Posts Tagged wealth building

The Four Types of Wealth to Leave your Heirs – You are Richer than you Think

You may not consider yourself wealthy but if you are reading this chances are you have more true wealth than you can even imagine.  In addition, you have an opportunity few will ever know, the opportunity to pass on four types of limitless wealth to your heirs.  To pass on this wealth you must be purposeful in the legacy you leave, because if you are not you will pass on poverty and hardship to future generations, even if than is not your intention.

For the purposes of this article let us define wealth as a perpetual passive stream of income that meets all of your needs, most of your wants, and allows you to pass on a legacy of wealth for the next generation. 

Now that we have defined what wealth is let’s discuss the for different types of wealth and how to build them, enjoy them and leave them for the next generation.

The first type of wealth are your CORE Wealth or Human Wealth.

 

Core assets are your Values, your Health, your Character, Family, Talents, Habits, Spirituality, and Heritage. It would be impossible for you to be where you are now with out these core assets. Teaching your children how to be happy, healthy, and loving human beings is essential to their prosperity. People who do not enjoy the benefits of being well endowed in these areas rarely find happiness because they are totally disconnected from any core values and family.

The next area of wealth is your Intellectual or Wisdom Assets.

 

This includes your knowledge, Education, Skills, Systems, Ideas, Methods, Experiences, Reputation and Traditions. It is important for the current generation to teach the next generation how they became successful. Most financial wealth comes from systems, methodology, and connections.  People often remark that people from certain families or members of certain groups seem to find success so easy, but that is intellectual wealth in action.  To build this wealth make sure the next generation knows what you know. Write it down and pass it on. Mentor the next generation so they can skip some of the struggle and build on a more firm foundation.  Do not send your heirs out into the world to start for scratch to prove a point. I have seen my community do this with its children and in the end it killed the wealth of the entire family because time, energy and money was wasted because there was no one to carry on the family legacy.

The next type of wealth is Financial Wealth or the Material wealth.

 

This includes your Real Estate, Stocks, Bonds, Cash, and other possessions. It is important to note that this type of wealth is just the things not the means to acquire the things. It is because so much focus is placed on this area of wealth that it is said wealth never last more than three generations. Become a student of the wealthy and what they do with their money. Forget about the stock market and all the crazy risk that poor people take. The wealthy use simple income protected and insured method to preserve their well for centuries to come. There are billions of dollars in family trust that can never be squandered because it was built properly.

The last area of Wealth is your Contribution Wealth or Civic/Social Wealth.

 

This wealth includes your Taxes, Charities, Time/Talents, Family Foundations, and donating your wisdom to others in need.  These good works and giving to the community at large keeps you connected to the wealth of the entire community which ultimately benefits you and your family. Not passing on a tradition of giving and contributing to the community lowers your standing in the community.  Make giving apart of your children’s lives. Attend and support charity events that align with your values. Feed the hungry and cloth the naked. Don’t wait until you have millions, do it right now.

Core wealth, Intellectual wealth, Financial wealth, and Civic wealth put together almost certainly assure a person will have a wealthy life and each area provides an ongoing passive stream of riches that will allow you to meet all of your needs, most of your wants and leave and even greater legacy to the next generation.

Look at the great families in your community and around the country and you will see them operating in all four of these areas. You will see that their wealth is never depleted because they have passed on much more than money.

If you had to give up one area of wealth and keep the other three, it would be wisest to give up the Financial Wealth because with the other three types of wealth you could get your money back in a very short time.

Wishing your Wealth, Wellness and Wisdom

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What Happens When You Begin to draw from your IRA, 401K,403B, or Thrift plan in Retirement

Tony Brayboy discusses the reality of retirement plans and the small amount of spendable income that comes from traditional plans. Mr. Brayboy makes a case for focusing on INCOME instead of Lump Sums.

If you want to understand how to create the income you are looking for start here. Purchase and study this simple $7.00 book.

