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Rethinking Retirement

21 Mar

Retirement to most people today means the end of working a job and living off of portfolio income (401k), a pension and social security. This concept, which is fairly new, is already obsolete. To understand this let’s examine its origins and progression.

Traditionally, in early America (from its founding until the mid 1880’s), when a family member was too old or physically unable to work, the other members of the extended family took care of him. However, four important demographic changes happened in America beginning in the mid-1880s that rendered the traditional systems of economic security obsolete: The Industrial Revolution, rapid urbanization, the disappearance of the extended family and a marked increase in life expectancy.

The Industrial Revolution transformed the majority of working people from self-employed agricultural workers into wage earners working for large industrial corporations. This meant mass migrations to urban centers where the work was to be found. In the crowded urban environments, family sizes were forced to get smaller. The cost of housing, clothing and feeding an extended family (grandparents, parents and children) was undoable in the new economy. This fostered the creation of the “nuclear family” (parents and children only) which most of us are accustomed to seeing today.

The final significant change happened in the early decades of the 20th century. Better health care, sanitation, and the development of public health programs, led Americans to live significantly longer. Between 1900 and 1930, average life spans increased by 10 years. This was the most rapid increase in life spans in recorded human history.

The net result of these historical demographic and social changes was that the traditional strategies for the providing for those no longer able to work quickly dissolved.

The decade of the 1930s found America facing the worst economic crisis in its modern history. Millions of people were unemployed, and the majority of the elderly lived in dependency. The traditional sources of economic security: assets, labor, family, and charity had all failed. Radical calls for action were being made by the public. President Franklin Roosevelt responded by signing into law The Social Security Act on August 14, 1935 to pay retired workers age 65 or older a continuing income after retirement.

Fast forward to today… Four major demographic changes have made that system obsolete as we emerge from the second worst economic crisis in US history. Change from the Industrial Age to the new Innovation Age, globalization, further dissolving of the nuclear family, and another marked increase in life expectancy.

The loss of manufacturing jobs, the increase of exportation of jobs, and importation of goods from the global economy has changed the face of the job market forever. Companies no longer promise work until retirement and a pension plan for your twilight years. Nuclear families have gotten even smaller and young people are more detached from their parents as this society celebrates individuality and independence over cooperative living. Finally, as medical technology improves, people are now outliving the age for which social security, their pensions and portfolios were designed to last.

The solution… the whole concept of retirement should be reevaluated. You only retire from a job (earned income) – especially a job you don’t enjoy. There is no retirement from passive income sources. With passive income sources that pay dividends (real estate, securities and business ownership), you work hard to acquire the asset and then it continues to pay you continuously until the market changes and it can no longer provide positive cash flow. You don’t retire; you simply shift your resources into a new cash producing asset.

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2012 Assessments for Recession Driven Riches

30 Dec

This article is an excerpt from the book, Recession Driven Riches by Heru Ur Nekhet, national Renowned Rags to Riches Guru.

Chapter 5
Make An Honest Assessment Without Judgment

“Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.”
-Will Rogers

“Don’t succumb to excuses. Go back to the job of making the corrections and forming habits that will make your goal possible.”
-Vince Lombardi

Despite the appearance of wealth created by the mass accumulation of material goods during the last boom (homes, cars, electronics, clothes, etc.), most Americans got into the habit of living on borrowed money. Still in denial and oftentimes overwhelmed by the gravity of their financial situation, the majority of those people now find themselves deep in debt with no feasible plan to get their heads back above water. Proper realignment requires you to perform an honest assessment of your current skills, confidence, resources, mental and physical health, time management, asset values, and soundness of potential business ventures or investments. It is easy to minimize or exaggerate your financial situation if you are judgmental about how you got into the situation.

In order to effectively create a plan of action to fix your current situation, you have to know exactly how much income you have from all sources (job, investments, business, etc.) as well as exactly how much money is being spent in that same amount of time. It sounds simple, however most people never take an accurate accounting of how much money passes through their hands each month or year. Be careful not to overlook any income or expense no matter how small it might seem. Even the small expenses add up over time. If you don’t want to use the old fashion pencil and paper method to create a balance sheet, you can use an online expense tracking website such as Wesabe.com or Mint.com.

