Accruing True Wealth: Put Your Money To Work For You
Ever heard someone say, “Oh yeah! He’s rich! He’s livin’ the life of Riley!” Dictionary.com defines “life of Riley” as “a common expression for a carefree, comfortable and thoroughly enjoyable way of living” as in this sentence: “Since winning the lottery, he’s led the life of Riley.”
For most people who struggle financially, real wealth means being able to sleep in, live where they want, travel when they want, kick back or celebrate whenever they want, and not sweat about financial decisions. Being rich, indeed, means living the life of Riley -- carefree, comfortable and thoroughly enjoyable. But if being rich was that simple, people who come into lots of money in a short period of time would remain wealthy throughout their lives. And most don’t.
Take professional athletes, for example. Sports Illustrated says more than three out of every four NFL athletes face bankruptcy or serious financial stress within just TWO YEARS of departing the gridiron. The same grim reality is true for 60% of NBA players as well. The internet, as well, is full of fascinating tales of lottery winners who “blew through” prizes of $1 million, $5 million, $10 million and ended up a few years later back at work, living from paycheck to paycheck, and very often buried under debt. So what separates the winners from the losers? What secret is it that some people know, a secret that carries them from rich to mega-rich, while others choke and die financially almost right out of the starting gate?
Here it is. Consistently wealthy people know that passive money isn’t passive. What’s passive money? Money they didn’t sweat to earn. Money that makes new money. Portfolio income (dividends and interest) is a good example, as is rental property, a limited partnership, affiliate marketing, or an enterprise in which you invest but need not play an active role. Passive wealth can lift you from wealthy to mega-wealthy if you grasp just two words: “asset management.”
Wealthy people who want to see passive wealth multiply and expand manage their assets very carefully. These people are not simply “passive.” How do they do it? They look for professional help, people with proven track records and specialized education, to monitor their assets, to minimize the cost of inflation and taxes, to point out and avoid unnecessary expenses, and to invest new income wisely. And they work with those professionals in an open, trusting alliance. That’s what we do for upwardly mobile families, many of whom are wealthy and many more who are serious about becoming wealthy. We manage assets to build real wealth. If that sounds like the path for you, call us.
Sources: (1) Schmalbruch, Sarah. “There’s One Thing People Do Wrong When Pursuing Passive Money” Business Insider: Your Money. businessinsider.com. Dec. 11, 2014. (2) Pagliarini, Robert. “Why Athletes go Broke: The Myth of the Dumb Jock” CBS MoneyWatch. cbsnews.com. July 1, 2013.
Investment advice is offered by Horter Investment Management, LLC, a Registered Investment Adviser. Insurance and annuity products are sold separately through TWP Financial. Securities transactions for Horter Investment Management clients are placed through Pershing Advisor Solutions, Trust Company of America, Jefferson National Monument Advisor, Fidelity, Security Benefit Life, ED&F Man Capital Markets and Wells Fargo Bank, N.A.