Go here Now:
Tony Brayboy’s The Big Payback http://readthebigpayback.com/3-matrix/

Wishing you Wealth Wellness and Wisdom

Mark Fuller – Manager of Wealth

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Watch This – PBS Frontine – The Retirement Gamble

the retirement gamble

http://www.pbs.org/wgbh/pages/frontline/retirement-gamble/

We have built a retirement system that violates the golden rules of investing. For the last three decades people have been investing in nameless faceless companies with great marketing and poor returns. It is time you understand that’s it’s not at what age you retire but at what income.

Click on the link above and watch what’s really going on in America’s retirement system. Don’t worry we are going to talk solutions in the next blog post.

Wishing you Wealth, Wellness and Wisdom

Manager of Wealth

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The Fruits and Vegetables of Proper Personal Finance

A grocery store is a complicated place to shop if you want to truly be healthy and live a long life. More Americans are seeking to preserve their QUALITY of life through better eating and are now coming to understand that their choices in the grocery store must change.  The world of personal finance, wealth building, and retirement planning has the same challenges as shopping in the grocery store. There are lots of good-looking investment and savings options but very few that are actually good for you.  Few will give you the desired outcome which is a long happy life with enough passive income to enjoy your retirement and leave wealth to your heirs.

Below are a few simple rules that will help you be a better consumer of both food and financial products.

Rule 1 for Food

90% of your groceries should be real food from the produce aisle. The more raw food and living food you eat the more real nutrients you will absorb and the better your health will be. 90% of what is in a grocery store is not Food. It is a chemical compound that is packaged in an attractive wrapper but it is not food. Oreos, Twinkies, frosted flakes, spaghetti sauce etc, is not food. Apples ,Oranges, Carrots, Kale, and Bananas are food. If it comes in a package it’s probably not food.

Rule 1 for Finance

90% of all investment produces are prepackaged nightmares that come with too much risk. Avoid as much as possible IRA, 401k, 403b, Thrift savings plans, and mutual funds. These plans are mostly prepackaged garbage with very high hidden fees and lots of market risk. These products can only perform in a raising market but get hit hard every time the market falls. These products are the junk food of the finance world and American baby boomers over consumption of these products produced the greatest bull market in history that took the market to 10000 and beyond. Wipe away all the sales and marketing nonsense and realize that the stock market took off from 1982 to 1999 because baby boomers put all their money in their companies 401k,403b, and thrift savings plans and bought mutual funds. Did I mention that this group has 70% of all of the savings in the country? Over the next decade they will walk away from these products and kill the market for the rest of your lifetime. Avoid these plans and stick to safe products with guaranteed income and favorable tax treatment. You should be investing to create a pension or even multiple pensions. A focus on income and tax reduction is really all you need to understand about planning for retirement. Focus on INCOME!

Rule 2 For Food

Rarely do grocery stores market things that are good for you because they are not sexy. The sexy stuff comes in a fancy package and has a marketing slogan. There is a marketing campaign for every cookie, every toxic chemical in the cleaning aisle, every low sodium TV dinner. If it has a commercial or a mascot and people are buying it avoid it like the plague. When is the last time you saw a commercial for a grape or Kale. You body struggles to break down the things you see commercials for but it absorbs the nutrients out of the real food items.

 

Rule 2 For Finance

If it has a commercial in finance it probably has little to no financial use and too much risk. People are buying their insurance from lizards and Geckos, and dancing bears. They are being sold on the lowest monthly cost without considering what type of coverage they get for that money. That improper coverage leaves them exposed to many risk. They are walking around carrying big Orange Numbers asking “what’s you number.”  The question has never been at what age you retire but at what Income. That big orange number doesn’t tell you how much money you can spend a month and what your tax burden will be.

The best financial products are not marketed on TV. The wealthy use another group  products that are they are safe and unsexy. The wealthy look for income and products with low or no tax.  In addition, they look for companies that have a track record of paying for 100 years or more. It’s hard to make that sexy, but that’s why the wealthy are wealthy.

