Do you ever wonder why certain people can accumulate so much wealth? It appears as if everything comes so natural to them! On the other hand, no matter how hard you try to get ahead, you find yourself stuck in the same situation. You keep telling yourself that “someday” you are going to invest in real estate or “someday” you are going to travel more, or “someday” you are going to start saving for retirement. Albert Einstein once defined insanity as “doing the same thing over and over and expecting different results” (thinkexist.com). You are certainly not insane, but are there steps you can take to improve your financial situation potentially? I have been in the financial world over twenty-two years and have spoken to hundreds of people who have accumulated an estate, but also to people who have not accumulated an estate. I noticed that a major difference between the two camps is that the ones with the estate have learned how to pay themselves first by additional savings through 401(k)s, life insurances with cash value, 403(b)s and other types of saving vehicles. They pay themselves before they spend a single penny; thus they accumulate assets. Another core difference is the implementation of diversification. Once the assets are accumulated, they tend to diversify the money into different types of assets such as real estate, multiple businesses, and alternative investments.
Diversification does not ensure a profit or protect against losses in a declining market, but it can provide a degree of protection to an individual’s overall portfolio. Diversifying can potentially provide tax advantages as well. Many of the people who have accumulated wealth also have a team to guide and coach them. The team can include a tax advisor (not just a tax preparer), and a financial strategist who focuses on an individual’s financial goals as a whole. Other important members of a team might be legal advisors, coaches, mentors and professionals who can provide guidance. You have to realize you can’t do it all by yourself, and the good news is that you don’t need to! I will never forget the day twenty years ago when I met a retired couple in Pasadena, “Mary and John.” They had a three million dollar estate, and yet never made more than thirty thousand dollars a year in income. Please keep in mind that John retired in the 80s. Out of curiosity, I asked them how they had accumulated their estate. John told me that when he was in 1st grade, he was determined to save his pennies in a piggy bank! He took that simple advice to heart, and from that day on; he kept 15% of everything he made. As time passed and his savings grew, he was able to buy real estate and then eventually invested in business as a silent partner, since he had a full-time job. It is interesting how a simple behavior and disciple can potentially create financial freedom. What habits do you need to change to get different results? What steps can you take that can likely improve your financial situation? If you are interested in learning more about investments and how you can potentially achieve economic freedom call us at 714-577- 8758 or please e-mail us at firstname.lastname@example.org.Lorraine Conaway
LUTCF, CSPG, CRC
Securities offered through J.P. Turner & Company, LLC (Member SIPC). Financial planning and investment advisory services provided through J.P.Turner & Company Capital Management, LLC (a registered investment advisor). J. P. Turner & Company, LLC and J.P. Turner & Company Capital Management, LLC are not affiliated with Conaway & Conaway or Complete Controller. 151 Yorba Street Suite 200 Tustin, CA 92780: JPT051414-870