Wealth. How do you define ‘wealth’?  Is it synonymous with “blessings?” As we move thru Thanksgiving time and into the Christmas seasons, celebrating special days with the world’s major religions

SEE the Good!  Despite the craziness of the DC circus, employment is way up due in large part to the first round of tax rate reductions.

A quick glossary can be helpful.  Income is money we get from various sources, like our blood and sweat job, or side projects.  Some work lots of hours, and others multiple jobs.

Depreciating assets are things we buy for want or need, that lose their value over time.  Such as a car or boat.  Do we want or need a brand new car every year?  A new house to keep up with the Jones or Smiths?

Credit cards, when out of control as Dave Ramsey likes to remind us, are death cards, especially when the teaser rates expire and we are saddled with 18, 25% interest.  Be wary.

Wealth is the subject we rarely look at or better put, understand.  Essentially, a family’s wealth is what is accumulated over time, even a lifetime from your labor and various investments, entrepreneurial, investments, personal and real property.

Some of my previous blog posts discuss the need and importance of a trust for real property; this also include personal valuables as well.

Too many of us are the lottery types (it’s for the school kids, of course) or Publisher’s Clearinghouse $5000 a week crowd (someone’s gotta win it!)

But, the get rich quick schemes often are too good to be true; as the Boomers and Millennials age, more and more “opportunities” come out but have residual risk: especially when the corporate name of the “investment” rhymes with Ponzi.

As we move to the holidays, let me suggest something unique: count your blessings and think what your goals are, for the next year, 2020, next five and maybe next ten.  If you have 11 kids like I do, you will make different decisions than a single guy.  If you have $200K in student loans, like an amazing real estate KP client of mine, you will have to factor this in before acting on your next real or personal investment.

Suppose there IS a way to set up a Publisher’s Clearinghouse consistent income method.  Maybe not $5000 a week in day one, but working smart and taking advantage of this unique time in our history:

Interest rates are incredibly low; high 2s into the mid 3s. Doing the math, you “borrow” $100,000 at 2.75% rate, realize you MUST pay it back until you sell or refinance.  Good news, at that rate, you are paying $408.24 (or $4.08 per thousand borrowed).  Many owners and buyers see the opportunity and pull some equity from their home; you can get into an investment home (with a positive cash flow too) with monthly income.  When you google the amortization calculator below, you will notice your tenant is paying your mortgage and you see the deductions and equity increase over time.

  Even if they rise, they won’t hit 6% soon, or back to 18.5% like when Donna and I bought our first condo in west OC.  But, 

To help you see this, click on this: https://www.amortization-calc.com/ and see for yourself

Growing up is part of the process: realizing instant gratification, like a toddler is inconsistent with building wealth over the long haul.  A toddler wants everything now and won’t sacrifice for the candy cane.  Neither do most people; a budget is for the other guy or its the name on a car rental kiosk.  Give counting your blessings this time of year a shot.

Even a white piece of paper with a line down the middle; assets on one side and expenses you need to reduce the other.  Look up Dave Ramsey IF you are serious, but wealth is NOT magic: it is systematic and the millionaire next door probably didn’t hit the jackpot in Vegas or the 7-11

By the way, the beauty of wealth is the GOOD you can do with it beyond your family: directly helping others or giving to entities that directly help the truly needy.  Charity was meant to be up close and local, and done privately…not broadcast to make us look cool.

And when you realize your wealth is better rendered ‘blessings’, from the Giver of ALL Good Things.  Ask the Master.

Thank you to all our clients, those with us for three decades and those that just closed their home, both sellers and buyers, recently.  
We continue to say it simple: “what’s best for the client is best for us!”

Len Beckman. Briana Beckman. Lisa Campos. Steve Fritz. Helping clients make sound decisions and grow wealthy over time.  And you DON’T need to have 11 kids to get there either!

Clients: I subscribe to excellent economic newsletters and real estate stats for YOU.  Read through them if you want to stay on top of what is happening.  Because the person you see in the mirror is the person responsible for your decisions AND your progress to financial independence.