About Edward

Edward has been a member since July 16th 2010, and has created 1032 posts from scratch.

Edward's Bio

Hi, My name is Edward Forsythe, I have a passion for helping people achieve enough passive income through investing in the right vehicles to secure their financial future. I will be sharing with you several financial facts to help you make better decisions investment.

Edward's Websites

This Author's Website is http://prophetmaxprofits.com

Edward's Recent Articles

Your Questions About Investing For Income Now

Donald asks…

What do you think about investing during financial economical crisis?

I know that this financial economical crisis will last for 2 years at least. But I want to get some financial benefit from banks in anyway.
So what do you think about investing during financial economical crisis period? Will it be successful or self-destructive plan?

Edward answers:


Depends. If you plan on “bottom fishing” and hoping to pick up some good bargains, be prepared for a wild ride — and probably many losses.

It’s tough to invest for capital gains/price appreciation when the market has gone down so much. Volatility is at historically high levels.

Also, it’s tough to guess which companies are going to prosper in and after these tough times. Big names are on the ropes. Who’s next?

Also, don’t forget that baby boomers have just started to retire. We might depress the markets for a lot more than just two years.

So, my advice — as always — is to invest for income. You can pick up many bargains in dividend-paying stocks. You don’t have to care how their prices fluctuate in the future, so long as they keep paying you dividends.

Best, Rick Stooker

Jenny asks…

What is the best way for teens to make a residual income?

I am 14 and would like to create myself a residual income which is a decent amount. I am happy to spend up to a week in my holidays to get it up and running or more. I was wandering what the best way to do this is? I have seen ideas as things like writing a blog, but i am not sure what is the best way to then get a revenue.
Please include as many ideas as possible but also information and advice on each one. I will pick a best answer on how much information, ideas and advice is provided.

Edward answers:

It doesn’t matter if you are sixteen or sixty five, the only way to generate residual income is by building a business, investing in stock or real estate or writing a book (or being a movie actor – but that is a pipe dream).

BUSINESS – Start a lawn care company (since your a teen). Get a truck, a good mower, etc. And go around your neighborhood passing out flyers. Once you get enough clients, hire other people to do the work. BOOM, you got residual income rolling in.

REAL ESTATE – (the stock market is really complex, so let’s stick with RE) – buy a house, rent it out. As long as the rent you charge is over the mortgage payment, you got positive cash flow (residual income).

WRITE A BOOK – It’s free to sit at your computer, and your probably glued to your lap top all day anyway, so put that time to good use. If you have talent, you get the book published and then earn a royalty (or residual) off every sale.

There might be a couple other ways to generate residuals, but those are the best (or at least most common). And again, age doesn’t really matter (although you buying a house right now might not be realistic), so I’d focus on a lawn care company or writing (or, hell, try your luck in Hollywood).

Good luck!

Charles asks…

Can a person at any income level start a Business or can only Rich/Wealthy people start a Business can Middle?

Can a person at any income level start a Business or can only Rich/Wealthy people start a Business can Middle Class people start a Business with a Business Loan ?

Edward answers:

Yes, a person with any income level can start a business but up to that level how much funds are involved.For better business one can go for business loan also .The much you invest only that much of business you can start.

Joseph asks…

How does a decrease in income tax and expansionary monetary policy impact the economy?

How does decrease in income tax and expansionary monetary policy combine to affect Inflation and trade and how can it minimise the negative effects of inflation and trade?

thank you very much.

Edward answers:

A decrease in income tax would encourage people to spend (consume or invest). Through a subsequent multiplier reaction, this would increase aggregate demand and hence, the price level. As for the expansionary monetary policy, it involves increasing money supply to reduce the rate of interest so as to stimulate aggregate demand. Hence, this as well would increase the price level. The two together would increase inflation and hence, make exports dearer while imports cheaper. Other things being equal, this would cause a fall in exports and a rise in imports, leading to an unfavourable balance of trade.
It won’t minimise the negative effects of inflation given both would themselves boost the price level which would deter external trade…

Mark asks…

What should I invest in if I want to venture into concept/documentary photography?

I am a student and have very little income. I wanted to know what upgrades I could do for my D90 kit that would improve my photography as well. I know that 50% or more of my improvement is based on my creativity but I would really like to know if there’s something I could be able to use to maximize my talent.

Edward answers:

Invest in good lenses 200mm 300mm or 500mm. Good luck!