It is important that you also check the current value of any assets that you currently own. These assets include your home value, investment property value, securities (stocks, bonds, mutual funds, IRAs, etc.) and any other holdings you might have. Oftentimes we invest in assets and just forget about monitoring them to make sure they are still worth keeping. For real estate values you can check propertyshark.com or zillow.com. For securities you can check morningstar.com to see if they are profitable. For other assets such as gold or silver you can go to goldprice.org, but for collectables you should get a professional appraisal.

How do you know if an asset is worth keeping? The answer is simple, if it is currently performing at a rate of return that meets your current needs, then it is worth keeping. If it is no longer performing to your standard and the prospect of a turn around is not imminent, then cut your losses and get rid of it. Let’s start with your home. If your current home value is less than the purchase price, then you are paying on a mortgage for the next few decades far more than the price will ever be again. You are financing something that will probably never be worth what you are paying. This raises a couple of issues. First, it will never gain equity so you cannot borrow against it. Second, you will never be able to sell it and recoup the money you put into it. If you have no desire to ever borrow against it (refinance) or to sell it, and you have no desire to take advantage of the fact that you can now get more home for less than what you are currently paying, then you don’t have to do anything. Enjoy your overpriced home.

After taking an assessment of your current assets, you must seriously evaluate what resources you currently have to work with. These resources might include cash reserves, creditworthiness, insurance, professional advisors (accountant, broker, financial consultant, attorney, etc.), support from family or friends, knowledge, skills, etc. If you find that you are lacking necessary resources, then part of your realignment plan must include gathering needed resources.

Some Things to Assess

  • Debts – credit cards, loans, mortgages, etc.

  • Investments – real estate, stocks, bonds, IRA, TDA, 401(K), bank account, Certificate of Deposit (CD), gold, collectibles, etc.

  • Asset Values – real estate equity, gold appreciation, stock prices, collectible value, etc.

  • Income Sources – job, business ownership, dividends, rental income, etc.

  • Relationships – partnerships, family, friends, dependants, etc. Are they supportive or detrimental?

  • Skills – relevance and market value of skills, obsolescence of skills, etc.

  • Resources – time, cash flow, credit, partnerships, professional team, etc.

  • Expenses (liabilities) – basic living expenses, appropriateness of expenses, where and how to minimize expenses, etc.

  • Insurance – appropriateness of coverage, lack of coverage, excessive coverage, cost of coverage, etc.

  • Taxes – appropriate shelters, deductions, structure, etc.

  • Information Sources –news sources, opportunities, networking events, clubs, organizations, advisors, mentors, etc.

Get You Copy of Recession Driven Riches Now at http://www.recessiondrivenriches.com/

Young, jobless and dangerous

6 Sep
Sept. 6, 2011, 12:00 a.m. EDT

Why the young jobless will ruin your portfolio

Commentary: Wealth is frozen between idle generations

 By David Weidner, MarketWatch

NEW YORK (MarketWatch) – Happy Idle Labor Day.

For most Americans yesterday was a day to exhale. Not only do they have jobs, they had reason to celebrate: a paid day off.

But for more than 14 million Americans, Monday was just another day in the soul-crushing reality of unemployment. If you add in the truly despondent, the people who have simply quit looking for work, the number is roughly 23 million.

Jobs data spells bad news

Market Beat’s Mark Gongloff explains the disappointing jobs report numbers and how this will affect our economy, in the Markets Hub.

This is a national tragedy. Hardest hit are the Americans who can least afford to be out of work. The recession has hit minorities hard. The unemployment rate is 16.7% among blacks and 11.3% among hispanics. The Bureau of Labor Statistics says that the work force is actually growing and yet more able-bodied and able-minded workers have nothing to do.

But there’s a bigger trend we should be worried about. What jobs exist are held by older Americans. The unemployment rate for teenagers is 25.4%. For younger workers aged 20 to 24, it’s 14.8%. Compare that to the 55-or-older category which is at 6.6% and hasn’t topped 7.5% since the recession began.

At this rate, the post-Baby Boom generations won’t need Social Security. After all, you need a job in order to contribute to payroll taxes and earn a return for retirement.

In other words, today’s younger Americans are bearing the brunt of the recession. But not only that, the economic slump is stealing important work experience from generations X, Y and the millennials.

In addition, now comes a troubling poll by Inc./WomanTrend that shows the financial and psychological toll this recession has taken on young Americans.

• More than a quarter, 27%, are delaying going back to school or getting more training.

• 28% are delaying saving for retirement.

