Sophia M asked:


When looking at economic statistics for the world how do you tell between new wealth created in a country and wealth that is simply a result of exchange disparities?

Like, some amount of a countries gdp is going to be from actual wealth creation, but some amount will be from wealth that was created somewhere else but comparitivly undervalued that is treated as its full value in the country so it appears new value was created, but really it was just the result of it being undervalued before entering the country.

Dixon

GREAT_AMERICAN asked:


Wanna Raise Taxes on the Rich?
Reduce the marginal tax burden on success.

In an excellent column featuring just a few of the many silly predictions made by mainstream economic thinkers of days past, Forbes’s Rich Karlgaard noted the back-cover description of MIT economist Lester Thurow’s 1980 book, The Zero-Sum Society: “the American economy will not solve its most trenchant problems — inflation, slow economic growth, the environment — until the political economy can support, in theory and in practice, the idea that certain members of society will have to bear the brunt of taxation and other government-sponsored economic actions.”

Just as the U.S. was about to begin an almost uninterrupted economic expansion that continues to this day, by way of marginal tax cuts that stimulated the growth that licked inflation, Thurow proposed an economic plan that would have set growth back, reduced money demand, and made environmental projects less pressing (as they would have been difficult to introduce amidst sub-par growth). However, while his assumptions were proven wildly incorrect, economic history in a strange way has proven him right for the wrong reasons.

What Thurow misunderstood was a basic truth showing that the best way to raise taxes on the rich, or to get the rich to foot more of the federal government’s spending, is to reduce the marginal tax burden on their success. In short, you raise taxes by cutting the marginal rate of taxation, not by increasing it.

Ahead of the Mellon tax cuts of the 1920s, a New York Times editorial put it this way: Treasury Secretary Mellon “wants in reality to get more money out of [the rich] than they are now paying. But he proposes to do it by making their rate of taxation lower.”

The next few years greatly vindicated the assumptions made by the editorialists at the New York Times. While the percentage of federal taxes paid by earners in the $100,000-plus category was 28 percent in 1921, by 1928, when the top rate was 25 percent, the $100,000-and-over earners accounted for 61 percent of all federal tax receipts. Conversely, those who earned $10,000 and less saw their share of the federal tax burden decline from 22.5 percent to 4.5 percent. As the late Warren Brookes pointed out, the Mellon tax cuts that set the stage for the Roaring ’20s were “the most ‘progressive’ in history.”

Moving to the 1960s, President Lyndon Johnson pushed through tax cuts proposed by President Kennedy that lowered the top tax burden from 90 to 70 percent. Walter Heller (chairman of the Council of Economic Advisors under Kennedy) later admitted that the lower rate on top-earners similarly proved progressive when it came to the “rich” increasing their contribution to federal revenues.

When Thurow’s book debuted, the top tax rate was 70 percent and the top 1 percent of earners delivered 15 percent of federal revenues. Fast forward twenty-seven years: With the top rate at 35 percent, the top 1 percent provide 34 percent of federal income-tax receipts.

The simple reality behind wealth creation is that it occurs when society’s most productive members are left to innovate as freely as possible from governmental roadblocks to growth. With tax rates well down from their 20th century highs, there are far greater incentives today to attempt new ideas that lead to new products and higher paying jobs. On the inflation front, products and jobs, at the core, are money demand — which means growth-stimulating tax cuts are the single best antidote to inflationary pressures.

Thurow, alas, was wrong all over. However, he should be given his due for noting that improvements to society will only occur in an economic environment where the “rich” are paying far more than their fair share. It simply comes down to how they pay it. For one, high incomes rarely reveal themselves when the penalty for doing so is excessive expropriation. And the idea of increasing the tax revenues supplied by America’s rich is incomplete absent the basic understanding that marginal tax cuts are the best way of achieving this goal.

Brent

Today there are many financial “gurus” who claim to know it all when it comes to wealth creation. Surely, a number of these experts really do know a lot about investing and creating wealth. But even before the big names in financial wealth creation there came other greats who spoke to the world on a more primary wealth creation level. One of those men was Wallace D. Wattles, author of The Science of Getting Rich. Wattles’ message is one primed to stand the test of time in matters of wealth creation, as it speaks to some of the most essential elements of success in achieving financial wealth.

