By Gary Simpson
Let's face it, most people want greater wealth than what they already have.
Wealth means not having to worry about being able to pay the seemingly never-ending flood of bills that we are drowned with most of the time. Wealth means a comfortable lifestyle, a luxury home, a nice motor vehicle, vacations, travel, beautiful clothes and all the trappings that having an abundance of money brings.
Most people have NO PLAN to attain such a position of wealth.
Perhaps the most common plan, if you could call it that, is the weekly purchase of a lottery ticket. Somebody has to win the big one. Right? You've gotta be in it to win it. Right?
So, do you want to know WHEN you will win that big lottery prize? Allow me to afford you a sobering thought...
Imagine, just for a moment, that you were standing shoulder to shoulder in a massive line of one million people. Imagine now that you were informed that the heavens were going to open up and that a bolt of lightning was going to descend and kill ONE person instantly.
How safe would YOU feel? There are 999,999 OTHER people in that line.
OK. Now reverse that method of thinking. How sure do you feel that you can win that elusive big lottery prize now?
If your wealth creation strategy is nothing more than you pinning your hopes on winning a big lottery prize then, I'm sorry, but you are living an Alice-in-Wonderland existence. It ain't gonna happen.
Yes, I know - somebody has to win it. Somebody always wins it.
I'm not trying to tell you not to play the lottery. I often buy a ticket myself. It's a bit of fun. However, if you are sweating on this as your main method to create wealth then you are deluding yourself.
The vast majority of wealthy people worked for it. They had a plan, they stuck to it and over a period of time they became wealthy. Isn't it time that you started to put a plan in place for yourself? Relying on the huge lottery win makes no sense at all.
Find a plan. Work the plan. Let the plan make all your dreams come true. It's a proven method for creating wealth.
Gary Simpson has written nine books on various subjects including "How to Save $1000's and Increase Your Net Wealth." If you are looking for a better financial future then go to Turn Debt Into Wealth.
Thursday, January 18, 2007
Tuesday, January 9, 2007
What is Values-Based Wealth Planning
By Michael Potter,J.D.
Between the years 1980 and 2030 it is estimated that the largest transfer of wealth from one generation to the next in the world’s history will take place when approximately $41 Trillion dollars is transferred at death from the ‘greatest generation’ (those born between 1910 and 1935) and the ‘Baby Boom’ generation (born between 1945 and 1965) to their children and grandchildren. hat’s a lot of commas and zeros. This article examines the implications for your planning that affects the generation that are today’s teens and young to mid-life adults.
Will Your ‘Core Values’ Be Transferred?
Studies of people who have inherited wealth they did not earn have shown that it can either be the boom or bane of their existence, depending on the ‘Core Values’ which they inherited from their parents. If the values and example passed down are positive character values, it is likely to be reflected in the lives of the children as adults and parents themselves. If not, you can understand why in some families many grandchildren don’t remember much about their grandparents or what they stood for.
One study shows the last thing parents want their children to spend an inheritance on is a new car, yet in Orange County, California heirs wait an average of only 21 days after receiving an inheritance before buying a new vehicle. Moreover, where inherited wealth buys depreciating assets rather than those which appreciate in value, inherited wealth is depleted by the end of the second generation in just over 80% of the cases studied and is gone entirely by the third generation.
This is a condition known as ‘Affluenza’ (the wasting of wealth). But adults who as children earned their allowance with household chores or had part-time jobs growing up to pay for their own bikes, clothes, cars or college tended to invest their inheritance into retirement savings, mutual funds, business start-ups, home equity and income-producing real estate. What does this tell us?
"Daddy, Where Do ‘Core Values’ Come From?"
The ‘Greatest Generation’ grew up in the Great Depression. They remember bread and soup lines, mass unemployment and struggling for shelter, clothing, food and warmth. As adults, they literally ‘saved the world’ by their sacrifices in World War II and Korea. After the war, they built careers and new businesses, having children and building homes in unprecedented numbers. Their humility and appreciation for the non-economic values in life is reflected in the classic ‘Americana’ paintings of Norman Rockwell. Their children are today’s ‘baby boomers’ who grew up in the 40’s, 50’s and 60’s and fought totalitarianism in the Cold War, Vietnam and Desert Storm but had years to experiment and ‘find themselves’ since they didn’t face the financial struggles their parents did.
