The Prosperity Blog

Book Release: Busting the Interest Rate Lies… In Chinese!

We are thrilled to be able to say that that one of our financial books is now available in multiple languages! Thanks to our friend Ken Ma and the team he gathered to work on this project, Busting the Interest Rate Lies: Discover the Whole Truth About Money and How You Can Keep Control of Yours has been translated into Chinese. The new version contains both English and Chinese text, and is intended for Chinese Americans, as the financial products and strategies discussed are mostly specific to a U.S. audience.

Busting the Interest Rate Lies was originally published in April of 2016, nearly two years ago. Mostly written in the format of a story, the book follows “Gary,” a fictional young man and “Emily,” who becomes his financial advisor, from a high school classroom until Gary becomes a successful business owner and accredited investor. Along the way, he purchases his first car, first home, investment properties, and eventually, alternative investments.

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7 Ways to Make More Money Now

“Money isn’t the most important thing in life, but it’s reasonably close to oxygen on the ‘gotta have it’ scale.”
—Zig Ziglar

Want to earn more money? Most people would say unabashedly, “Yes, please!” Yet how many people “wish” and “hope” for a higher income or more cash without taking concrete steps towards that goal?

As Zigler’s quote above reminds us, money isn’t the most important thing in life. Yet it touches nearly every area of life that we care about. More money can help you:

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Winning the Long Game of Wealth

“Through perseverance, many people win success out of what seemed destined to be certain failure.”
–Benjamin Disraeli.

The Myth of Overnight Success

When it comes to “making it,” the media loves to report on overnight successes, lottery winners, and tech companies that seem to come from nowhere to capture the imagination of the market. It is exciting to contemplate being handed a fortune and fantasize about spending it.

Exciting, but also quite misleading.

Those who seem to have suddenly appeared out of nowhere to achieve “overnight success” include:

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Did Your Broker Mislead You? Why Real Returns Don’t Equal Average Rates of Return

Let’s examine one of the “unintended consequences” of volatility: poor returns that don’t match expectations.

There’s a dirty little secret in the financial world, and it’s this: “The Average rate of return doesn’t equal Actual rate of return.” We say this often to clients, readers, and advisors so they can understand why investments rarely grow as much as you expect!

I explain the “average vs. actual” rate of return concept in one of my Money Myth videos: “Money Myth #6: Average Rate of Return Reflects Actual Rate of Return.”  And we even prove it on calculators at Truth Training, the training my husband, Todd Langford, conducts with advisors and other financial professionals.

It’s why money earning “an average rate of return of 10%” might actually grow by only 7 percent per year! In this article, we’ll look at a new way of expressing this truth, drawing from some savvy analysis and commentary from Hans Wagner. We’ll also add our own observations about why it matters and what you can do about it!

Following a disciplined process using sound investment principles over many years, Wagner was able to quit his job at 55, “retiring” to the work of writing and teaching about investing. In his article in, “CAGR vs. Average Annual Return: Why Your Advisor is Quoting You the Wrong Number,” Wagner demonstrates:

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Cary Siegel’s “Why Didn’t They Teach Me This in School?”—An Open Letter Response

Cary Siegel went to an excellent high school and college, then graduated from a top business school with a finance concentration. Next, he learned what he ACTUALLY needed to know to manage his personal finances. Why Didn’t They Teach Me This in School? is the book he wrote to share his lessons learned, first with his five children, then with others.

Subtitled “99 Personal Money Management Principles to Live By,” Siegel’s book has become a best-selling graduation gift for good reason. It covers topics such as budgeting, spending, credit cards, investing, mortgages, insurance, and much more in plain English. It’s full of practical, real-world wisdom and tips that, unfortunately, you probably didn’t learn in school either!

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Weatherproof Wealth: How to Invest in Uncertain Times

“Maturity is the capacity to endure uncertainty.”
—John Finley

Leaks. Lawsuits. Continuing questions about Russia. Political unrest and FBI dramas. A media that has become both the attacker and the attacked. Conflicts of interest, ideologies, and personalities. Salacious stories to distract us from threats of WW3. Financial Planning without investment management. Citizens weary of increasing political polarization, terrorist attacks, school violence, endless conflicts in the Middle East, and bad news.

These are uncertain times. Regardless of which side of the political aisle you are on, you probably agree that we’re on a wild ride. And it seems to be far from over. Increasingly, we we see signs of the uncertain times in economic indicators, including the stock market.

Stocks are up, up, up! Then down with a thud. Wait… no, up again!? 

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The Leverage Test: Borrowing Against Assets

“When we leverage, we aggregate and organize existing resources to achieve success.”
– Richie Norton, The Power of Starting Something Stupid.

current assets tree concept illustration designDo your assets pass the leverage test?

When you invest or store your dollars somewhere, it’s important to consider if – or on what terms – you can borrow them back should an urgent need for cash arise.  While you may not plan on wanting or needing your dollars back, it’s common for people to find themselves in financial situations they didn’t anticipate.

The ability to use an asset as collateral is also a test of its strength. Dollars in the form of saving accounts, certificates of deposit, and other negotiable instruments can be easily collateralized in most cases. Unfortunately, savings accounts and CDs offer an extremely low rate of return as well as little flexibility or other benefits.

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