Wizards of Wealth

Those were the days; a simpler life. Sunday nights were for family dinners and Ed Sullivan.

Mom stayed home and raised the kids while Pop went to work.

While nostalgic thoughts are important parts of our psyche, Happy Days are not here again.

The rat race continues. Tired or not, maintaining our current lifestyle seems to demand more time to support it while we suffer more intrusions into our personal lives.

Regaining control requires eliminating good things from our activities. Making time for only our highest priorities allows us to focus on the “vital few instead of the trivial many“.

Self-help superstar entrepreneur and business guru Brian Tracy continually advocates the importance of leveraging our time and resources. Nothing will change until we do.

Speaking of change, be aware of these wealth preservation thoughts during these turbulent times with a number of banks becoming insolvent. 

Gotta go, time for Laverne and Shirley .

The economy continues to shrivel, and is being shrink-wrapped by the media hype of gloom and doom.

We have had our share of asian contagion, mad cow disease, Y2K, and other memorable fears.

The reality is that life goes on, (and that’s a good thing), and we must continue to put forth our best effort at raising the bar for our financial security.

There are some things that money can’t buy , for everything else there’s…

Well, either we have it or we don’t. If we don’t have it, then we can borrow it, and pay it back later, with interest of course.

Getting off that treadmill is not as easy as it sounds.

Breaking the cycle of credit card debt is one of the most important first steps we can do to move down the road towards our financial freedom.

Saving, although unglamorous, is another.

Raising our income through income-producing businesses is vital to anyone who wants to break the trap of working for a living.

It has never been easier to begin Inertnational Commerce via Web-based businesses, through template designers like Darren Hoyt, Michael Pollack, Brian Gardner, and Cory Miller.

Fail our way to success; all we need is one good idea.

How about masterminding a social networking site like bebo ?

If a plan is necessary for success; putting the plan into action is vital.

Only the emotionless can read this article and not get chills.

I guess these are really desperate times for many people, especially those who tie their self-esteem to their net worth.

The simple steps to creating wealth are on hold for many would-be millionaires. Paying for gas, food, and the mortgage now have taken center stage before building the investment portfolios.

As the kids used to ask, “are we there yet?”

No one knows where the bottom is for the mess we have gotten ourselves into.

What I do know, is that there is always opportunity.

Any rational person will get their head above water, and figure out how to make a profit from whatever ideas seem to make sense in the current economic climate.

Here is one man’s idea. He is a mortgage broker who has recognized that his previous business model wasn’t working, and has made appropriate changes to help himself by helping others.

What’s your idea?

On a sad note, Randy Pausch will be missed, but his ideas have left quite a legacy for his family. He was an inspiration for all and a true wizard of wealth. Our sympathy and condolences are extended to his family in their time of sorrow.

The government has legislation approved to bailout “400,000″ potential foreclosure victims (who knows what the real number is), awaiting President Bush’s approval.

If you are into investing and trading, there are some sophisticated thinkers out there who can help us to better understand the social and herd pyschology. There are times we want to run with the herd. If they are being led to the slaughter, however, it may be a good idea to become part of the buthcher’s team.

There is a reationship between Point A and Point B, whether we can see it or not.

A favorite past time of mine is connecting the dots, although many times I am quite obtuse.

I believe in learning from experts. One of my daughters is an expert on books. A number of years ago I asked her a personal question: “If you were stranded on a desert island and could have only one book with you to read, what would you like it to be?”

Without hesitation, this was her answer. My reading list is mostly non-fiction, but that should explain to you why this semingly out of character book is in my library. To this day, I still agree with her choice.

Read what defense attorney Mark Zauderer has to say regarding connecting the dots in a current fraud and conspiracy case involving former Bear Stearns executives.

Evidently, many borrowers were duped, and Operation Malicious Mortgage is aimed at identifying individuals who took advantage of the hapless homeowners in the current mortgage crisis.

