The Prosperity Blog

The Ultimate Guide to Financial Planning Myths

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What does financial planning entail…and what does it get wrong? See, the financial planning industry has long been perpetuating misleading ideas about retirement, savings, and investments. And a “plan” can only get you so far—assuming everything goes according to plan. Yet life so rarely does. That’s why I advocate for a financial strategy, with enough flexibility to navigate whatever life throws at you.

The foundation of this financial strategy is savings, because having access to liquid cash is the difference between scarcity and true Prosperity. The question isn’t necessarily in how much you save, so much as where you save and how you do it. If you’re using financial planning for retirement, for example, accessibility and tax benefits must be considered.

So much of the typical financial planning industry is about projections and assumptions we can’t possibly predict. Thus, it gives people a false sense of confidence without the necessary dose of realism—that unexpected things can and do happen all the time. In this article, I want to break down the industry myths and give you the confidence that you’ll be prepared for the unexpected. I want you to not just survive but thrive using Prosperity Economics.

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Your “Cash from Scratch” Guide to Creating Income

How to Start a New Side-Hustle, Job or Career Working from Home!

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2020 is over and the world is beginning to open up again, yet many people are realizing that there’s more to life than a job they dislike. After a record-high unemployment rate last year, more people are seeking jobs that feel fulfilling. After all, times of crisis are also times of great opportunity!

If you haven’t found what it is you want to be doing, this may be the ideal time to try something new, learn a new skill, or begin a side-hustle that can bring you income for years to come.

In The Side Hustle Bible, James Altucher says “we live in an opportunity economy” and an “idea economy.” Just because certain jobs have vanished, or your perspective may have shifted, does not mean there is a shortage of ways to earn money. In this extensive article, we outline dozens of ideas and resources so that YOU can make a positive change.

Years from now, you might even look back at this time as the turning point that got you out of a rut and started on a new, profitable path!

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7 Investment Strategies for Volatility in the Market

“Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold. When downpours of that sort occur, it’s imperative that we rush outdoors carrying washtubs, not teaspoons. And that we will do.”

Warren Buffett

These are uncertain times for investors. There’s volatility in the stock market, uncertainty in the housing market, and massive unpredictability in the political arena. Let’s take a look at what’s happening and—most importantly—effective strategies for volatility that will keep you building wealth in any market!

The stock market: 2020 was a volatile year for the stock market. Lockdowns saw the market plummet, then making some recoveries later in the year. Now in 2021, we’ve seen crazy things happen with GameStop, AMC, and other businesses exploding artificially overnight.

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Three Monkeys and a Cat: the Truth about Picking Stocks

Monkeys with stray kitten“A blindfolded monkey throwing darts at a newspaper’s financial pages could select a portfolio that would do just as well as one carefully selected by experts.”
-Burton Malkiel, Asset manager and author of A Random Walk Down Wall Street.

Who knew that Economist Burton Malkiel’s comment would be so prophetic!? Malkiel hypothesized that share prices move completely at random, making stock markets entirely unpredictable. While his statement about blindfolded monkeys and dartboards was a reference to the randomized nature of stocks and not a prescription for stock market success, it was only a matter of time before it was put to the test.

In 1988, the Wall Street Journal ran the first of many Dartboard stock picking contests. WSJ staffers acting as the monkeys, throwing darts at a stock table, while investment experts picked their own stocks. After six months, they compared the results of the two methods, along with stock picks from some of its readers.

The results? In the initial contest, the experts edged out the darts. However, as further “experiments” continued, the experts fared less well against darts thrown by people and, eventually, monkeys.

Money Managers or “Monkey” Managers?

In January 1999, a chimpanzee actress named Raven (the star of Babe, Pig in the City) threw 10 darts at a dartboard of 133 internet related companies. Within six trading days one of her picks was up a whopping 95%! By the year’s end, according to George Fisher, author of The Streetsmart Guide to Overlooked Stocks, Raven’s portfolio of ten randomly-selected stocks had outperformed more than 6,000 internet and technology money managers earning an astonishing 213% return.

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Understanding the Impact of Credit in the Economy

Most of us have a basic understanding of how credit and debt works based on our personal experiences. We borrow someone else’s money (the bank’s, the mortgage company’s, a friend’s), then we buy something and repay the lender with interest. That’s the basic formula: whether credit is for a house purchase, a car, or dinner at a restaurant. Whether credit is for a house purchase, a car or dinner at a restaurant, that’s the basic formula.

Likewise, the typical questions asked are as simple as, “Who will lend me the money, and can I afford the payments?” While important considerations, we also think there are equally important questions that people aren’t asking. And right now, the question on many people’s minds is, “What will happen to debt if the dollar inflates?

So let’s talk about debt–good debt, bad debt, inflation, and credit. How do these ideas fit together?

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Financial Pep Talk: 3 Ways to Step Boldly into 2021

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First, take a deep breath. If 2020 has left you feeling “adrift,” you’re not alone. The changing world is a shared experience, one that we can navigate together. We think it’s time for a pep talk—so that you can shift gears and get that forward momentum you’ve been looking for. 

Within every challenge, there is an opportunity—so it’s time to start seeking opportunities! If you’ve been looking for a sign to do things differently, this is it. Below, we offer three steps to move boldly into 2021.

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Love Is Prosperity

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“Love is a many splendored thing,” and many faces it does have.
Love is an infinite pool from which we can draw—romantic,
or brotherly, sisterly, paternal, even friendly.
There is no end to the love we express, and ways in which
we express it. Love is our legacy, to pass down
from parent to child or mentor to mentee. 
This legacy we leave is the best of us—our own infinite stores
of knowledge, of experience, of the lessons we’ve learned.

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