What to Look for in the Perfect Investment
The only reason we invest is to make money. And the only reason to make money is to get our time back, have positive experiences, educate ourselves, and make positive improvements to our environment and those around us. It’s that simple. The desired end result of an investment is the ability to do as we please with our time. Because time spent cannot be gotten back and future time cannot be guaranteed or predicted, the investments that are working to exchange our time back to us must be as flawless as possible. I am going to break down the characteristics of the perfect investment. If you’d like me to look at your investments and give my opinion we can schedule a call.
1. You must like the investment! Your brain will not allow you to succeed at things you do not like and agree with. You must like the things you invest in to the point that all of the work and learning involved is pleasurable.
2. You must understand that investment. This doesn’t mean you’ve “learned” about it. Colleges around the world are packed with students and teachers who have “learned” everything and yet still do not have understanding. Understand at its root means “to stand in the middle of”. You must have sized the investment up, crawled into it, felt around, and gotten yourself all the way into the middle of it. Understanding means full immersion. This is a key for successful investing.
3. You must commit. Bad investments cost you. Warren Buffet talks about how the number 1 rule for investing is not to lose money and the 2nd rule is to never forget rule number 1. When looking at an investment assume the identity of the most pessimistic person in the world and just imagine everything in the world going wrong. If you still want the investment despite those things happening, you are ready to commit.
4. All investments must cash flow. In my opinion, a thing is not an investment if it does not pay a regular income. Why? Because cash flow is the holy grail of wealth! It is the only thing an investor can truly rely on. Everything else is speculative. Do not invest in things that do not pay an income.
5. Investments need predictable appreciation. Now let me start this by saying that appreciation is simply an index of inflation and of supply and demand in the market. Because of that, it is speculative. This doesn’t mean we don’t want appreciation. It just goes back to point number 4. Cash flow first. However, imagine having an investment that is 99% for sure going to go up in value over the next 10–30 years and while that happens it is also going to pay you income! Cash flow followed by appreciation is a deadly investment combo!
6. Investments need to provide tax benefits. Taxation is theft. I’ve said it before, and I’ll say it always. An individual cannot just simply stop paying taxes, but investors can find assets that lessen how much money is stolen by the IRS. I will add that tax benefits are the very LAST reason to invest. An investment that doesn’t cash flow but has tax benefits is a joke. This does not mean to use a 401k or IRA. This means we invest in things that have deductions.
I want to be your Wealth Coach. You need an objective 3rd party helping you build wealth. The advantage of that is you will have a professional skeptic in your corner on all investments. What that really means is that I will always expect investments to meet 100% of our expectations or we don’t invest. No more being “sold” by the realtor, financial advisor, or stock broker on pie in the sky claims on a deal they are selling to you instead of buying it themselves (that should tell you about as much as you need to know). You need a coach. You need a plan, you need accountability, you need education, you need community, and you need wealth. I have a foolproof way to help you get there.
Own Your Potential,
Jerry Fetta
Jerry Fetta believes everyone has the God-given right to own their potential. Most of us don’t because we spend 40 hours per week serving the 40 year to life sentence, trading our precious time for worthless paper called money.
We live on an economic planet and time and money do need to be exchanged. But it doesn’t need to be your time or your money. Jerry teaches his clients to secure income producing assets that make the time and money exchange for you so you can buy your freedom back and live a life of abundance and prosperity. To get there we must know how to make money, how to keep it, and how to multiply it.
Jerry provides coaching, education, accountability, and community to help you build wealth. Join the Wealth DynamX coaching program, get educated on Wealth DynamX University, and begin networking with the Wealth DynamX Mastermind Group today.
To get started, go to www.WealthDynamX.com/potential
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