said anything like:

"I must find the perfect gift for my sister’s wedding."

"This report has to be perfect before I turn it in."

"I have to make sure my presentation is perfect before I meet with this client."

The sad truth is, nothing is perfect. Striving for perfection is foolish – and it’s impossible to reach. So trying to make things perfect can prevent you from ever achieving the things you want to accomplish.

The other nasty thing about perfectionism is that it can stall you – keep you treading water instead of progressing. In other words, if you’re always trying to make your novel perfect, you’ll never get it published.

Keep in mind that you are a work in progress. So, too, are your goals… works in progress. If you never start on them… you can never benefit from the results.

Beating perfectionism is tough work. And sometimes the very thought that you aren’t doing something "perfectly" can stop you in your tracks and stomp on your motivation.

The Slump Buster

If you feel your energy level sliding, or if you are losing your motivation, here’s a simple strategy that will help you get back in the game.

Maintain a list of small, meaningful tasks that need doing – things like replacing a light bulb, writing a letter, or returning a phone call. Take out your list when you feel a slump coming on and take care of one of those tasks. You will be out of your slump by the time you have completed it.

Why? Because you will have "stepped back" to catch your breath. Plus, accomplishing even small tasks is energizing. Results are always good!

Don’t let perfectionism be a trap or hold you back from working toward your goals. If, for example, you have to get a winning sales letter in the mail to achieve one of your business goals, the only thing you can do is take a shot at writing it. Write your letter and test it. Aim for good. Once you receive the test results, you will be ready to aim for better, because you will have more information to work with.

Here’s another "trick" for keeping perfectionism at bay: Apply the 90 percent rule to every task you take on.

Let’s say you have been slaving away at a project. You’ve been putting in long hours, and wearing yourself out. As a result, you are beginning to neglect your other job responsibilities – and even your health. This is a definite sign that you are being a perfectionist. It’s time to put the 90 percent rule to work.

Say to yourself, "Have I achieved 90 percent of what I was aiming for with this project? If not, I will continue to work on it. If so, I move forward."

Now this doesn’t mean that you don’t pour 100 percent of your energy and attention into important tasks. It just means that you stop trying to perfect every tiny detail.

It took me 25 years to learn the 90 percent rule. Do not wait that long to take advantage of this time-saving, money-making, and goal-achieving insider secret.

I stopped striving for perfection because it was too time-consuming and limiting. Had I implemented the 90 percent rule much earlier, I would have completed far more projects a lot quicker.

To this day, keeping my perfectionism under control is hard. However, when I consider "the bigger picture," I know that I have to push to move my goals forward. That’s why, for the past seven years, this has been my rule: 90 percent means good to go!

Don’t waste time and energy striving for perfect. Do the best you can. Then take time later to fine-tune your work. As Michael Masterson always says, "Ready, Fire, Aim."

[Ed. Note: You can change your life and accomplish all your goals with simple strategies like Bob's 90 percent rule. For dozens more ways to achieve your dreams - plus tons of goal-setting tools and motivation to get going - sign up for ETR's Total Success Achievement Program. Learn more here.]

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Why This Trend Trumps the Tally

Saturday, May 31st, 2008

What’s wrong with depending on the collective wisdom of the analysts who follow stocks day in and day out? If the majority of analysts say buy, shouldn’t you buy? And when most say sell, shouldn’t you sell (if you already hold the stock)… or at least not buy? If anybody knows whether a stock is good or not, they should, right?

All this makes so much sense. And it would be so easy to do. Which is why I hate to throw the idea to the dogs. But that’s what it fully deserves. And I’ll tell you why.

Analysts are incredibly biased. When they see a cup half-empty, they’re known to shout "buy." Okay, that’s forgivable. But not when they see a cup two-thirds empty. The frightful fact is this. About 40 percent of stocks go down in any given year. And the percentage of stocks that have "sells"? Only five percent. As recently as the 90s, it was two percent.

That means a lot of stocks go down with either a "hold" or "buy" rating.

There’s a way for you to get around all the smoke and mirrors. Look at the trend, not at the tally. Are analysts liking a company more or less? If it’s more, the company is worth a second look. Because as analysts improve their ratings from sell to hold or from hold to buy, they bring more buyers into the fold. And as investors do more buying, the share price goes up. As an investor, that’s what you want to see.

The Reuters financial site shows how analysts have changed their opinion on specific stocks during the past year. You can find this information under "recommendations."

[Ed. Note: Yes, ETR's Investment Director, Andrew Gordon, gives you advice about what to invest in and what to avoid. But he also shows you how to make investment decisions for yourself. Check out Andy's monthly financial advisory service, which uncovers income-generating stocks that promise safety (first and foremost), along with much-higher-than-average profit potential.]

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It’s Fun to Know: The Ultimate Hometown Crowd

Saturday, May 31st, 2008

As part of its preparations for the upcoming Summer Olympics, China is training more than 200,000 of its citizens to act as official cheerleaders throughout the games. Mostly retired government employees, the cheerleaders are memorizing routines, chants, and cheering etiquette for unfamiliar sports. Although they will be enthusiastically cheering on Chinese athletes, they have been instructed not to boo competitors from other nations.

(Source: The Washington Post)

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The Language Perfectionist: A Failure to Communicate?

Saturday, May 31st, 2008

Some people express skepticism about "proper English" and the legitimacy of any language rules. An objection I often hear is: "What does it matter as long as the other person understands what you mean?"

The answer is that bad usage often fails to communicate, resulting in ambiguity, confusion, or lack of clarity. Consider this true story:

One day, while shopping in an art supply store, I overheard a young woman talking to an employee.

"I want to paint on material," she said.

"What kind of material?" asked the salesman.

The woman was flustered and flummoxed. "You know," she sputtered. "Material!"

I decided to come to the rescue and resolve this misunderstanding. "Excuse me," I interjected. "What I believe the young lady wants to do is paint on fabric."

The customer was visibly relieved. Yes, she acknowledged, that’s what she meant. Finally, her message had been communicated. But wouldn’t it have been better if she had used the right word?

