"The Five Laws of Wealth Creation"

 

"The Five Laws of Wealth Creation"

1) Set A Goal

Work with your financial advisor for the answers to these questions:  Where am I today financially? Where do I need to be? How will I get there?

2) Use Other People's Expertise

Use the wealth of knowledge and experience of your financial advisor, Accountant, lawyer or role model in your planning for financial security.

3) Use Other People's Money

Home ownership works with borrowed money and investing can too. Paying one lump sum for a home is beyond our means, just as saving large sums every month for investing is unachievable for most people. But there is an alternative, and that's borrowing to invest. We call this Upvesting. Think of it this way: Rather than using a $100 pre-authorized checking loan to invest in a mutual fund you could qualify for an Upvest loan of $14,000.00. You could invest that $14,000.00 now and get the full amount working for you years sooner. Speak to your financial advisor about the risks and rewards of Upvesting.

4) Pay Yourself First

Very few of us will get rich quick, so we must be disciplined and consistent in our wealth creation approach. Save 10% of your gross income each month and pay yourself first. It's not how much you earn that matters, but how much you keep.

5) Buy Hold and Prosper

True investors are those who concentrate on buying businesses rather than stocks. Their three common goals are to: Preserve wealth - Grow wealth at an above-average rate of return - Minimize the impact of taxes.

To preserve and grow wealth, true investors strive to own the highest quality businesses in strong, long-term growth industries. By holding these excellent businesses for the long term and ignoring the daily market noise, their wealth grows free of the ravages of tax.