The Most Common Misconception.
Every parent wants their children to have it ‘better’ than they did, and this is reflected in the examples they live and the values they teach – or fail to teach – their children and grandchildren. However, many planners buy into the myth that business estate, retirement or financial planning is only about transferring ‘the money’ rather than the quality of life and core values. Instead of starting with what they want their children and grandchildren to stand for and accomplish, many bypass these issues entirely and focus instead on fortune rather than family. As a result, estate planning, retirement and financial planning become focused on trust documents, notarized signatures, coverage amounts and funding rather than how these useful tools implement the vision and goals of the parents.
How to Make Your Planning ‘Count’.
As a long-time practicing attorney in the fields of estate planning, risk mitigation, wealth management and asset protection, I’ve seen clients (and the professionals who should have served them better) in a rush to put their pens to paper rather than first discussing the client’s priorities and values. Here is a protocol for a more favorable outcome:
• Start with a thinking-and-valuing exercise that amounts to a quiet personal assessment of ‘what really matters’. Honestly consider the example and the values passed down to your children and what kind of steward you have been of what you have earned and invested so far. Write down the core values, dreams and objectives that you want to matter in the lives of your children – and yes, your grandchildren. The end result should be your own personal ‘Values and Vision Statement’. It should reflect what you and your children as adults will be known to stand for.
• Next, is an exercise I like to call ‘I Suddenly Died Today and Didn’t Get to Say Goodbye’. Though it may be uncomfortable, take about 30 minutes to jot down what would actually take place over the next two years following your sudden death today versus what you hope or guess or think might happen. This is often a real ‘eye-opener’ if you own a business, have investments, are paying for a home, have debts, children or plans for the future. Most believe we will die in our old age, at home in bed, without pain, still looking good, surrounded by our adoring family and with all our bills paid and our dreams attained.
These two steps can be done in either order. They are best done in private, but always in a relaxed setting, perhaps even in a ‘family retreat’ in a resort setting if you wish to include your children in writing a family Values and Vision Statement. With these steps complete, professional planners can do their best work.
As a planner, I always enjoy having a ‘context’ in which to help clients reduce their business and investment risks, strengthen their financial and asset protection and plan their estate for themselves, their children, their grandchildren and their favorite charities. For example, I enjoy it when family multi-generation trusts contain ‘incentives’ for the children or grandchildren to achieve educational goals, business ownership, contribute to science or the arts, participate in community improvement and church life. The incentives may be in the form of matching funds for investments or retirement savings the children or grandchildren so that they are encouraged to be productive.
Updating your estate and financial planning, reviewing your insurance and retirement planning, forming a family limited partnership for liability protection and to pursue investment and business goals, forming an estate planning trust, holding investments and business enterprises in limited liability companies and securing the financial outcomes you hope for are all important steps. But they should always be based on a solid foundation of ensuring your ‘core values’ are reflected in the planning and documents you sign.
Between the years 1980 and 2030 it is estimated that the largest transfer of wealth from one generation to the next in the world’s history will take place when approximately $41 Trillion dollars is transferred at death from the ‘greatest generation’ (those born between 1910 and 1935) and the ‘Baby Boom’ generation (born between 1945 and 1965) to their children and grandchildren. hat’s a lot of commas and zeros. This article examines the implications for your planning that affects the generation that are today’s teens and young to mid-life adults.
Will Your ‘Core Values’ Be Transferred?
Studies of people who have inherited wealth they did not earn have shown that it can either be the boom or bane of their existence, depending on the ‘Core Values’ which they inherited from their parents. If the values and example passed down are positive character values, it is likely to be reflected in the lives of the children as adults and parents themselves. If not, you can understand why in some families many grandchildren don’t remember much about their grandparents or what they stood for.
One study shows the last thing parents want their children to spend an inheritance on is a new car, yet in Orange County, California heirs wait an average of only 21 days after receiving an inheritance before buying a new vehicle. Moreover, where inherited wealth buys depreciating assets rather than those which appreciate in value, inherited wealth is depleted by the end of the second generation in just over 80% of the cases studied and is gone entirely by the third generation.
