101 Reasons Why Managing Your Own Money Is The Only Way To Build Wealth

101 Reasons Why Managing Your Own Money Is The Only Way To Build Wealth



101 Reasons Why Managing Your Own Money is​ the​ Only Way To Build Wealth
101 Reasons Why You Should Manage Your Own Money
Building Wealth Millions of​ people all over the​ world seek the​ key to​ building wealth, yet it​ remains an​ ever elusive achievement to​ even those that have more resources than the​ average Joe and​ ​ Jane .​

In fact, it​ doesn’t matter if​ ​ your black, white, Latino, Asian, Christian, Buddhist, Muslim, Brazilian, Japanese, Kuwaiti, British, German, Spanish, Italian, Cuban, Chilean, American, or​ Canadian, the​ key to​ building wealth is​ the​ same no matter your nationality, ethnicity, race, or​ religion .​

Yet so many people seek so many different solutions such as​ skipping from Merrill Lynch to​ Goldman Sachs to​ J.P .​

Morgan, to​ seeking out independent financial consultants, to​ speculating in​ assets they don’t understand, to​ buying investment newsletters to​ do their research for​ them .​

And the​ great majority of​ people that have been searching in​ this manner to​ build wealth are still searching today .​


Why?
The answer is​ quite simple .​

All of​ these investors have a​ common denominator of​ failure and​ ​ one lacking common denominator that is​ highly predictive of​ success .​

Their common denominator of​ failure that binds them together is​ the​ fact that all of​ their searches to​ build wealth were motivated by the​ desire to​ find the​ easy way out to​ build wealth .​

the​ placement of​ their money in​ someone else’s hands to​ manage, the​ purchase of​ newsletters to​ provide their stock picks for​ them, and​ ​ the​ greed driven behavior of​ gambling in​ speculative assets .​

Their common missing ingredient and​ ​ their reason for​ lack of​ success, is​ their refusal to​ seize personal responsibility for​ learning how to​ manage their own money.
So the​ million dollar question is​ literally this What is​ the​ fastest way to​ build wealth?
The Answer Take the​ time to​ learn a​ proper investing system, seize responsibility for​ your financial future, and​ ​ manage your own money .​


Unfortunately there are truly not any viable alternatives to​ this answer .​

We’re here to​ show you why .​

Below we provide 101 Reasons Why Managing Your Own Money is​ the​ Quickest Way to​ Build Wealth

1 No financial consultant or​ investment firm will ever care more about the​ performance of​ your portfolio than you .​

Reasons 2 and​ ​ 3 are quite lengthy because they help clarify reason 1.
2 This is​ perhaps the​ second most important reason .​

Most people realize that most financial consultants are nothing more than glorified salesmen and​ ​ saleswomen, even if​ ​ they do work for​ a​ prestigious investment firm .​

I’m not sure what the​ statistics regarding this are, but the​ next time you speak to​ the​ branch manager of​ your brokerage house, ask him to​ see the​ annual returns of​ the​ top five bestpaid financial consultants in​ his office for​ the​ last five years .​

Then ask him which financial consultants in​ the​ office have earned the​ best returns for​ their clients over the​ last five years and​ ​ ask to​ see these returns .​

Don’t let the​ branch manager answer your questions by giving you the​ annual returns of​ the​ best five internal or​ external money managers that the​ investment firm utilizes .​

This response does not answer your question .​

First of​ all, it​ is​ highly unlikely that the​ top producers hire the​ top five best performing money managers year after year as​ any major global investment firm utilizes hundreds of​ money managers .​


By this, I​ ​ mean that most financial consultants make zero decisions about what stocks are purchased with the​ money that you give them .​

They hire either internal or​ external money managers to​ do this for​ you .​

You want to​ find out what returns the​ top five bestpaid producers in​ your office earn annually for​ their clients based upon the​ mix of​ money managers they hire for​ their clients .​

if​ ​ a​ branch manager refuses to​ divulge this information, you have to​ wonder why? if​ ​ they tell you they do not know, why would it​ be of​ so little significance to​ the​ firm what kinds of​ returns the​ top producers earn for​ their clients that they don’t even track this information?
And if​ ​ they know, but won’t tell you, why would they not release this information? Shouldn’t the​ best paid financial consultants in​ any office be earning their clients the​ best returns year after year after year over any other financial consultant by a​ very wide margin .​

And if​ ​ not, why are they being compensated so highly? the​ answers to​ these questions, if​ ​ you receive honest answers, should reveal that great salesmen are compensated very handsomely by their firms while almost zero premium is​ put on the​ ability of​ a​ financial consultant to​ earn great returns for​ their clients.
3 Building on point 2, many investors will then say, OK .​

I’ll find myself the​ financial consultant, the​ one that falls in​ the​ top 0.5% of​ all consultants that really know what they are doing, and​ ​ I’ll hire him or​ her .​

Here is​ why they are wrong again .​

Because most people never take the​ time to​ properly learn how to​ invest themselves, they never can understand the​ investment strategies of​ those that truly know what they are doing .​

This lack of​ understanding, despite any efforts on behalf of​ the​ consultant to​ educate the​ client, inevitably leads to​ incessant questioning of​ this consultant’s actions, strategies, etc .​

which can grow very tiresome very quickly .​


I have dropped large accounts in​ the​ past because of​ such meddling, sophomoric behavior from clients that had a​ lot of​ money .​

Consultants that truly know what they are doing, despite their efforts, can not educate you fully in​ 34 hours time if​ ​ you have been conditioned for​ years to​ believe the​ nonsense that global investment firms have taught you .​

Furthermore, because great consultants realize that so many widely believed concepts about investing are nonsense, and​ ​ have achieved their great performance by realizing this, they will constantly be fighting an​ uphill battle against clients that believe this nonsense .​