• More than one out of five, 23%, are delaying starting a family and 18% are putting off getting married.

• And don’t expect younger Americans to bail out their parent’s housing mess. Nearly half, 44%, say they’re going to delay buying a home.

The upshot of the study, which included a margin of error of plus or minus 4%, is that the younger end of the work force is stalled — in numbers that suggest that even those who have jobs aren’t optimistic.

This should be raising alarm bells in Washington and on Wall Street too. It’s not only a matter of national policy, it’s an economic one. The leading edge of the Baby Boom is retiring this year. That means the primary holders of stocks and bonds and other securities will need to sell those securities for income.

Without a flourishing younger America, those securities aren’t going to have willing buyers. It’s a death spiral of market economics.

That means we’re all going to get poorer: young people with no money, older Americans with a bunch of securities they can’t sell. It’s going to get worse over time.

That is, of course, if recent trends hold up. As mentioned, more older Americans — those 55 or older — are working relative to other generations. Fearful of not being able to make ends meet in their golden years, they’re not letting go of their jobs.

By holding on, of course, they’re not passing the baton to younger Americans. So you can see the cycle: Older people keep working. More younger Americans are unemployed. The wealth is hoarded by the old folks. The wealth diminishes in value without anyone (younger Americans) to whom they can sell it.

That’s why we need a broad systemic fix to the system that focuses on getting younger Americans back or into the work force. Tax incentives for hiring younger workers is one obvious way. Government-sponsored work programs to build infrastructure is another.

Government and big business aren’t going to solve all of our problems. We need to ask younger and older Americans to accept less, be more entrepreneurial, be more resourceful. Both generations seem to be in a funk. Both are so worried about the future, they’re paralyzed.

And this is the real tragedy, one we don’t talk about. We’re all afraid. The problem is we’re not doing anything about it. Young people aren’t taking risks. Older people aren’t passing on the wealth.

When you’re stuck in idle, you’re not going to get anywhere.

David Weidner covers Wall Street for MarketWatch.

Computers Rule Wall Street

15 Aug

By Ken Sweet, contributing writer August 12, 2011: 7:08 PM ET

U.S. stock marketTraders said they’ve seen high-frequency trading volumes jump sharply since the beginning of the month, which may have ampilfied the recent volatility. Click the chart for more market data.

NEW YORK (CNNMoney) — The computers have taken over Wall Street, and they’re taking investors on a wild ride.

This week, the Dow swung back and forth more than 400 points on four straight days. Trading volume is at or near record levels.

It’s not fast-talking traders on the New York Stock Exchange behind the action. The majority of trading is done on large server farms based in New Jersey and elsewhere.

“These types of moves are certainly greater than anything we’ve seen in the last 10 years, and it’s absolutely because now the majority of the orders are being done by these high-frequency trading robots,” said Sal Arnuk, co-founder of Themis Trading, an independent brokerage firm.

High-frequency trading, also known as algorithmic or programmed trading, relies on software to determine when to buy and sell shares, usually based on a particular pattern or technical level in the market. These trades can happen several times a minute.

High-frequency trading makes up 53% of all trading in U.S. stock markets, up from 21% in 2005, said Larry Tabb, president and CEO of market research firm Tabb Group. Other estimates put it even higher, at around 65%.

Gary Wedbush, executive vice president and head of capital markets at Wedbush Securities, told Bloomberg News on Friday that more than 80% of the firm’s orders since Aug. 1 have come from high-frequency trading clients, at five times the typical volume.

Nearly everyone on Wall Street is involved in algorithmic trading in some form, Tabb said, including large banks, hedge funds and mutual funds.

“These firms often piggyback on large orders, so it can amplify a stock’s movement,” Arnuk said.

Experts don’t blame high-frequency trading entirely for the market’s nauseating moves, but they say it certainly exacerbates them.

The Securities and Exchange Commission in a report blamed high-frequency trading in part for the May 6, 2010 “flash crash,” when the Dow fell nearly 1,000 points in minutes. To top of page

First Published: August 12, 2011: 7:05 PM ET

5 cities where home prices will rise this year – New York Made the List

11 Jul

July 8, 2011, 12:27 p.m. EDT
5 cities where home prices will rise this year
In a surprising twist, a Florida housing market makes the list

By Amy Hoak, MarketWatch

CHICAGO (MarketWatch) — Despite recent price improvements nationally, only five markets in the country are expected to see home-price gains for the remainder of 2011: Washington, New York, Orlando, Dallas and San Francisco.

