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Lexus.
ritzy
Wealth is what you accumulate, not what you spend.
Darryl Strawberry.
run-ins
Ms. O’Donnell taught school for more than 50 years. When she retired in her 70s, she was making around $8,500 a year. When she died at age 100, she left almost $2 million to 10 different charities, including her church, schools she attended, and a boy scout troop. How could a woman earning less than $10,000 a year accumulate a small fortune? Simple. She built a long-term investment pipeline by making regular monthly investments in quality stocks and allowing them to compound over time.
“Margaret enjoyed stocks,” said her broker, Bob Wolanske. “The first time I met her, she threw three papers on my desk and said, ‘What should I do with these dogs?’ referring to some stocks that weren’t doing well.”
Over the next 20 years, Margaret’s portfolio bloomed to include a collection of blue chip stocks, tax-exempt bonds, and utility stocks that she held until her death. She rarely touched any of her investments, enabling her retirement pipeline to grow year after year after year.
Small Sacrifices, Big Results Now, in case you’re thinking that Margaret was one of those penny-pinching spinsters who clipped coupons and saved used tea bags, you’d be wrong. She ate out often with friends. Drove a late-model Buick. And frequently flew to Europe to enjoy long vacations. She didn’t deny herself the pleasures of life. But she also showed discipline and restraint in her spending. And she saved and invested each and every month, even in retirement. You see, Margaret was the classic example of a long-term pipeline builder. She started saving and investing in her ...
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lug
priming
Leverage is an awesome concept—a civilization-altering concept. In fact, without leverage, you wouldn’t be holding this book right now! Let me explain. In 1440, a young German entrepreneur named Johannes Gutenberg converted a wine press into the world’s first commercial printing press. He printed 180 copies of the Gutenberg Bible and sold them all within a few days. Gutenberg’s printing press was an immediate success. Within decades, printing presses had sprung up all over Europe. By the mid-1600s, there were eight million printed books circulating in Europe, which was 10 times the number of
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he leveraged other people’s money
Point to connect with - antisemitism
Legend has it that one of the ancient emperors of China fell in love with a new game called “chess.” The emperor decided to reward the game’s creator. He summoned the inventor to the royal palace and announced to the court that the inventor would be granted one wish. “I am honored, Your Highness,” the inventor muttered humbly. “My wish is that you grant me one grain of rice.” “Just one grain of rice?” the startled emperor asked.
The emperor stopped the game and called in the land’s wisest mathematicians. They tossed the beads of their abacuses and made hasty markings on slate boards. After much fussing, the mathematicians reached a unanimous conclusion:
The emperor halted the demonstration and made the inventor an offer he couldn’t refuse—if the emperor were released from his word, the inventor would receive a country estate with hundreds of acres of fertile rice fields. The inventor gladly accepted. Everyone toasted the inventor and congratulated him on his wisdom and cleverness. And he happily retired to his estate, and enjoyed many, many years in splendid comfort.
The doubling concept has become such a cornerstone of wealth creation that I call it “the Palm Beach Pipeline,” named after the ritzy city in Florida where hundreds of the world’s richest heirs own sprawling estates overlooking the Atlantic Ocean. The rich people in Palm Beach don’t have to work for money. They make money work for them! How? They invest large amounts of inherited money in pipelines that churn out huge profits year in and year out, whether the investors work or not. Palm Beach Pipelines are fueled by the doubling concept, which means the lucky heirs can enjoy a fabulous
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The Rule of 72 is a simple formula for calculating how many years it would take for an investment to double.
Doubling Concept or Rule of 72 1) Determine the annual interest rate on your investment. 2) Divide the interest rate into 72. 3) The result is the number of years it takes for your investment to double.
heiress
By leveraging the power of compounding, people who inherit million-dollar fortunes can live like royalty and still leave an even bigger fortune for their children!
amassed
a powerful little book called Kids and Money by Michael J. Searls. Actually, the book could be titled People and Money, because the principles outlined by Searls apply to young and old alike.
Pay Yourself First! The key to leveraging your money like rich people do is to “pay yourself first” by making regular monthly contributions into investment accounts—and then leaving the money to compound!
But the truth is, the vast majority of millionaires in this country didn’t inherit their fortunes. Statistics show that four out of five millionaires never inherited more than $10,000. But what they did do was copy the investment strategies of the Rockefellers and the Kennedys.
Typically, millionaires save 15% to 20% of their gross income and invest it wisely in asset-building pipelines, such as stocks, bonds, closely-held businesses, rental property, commercial real estate, pension funds, and the like.
Today, average people can join the Millionaire’s Club, too. It’s open to anyone with the discipline to invest a regular portion of their income and let it compound over time.
There’s an old Appalachian expression that sums up the difference between money le-verage and time leverage. It goes like this: There are two ways to get to the top of a giant oak tree. You can sit on an acorn and wait. Or you can climb it.
acorn
Humorist Art Buchwald put it this way: “Whether it’s the best of times or the worst of times, it’s the only time we got.”
Successful people in every line of work value their time, and they seek every opportunity to leverage their time!
Smart people understand that the best time to feather their nest is while business is booming. Smart people erect safety nets before a recession starts, not during! That’s why I tell people that today is the best time to build their pipelines, not when the economy hits the skids.
Today, pipelines are no longer the province of the rich. Anyone with a little time and a lot of drive can leverage their time to build a “people’s pipeline” in two to five years that will flow for years or even decades!
dyas,
Gary Hamel, author of the bestseller Leading the Revolution, says that in a hi-tech world, “Only those companies that are capable of creating industry revolutions will prosper in the New Economy.” Hamel argues that today, companies will compete not in products and services but in the ability to devise ideas for innovative businesses.
scrimped
underwater pad for writing notes.
When Thomas J. Stanley and William D. Danko, the authors of The Millionaire Next Door, started researching their book, they sought interviews with people who had a net worth of a million dollars or more. Assuming that the richest people lived in the most expensive houses, the authors surveyed people in upscale neighborhoods across the country. But the authors soon discovered that many people living in big homes and driving expensive cars hadn’t accumulated much wealth. Why? Because they were spending their money to support lavish lifestyles instead of putting a portion of it aside to build
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surefire
Jeremy Siegel’s book, Stocks for the Long Run,
few
gloat,”