Therefore the​ chances that they would keep these clients in​ the​ long run are slim to​ none.
Even if​ ​ one finds the​ rare consultant that truly knows what he or​ she is​ doing, and​ ​ truly has outperformed the​ markets significantly year in​ and​ ​ year out, because these types of​ consultants invest so differently than the​ status quo, any lack of​ exposure to​ such intelligent investment strategies will undoubtedly cause fear .​

it​ is​ human nature that ignorance leads to​ fear .​

In turn, fear causes incessant badgering and​ ​ questioning, a​ behavior that 100% of​ the​ time will cause a​ great financial consultant to​ terminate a​ relationship with a​ client .​


Because great consultants achieve their outperformance by making decisions that go against the​ grain of​ what 99% of​ other financial consultants do, a​ great level of​ understanding of​ how to​ invest properly is​ necessary for​ one to​ even to​ maintain a​ relationship with a​ great consultant .​

In the​ end, even if​ ​ one doesn’t wish to​ manage his or​ her own money and​ ​ even if​ ​ one is​ able to​ find that rare 1 in​ 1,000 financial consultant that really knows what he or​ she is​ doing, one still needs to​ learn a​ comprehensive investment system just to​ maintain a​ healthy relationship with their knowledgeable consultant .​

Ultimately, this is​ why you should learn to​ manage your own money!
4 Global investment firms always tout a​ message of​ trust in​ their commercials .​

But where is​ the​ historical performance that merits that trust? 6% to​ 10% a​ year?
5 6% to​ 10% will never help you build wealth .​

You must learn to​ at​ ​ least earn 15% to​ 25% or​ more every year .​

at​ ​ 8% a​ year, it​ will take you 9 years to​ grow $250,000 to​ $500,000 and​ ​ 18 years to​ grow $250,000 to​ $1,000,000 in​ a​ nontaxable account, not considering the​ erosion in​ purchasing power due to​ inflation .​

at​ ​ 25% a​ year, it​ will take you less than 7 years to​ grow $250,000 into a​ $1,000,000 in​ a​ nontaxable account .​

That’s the​ difference between building wealth and​ ​ preserving wealth .​

6% to​ 10% a​ year helps you preserve wealth, not build it.
6 Major global firms will NEVER find the​ best stocks in​ the​ global market and​ ​ hold them in​ your portfolio .​


7 Reason 4 is​ true because major firms coverage of​ small and​ ​ micro cap stocks are appallingly light .​

Firms must provide extensive coverage of​ large cap stocks , the​ Genentechs, the​ IBMs, the​ McDonalds, the​ General Electrics of​ the​ world to​ appease their clients .​

However, the​ Microsofts of​ the​ future are small and​ ​ micro cap stocks now .​

You can’t build wealth buying and​ ​ holding the​ IBMS of​ the​ global stock world.
8 Information technology and​ ​ the​ flattening of​ the​ information world now makes it​ easier for​ you to​ be much more knowledgeable than any financial consultant employed by any of​ the​ major investment firms.
9 Financial consultants, because of​ the​ payout grid that dictates their salaries, are often motivated by selling you the​ highest commission based products, not necessarily what is​ in​ your best interest.
10 Investors that have actually built wealth through investing like Warren Buffet, George Soros, even Mark Cuban, have all managed their own money .​

Investors that have already amassed great wealth employ money managers .​

That should tell you something about what’s necessary to​ build wealth .​


11 Even large global investment houses only have the​ resources to​ track about 1,500 stocks .​

There are estimated to​ be over 75,000 stocks that trade globally .​

Investors want coverage of​ the​ most popular stocks in​ their country which means that the​ great majority of​ stocks that firms’ analysts cover are large cap domestic stocks .​

When I​ ​ worked for​ a​ large Wall Street investment house, many times stocks I​ ​ wanted to​ buy that were traded in​ China, stocks that returned triple digit returns in​ less than a​ year, had zero coverage at​ ​ this firm .​

You want to​ own the​ best stocks in​ the​ world, you have to​ manage your own money .​

Give your money to​ someone else to​ manage, and​ ​ chances are very very high that you will never own the​ best stocks and​ ​ opportunities in​ the​ world.
12 There is​ a​ reason why you consistently hear statistics like 3% of​ individuals own 95% of​ the​ wealth, no matter what country you visit .​

The reason is​ that these 3% of​ people took the​ time to​ learn how to​ manage their money themselves and​ ​ thus have truly built wealth .​

if​ ​ you don’t believe that your returns should be limited to​ the​ knowledge of​ your financial consultant, then manage your own money .​

For example, how many times have you asked your financial consultant, I’d like to​ invest in​ gold, or​ I’d like to​ invest in​ dollar declining funds, or​ I’d like to​ invest in​ Chinese markets, only to​ have your financial consultant stare at​ ​ you blankly and​ ​ say, the​ safest way to​ invest is​ what I’m doing for​ you now .​


I once heard this anecdotal story .​

a​ wealthy individual asked his financial consultant, one of​ the​ top producers at​ ​ his firm, why he didn’t own any stocks in​ the​ Chinese stock market .​

The consultant said just give me some time and​ ​ I’ll get you a​ list of​ stocks that we can buy .​

When he produced the​ list, the​ list contained the​ Americanbased Chinese restaurant chain P.F .​

Changs stock .​

if​ ​ this is​ the​ kind of​ advice a​ top producer gives, you may think how can he be a​ top producer? Just read this entire list, and​ ​ you’ll realize how easy it​ is​ for​ these types of​ situations to​ exist at​ ​ top investment firms.
Although this list contains 101 reasons, for​ the​ sake of​ space, we cannot list all 101 reasons here .​

To read the​ rest of​ this 101 Reasons list, please follow the​ link below.




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