That’s right, Orlando, Fla., where prices have fallen 63% from their peak.

How to get your house a TV makeover
Vern Yip, interior designer and star of several TV home improvement shows, tells MarketWatch’s Amy Hoak about his latest design ideas and how to get your house on a TV makeover show.

More home-buying advice
• Top 10 cities for foreclosures
• The 6 must-have spaces in your next home
• Top tricks to sell your home if all else fails
• Five red flags when buying short-sale homes
• The retirement houses of tomorrow
Mortgages
• New mortgage fees mean costlier loans
• A 15-year mortgage isn’t for everyone
• More homeowners opt to quit paying mortgage
• Refinance in less than year? Maybe
• Refinancing mistakes to avoid
Home Video
• 10 priciest, 10 cheapest home markets
• Organize your small spaces
• Kitchens that make cooking fun
• Homes that help you as you age
• Dream kitchen on a budget
• Say goodbye to McMansions
See the entire MarketWatch Guide to Real Estate

This is according to Clear Capital’s home data index forecast, released Friday. The company provides real-estate valuation and risk assessment information for financial institutions.

Granted, prices are expected to be up only 0.7% through the remainder of the year in Orlando, said Alex Villacorta, director of research and analytics for Clear Capital.

“This is really a drop in the bucket compared with where this market has fallen,” he said. Yet it’s an encouraging sign of stability for a housing market that suffered the majority of its losses in 2008 and 2009, Villacorta added.

On a national basis, home prices are expected to fall another 2.4% for the second half of the year, according to the report.
A return to normalcy?

Still, recently there have been some hopeful signs that housing is at or very near the absolute bottom, he said.

Home prices rose 0.9% in the second quarter, compared with the first quarter, following nine months of price drops, according to Clear Capital.

In the S&P/Case-Shiller home-price index of 20 cities, prices were up 0.7% in April, compared with March. Read more: U.S. home prices up for first time in eight months.

Some may argue that the increases are seasonal and prices are up because more home buyers are in the market when the winter months end, Villacorta said. But even a seasonal blip is a good sign for a housing market that has been depressed for years now.

“We haven’t seen any seasonal blip in some time, so even if it is, it is a sign that markets are returning to normalcy once again,” Villacorta said.
Struggling markets

That said, not all markets have had a strong first half of the year.

Parts of the Midwest, for example, saw significant price drops in the first half of 2011. In Detroit, prices fell nearly 20% during the six months, with prices falling an average $12,000 on a typical $62,500 home there, according to the Clear Capital report.

On a national basis, prices fell 3.2% in the first half of the year.

A separate survey from Fannie Mae, released on Thursday, showed that a growing percentage of Americans aren’t optimistic about home prices in the year ahead.

Twenty-five percent of Americans expect prices to fall during the next 12 months, up from 19% who said the same in May, according to the Fannie Mae survey of 1,000 adults. Read more: Home price outlook worsens in June.

“We see a continued lack of confidence among consumers on home prices, the ability to sell their homes, and the state of their personal finances — all of which point to housing as a continued downside risk to economic growth going forward,” said Doug Duncan, vice president and chief economist of Fannie Mae, in a news release.

Here’s a look at the lucky five home markets:
1. Washington
Washington, D.C. is one of only five regions in the U.S where home-price trends are expected to improve during the rest of 2011.
2. New York
Home price trends in the northeast are expected to decline 0.8% overall, but in New York, above, real-estate prices should rise.
3. Orlando
The second half of 2011 could be good for hard-hit Orlando, Fla., where prices for homes and condominiums like this could rise by as much as 2%.
4. Dallas
A balance between prices and inventory could help support prices for homes like this one, for sale in Dallas.
5. San Francisco
San Francisco’s one of only five cities nationwide where home price trends will likely improve during the remainder of the year.

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Knock, Knock… Who’s There? OPPORTUNITY!

19 Apr

Greetings Insider:

It’s amazing how the mind works. You know you are not happy with your current financial situation, and you know that if you do the same things you did last year your financial situation is not going to get better… as a matter of fact, it will probably get worse. Yet, you still find yourself creating excuses why you aren’t willing to sacrifice two hours of your time to find out exactly how you can turn your financial situation …around. This is insane, especially when there is nothing to risk and a world of OPPORTUNITY to gain.