Here are some helpful tips to improve your written and oral communication skills:

  • The goal of writing is to communicate effectively and express ideas with clarity, precision, and coherence. In certain kinds of writing, such as advertising copy, power and persuasiveness can hinge on the choice of the right word.
  • Common sense is always helpful. If something is ambiguous or confusing, it should be revised. Skilled editing and multiple rewrites are sometimes required.
  • Keep your reader in mind. In some types of writing, you can be informal, even slangy. Other situations call for more formality. If you encounter a situation where a word or phrase is "wrong" but the "right" way sounds too stodgy, look for a third alternative. You can almost always find a compromise solution.
  • Read widely, especially good writing. In addition, numerous books, courses, and websites can help you build your vocabulary and write with greater clarity, eloquence, and power.
  • Have a good reference at hand. In a previous ETR column, I recommended three excellent usage guides. Be aware of the most common misuses and how to avoid them.

The proper use of language can’t be dismissed as a quirky obsession of pedants or snobs. It has practical consequences. A series of articles in The Wall Street Journal reported that poor language and speech habits can damage an executive’s career prospects. So does it matter? Yes, it does.

[Ed Note: For more than three decades, Don Hauptman was a direct-response copywriter. He is author of the wordplay books Cruel and Unusual Puns and Acronymania, and is now writing a new book that also blends language and humor.

One of the best ways to improve your speaking is by understanding more about the words you choose. The bigger your vocabulary, the easier it is to choose the most appropriate word for any situation. With ETR's Words to the Wise CD Library, you can add 120 new words to your personal lexicon. Learn more here.]

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2 Ways to Thwart a Time-Wasting, Money-Losing Goal Killer

Saturday, May 31st, 2008

Issue #2370

  • WEALTHY: Should you trust market analysts? (Andrew Gordon)
  • HEALTHY: Sculpt your body and burn fat in 45 minutes (Craig Ballantyne)
  • WISE: John Henry Newman on perfection

ALSO IN THIS ISSUE:

  • Are you a victim of this time-wasting, money-losing goal killer? (Bob Cox)
  • Is proper English really necessary? (Don Hauptman)
  • It’s Fun to Know… about the ultimate hometown crowd
  • Add "hoyden" to your vocabulary

(more…)

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Word to the Wise: Hoyden

Saturday, May 31st, 2008

A "hoyden" (HOID’n) – possibly from the Dutch for "heathen" – is a bold, boisterous, high-spirited girl.

Example (as used by Mel Gussow in a New York Times review of Shakespeare’s As You Like It): "She [Joanne Camp as Rosalind] is a graceful hoyden, on the edge between expressing her womanly passion and savoring her own impersonation of a man."

[Ed. Note: Become a more persuasive writer and speaker ... build your self-confidence and intellect ... increase your attractiveness to others ... just by spending 10 VERY enjoyable minutes a day with ETR's new Words to the Wise CD Library.]

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The Best Workout Schedule

Saturday, May 31st, 2008

What’s the best time to work out? And how should you organize your training? Weights first, then cardio? Or vice versa? Read almost any fitness blog or magazine, and you’ll find a different opinion.

Instead of worrying about the right time and order, you need to find the best exercise program for you – one that you can easily fit into your busy schedule.

I designed my workout system, for instance, to be done in 45 minutes, three times per week. It allows you to do both resistance training and fat-burning interval training in the same session. (And most people can even do this in the comfort of their own homes.)

Here’s how you use this system to build a better body:

  • Start with a total-body warm-up using bodyweight exercises. Do the following bodyweight circuit twice without resting: bodyweight squat, push-ups or kneeling push-ups, plank. (Do two sets of each exercise for 10 repetitions.)
  • Follow the warm-up with resistance-training supersets (pairs of exercises done back to back without resting). In your first superset, do an exercise for your lower body and an upper-body pushing exercise (such as lunges and push-ups). Do this superset three times. Rest a minute between supersets, and do 8-15 repetitions per exercise.

In your second superset, do a lower-body exercise and an upper-body pulling exercise (such as step-ups and dumbbell rows). Again, do the superset three times. Rest a minute between supersets, and do 8-15 repetitions per exercise.

  • Finish with stretching.

A simple yet powerfully effective workout like this will take less than 45 minutes. And you only have to do it three times per week to sculpt your body and burn belly fat.

[Ed. Note: You may be surprised that such a short workout can have noticeable results. But interval and strength training are much more effective than slow, boring cardio. Find out how to burn fat quickly and easily with Craig's Turbulence Training Program.

And to get more recommendations about how to lose weight, stay fit, and eat better, sign up for ETR's natural health e-letter.]

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It’s Good to Know: Man-Made Thunderbolts

Friday, May 30th, 2008

A group of French and German engineers are one step closer to creating lightning on command. The team fired pulses from an extremely powerful laser into clouds above New Mexico recently. The pulses caused an increase in the electrical activity in clouds that precedes a lightning strike.

The activity was too weak to create actual thunderbolts, but the scientists believe faster, more powerful laser pulses will do the trick. They hope to use this technology to "disarm" thunderstorms by draining their power before they reach sensitive sites, such as rocket launch pads housing satellites.

(Source: New Scientist)

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Why You Need to Get Into Politics

Friday, May 30th, 2008

Issue #2369

  • WEALTHY: A little economic theory for your morning drive (Rick Pendergraft)
  • HEALTHY: 5 ways to keep "stress bloat" at bay (James LaValle)
  • WISE: Plato on power

ALSO IN THIS ISSUE:

  • Why you need to get into politics (Terry Brock)
  • The PT debate rages on…
  • It’s Good to Know… about man-made thunderbolts
  • Add "morass" to your vocabulary

(more…)

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Word to the Wise: Morass

Friday, May 30th, 2008

A "morass" (muh-RAS) – from the Dutch for "marsh" – is a bog, an area of low, soft, soggy ground. We also use the word to refer to something that hinders, engulfs, or overwhelms.

Example (as used by Terry Brock today): "In the midst of the abysmal pre-election morass, you and I can learn a lot to grow our businesses."

[Ed. Note: Become a more persuasive writer and speaker ... build your self-confidence and intellect ... increase your attractiveness to others ... just by spending 10 VERY enjoyable minutes a day with ETR's new Words to the Wise CD Library.]

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Marketing Lessons From Politics

Friday, May 30th, 2008

It is presidential campaign season here in the USA. Personally, I find much of the political process annoying (at best). Yet, in the midst of the abysmal pre-election morass (and I mean that in the nicest way!), you and I can learn a lot to grow our businesses.

Politicians have to win votes to survive. You and I have to win the hearts and minds of our customers to get their votes (dollars). This is where Relationship Marketing is so important. Relationship Marketing – or what I call "R-Commerce" – focuses on more than just making a quick sale. It’s all about building a solid, long-term relationship with your customers by learning where they are coming from and what their needs are.

