Category Archives: Financial Information

Wealth Expert; Fake, Phony or Real?

There are many people in the financial advice space who will tell you how to make more money, get more clients and become wealthy. Some are wildly successful from growing seminar businesses or gathering money from other people to invest. Some write books, have TV shows, do podcasts, write columns or send out enough direct mail they could wipe out a forest.

How do you know who to trust with your money?

How about DO NOT trust anyone else with your money except yourself?

If you are on my list and have read any of my emails, then you know that I am comfortable financially. I am not a billionaire like Warren Buffet or Sheldon Adelson or Mark Zuckerberg. And do you really think you would, or could, have personal access to any one of them?

Our home is paid off. We have enough passive income that we not outlive it, and there will be plenty of money to pass on to our heirs. You can ask any advisor you might think about working with to share their personal financial situation with you. I am willing to do that. You could find out they need fees or commissions from YOU to pay their bills.

What do you want?

Do you want to:

  • Stop worrying about credit card bills?
  • Know you will always have enough to cover your bills?
  • Cover emergency expenses without using credit cards?
  • Dramatically grow your business and your income?
  • Feel comfortable about how and where you make investments?
  • Have your work be a choice instead of a requirement?

To learn how to do the above you can watch some of the videos on my website; you can fill out the forms that you got for free with a summary of my award winning, best-selling book; and if you want personal support, I am here to serve you. You can book a time to speak here: http://meetme.so/RennieGabriel

As a reminder, because I am able to live on my passive income I donate 100% of the profits from my book, coaching and speaking to charity, mainly www.ShelterToSoldier.org

Sincerely,

Rennie

Check Scam

Have you ever posted an ad on Craigslist, or some other website, to sell something? Well you have probably been warned to only work with people locally, and beware of phone checks, cashier’s checks and money orders.

Recently I was selling a beautiful stainless steel fridge for a friend who moved out of state. It was only about 2 years old, had about 22 cubic feet of storage, French doors for the refrigerator, a lower freezer, ice maker and cost about $2400 new. It was advertised for $1200 on Craigslist.

Here is how the scam works:

  1. You get an email, text or even a phone call that someone wants to buy it and pay full price. Sometimes they might ask what your lowest price might be, but that’s just to appear legitimate.
  2. They ask you to take down your post because they will buy it from you.
  3. They will send you a cashier’s check, business check or money order right away.
  4. They are out of the area and will have someone pick it up from you and ship it to them.
  5. The check you receive is hundreds, or thousands, of dollars more than the price you agreed to.
  6. You will be told their assistant made a mistake, or some of that is to pay the shipper, but you can keep an extra $50 for your trouble. Just send back the difference in funds to the scammer. Example: Item sells for $1000. You receive a check for $3000. You send back $1950 of real money to the scammer and are left with a check of $3000 that will bounce.

Here is the silly situation: The cost to ship this fridge from California to Florida would be anywhere from $300 to $1000. It makes no sense to spend that much extra money when it could be purchased in Florida for the same amount, or less, and not have to pay for shipping.

The point is; do NOT sell to someone out of the area unless the individual can be verified. Do NOT send anything until funds clear your bank (this could take 10 days). It is best to just deal with people who are local to you and will pay cash. Cash will never bounce unless it is counterfeit.

You will see below a copy of the FedEx mailer that was used.

image

Some items of note:

  • It shows it was sent from someone local to me, but the person said he was in Texas, and the check was drawn on a Florida bank and I am in California.
  • Edge Artists and Associates is a phony company with a phony Facebook page
  • The phone number goes to an individual that has no company and has no knowledge of the scammer’s name; in this case Samson Wilson.
  • The check drawn on the bank is for an account that is closed, or checks have been stolen (The phone number in the memo section is for Regions Bank)
  • All of this information can be obtained from the FedEx envelope or Google.

My goal in sharing this information is to potentially assist you in avoiding an unpleasant situation in the future.

Sincerely,

Rennie

Saving Capitalism

While sitting in my doctor’s office last week I ran across a Time magazine article from May of this year entitled Saving Capitalism. Because I enjoy articles about finance that round out my understanding of money, I picked it up.

The point of the article is that banks used to loan money to businesses to expand their ability to sell products, perform research, manufacture goods or whatever. And that lending approach created jobs. Since about 1980 the shift has been to loan money against existing assets to create profits. And companies that made money through selling products they manufactured now make more money by loaning money, from Sears to General Motors and General Electric.

This shift leads to a loss of jobs, and it is a global issue not limited to the United States. It shows up from the growth of the financial industry and debt-fueled speculation to how shareholder value is determined based on short term planning for profits instead of long term viability of companies.

The question to ask is whether or not financial institutions are lending money in ways that provide a true and measurable benefit to the society at large? Or, are they lending money primarily to enrich themselves?

The following are a few  paragraphs from the article, and you can read the whole thing >>here<<.

