Wealth Tips from the Guy Who Literally Wrote the Book
Hi Everybody,
I have a very special eLetter for you today that shares some of the interesting details from an amazing phone conversation I had with best-selling author and wealth strategist Stuart Lucas.
Stuart is not only the author of the best-selling book, Wealth, (which I've literally recommended to several thousand people over the past 18 months and strongly recommend to you), but he is also someone who comes from a very unique background in terms of wealth, and his Wealth Operating SystemTM (WOS). You see, Stuart is a member of America's wealthiest families. He is a fourth generation to E.A. Stuart, the founder of Carnation (maker of Carnation Evaporated Milk and Coffee-Mate Non-Dairy Creamer) which the family sold to Nestle in 1985 for over a billion dollars.
I want to share with you some of the highlights of that unique conversation so that you can use these ideas on wealth to reach your own financial goals.
For those of you who are Maui Mastermind Online members, CLICK HERE to listen in to the recording of the entire phone conversation.
For those of you who are not members yet, but want to get a free 30-day trial membership and then access the full conversation, just CLICK HERE.
Even for the Wealthy, Talking about Money with Your Family Can Still Be Taboo
Money is an emotionalized subject in our society, even for the wealthy. When of the first things Stuart and I talked about was an experience he described in the introduction to his book, Wealth.
He was watching how his family was spending down their wealth faster than it was being replenished. This was in part due to the frictional costs involved with managing your wealth (advisor fees, brokerage commissions, etc); in part due to the drain of taxes and inflation; and also due to the growth of his extended family with each successive generation.
It was an important family value for Stuart to pass on the same benefits that he had received to later generations.
But unless they did something different, the family fortune would dissipate over time.
So he did something very scary--he organized a family meeting to talk about money. You can read about that meeting in his book (it will surprise you) but the thing I want to highlight is how scary and intimidating calling for this meeting was.
Imagine, even in one of America's wealthiest families money still can be so difficult to talk about openly. Remember, your WOS impacts you in many ways, and your comfort and facility with talking about money is one of them.
Don't duck the tough conversations. Talk with your family (especially your spouse or partner) and decide together on what matters most to you.
You Can't Manage Your Wealth In Isolation
I think one of the things that really struck me when we talked was something that I first read about in his book, Wealth. Namely that managing your wealth is not something you can do in isolation from other parts of your life.
Your values, your goals, your timeline, your current financial status, your tax situation, and your spending habits all have to work together in a coordinated, strategic manner.
And the first place to start with is with your financial values. This drives the conversation.
To talk about your investments in isolation from your values and these other considerations is a recipe for disaster.
The Fallacy of "Beating the Market"
Have you ever dreamed of picking the perfect fund or the hottest stock and riding it to the top? I talked about this with Stuart (who is exceptionally experienced with creating investment strategies that outperform the market) and it was interesting to note how similar we stood on this.
For the average person it is almost impossible for them to count on being able to beat the market over the long haul. With hundreds of thousands of full time financial money managers out there looking for any advantage they can get, any new information is quickly priced into the market. The bottom line? For the average investor, they are better off using a passive strategy of indexing a section of the market (e.g. the S & P 500, Dow Jones Industrial Average, etc.) versus looking for the next hot fund or security.
If you are going to choose the aggressive approach of beating the market, then you're going to have to pay your dues of time and energy to develop the advantages to let you do that.
Quite frankly the average investor in publicly traded securities will never be able to do this, hence why the indexing strategy is best for them. This is even more true when you factor in the frictional costs of transaction fees and taxes with an actively traded portfolio.
Now I've just given you a taste of what Stuart and I spent a full half-hour talking about. Again, for those of you who are Maui Mastermind Online members, CLICK HERE to listen in to the recording of the entire phone conversation.
For those of you who are not members yet, but want to get a free 30-day trial membership and then access the full conversation, just CLICK HERE.
Also, buy and read his book, Wealth. It's a fantastic book on the subject especially for those of you who are committed to reaching Level Three in your life.
I have a few "announcements" to share with you and then this eLetter will come to a close.
Announcement One: The midnight September 5th deadline is fast approaching.
For those of you who still want to take me up on my special offer to attend the Mini-Maui event AND Financial Fluency workshop this September in Atlanta you need to register now!
The special $797 price for BOTH workshops is only good through midnight Wednesday September 5th. After that the price is going up to $1,497!
So register now! Click here to register or get more information. Or call our office at toll-free 1-888-889-0944.
Announcement Two: Diane and my newest book, The Maui Millionaires for Business, is scheduled to be released and out in bookstores by October 12th. I'll have more information about the book, including a free "sneak peek" of several chapters for you later next month. Just wanted to keep you posted. Of course, for those of you who want to get the first copy off the press, you can always pre-order now!
That's it for the announcements.
I hope you had a great Labor Day weekend.
My very best to you,
David
P.S. If you enjoy getting my regular eLetters on building wealth, investing, and financial fluency, then why not pass along the ideas to a friend? Please feel free to forward this email to a friend or tell them to get any of the free eBooks or wealth resources at our website www.mauimillionaires.com . They'll automatically get my once or twice weekly eLetter.
P.P.S. Better yet, tell them about the upcoming Mini Maui event. They'll learn crucial wealth skills and their $500 tuition (or $500 of the $797 if they take me up on the package offer before it expires at midnight on the 5th) will go to benefit up to 25 different charities. Click here for more information on these events. Or call our office to register at toll-free 1-888-889-0944.