Who Was Wallace Wattles?

Wallace Wattles started out life poor and continue on that way for much of his life. Why, then, is Wallace Wattles today considered one of the greatest contributors to wealth creation? Why is this poverty-stricken American one of the most recommended authors for the average person looking to create wealth of his or her own?

In short, Wallace Wattles is touted as a forefather of wealth creation because he rose above that poverty and a lifetime’s worth of failure to die rich and successful.

Wattles started on his own path to wealth creation by first studying the principles of successful financial wealth. His study was based more in universal theory than in any one financial school. For a number of years Wattles delved deeply into the theories of the universe that governed all life matters, specifically, the monistic theory of the universe (the Hinud-based theory which provides the basis for the greatest of philosophies of the world, including the works of Descartes, Spinoza, Emerson, Heigel, Leibnitz, Schopenhauer, and many others).

After formulating a Science for Getting Rich which Wattles based in this theory (in coordination with others), Wattles applied his Science for Getting Rich to his own life; Ultimately, when Wattles died at the age of 51, he was a rich man, and a well respected author of more than five self-empowerment classics, plus short manuscripts and a novel. In essence, what Wattles did was prove his own wealth creation theory by applying it to his own life.

What Was Wattles Wealth Creation Message?

Wallace’s theory, which he often referred to as “The New Thought Principles”, is very well detailed in his most famous wealth creation text, The Science of Getting Rich. It is a wealth of knowledge that is somewhat done an injustice in summary; but if there were a phrase to summarize Wattles’ message, it would be “positive thinking”.

Wallace Wattles’ writings were very much based in the belief that all a man or woman needs to succeed in life, to create wealth and live prosperously is within reach to all who develop the proper mindset to succeed financially. Those who devote themselves to success in wealth creation and commit to thinking and acting in a “Certain Way” will find their way to success. This is achieved through a combination of putting forth the needed effort, visualizing success, and believing in both one’s own ability and right to be financially successful to make money.

If the basis of Wattles’ teachings seems simplistic, it is because to an extent it is. Of course, Wattles lends much more to the discussion in his books; he lays out the path to forming the right state of mind, and works to dismiss all of the common excuses for why a person cannot get rich. Wattles explains, scientifically, why there is no limit to wealth and why no single person is limited by anything in his or her upbringing or current circumstance.

Though not overly well-known to the general public, Wallace Wattles is very well known in circles of wealth creation. This enduring author is famous for his wide-reaching approach to wealth creation, and his message is timeless, applicable to any type of wealth creation; Wattles is a fitting must-read for every novice and seasoned pursuer of financial freedom.



By: Sean Rasmussen

About the Author:

Quenby

Hello wealth seekers

This article- its about how you can create the right conditions for wealth.

One of the most important aspects of wealth creation? YOU!

Anthony Robbins (a leader in success coaching) Michael Yardney (Property Investment Guru) Robert Kiyosaki (Rich Dad/Poor Dad), Jamie Mcintyre (21st century founder and financial intelligence coach) all talk about the correct mindset toward creating wealth.

In other words you are the main obstacle behind why you are not rich,wealthy,loaded!

What is the biggest obstacle in your wealth creation?

Key Mindset patterns that are important to all wealth seekers.

    * Thinking in terms of abundance instead of scarcity

    * Becoming responsible for your own actions! No one else is to blame for your situation as you always have a choice in ANY situation.

    * Wealthy people look for opportunities in change- no matter the state of the market,economic cycle, social issues there are always opportunities to create wealth. Warren Buffet (stocks and shares @ Berkshire Hathaway) and Michael Yardney (Property Investment) are prime examples of this.

    * Making mistakes are good for you! Without mistakes you would never learn anything!

    * Constant and never ending improvement! This a trademarked term by Anthony Robbins- this is an integral part, it relates to education, your own health, business models- YOUR LIFE

    * Part of taking responsibility is taking action- Massive action, this needs to be done by looking for solutions to problems- Not blame, not reasons why- but how to get over hurdles, take down obstacles.

    * Taking risks is paramount to success- do you have the right risk profile to succeed?