I know it’s not easy to make changes, even if the changes are good for you, and I know having a job and a family is tiring. Before 2004 I was in the same boat as you. I had a job that didn’t quite meet my expenses, family obligations and zero energy left at the end of the day. It wasn’t until I was sick and tired of working hard just to not have enough that I was able to take the right action, connect with the right people, and walk away from being broke and miserable forever.

I want to share with you the hard fought knowledge that I gained while turning my life around from having a $45,000 debt and a dead end job, to retiring at age 36, acquiring millions of dollars worth of real estate, several successful businesses and the comfort in knowing that I will never have to have another job in my life.

I hope you don’t have to hit rock bottom before you decide to take action, but if you can find just one good reason to drag yourself to this workshop I’m offering on Wednesday (4/20) at 7pm (If you absolutely can’t make Wednesday, I have one more date on Saturday 4/23 at 1pm). I’m holding nothing back in this truth revealing workshop about how wealth is really created and how you can cash in on the trillions of dollars being left on the table because others haven’t cracked the code to profiting in this new economy.

Multilevel marketing will not solve your problem! Dumping money into a 401K or Roth IRA is not the answer! And trying to acquire properties using short sales or REO’s is not the solution either! To find out how REAL money is being made, register for this powerful workshop “Insider Secrets to Financial Freedom” at 216 Greene Avenue in Brooklyn on Wednesday, April 20th at 7pm .

For information as valuable as this, you could easily expect to pay a thousand dollars or more. But I’m offering it to you absolutely FREE so don’t waste time registering. Warning: Because of space constraints, this offer is limited to the first thirty people to respond. (This email is going out to 278 people. So, register immediately by emailing me back right now or calling 718-622-2271 to secure your seat!)

I can’t force you to come. It’s always going to be your choice whether you get wealthy or not. To be honest, making lots of money and having plenty of free time isn’t for everyone. Some people need to work for someone else for the rest of their life. Only you know if you are ready… If you are ready, then call now or email me. I look forward to sharing in your success.

SUCCESS!!!!!!
Heru Nekhet
Taking Ordinary People From Rags to Riches

PS – If you could discover how you can quit your dead end job and have a steady stream of income for the rest of your life, it’s certainly worth two hours of your time. But since you may still be skeptical, I’m going to guarantee that this workshop will absolutely blow you away. If you don’t agree that his is the most mind blowing workshop you have ever attended, I’ll give you a crisp $20 bill for wasting your time.

PPS – Feel free to pass this on to family and friends

Insiders Group, Inc.
216 Greene Ave., B’klyn, NY 11238
718-622-2271
http://www.InsidersGroup.com

article: Facebook, Zynga, Groupon minting billionaires

7 Apr

This is a pretty interesting piece published by MarketWatch a few weeks back in how internet entreprenuers are wasting zero time in cashing in on their investment…which makes sense given the current financial climate. Yet, as I repeatedly tell you all in my classes, videos , etc…money doesn’t disappear, it just gets transferred into other outlets.  These millionaires are proof positive of that.  Check it out for yourself and let me know what you think:

Facebook, Zynga, Groupon minting billionaires

Commentary: Internet insiders who don’t need IPOs to cash in

By John Shinal of FINS.com

Early investors and executives of the hottest Internet startups know something that retail investors hoping to get rich on their expected IPOs may not: A sizable chunk of the value in companies such as Facebook and Groupon has already been cashed out.

And most of what hasn’t will still belong to insiders after any initial public offering.

Take Groupon, the fast-growing online coupon service that was founded in late 2007 as a way to help people raise money for their favorite causes. Since morphing into a group buying site, it’s raised a tidy sum of money for its owners.

When Groupon closed a huge investment round near the end of last year, the majority of the $950 million it received didn’t go to fund company operations. Instead, $573 million, or 60%, was paid to existing shareholders selling their stakes, according to a January SEC filing.

It was the second time in less than a year that Groupon insiders were selling, as a filing for the company’s previous round, in April, 2010, said part of the amount raised was used to “facilitate liquidity for employees and early investors.”

That means founder and CEO Andrew Mason and other early employees, as well as venture capital investors New Enterprise Associates and Accel Partners, likely don’t need an IPO to get rich off Groupon, which is reportedly now raising another round that could value it as high as $15 billion.