The principles of Relationship Marketing apply to both politics and what you and I do in our businesses. Here are some areas where I see similarities between the two.

It Is Not About Just Using the Web – It Is About Embracing Web 2.0.

You have to engage the customer. Merely shoving a bunch of information at people (think 1960s television, radio, newspaper ads) doesn’t cut it anymore. Politicians actively embrace the Net to raise funds. They allow supporters (and detractors) to comment on blogs, websites, etc. YouTube is an active part of the political process. Embrace these tools for your own business and reap the benefits.

Learn What Is Important to Your Customers and Play to Their Needs.

Politicians will stress the economy in economically challenged states. They slant their messages to the areas of "pain" for voters in any particular geographic area. Are they only pandering to those folks? Well, a case could be made for that. But it is important for them to address the issues that are relevant to the people.

You might know a lot of ways your widgets can help your prospective customers. However, the only ways that matter are the ones buyers think matter. An old phrase is still so true: What is important is what important people think is important. Buyers are the important people for you and me. Focus on their pain and be the pain-reliever.

Build Relationships on Two Levels: Retail and Wholesale.

Politicians build relationships at the retail level. They know certain people and call them directly. They make it a point to meet other people in person. But they also embrace the masses at the wholesale level through rallies, fund-raising dinners, the media, and more.

As businesspeople, we have to do that as well. Have some relationships that are very close. And other relationships that are made through the media. On the retail level, it means pressing the flesh. It means you have to be there. Yes, e-mail is great. Yes, telephone calls are great. And, yes, Skype video over the Net is fabulous. However, none of that takes the place of sitting down with someone and sharing one-on-one over some drinks.

Think of how you could use this same principle to get to know – and bond with – your customers. This is Relationship Marketing at its best.

Have a Compelling Message.

You have to stand out from the crowd. Without offending, you must have a unique message your customers can’t get elsewhere. A politician who sounds too radical or too much like everyone else is doomed. Yes, it is a difficult tightrope to walk. But successful politicians (the ones who win the race) – and successful businesspeople – have a clear, compelling message.

Public Speaking Is Critical.

Barack Obama is a good example of a great public speaker. Think, too, of Bill Clinton, Ronald Reagan, John Kennedy, and Winston Churchill.

In business, public speaking is a vital tool for extending your brand and building trust. When people see you speak in public, they will either want to embrace you and your message or discard you. In most cases, audiences want to support the speaker. People like saying they heard a particular person live and in person. However, if you come across as unsure and violate some of their core beliefs, you can alienate them.

Build Your Base of Supporters.

All politicians stress the message that their mission is not about them. It is about something bigger. "I can’t do it alone," you’ll hear them say. Realistically speaking, every candidate is after power. However, they can’t say that. They have to communicate the impression that they are seeking election to serve their voters.

Realistically speaking, you are in business to make money. But marketers who focus on a bigger goal ("Helping you become financially independent" or "Making the world a safer, greener place") garner more long-term support from their customers.

Michael Masterson has long demonstrated for us how to "think like the buyer." That means understanding the buyer’s needs and problems. When you make it your mission to fulfill those needs and solve those problems, the money will flow to you.

Pollsters (and Tracking) Are Vital.

Politicians watch the polls to find out which issues matter to voters. You can find out what matters to your customers by using tools like Google Analytics, and WebTrends.

Know who is coming to your website. Know what they are looking for. Be aware of what is happening with the numbers that are vital to your business. Identify those key metrics and ratios and monitor them closely. Blogging and YouTube are two excellent tools for this. Wendy Montes de Oca’s article in ETR on polling shows what you can do to capitalize on this major trend.

Make Sure They Vote.

It is one thing for people to say they support a candidate. It is quite another for them to make the effort to actually vote and let their voices be heard.

Instead of voters, you’re looking for buyers. You want to make it easy for people to buy from you. Make your website easy to navigate. Make your retail store a joy to visit. Make it easy for clients to purchase your services. Promises won’t do it. You want to get your customers to vote for you – and continue voting for you – with their dollars. This is where Relationship Marketing really pays off.

As I said, the principles of Relationship Marketing apply just as well in the world of politics as they do in our own businesses. However, there is one very big difference. For us, "Election Day" is every day. And our campaign to win votes (customer dollars) starts all over again the next day. By making a strong commitment to continually make your business better and improve your campaign, you will always come out on top.

[Ed. Note: You can learn a lot about marketing from watching politicians. You can also discover valuable tricks of the trade from some of the top marketers in the business with ETR's Direct Marketing Masters program. Learn more here.

Terry Brock is a marketing coach and professional speaker who helps achievers succeed in business through profitable R-Commerce - Relationship Marketing. You can read his blog and watch his ground-breaking videos by going to www.TerryBrock.com and clicking on the "Terry's Blog... Latest Update" button.]

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How Can I Possibly Be Gaining Weight?

Friday, May 30th, 2008

These days, when two incomes barely make ends meet, you may be leading the kind of hectic life where coffee is all you make time to "eat" during the day. Unfair as it is, this black coffee stress diet can lead to weight gain. Fortunately, there are things you can do to prevent "stress bloat."

One reason behind stress-related weight gain has been well-documented in major nutritional and endocrinology journals. You see, elevated levels of the stress hormone cortisol (associated with long-term chronic stress) have potentially nasty consequences. These run the gamut from increased belly fat to insulin resistance and, in time, even Type II diabetes and heart disease.

Even when you can’t remove the causes of stress in your life, you may be able change the way your body responds to them and avoid those consequences. So subtract high-glycemic carbs from your diet and add more protein and lots of vegetables. Remember to exercise, and try meditation. And then consider taking nutritional supplements shown to help keep cortisol levels in check – Relora and Rhodiola, for example.  

[Ed. Note: Stress may be a fact of life - but it doesn't have to ruin your health. By modifying your diet, medications, lifestyle, and exercise habits, and with nutritional supplementation, your health is largely in your control. James B. LaValle, RPh, ND, CCN. - founder of the LaValle Metabolic Institute and a nationally recognized expert on natural therapies - has come up with a simple program for staying healthy. Learn the details here.

James is also the author of 13 books on healthy lifestyles and integrative care, including Cracking the Metabolic Code. Pick up your copy here.]

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What Does $4 Gas Mean for Your Investments?

Friday, May 30th, 2008

According to the Bureau of Transportation Statistics, there were 135,399,945 passenger cars in the United States as of 2006. The owners of all those vehicles have had less money to spend as the price of gas has soared. What impact does this have on the economy – and on your investments? Let’s do the math and find out.

