M
y question for you today is: What is wealth?
How do we create it? How do we maintain it?
First of all, what is real wealth? I think wealth is when you have capital that you’ve invested into other assets that then produce relatively sustainable cash flow and income on a passive basis.
Wealth isn’t just having a pile of money or equities in stocks, bonds, mutual funds, or even Real Estate – because if it’s not producing the cash flow, then what do you really have?
Real wealth gives you freedom and options. It produces enough cash flow that you don’t have to work trading time for dollars to sustain your lifestyle and provide security for your family.
Then you’re truly free. And when you get to that point, everything expands – particularly your time, peace of mind, and ability to be more than you are when you’re working hard in your career.
An investment should be something that’s going to produce regular cash flow income. Trying to time the market with an asset like a stock, that’s transactional income. That’s not an investment. It’s a business, or speculation, and that’s fine if that’s the game you want to play. But there’s no actual passivity to it. You’ve got to be in the game all the time.
There’s nothing wrong with that, but keep the difference straight. So many times I see younger people getting caught up in the euphoria of an irrationally exuberant marketplace and believing they can trade stocks and commodities like a Wolf of Wall Street and make quick profits. In my view, that’s gambling. A true investment is totally different from speculation or trading (i.e Wall Street). And wealth is not some pile of money – real wealth is created by cash flow producing assets that give you the Freedom to live life on your own terms.
You’re probably doing pretty darn well with the business of your business. But if you’re not working on the business of your money, abdicating your wealth construction to Wall Street instead of learning how to create real wealth,…
...then you’re playing the wrong game.
To your freedom!
P.S. I'm hosting some tax and entity experts for a live webclass next Tuesday on how to survive the coming tax tsunami – you can save your spot here.
P.P.S. Whenever you’re ready, here are some other ways I can help fast track you to your Freedom goal (you’re closer than you think):
1. Schedule a Call with Me:
If you’d like to replace your active practice income with passive investment income within 2-3 years, and you have at least $1M in available capital (can include residential/practice equity or practice sale), then click the link to jump on a quick call with my team. If it looks like there is a mutual fit, you’ll have the opportunity to schedule a call with me directly. www.freedomfounders.com/schedule
2. Get Your Free Retirement Scorecard:
Benchmark your retirement and wealth-building against hundreds of other practice professionals, and get personalized feedback on your biggest opportunities and leverage points. Go to www.FreedomFounders.com/Scorecard to take the 3 minute assessment and get your scorecard.
3. Ready to Step Away?
“How Much is Enough?” This simple question keeps hard-working professionals at the hamster wheel of active income far longer than they need to be. Watch this free training, and discover a proven model for determining how much you really need before hanging up the handpiece! www.freedomfounders.com/training
4. Apply To Visit The Mastermind:
If you’d like to join dozens of dentists, docs, and practice professionals on the fast track to Freedom (3-5 years or less), visit www.freedomfounders.com/step-1 to apply for a guest seat.
