Excerpt for Smart Investors Create Wealth: Maintaining riches for a lifetime and beyond by , available in its entirety at Smashwords

Smart Investors Create Wealth

Maintaining riches for a lifetime and beyond

By: Giovanni Rigters



Copyright © 2017 by Giovanni Rigters

All rights reserved.

No part of this book may be reproduced in any form or by any electronic or mechanical means including information storage and retrieval systems, without permission in writing from the author. The only exception is by a reviewer, who may quote short excerpts in a review.



Table of Contents

Important Disclaimer

Introduction: Vision for Success

Chapter One: Wealth Creation

Chapter Two: Wealth Builder #1 - Business

Chapter Three: Wealth Builder #2 – Real Estate

Chapter Four: Wealth Builder #3 – Investing

Chapter Five: Old Money vs New Money

Chapter Six: Maintaining Wealth

Chapter Seven: Wait! Don't Fall for These Traps

Chapter Eight: Conclusion



Important Disclaimer

This book is presented solely for educational and entertainment purposes. The author is not offering it as legal, accounting, financial, investment, or other professional services advice. The content of this book is the sole expression and opinion of its author. It is not a recommendation to purchase or sell equity, stocks, or securities of any of the companies or investments herein discussed. The author cannot guarantee the accuracy of the information contained herein. The author shall not be held liable for any physical, psychological, emotional, financial, or commercial damages, including, but not limited to, special, incidental, consequential or other damages. You are responsible for your own choices, actions, and results. Please consult with a competent tax and/or investment professional for investment and tax advice.



Introduction: Vision for Success

The path to riches is waiting for you with open arms. Besides an overabundance of riches, wealth has additional benefits: financial freedom, peace of mind, no more long hours at work, exuberant lifestyle, and great health.

Why work your whole life stressing out over projects and unrealistic deadlines, horrible bosses, unqualified coworkers and all the irritants that present itself in corporate life, while you can take that same energy and work on creating wealth and ownership instead?

Not many people are able to generate wealth that can last them for a lifetime and beyond. Even many of our senior citizens who have worked their whole life and retired out of the job market have financial issues and distress.

Reason for this is that people focus on making money first and wealth secondary. The typical person focuses on working at a company and climbing up the corporate ladder or switching from one company to another every so often, getting a higher salary in the process.

While in the working years, people focus on all the essentials: a comfortable home in a great neighborhood, transportation to and from work, good school for their children, and their retirement account.

Nowadays, many people think that their home and retirement accounts are their wealth generators. But this is not how wealthy people think.

The secret to creating wealth is not through working for companies your whole life, but through assets acquired from the three wealth builders.



Chapter One: Wealth Creation

Stop working for money and start working towards acquiring assets! Now, don’t get me wrong, money plays an important role in building wealth, but if you only focus on making money, you will never see the bigger picture.

An asset is something of value that you own. As a smart investor we’re only going to focus on assets that appreciate in value. A car for example is an asset that depreciates in value (unless it’s a classic and you work on the upkeep), because it is worth less the more miles you put on it by driving it around.

Not only are we going to focus on appreciating assets, we’ll also use these specific assets for their increasing income streams. However, not all assets produce an income stream.

Wealthy people continuously acquire assets. This is how they keep getting wealthier and because there is no retirement date for wealth, like there is for a career, they keep acquiring assets until they pass away. Their wealth is then strategically passed down to their family.

Warren Buffet, the third wealthiest person on this planet, and his partner Charlie Munger are over 85 years old, still working on acquiring assets.

Wealthy vs rich

Do not confuse wealthy individuals for rich ones. Wealth is always acquired through assets. An NFL player making $20 million is rich, but does not own any assets.

Also, you can be a high-income earner, but if you are drowning in debt, you are not even close to being wealthy.

For example, a Vice President of Sales who works for a Fortune 500 company makes a salary of $1.4 million a year. He or she is rich, but has a debt amount that totals $3.6 million. This person needs to seriously take a look at his or her expenses and make some major adjustments.

When I mention wealth, I’m talking about owning valuable assets beyond your debt. Wealth that produces income for you even when you do not have to put in any labor.

Working for money

When you work for money, the amount you can make is limited by your skills. The more knowledge and skills you acquire, the more you’re worth to your company and you could potentially make more money.

That’s why someone working a fast food job or as a sales associate at your local clothing store does not make a healthy income. The skills required to do such jobs are basic and you don’t even need any type of education. Most of the time you do not even get any training, you just start working on the floor your first day on the job.

You are also easily replaceable by anybody and everybody.

People with specialized skills are not as easily replaceable and can demand and negotiate a higher salary. For example, computer programmers, lawyers, and doctors.

Working for money is also limited by your physical health. Once you get terribly ill, or you cannot physically work anymore, the money you were making stops coming in, because you cannot use your labor in exchange for money anymore.

The corporate ladder

The typical middle class family focuses on climbing the corporate ladder. Spending time building up the company they work for, focusing on realizing the owners dream for the company. Instead, they should be working on their own dream of financial freedom.

While climbing the corporate ladder, you’ll be given more responsibilities, work, stress, and less free time, every time you get promoted to a higher position. This is a catch 22, in order to make more money you will have to give up something. This could be time you could spend with your family or your sanity, because stress will peak it’s ugly head.

While putting all your time and effort in the company, you’ll also setup a retirement account with the company and put substantially less thought in it compared to your daily tasks at work.

When you just start your career, retirement is the last thing on your mind. However, it needs to be the first thing on your list of things to get serious about if you are young, because you have time on your side. Time for your investments to grow.

The sooner you start the less you would have to invest in order to reach your retirement goals.

If your retirement goal is to reach $1 million. Starting at the age of 24, you would only have to invest a little over $370 a month to reach your goal at age 65 (with an average 7% growth rate).

Figure 1.1 Retirement goal – Source Dinkytown.net


Download this book for your ebook reader.
(Pages 1-4 show above.)