HOW TO GET RICH–SLOWLY
Follow these steps as listed:
1. Accumulate EIGHT months cash or readily liquid reserve, i.e. Money Market Funds. Here, you are not looking for growth but safety and security. If the worst should happen you have a cushion.
2. 401K accounts, the very best investment. Sign up for the maximum the company will match.
3. Ira and/or Roth accounts. Tax advantage plus provides for retirement years. Roth is preferred because your money is taxed as you save it. Therefore, when you are older and need the money, there will be no taxes withheld.
4. Long term Real-estate investment. Great tax benefits and long term appreciation. Future income as you grow older or can sell off in your latter years if you want.
5. Avoid the stock market. It’s like going to Vegas, the insiders always win. If you do go there, only stable companies that pays a dividend.
6. Diversify with stock Index funds. Provides safety against market fluctuations and grows over the long term.
7. Life insurance, but only whole life (not term) that can be borrowed against or cashed out when you are old.
8. After you have accomplished all the above then you can take some risk with growth potential stocks such as new issues going public. Be prudent with the amounts invested. Choose the stocks carefully and monitor closely. Don’t be afraid to dump and cut loses if need be.
9. Live modestly but comfortably. Do not try to always have the biggest, best, etc. Don’t give a damn what the Jones’s do and don’t try to keep up with them. Those are the ones whose homes are now being foreclosed.
Have a happy life.