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Your Questions About Assume That The Risk-free Rate Is 6

William asks…

How do I calculate this Expected Interest Rate? Will rate all serious answers.?

The real risk-free rate is 3%. Inflation is expected to be 2% this year and 4% during the next 2 years. Assume that the maturity risk premium is zero. What is the yield on a 2-year Treasury securities? What is the yield on 3-year Treasury securities?

Please, please, please show the work. I need to see the formula so I can start figuring this stuff out on my own.

Edward answers:

The real risk-free rate is the rate which you will earn above inflation. So the nominal rate = ( 1 + rf)*(1 + inflation) – 1. For year 1, that is 1.03*1.02 – 1 = 5.06%. For year 2, it is 1.03*1.04 – 1 = 7.12%. So T-notes must yield Sqrt(1.0506*1.0712) – 1 = 6.08% (the back of the napkin calculation is just (3% + 3% + 2% + 4%)/2 which is what I always use).

Do the same thing for three years…(remember to take cube root of the product of three numbers).

Richard asks…

Assume that the real risk-free rate is 2% and that the maturity risk premium is zero.?

Assume that the real risk-free rate is 2% and that the maturity risk premium is zero. If the 1-year bond yield is 5% and a 2-year bond (of similar risk) yields 7%, what is the 1-year interest rate that is expected in Year 2.

Edward answers:

A 1,000 bond that yields 7% in two years will earn a total of 140. A rate of 6.54% in yr 2, on 1,070, will total 1,140 in 2 yrs. That’s a yield of 7%.

Sandy asks…

You are a consultant to a firm evaluating an expansion of its current business. The cash-flow forecasts (in m?

You are a consultant to a firm evaluating an expansion of its current business. The cash-flow forecasts (in millions of dollars) for the project are as follows:

YearsCash Flow
0 −220
1–10 +20

On the basis of the behavior of the firm’s stock, you believe that the beta of the firm is 1.6. Assuming that the rate of return available on risk-free investments is 8% and that the expected rate of return on the market portfolio is 10%, what is the net present value of the project? (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)

NPV$ ?

b.Should the project be accepted?

Edward answers:

Cost of Capital = rate of return of risk-free investments + beta (market portfolit – risk-free rate)

= 8% + 1.6 ( 10%-8%)

it will be interest rate used for discounted cash flow calculation..

NPV = -200 + [ 20 X (1.112^10-1)/(1.112^10X0.112) ]

= -200 + 116.803

Since it is negative…the investment project shouldnt be accepted..

James asks…

what is the required rat of return to 2 dp?

Assume Viper Ltd has a beta of 1.4 and the return on the ASX200 is 14.8%. Calculate the required rate of return for Viper Ltd if the risk free rate of return is 5.3%

Edward answers:

Use the capm equation
r = rf + beta*(rm-rf)
r = 0.053 + 1.4*(0.148-0.053)
r = 18.6%
the required rate of return is 18.6%

Lizzie asks…

What will this stock price be at the end of three years?

I am considering an investment in some common stock. The stock is expected to pay a dividend of $2 a share at the end of the year.The stock has a beta equal to.0.9. The risk free rate is 5.6%, and market risk premium is 6%. The stock’s dividend is expected to grow at some constant rate g. The stock currently sells for $25 a share. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years?
homework question.. please help

Edward answers:

It doesn’t matter what you or the market “believes”. No stats, like these are reliable…. Because things change…. Stats can’t predict the future they can only tell you the past. Even with “equilibrium”.

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Your Questions About Day Trading Stocks

John asks…

I want to start trading stock, day trading, which broker do you recommend?

So far I’ve traded Forex, I want stock because they are risker and more active and exciting.

Tell me some brokers because when I search Google for stock brokers, these links say they are stock but when I click all I get is Forex…

Edward answers:

The larger brokers are ones like TD Ameritrade, E-Trade, Charles Schwab, etc. I would stay far away from E-Trade, I have dealt with them and have had them tell me nothing but lies. Reps tell me I can trade this and that and then when I open the account I find out I can’t.

Maria asks…

If you trade stocks, several stocks in one day, how can you do that if?

the sale doesn’t official record until the next buisiness day? Or when does the sale of the stock officially occur after the order to sell is placed?
How can anyone do day trading quickly and in a timely manner?

Edward answers:

You can trade several stock in a given day, you should have the money in the account when you enter the order.

All purchases must be paid in full before they can be sold, and you can not use the proceeds of the sale to pay for the purchase. If you sell before you pay for the purchase, your account is restricted for 90 days or until payment for the purchase in recived in full.

