How To Keep & Grow Your Money #13

In this letter, we analyze the Invesco QQQ Trust (QQQ) ETF.

Ticker: QQQ | Price: $493.36 | Market Cap: $294.8B | Average 10-Year Annual Return: 18.3% (as of September 2024).

What is it (short): The Invesco QQQ Trust ETF is an exchange-traded fund that tracks the performance of the Nasdaq-100 Index, providing exposure to 100 of the largest non-financial companies listed on the Nasdaq stock exchange. This ETF includes major technology companies like Apple, Microsoft, and Amazon.

What is it (long): This ETF is one of the most popular in the world and aims to mirror the performance of the Nasdaq-100 Index. It focuses on sectors such as technology, consumer services, and healthcare. The fund's strategy is passively managed, making it ideal for investors seeking exposure to top-performing tech-driven industries without needing to pick individual stocks. Due to its high weighting in the tech sector, QQQ is often more volatile but can offer strong growth potential, especially in bull markets.

Our thoughts: Invesco QQQ Trust is a strong option for investors interested in long-term growth within the technology and innovation sectors. It has performed exceptionally well over the past decade, consistently outperforming broader market indices. However, it can be more volatile than more diversified funds due to its heavy reliance on tech stocks. Suitable for those with higher risk tolerance and a long-term investment horizon.

Do your own research and if you would like to take our free course to learn how to invest into ETFs and Index Funds at Index Institution™ go here.

The best 12 Countries in Europe to live and work with low tax rates

Here’s an expanded summary of the 12 European countries known for low taxes:

1. Bulgaria: With a flat 10% income tax and 10% corporate tax, Bulgaria offers one of the most competitive tax systems in the EU. In addition to these low rates, the country has a relatively low cost of living and is increasingly attracting digital nomads and international businesses. There are also various incentives for sectors like tech and manufacturing.

2. Hungary: Hungary's 15% flat personal income tax is complemented by an incredibly low 9% corporate tax, the lowest in the EU. Businesses benefit from incentives in industries such as tech, research and development, and manufacturing. Hungary also offers a favorable tax regime for high-net-worth individuals through investment schemes.

3. Czech Republic: Known for its 15% flat personal income tax, the Czech Republic also has a 19% corporate tax rate. The country is appealing due to its strategic location in Central Europe, well-developed infrastructure, and favorable cost of living. It also provides R&D tax incentives for companies involved in innovation.

4. Romania: Romania offers a flat 10% income tax and corporate tax rate, positioning it as a low-tax haven for both individuals and businesses. Additionally, the IT sector benefits from tax exemptions, and there are incentives for companies engaged in green energy and manufacturing.

5. Lithuania: Lithuania features a flat 20% personal income tax and a 15% corporate tax rate. It offers a friendly business environment with incentives for startups, particularly in fintech and IT. Lithuania also has a growing reputation as a hub for fintech companies in Europe.

6. Latvia: With a 20% personal income tax and corporate tax rate, Latvia provides a relatively simple tax regime. For businesses, it operates on a unique cash-flow-based corporate tax model, where profits are only taxed when distributed, making it appealing for growing companies. It has incentives for startups and tech firms.

7. Estonia: Estonia's 0% corporate tax on retained earnings is a significant draw for businesses. Companies only pay tax on distributed profits, encouraging reinvestment. Estonia’s 20% flat personal income tax is also relatively low. Estonia is also known for its highly digitized government services, making it a top destination for entrepreneurs and digital nomads.

8. Cyprus: Popular among expatriates, Cyprus has a 12.5% corporate tax rate, which is one of the lowest in the EU. The country provides a variety of tax exemptions on foreign-sourced income, and new residents enjoy tax breaks under its non-domicile tax regime. Cyprus is also a favorite destination for retirees and offers attractive real estate incentives.

9. Malta: Malta has a nominal 35% corporate tax, but businesses often pay much less due to tax rebates that can lower the effective rate to around 5% for international companies. Individuals benefit from a progressive tax rate, with expats able to take advantage of favorable tax schemes. Malta is known for its strong financial services industry and is a hub for gaming and IT sectors.

10. Ireland: Known globally for its 12.5% corporate tax rate, Ireland is a key destination for tech giants and multinational companies. Its tax regime is attractive to both startups and established businesses due to strong intellectual property protections and tax incentives for R&D. Personal income tax rates range from 20% to 40%, with a higher rate for high earners.

11. Gibraltar: Gibraltar has a 10% corporate tax rate for most businesses and no VAT or capital gains tax. This territory is appealing for online gambling companies and financial services due to its favorable tax regime. It also offers residency programs for wealthy individuals, providing tax benefits for those with significant incomes.

12. Monaco: Known for having 0% personal income tax for its residents, Monaco is one of the most attractive destinations for high-net-worth individuals. However, businesses in Monaco are taxed if more than 25% of their revenue comes from outside the principality. Monaco does not levy wealth taxes, making it a popular destination for affluent residents looking to protect their assets.

Each of these countries offers unique tax benefits, making them appealing for businesses, investors, and expatriates alike. Depending on the industry or financial goals, different nations present better opportunities.

If you would like to explore legally paying less taxes and maximizing your freedom check out Global Optimizer™ or click here.

Financial concept to learn in this edition: Technical Analysis

What Is Technical Analysis?

Technical analysis is a method used by investors to predict future price movements based on historical market data, especially price and volume. Unlike fundamental analysis, which focuses on a company’s financial health, technical analysis looks solely at market trends to guide decision-making. Here’s a beginner-friendly breakdown:

Key Concepts:

• Price and Volume: These are the two main factors analyzed. Price trends indicate market sentiment, while volume shows how strong a trend is.

• Chart Patterns: Traders use visual tools like candlestick charts, line charts, or bar charts to spot trends and potential reversals.

• Indicators: Common tools include moving averages, the Relative Strength Index (RSI), and the Moving Average Convergence Divergence (MACD). These help traders determine whether a stock is likely to move up or down.

Relevance for Investors:

Technical analysis is often used for short-term trading, as it helps identify when to enter or exit a trade based on patterns and signals from past data. This strategy assumes that all information about a stock is reflected in its current price, and history tends to repeat itself in predictable ways.

While useful for day trading and short-term strategies, it's important to understand that technical analysis doesn't guarantee results, as market conditions can always change unpredictably

To learn more about Technical Analysis read more on Investopedia here or learn more on how to invest here.