Part of my journey to wealth involved living in Australia- Being in such a laid back place with a postive attiude made me look at the thing I really wanted in life.

I came across the Jamie McIntyre program after going to one of his free seminar held in the the Mariot in Brisbane. I signed up for his free DVD,book, and 1 year of his home study programs. At first I felt there was a massive pressure and a bit of a cultism going on- but after implementing a few of his strategies to both stocks and also property I had a few good results ( I traded on a company in the ASX within 1 month that made me over $1000 AUD). But one of the biggest things that helped me the most was that the course changed my mindset.

This mindset change enabled me to source out finance and buy my first piece of property in the highly affluent area of Clayfield in Brisbane. This was within 6 months of doing half of the course. This was using very little ($2000 AUD that I financed through my trading of shares) of my own money and based on my $20,000 per year salary- this was amazing. The property is doing very well and has risen 60,000 in value in  its first 6 months. The best thing about this was that I feel that this was all due to a change in mindset with no outlay!

I know there are a lot of sharks and scams out there but I know the Jamie Mcintyre program and it has worked well for me. An added plus is that it is not too Americanized like Anthony Robbins programs can be (that can be good or bad so no offence to my American subsribers!).

Point is-regardless of how we create our wealth, our mindset is one of the greatest tools we possess. We can be slapped in the face with the best money making idea in the world- but if we do not have the correct mindset we may pass this up or even worse start it and stop because we find fault with it!

I recommend you have a look at Jamie’s site, what Id also like you to do is drop me a line or comment on this article and let me know what you think. 

More importantly make sure you choose the right mindset that can help you prosper and create unlimited wealth for you!

Drop me a line @ pearceinvestmentsuk@gmail.com. Let me know your wealth creation stories.

All the best for your wealth creation

John Self



By: John Self

About the Author:

Fitzgerald

Thompson asked:


Many people have the idea that to create wealth you have to take risk. This is a misconception. True wealth is created at no risk, but can be enhanced by a growing economy.

Traditional financial planning just isn’t working.

http://www.becomingyourownbank.com

Aldrich

Real estate (both residential and commercial property) is perhaps the best way for the average person to generate wealth. There are many reasons why real estate is such a brilliant way to fast-track your wealth plan and why it’s so popular with those who want to become wealthy or are already wealthy. The key ones are:

1. Income and capital gain

2. Financial leverage

3. Low volatility

4. Below-market purchases

5. Add value

6. Ability to extract cash that is tax-deferred

7. Simple

Let’s look at each of these advantages.

Income and capital gain:

Real estate offers investors the ability to gain on both income and price appreciation. Income comes in the form of rentals and investors’ benefit from rental increases over times, which are usually in line with inflation or wage growth. This means that those who hold properties over the long term can experience significant increases in the income their properties produce, while mortgage payments remain constant.

Investors also benefit from the capital growth in the value of their properties over time, while their mortgage either stays the same (interest only) or reduces (repayment mortgage). This is usually a slow, constant growth rate that reflects increasing demand due to inflation and population growth. One of the wonderful things about capital growth is that it’s unrealized income and as such you don’t pay tax on it until you realize it…i.e. sell your property.

Financial leverage:

Financial Leverage, also known as gearing, allows you to control assets far beyond and much earlier than by using your own money. Real estate is quite unique in that those with money, namely banks, are more than willing to lend you their money for property investment. Turn on the TV, open up a magazine or walk down a main street, and you’ll see ad after ad for financial institutions offering to loan you money for a home loan. When compared to all other asset classes, property stands alone. Why? Because banks consider property a low-risk asset.

The key benefit of gearing is that for every dollar you invest you control more assets…assets that are paying an income and growing in capital value.

Let’s say you’ve managed to save $15,000 and you wanted to compare stocks and property as two investment alternatives to see how they stacked up. Well, for stocks your $15,000 would buy $15,000 worth of stocks as gearing is both difficult and fairly risky. For real estate however, it’s quite simple to get 85% leverage on residential property, which would allow you to purchase a property worth $100,000.

Assuming that both stocks and property increase in value by 5% per year and the income from your property covers all your interest costs and running expenses (which it should if you’ve positively geared), how do they compare?

