| When financial freedom became our goal, my wife | | | | Investing is a process...a plan. It's never a product. |
| and I knew we had to do something: | | | | Otherwise, everyone would be investing in the same |
| Learn to invest. | | | | product. |
| It's something our parents never really talked about | | | | So, how do you start this process? We suggest |
| growing up. They taught us that we should go to | | | | some of these initial steps: |
| school so we can get a safe and secure job with | | | | 1. Learn how money works. There are eroding |
| good benefits. A college education would ensure that | | | | factors of money. It's not only about how much |
| we would have more than enough money. | | | | money you make but how much money you keep. |
| Sound familiar? Is that the case today? | | | | 2. Prioritize where you put your money. Become safe |
| Not for many individuals. | | | | and secure. After these two are accomplished, it is |
| Working hard at our jobs alone doesn't mean the | | | | your decision to become wealthy. |
| cashflow would come in our direction. We had to | | | | 3. Understand what assets and liabilities are. Assets |
| learn to invest. So... | | | | put money into your pocket. Liabilities take money |
| What is investing? | | | | out. |
| Let's start off with what investing isn't. | | | | 4. Discover some of the limitations of qualified |
| 1. Your kids. There are a lot of parents who believe | | | | retirement plans. People get into a 401k, IRA, 529 |
| their children should fund their needs in their golden | | | | plan, and other programs without educating |
| years. This used to work in the past but times have | | | | themselves on their disadvantages. |
| changed. | | | | These can build a strong foundation when learning to |
| 2. Depending on the government. Social Security was | | | | invest. Without a solid foundation through education, |
| a bad idea. Don't plan your future on this failing | | | | your plans and strategies can crumble. |
| government program. | | | | But it all starts with you again. Remember, you are |
| 3. Putting your money into a retirement plan and | | | | your greatest asset and liability. Therefore, make |
| letting it sit, regardless of market fluctuations. This | | | | your financial education an ongoing effort. |
| usually pertains to the 401k. Advocates of these | | | | This will take a lot of time, reading, and self |
| plans promote the ease of putting your money into a | | | | reflection. We will be teaching a lot of unconventional |
| plan and turning away. | | | | strategies. But the best thing is that it will all make |
| The above examples deal with the problem of placing | | | | sense. |
| the burden of responsibility on someone else. But no | | | | Become an investor. Learn to invest. Start off by |
| one should be more concerned about your money | | | | saying... |
| than you. Thus, your investor education is very | | | | I am an investor. |
| important. | | | | |