The truth was right there in front of my eyes. But I couldn't see it.
I had become blind to the reality. I bought into the wealth story I'd been told all my life:
Sound familiar? There's only one problem: It doesn't lead to True Wealth.
Not by a long shot...
What is this True Wealth thing? you're wondering...
Let me explain.
True Wealth is having enough money, time and health to live an incredible life and make an impact on your world.
Sound too wishy washy and new age?
Ok, how about this: True Wealth is having >$3million or the cash-flow equivalent.
Why >$3million? Because that translates into roughly $10,000 per month in income without touching the principal. If you had that much, plus whatever Social Security pays you, you can live a darn good life.
You're not going to be sailing the world on a yacht, but you can do a lot of the stuff you want.
And of course if you have more, say $5million or $10million, well then you can have some serious fun! And also make a huge impact on your family and the things you care about:
You get the idea. Not only not having to work, but having the resources to do those important things you always wanted.
What do I mean by "cash-flow equivalent"?
That means that you have some productive assets that give you at least $10,000 per month in income.
We'll get to the details of that in a moment.
So if stocks and mutual funds are not the way to build True Wealth, what is?
1) Private operating businesses and
2) Private, productive real estate deals.
Wait, that's it? Yes, it's that simple.
Here's a quick test of this idea: Think of the five wealthiest people you know.
I'd be willing to bet most if not all of them got that way through private business or real estate.
The owner of a successful startup business, rental property owners and land developers are obviously in this category.
But what about that attorney? Likely they're a partner, meaning they share in the ownership profits of the firm.
That local doctor? She probably owns her own practice as well as the building she's in.
What about that executive from the Fortune 500 company? Are they given shares of the company stock as part of their pay? That's a private deal, even though it make be a public stock.
If you're still having trouble believing that stocks, bonds and mutual funds are NOT the way, just look around.
The evidence is everywhere. There are studies on high net worth investors that say the same thing.
The important thing is for you to believe this and embrace it.
You can get to True Wealth, but probably not the way you were taught!
So tell me if I'm right about the wealthiest people you know! Are they business owners or real estate investors? Partners in a private firm?
If not, how did they get their wealth?
Answer below in the comments.
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