All trades settle in three business days. There is the day the trade is made (trade date) and the day the trade settles (settlement date). The settlement date is 3 business days after the trade date.
All broker/dealers maintain their books and records as of the settlement day.

If you’re going to day trade you should have sufficient monies in your account to cover all purchases.
You could also have a margin account as day trader, but you must maintain equity of 25,000 at all times. Judging by your question, this is not for you

Laura asks…

Intra-day trading: FOREX, Stocks or Commodities?

When intra-day trading using mainly TA, are stocks, commodities or FOREX a better option? Which is the most reliable? Which offers the highest potential return? Many thanks.
‘InspectorBudget’, but who said I intended to trade based on you reply, or that I intend to trade at all? As it happens, i’m 16 years old, so I couldn’t legally trade anyway. Though any further explanation will probably be wasted on you, I will elaborate to say that I ask this question as i’m looking for a market to study (nothing to do with school, just a hobby). Sure, perhaps my question doesn’t ‘display extensive knowledge’, but perhaps I was just after a second opinion, i’ve noticed that (helpful) answers offer more insight into personal experience than your average book or webpage. I knew the facts, you didm’t need to reiterate them to me, but I knew/ thought that by asking the question on a forum like this, I might get answers from experienced traders about their experiences. Unfortunately, there are those, such as yourself, who feel the need to be patronising. So, if you are the seasoned trader you try to make yourself out to be, perhaps y
So, if you are the seasoned trader you try to make yourself out to be, perhaps you’d care to elaborate?

Edward answers:

You will most likely find yourself losing money whatever field you choose, if you are not well educated on the idiosyncrasies of each market.

However, I would single out the Forex market as being the most dangerous and risky of all three, if I had to choose. Followed closely by the commodities market.

Go and do your due diligence first, then you will be better equipped if you decide to take the plunge. But the odds are solidly against you at this time, with the present level of knowledge you display in your question.

Linda asks…

Is it possible to day trade stocks on an iMac?

Also, if you have any thoughts on how to paper trade and then get started in this, that would help.

Edward answers:

Of course it is possible… Get on the internet and start trading. You do have a brokerage account, right?

Joseph asks…

online day trading stocks ??

any help would be apprciated !

Edward answers:

Day trading refers to the practice of buying and selling financial instruments within the same trading day such that all positions will usually (not necessarily always) be closed before the market close of the trading day. Traders that participate in day trading are called day traders.

Read the below tutorials they will help you !

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Your Questions About How To Invest In Real Estate

Thomas asks…

Why is investing in real estate and shares better than managed funds or term deposits?

In comparison, why should someone invest in Real Estate and shares rather than managed funds or cash investments such as term deposits?

Edward answers:

Term deposits give pretty low rates of return, but they are more secure.

Managed funds take administrative fees, give moderate rates of return and have relative safety due to the diversity of investments.

Shares (I assume you simply mean stocks and commodities), can be very volatile, providing both great risk and great potential for gain.

Real estate is a tough one. Your investment will almost never drop to nothing, but purchasing real estate is risky, especially when using credit.

Ultimately, it all depends on your investment goals. If you are retired, you’d probably stick to managed funds and CD’s. If you are young, you might want something with more potential for growth.

Jenny asks…

Is Investing in Real estate investment trusts a Good idea?

Though I do a fair amount of reading of the real estate market, I must admit that I don’t keep in touch with domains such as real estate investment trusts. I understand the REITs (as they are called) could be a very useful addition to one’s portfolio, especially for those folks who wish to invest in real estate but are not actually keen on owning a house or real estate! What are the views of the members?

Edward answers:

Better invest in small pieces of lands outskirts which in turn appreciate more than any other forms. Even the Real Estate company shares also likely to fall.

Michael asks…

Is there really a way to invest in real estate without a down payment?

im looking to start investing in real estate and working on houses but cant afford a huge loan any help?

Edward answers:

Yes, but why now?? The market has peaked and prices are starting to drop. You may not get your money out of the house in time and you can lose on the investment.

Richard asks…

I want to start a Real Estate Investment company. Do I need a real estate license?

I want to invest in real estate but want to protect my personal assets.

Edward answers:

It may make you look more creditable. I don’t know if you NEED it, but it may look better to clients if you did….. Or just hook up with someone who has one!! Good Luck.

Mandy asks…

Possibilities for person who has acquired American citizenship to invest in real estate projects in India?

