WEALTH BUILDING POWERS – ACTION PLAN

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From my life lessons and LOTS of reading and studying, I built the below actions designed to build YOUR Sustainable Wealth. In 2018, I started drafting blog articles that outlined below actions in greater detail.

As you think about what you need to create SUSTAINABLE (LIFETIME) WEALTH, let me know if I missed any major strategies or actions you would include.
{Please scroll to the end of this blog and write your suggestions in the Leave A Reply – Section. And hit send.

2019 blogs will continue to outline details for all below actions. Last year, I did not discuss the importance and need for various insurance policies. Insurance is simply a risk payment tool. There are a number of insurance policies we need during our lifetime. In future blogs, we will explore various pros and cons of different insurance policies such as: Life, Health, Short and Long Term Disability, Umbrella Policies; House/Rental Insurance; Rental Property Insurance; Long Term Care. If I missed any insurance policies please scroll to the end of this blog and write your suggestions in the Leave A Reply – Section. And hit send.

WEALTH BUILDING POWERS – ACTION PLAN

WINNING: Celebrate YOUR Wins. In 2018, every reader experienced a success, most likely multiple successes. If you targeted saving 20% of your income in 2018, but actually saved 18%, is that a failure? That is a 90% success rate! CONGRATULATIONS! We spend too much time beating ourselves for what we perceive as failures, even when we made good progress and simply need to learn and move on. As you achieve success in building your wealth- pause and celebrate. CELEBRATING YOUR WINS WITH THOSE YOU LOVE WILL CONTINUOUSLY MOTIVATE YOU!

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COMPETENCY: Public education and unfortunately majority of colleges teach little about finance and investments. Therefore, it is YOUR responsibility to increase your Financial and Investment Competency. I recall the first time I picked up the Wall Street Journal. I enjoyed the articles but I was clueless when I saw the stock market tables and charts. I needed to increase my competency, to enable me to utilize this wealth of information. It is easier than ever today to build your investment and financial skills. One of my favorite go to sources is Udemy, which hosts several finance and investment courses, often times sold for $10. I will discuss other resources in future blogs.

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CONTINUOUS LEARNING: Continue expanding your knowledge base beyond work and investments. Tackle new skills in 2019. Successful and wealthy people keep learning for their entire life. I received two workshops for a Christmas present. The Great Courses- “Concert Masterworks’ and “Math and Magic”. Remember I am a nerd!

BUDGETING: What is more important, how much you make, or how much you save? There are numerous examples of Librarians, Teachers, City Employees, {EVERYDAY AMERICANS} leaving multi-million dollar estates. Because they saved high percentages of their income. Wealthy people save 20% or MORE of their income. How much do you save? {Do the math, it’s NOT magic.} Set a target, achieve it, remember to celebrate and then set a higher target, until you achieve 20% or more. [Note-Savings included retirement dollars (401-K, IRA’s, etc and other dollars) plus Non Retirement Dollars} Create your budget where INCOME IS ALWAYS GREATER THAN EXPENSES -100 PERCENT!

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PAY YOURSELF FIRST: Include as part of your expenses, your savings. Build into your budget a savings target and pay yourself just like you pay the rent. NO EXCUSES. For decades I have allotted percentages of my income to one or more savings accounts.

SIX MONTHS EMERGENCY FUNDS: I have seen several recent articles where federal employees, who are negatively, impacted by the government shutdown are finding other jobs to help pay the bills. This is an example of why YOU need MINIMUM six-months of expenses in savings. I have tapped into that savings several times in my career. Start a separate savings account at your bank or investment house and set up auto deposits from your paycheck or income. Start with a number low enough it is not an issue. How about $15 or $25 a week? At the end of the year, you will have accumulated between $780 and $1,300. Now you have a small emergency fund. Your goal is to keep increasing your weekly or monthly deposits. When emergency strikes {NOT IF – BUT WHEN}, you can sign into your new online savings account and transfer the money to your checking.

INSURANCES: Buy necessary insurance, dependent on your needs and those of your family: Life, Health, Home, Disability, Long-Term Care. Stay Tuned for more information in 2019 blogs.

CREDIT SCORE: Know your Credit Score and take steps to improve, based on your report data. Higher credit scores will lower interest rates on mortgages, etc. and save you tens of thousands of dollars.

RETIREMENT CONTRIBUTIONS: Get started and contribute enough money to your 401(k) (or similar retirement plan) to get the employer match — and take the steps to reach maximum contribution amount. ($18,500 in 2018, unless you are 55 years or older, than $24,500) If your workplace offers a 401(k) or 403(b) etc., sign up and start contributing. If your company does NOT offer a 401-K plan start your own Roth IRA, account offered by most investment firms.

ZERO DEBT: Pay down your debt and avoid high-interest debt, like credit card debt.

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IRA: To increase wealth, start a Roth or traditional IRA. Start a Roth IRA and automatically fund it. I have one at Fidelity and Vanguard. You can literally open an IRA account in less than ten minutes. Just turn Netflix off for ten minutes! But turn Netflix back on, as I own the stock!

STOCK MARKET: Invest in a taxable brokerage account. Consider the S&P 500 ETF (low cost and out performs majority of the managed and expensive mutual funds)

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MULTIPLE STREAMS OF INCOME: Build Multiple Streams of Income {Rental Properties; House Flips; Mowing lawns, Clearing snow (maybe not a good Florida business) Side Hustle; Dividends; Whatever you have skills in -Start your own business.

RESULTS: RETIRE HEALTHY, WEALTHY AND EARLY

ALL COMMENTS AND FEEDBACK ARE WELCOME. SEE BELOW LEAVE A REPLY SECTION. And hit send.

DISCLAIMER

I am a proud nerd (my beautiful wife and daughter told me so) investment and finance blogger, with University Rutgers, MBA and Harvard University, Advanced Management.
I am a successful investor in equities and real estate and happy to share my personal finance and investment lessons learned with you. I am NOT however, a licensed financial advisor. Please do not construe my suggestions on this blog, as recommendations for your personal situation. For individual finance advice please seek your own licensed CPA or financial advisors.

Powers Investments Management, LLC

This blog will provide, information and simple strategies, that will assist you to achieve YOUR financial objectives and long term targets. For over 30 years, I solved multi-million dollar problems, for Fortune 10-250, companies. My formal education includes: Business, Finance and Chemical Engineering {Problem Solving} at: Harvard, Rutgers and North Carolina State. And an additional 30+ years, managing my family’s investment decisions. I currently manage/advise people with net-worths ranging from the tens of thousands to several million dollars.

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