The Wealth Code

Chapter Three

The Key to Protecting and Building Wealth in Good Times and Bad

We strive to build an Olympic-quality team for our clients using the best-of-class investment ideas and offering a financial table with numerous legs. Just as the Olympic basketball team includes the best players from the NBA, we believe finding the best players in each asset class is imperative to long-term financial success. Though in any given year one of the legs on a truly diversified financial table might fail, as long as you have many other legs on the table to provide support, you will survive whatever financial storm comes your way.

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Up to this point, we have covered the concept of conventional thinking and how it is not always in your best interest but possibly somebody else's. Our view of most financial advisors is that most are very myopic in their ability to help people with their finances and with the concept of true asset class diversification as a means to protect and grow an estate, in the best and worst of times.

Chapter 4 introduces the concept of your wealth bucket and the process of building wealth. It covers why certain firms focus only on high net worth clients, as well as common brokerisms, a word I use to describe the excuses a financial advisor will use to never admit a mistake. Chapter 4 also discusses a simple secret of the wealthiest people in the world.

Chapter 5 describes the common leaks in your wealth bucket, leaks from which countless dollars drain out of your pockets and into others every year.

Chapter 6 dives much deeper into the concept of True Asset Class Diversification and gives a viewpoint on money that even a third grader can grasp, yet few financial advisors ever will. This chapter also begins laying out a road map for making changes that will greatly improve the strength and stability of your financial table.

Chapter 7 covers all of the investment asset classes and goes into the pros and cons of each one. There is no such thing as the perfect investment, something that returns double-digit growth every year, is guaranteed, and is completely liquid. All investments have their drawbacks. The idea is to find those investments whose pitfalls are not bad for your situation and to blend them together with many different financial tools, which will provide investment balance.

Chapter 8 will provide a framework for you, the reader, to understand and craft a successful financial plan for yourself. You are not expected to be able to implement a complete financial plan, considering most of the investments we'll introduce have to be purchased through a licensed financial advisor or broker, but nonetheless, you'll be able to put together the blueprint that will match your goals, and not the planner's pocket book. In this chapter, as well as Appendix A, there will be case studies of plans we've implemented for clients that have successfully withstood the ravages of the 2007–2009 recession.

Chapter 9 covers a brief overview of our thoughts on where life insurance and annuities have a place in one's portfolio.

I believe that, once finished with this short book, you will have the tools to build a strong financial table for yourself and your family, and be better able to ride out the worst of any economic calamity that comes your way.

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