Possibilities for an NRI to invest in real estate projects in India?

Edward answers:

Yes permissible.

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Your Questions About Investment Returns Uk

Robert asks…

What are the pros and cons of a let to buy mortgage?

I’m planning to buy a more expensive house and sought a mortgage. My broker has suggested a let to buy arrangement so I keep my existing house, and get the new one. It all sounds a bit too good to be true. What are the benefits and drawbacks of this approach please? (Answers relevant to the UK market preferably please).

Edward answers:

I cannot believe Dave the Landlord has got 3 “thumbs downs”, as his answer is essentially sensible and correct.

Unless you have suggested you want to let a property out, your mortgage broker has no right to be suggesting this to you. In fact, if you have consulted him about a residential mortgage, he is advising you on a product that is covered by financial regulation. Buy to let mortgages are not regulated, so by moving the advice into this area, without prompting by you, he is probably breaking the law.

If you simply bought the new house in the “normal” way, you would sell the old one, pay off the mortgage on that, then get a new mortgage and use that, along with any proceeds from the sale (and possibly other savings), to buy the new house.

If you don’t sell the old house, you will need to fund your deposit (20% or more) yourself, and also get the mortgage. You will still have the mortgage on the old house, which will need to be replaced with a buy to let. This will need at least 25% equity, so if you don’t have that, you will need to make it up from other sources. The interest rate will also be higher than on a comparable residential mortgage.

If you can afford, and want to afford, the financial side, you then have to decide whether you want to be a landlord, comply with the regulations (eg obtaining gas safety inspections, maintaining the property, etc), find tenants, and generally run the “business” side of things. This will include making tax returns to declare your income and profit.

On the plus side, if you do want to do this, and you can do this, it may well turn out to be a very good investment. Yields are likely to be 5% to 10%, which compares very well with the 2% or 3% you might get by putting the money in the bank.

Joseph asks…

How do I locate the copyright holder of book titles no longer published?

I am looking to buy the copyright to books from a United Kingdom publisher that went out of business in the 1970′s or 1980′s.

I have sent registered mail to the last kinown address and it is returned, unopened by the Royal Mail.

Amy suggestions?

Edward answers:

It depends upon where and when it was first published and where you want to use the rights you obtain. For initial analysis, one might assume the book was first published in the UK, prior to the 1970s, and you want the rights in the UK (although my knowledge is in US copyright law).

You can look up the copyright owners’ names in the registry (the successor of Stationer’s Hall), assuming they had to be registered to be valid in the UK (or anywhere else), as they did in the USA prior to 1963. Although the INITIAL rights belong to the author, they are considered “property” and can be sold (or licensed) to publishers, sold to others for investment, etc. Such transfers of ownership should also be listed in the registry.

The “70 years after author’s death” rule does not apply (in the USA anyway) for any works published prior to 1978. Works prior to that had a US copyright life of 95 years from date of publication, assuming they were not already public domain by 1977 (i.e, their copyright was not valid, or was not renewed, or the renewal had expired).

UK laws may vary, but it’s just a suggestion that there may be other factors to consider in your case.

Charles asks…

Does anyone know any private Investors for a big return of investment?

I have an online directory and looking for a small investment i cant get a loan for 12 months but the investment will be paid back fairly quickly i have a business plan and am happy to send i dont want to pay the join up fees for angel before i even spoken to one.

Edward answers:

Assuming you’re in the UK, contact your local Business Link for free advice on business funding. They have information on sources of finance other than the traditional routes as well as helping you ensure your business plan makes the best case for funding.

Good luck!

Sandy asks…

What unexpected turn of events occurred in postwar vietnam involving the united states?

What unexpected turn of events occurred in postwar vietnam involving the united states?
20 hours ago – 3 days left to answer.
Additional Details
a) about 70,000 refugees setteled in the united states
B)communism remained the ruling political force in vietnam
c)america expanded its trade embargo against the vietnamese
d) vietnam eventually accepted foreign investment from the united states

Edward answers:

In my learned opinion, I think the only UNEXPECTED post war event was the number of refugees. Not listed in your choices, but also UNEXPECTED, was Vietnam to become the fastest growing economy in Asia.


Always remember that any answer you receive on yahoo Answers should be received with scrutiny as one of the answers you have received is gravely inaccurate. References to answers should be given in support.

