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Thursday, 09.02.2010 |
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| Why We Want You to be Rich |
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Product Details
Notes
the middle class is shrinking, the gap between the rich and poor is growing
in 2004, 44% of our Treasury debt was owned by foreigners
Social Security owes $10 trillion and Medicare owes $62 trillion to the people
the total stock market is $36 trillion and the bond market is $31 trillion
so we can't even pay all the money due to Americans as they get older
Social Security was formed in 1935, Medicare in 1955, Medicaid in 1966
in 1971, President Nixon took the dollar off the gold standard to make it float
there are more Starbucks in China than in the United States
38% of doctors in the United States are of Indian descent
we have the entitlement mentality, we expect the government to take care of us
the trade deficit for 2006 is forecast to be $423 billion
Bush increased the national debt more than all other presidents combined
the dollar has lost half its value in the last 10 years
Americans have one of the lowest savings rates in the world
10% of all Americans own 90% of the wealth
a passive investor invests money, but not time, an active investor invests time
it takes more time to be a licensed massage therapist than a financial advisor
less than 20% of all stockbrokers invest in the products they recommend
the most used word in the English language is "time"
when we are born, we have an undivided brain
our brain splits into right and left hemispheres when we are 4-5 years old
music majors are often recruited for medical school
music is both mathematical and creative, and requires discipline and practice
the formula: leverage, control, creativity, expansion, predictability
repetition is the key to preparation
you can't play the cashflow game once and then ask what's next
you should play it 10 times and teach it to 10 other people
FOCUS = Follow One Course Until Successful
more business deals are done on the golf course than in the boardroom
the tougher the negotiation, the more relaxed the environment needs to be
lessons for kids:
try budgeting and shopping for groceries for one week
try taking $10 and doubling it in some creative way
this could be by lending to a friend and charging them interest
or buying something and selling it online for a profit
learn to make money work for you
study accounting and business law in college
biggest fear in America is not terrorism, but running out of money in retirement
creativity is allowed and encouraged in real estate and business
but you can't apply creativity in stocks, bonds, or mutual funds
regardless of your environment, focus on the solutions not the problems
investing is not risky, people are risky
real estate is not a good or bad investment, people are good or bad investors
people want the magic formula to get rich
but the formula is different for every individual
and even if you give them the formula, most people won't follow through
it's less risky to invest for cash flow than for capital gains
mutual funds are not required to disclose expenses, there's no transparency
average investors buy low and sell high, or they try to flip properties
professionals like Warren Buffet look for intrinsic value and buy businesses
over 40 years, the mutual fund company gets 80% of the returns from fees
you only get 20% of the returns, but you put up 100% of the risk and capital
this assumes an 8% annual growth rate, and 2.5% in management fees
the original quote comes from John Bogle, the founder of Vanguard
employees have little control over their jobs, investments, and taxes
it can take 5 years to learn the skills to become a real entrepreneur
read and study to increase your knowledge, and look for a mentor
there are many ways to get rich, find what you love most and focus on it |
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