Over the past few decades, finance has turned away from this traditional role. Academic research shows that only a fraction of all the money washing around the financial markets these days actually makes it to Main Street businesses. “The intermediation of household savings for productive investment in the business sector—the textbook description of the financial sector—constitutes only a minor share of the business of banking today,” according to academics Oscar Jorda, Alan Taylor and Moritz Schularick, who’ve studied the issue in detail. By their estimates and others, around 15% of capital coming from financial institutions today is used to fund business investments, whereas it would have been the majority of what banks did earlier in the 20th century.

To get a sense of the size of this shift, consider that the financial sector now represents around 7% of the U.S. economy, up from about 4% in 1980. Despite currently taking around 25% of all corporate profits, it creates a mere 4% of all jobs. Trouble is, research by numerous academics as well as institutions like the Bank for International Settlements and the International Monetary Fund shows that when finance gets that big, it starts to suck the economic air out of the room.

It’s even the reason companies in industries from autos to airlines are trying to move into the business of finance themselves. American companies across every sector today earn five times the revenue from financial activities—investing, hedging, tax optimizing and offering financial services, for example—that they did before 1980. Traditional hedging by energy and transport firms, for example, has been overtaken by profit-boosting speculation in oil futures, a shift that actually undermines their core business by creating more price volatility. Big tech companies have begun underwriting corporate bonds the way Goldman Sachs does. And top M.B.A. programs would likely encourage them to do just that; finance has become the center of all business education.

 

When I make more money…

It is funny how some comments can inspire us and others we easily forget. Recently I got an email from a staff training I presented to the U.S Bankruptcy Court. The lady who sent the email was commenting on how she would like to save more money, and then invest, and that as soon as she earned more money, she would do that.

Her comment inspired me to think more about how we sometimes operate as human beings.

There have been times someone would say to me, “I don’t have the money to take your program.” Or, “I don’t have the money to take the classes so I can earn more money.” I think you can see where I am going with this.

Earning more money, or getting a promotion at work, or getting more customers or clients for your business can be as easy as asking yourself some questions, like:

  • What do I need to do (to learn, to understand) to earn more money?
  • Where can I get the information, book, class, YouTube video, that will show me how to make more money?
  • Who can support me, guide me, teach me, train me on how to get more clients?
  • When will I make those marketing calls I’ve been putting off?

You get the point: It gets back to asking quality questions versus making statements.

The point is I was able to create the following analogy because that lady got my mind working. I asked the question, “What analogy can I create that will make the point that an action comes before a result, not the other way around?” And I came up with the following:

When someone says they will start to invest (or save) after they make some money is like saying they will eat more healthy after they lose some weight.

And as you look at the blocks you might have, think about the questions you can ask yourself.

Sincerely,

Rennie

Are you Illiterate too?

Recently I ran across a financial literacy test put out by the FINRA Investor Education Foundation based on a survey of 25,000 people.

There were only 6 questions, which I found to be very basic. And as you would suspect I got them all correct; but then I have studied money. You can take the test yourself at http://www.usfinancialcapability.org/quiz.php

The national test results were awful: While 81% of Americans believe they have “above average” financial literacy, the test results showed that only 37% were able to pass this basic financial literacy test. (The sixth question was a bonus.) The national average was 3.16 out of 6 and in California, where I live, the result was even lower than the national average at 2.97 out of 6.

Here are more results:

  • Almost 33% of Americans don’t know how to calculate interest payments;
  • About 28% of Americans don’t understand the relationship between bond prices and falling interest rates; and
  • 66% couldn’t get at least four of six financial questions right!

There is a HUGE gap between those who think they understand money and finance and those that actually do. This is what makes the Wealth On Any Income course so valuable. As I continue to remind people; this is not taught in school; parents can’t teach what they don’t know; and even Certified Financial Planners® are not taught how to create a personal budget.

If you want to really become financially literate, learn how to create and achieve financial goals, move from a place of debt to wealth, then watch the replay of the Wealth On Any Income online program.

 You can get access here 

To your prosperity,

 

Rennie

You too can be unlucky, or frightened

Recently I heard a story that I had to verify. It was about Ronald Wayne, who was one of the early investors in Apple computer.

Ron was an electronics industry worker and knew both Steve Jobs and Steve Wozniak. Unfortunately, he did not have faith in the new start up and sold his shares back for $800 (eight hundred dollars). He is now around 82 years old, retired in Pahrump, NV and has a net worth of about $300,000; which is the median price of a little 2 bedroom, 1 bath cabin in the woods in Manitou Springs, CO. So if he owned a house worth that much it would represent his entire net worth, if it was fully paid off with no mortgage.

So how much did Ronald Wayne give up? The price of Apple stock fluctuates daily, just as any stock would. So rather than subtracting his current net worth from the price of the Apple stock he gave up, let say for round numbers his stock would be worth about $35,000,000,000 (that is $35 billion!).

