The Millions in the European Union

My purpose is stronger than ever one Million Euros in less than 5 years, now I see this objective more than interesting due to the fact that during the week in which I moved my positions to a safer place, and just when I was ready to leave the coldness of Helsinki for a month in Mexico, and more than ready to enjoy the sun and the sand in the beach, I was surprised of the events during the last week in the European stock market's downfall, few colleagues and Pasive Investors followed my advise of cashing out temporarily (just in time) and come back to the Bullish market during March, I was surprised to find out that Greece has come under pressure to implement austerity measures after the European Union announced plans to monitor the country's efforts to cut its budget deficit

Pressure on Greece to get its public finances into shape increased during this weeks as the European Union announced unusually strict measures against the country. The European Commission, the EU's executive body, is to put Greece under closer monitoring than any euro-zone country has ever been subjected to and also criticized Athens for faulty reporting of statistics.

Speaking at a press conference Wednesday, European Economy Commissioner Joaquin Almunia welcomed Greece's new plan to reduce its enormous budget deficit. On Tuesday, Greek Prime Minister George Papandreou announced a package of austerity measures that includes a freeze on salaries in the public sector, a possible increase in the retirement age and a hike in fuel prices.

Almunia said that the Commission was endorsing the program, which he described as "ambitious" but "achievable." "We know that the implementation of the program will not be easy," he told reporters. "It's extremely challenging, but absolutely necessary and urgent."

However, the EU wants Greece to do even more and is urging it to adopt a "comprehensive structural reform package" that would include cuts in pension spending and reform of the health-care system. The Commission also wants Greece to increase the competitiveness of its economy by making its labor market more flexible, among other demands.

At 12.7 percent of GDP, Greece's budget deficit is more than four times higher than the maximum of 3 percent allowed under euro-zone rules. The European Commission's recommendations are aimed at bringing the country's deficit under 3 percent of GDP by 2012. I really want to believe that is possible but some experts will have to take control.Greece's progress and the new plans would be rigorously monitored through so-called "economic surveillance." Athens will be required to submit a first report in mid-March and will then need to submit quarterly progress reports beginning in mid-May.

It is the first time that the Commission is using such a strict monitoring system, but Almunia insisted the program "is needed given the circumstances." Greece must be prepared to adopt additional measures if the country was not on track to reduce its budget deficit by the agreed deadlines. The country is under massive pressure from financial markets and other EU members to get its finances under control. The budgetary crisis has caused the euro to fall against the dollar in recent weeks and increased the cost of borrowing for the Greek government amid fears it could default.

There is speculation that Greece may have to be bailed out by other EU members -- something the country insists will not be necessary -- and something I believe is not going to happen! and there are also concerns that the country's woes could have a knock-on effect on other euro-zone members with high deficits, such as Portugal, Italy, Ireland and Spain.

This should warn us Investors not to go too far yet, we have to remember certain meassures in this difficult moments, this is not as difficult as it seems we have to remember that the European Union has 27 member and every member state must fulfil the economic and political conditions generally known as the Copenhaguen criteria. These basically require that a candidate Member State must enjoy a secular, democratic system of government, together with the corresponding freedoms and institutions, and respect the rule of law.

It is not only Greece with high deficits but also Portugal, Italy, Ireland and Spain. I guess is just about time to learn some austerity from the Nordic countries and the Nordic Model. The Nordic Model refers to the economic and social model of Iceland, Denmark, Finland, Sweden and Norway. This particular adaptation of the mixed market economy is characterized by more generous welfare states (relative to other developed countries), which are aimed specifically at enhancing individual autonomy, ensuring the universal provision of basic human rights and stabilizing the economy. It is distinguished from other welfare states with similar goals by its emphasis on maximizing labour force participation, promoting gender equality and extensive benefit levels, large magnitude of redistribution, and liberal use of expansionary fiscal policy. The Nordic Model however is not a single model with specific components or rules; each of the Nordic countries has their own economic and social models, sometimes with large differences from the neighbours.

