Thanks for all the positive feedback on Wednesday’s post. I guess it really struck a nerve with a lot of you. I decided to come back to that same topic and share 7 more important tips on building wealth independent of your business.
First I wanted to remind you to register to join me for a 90-minute online workshop I am personally teaching next Wednesday (July 14th) at 5pm pacific/8pm eastern called, “A Concrete Road Map to Build Level Three Wealth“.
The Three Bottom Lines for Wednesday’s Online Workshop:
1. A proven model upon which to base your business and financial success.
2. A concrete road map you can follow to IMPLEMENT this new model in your business and your investments.
3. How to overcome the three biggest obstacles that stand in your way of reaching your financial dreams and aspirations.
——> For More Information and to Reserve Your Seat
Once you’ve registered, you’ll get (via email) the 10-page PDF workbook for the online workshop including the access code and link to attend (or phone number if you want to attend via conference line). We suggest you print it out and have it to take your notes on so that you get the most out of our time together.
Okay, now on to those 7 additional wealth tips to help you build wealth independent of your business:
1. Risk comes from not knowing what you’re doing, so pay the price to learn what you’re doing! Sounds obvious I know, but most business owners I know are ego driven and uniformed investors. As you can imagine this is a an explosive combination. They tend to let their business success blind them into thinking that they know more then they really do.
2. Make sure you’re investment plan matches the financial stage you’re at. I made this mistake and it cost me millions… When I sold my first two companies I got a LARGE wire transfer from my buyer. What I now know (having paid the price to learn) is that I needed to invest in passive residual producing cash flow investments, not in non-cash producing “capital gain, forced appreciation” deals. But I did what I was used to doing and as a result, I made several investment missteps. Be very conscious that your investments must match your current financial situation, don’t just follow your old plan that got you to your current position. Even if it worked brilliantly it may no longer apply to your new situation.
3. A portion of your investment portfolio must hedge your risk in your current business. That means that a percentage of your investment portfolio is something that will either do well if your main business has a downturn, or at the very least is insulated from any industry or macro-economic stress that impacts your business.
4. Do your due diligence BEFORE you invest. Due diligence costs in the hundreds or thousands of dollars. The price of NOT doing you due diligence is in the hundreds of thousands or millions of dollars.
5. If the deal cannot afford the lawyers, don’t do the deal. Always have your attorney and CPA (and if possible your mastermind group) give you their objective input before you make the investment. And make sure your attorney reviews all the deal documentation before you sign! Seems obvious, but I see the consequences of business owners who skip this step.
6. Concentrate your investments in fewer, better deals. There is a cost to every deal, make sure your deal is meaningful enough to merit the time, focus, and expense. The wealthiest people believe in concentration of capital. Sure they diversify, but not with hundreds of smaller investments. You can hold 5-10 investments and still have the needed diversification. How can you really do 100 great investment moves? And look after them after you’ve made them? It’s too much. Concentration of capital is the name of the game (with diversification in 5-10 investments you know and understand.)
7. Buy America while it’s on sale. This is a quote from a friend and new Maui Advisor David Stech. David’s point is that there has never been a better time to buy great assets cheap than you’ll see over the next 36 months. I guess you could call this the upside of a very challenging economic climate.
I hope you put these 7 tips to great use in your financial life.
Have a great rest of your weekend.
I hope you invest in yourself and your success and decide to join me for the online workshop next Wednesday (July 14th). We’ll email you the 10-page PDF workbook and log in code as soon as you register.
——> For More Information and to Reserve Your Seat
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