Let’s say the average driver drives 1,000 miles per month and gets 20 miles per gallon. That would mean each one is using 50 gallons of gas per month. According to the Department of Energy, the national gas price has gone up $0.62 on average in the past year. So the average driver has $31 (50 gallons times the $0.62 price increase) less per month to spend on items other than gas. This may not seem like a huge difference, but let’s take the next step.

Multiply the number of cars (135,399,945) by $31 per month. That’s an additional $4,197,398,295 going into our gas tanks each month instead of getting used for other purchases.

The U.S. is bordering on a recession, and gas is taking an additional $4.2 billion out of the economy each month. How long do you think gas prices can stay this high without the demand falling significantly?

Prepare for falling oil and gas prices by scaling in to the shares of the ProShares UltraShort Oil and Gas Fund (DUG). This ETF goes up in value as the price of oil falls. It might not happen next week, but, from a purely economical standpoint, the price of gas can’t stay this high.

[Ed. Note: Invest in ETFs that rise as the price of oil falls. Simple advice that's easy to follow - this is the trademark of Rick's K.I.S.S. investment service. In it, this professional trader and investment analyst gives easy-to-follow, step-by-step advice that you can use to create consistent, automated income. Get the details here.]

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How to Create Your First Advertising Campaign

Thursday, May 29th, 2008

The Big Idea for an advertising campaign comes from your product’s USP (unique selling proposition). If the USP is strong, the Big Idea will be strong too.

The Big Promise comes from the Big Idea. If the Big Idea is the right kind of Big Idea, it will have a Big Promise contained within it.

Your specific marketing scheme should be based on that Big Promise. If the Big Promise is big enough, you won’t have any trouble coming up with dozens of claims that will excite your potential customers and persuade them to buy your product.

Here’s a checklist to walk yourself through the process:

  • Make a list of every feature of your product that you can think of.
  • Make a separate list of every possible benefit those features can provide.
  • Identify a rising trend in your market – a trend that is just beginning.
  • Ask yourself: "Which of my product benefits could tie into that trend?"
  • Identify those benefits as potential USPs.
  • By talking to experienced industry professionals and interviewing potential customers, find out which of your potential USPs are the strongest.
  • For each of those strong USPs, create a Big Idea.
  • For each of those Big Ideas, create one or several headlines that express a Big Promise.
  • Working with a copywriter, make a list of claims for your product, including proof of those claims.
  • Get at least two versions of the advertisement written – each version expressing a different copy approach – and test them.
  • Take the version that works best, and make that the basis of all your sales and marketing efforts.

As you roll out an advertising campaign, make plans to start the process again so you can keep your selling ahead of the market.

[Ed. Note: The above was excerpted from Michael Masterson's book, Ready, Fire, Aim: Zero to $100 Million in No Time Flat, published with permission of John Wiley & Sons. The book has hit the New York Times, the Wall Street Journal, and the Business Week lists of business best-sellers.

Teaching you the best way to sell your products isn't the only thing Michael does in Ready, Fire, Aim. He shows how veteran and rookie entrepreneurs alike can take their businesses to the next level. You'll learn how to identify and solve the problems that crop up during each stage of a company's growth... and how to take advantage of profit opportunities along the way. Order your copy of Ready, Fire, Aim now.]

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Word to the Wise: Subfusc

Thursday, May 29th, 2008

"Subfusc" (sub-FUSK) – from the Latin for "brownish" – means dark or drab.

Example (as used by Emily Gordon in Newsday): "The tea-cosy, property of one Edmund Gravel… is haunted by a six-legged emcee for various ’subfusc but transparent’ ghosts."

[Ed. Note: Become a more persuasive writer and speaker ... build your self-confidence and intellect ... increase your attractiveness to others ... just by spending 10 VERY enjoyable minutes a day with ETR's new Words to the Wise CD Library.]

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Fat Loss: A Calorie Is NOT a Calorie

Thursday, May 29th, 2008

While losing weight isn’t the easiest task for some, the equation is pretty simple: To drop pounds, you need to burn more calories than you consume.

Now what if I told you that certain foods come with their own built-in fat-burning mechanism? Well, it’s true. These foods are thermogenic – meaning they produce heat and burn calories. Diet-induced thermogenesis (DIT) is the latest promising trend in weight loss.

A recent study published in Metabolism evaluated the effects of a fat-rich meal and a protein-rich meal on lean and obese women. The meals contained the same number of calories and had the same volume.

The researchers found that diet-induced thermogenesis was significantly higher in all the women, by almost threefold, after the consumption of the protein-rich meal in comparison with the fat-rich meal.

Get more fat-burning power in your diet by eating lean protein at every meal. And be sure to choose protein-rich snacks like organic mozzarella cheese sticks, almonds, and boiled eggs to rev up your metabolism and stave off hunger.

[Ed. Note: Get more specific recommendations for which foods are best for your health in ETR's FREE natural health e-letter. Sign up today.
 
And be sure to stop by Kelley's website, www.healinggourmet.com.]

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It’s Fun to Know: The Elephant Trunk Snorkel

Thursday, May 29th, 2008

New fossil finds have lent credence to the theory that elephant trunks evolved to work as snorkels. The fossils, from a purported elephant ancestor the size of a large pig, were found in an area of Egypt that was made up of swamps and rivers in prehistoric times. Chemical analysis of the fossil teeth showed that the animal lived in fresh water and ate freshwater plants.

A competing theory holds that elephant trunks evolved to serve as a fifth appendage that could reach beyond the animal’s tusks.

(Source: New Scientist)

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A Tale of Two Winners

Thursday, May 29th, 2008

"Leo" had a good strategy for handling big paydays. Throughout his career, whenever he received a big chunk of income, the first thing he did was carve out an amount sufficient to cover the income taxes he would have to pay on it and put the money in a special bank account.

The result, of course, was invisible, because the potential problem (having to cough up an unexpected number of dollars at tax time) never became an actual problem. Leo would then set aside 90 percent of the remaining money to expand his ever-increasing financial cushion. And with the remaining 10 percent, he indulged himself and his family with whatever luxuries their hearts desired.

I don’t believe I’ve ever known anyone who planned his financial life so carefully and followed through in such a disciplined manner. Leo did, in fact, hit a string of crises in the mid-eighties that might have put most wealthy people under. But thanks to his taxes-first, cushion-second, luxuries-third approach to allocating income, he was able to weather each and every adversity.

