MAGIC JOHNSON’S LACK OF FINANCIAL LITERACY COST HIM >$1 BILLION!  HOW MUCH IS IT COSTING YOU?

MAGIC JOHNSON’S LACK OF FINANCIAL LITERACY COST HIM >$1 BILLION! HOW MUCH IS IT COSTING YOU?

Confession- my lack of Financial Literacy in the first half of my adult life cost me > $1 million.  That is one reason, I preach, beg, plead with my readers – IMPROVE YOUR DANG FINANCIAL LITERACY!   BEFORE YOU WASTE AND LOSE MORE OF YOUR HARD-EARNED MONEY!

FINANCIAL LITERACY

Financial Literacy is how we should live our lives.  What and when do we spend our money?  How do we prioritize enjoying today (brand new car YOU DO NOT NEED) versus being prepared {401-K; ROTH IRA; ETC.} for tomorrow.   The more you understand the below, the faster you EARN your FINANCIAL FREEDOM!

  • Banks 
  • The Power of Compounding
  • The value of GREAT credit 
  • Good Debt
  • Long-term investing versus Trading
  • Stocks, Bonds, Mutual Funds, ETFs
  • Retirement Savings
  • Real Estate Ownership and Investing
  • How to minimize tax obligations
  • ETC. 

You must take Financial Literacy SERIOUSLY!  I have talked to too many of my readers who worked hard for their money and have little to show for it.  Unfortunately, 60 percent of Americans score an F in Financial Literacy. A grade if I brought to my home, not sure I would be here!

GET OFF YOUR ASS AND BOOST YOUR FINANCIAL LITERACY MY “WILL SMITH” VOICE BLOG

A recent survey found that “those with low levels of financial Literacy are six times more likely to have difficulty making ends meet compared to adults with high levels of financial Literacy.  They’re also five times as likely to lack enough emergency savings to cover one month of expenses and three times more likely to be unable to withstand a $2,000 financial shock.  

Greater financial Literacy translates into higher financial well-being.   Lower financial Literacy is associated with – “BROKE.”

Meanwhile, a separate study calculated how much a lack of financial Literacy could cost you!  At the end of 2021, the National Financial Educators Council (NFEC) surveyed 3,389 adults and found that the average adult loses about $1,400.00 annually due to a lack of financial Literacy.  

BOTTOM LINE

Unfortunately, U.S. financial Literacy is simply not improving.  Respondents to the 2022 TIAA Institute-GFLEC Personal Finance Index, correctly answered only half of the questions, a troubling figure that hasn’t improved since the survey’s first year in 2017.  Comprehending financial risk is the area where adults need the most improvement, as only 36% of questions related to risk were answered correctly in 2022.

IMPROVING YOUR FINANCIAL LITERACY  

TAKE ACTION!

There are endless numbers of magazines, books, podcasts, YouTube, and STUFF.  Here is the secret.  Are you ready?  Get off your ass and find the one that works for you.  Most public schools do not teach financial Literacy. Even more disappointing, nor do majority of U.S. Universities. Your employers do not give a damn.  Just like life- IT IS UP TO YOU!  Read my blog or any blog, magazine you like.  JUST GET STARTED TODAY AND STOP BEING LAZY!  Remember- this is my Will Smith persona.  

SO WHAT THE HECK HAPPENED TO MAGIC?

Magic Johnson is a very wealthy man, but he could have been in a Michael Jordan stratosphere if he had made one critical decision back in his playing days.

Johnson recently revealed why he chose Converse over Nike, and he has been kicking himself (with that YUGEEE foot) ever since.  Back then, Nike was only able to offer him $1 for every pair of shoes sold and 100,000 shares in stock options starting at just $0.18, while Converse was willing to give him $100,000 a year.

“Now, I’ve never heard of stock at 19-years-old.  I had to take the money; I had to take the cash.  Man, I would have been a trillionaire by now.  If you think of getting that stock in 1979 and what it’s worth today?  Yikes.  It kills me every single time I think about that.  Man, Michael Jordan would have been making me so much money,” {Magic Johnson} said during a recent interview as the crowd erupted in laughter.    LA Times reports that he gets $2 million a year from his Converse endorsement.

CONCLUSION

Thanks to his superior Financial Literacy, Michael Jordan earns a five percent royalty on ALL Nike’s gross sales.   Jordan made $180 million in royalties over the past 12 months.  Last year, Jordan made $157 million.

Financial Literacy is how we should live our lives.  What and when do we spend our money?  How do we prioritize enjoying today (brand new car YOU DO NOT NEED) versus being prepared {401-K; ROTH IRA;} for tomorrow.   The more you understand the below financial factors, the faster you EARN your FINANCIAL FREEDOM

  • Banks
  • The Power of Compounding
  • The value of GREAT credit 
  • Good Debt
  • Long-term investing versus Trading
  • How to minimize tax obligations
  • ETC.

APRIL IS NATIONAL FINANCIAL MONTH

April is National Financial Literacy Month.  It’s an excellent opportunity to review and upgrade your financial smarts.

Whether you’re just starting or have been earning your way for quite some time, it’s never too late to learn about saving and improving your financial outlook.  Developing a budget and building financial knowledge is the foundation for a brighter future.

