How To Keep & Grow Your Money #17

AI's NEXT Magnificent Seven

The Original Magnificent Seven Produced 16,894% Average Returns Over 20 Years. $1,000 in each turned into $1.18 million! But the Man Who Called Nvidia at $1.10 Says "AI's Next Magnificent Seven Could Do It Even Faster." He says $1,000 in these seven stocks could turn into $1 million+ in less than six years. The first company on his list just signed a MAJOR deal with Apple, and its tech is going to be included in the iPhone and iMac until 2040! See his breakdown of the seven stocks you should own.

Click Here for the Details.

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In this letter, we analyze the iShares Russell 1000 Growth ETF (IWF).

Ticker: IWF | Price: $398.49 | Market Cap: $103.7B | Average 10-Year Annual Return: 16.3% (as of October 2024)

What is it (short): iShares Russell 1000 Growth ETF provides exposure to large U.S. companies with strong growth potential, focusing on sectors like technology and consumer goods.

What is it (long): This ETF tracks the Russell 1000 Growth Index, composed of large-cap stocks in the U.S. with growth characteristics such as high earnings potential. It’s passively managed, making it suitable for investors seeking long-term growth without individual stock selection. The ETF’s strong tech focus may make it more volatile but offers considerable growth potential.

Our thoughts: IWF is a solid choice for growth-focused investors looking to benefit from large-cap companies. Its tech-heavy profile aligns with high-growth opportunities but may also experience significant market swings.

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.

U.S. Expats: What Trump's Return Could Mean for You

With Trump back in office, Americans living abroad should be aware of potential policy changes. Here’s what to consider:

• Increased Tax Scrutiny: Trump's "America First" agenda may mean higher taxes and more oversight for expats, especially those with offshore businesses.

• Uncertain Double Taxation Relief: Although Trump discussed reducing double taxation for expats, it's unlikely to be a priority.

• Financial Safeguarding: Now’s the time to consider a second passport, diversify finances, and evaluate residency options to navigate the shifting U.S. policy landscape.

Global Optimizer offers resources to help expats adapt to these potential changes.

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: Discount Rate

What is the Discount Rate and Why is it Important for Investing?

Definition: The discount rate is the interest rate the Federal Reserve charges banks for short-term loans. It also represents the rate used in discounted cash flow (DCF) analysis, calculating future cash values in today’s terms.

Purpose in Investment: In DCF, a higher discount rate lowers the present value of future cash flows, making risky investments less attractive. For central banks, a higher discount rate slows lending and spending, while a lower rate encourages them.

Key Considerations:

• Interest Rates: The Fed adjusts the discount rate based on economic goals, affecting loans, mortgages, and investments.

• Risk & Valuation: Higher discount rates mean higher perceived risk, while lower rates make future income seem more valuable.

• Market Impact: Changing discount rates can influence stocks, bonds, and overall market conditions.

Understanding the discount rate helps investors assess the economic climate and value investments more accurately, especially when considering future cash flow potential.

To learn more about Discount Rate read more on Investopedia here or learn more on how to invest here.