The answerer said…..
“A) about 70,000 refugees settled in the united states
This answer is wrong because there are closer to 1.5 million Vietnamese settling in the U.S. Within 15 years after the Vietnam War ended. Around 200,000 came to Vietnam shortly after the fall of Saigon in 1975. ”

That answer would be impossible given that 1.5 million is greater than the total number of refugees that left the country and only a percentage of them went to the US.
The number that settled the US was approximately 70 – 90,000. While some 130,000 or so did go to the US in the years after the fall of Saigon, many of those re-settled in other countries.
quote from Columbia Encyclopedia
boat people, term used to describe the Indochinese refugees who fled Communist rule after the Vietnam War (1975) in small boats and the many ethnic Chinese who left Vietnam similarly after China’s invasion of Vietnam in 1979. More than one million people became refugees. Many perished, and others, upon reaching other Southeast Asian countries, discovered they could not remain permanently. The United States, Canada, and other nations accepted most of the refugees in the late 1970s and the 1980s. Although people continued to flee Vietnam into the mid-1990s, nearly all later boat people have been regarded as economic, not political, refugees. In 1996 the United Nations decided to end the financing of the camps holding the remaining 40,000 boat people, and Hong Kong, Thailand, Indonesia, Malaysia, and the Philippines returned most of the remaining refugees to Vietnam. The term boat people has also been used to describe political and economic refugees from other areas, such as Haiti, who fled their homelands by similar means.




Allow me to address the other points with accuracy ….

B)communism remained the ruling political force in vietnam
Vietnam is today a very capitalist communist country.There are some mighty rich citizens there today. In the late 1990′s, the VN Prime Minister opened the borders of Vietnam to allow full trade and liberalization. While officially called communist, VN is in fact today socialist.

C)america expanded its trade embargo against the vietnamese
Again that same answerer gave you misleading information… QUOTE ” The U.S. Did expand a trade embargo due to Vietnam’s military actions in Cambodia.”
The trade embargo was put in place in 1964 because of the VN-US war and expanded in 1975 at the fall of Saigon. It was NOT expanded because of Cambodia since the US had already blocked all trade with Vietnam well prior to that event.
QUOTE from other answerer – “it’s not really accurate as the turn of events would lead to eventual opening ties with the U.S. ”
Actually it is VERY accurate. See the references below…


4 February 1994.. President Bill Clinton last night announced the formal end of the embargo against Vietnam, 19 years after North Vietnamese troops captured Saigon
See also…



d) vietnam eventually accepted foreign investment from the united states
As above…. Vietnam and US are healthy trade partners and that partnership has been growing since 1994. Vietnam is now a member of the World Trade Organization and is the fastest growing Asian economy.


American Chamber of Commerce – Vietnam
QUOTE – AmCham is an independent association of American and international businesses with the objective of promoting trade and investment between the United States and Vietnam


QUOTE – Vietnam is considered the most attractive investment destination in the Association of Southeast Asian Nations by American companies

Donald asks…

Why is George Osborne so obsessed with destroying the countryside?

Another day, another announcement by Osborne that he intends to try and reverse a law protecting part of our natural heritage from development? Why? What’s his obsession? Does he think that covering every last piece of greenery with ugly concrete sh*t is the key to solving the recession? Has he never visited Spain? If he gets his way, we’ll be living in a country surrounded by nothing but hideous housing estates with no amenities and life will be very grim indeed.

Edward answers:

I reckon thers’s 2 main reasons.
Firstly, the developers have given the tories a lot of money and are expecting some return on their investment.
Secondly, Osborne himself is a stubborn, unimaginative man. If we were being unkind, we’d say he was a bit thick. Everything he has done about the economy so far has made matters worse so he’s latched onto the idea of letting developers build all over the countryside. As you say, it didn’t work in Spain and it won’t here, but Osborne is not the kind of bloke to give up. He just digs his heels in.
He may have picked the wrong fight here, though. This issue has been rumbling for months and won’t go away. It has the potential to be more damaging than the government’s spats with the public sector etc. Because it crosses party lines. A lot of tories are passionate about the country’s heritage. The likes of the Daily Telegraph and the National Trust are running campaigns at the moment. The response of George Osborne and housing minister Grant Shapps has been to sneer. Tories shouldn’t sneer at the Telegraph and the National Trust if they know what’s good for them.

Ossie may have bitten off more than he can chew on this one. Picking fights with conservation groups is a bad idea. They represent a huge proportion of the population and they never give up. It’s not got that many headlines so far, but this could be the issue that finally unseats our over-unpopular chancellor.

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