To conclude this post and get to undestand what has been called as a crisis in Europe a term that is exagerated at the moment, see the next video, and now that we are talking about Nordic countries a good example of a Nordic model can be provided by Finland and The Foreign Minister of Finland Alexander Stubb.

Keep writing to me it keeps me alive and the objective is there make it happen! the sand, sun and family are waiting here I come... Enjoy the video:

Be a Millionaire with a peace of mind!

I feel compelled to start this post by reaffirming my objective of one million euros in less than 5 years and I have to admit that time, as few of my favourites said it: "Time is on my side" but I also have to be aware of the fact that "Time around here does not exist"

I also notice that the ammount of events happening in the world at the begginning of this 2010 are uncontrollable and the future is uncertain therefore, I have to plea for good will and charity to all those who suffered the unfortunate events of nature in Haiti, at the end we are all humans. I also have to clarify my sincere purpose and I am declaring my Financial Freedom and a Millionaire mind set. That means that January is the month where we not only focus on the love in our lives, we are also grateful for our loving planet who nurtures us, but we give attention to our love for financial freedom and the joy and inner peace it brings us as we can live the lifestyle we choose to live and give to those we choose to give freely and with ease.

The principles of 'inner peace' shared by Warren Buffett and Buddha among others can provide a relaxed guide to investing happiness.

Last May, 35,000 shareholders crowded into Berkshire Hathaway's, annual shareholders meeting. One of the faithful asked a fundamental question: "What is the secret to value investing?"

- Buffett replied with all his serenity : "Independent thinking and inner peace."

Independent thinking is the traditional left-brain wisdom you'd expect from a Typical leader. But inner peace? That's hot Eastern wisdom served with a lot of heart.

During this month I started wondering how the inner peace and wisdom of Buffett and Buddha could translate into meditations to help Independent Portfolio investors during 2010. Suddenly it all came together in the following principles:

1. Love it before you get the million

"I am really no different from any of you," Buffet says. "I may have more money than you, but money doesn't make the difference. Sure, I can buy the most luxurious handmade suit, but I put it on, and it just looks cheap. I would rather have a cheeseburger from Dairy Queen than a $100 meal. . . . If there is any difference between you and me, it may simply be that I get up every day and have a chance to do what I love to do."

And he still "has to go to work every day."

2. Your mind creates money

"We are what we think," Buddha says. "Our thoughts create our world." Today, Wall Street's thoughts are driven by a mindless, obsessive addiction to get rich quick, without heart or purpose creating a world of endless self-destructive bubbles. In contrast, Buffett creates long-term wealth and really loves what he does.

One of the keys to Buffett's success, is compounding. . . . If you start early and put $2,000 a year into an stable fund or shares for just eight years, until you are 27, when you retire at age 65 the $16,000 will have ballooned to over $1 million. You do not need unusually high returns to make good money with compound interest, but you do need to be consistent and focus.

Investing is all about common sense. Owning a diversified portfolio of stocks and holding it for the long term is a winner's game. Trying to beat the stock market is theoretically a zero-sum game (for every winner, there must be a loser), but let me tell you it is abolutelly possible to be on the winners side.

3. Being rich is 'nothing special'

Ancient Zen masters warned students that enlightenment is "nothing special." Neither is having a million. Nor even a billion. The same rules are applied everywhere "As above, so below" This phrase comes from the beginning of The Emerald table and embraces the entire system of traditional and modern magic which was inscribed upon the tablet in cryptic wording by Hermes Trismegistus. The significance of this phrase is that it is believed to hold the key to all mysteries. All systems of magic are claimed to function by this formula. "'That which is above is the same as that which is below'...Macrocosmos is the same as microcosmos!

4. Invest Now and keep your positions

The Buddha: "Believe nothing, no matter where you read it or who has said it, not even if I have said it, unless it agrees with your own reason and your own common sense."