Today, Leo lives in a $35 million oceanfront mansion in Bermuda. Prior to moving to Bermuda full-time, he sold his home in Aspen for a cool $19.75 million, which The Wall Street Journal reported to be the biggest residential real estate sale in the history of Colorado.

I guess you’d say that because of his approach to finances, Leo is the consummate financial winner. Which brings me to another friend whom I had always placed in the same category as Leo.

Jack was the epitome of success – a go-go entrepreneur, always on the move, always making deals, always enthusiastic and positive. Like Leo, he owned two magnificent homes (in Florida and Wisconsin), not to mention a fishing lodge in Panama.

Just as important, Jack was a superb human being – kind, honest, and gracious to a fault. He was one of those lucky people who possess a natural quality that makes everyone instantly like and trust them.

Back in the early eighties, Jack and I were involved in a cellular-telephone deal together, and, as one of the financial requirements for filing cellular-licensing applications, he had to submit his personal financial statement. It was an impressive $32 million – a very liquid $32 million.

As the years passed, I moved abroad and got caught up in other matters. As a result, I lost contact with Jack. I did think about him from time to time and wondered how his life was going. But those "I’ll have to give him a call sometime" thoughts never manifested themselves into reality.

I vividly recall saying to my wife on one occasion, when Jack’s name happened to come up in conversation, "Knowing what a magic touch Jack has, I wouldn’t be surprised if his $32 million net worth has grown to more than a hundred million by now." Just the thought made me feel happy for him, because it couldn’t have happened to a nicer guy.

Recently, I received an e-mail from Jack’s youngest son, Jay, saying that his father had passed away. Jay and I subsequently spoke by phone, and what he told me nearly took my breath away.

Jack had died penniless in a nursing home. About seven years after my last contact with him, the IRS presented him with a huge tax bill that forced him to sell most of what he owned at the time, including his palatial homes.

Dementia had begun to set in, followed by a stroke, then confinement to a wheelchair. The last several years of his life, Jack couldn’t speak at all and had to be fed and cared for by a nurse.

I was touched beyond words when Jay told me about the last time he saw his father alive.

Family members had warned him that Jack was so far gone he wouldn’t even recognize his own son. But they were wrong. Though he couldn’t speak, tears rolled down Jack’s cheeks when Jay entered the room.

It is impossible for me to focus on a mental picture of Jack confined to a wheelchair, unable to speak, his brain deadened – and penniless, to boot. For me, he will always be vibrant, confident, and the picture of prosperity.

I don’t know the details of Jack’s IRS problems, but sometimes the unforeseen circumstances Fate places in our path are just too much to handle. In this regard, Jack’s sad end reminds me of the words of Baltasar Gracian, the seventeenth century Jesuit priest who cautioned, "Place your winnings under cover when they are sufficient or large. … Fortune soon tires of carrying anyone long on her shoulders."

The words on Forrest Gump’s T-shirt put it more bluntly: "S___ happens." And it happens so frequently that a rational person has no choice but to recognize it as an integral part of life.

What’s especially irritating about it is that no matter how smart you are, no matter how successful you may be, and no matter how carefully you plan your financial affairs, there will likely be unforeseen circumstances that will register 8.4 at your epicenter.

All anyone can do to prepare for a seismic life shock of that magnitude is never forget that Fate sits on the other side of the Table of Life, plotting her next move. Make your financial moves very carefully, and never underestimate the unforeseen circumstances that she surely has in store for you.

Overconfidence is a dangerous card to play. And arrogance is as close as one can come to playing a fatal card. It’s a good idea to operate your life on the assumption that unforeseen circumstances are lurking in the shadows, just around the next bend. Fortune does not carry anyone on her shoulders indefinitely.

You should always try to hold a clear picture in your mind of the end result you’re after. And to the degree you become adept at this skill, you’re likely to end up with a very good batting average – payable in dollars. Nevertheless, it’s all for naught if you fail to make allowances for the roadblocks that are sure to be placed in your path by that fickle trickster known to humankind as Fate.

[Ed. Note: You can learn how to keep Fortune on your side with Robert Ringer's powerful personal-development package, The Magic of Synchronicity. In it, you’ll find out how to achieve prosperity, purpose, and peace of mind by getting all areas of your life in sync. Plus, get The Best of Robert Ringer, Volumes I & II – absolutely free. Learn more here.

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ETR Insider Report: You Have Questions, We Have Answers

Thursday, May 29th, 2008

Wouldn’t it be nice to get insider information and advice on your specific problem from an experienced expert in the field?

Let’s say you’re a first-time entrepreneur. And though you don’t have much in the way of experience, now you’re in a position where you have to create new products. You have to sell those products. You have to throw up a website. You have to hire employees. Maybe fire some employees. You have to make your business grow.

If you wanted to get the insider secrets on how to do those things, you could hire a consultant. You could always get a mentor. Or you could learn by trial and error. All perfectly good methods.

But there’s an easier way. And it’s free.

Simply send your questions to us – about business building, marketing, investing, health, getting a job, writing better, hiring employees, setting priorities, balancing your life and your job, getting promoted, or practically anything else you can think of.

  • If you own a business, you might ask MaryEllen Tribby about the best way to interview new hires…
  • If you’re a fledgling copywriter, you might ask Charlie Byrne about the top mistakes he sees new copywriters make…
  • If you have a new website, you might ask Alexis Siemon how to start your search engine marketing campaign…
  • If you’ve just come into some money, you might ask Andrew Gordon where he thinks it will grow the most…

Just jot down your question in an e-mail. Keep it to two paragraphs – but include as much detail as you think we’ll need to answer it fully. Then send it to AskETR@ETRfeedback.com. We’ll make sure it gets to the right person. Then we’ll print your question (with a pseudonym, if you prefer) and our expert’s response in an issue of Early to Rise.

We’ve got a team full of experts ready to help. All you need to do is ask.