Both stocks and property have produced the same return on the invested capital. i.e. 5%. However, this does not represent the return that you receive on the cash you’ve invested. The return on your cash using stocks is still 5% as there is no gearing, but your return on your real estate is actually 33%. This is why a direct comparison of returns between stocks and real estate is totally pointless. You need to take into account the effects of gearing. Financial leverage is one of the key reasons why using property is so powerful since you can use OPM to multiply and fast-track your wealth plan.

Low volatility:

Volatility is generally considered the normal measure of risk. The wealthy do not agree entirely with this assessment of risk, but for the purposes of this analysis well stick with this version of risk (for the wealth creation view of risk visit the Risk category). If you were to compare the market index like the Dow, S&P, FTSE, All Ords, etc against property indexes over similar periods, property is far less volatile. But this hides the real truth…Firstly, what is the likelihood that an individual stock or property will follow their respective indexes? In the case of stocks, who knows! The average return of a market doesn’t tell you anything about a particular stock’s movement. Some individual stocks go up, while others go down. Compare this with property. If average prices of property have risen 5% over a year, it’s pretty likely that an individual property will move fairly close to this average.

Secondly, prices in stocks can move every second the market is open. Again, compared to property, the prices tend to change far more gradually and consistently over time.

Below-market purchases:

Real estate is an incredible wealth building tool because it can be purchased below its market value. It’s just not possible to buy below market value when you deal in bonds, stocks or commodities. There’s just one market price.However, with real estate there will always be desperate sellers willing to sell their properties below market value. Why? The most popular reasons are:

* Need to sell quickly due to divorce or financial strain

* Tired and frustrated of the sales process

* Don’t want the hassle involved in dealing with real estate agents and showing lots of people through their home

* Prior sale falling through

* Selling privately and lack of knowledge of their property’s true value.

Add value:

Too many people walk into a property and are turned off by superficial problems. However, all often the problems are quite superficial and can be easily fixed resulting in enormous value and profit. You can visit your local paint shop and repaint the place or put in new carpet or wood flooring, replace the bathroom or kitchen, put in new lights and switches, clean and mow the yard, or any number of other things that will add far more value than the cost of the improvement. Property is quite unique in this regard. With stocks, mutual funds, commodities or bonds, it simply isn’t possible to add any value to your purchase.

Ability to extract cash that is tax-deferred:

When a property increases in price, it’s quite simple to re-mortgage the property and extract cash out of it to buy more assets to build your wealth. You don’t pay tax on the money you’ve released because it’s a loan (not income) and the interest on the loan is tax-deductible as long as it’s spent on buying assets.

It’s a common misconception that this is tax-free income. It’s not tax-free but, rather, tax-deferred until you sell the property. If you don’t sell, there’s no tax to pay.

Releasing cash tax deferred is one of the most effective ways to build wealth quickly and efficiently. Thousands can turn into hundreds of thousands and hundreds of thousands into millions in a very short space of time. For example, if property were to double every 5 years and you had $15,000 in cash, then with 85% loan to value loans you could turn it into nearly $7 million in equity on a $45 million portfolio after just 15 years.

Simple:

Assessing and buying real estate isn’t complex. We all know what makes a good residential property and what looks in need of some attention. Of course, things like structural surveys, etc. are for experts, but that’s just a matter of hiring a surveyor. Local agents can give you the low down on what’s in demand and what’s not. Anyone can tell if a property is desirable to live in and as they say “practice makes perfect.” With practice you’ll begin to find not only the best properties to rent but also the ones that are being offered below market value.

Hopefully you’ll agree that these 7 reasons make property one of, if not the, best method for the average person to generate enormous wealth



By: Emlyn Scott

About the Author:

Duncan

Bhaagam B asked:


i am not talking about wealth or any material things etc.your respectable answers please. thanks.

Morgan

SophisticatedME asked:


I am a great decorator with a great eye for detail. I am excited of happy occasions, wedding, b-day parties, designing photo album covers, make a home style design of great wealth illusion, even though your finances is not as much. Creating a new plan for living from day by day to be happy and be careful of creations of bills, how to do your own debt management. If anyone is interest email me for help.

