Using Roth rather than traditional IRAs and 401(k)s. Not reinvesting dividends in taxable investment accounts (where dividends earned become subjected to further fees and taxes), but instead invest the dividends elsewhere. Utilizing high cash value whole life insurance, when appropriate, to build liquidity, growth and protection of long-term savings. Investing in assets with predictable, even guaranteed returns. (Surprisingly, predictable returns do not equal low returns, especially for investments available only to accredited investors.) 6. Move Prosperity Principle # 6 is to MOVE our dollars. Just like water gains power from movement, as opposed to remaining stagnant, so our MONEY gains power and momentum through movement! Movement is what creates cash flow in our businesses, our national economies, and our personal economies. We see our economy strengthen when money “moves,” when people feel confident to spend as well as earn. When money accumulates in one place - such as a retirement account or a savings account - it becomes stagnant. If money is accumulated, but never moved or put to use, it is not being used efficiently or effectively. Think of having money move THROUGH your assets, not TO your assets. We teach our clients about the velocity of money, because wealth is not created when money sits stagnant and still under lock and key, but when it moves to us, through us, through our investments, through our communities, back to us, and so on. Some examples of moving money through an asset rather than to an asset: Instead of buying a boat with cash, an investor could use their cash to invest in rental property generating cash flow. Money moves through the investment and generates monthly cash flow that could be used to finance a boat.
Using Roth rather than traditional IRAs and 401(k)s. Not reinvesting dividends in taxable investment accounts (where dividends earned become subjected to further fees and taxes), but instead invest the dividends elsewhere. Utilizing high cash value whole life insurance, when appropriate, to build liquidity, growth and protection of long-term savings. Investing in assets with predictable, even guaranteed returns. (Surprisingly, predictable returns do not equal low returns, especially for investments available only to accredited investors.) 6. Move Prosperity Principle # 6 is to MOVE our dollars. Just like water gains power from movement, as opposed to remaining stagnant, so our MONEY gains power and momentum through movement! Movement is what creates cash flow in our businesses, our national economies, and our personal economies. We see our economy strengthen when money “moves,” when people feel confident to spend as well as earn. When money accumulates in one place - such as a retirement account or a savings account - it becomes stagnant. If money is accumulated, but never moved or put to use, it is not being used efficiently or effectively. Think of having money move THROUGH your assets, not TO your assets. We teach our clients about the velocity of money, because wealth is not created when money sits stagnant and still under lock and key, but when it moves to us, through us, through our investments, through our communities, back to us, and so on. Some examples of moving money through an asset rather than to an asset: Instead of buying a boat with cash, an investor could use their cash to invest in rental property generating cash flow. Money moves through the investment and generates monthly cash flow that could be used to finance a boat.