10 Investing Habits of Rich People
Embody the habits of the rich to enrich your own wallet!
1. Tax-free: Contributing and trading within a tax-qualified brokerage
account means that you could be earning up to 30% additional in
returns (which you don't give to the IRS for capital gains taxes).
Compound that year in and year out and it could be worth millions.
2. Play it Safe: Always keep a percent equal to your age safe, i.e.
out of the stock market. Certificates of Deposits, savings accounts,
money markets, and bonds are less risky than stocks. (Bond funds
should be counted as stocks, not bonds.)
3. Stocks on Steroids: Take a small percentage of your stock portfolio
for trading. (Don't trade the whole nest egg.) Subscribe to a great
stock newsletter, which is tracked by an independent agency, to
achieve superior returns.
4. Great Partners: Interview your financial partner (broker) as if
your life depends upon it. Your lifestyle does!
5. Tithe: The first check you write each month should be to your
financial freedom fund. 10% for investing, so that your money can make
gains while you sleep! With this habit alone, you could be a
millionaire in 31 years, even if you only made $14/hour.
6. Don't be the Bank of Mom and Dad: You're not qualified to, nor
would you want to, establish the underwriting guidelines for loaning out money to relatives. If someone needs money, consider any gift you
give to be a gift or charity. If someone wants you to go into business
with him or her, consider whether or not you want to provide that
widget or service to the world. In most cases, you'll be better off
considering your help to be charity or an investment, and not a loan.
7. Avoid Fair-Weather Friends: Whether it is a new broker, a new
person you met by email or just new interest from someone who never
cared much about you, if the new relationship is all about the money,
make sure you are doing business with a monk! Do your due diligence
and don't be seduced by promises of guaranteed riches, guaranteed love
or a fabulous lifestyle.
8. Switch-Hit: Do as much of your day trading as possible in a tax-
qualified retirement plan, such as an IRA or even possibly a college
fund or health savings account. That could help you are reduce the
taxes you pay on capital gains.
9. Getty/Guggenheim Your Fab Self: Find out every tax-qualified
account that exists and stock up your holdings in as many protected
accounts as possible, including IRAs, 401 (k)s, health savings
accounts, college funds and foundations!
10. Live the Rich Life: Wealth is not just money. Wealth is enjoying a
happy, fulfilling rich life with people you care about, and investing in products and services that make the world a better place. Health is
wealth, so get happy & exercise! Breathing is health, so invest in
By Natalie Pace, author of Put Your Money Where Your Heart Is
©2008 Natalie Pace
Natalie Pace, is adding a splash of green to Wall Street and
transforming lives on Main Street. She is the founder and CEO of one
of the most respected independently owned financial news organizations
in the world. She has been ranked as a #1 stock picker from
TipsTraders.com and has partnered with Forbes.com. She has repeat
guest appearances on Fox News, Good Morning America, Time Magazine,
More Magazine, USA Today, NPR and Kiplinger's Personal Finance. She
currently lives in Southern California. For more information please