I have a very special eLetter for you today that shares some of the interesting details from an amazing phone conversation I had with best-selling author and wealth strategist Stuart Lucas.
Stuart is not only the author of the best-selling book, Wealth, (which I've literally recommended to several thousand people over the past 18 months and strongly recommend to you), but he is also someone who comes from a very unique background in terms of wealth, and his Wealth Operating SystemTM (WOS). You see, Stuart is a member of America's wealthiest families. He is a fourth generation to E.A. Stuart, the founder of Carnation (maker of Carnation Evaporated Milk and Coffee-Mate Non-Dairy Creamer) which the family sold to Nestle in 1985 for over a billion dollars.
I want to share with you some of the highlights of that unique conversation so that you can use these ideas on wealth to reach your own financial goals.
For those of you who are Maui Mastermind Online members, CLICK HERE to listen in to the recording of the entire phone conversation.
For those of you who are not members yet, but want to get a free 30-day trial membership and then access the full conversation, just CLICK HERE.
Even for the Wealthy, Talking about Money with Your Family Can Still Be Taboo
Money is an emotionalized subject in our society, even for the wealthy. When of the first things Stuart and I talked about was an experience he described in the introduction to his book, Wealth.
He was watching how his family was spending down their wealth faster than it was being replenished. This was in part due to the frictional costs involved with managing your wealth (advisor fees, brokerage commissions, etc); in part due to the drain of taxes and inflation; and also due to the growth of his extended family with each successive generation.
It was an important family value for Stuart to pass on the same benefits that he had received to later generations.
But unless they did something different, the family fortune would dissipate over time.
So he did something very scary--he organized a family meeting to talk about money. You can read about that meeting in his book (it will surprise you) but the thing I want to highlight is how scary and intimidating calling for this meeting was.
Imagine, even in one of America's wealthiest families money still can be so difficult to talk about openly. Remember, your WOS impacts you in many ways, and your comfort and facility with talking about money is one of them.
Don't duck the tough conversations. Talk with your family (especially your spouse or partner) and decide together on what matters most to you.
You Can't Manage Your Wealth In Isolation
I think one of the things that really struck me when we talked was something that I first read about in his book, Wealth. Namely that managing your wealth is not something you can do in isolation from other parts of your life.
Your values, your goals, your timeline, your current financial status, your tax situation, and your spending habits all have to work together in a coordinated, strategic manner.
And the first place to start with is with your financial values. This drives the conversation.
To talk about your investments in isolation from your values and these other considerations is a recipe for disaster.
The Fallacy of "Beating the Market"
Have you ever dreamed of picking the perfect fund or the hottest stock and riding it to the top? I talked about this with Stuart (who is exceptionally experienced with creating investment strategies that outperform the market) and it was interesting to note how similar we stood on this.
For the average person it is almost impossible for them to count on being able to beat the market over the long haul. With hundreds of thousands of full time financial money managers out there looking for any advantage they can get, any new information is quickly priced into the market. The bottom line? For the average investor, they are better off using a passive strategy of indexing a section of the market (e.g. the S & P 500, Dow Jones Industrial Average, etc.) versus looking for the next hot fund or security.
If you are going to choose the aggressive approach of beating the market, then you're going to have to pay your dues of time and energy to develop the advantages to let you do that.
Quite frankly the average investor in publicly traded securities will never be able to do this, hence why the indexing strategy is best for them. This is even more true when you factor in the frictional costs of transaction fees and taxes with an actively traded portfolio.
Now I've just given you a taste of what Stuart and I spent a full half-hour talking about. Again, for those of you who are Maui Mastermind Online members, CLICK HERE to listen in to the recording of the entire phone conversation.
For those of you who are not members yet, but want to get a free 30-day trial membership and then access the full conversation, just CLICK HERE.
Also, buy and read his book, Wealth. It's a fantastic book on the subject especially for those of you who are committed to reaching Level Three in your life.
I have a few "announcements" to share with you and then this eLetter will come to a close.
Announcement One: The midnight September 5th deadline is fast approaching.
For those of you who still want to take me up on my special offer to attend the Mini-Maui event AND Financial Fluency workshop this September in Atlanta you need to register now!
The special $797 price for BOTH workshops is only good through midnight Wednesday September 5th. After that the price is going up to $1,497!
So register now! Click here to register or get more information. Or call our office at toll-free 1-888-889-0944.
Announcement Two: Diane and my newest book, The Maui Millionaires for Business, is scheduled to be released and out in bookstores by October 12th. I'll have more information about the book, including a free "sneak peek" of several chapters for you later next month. Just wanted to keep you posted. Of course, for those of you who want to get the first copy off the press, you can always pre-order now!
That's it for the announcements.
I hope you had a great Labor Day weekend.
My very best to you,
David
P.S. If you enjoy getting my regular eLetters on building wealth, investing, and financial fluency, then why not pass along the ideas to a friend? Please feel free to forward this email to a friend or tell them to get any of the free eBooks or wealth resources at our website www.mauimillionaires.com . They'll automatically get my once or twice weekly eLetter.
P.P.S. Better yet, tell them about the upcoming Mini Maui event. They'll learn crucial wealth skills and their $500 tuition (or $500 of the $797 if they take me up on the package offer before it expires at midnight on the 5th) will go to benefit up to 25 different charities. Click here for more information on these events. Or call our office to register at toll-free 1-888-889-0944.
posted by David Finkel at 7:43 AM
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