THE 5 LAWS OF WEALTH CREATION


1. Set Meaningful Goals
Work with Simon to figure out where you are today financially, where do you need to be and how you can get there.

“If you aim at nothing, you will hit it with amazing accuracy.” "The key is not to prioritize what's on your schedule, but to schedule your priorities."

A good financial advisor helps you to make reasonable and achievable goals.
What are some Common goals?

Paying off mortgage, educating children, reducing taxes, accumulating enough investments to keep the standard of living you have grown accustomed.

2. Use Other People's Expertise
Use the wealth of knowledge and experience of professionals. Simon assists our clients with a holistic approach to financial planning by creating a board of directors to help meet their goals.

“What wise men do in the beginning; fools do in the end.”

A good financial advisor helps to build your Board of Directors.
Question, who is on your BOD to help you achieve your goals?


3. Use Other People's Money
Home ownership works with borrowed money and investing can too. *
What has been your best investment so far in your life? (home ownership)
Why? Owned the longest i.e.. Didn’t trade. Used OPM i.e. mortgage.
This can also work to cover your largest expense being retirement. I.e. Compare mortgage amount vs. retirement amount.

* Using borrowed money to finance the purchase of securities involves greater risk than a purchase using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines.


4. Pay Yourself First
Very few of us will get rich quickly. Start by saving 10% of your gross income every month. Remember: It's not how much you earn that matters, but how much you keep.

“Outliving your income is not an option.” “If you live only for today, what will you have tomorrow?”

A good financial advisor helps to build a budget and plan to invest regularly including dollar cost averaging.

5. Invest and Manage For The Long Term
True investors are those who concentrate on buying businesses rather than stocks. Their three common goals are to: i) preserve wealth ii) grow wealth at an above-average rate of return iii) minimize the impact of taxes.

"You cannot avoid risk, but you can manage it." "Someone's sitting in the shade today because someone planted a tree a long time ago." "A bull market begins on pessimism, grows on scepticism, matures on optimism and dies on Euphoria."

A good financial advisor helps you to keep your eyes on the field not only the score board.

If you would like to learn more about how to create wealth and secure your future, please contact us.

“You cannot avoid risk, but you can manage it.”