Wealth Tip: Three Keys to Financial Fluency - the Final Key
Key Three: Learn the Distinctions Between Level 1, Level 2, and Level 3 People When It Comes to Money, Wealth, and Personal Finances
When Diane and I were formatting how we wanted to teach the Financial Fluency workshop we knew we wanted to really emphasize the differences between the way Level 1, 2, and 3 wealth builders approached money and personal finances.
Here are a few of the key distinctions that Diane and I have been developing over the past year to teach this January:
Level One people’s retirement plan has as it’s goal survival. They depend on Social Security, a company pension (if it still exists), family, and, saddest of all, a part or full time job.
Level Two people’s retirement plan is a 401k and pension plan they actively invest in, in addition to Social Security. Their focus is in building a “nest egg” and they doing their best to die before they run out of money. (Not my idea of a “secure” retirement.)
Level Three people’s retirement plan is a secure portfolio of passive, residual investments that include real estate, business interests, income producing intellectual property, and other equities. They don’t worry about dying before they run out of money. Rather their focus is on how to live fully and leave a meaningful legacy behind them that touches the lives of latter generations. Money is abundant for them and rather than focus on how to get enough, they know that they have MORE than enough, and their focus is how to use this money to touch people’s lives.
Here’s another example of the differences between these three levels.
Level One people learn about wealth and finances through the mass media. They passively consume a warped input on wealth and money, and don’t see that their version of wealth is a caricature, and not accurate.
Level Two people learn from actively consuming the mass media and financial press. But what they don’t realize is that most of what they are learning has been filtered for them by two big influences to teach them how to live the Level Two wealth plan (get a good education, find a good job, work hard, save, invest, 40 years later retire on 75% or less of your earlier income, and do your best to stretch your money so it lasts your entire retirement.) The first influence is the financial services industry which is inheritely rewarded when you follow the “traditional” plan. The second influence is the media itself—filled with level two journalists who are still w-2 employees teaching you to be wealthy.
Level Three people learn by actively seeking out high quality books, workshops, and mentors to help them. They look to the mass media and financial press not to learn what to do, but rather, to learn what the MASSES will do, so that they can use this insight to find overlooked opportunities and ways to lower their risk.
I’m sorry if I’m a bit of a soapbox on this one, it’s just a subject that I am very passionate about. While I’m out of time to teach more about financial fluency in this week’s eletter, I’ll keep coming back to it over time, mixed in with tips on investing in real estate, to growing your business, to protecting your wealth, and how to save on your taxes (actually I’ll let Diane write on this one, but I’ll just send you what she says since she’s the best tax strategist/CPA I’ve ever worked with.
My very best to you,
David
P.S. I’m working to arrange another gift for you next week—a special ebook surprise from my partner and tax strategist Diane Kennedy. It may take me a few weeks to get it done, but I’ll keep you up to date on my progress!
P.P.S. Just a quick reminder that on January 20-21-22-23rd Diane and I are holding two back to back 2 day wealth workshops. The first is the
"Mini-Maui" wealth weekend, and the second is the “Financial Fluency” workshop. For complete details just click here!
When Diane and I were formatting how we wanted to teach the Financial Fluency workshop we knew we wanted to really emphasize the differences between the way Level 1, 2, and 3 wealth builders approached money and personal finances.
Here are a few of the key distinctions that Diane and I have been developing over the past year to teach this January:
Level One people’s retirement plan has as it’s goal survival. They depend on Social Security, a company pension (if it still exists), family, and, saddest of all, a part or full time job.
Level Two people’s retirement plan is a 401k and pension plan they actively invest in, in addition to Social Security. Their focus is in building a “nest egg” and they doing their best to die before they run out of money. (Not my idea of a “secure” retirement.)
Level Three people’s retirement plan is a secure portfolio of passive, residual investments that include real estate, business interests, income producing intellectual property, and other equities. They don’t worry about dying before they run out of money. Rather their focus is on how to live fully and leave a meaningful legacy behind them that touches the lives of latter generations. Money is abundant for them and rather than focus on how to get enough, they know that they have MORE than enough, and their focus is how to use this money to touch people’s lives.
Here’s another example of the differences between these three levels.
Level One people learn about wealth and finances through the mass media. They passively consume a warped input on wealth and money, and don’t see that their version of wealth is a caricature, and not accurate.
Level Two people learn from actively consuming the mass media and financial press. But what they don’t realize is that most of what they are learning has been filtered for them by two big influences to teach them how to live the Level Two wealth plan (get a good education, find a good job, work hard, save, invest, 40 years later retire on 75% or less of your earlier income, and do your best to stretch your money so it lasts your entire retirement.) The first influence is the financial services industry which is inheritely rewarded when you follow the “traditional” plan. The second influence is the media itself—filled with level two journalists who are still w-2 employees teaching you to be wealthy.
Level Three people learn by actively seeking out high quality books, workshops, and mentors to help them. They look to the mass media and financial press not to learn what to do, but rather, to learn what the MASSES will do, so that they can use this insight to find overlooked opportunities and ways to lower their risk.
I’m sorry if I’m a bit of a soapbox on this one, it’s just a subject that I am very passionate about. While I’m out of time to teach more about financial fluency in this week’s eletter, I’ll keep coming back to it over time, mixed in with tips on investing in real estate, to growing your business, to protecting your wealth, and how to save on your taxes (actually I’ll let Diane write on this one, but I’ll just send you what she says since she’s the best tax strategist/CPA I’ve ever worked with.
My very best to you,
David
P.S. I’m working to arrange another gift for you next week—a special ebook surprise from my partner and tax strategist Diane Kennedy. It may take me a few weeks to get it done, but I’ll keep you up to date on my progress!
P.P.S. Just a quick reminder that on January 20-21-22-23rd Diane and I are holding two back to back 2 day wealth workshops. The first is the
"Mini-Maui" wealth weekend, and the second is the “Financial Fluency” workshop. For complete details just click here!
posted by David Finkel at 4:34 AM
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