The Millionaire Next Door
Thomas J. Stanley Ph.D.
This book is a look at the difference in behaviors between UAWs (Under Accumulator Of Wealth) and PAWs (Prodigious Accumulator Of Wealth).Some of the points the author makes are:
- PAWs not as concerned with Status Objects. They tend to not purchase new model cars, and the cars that they purchase are less likely to be luxury vehicles. In addition to the direct financial impact of buying a new car, UAWs spend 60 hours researching, negotiating and purchasing a new car. PAWs use this time for creating wealth.
- PAWs Spend less than they earn.
- PAWs spend 86% more time on a monthly basis evaluating their investments. Around 8 1/2 hours a month.
- PAWs take financial risk if it worth the reward.
- There is an indirect relationship betwwen level of income and new worth. You can be a high income earner that is a UAW. For example more doctors are UAWs than PAWs.
- Adult children who receive money from parents have 98% of the annual income compared to those that don't, but they has 57% of the net worth.
Die Broke
Stephen Pollan, Mark Levine
Some points from the book:
Some points from the book:
- Work for yourself. In the past people would work their entire career for one employer. This is not true today, so you need to make sure you are always looking out for your best interest. Given all of the changes to the economy and labor market since this book was published in 1998 many more people probably understand this point than in the past.
- Pay cash. Do not use credit.
- Plan to work your entire life. Do not plan to retire. Retirement is a concept that has only been around since the Great Depression. This does not mean that you will be working your in your current job or even current industry your whole life. Since you will be working in some form your entire life you can actually afford to make less and should be able to work jobs that you actually like.
- Die broke. Why leave a large inheritance to those you love when you die when you can enjoy the money with them while you are alive. In order to implement this you will be purchasing immediate annuities with the cash the you have in your retirement accounts and also utilizing reverse mortgages.
This book also contains many pages of advice on specific topics including Umbrella Life Insurance, Mortgages and more.
The Ten Roads To Riches
Ken Fisher
This book offers what that author identifies as the ten roads to riches. It is an entertaining read mainly because the author is very blunt about his descriptions of some of the different roads (specifically the chapter on plaintiffs lawyers). He gives examples in each chapter including his own path to wealth (about $1.8 billion as referenced in the book). At the end of each chapter he offers a summary of the steps to take and a list of books to read.
The ten roads are:
This book offers what that author identifies as the ten roads to riches. It is an entertaining read mainly because the author is very blunt about his descriptions of some of the different roads (specifically the chapter on plaintiffs lawyers). He gives examples in each chapter including his own path to wealth (about $1.8 billion as referenced in the book). At the end of each chapter he offers a summary of the steps to take and a list of books to read.
The ten roads are:
- Start a successful business
- Become a CEO
- Become a side-kick to someone very successful
- Become a celebrity
- Marry into money
- Stealing it legally (plaintiff's lawyer)
- OPM (other people's money). Basically brokers, money managers and other financial jobs.
- Invent something. This road includes any form of creation including authors and song writers.
- Real estate
- The road more traveled (work hard, save hard).
As far as advice I assume most people will find themselves on the tenth road. He does get into some detail on how to know what you need to save for retirement and what your asset allocation should be.
No comments:
Post a Comment