On a personal level, we can never abdicate the responsibility for our financial freedom to anyone else, any more than we can expect a Doctor to be responsible for the choices we make regarding our health.

On a collective level, evidently things are not quite so simple. Evidently we have personally racked up a cool half million dollars of debt per household while we hid our head in the sand. Andrew Yarrow offers chilling evidence that should be sobering to even the most liberal of spenders.

Connecting all these dots, a not-so-pretty picture is beginning to emerge.

We better say a prayer.

Miss Mary Mack, Mack, Mack

All dressed in black, black, black…

So goes the childhood rhyme the kids used to chant when playing hand slapping games.

Speaking of slapping Mack, I guess IndyMac got themselves into a little trouble, becoming the latest casualty of the subprime wars.

In a related development, another Mac named Freddie better get off its Fanny (them too) and figure out how to dig out from this curent mess.

A government bailout is the politician’s answer, and the American taxpayer (you and me) are  the one’s who will be shelling out the cash.

A major premise of the Wizardzofwealth philosophy is actually quite simple, and borrowed from Rich Dad, Poor Dad: “When you find yourself in a hole, stop digging.”

Would someone please remind these supposedely intelligent people of that basic rule?

There is enough gloom and doom out there, and while we do not wish to add more fuel to the fire, we again remind our readers that now is no time to be a hero.

I was talking with a relative yesterday who is suffering through a triple play against him already this year: He lost his job, his house has gone down 30% in value, and his 401 k retirement fund lost some 50% . As you may imagine, he is not a happy camper.

Robert Prechter talks a lot about social mood in his Elliot Wave publications. It gives me great insight into my relative’s need for assistance in dealing with anger mangement.

When I asked him what he was going to do about it, he said “what can you do about it, nothing!”

The heart of the problem for many average American’s fatalistic attitudes is their financial ignorance.

Educating ourselves and then applying that knowledge is the way we can help ourselves personally.

Read investment experts like Jim Shepherd to better understand hedging devices that will protect ourselves from the coming storm.

It is never too late to learn how to protect the well-being of our loved-ones.

Now there is an oxymoron if I ever heard one.

I have found that Freedom is not really free.

One way or another, sooner or later, there is a price that must be paid.

Are you wiling to pay the price?

Try running a half mile. As you stand there (if you’re like me, you would be lying down on your back) gasping for air, even your body knows that an oxygen debt must be repaid.

It has become popular to bash America lately. While not perfect, there is much to be thankful for as we are living in a land of freedom of opportunity, where we are rewarded according to the risks we are willing to take. Again and again, with no limit to the choices we can make.

Paid for by more than a few brave men and women.

While the present economic crisis continues to concern us all, I choose to focus on the endless possibilities of success that are available to any us.

Hard work, creative imagination, being in the right place at the right time, master-mind alliances, providing value to our clients or customers, investing in vehicles that are hedges against economic collapse are all choices we can make to provide financial independence for ourselves and those we love.

God bless America.

April 23 is financial freedom day, commonly known as Tax freedom day.

This is the day when I can stop working to pay for my government’s expenses, through taxes, and begin to pay myself.

I need to manage my own debt, and I fully accept that responsibility. When I think about the excesses of the bureaucrats, however, that scares the hell out of me.

I have made the tough choices when necessary, and live within my means. After all, unlike the government, I cannot print more money to pay my bills.

What I can do is good enough; abide by the Laws of wealth, fortifying my defenses and contunually re-creating my offensive game plan.

One of our basic premises is that creating wealth is not easy if you are doing what everyone else is doing. 

When the economy closes doors to the past, opportunities open only to the positive thinking, observant entrepreneurs who are paying attention.

We have paid our penance for the government, now it’s time to focus on helping ourselves.

One of the easiest ways to do that is to find lots of people who are hurting and figure out how to assist them en masse.

The first part of that equation should be no problem, the second part may take a little more time.

