The Ten Roads to Riches: The Ways the Wealthy Got There (And How You Can Too!)

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1The

Ten

Roads

to

Riches

and

questionnaires-from

which

they

can justify expensive services.

There

are only

three

prime investing goals :

1.

Growth . You

need

your

mone

y to

grow

as

much

as possible

to cover living expenses later,

or

stretch

now

to cover

current

cash flow needs.

Or

maybe you just

want

to leave a

bundle to kids, grandkids, or albino snow leopards

or

what

-

ever

you're

into

.

2. Income. You

need

cash flow

now

or

soon

to cover living

expenses, and

you

don't

really care

about

growth

so long as

you

get

your

cash flow.

3. Growth and income.

Some

combination

of

the

first two .

One

of

these goals fits 99.993

percent

of

you. I

didn't

include

capitalpreservation.

It

sounds nice!

But

it means

you

take no risk and

get

no

growth

-not

helpful on this road. A

true

capital preserva-

tion

strategy means losing

mone

y at inflation's pace. Capital preser-

vation and growth

is a finance

industry

fairytale.

Not

possible.

Ever

!

For

growth, you take risk, and capital preservation is total

absence

of

risk.

Someone

selling you this strategy is

conning

you,

whether

he

knows it

or

not

.

If

you're

on this road,

the

more

equities

you

can

stomach,

the

better.

THE

RIGHT

STRATEGY

So, you know you

need

stocks, preferably global, like

the

MSCI

World.

Now

what? Invest like

your

benchmark

,

most

of

the

time.

Sounds simple, right?

But

I can't tell you

how

often

I hear, "Yes,

I

need

an equity benchmark,

but

stocks scare me right now. I'll be

safer

for

a while

with

bonds and cash ."

Peo

ple see

being

safe as hav-

ing

big allocations to cash

or

bonds. Bonds reduce ...