Making Money in the Stock Market

Audra Lowe: To our next guest, the time has never been better than right now for making millions in the stock market. Phil Town is the author of Payback Time making big money is the best revenge. And he’s going to show us why we need to start taking matters in our own hands break away from the clutches of the mutual fund managers right? Let them go, let them go, let them ho, let them go. Phil Town: You can’t believe what's going on out there. Audra Lowe: It’s crazy. Phil Town: There's a giant scam being run on people and it’s really scary, so payback time tells you how to spend time. When the guys like Warren Buffet and the guy who has the Harvard endowment fund all agrees that mutual fund industries are a total scam. What are you doing putting your money out there with these guys. Audra Lowe: See this is what we’re talking about a whole different perspective here on the show too. And then you're going to tell me—you say that they steal--the mutual fund managers—steal as much as 60% or more of your returns over your lifetime. Phil Town: You can’t believe—you know that little charge about 1.5% that you pay every year—maybe you don’t even know what's there, but it is there. And that is about, get this—if you expect about 68% return on your funds over a whole lifetime of investing that little fee is 20% off the top. And overtime it compounds into about half of your money is gone. So if you would have had $500,000.00 in your retirement fund— Audra Lowe: So what are the steps that you say to getting your money back is fire the manager. Phil Town: You got to fire your fund manager. It’s amazing, there's a revolution of information out there—you’ve got the internet and you need to use your computer to help yourself because you got to protect your family from a marketplace that goes allover the place. Audra Lowe: If you fire the manager, how do you know what you're doing and how do you know that you're not going to do— Phil Town: That’s the best part of this, the very minimum thing you should do is getting an index fund. Okay, that doesn’t have a lot of fees. But everybody does that, if the market doesn’t go up, those aren’t going to go up either. And so what you also have to do is look and see where am I spending my family’s money, what are we focused on already. And by the companies that are making those things that you're already spending your money on. Audra Lowe: So do you think that all mutual funds are bad? And there's a lot of people there that works with companies. They're getting their money matched. Phil Town: This is crazy, the fortune has a study of this, Fortune Magazine? 4% of the fund managers managed to beat the index. The problem is you couldn’t identify which 4%. So this is about family protection, it’s self defense. And it’s about an education. The cool thing is it doesn’t take long to learn how to go pick a wonderful business. That’s all there is to it. if you find a good business, there's a lot of them and buying when they're on sale which amazingly is right now. Audra Lowe: This is a good time. Even in this economy, now is the good time to do so. Phil Town: This is when fortunes get made. What I'm talking about in my book payback time is about going out there and finding out how long it takes to get your money out of the business you invest in. I mean if you could buy McDonald’s and five or six years later you’ve got your money back. You didn’t know this position. For the rest of your life you’ve got McDonald’s you own it. Audra Lowe: You make it sound so easy though Phil. This is your background now, so a lot of people are nervous. Phil Town: I was in river guide for years. And I got thought this by a guy and I went out and did it. And it’s not that hard to do it. You’d be amazed. And I did it before the internet. You can do this. Audra Lowe: Well I know we have to go now, but I know that you and Suzy and your friends—but you don’t necessarily see eye to eye— Phil Town: I did we should do dollar cost average with the brand. Audra Lowe: It’s always going to have a different perspective though. Thank you so much. If you guys to learn more about Phil’s philosophy and how you can make it big in this economy, get a copy of his book, it’s called “Payback Time. Making Big Money is the Best Revenge.”