- Compounding.
High wealth takes more time than high income. If you have person 1, who is 30, has an MBA and is earning $200,000 after tax , and person 2, who is 60 and has earned $60,000 a year for 40 years, person 2 should be wealthier.
2. Good spending habits + compounding
Look at the three people below:
Person 1 was a secretary from New York who died recently Wirth $6M. Person 2, Buffett, `only` had $1M at age 32. Mike Tyson, person 3, made hundreds of millions by age 32. Now Buffett has over $60Billion and Tyson is broke or close to broke.
3. Read
Buffett spends 80% of his days reading and Mark Cuban spends 3 hours a day reading. It is an investment. I suggest some of these books:
They also spend more on getting knowledge from online sources, rather than pointless material things.
4. Real estate
Use a house as a home. Don’t overspend on rent. Using real estate on leverage can be profitable but it is risky. Best to just own 1 home maximum, which is modest. Millionaires, who have sustainable wealth, are more likely to live in places like these.
5. Fees
They keep their investment keeps fees low.
6. Long-term.
They see the bigger picture. Often buy, hold and rebalance.
7. They have self-control
Human nature and especially fear, greed and egoism is the killer of portfolios.
8. They always do the right things, consistently
The person below is one of the best, if not the best, at football. One of the reasons is he implements the evidence everyday. If you want to get wealthy, implementing the evidence consistently and with persistence can be key. There is no point in only sometimes being motivated.
Here is a reading list to avoid some of these issues:
For more academic work on how the 4% rule works in practice, I would recommend the following:
Other academic books to look at include:
Bengen, W. P. (1994). Determining withdrawal rates using historical data. Journal of Financial Planning, 7(1), 171-180.
Bengen, W. P. (1996). Asset allocation for a lifetime.Journal of Financial Planning, 9(3), 58-67.
Bengen, W. P. (1997). Conserving client portfolio during retirement, part III. Journal of Financial Planning, 10(5), 84-97.
Bierwirth, L. (1994). Investing for retirement: using the past to model the future. Journal of Financial Planning, 7(1), 14-24.
Cooley, P. L., Hubbard, C. M. & Walz, D. T. (1998). Retirement spending: choosing a sustainable withdrawal rate. Journal of the American Association of Individual Investors, 20(2), 16-21.
Ferguson, T. W. (1996). Endow yourself. Forbes, 157(12), 186-187.
Ho, K., Milevsky, M. & C. Robinson. (1994). Asset allocation, life expectancy, and shortfall. Financial Services Review., 3(2), 109-126.
Ibbotson Associates (1996). Stocks, bonds, bills, and inflation yearbook. Ibbotson Associates, Chicago, IL.
Ibbotson Associates (1998). Stocks, bonds, bills, and inflation yearbook (CD-ROM V ersion). Ibbotson Associates, Chicago, IL.
www.kylephoenix.com
www.kyle-phoenix.com
Smile, Kyle
KylePhoenixShow@Gmail.com
The Kyle Phoenix Show LIVE STREAMING on MNN.org 1130pm, Spectrum Cable Manhattan, NY Channel 56 & 1996, also FIOS 34 and RCN 83.
Don't forget to watch The Kyle Phoenix Show LIVESTREAM on Channel 56 (Time Warner), 83 (RCN), 34 (Verizon) Thursdays 1130pm
Kyle Phoenix is a teacher, certified adult educator, sexologist, sex coach and sexuality educator with over two decades of intensive experience. He studied at the University at Buffalo, SUNY, New York University, and Columbia University. He has worked, consulted and taught individuals and focused professional developments for the CDC, Department of Education, Gay Men's Health Crisis, New York City Department of Health, non-profits, Fortune 500 companies and unions. He began his career facilitating on-campus workshops addressing a wide range of sexuality and sexual health issues and then moved on to teaching at universities, non-profits, private groups and clients, hosting The Kyle Phoenix Show on television and multiple online webinars, including YouTube and Sclipo and writing extensively through his blog, Special Reports, articles and other print and E books in the Kyle Phoenix Series on relationships, finance, education, spirituality and culture. He lives in New York with his family.
Smile, Kyle
KylePhoenixShow@Gmail.com
#KylePhoenix
#TheKylePhoenixShow
Kyle Phoenix on Facebook and TwitterThe Kyle Phoenix Show LIVE STREAMING on MNN.org 1130pm, Spectrum Cable Manhattan, NY Channel 56 & 1996, also FIOS 34 and RCN 83.
Or Click Below to:
Don't forget to watch The Kyle Phoenix Show LIVESTREAM on Channel 56 (Time Warner), 83 (RCN), 34 (Verizon) Thursdays 1130pm
Kyle Phoenix is a teacher, certified adult educator, sexologist, sex coach and sexuality educator with over two decades of intensive experience. He studied at the University at Buffalo, SUNY, New York University, and Columbia University. He has worked, consulted and taught individuals and focused professional developments for the CDC, Department of Education, Gay Men's Health Crisis, New York City Department of Health, non-profits, Fortune 500 companies and unions. He began his career facilitating on-campus workshops addressing a wide range of sexuality and sexual health issues and then moved on to teaching at universities, non-profits, private groups and clients, hosting The Kyle Phoenix Show on television and multiple online webinars, including YouTube and Sclipo and writing extensively through his blog, Special Reports, articles and other print and E books in the Kyle Phoenix Series on relationships, finance, education, spirituality and culture. He lives in New York with his family.
www.kylephoenix.com
Smile, Kyle
KylePhoenixShow@Gmail.com
KylePhoenixShow@Gmail.com
#KylePhoenix
#TheKylePhoenixShow
#TheKylePhoenixShow
Or Click Below to:
No comments:
Post a Comment