This is a condition known as ‘Affluenza’ (the wasting of wealth). But adults who as children earned their allowance with household chores or had part-time jobs growing up to pay for their own bikes, clothes, cars or college tended to invest their inheritance into retirement savings, mutual funds, business start-ups, home equity and income-producing real estate. What does this tell us?
"Daddy, Where Do ‘Core Values’ Come From?"
The ‘Greatest Generation’ grew up in the Great Depression. They remember bread and soup lines, mass unemployment and struggling for shelter, clothing, food and warmth. As adults, they literally ‘saved the world’ by their sacrifices in World War II and Korea. After the war, they built careers and new businesses, having children and building homes in unprecedented numbers. Their humility and appreciation for the non-economic values in life is reflected in the classic ‘Americana’ paintings of Norman Rockwell. Their children are today’s ‘baby boomers’ who grew up in the 40’s, 50’s and 60’s and fought totalitarianism in the Cold War, Vietnam and Desert Storm but had years to experiment and ‘find themselves’ since they didn’t face the financial struggles their parents did.
The Most Common Misconception.
Every parent wants their children to have it ‘better’ than they did, and this is reflected in the examples they live and the values they teach – or fail to teach – their children and grandchildren. However, many planners buy into the myth that business estate, retirement or financial planning is only about transferring ‘the money’ rather than the quality of life and core values. Instead of starting with what they want their children and grandchildren to stand for and accomplish, many bypass these issues entirely and focus instead on fortune rather than family. As a result, estate planning, retirement and financial planning become focused on trust documents, notarized signatures, coverage amounts and funding rather than how these useful tools implement the vision and goals of the parents.
How to Make Your Planning ‘Count’.
As a long-time practicing attorney in the fields of estate planning, risk mitigation, wealth management and asset protection, I’ve seen clients (and the professionals who should have served them better) in a rush to put their pens to paper rather than first discussing the client’s priorities and values. Here is a protocol for a more favorable outcome:
• Start with a thinking-and-valuing exercise that amounts to a quiet personal assessment of ‘what really matters’. Honestly consider the example and the values passed down to your children and what kind of steward you have been of what you have earned and invested so far. Write down the core values, dreams and objectives that you want to matter in the lives of your children – and yes, your grandchildren. The end result should be your own personal ‘Values and Vision Statement’. It should reflect what you and your children as adults will be known to stand for.
• Next, is an exercise I like to call ‘I Suddenly Died Today and Didn’t Get to Say Goodbye’. Though it may be uncomfortable, take about 30 minutes to jot down what would actually take place over the next two years following your sudden death today versus what you hope or guess or think might happen. This is often a real ‘eye-opener’ if you own a business, have investments, are paying for a home, have debts, children or plans for the future. Most believe we will die in our old age, at home in bed, without pain, still looking good, surrounded by our adoring family and with all our bills paid and our dreams attained.
These two steps can be done in either order. They are best done in private, but always in a relaxed setting, perhaps even in a ‘family retreat’ in a resort setting if you wish to include your children in writing a family Values and Vision Statement. With these steps complete, professional planners can do their best work.
As a planner, I always enjoy having a ‘context’ in which to help clients reduce their business and investment risks, strengthen their financial and asset protection and plan their estate for themselves, their children, their grandchildren and their favorite charities. For example, I enjoy it when family multi-generation trusts contain ‘incentives’ for the children or grandchildren to achieve educational goals, business ownership, contribute to science or the arts, participate in community improvement and church life. The incentives may be in the form of matching funds for investments or retirement savings the children or grandchildren so that they are encouraged to be productive.
Updating your estate and financial planning, reviewing your insurance and retirement planning, forming a family limited partnership for liability protection and to pursue investment and business goals, forming an estate planning trust, holding investments and business enterprises in limited liability companies and securing the financial outcomes you hope for are all important steps. But they should always be based on a solid foundation of ensuring your ‘core values’ are reflected in the planning and documents you sign.
Saturday, January 6, 2007
New Online Strategy for Wealth Building
By Natalie Aranda
The concept of wealth is often misunderstood. Many people view wealthy people as those who live in big homes and drive expensive cars. They think wealthy people are those who flash credit cards in high class restaurants or fancy stores and shops. This attitude reveals a basic misunderstanding of the concept of wealth. Wealth is actually another way of saying net worth. Net worth is not just the total amount of assets that you have, but actually the amount of your assets less the amount of your liabilities. If those wealthy suspects have high mortgage rates, and immense car payments, and maxed out credit cards, they are not truly wealthy at all.