Rule 3 For Food

Drink lots of Water but not bottled Water

 

About a decade ago the country finally got to the point that it agreed that water is very good for the body. This was a good thing. From that discovery the industry of bottled water took off. People stopped trusting water out of the tap and started carrying water everywhere they went. Grocery stores began to stack bottled water as high as they could and a trend began that shows no sign of slowing down, ever. In fact ,the worst public water gets the more bottled water will be sold. There is just one problem with this and that is that the bottle that holds the water is poisoning the water and that poison can cause cancer. In addition , fresh water loses its’ real value after three days so all the water in a grocery store is dead water, not fresh spring water like the package claims. Great idea but poor execution.

The proper water filters and a system that gives you alkaline water in PBA Free bottles is a simple solution. This truth represents a loss in sales of billions to the bottled water industry and the grocery store so don’t expect to see this anytime soon.

Rule 3 for Finance

Save as much money as you can for retirement but not in retirement plans

Americans have one of the lowest savings rates in the world. That may be because people have seen their savings wiped out over and over again since they started investing in the stock market in the 80s. The S & L crisis, the crash of 1987, the tech bubble 0f 1999, the real estate bubble of 2008, at least once a decade people are getting hit hard and that makes them not want to save. When America was a pension society they saved a lot more. It’s not that saving is wrong but like bottled water it’s the package you wrap your savings in. Why put your savings in the stock market? Why tie your life insurance policy to the stock market? Why play hunches and trends?

We can save in solid tax advantaged , non market exposed products that state the return before we invest. We can use produces that have no exposure to the up and down of the market.  We always move forward no matter what is happening on Wall Street. Three simple questions to ask are, Can I lose Money, What is the guaranteed return, and What is the tax consequence. The answer should be favorable for all three before you invest.

 

Grocery stores and investment firms are big shining beautiful places with options and products laid out all over the place. Knowing which to choose is a matter of a proper education that develops into a sound philosophy. If you haven’t invested in that education then you simply put yourself at risk every time you enter either of these institutions. If you need a place to start try reading a simple text written by author Tony Brayboy called The Big Payback, it’s a short instructional book that’s worth a million dollars .

Here is the link: http://readthebigpayback.com/3-matrix/

Wishing you Wealth, Wellness, and Wisdom

Mark Fuller

Manager of Wealth

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If you Wake Me Up Early , Please Know How to Read and be Ready for a Happy Ending!

If you Wake Me Up Early , Please Know How to Read and be Ready for a Happy Ending!

Everyone that knows me, knows that I have two standing house rules. The first is do not ever come by my home unannounced, especially early. The second is don’t ever come to my home with Drama, especially early.
I always wake up early but I never like to communicate early because this is my quiet time to get my thinking and planning done. The last thing I want is someone in a panic busting into my space. Not to mention, that having company requires you to be a good host and put some pants on.

One morning back in 2007 as the financial world was just beginning to show major signs of weakness I received a morning caller ringing my door bell at 7 am. As I answered the door asking who it was all I heard was “hey it’s me I really need to talk to you let me in.” I wanted to be impolite but I could hear the concern in her voice so I hit the buzzer to open the door.

When she came through the door I could see she was extremely upset and angry to put it mildly. When I asked what was the matter she told me that she just realized that her financial planner had lost several hundred thousand dollars of her hard-earned money.

As she began sharing with me that she was coming off the best year of her life she took out her tax returns to show me the four hundred thousand dollar profit she had made which she promptly turned over to her broker for saving. He promptly placed the money in the stock market and it promptly evaporated due to a downturn in the market.

As I read the tax return I was stunned by what I saw in the financials of the company. That year the firm had 1.5 million in gross sales revenue and a net profit of 400 thousand after all salaries and expenses. A great year for any small service business. But then I noticed a jewel on the tax return and despite the hostile mood I got happy.

Immediately she asked what I was so happy about and I pointed to the tax return. What’s so great about that now that my money is gone. I pointed her attention to the marketing expense line which showed 100 thousand in marketing expenses that generated 1.5 million in sales revenue.

I went on to explain that if she had spent 100 grand for 1.5 million dollars in sales and made a 400 thousand dollar profit all that was needed was to double the marketing budget doing the same campaigns that generated the first 1.5 million. The additional million or more that would be generated would be mostly profit because all of the office expenses, salaries, and overhead would have already been paid. If she spent an additional 100k in marketing and generated at least 1 million dollars she would profit 700 thousand on that million.