The same holds true for those who were early into any of the latest batch of fast-growing Web companies. Based on public filings and widely reported valuation of private-market transactions, the combined worth of equity in Facebook, Twitter, Groupon and Zynga Game Network is somewhere between $75 billion and $90 billion.

If accurate, those reports mean their aggregate valuation has more than doubled in less than a year. And with reports of new funding rounds emanating almost weekly, the valuation continues to grow, leading some to call the investment climate a new Internet bubble.

“Whenever you have new value being created, you’re going to have a bubble,” said Tim O’Reilly, founder and president of O’Reilly Media and a veteran observer of Silicon Valley. “Investors don’t know how to value it.”

Even if the market crashes and investments in the second wave of Web companies never pan out for individual investors, those with big stakes in the startups are staring at big future gains and, in some cases, have already pocketed some major cash.

Facebook

In January, Facebook said it raised $1.5 billion of investment that valued the company at $50 billion. The latest round came from Russian investment firm DST (formerly Digital Sky Technologies), Goldman Sachs Group Inc. (NYSE:GS) and Goldman’s non-U.S. clients.

The valuation was more than twice the $24 billion the company was reportedly worth in July, 2010, in private market trading. Since then, global users of the world’s largest social networking service increased to 600 million from 500 million.

More recent talks reportedly value Facebook at $65 billion. At that level, co-founder and CEO Mark Zuckerberg’s 24% stake is worth more than $15 billion, by far the largest stake in the company. Several other early employees and investors also have multibillion-dollar stakes in Facebook.

Russia’s DST and the Silicon Valley venture capital firm Accel Partners each own 10% of the company, with each stake now worth $6.5 billion.

Facebook co-founders Dustin Moskovitz and Eduardo Saverin own stakes of 6% and 5%, respectively worth $3.9 billion and $3.25 billion. Sean Parker, an early investor and former executive of the original Napster music service, owns 4%, worth $2.6 billion. Peter Thiel, who founded PayPal and now runs a hedge fund, owns 3%, or $1.95 billion.

Trading in Facebook shares reportedly is active in private markets such as SecondMarket, suggesting that at least some early Facebook investors are cashing out.

Several reports have pegged Facebook’s 2010 revenue at $1.97 billion, and one private investor who has seen the company’s financial reports told me it generated $680 million in cash last year.

The company, based in Palo Alto, Calif., declined to comment for this story.
Twitter

In December, Twitter reportedly raised $200 million, valuing the company at $3.7 billion. Investors included the marquee Silicon Valley venture capital firm Kleiner Perkins.

The valuation is more than triple the amount that investors paid in a funding round just a year earlier. Recent discussions have pegged the company’s worth at up to $8 billion, making the stakes of Twitter co-founders Biz Stone, Jack Dorsey and Evan Williams likely worth several hundred million dollars apiece.

That’s not bad considering that Stone, in an onstage interview at a Federated Media conference in February, said of Twitter: “we’re just in the early phases of being a real business.”

The San Francisco-based company is not profitable and had 2010 revenue of $45 million, according to The Wall Street Journal.  Among other Twitter shareholders are several prominent tech investors including Ron Conway and Marc Andreesen and venture capital firms Union Square Ventures and Charles River Ventures.

Twitter didn’t respond to a request for comment.

Zynga Game Network

Zynga, a maker of social games played mostly on Facebook, is reportedly in talks to raise a $250 million funding round that values the San Francisco-based company at between $7 billion and $9 billion.

That’s a huge leap in valuation for a three-year-old startup that in April, 2010, filed papers to issue new stock that valued the company at $4 billion. In December, 2009, Zynga raised $150 million from Digital Sky Technologies in a transaction that reportedly valued it between $1.5 billion and $3 billion.

In July, 2010, Zynga took $147 million in investment from Softbank (PINK:SFTBY) , (TOKYO:JP:9984) , a Japan-based Internet investment company, as part of an agreement to create a joint venture called Zynga Japan.

At the more recent valuation, founder and CEO Mark Pincus’s stake could be worth at least $1 billion, given that founding CEOs with no co-founders typically own at least 10% of their startup if the company is profitable early on, as Zynga reportedly has been. Read related story: Millions at stake as startup equity pay rises.

The company generated $400 million in profit last year on revenue of $850 million, the Journal reported.

also check out their reference article: Facebook, Twitter, Zynga Bubbles Minting Millionaires