The notion of wealth building is really the art of increasing your assets while at the same time reducing your liabilities. It is the increase in your net worth that constitutes true wealth building. The internet has provided some new and interesting strategies for doing just that. Wealth building seminars have existed for a long time. They are often sold on late night television. It is almost as if they are being targeted for people who are staying up late because they have no jobs to go to in the morning. Online wealth building seminars have a little different tone. They take advantage of the vast amount of knowledge and data available on the World Wide Web to give training and guidance on various means to reduce debt and increase wealth.
One such online method of wealth building that offers a new and unique strategy is the idea of the online financial advisors. They operate by not only offering advice and sharing investment ideas, but also by providing software for managing your personal finance. The software allows cash flow tracking and budget formation. Some of these financial advisors can be simply software programs that can be downloaded to your personal computer. Microsoft Money is one such program. It does more than monitor and track your cash flow. It can also give advice as well. This is the value of the wealth building seminar. The ultimate decisions that will determine your own wealth building will always remain yours, but sound financial advice is sometimes worth as much as money in the bank. There are important issues involved here that go beyond just the enjoyment of the material things that wealth can purchase. Your retirement, college educations for your children, and providing a nest egg against unforeseen circumstances are important matters and it is a wise man that prepares for them armed with as much knowledge as he can muster.
Natalie Aranda writes about personal finance. The notion of wealth building is really the art of increasing your assets while at the same time reducing your liabilities. It is the increase in your net worth that constitutes true wealth building. The internet has provided some new and interesting strategies for doing just that. Wealth building seminars have existed for a long time. They are often sold on late night television.
Article Source: http://EzineArticles.com/?expert=Natalie_Aranda
The concept of wealth is often misunderstood. Many people view wealthy people as those who live in big homes and drive expensive cars. They think wealthy people are those who flash credit cards in high class restaurants or fancy stores and shops. This attitude reveals a basic misunderstanding of the concept of wealth. Wealth is actually another way of saying net worth. Net worth is not just the total amount of assets that you have, but actually the amount of your assets less the amount of your liabilities. If those wealthy suspects have high mortgage rates, and immense car payments, and maxed out credit cards, they are not truly wealthy at all.
The notion of wealth building is really the art of increasing your assets while at the same time reducing your liabilities. It is the increase in your net worth that constitutes true wealth building. The internet has provided some new and interesting strategies for doing just that. Wealth building seminars have existed for a long time. They are often sold on late night television. It is almost as if they are being targeted for people who are staying up late because they have no jobs to go to in the morning. Online wealth building seminars have a little different tone. They take advantage of the vast amount of knowledge and data available on the World Wide Web to give training and guidance on various means to reduce debt and increase wealth.
One such online method of wealth building that offers a new and unique strategy is the idea of the online financial advisors. They operate by not only offering advice and sharing investment ideas, but also by providing software for managing your personal finance. The software allows cash flow tracking and budget formation. Some of these financial advisors can be simply software programs that can be downloaded to your personal computer. Microsoft Money is one such program. It does more than monitor and track your cash flow. It can also give advice as well. This is the value of the wealth building seminar. The ultimate decisions that will determine your own wealth building will always remain yours, but sound financial advice is sometimes worth as much as money in the bank. There are important issues involved here that go beyond just the enjoyment of the material things that wealth can purchase. Your retirement, college educations for your children, and providing a nest egg against unforeseen circumstances are important matters and it is a wise man that prepares for them armed with as much knowledge as he can muster.
Natalie Aranda writes about personal finance. The notion of wealth building is really the art of increasing your assets while at the same time reducing your liabilities. It is the increase in your net worth that constitutes true wealth building. The internet has provided some new and interesting strategies for doing just that. Wealth building seminars have existed for a long time. They are often sold on late night television.
Article Source: http://EzineArticles.com/?expert=Natalie_Aranda
Tuesday, January 2, 2007
Creating a Wealth Conscious Mind Set
By Adrian McMaster
Creating wealth is a process that takes determination, perseverance, and a commitment to achievement. Wealth is not something that defines your life completely, but it can help you to have the freedom to spend time doing the things you enjoy. Wealth can help you spend more time with your children, develop a hobby, learn more about the world around you, or even travel the world if you so desire. All of these things are possible if you can work on creating a wealth-conscious mind set. Developing this mind set will help you set financial goals and create plans for achieving those goals. When you finally achieve financial freedom, you’ll understand how important mind setting is for guiding you to success.