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A Tale of Two Winners

Thursday, May 29th, 2008

Issue #2368

  • WEALTHY: Who are you paying first? (Robert Ringer)
  • HEALTHY: The fat-burning power of protein (Kelley Herring)
  • WISE: Herman Hesse on making the best of the cards you’re dealt

ALSO IN THIS ISSUE:

  • A "cheat sheet" for your first advertising campaign (Michael Masterson)
  • Expert advice that’s absolutely free (Suzanne Richardson)
  • It’s Fun to Know… about the elephant trunk snorkel
  • Add "subfusc" to your vocabulary

(more…)

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There’s Nothing New Under the Sun

Wednesday, May 28th, 2008

I’ve learned a few things in my two-score and 16 years – stuff that some other pretty smart fellas figured out a long, long time ago… 

"There’s nothing new under the sun." - King Solomon 

"What is past is prologue." - William Shakespeare 

"Those who cannot learn from history are doomed to repeat it." - George Santayana 

Now, keeping those quotes in mind, consider this… 

  • Huge expenditures from a massively expensive war are coming home to roost.
  • The U.S. economy and stock market are stalling; unemployment is rising.
  • In an attempt to pull the economy out of its funk, Washington is printing money like there’s no tomorrow.
  • Inflation – our cost of living – has begun rising.
  • Oil and gasoline prices are at all-time highs.
  • Food and raw materials are in increasingly short supply and prices are soaring worldwide.
  • Gold and silver prices are on a tear.
  • Congress is already controlled by the Democrats and voters are set to throw the Republicans out of the White House.

Have I left anything out?

What’s that you say? "Hannah Montana is breaking all box office records?" 

What? Wait. You think I’m talking about TODAY’S headlines? 

Sorry. No. I was reading the above headlines 30 years ago – in the mid-1970s! 

The debt from the Vietnam War was hitting home. The term "stagflation" was being coined to describe the new environment of slow (or negative) economic growth plus inflation. Washington was printing money out of thin air to pay its bills. Inflation was accelerating. And oil, gas, food, and just about everything else under the sun (especially gold and silver) were roaring higher. 

And, of course, in 1976 – with both houses of Congress already firmly in Democrat hands – disgusted voters abandoned the hapless and clueless Ford (remember the "WIN" button?) and installed an equally clueless and soon-to-be one-term Democrat peanut farmer in the White House. 

So sorry if I misled you. Maybe I also should have mentioned "Disco is all the rage."

Nevertheless, here’s why I say some of the life experiences I’ve had in my 56 years on this planet are beginning to come in handy: 

I know how to make money – a LOT of money – in times like these, because I’ve been there before. All you have to do is hit the history books, figure out who got richest the fastest the last time around, and then do what they did. Only better. 

I was there. I remember how the realization that Washington was out of control… that the government was incompetent and incapable of governing the economy… that even harder times were most likely ahead – and that in such times, prudent people take responsibility for their own financial and personal security – made a bunch of us a huge pile of money. 

I remember how my old pal Howard Ruff built The Ruff Times into a 180,000-subscriber behemoth telling people to buy gold and guns and stockpile food. I remember Investment Rarities, Security Rare Coin, and Blanchard & Co. exploding sales as much as 43 times over in as little as a year. 

I remember how just about everybody and anybody who promoted information or three-dimensional products aimed at helping people become self-sufficient and prepare for hard times raked in huge bucks. 

Most of all, I remember how marketers who recognized and then tapped into the public’s widespread and growing disgust with the establishment, fear of the worst-case scenario, and desire to take matters into their own hands created the greatest profit explosion in the history of the financial information business. 

And I remember how, years later, those self-sufficient investors turned out to be every bit as distrustful of the medical establishment as they were of the political establishment. And how they went on to create the multi-gazillion-dollar alternative-health publishing and supplement businesses we know today. 

And this time around, the smart money is betting that the profit opportunities will be even greater. 

Because last time around, there were no food riots around the world. No countries cutting off exports of wheat and other foods and stockpiling agricultural commodities to make sure they could feed their own people. 

There was no China with its $1.3 trillion foreign reserve war chest buying up resources and resource companies like there’s no tomorrow. And there certainly weren’t three billion new consumers on the planet in a bidding war for everything that makes middle class living what it is. 

Last time around, our home equity – the #1 source of retirement money for the vast majority of Americans – wasn’t evaporating before our very eyes. Nor was there a credit catastrophe hammering and even destroying lending institutions and making it next to impossible to borrow money. 

Oh – and we also didn’t have a way to get our message out for free. Today, we have the Internet. 

So before you do that next promotion, why not take a moment to crawl inside your prospective customer’s skin a little bit? You don’t have to be writing about investing or health to make this work for you. The fact is… understanding your prospect’s disgust with the establishment – the status quo – and then giving him a way to take control of his own life is likely to pay you huge dividends. 

[Ed. Note: As a direct-marketing consultant and copywriter, Clayton Makepeace has helped four major direct-marketing firms at least quadruple sales and profits to well over $100 million per year each. Clayton publishes the highly acclaimed e-zine The Total Package (www.makepeacetotalpackage.com) to help business owners and copywriters accelerate their sales and profits. Check it out.

The best way to position yourself to take advantage of this groundswell of anti-establishment feeling is to start your own Internet business. Learn how to build one - from the ground up - with the help of ETR's team of experts this July. Get the details here.]

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There’s Nothing New Under the Sun

Wednesday, May 28th, 2008

Issue #2367

  • WEALTHY: No way to make money in this economy? You’re wrong… (Clayton Makepeace)
  • HEALTHY: Higher levels of 11 nutrients in these foods (Kelley Herring)
  • WISE: Yogi Berra on repeating the past

ALSO IN THIS ISSUE:

  • An easy way to keep your goals on track (Michael Masterson)
  • Giving your customers their money’s worth (Bob Bly)
  • It’s Good to Know… about brand names so good we use them all the time (Suzanne Richardson)
  • Add "hypertrophy" to your vocabulary

(more…)

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Do You Charge So Much Your Customers Complain?

Wednesday, May 28th, 2008

An article in Circulation Management states: “Your subscribers should be complaining about their subscription price. If they’re not, then you’re not charging enough.”

I get the logic of this: If your customers accept your pricing too readily, that indicates they would be willing to pay more – and, therefore, you should price your product or service accordingly. But I’m not sure I agree with it. It sounds like making your prices so high that customers find them a burden, and are unhappy paying them, is a good idea.

Do we really want our customers complaining about our prices? Should we, in fact, always charge the maximum price we can get away with for everything we sell?

Internet marketer Fred Gleeck has a rule for pricing information products: The price should be low enough that if you multiply it by 10, the product would still be worth buying at that price. Thus, a product with a value of $1,000 should cost no more than $100.

I’m more comfortable with Fred’s guideline than Circulation Management’s. Fred’s advice ensures that customers always get more than their money’s worth. Circulation Management’s ensures that they barely or rarely do.

Which do you think is better?