In an economy that is booming, most of our financial “mistakes” and indiscretions are usually easily forgiven.

We buy a house, and two years later the “value” has gone up, and we think we are financial geniuses. We invest some money in the stock market, and our accounts go up.

Have you noticed that somtimes assets become liabilities?

Tying our self esteem to the fluctuations of our asset choices is all too easy to do, but a big mistake in my opinion.

No one can predict with 100% confidence which way markets will move. Although we cannot control the direction of movements, we can control our risk.

We can also control our fearful thoughts, and therefore our actions.

In good times, it is easy to be charitable and help others with our time, money, and advice.

In hard times, it is more prudent to be aware of the flat tire syndrome.

We must fix our own flat tire first before we can move on down the road of life and help others.

Sometimes standing still is not much fun but a better alternative than going backwards. Focus on reducing debt, while increasing income and savings. Then help teach others how to do the same.

Reducing risk is a conservative strategy for staying in the game for the long haul, while waiting for markets to inevitably turn the corner.

Think outside the box and look for new strategies; in the shifting global marketplace, there are always opportunites for new ideas.

Being unhedged in a volatile market is just asking for trouble.

I was recently on vacation, seeking respite from the brutal cold of the Northeast in winter.

My wife and I were having fun by mid day at poolside.  She had located inexpensive airfare on a non-stop flight that left the frigid temperatures of a few hours and 1500 miles ago a distant memory.

Suddenly I became aware of a woman engrossed in the headlines of the newspaper proclaiming the death of stocks.

She was probably in her late 50’s, and wore a bathing suit that did little to disguise her obvious love for food. I have noticed that a lack of discipline in one area of our lives is often manifested in other areas as well.

Horrified, she turned to me and said “This is just awful, I don’t know what I am going to do. All of my life savings is invested in the market, and I need it for my retirement.”

I mumbled something profound, like “Talk with your financial advisor, I am sure they can help you.”

She did not prolong the conversation, obviously uncomfortable talking about financial issues.

She had no “Plan B”.

I thought how sad it was for her to have arrived at this point in her life, unaware of sophisticated instruments like “puts” and “calls” and “cash”. “Shorting the market” would actually make her wealthier as volatility increased, and the concept of hedging would avoid leaving all of her assets exposed.

She probably has Homeowner’s and Fire Insurance; why not protect her money as well?

Basic financial literacy is a must as we learn how to make adjustments in the ever-changing global market.

Through our free website we hope to expose people to some of the best resources we have found available to teach us how to take control of our financial destiny.

Hopefully you willl join us, and share some of the resources you are aware of with our community.

My hedge against the snowy chill of winter is a non-stop flight; what’s yours?

Harv T Eker proposes that we all have a “financial blueprint” that limits and encompasses our financial reality.

Donald Trump for example, has a lower threshold than most for “hairstyle”, but has a significantly higher financial thermostat than most of us. 

Since the average population has the concept of “working for a living”, we are not comfortable unless we are trading our time for the money that comes into our life. 

Another reality to consider is that money comes from results, rather than the hours that we work. Think of business owners, entertainers, professional athletes, and professional traders and money managers. Timothy Ferriss has written an outsanding book promoting the value of this idea.

Entrepreneurs often expect to gain time freedom by striking it rich through their creative business pursuits. 

While that may be the case for some lucky visionaries, it is highly more likely that the typical entrepreneur will spend years of long hours and hard work testing different avenues to develop a system that is “an overnight success”. The general public is witness to this phenomenon when the product or service is right, the price is right, and the timing is right. 

Do you have enough passion for your endeavor that you will continue to persevere through the pain of seemingly endless days and nights with modest rewards until success inevitably arrives? 

Or will you be one of the fortunate few who listens to Mr. Eker’s advice and raise your expectation level, leap-frogging over years of self-limiting steps?

P.S. I told you this guy is great. He is one of the best thinkers and doers out there today.