NAC 2007 Dr Clemen Chiang - Growing your Money Tree
Growing your money tree requires 4 key disciplines:-
1. Take control – by learning some new skills today.
Wealth Management Pyramid
US100k – Affluent
US500k – High Net worth Individual
US5m - Very HNWI
US50m - Ultra HNWI
The higher up the pyramid you go, the higher rate of return you can achieve.
Based on your level of knowledge, most people will usually start from the lowest risk/returns to highest risk/returns as follows:-
a) Cash deposits - low risk, low returns
b) Fixed income – Bonds and Tbills,
c) Equities – Stocks, options trading,
d) Real Estate – Reits and
e) Foreign Exchange, Futures, Collectibles, Antiques – high risk, high returns
2. Research Relentlessly
a) Select the most powerful economy – USA
b) Find a company sitting in this economy
c) Use the most powerful analysis
d) Follow a proven method
e) Expect the highest return in the shortest time.
3. Economic Cycle
Will consumers continue to spend money? Look at past statistics to determine future economic trends and cycles.
Based on birth cycles and history, the economy moves in 40 year cycles – 26 boom years and 14 years of decline. From age 23, after entering the job market, new buyers will spend till age 49 and then stop spending on big ticket items the next 14 years.
We are currently in a boom cycle that will last till 2009. So will you capitalize today so that we can retire up till 2013?
4. Execute a proven method
Apply discipline in what you do and follow your plan strictly.
