Important Thoughts, Financial and Economic Advice
Posted by alex in Financial Column, George Lenz at 6:12 pm | Permanent Link
By George Lenz
Today I am going to deal with the second commonest question I got from clients: How to get rich fast. This advice is applicable to people who already paid off debts.
Basically, getting rich is not extremely difficult, nor is it only achievable using immoral means, as modern TV shows and magazines suggest. It is more akin to a routine day job directed toward a long-term goal. Nevertheless, surprisingly few individuals complete the journey. The number of rich men has increasing in the United States and Europe over the last fifty years, but mainly due to inflation. Still, in inflation-adjusted terms the percentage of rich stays remarkably stable around 8%. This is partly due to lack of knowledge and mainly due to lack of discipline on behalf of the majority of populace, yet a man that has both can still strike it rich relatively fast, at least in America.
First we need to define who is rich. I define rich as person having a guaranteed annual passive income of at least 100 000 USD. Such income is sufficient for relatively comfortable life anywhere a person wishes to live. In order to get it in our times of low long-term interest rate, a person should have at least 5 million USD in bank to have such guaranteed income.
Second, a person who wants to strike it rich has to actually want to get rich. Here an active and passionate desire is required, it is not enough to say that one wants to get rich. Getting rich should be one of the main life goals of such person, and he should not look for excuses that allegedly “prevent” him from getting rich. There are lots of business opportunities around for people looking for them in any time, place and culture. To acquire such state of mind there are lots of literature on the marketplace. I suggest The Power of Positive Thinking by Norman W. Peale.
Third, the way to riches is the way of savings. The Republic of Singapore, for which I have an immense respect and admiration, managed to get from 3rd world to 1st in 30 years, making a quarter of their citizens rich by my definition. Singapore did it a very simple way: the mandatory savings rate there has been 50% of income, and the people there have been saving further 40% of the disposable income, altogether 70% of the gross income. Interest rates there remained lower than in the U. S., and there were relatively fewer economic opportunities available – Singapore is a small island state devoid of any natural riches – yet more people there became rich faster than in any other place in the world for the last 50 years. That’s the power of savings. While a White man does not live like an asian, he still can save 20 to 25% of his disposable income, as the experience shows. How this savings should be allocated:
First, it is necessary to create a rainy fund. A rainy fund is created in liquid interest free assets, equal to 12 to 18 month of average monthly salary (on average 24 000 to 36 000 USD). This money should be readily available should troubles of various kind befall. After a rainy fund is created, it is necessary to divide the savings into three main groups: precious metals, gold and silver – 25% of savings, bonds or bond mutual funds – 25%, stocks or stock mutual funds – 50%.
How to invest in precious metals? First, you need a gold broker, I would suggest finding a reputable local one. I would suggest investing in physical gold and silver coins (krugerrands/U. S. silver dollar coins), putting 1/3 of the allocated savings into silver, and 2/3 into gold. Do not put your gold and silver into bank safes, keep it at home, should public emergences happen the federal government would prevent you from taking it from the bank
How to invest in bonds or bond mutual funds? For an individual investor, bond funds are better and often only choice. The portfolio of funds I often recommend is: government treasuries – 20%, municipal bonds – 10%, corporate bonds rated A and higher 30%, corporate bonds rated B and higher 20%, corporate bonds rated CCC 20%. The choice of individual bonds or bond funds is a pay based service: it is very scrupulous and time consuming work.
How to invest in stocks. An individual investor needs a broker, local or internet one. I would suggest opening an account with e-trade, their commissions are relatively low, and basic services are available. I would suggest investing in individual stocks, since the results can be better in comparison with mutual funds. I regularly publish pro bono stock recommendations for White Nationalist community, it is a good source of ideas. All stock recommendations except short selling recommendations are done with a beginning stock investor in mind; short selling recommendations are not advised to person who have less than 100 000 USD in liquid assets, since the risks involved are considerably higher.
For the specific choice of financial instruments alongside these lines one would sometimes need an investment advisor. You can always pm me on Stormfront with the details of your situation: some things can be done for free, some would be pay based. I am a financial advisor with the relevant extensive formal education, certification and experience.
How fast a person can strike it rich, following this advice? On average, it takes 20 years of disciplined savings for a young man earning 24 000 USD per year or young family earning 48 000 per year to achieve these financial goals. So, assuming you are below 30 and have some debt to repay, you can strike it rich by 55.
The market is slightly up to 11 380, on short lived optimism and continuous injections of liquidity by the “helicopter” jew at helm of the FRS, who is printing money even faster than his predecessor. Yet the rally lacks fundamentals to back it up, so it is likely to reverse at next week, and the Dow is likely to return to 11 200-11250. I closed two long positions on this rally, on GE and PBG. The reasons for GE position closing is as follows: I read recent interview of the GE Chairman Immelt at Harvard Business Review. He talked about this wonderful 8% real earnings continuous growth he is going to achieve, and he didn’t sound like a serious man: the big business earnings’ can’t grow continuously at a real rate above 6%, and its generally .closer to 4%. So it’s another visionary down there, instead of a practical man Mr. Welch used to be, and the GE stock is likely to slide beginning next year. PEP in comparison used to delivering its numbers, and I liked their strategy and portfolio of assets, but the company installed a colored female CEO out of the blue. Judging by the character and public speeches of the woman in question, it is likely to be another Carly Fiorina with all of its consequences for the company. So I get rid of both stocks, and advise you to do the same. It is sad two more legends of American business invite trouble by installing wrong leadership.