Of course I told her, as I always had, that her broker wasn’t worth a damn but not because he was a bad guy but because his financial education didn’t allow him to really look at his client and give them the proper advice. Anyone with any financial IQ would have advised this client to invest more heavily in the business because it was clear that this business had a marketing plan that was working and they were still far below their potential.

Most investment advisors can only tell you what they were trained to tell you. “Invest in good markets because its going to get even better and invest in bad markets because the market will turn around.”

If this encounter had taught me anything it was that most business owners don’t know how to read the numbers. The most important numbers in the tax return is the marketing cost and the gross sales. Once you really have a formula for generating money you can figure out how to bring those cost down by generating more sales more inexpensively.

The other thing I learned is the returns are always higher in business than in the market. I know lots of millionaires from many different types of mom and pop businesses but almost no stock investing millionaires. I bet the same is true for you.

Lastly no matter how bad it seems, even when you have lost hundreds of thousands or millions, as I have personally experienced, there is always a happy ending once you get the numbers figured out.

Wishing you Wealth, Wellness, and Wisdom

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Mark Fuller – Manager of Wealth

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The Myth of Dollar Cost Averaging

Tony Brayboy of Matrix Wealth Management

http://www.matrixwealthmanagementllc.com/

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Is Occupy Wall Street the Beginning of 21st Century Civil Rights?

People have taken to the streets because something is really wrong in America and they want change. What type of change they want and from whom is unclear at this moment, but Action is always a good start.

Is Occupy Wall Street the beginning of a 21st century civil rights movement? My answer is Possibly with a smile. I smile because although we have revised history to make ourselves the most moral people on the planet earth, the truth remains that we are far from completing the goals of the 20th century’s Civil Rights Movement. The truth is America ALWAYS takes a very long time to do the right thing. And lots of people get hurt in the meantime.

We are the country that wiped out most of the native people who were here before us, kept slavery in effect for 4 centurys, called the country free in 1776 but didn’t allow women to vote until 1920. Of course we didn’t have a Voting Rights Act until 1965. It took until 2011 for Gay Rights in the military. And yes we used to have children working in coal mines because our child labor laws were terrible for the first few hundred years. I could mention so many things that are basic human rights in the country that took way too long to come to pass but you get the point. We can see injustice and keep going along with it better than anyone on the planet but once we decide to do the right thing we want the world to adopt that view and we condemn anyone who is not so enlightened as America.

Occupy Wall Street can build itself into one of the great movements.  At its center is the idea that people should have a fair chance in life and not have to worry that the banks and other financial institutions are stealing their futures. It is a great idea that is taking shape but it will take time and those in power will not go quietly.

More importantly those that lead and support Occupy Wall Street should know that they will not be supported in word nor deed by the majority of people who will be helped by their efforts. 

The leaders of Occupy Wall Street should be prepared for lots of criticism from the very people they seek to help. Just as Martin Luther King and the civil rights workers did. Just as the women from the womens rights struggle did. Just as the first abolitionist did. They may live and die with high disapproval ratings like King only to one day be remade into champions of all Americans.

Power concedes nothing.  This system was not undone by credit default swaps and bad banking. It was doomed with passage of the Retirement Act of 1978 that created the IRA, 401K, thrift savings plan, and 403B. At that moment all of America’s workers became stock market gamblers with no real experience. That moment brought us here because America’s life savings flooded the market and created faux wealth of every type. That is what we must undo.

Slay that dragon and maybe we have a chance to survive. If we keep that system alive and keep training advisors the way we do now with the greatest compensation going to the plans with the highest risk we can not recover.

Will a 21st century civil rights save the people? I have no idea but we should do right because right is the right thing to do.

Will we recover? Yes we will recover, but perhaps not in your life time because in America we take a long long long time to do the right thing.

Wealth Wellness and Wisdom

Mark Fuller

Manager of Wealth

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