I would like to guide you on How to do it: "Start with the total stock market index. The idea is to own the stock market, own every company, and hold for it Warren Buffett's favorite holding period: forever. And that's part of the secret: Own everything, and hold it forever. The S&P 500Wilshire 5000 is also a great alternative but my all time favorites are some Nordic European indexes.
is about 80% of the value of the total stock market." The

All the shares that I mentioned on my previous post had a successful year in 2009, riding the turmoil with inner peace. Just before Christmas, all eight no-load index portfolios had one-year returns averaging 24% to 33% Not to mention the big and fast profit and success of Biohit in the Helsinki Stock exchange which in less than two weeks passed from 1.50 to 4.50 to stay in a relaxed position of 3.00 it was an easy way to double your money.

The Second Grader's Starter Portfolio consists of just three funds, including the recommended big-cap index fund plus the Total Bond Index and Total International Stock Index Fun. The portfolio's 33.3% returns beat the S&P 500, proving Buffett's point that "a great IQ is not needed to do well as an investor," just "the ability to detach yourself from the crowd."

We know the crowd will focus on the two hottest funds in the Portfolios: Vanguard's Emerging Markets Stock Index was smoking at 79% this year, and its REIT Index Fund
at 39%. But remember: Diversify, don't just trade hot funds of stocks.

5. You are always Learning

Zen masters say, "Zen mind, beginner's mind." Step into Buffett's Zen mind and meditate:

"I'm going to buy hamburgers for the rest of my life. When hamburgers go down in price, we sing the 'Hallelujah Chorus' in the Buffett household. When hamburgers go up, we weep. For most people, it's the same way with everything in life they will be buying -- except stocks. When stocks go down, you can get more for your money, but people don't like them anymore. That sort of behavior is especially puzzling." It is then when you have to take a step ahead and do it.

6. You must make peace within you

"It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently," Buffett says.

And there's this widely cited Buffett quote as well: "I want employees to ask themselves whether they are willing to have any contemplated act appear on the front page of their local paper the next day, be read by their spouses, children and friends. . . . If they follow this test, they will not fear my other message to them: Lose money for my firm, and I will be understanding; lose a shred of reputation for the firm, and I will be ruthless."

Meditate on doing things yourway and you will have no regret.

7. You are the only responsible

A practical reason for being your own boss on the investing area: A decade ago, "the total revenues paid by investors to investment bankers and brokerage firms exceeded $1 trillion," and "more than three-quarters of the cumulative financial wealth produced by stocks over an investor's lifetime will be consumed by fund managers."

You cannot trust Wall Street. Zen masters warn: "If you meet the Buddha on the road, kill him." Why? Because Buddha is never "out there." Not on CNN. Nor at Goldman. Not even Buffett. You're it!!!

OK OK OK ...if you insist that you need a fund manager or a good advise drop me an e mail.

8. You're on a never-ending journey of self-discovery

"You do things when the opportunities come along," Buffett says. "I've had periods in my life when I've had a bundle of ideas come along, and I've had long dry spells. If I get an idea next week, I'll do something. If not, I won't do a damn thing. . . . You only have to do a very few things right in your life so long as you don't do too many things wrong."

You're on Earth for a reason. Not just to get rich. What is it? That journey never ends, few months ago I lost some weight, a few years back I was learning a new languaje, now as you can see I´m designing the Millionaire Man t-shirts:Come visit my store on CafePress! so the possibilities are endless making the Million euros one of them.

9. You are making it

If you're in the luckiest 1% of humanity, you owe it to the rest of humanity to think about the other 99%."Life and investing are simple for Buffett: "We enjoy the process far more than the proceeds. Independent thinking and inner peace. I can only point the way for you," Buddha says. "Be a lamp unto yourself."

And if you wonder how you'll ever know if you got the "Zen first" secret (because Buddha also says, "You may be enlightened but never know it"), I'll bet Buffett would reply with something like: "You'll know you're enlightened when you sense inner peace while enjoying with your portfolio." At least I hope he'd say something like that at least I would say it like that.

So there's no secret to get a peace of mind. If anything, it's too simple. Peace of mind is within you.

I hope I can get to write another post and answer all you comments, mails and questions before I rush to the Caribbean Sea to enjoy a well deserved Vacation after a year of a Million Thoughts!!!

Keep in touch support my cause get your shirt:Come visit my store on CafePress!

And enjoy these advises in the videos Best regards JC