[Ed. Note: Pricing is just one marketing element that can help your products sell. Expert marketers Bob Bly and Michael Masterson put together dozens of the most effective direct marketing techniques they know to make up ETR's Direct Marketing Masters program. Get the details here.

Bob Bly - who is a freelance copywriter and the author of over 70 books - also writes a free monthly e-zine, Direct Response Letter. Sign up now and get more than $100 in free bonuses.]

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Eat Less, Get More

Wednesday, May 28th, 2008

Need another reason to go organic? How about getting more disease-fighting nutrients per calorie?

The Organic Center recently evaluated the nutritional quality of organic foods versus those grown conventionally. In their review of 97 studies, the researchers found that organic, plant-based foods contain higher levels of 11 nutrients. That includes significantly greater concentrations of health-promoting polyphenols and antioxidants.

What’s more, organically grown plant-based foods turned out to be 25 percent more nutrient dense. Which means you get more nutrition per serving or calories consumed.

So eat less and get more by choosing organic produce. Your body and our earth will thank you.

(Source: organic-center.org)  

[Ed. Note: Eating organic food isn't the only simple lifestyle choice you can make to improve your health. Get the latest breakthroughs in health, nutrition, and fitness - and how you can work them into your daily routine - with ETR's natural health newsletter. Sign up here.

You may also be interested in reading the recipes and nutrition tips at Kelley's website, Healing Gourmet (www.healinggourmet.com). Check it out today.]

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Checking Your Progress

Wednesday, May 28th, 2008

I read an interesting health brief in ETR recently. (ETR is first on my reading list every day. I recommend it to everyone!)

It was about losing weight. The piece, in a nutshell, said that people who weigh themselves every day lose more weight and keep more weight off than those who don’t. "Consistently monitoring yourself after you’ve lost weight," the article concluded, "is clearly a key component of keeping it off."

That reminded me of a recommendation I made in Automatic Wealth. If your goal is to become wealthy, I pointed out, it’s a good idea to track your net worth on a regular basis. I said:

"I believe that most successful moneymakers regularly count their money… they regularly assess their fortunes. As their net income grows and they feel more comfortable with their wealth and more confident of their income, they count less. When they get superwealthy – Warren Buffett wealthy – they don’t have to count their money. Fortune magazine and countless other entities do it for them. But on their way up, they count. And that’s what I recommend you do.

"Specifically, I suggest that you do a personal balance sheet every month. Create a spreadsheet that lists all your assets and all your debits. Include valuable possessions, stocks, bonds, mutual funds, gold, real estate (aside from your home), and so forth.

"You’ll be amazed at how much this simple commitment can affect the way you think and even the way you act."

I’ve come across studies that found the same thing to be true of goal setting: If you write down your goals and check them regularly, you’ll have a much better chance of achieving them.

For instance, a recent study from DayTimer.com concluded that American workers with the highest incomes and most success in the workplace are those who have written goals. These superstars also have the habit of writing daily task lists prioritized in a way to help them achieve those goals. On the flipside, of the more than 70 percent of workers who don’t write down career or financial goals, only nine percent accomplish what they set out to do each day.

So those are three things you should be checking regularly:

  • Your weight (or, better yet, body-fat composition)
  • Your net worth
  • Your progress toward your life goals

Get on it!

[Ed. Note: You CAN get out of debt... lose 10 pounds... start a profitable business... or achieve any goal you set your mind to. Take your first step toward success by signing up for ETR's Total Success Achievement Program. We'll provide you with weekly motivational e-mail messages, twice-monthly goal-setting teleseminars, and proven strategies for bypassing common obstacles along the way. Learn more by clicking here.]

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It’s Good to Know: Brand Names So Good, We Use Them All the Time

Wednesday, May 28th, 2008

Recently, Google has been up in arms because people are using "google" as a verb. That’s all well and good when you’re talking about using Google to google something. But when "google" applies to searching on any search engine, they get a little testy. And no wonder. It IS possible for a brand name to become so popular that it slips into the common vernacular… and loses all traces of its corporate identity in the process.

Do you use facial tissue… or Kleenex? And if you blow your nose with Puffs or Scott, do you still call it kleenex?

When you use the copy machine, are you photocopying or xeroxing?

Kleenex and Xerox aren’t alone. Zipper, elevator, cellophane, thermos, and escalator are other examples of brand names turned generic.

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Word to the Wise: Hypertrophy

Wednesday, May 28th, 2008

"Hypertrophy" (hy-PUR-truh-fee) – from the Greek for "beyond nourishment" – is excessive growth or accumulation of any kind.

Example (as used by Karl Taro Greenfeld in a New York Times review of Dog Man by Martha Sherrill): "Westerners writing about Japan tend to fall into two camps – those enraptured with it’s modernity, the idea that frenetic, hypertrophied Tokyo somehow represents the future, or others… who find in Japan’s remote regions an anachronistic respite that harks back to our rustic past."

[Ed. Note: Become a more persuasive writer and speaker ... build your self-confidence and intellect ... increase your attractiveness to others ... just by spending 10 VERY enjoyable minutes a day with ETR's new Words to the Wise CD Library.]

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Word to the Wise: Lingua Franca

Tuesday, May 27th, 2008

"Lingua franca" (LING-gwuh FRANG-kuh) – from the Italian for "Frankish tongue" – is a medium of communication between people who speak different languages. It was originally a combination of Italian, Spanish, French, Greek, Arabic, and Turkish spoken in eastern Mediterranean ports.

Example (as used by John McWhorter in a New York Times review of The Word of the Lord Is Upon Me by Jonathan Rieder): "It was Martin Luther King who made the black preacher’s cadence a lingua franca… ."

[Ed. Note: Become a more persuasive writer and speaker ... build your self-confidence and intellect ... increase your attractiveness to others ... just by spending 10 VERY enjoyable minutes a day with ETR's new Words to the Wise CD Library.]

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Barbells, Ladders, and Avoiding Bondage

Tuesday, May 27th, 2008

Investing right now – when the economy is so shaky – may sound mighty risky. In fact, your main concern is probably not how much money you can make … but how well you can keep your existing money safe. There’s nothing wrong with that. It’s in unpredictable times like these that an old Wall Street adage applies: It’s not the return ON your investment but the return OF your investment that should be foremost in your mind.

If your primary concern is to protect your money, there’s really only one place to go. U.S. government bonds. They may be boring. They may give underwhelming returns. But they’re safe. And they have the full backing of the U.S. government. And that still means something.

