I Christen Today…Wealthy Wednesday!

Good morning!

So over the holiday weekend, I came up with an idea.

After Thanksgiving, we have:

  • Black Friday…
  • Small Business Saturday…
  • Cyber Monday…
  • and Giving Tuesday.

What we don’t have, at least not yet, is…

  • a national day on which people are encouraged to buy stock in their favorite companies.

How does Wealthy Wednesday sound?

Here’s how it would work: On the Wednesday that follows Black Friday (that’s today!), investors – new and experienced – will buy at least one share, or in some cases a fraction of a share, of the company of their choice.

It’s as simple as that!

Of all the presents you buy this year, this may well be the only one you are truly thankful for five years from now.

Seriously.

Think about it…

Within the next few years, you may already have upgraded that new iPhone you got this year. You may have worn out that new outfit.

Many people overextend themselves and go into debt to buy gifts they really can’t afford. Several years from now, you may hardly remember most of the gifts you received this Christmas, unless you get something like a car, or a trip to Hawaii.

I recently read an article that reported more than half of U.S. households have no money in the stock market. That means they don’t own a mutual fund, ETF, or individual stock – not in an IRA, not in a 401(k), not anywhere.

This is very unfortunate – and needs to change. The stock market is the best wealth-building vehicle there is!

So…what better way to promote the importance of investing than to set aside a day like today, the Wednesday following Thanksgiving, and call it Wealthy Wednesday?

The number of people that do not invest, and need to, is tens of millions. So many people have misinformation about investing and liken it to gambling – which it is far, far from!

Whether you earn $250,000 a year or $30,000, you can get started investing today. It’s very, very simple – opening an investment account is as easy as opening a regular bank account!

If you need help, I’ve written a short beginners’ guide and am available for consultation. My mission is to see us all invested and building wealth! All of us!

So…today, please help me start a movement this country desperately needs. Please share this post on social media with the hashtag #WealthyWednesday…and buy a stock today!

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

 

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How To Invest A Sudden Windfall

If you’re fortunate – or unfortunate, depending on how you look at it – you may one day experience a sudden windfall.

A windfall is an unexpected cash injection, usually in the form of a settlement from a lawsuit or an inheritance.

Throughout the course of my life, I have seen a number of people come into a considerable amount of money, only to squander it. They spend the money on things like shopping sprees, buying a brand new car (or cars), and giving to family members.

Once your purchases are driven by emotion, it is almost a foregone conclusion that you will not make smart choices with your newfound wealth. Here is a real life example:

A couple I know of was awarded $1,500,000 in the early 2000s. The first thing they did was go to Fifth Avenue in Manhattan and go on a shopping spree at some of the most expensive stores. They bought two cars and moved to Florida.

Now, buying real estate is never a bad idea if you suddenly come into money. However…financing a property, at the height of the real estate bubble in 2006, can become a bad idea.

Instead of paying straight cash, as I would have, this couple financed a $300,000 home that proved to be a disaster. They also spent a great deal to furnish their home, as well as thousands on landscaping.

Within a few years, they had almost depleted their windfall.

To make matters worse, the $300,000 house they mortgaged was underwater. That means the amount they owed was more than the house was worth.

Eventually, they ran out of money and had to move back to New York in order for the wife to find a job.

This is a very unfortunate series of events – but a very common one among people that come into a large sum of money.

What would I do with a windfall of $1,500,000?

Here it is, plan and simple:

  • Half of it, $750,000, is going into the stock market. Listen: one million dollars is not a lot of money any more. I might be able to 10X the $750,000 over the next 20 years, bringing me to $7.5 million.
  • I’d use $400,000 to purchase a business that generates positive cash flow of at least $10,000 monthly. My first goal is to become financially free, i.e. not have to go to work at a job anymore.
  • $100,000 would go into a college fund for my daughter.
  • I’d put $250,000 into real estate.

A sudden windfall can be very exciting indeed. Unfortunately, most people squander the money because they simply don’t possess financial literacy.

If you come into money and don’t know what to do, do nothing. Seek out financial advice from someone you can trust. (Hint, they’re usually not broke.)

And when you’re ready to invest, I’d be honored if you bought my beginners’ guide and/or reached out to me for help!

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)