What’s my point? We all have great ideas. We often see things that appear to be a good idea that others have. Ron Wayne lacked the faith in his own ideas and the ideas of Jobs & Wozniak.

And you might wonder how much money Steve Wozniak is worth; it’s only $100 million. Why do I say only $100 million?  Because I am comparing that to Steve Jobs. However, Wozniak was a far nicer person. As an example, prior the Initial Public Offering (IPO) of Apple stock, Jobs was not willing to grant any stock options to the few people who were the earliest Apple employees, and there were only about 40 or so in 1980.

These people helped create what would soon become a billion dollar company and they would make no money from the planned IPO. So Wozniak sold some of his own shares, inexpensively, to his friends because he thought Jobs was being an (expletive body part). So with fewer shares he made less money than Jobs after the IPO. And this IPO turned out to raise more capital than Ford Motors in 1956.

Also Jobs went on to invest in Pixar Animation, and then founded NEXT after he got fired from Apple. And when he returned to Apple he got an enormous pile of additional stock. At Jobs death his stock was worth about $8 billion, or about 2% of all Apple stock.
What’s my point? Believe in yourself, and after careful deliberations, have confidence in the smart people you know. I doubt Ron Wayne consulted anyone before he sold back his stock.

To your prosperity,

Rennie

Teaching Healthy Money Skills

Here is some information about how to teach healthy money skills to children. It comes from a Los Angeles Times article by Kurt Smith and was in the Sunday edition on October 23, 2016:

  1. Model good financial behavior. Don’t make fun of people who use coupons to save money, and don’t crave the latest technology gadget or newest car.
  2. Make them wait to buy things they want. Teach them about delayed gratification.
  3. Teach them to save for the long term. Allow them to set aside money for their own college, or save up for a bike.
  4. Teach them how to compare prices. Set a budget for back to school items and check the newspapers or Internet to compare prices on similar items. Quote: “Take them to the grocery store and show them how the same food item can have two different prices and let them help you decide which one to buy.”
  5. Let them learn from their mistakes. If they have the money to buy something that you feel would be a mistake to purchase, something they will later regret, let them make the decision and learn from it.

While I would recommend the above five suggestions, the only difficulty I see is that most parents lack those skills to teach their children.

How can parents teach the skills they lack? They didn’t get those skills from their parents and they can’t give them to their children. Where the heck are these skills supposed to come from?

These are just a couple of questions to ponder as the holiday season of spending money on too much stuff no one needs is approaching.

To your prosperity,

Rennie

 

Inattention can be fatal

The other day I was riding my motorbike, (which I know sounds like something small, and that’s the point; I want to soften the image someone puts in their head. It’s actually a huge Honda Goldwing with a bike rack on the back. I am not a ‘biker’ but I do ride a motorcycle. And I ride a bicycle.) But I digress… I’ve been riding since I was 12 years old (which was many decades ago), and I learned to be a very defensive rider.  I check my helmet; I look to see who is behind me; I watch for who might cut me off from the side; on and on. Recently, when I got off my bike after a harrowing ride on the 101 freeway I went to unbuckle my helmet strap only to find out it had not been buckled since I left the house.

I was riding with a helmet just sitting on my head. Any car that might have knocked me over and my helmet would have gone flying and my brain turned to mush. I would have been another healthy organ donor. My heart raced knowing the danger I placed myself in, and relieved that nothing happened.

Inattention can be fatal in certain situations. Another example would be forgetting to thoroughly check the packing of a parachute before sky diving, or a pilot making sure his private plane has enough fuel and has been properly maintained. That is why good pilots follow a checklist prior to each and every flight.

Inattention can produce bad results in business and finances as well. We are constantly bombarded with buy this product, buy this program, use this toothpaste or deodorant, to the point of complete overwhelm. We check and recheck our smart phone for emails or text messages. We feel the need to instantly respond to messages, notifications or alerts. We end up splitting our attention so much we only pay partial attention to most things.

I read somewhere that partial attention is inattention is disguise. That leads to making errors, missing important demands and inefficiency. There are areas where we need to be fully present, otherwise we are not honoring ourselves, those we love, or the clients we are here to serve. How we spend or invest our time and our money deserves our full attention.

One of the solutions you can learn is to say, “No” to the unimportant, to the things that are not aligned with your goals, to the things that take you off course. That way you will have the room to say, “Yes” to the things that will bring you joy and fulfillment. Multi-tasking is a lie; computers don’t do it, and we can’t do it either.

When you focus on your goals, based on your values, you become unstoppable. Mental focus is like a superpower, and can only grow by practice. The Wealth On Any Income program is designed to have you focus on what is important in your life and to create alignment with your values and the creation of wealth.

By the way, don’t forget to strap your helmet, or buckle your seat belt.

To your prosperity,

Rennie