The biggest challenge in buying bonds?  Locking in an attractive interest rate. When you buy a government bond, you’re loaning the government money. The longer the government keeps your money, the higher the interest rate it needs to offer you.

If you were negotiating for that interest rate, you’d say something like, "If you want my money for two years, you’ll need to pay me 1.8 percent. But if you want it for 10 years, you’ll have to pay me 3.5 percent."

That is what actually happens, except the government gets the message not from words but from the actions of millions of people buying and selling government bonds every day.

The risk you’re taking with government bonds isn’t that they’ll go bad. It’s that inflation will eat away at your earnings. If you’re making 3.5 percent interest on a bond investment but inflation is going up at the rate of 4 percent, for all practical purposes you’re losing money.

That’s not a good way to save, is it?

Consumer prices are climbing at a 4.1 percent clip right now. And investors who believe that number badly underestimates the true rate of inflation (as I do), should be starting to do more selling than buying of bonds. (Don’t worry. If you’re interested in buying rather than selling, I’ll show you how in a moment.)

This is the self-regulating mechanism of the market. As investors sell, the price of bonds goes down – just as selling pressure pushes the price of stocks down.

And as bond prices go down, their yields go up. As yields rise and become more attractive, buyers are once again drawn into the bond market.

"Bond interest rates" (not the original yield but the "yield to maturity") are constantly moving up and down in response to this buying and selling. When you buy a bond, it’s hard to be sure whether the interest rate you’re getting will be better or worse than it will be next year or the year after.  But your interest rate on that bond (the original yield) is locked in as soon as you make the purchase.

However, the price of your bond will fluctuate – as rates move up and down. So you should not put all your eggs in one basket.

Diversifying your bond portfolio is just as important as diversifying your stock portfolio. In addition to diversifying by sector, you also diversify by time.

There are two good ways to do this. You could ladder your bonds. Or you could barbell them. Let’s look at laddering first.

Building a Bond Ladder

Building a bond ladder is easy. The objective is to be in a position to reinvest your bond returns every one or two years.

Let’s say you have $50,000. Through your broker, you could buy a series of five 10-year bonds. The first series matures in 2009. You buy $10,000 worth. The second series matures in 2011. You put down another $10,000. The third matures in 2013, the fourth in 2015, and the fifth in 2017. (This is a  two-year ladder but you can do a one-year  ladder and have  money coming due each year for reinvestment or emergency.)  

And what do you do with the money you get when you redeem the bond maturing in 2009? You invest it in a bond maturing in 2019. And so on.

That means when interest rates are going up, you’re in a position to buy. When they’re going down, you’re also buying. For some people, that sounds very safe. For others, it may sound a little crazy.

Why invest in bonds maturing in 2019 if you’re getting a less attractive rate than, say, for 2017? Why not wait? But rates for bonds maturing in 2020, or 2022, or 2025 could continue to head down. You may be waiting a long time for nothing.

And if they reverse and head up? Well, you’ll be in a position to capture those higher rates as you move up the ladder (in years). In 2011, you could reinvest the money from your maturing bonds into bonds that are maturing in 2021. And so on.

Laddering is a very safe way to spread the interest rate risk you get with bonds. And you can do it with decent success with U.S. bonds. But I’d rather have you laddering with bonds issued by certain foreign governments – like Australia. Like U.S. government bonds, they’re government-backed with virtually no chance of defaulting. But many carry a much higher interest rate than U.S. government bonds. Australia’s is about 50 percent higher (300 basis points or three percentage points higher).

The only risk you’re taking is with the foreign exchange rate. You want the other country’s currency to be getting stronger against the U.S. dollar.

Why? Let’s assume you’ve bought $1,000 worth of Australian bonds. Your 6 percent interest should come to $600, right? But it’ll amount to less than that if the dollar gets stronger against the Australian dollar.

You see, your payment has to be converted from Australian to American dollars. If the Australian dollar weakens against the American dollar, it will buy fewer dollars. Say the Australian dollar goes down 10 percent against the U.S. dollar. Your $600 will also drop by 10 percent (or $60) to $540. But that’s still better than the $390 you’d get from a 10-year U.S. government bond. And 10 percent is a huge drop for a currency to take. Usually, the drops are a quarter of a percent or a third of a percent at a time.

That’s why I like foreign government bonds so much. You do better with them even under the worst currency-exchange scenarios. And if a currency is steadily moving against you, you have loads of time to call your broker and ask him to sell the bond.

Barbelling Your Bonds

A simpler way to play interest rate risk is by barbelling. With that same $50,000, instead of splitting it five ways, you’re splitting it in half.

Let’s say you think the yields on 10-year bonds will be going up. (Of course, you can’t be sure.) You invest $25,000 in the 10-year. The other $25,000, you invest in short-term bonds (maturing in, say, 18-36 months). You get stable income on one end and flexibility with the ability to reinvest in higher rates on the other end.

At the end of the 18-36 months, you can revisit the 10-year bonds. If the yields are more to your liking, you invest. If not, you have the option of reinvesting the $25,000 again in short-term bonds, and waiting another year or two to see where the 10-year rates are.

Right now, a lot of people think U.S. 10-year government bond yields will be going up, because these bonds are sensitive to the rate of inflation. And inflation is becoming a more serious threat. But if you have money you’d like to invest in bonds right now and you can’t wait, then barbelling may be a sensible strategy for you.

With risk spreading into unexpected places – like municipal bonds, bond auctions, and even the money market – government bonds are one of the truly safe havens left for investors.

And remember, you can employ these two techniques – laddering and barbelling – just as effectively with overseas bonds as U.S. bonds.

[Ed. Note: ETR's Investment Director, Andrew Gordon, is the editor of INCOME, a monthly financial advisory service that uncovers income-generating stocks that promise safety (first and foremost), along with much-higher-than-average profit potential.]

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Barbells, Ladders, and Avoiding Bondage

Tuesday, May 27th, 2008

Issue #2366
Tuesday, May 27, 2008

  • WEALTHY: Two ways to keep your nest egg safe (Andrew Gordon)
  • HEALTHY: Safeguard your family from "toxic plastic" (James LaValle)
  • WISE: Herbert Hoover on money management

ALSO IN THIS ISSUE:

  • What would you do if you had no electricity for days? (Judith Strauss)
  • A reality check for budding entrepreneurs
  • It’s Fun to Know… about pink ice
  • Add "lingua franca" to your vocabulary

(more…)

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