Developing a wealth-conscious mind set first requires you to define wealth in your own terms. Is wealth to you making enough to take an annual vacation? Making millions of dollars a year? Everyone’s definition of wealth differs based on their needs and desires. Someone who is single may have different financial goals than someone with a family of five. You can determine your own definition of wealth by reviewing the things you want to accomplish with your wealth. You may want to contribute to charitable organizations, travel, start your own business, or retire at a young age. Once you develop your goals and define wealth in your own terms, you can truly start using mind setting to help build wealth and prosperity.
Having a wealth-conscious mind set will also require you to commit to learning all that you can about wealth creation and management. This is especially important if you have not been financially stable in the past. There are many books and seminars available on wealth creation and management. Some of the resources available are solid references with a lot of valuable information. Then there are some resources that are nothing more than a way for their sellers to become wealthy. If you carefully choose your resources, you’ll be able to use them to your advantage and learn new ideas about wealth creation.
If you want to have a wealth-conscious mind set, you should plan on creating wealth with integrity. Many people want to create wealth at any cost, including the expense of others. They use scams to get other people to spend their hard-earned money on shoddy products or useless services. You may be able to create some wealth using these techniques, but you’ll also create a reputation for dishonesty. Your wealth will not be as satisfying if others don’t trust you and you can’t keep generating income from your efforts. You’ll be able to enjoy your wealth much more if you have a clear conscious.
If you want to create wealth for yourself with integrity and honesty, developing a wealth-conscious mind set can help you understand what you need to do to achieve the level of wealth you desire. It can also help you to establish goals for yourself and make it possible for you to meet challenges head on until you achieve success
Adrian is a single Entrepreneur who has learnt from his mistakes, and has learnt from some of the best masters to turn poverty in to wealth
Creating wealth is a process that takes determination, perseverance, and a commitment to achievement. Wealth is not something that defines your life completely, but it can help you to have the freedom to spend time doing the things you enjoy. Wealth can help you spend more time with your children, develop a hobby, learn more about the world around you, or even travel the world if you so desire. All of these things are possible if you can work on creating a wealth-conscious mind set. Developing this mind set will help you set financial goals and create plans for achieving those goals. When you finally achieve financial freedom, you’ll understand how important mind setting is for guiding you to success.
Developing a wealth-conscious mind set first requires you to define wealth in your own terms. Is wealth to you making enough to take an annual vacation? Making millions of dollars a year? Everyone’s definition of wealth differs based on their needs and desires. Someone who is single may have different financial goals than someone with a family of five. You can determine your own definition of wealth by reviewing the things you want to accomplish with your wealth. You may want to contribute to charitable organizations, travel, start your own business, or retire at a young age. Once you develop your goals and define wealth in your own terms, you can truly start using mind setting to help build wealth and prosperity.
Having a wealth-conscious mind set will also require you to commit to learning all that you can about wealth creation and management. This is especially important if you have not been financially stable in the past. There are many books and seminars available on wealth creation and management. Some of the resources available are solid references with a lot of valuable information. Then there are some resources that are nothing more than a way for their sellers to become wealthy. If you carefully choose your resources, you’ll be able to use them to your advantage and learn new ideas about wealth creation.
If you want to have a wealth-conscious mind set, you should plan on creating wealth with integrity. Many people want to create wealth at any cost, including the expense of others. They use scams to get other people to spend their hard-earned money on shoddy products or useless services. You may be able to create some wealth using these techniques, but you’ll also create a reputation for dishonesty. Your wealth will not be as satisfying if others don’t trust you and you can’t keep generating income from your efforts. You’ll be able to enjoy your wealth much more if you have a clear conscious.
If you want to create wealth for yourself with integrity and honesty, developing a wealth-conscious mind set can help you understand what you need to do to achieve the level of wealth you desire. It can also help you to establish goals for yourself and make it possible for you to meet challenges head on until you achieve success
Adrian is a single Entrepreneur who has learnt from his mistakes, and has learnt from some of the best masters to turn poverty in to wealth
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