The Wealth Code

Acknowledgments iii

Preface v

Introduction 5

Chapter 1 – Freeing Your Estate from Conventional Thinking 9

    What is Conventional Thinking?

    A Better Way than Paying Off your Home:

Chapter 2 – The Best Portfolios Are Mixtures of Many Different Asset Classes 11

    Diversification and the Olympic Basketball Team:

    Most Financial Advisors' Views of the Investment Universe:

    Wall Street and One Legged Tables:

Chapter 3 – The Key to Protecting and Building Wealth in Good Times and Bad 15

    Asset Class Diversification:

    Financial Advisor as a General Practitioner:

    Summary of Chapters:

Chapter 4 – The Process of Wealth 21

    Education is a Foundation to Building Wealth:

    Wealth Bucket 101:

    Assets Versus Liabilities:

   The Hard Way to Buy a Lexus:

    Fortune 400 Secret:

    Brokerisms:

    "L" Rules for Buying Tangible Assets:

Chapter 5 – Leaks in the bucket 31

    What is Your Wealth Bucket?:

    Limited Investment Diversification:

    Inflation:

    Investment Fees:

    Income, Income, Income:

    Taxes and a CPA's Limitations:

    Poor Estate Planning:

    Liquidity:

    "What If" Emergencies:

Chapter 6 – True Asset Class Diversification 51

    Brief Description of the Different Asset Classes:

    A New Viewpoint on Money a 3rd Grader Could Understand:

    Emotional Versus Unemotional Investments:

    Three Investment Descriptions:

    High Return -Liquidity:

    High Return –Capital Preservation:

    DALBAR 2009 Study:

    Capital Preservation - Liquidity:

    1/3 and 2/3 Rule of Thumb:

    Liquidity Leak Reexamined:

    Non-Traded REITS Versus Stock Traded REITS:

Chapter 7 – The Different Legs of the Table 67

    Time and Real Assets:

    Direct Participation Programs:

    Accreditation of Investors:

    Due Diligence and Avoiding a Ponzi Scheme:

    Commissions and Fees:

    Different Investment Asset Classes:

       Static Stocks, Bonds, and Mutual Funds:

       Variable Annuities and Variable Life Insurance:

       Adaptive Managed Stocks and Bonds:

       Consumer Grade Real Estate:

       Rare American Coins and Bullion:

       Oil/Gas Investments:

       Equipment Leases:

       Energy Bonds:

       Institutional Grade Real Estate:

          REITS:

          Co-Ownership Real Estate:

          1031 Real Estate Exchange:

       Collateralized Notes:

       Certificates of Deposit:

       Cash:

Chapter 8 – Building a Strong Financial Table 111

    Step One: Know Yourself:

    Step Two: Liquidity Time Lines:

       Best Ways to Keep Emergency Money:

       Need for Adaptability:

       Retirement Accounts and Liquidity:

    Step Three: Income Needs:

       Black Swan Event:

       Global Credit Crunch and Who Knew Beforehand:

       Deeper Look Into What's Happening Now:

       The Mortgage Reset Hurricane:

       Income Needs as Defined by Cash Flow:

    Step Four: Growth Needs:

       Different Paths Traveled:

       Achieving Total Return:

    Step Five: Beneficiary Needs:

       Ferrari Distribution:

       Stretch IRA:

       Putting Together a Financial Plan:

          Mrs. Jones:

       Mortgages and Whether to Pay Off or Not:

       Hyperinflation and Squishy Mail:

       401K Versus 401Condo:

Chapter 9 –

Life Insurance and Annuities: How They Relate to Your Wealth Code 139

       How Life Insurance Can Play a Role:

       Family Liabilities:

       Estate (Death) Tax Planning and the Reason for Using Life Insurance:

    Annuities:

       Index Universal Life Insurance and Index Annuities:

       The Biggest Problem We See With These Investments:

       MVA Versus Non-MVA and Why You Need to Know This:

Conclusion – Time to Take Action! 149

Appendix A – Case Studies 153

Appendix B – 1031 Real Estate Exchanges 167

Table of Contents