Ross Naylor's Ezine - How do you define financial freedom?


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Ross Naylor's Ezine - How do you define financial freedom?

  1. 1. Ross Naylor +48 (22) 389 65 70 (w) +48 512 275 706 (m) ul. Królewska 27 lok 411 Warszawa 00-060 Poland. How do you define financial freedom? If I were to ask you, "What is your definition of financial freedom?", what would you say? Do you have a concrete definition? Or is your definition more abstract? Words from the wise The conventional definition of financial freedom goes "I think there is a world market for maybe five something like this: computers." "Financial freedom comes when you have saved a nest - Thomas Watson (1874- egg large enough that the interest earned from your 1956), Chairman of IBM, savings will replace 80% of your current income, adjusted 1943. for inflation, when you decide to retire." Maybe not so wise in However, because of its abstract nature, financial hindsight. However, it is proof freedom is one of the most abused ideas in the world of that, what may have sounded sensible in the past may not personal finance. In my early training as a financial necessarily be so now. planner, I was taught to use questions like "Are you on course to achieve financial freedom?" to provoke action. The same applies to your (Or, more accurately, to provoke anxiety.) investment portfolio. Which is why it should be reviewed on The idea of financial freedom is no conspiracy to deceive a regular basis.
  2. 2. the masses. However, it has certainly sold vast quantities of financial products and services. How many books, Food for thought websites, blogs, magazine articles and financial planners have used the term financial freedom as leverage to sell These are some of the things something? that I have been reading/ listening to in the past few days. But how can you be free if your idea of freedom is defined by someone else or not defined at all? I thought that I would share them with you. I hope that If the term financial freedom is not made concrete (i.e. you find them interesting too. defined by you and for you), then there is a danger that true freedom may never be obtai ned regardless of your Anthony Bolton answers financial wealth. questions on China Not for the faint hearted With that in mind, what is your definition of financial freedom? Jeremy Grantham's Summer Essays 4 Cheers for Gold Not so serious As of the start of this month, the price of gold had tripled in value over the past 10 years. A number of prominent financial experts argue strongly that this trend will continue. Here are 4 reasons f or considering adding some Did you know? exposure to gold to your portfolio. 25% of the total medical 1. If adjusted for inflation, the current price of gold is only expenses that we face are at 30% of its all time high (reached in 1980). usually incurred in the last year of our life. 2. There is a lot of evidence that indicates that the price of gold follows the monetary base (i.e. bank deposits and Disclaimer: currency) over time. Over the past two years, the monetary base has increased greatly. In order to "catch The views expressed here are my own. up", the price of gold would have to do the same. They are not necessarily shared by AES International. They are subject to 3. Many of the world's developed nations, including the change at any time based on m arket US and members of the European Union, are currently in and other conditions. This is not an the throes of a major monetary crisis. This has already offer or solicitation for the purchase or sale of any security and should not be struck Iceland and is a looming threat in countries such construed as such. References to
  3. 3. as Greece, Spain, Portugal, Italy, and Ireland. specific securities are for illustrative or informational purposes only and are not 4. Central Banks are buying it. The Russian Central intended to be, and should not be interpreted as, recommendations to Bank's gold holdings were recently updated for June. purchase or sell such securities. They showed that they have purchased another 200,000 ounces. Their total gold reserves now stand at 22.8 million troy ounces (709.2 t onnes). So far this year, the RCB has purchased 2.1 million ounces for their reserves... that's a lot of gold! Other central banks are likely to follow suit. Call me: +48 (22) 389 65 70 (w) +48 512 275 706 (m)