LET’S MAKE SOME MONEY – CRYPTOCURRENCY IS ACCEPTED! 

 

YOUR GREATNESS IS NOT WHAT YOU HAVE; IT’S WHAT YOU GIVE! – SOME CHARITIES I SUPPORT

St Jude Hospital:  https://www.stjude.org/

Wounded Warrior Project:  https://www.woundedwarriorproject.org

Folds of Honor:  https://foldsofhonor.org

Wilson’s No-Kill Animal Shelter:  https://wcnkas.org

 

TRUST ME – YOU WILL LIKE THE BELOW BLOGS! 

BUILDING FINANCIAL FREEDOM/LEGACY TEN DOLLARS AT A TIME!

BUILDING FINANCIAL FREEDOM/LEGACY TEN DOLLARS AT A TIME!

 

FINANCIAL LITERACY IS JUST NOT THAT COMPLICATED – TRUST ME!

https://wealthbuildingpowers.com/2019/04/01/financial-literacy-is-just-not-that-complicated-trust-me/

 

THE ROTH IRA IS SO GOOD. THE FEDS MADE A MISTAKE!

https://wealthbuildingpowers.com/2020/01/13/the-roth-ira-is-so-good-the-feds-made-a-mistake/

 

A ROTH IRA WILL IGNITE THE ENGINE FOR YOUR KID’S FINANCIAL FREEDOM

A ROTH IRA WILL IGNITE THE ENGINE FOR YOUR KIDS FINANCIAL FREEDOM

  

KEEP IT SIMPLE STUPID {KISS} – THE S&P 500 ETF INDEX

KEEP IT SIMPLE STUPID {KISS} – THE S&P 500 ETF INDEX

 

COMPOUND INTEREST IS THE EASIEST WAY TO DOUBLE OR TRIPLE YOUR MONEY

COMPOUND INTEREST IS THE EASIEST WAY TO DOUBLE OR TRIPLE YOUR MONEY

 

WARREN BUFFETT UTILIZED COMPOUND INTEREST TO BECOME THE 3RD RICHEST MAN ON THE PLANET!

WARREN BUFFETT UTILIZED COMPOUND INTEREST TO BECOME THE 3RD RICHEST MAN ON THE PLANET!

RETIREMENT PLANS OTHER THAN THE 401-K TO GENERATE > $1 MILLION PORTFOLIO!

RETIREMENT PLANS OTHER THAN THE 401-K TO GENERATE > $1 MILLION PORTFOLIO!

DO YOU WANT TO JOIN THE 401K PLAN MILLIONAIRE CLUB? {KINDA OF LIKE THE MILE HIGH CLUB – BUT A LOT LONGER LASTING!}

DO YOU WANT TO JOIN THE 401K PLAN MILLIONAIRE CLUB?  {KINDA OF LIKE THE MILE HIGH CLUB – BUT A LOT LONGER LASTING!}

401-K YEAR-END SALE!

401-K YEAR-END SALE! 

TURNING YOUR STIMULUS CHECK INTO MILLIONS $$$$!

https://wealthbuildingpowers.com/2021/03/22/turning-your-stimulus-check-into-financial-freedom/

SO YOU GOT A HUGE TAX REFUND – NOW WHAT?

SO YOU GOT A HUGE TAX REFUND – NOW WHAT?

YOUR BIGGEST RISK TODAY – A LONG LIFE!

YOUR BIGGEST RISK TODAY – A LONG LIFE!

INVESTING IN STOCKS IS COLOR BLIND – WHAT IS STOPPING YOU?

INVESTING IN STOCKS IS COLOR BLIND – WHAT IS STOPPING YOU?

THE NEED FOR EMERGENCY SAVINGS – MORE IMPORTANT TODAY THAN EVER!

THE NEED FOR EMERGENCY SAVINGS – MORE IMPORTANT TODAY THAN EVER!

 

 

 

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Thank you to my followers and readers for your likes and comments.  All comments, recommendations, and feedback are welcomed and utilized to improve this blog.

ABOUT ME

I am a proud nerd (as my beautiful wife and daughter have told me) investment and finance blogger with an N.C.  State, Chemical Engineering, University Rutgers, MBA and Harvard University, Advanced Management education.

I left a corporate career because I desired to make a difference as a speaker and writer.  I was blessed to be coached and mentored by strong women and men in my family and professional life.  It is my time to serve and give back.

DISCLAIMER

I started my first business at ~13 years of age (a small but brilliantly created plant nursery). I am a successful investor in stocks, options, real estate and am happy to share my finance and investment lessons.  I am NOT a licensed financial advisor.  Please do not construe my suggestions on this blog as recommendations for your situation.  As an investor, you must establish your risk/loss tolerance.  Investment in any asset involves risk, including complete loss. 

 Please seek your licensed CPA or fiduciary financial advisors for individual financial advice.  

I write this weekly blog to make an impact by reaching an audience and demonstrating the need for Financial Literacy.  I will help you get there.

To follow my daily posts on Instagram, CLICK BELOW:

 http://instagram.com/wealth_building_powers

 

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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