The Peter Fortunato "One Step Beyond" seminar is completely SOLD OUT!!
You will not be able to sign up at the door or anyplace else because there is
no more seating available.
For all of you attending, thank you very much! You're in for a super treat to
learn from Peter Fortunato.
The next opportunity to see and learn from Peter will be at the CashFlowDepot
Convention in Las Vegas on May 22-24th. We'll have more details about that
event soon.
In these uncertain economic times, this excerpt from Jack's article called "Financial
Security Means Having What You Need When You Need It"
iis an important message for you to study and implement.
Don't tell this to those who are struggling in the trenches trying to survive the
current economic cut back, but ultimately, wealth represents less opportunity
than obligation.
If you think being responsible for the care of a pet dog curtails a lot of fun, try
being responsible for taking care of the life savings of someone who relies upon
you. I'm not talking about some doddering old aunt; I'm talking about your
immediate family.
If you suddenly became dependent upon your parents, or your kids, for food,
shelter, clothing, medical attention, and personal care, this could be a crushing
blow for your family to sustain. That's what cash flow real estate is about;
protecting your family from needing to support you.
A wise multi-millionaire once gave Jack ten principles on which ultimate success
in life will depend.
1. Personal savings and liquidity to insulate you from distress sales to raise cash.
Success books over the ages have stressed living far enough below your means
to be able to save 10% or more out of each pay check, and to keep enough cash
around to meet emergencies. Being forced to sell or pledge valuable assets
robs security.
2. Protection of your assets, purchasing power, and income from inflation. Everybody
on a fixed income understands how rising prices can destroy security. Part of every
portfolio should be inflation hedged so that asset values can pace inflation.
3. Faith in your own judgment and in the successful outcomes of your decisions.
Beware of strangers bearing advice. If you were smart enough to amass a fortune,
you should be willing to continue to learn so you'll be smart enough to manage it.
4. Understanding the investment principle that your money must earn a fair return.
How much is your IRA earning? If you want to see a financial epidemic, check out all
those poor souls working for a fixed rate pension plan, or those putting money into
IRAs who know that their yield is not even keeping up with inflation. The difference
between a 2% Money Market Fund and a 10% mortgage isn't 8%, it's 500%; or over
$62,500 MORE for each $4000 per year invested 30 years in your IRA.
5. Better to pay a fair price for a good investment than a good price for a fair one.
I once bought 20,000 shares of gold penny stocks in the 1970s because they only
cost $2000. That was my IRA contribution limit at that time. The money is still there.
If I sold them all, they wouldn't net enough to pay the commissions. On the other
hand, that same year a new company called Microsoft was selling for about a dollar
a share. That same $2000 could have been worth about $70,000 today.
6. Understanding, and being able to use, compound interest and time value of money.
Einstein said the greatest single concept of man was compound interest; the process
whereby interest earns money on itself. $1000 invested for 10 years at 100% would
add up to $11,000, but if compounded at the same rate would add up to $1,024,000.
7. Growing an estate by using prudent leverage with no personal liability for debt.
Millions of people are in distress today because they guaranteed to pay their loans.
Had they not done this, they could have simply walked away from ruinous their debt.
8. Methodically and systematically eliminating debt to increase income and safety.
Paying off debt creates equity, safety, and cash flow. One way to commit financial
suicide is to refinance equity to get spending money. It destroys all compounding
and cash flow while increasing risk. If you want to be rich don't borrow lifestyle!
9. When you know you've got it made, stopping taking chances to make more.
If you've got enough, you don't need more. Risking your security to make money
that you'll never spend is the sheerest kind of folly; especially when you lose it.
The homeless shelters are full of people who bet their winnings one time too many!
10. Beware of strangers bearing advice. If you were smart enough to amass a
fortune, you should be willing to continue to learn so you'll be smart enough to
manage it.
CashFlowDepot is dedicated to providing you with the information you need to learn
so you can achieve financial freedom and security.
To Your Extreme Success,
Saturday, March 6, 2010
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