Quillan

I have given many talks on my “21 ways of Generating Big Revenues through Direct Response Marketing?”.

Many people have walked away probably saying ‘nothing new’. Others have sought me out to engage me on issues which I thought was nothing new.

Often this latter group of people will return to share and thank me for their success, and will be amongst the list of people sending me hampers this Chinese New Year.

Over time I have come to recognize these successful wealth creators as people with a Green View. They can see freshness in old cliche always excited, never seem bored.

GREEN when referring to people seems to have somewhat a universal meaning. In the western world, it implies new, inexperienced, likewise to the Chinese. But the Chinese, (Chinese language being more picturesque) have the added imagery of someone inexperienced climbing all over the place constantly and fruitlessly. The word green in Cantonese ‘tsen’ refers to a yellow-green or fresh green. Hence parents will often tell young children don’t be ‘kum kum tsen’ which in Cantonese which means “don’t climb around like a green monster”, or “don’t be so fidgety” which takes us to the Key Wealth Attitude discussed in this short essay. Fidgetiness reveals not just a lack of focus but more a lack of stillness. I have seen many focused persons fail as they lacked stillness.

Some years ago, I attended a Wealth Creation Seminar that changed my life. It was about investing in the stock market but the learning point I took away helped me in all aspects of my life. I only learnt or rather was reminded to do just one thing, ‘Be still when you make a decision’. I have found that this applies effectively to buying stocks and shares or any other things that I do.

It was then the late 90s and I had lost a bunch of money with the stock market falling through the roof. It was also a period when I just retired from my corporate career of 20 plus years. My six-sense had prodded me to pay attention to my investment portfolio, as it was obvious that things were getting rather dynamic or hot. unfortunately being newly retired, and with so many propositions in my face, I did not have the stillness to do it as a result I lost probably much more than I should.

Some of you may say that this is mere hindsight every person can rationalize his own success or failure. I will not disagree with such assertions unfortunately that is what learning is all about. The importance is whether a rationale is helpful for the future and for me it was.

So I do not close my mind to just one thing or other because that’s dangerous in this highly dynamic world… but within this chaos learn to have a stillness of mind, especially when making decisions. With stillness, the right paths will crystallize.

The imageries I like to use to describe is stillness is encapsulated in one of my postings in the Blog, Paradise Regained.

A Shaolin monk perched precariously on

one foot on a bamboo pole,

full of potential power,

silent, fully aware of himself and the environment,

ready to strike, and

when he does, he does so effectively

in quick simple strokes

or the blind swordsman who despite his lack of vision

is able detect all movements around him.

He is entirely centered, totally aware

about his self and his relationship with his surroundings

Returning to my talks on “21 Ways to Generating Big Revenues for Direct Response Marketing”, I have often been asked which is the most important. It makes me recall the Bible when the disciples asked Jesus which of them was most important. Even though Jesus seemingly suggested Peter as the Rock on which he build the church…looking through the Act of Apostle which outline their evangelical mission, one would conclude that different disciples had their time and place in the history of the church..and it was Paul, not one of the 12 who pushed Christianity into empire status.

Asking what or who is most important reveals the green of someone excited without stillness. There is a time and a place for everything is an old adage which I see people, including myself, repeat so often but imbibe so little in our minds. We keep jumping and climbing, ‘kum kum tsen’ into situations where we shouldn’t be (in hindsight).

So it’s good to be excited, to be active, curious and inquisitive, but it is most important to keep our sense of stillness. Apply stillness in every project you do in all the 21 approaches that you take if we decide it is good for you. Don’t get involved if for some reasons you cannot be still.

How do we gain this stillness? My good friend Eddie Goh speaks about this regularly. I will just mention a few points as a conclusion to the article.

There is the aspect of reengineering our lives developing a criteria of what values are important to us the anchoring framework of our being. For those with a religion, praying routinely is probably the best way. Routinely is the key word. Others will have to find different routines to engage in deep reflection and thought meditation, or just get way from everything go ocean watching or nature hiking with plenty of Greenness around you.



By: Steve Seah

About the Author:

Richard

Poly_777 asked:


One full sentence minimum please.
Links appreciated.

Everett