James Marchese Offers Keen Financial Advice in the Wake of the GameStop Saga

James Marchese Offers Keen Financial Advice in the Wake of the GameStop Saga

James Marchese tells readers how to invest for long-term prosperity.

GameStop has been recognized worldwide when a large number of individuals decided to buy up the stock, sending the stock value rocketing into the stratosphere. Long-term investors had shorted the stock based on the company’s current financial challenges, and these short sellers lost billions of dollars in a matter of days. The situation has provoked a lot of discussion about how (or even if) such a fiasco should be prevented by government and Wall Street interference in the future. Successful entrepreneur and business owner James Marchese steers clear of politics and instead offers aspiring investors wise advice on how to turn profits long-term.

“For the twenty-five-year-old investor, a $5,000 investment with a 20% annual return will be worth a million dollars by the time the investor is sixty-seven years old. The point is not to get too greedy. GameStop was $483 a share and now is $63 (as of February 7, 2021),” James Marchese notes. The drastic fall in price isn’t a surprise to anyone who has experience investing in stocks and bonds. Investors know that there is always something suspicious about stocks that immediately and drastically rise in value while a company struggles with financial and other challenges. The GameStop stock was shorted in the first place because the company wasn’t doing well for an extended period of time. Sadly, most people who made vast sums of money from investing in GameStop stocks lost their money just as quickly once the buying spree ended.

Some people managed to buy their stocks before they hit peak value and sell them before they crashed, thus earning huge amounts of money. However, even these lucky individuals didn’t make as much as they would have with a wise investment strategy. The IRS charges a hefty tax for short-term capital gains; that is, any profit turned from buying stocks and selling them less than a year later. On the other hand, long-term investors who hold onto stocks for over a year qualify for the long-term capital gains tax rate, ranging from 0% to 20%. Even higher earners won’t pay more than 23.8% in capital gains tax and net investment income tax for long-term investors, while short-term stock buyers and sellers face a tax rate of up to 37%.

James Marchese encourages would-be investors to buy real estate and invest in their 401(k) (or other tax deferred plans) instead of picking speculative individual stocks. He recently noted that there is a huge demand for housing and this will continue even after foreclosure moratoriums are lifted, and pointed out that rock-bottom interest rates could help buyers save a lot of money. Even so, James Marchese doesn’t just invest in the real estate market. This year, his mortgage bank made unconventional stock purchases based on James Marchese’s market and political analysis acquiring cannabis stocks, renewable energy stocks, online retail as well as traditional tech stocks like Apple and Amazon. Marchese turned a significantly greater return on investment far exceeding the DJIA, NASDAQ and S&P 12 month average . James Marchese advises would-be investors to apply the rule of 72 to their investment plan.

Simply put, this rule states that an investor should divide 72 by the rate of their return. The answer is the number of years it would take a person to double their original investment. Based on this estimate, financial pundits note that a person with a 10% return on investments would earn a 100% profit in approximately seven years. Experts point out that the rule isn’t an exact science as taxes, fees, and other expenses will cut into one’s earnings; however, the rule is still an excellent way to estimate ballpark earnings for any good investment plan. It holds true for individuals who research the market and find ways to minimize fees and lower their tax rates to maximize profits.

James Marchese has always put a premium on careful, safe investments and long-term financial planning. As a mortgage company owner, he takes pride in helping clients obtain an ideal mortgage or home refinance loan. What’s more, James Marchese also enjoys commenting on financial issues to help readers make smart investment choices. He urges readers to steer clear of GameStop-style investment opportunities and instead either invest in the real estate market or select stocks from companies that have the potential to perform well financially now and in the future. Making wise investment decisions won’t turn five to six-figure profits such as those seen by individuals who invested in GameStop stock; however, it will steadily increase one’s value until an individual has far more than they initially started with.

1. If you’re from New Jersey, Pennsylvania, California or Maryland and would like a rate quote for purchase, investment property or refinance go to https://www.mtgnow.com/. Free free to apply online https://mtgnow.com/apply/ and ask for Jim Marchese for a personal consultation.