| By Bill Bonner Families with old money all have their own norms, their own values, and their own no-nos. These largely determine their success or failure over time. Don’t fall into the trap of focusing only on the financial side of your family legacy. The family side is way more important. What follows is a list of eight things that “aren’t cool” for families who want to create “old money.” You will have your own list. What’s important is that you spend time instilling the values on your list in your kids and grandkids. Your family’s success rests on their shoulders. | Recommended Link | | Urgent Message! Bitcoin is on a tear. It has risen nearly 275% this year… And soon, it could reach record highs. Recently, I uncovered a company that is willing to pay you interest in the form of Bitcoin… At rates up to 6%! That’s 120 times what you would get with a traditional savings account right now. | | | -- | 1. Spending – Not Cool Give a million dollars to an average person, and he immediately thinks of what it will buy. But give a million dollars to an old-money family, and it goes into a business… an investment… or a new entrepreneurial venture. What matters for old money is producing, not consuming. We don’t want to consume goods and services. We don’t want to consume information and ideas. We don’t want to consume Wall Street’s fee-stuffed “HNWI” (high net worth individual) products, either. What is the "1170" Investment Account? Let others drive their fancy cars, carry their expensive handbags, and have addresses in the chic ZIP codes. Old money doesn’t show off by buying things. It prefers to keep a low profile… and a low cost of living. It knows that investment costs have to be kept down, too. And the best way to do that is to avoid hedge funds and structured products. Stick with simple, low-cost, long-term investments. | Recommended Link | | Trump's Secret Legacy In late July, the Trump administration oversaw a RADICAL change to the tech world… one that could unleash a huge wave of disruption… prosperity… and wealth creation in the near future. Chances are, you haven’t heard about it until today. But according to one of America’s most respected tech forecasters, it’s set to create small fortunes right here in this country. He recently went on camera to explain why… | | | -- | 2. Spending the Family Fortune – Even Less Cool “Never touch the capital” is a long-standing rule and a hallowed tradition among old-money families. You may spend the interest on the family fortune – even the capital gains it produces. But woe betide the heir who draws down the principal. The principal must be kept intact. Any distributions should be of interest, after taxes and inflation adjustments. At today’s low interest rates, it is hard to earn much income – safely – from your investments. Families are tempted to “dip into capital” to make ends meet. There’s a taboo against it. And for good reason. Once you begin living on a previous generation’s savings, you will find it hard to stop… until the family fortune is all gone. “Eat only what you kill” is a better way of expressing the taboo against spending family wealth. It allows you to spend only what you make yourself. The earnings from capital go back into the family fortune, replacing losses from inflation and taxes. Viral: 1.3 Million Folks have Already Seen This Message. 3. Doing What Others Do – Not Cool Most people want to fit in. They seek social approval by doing what other people do. But if you do what other people do, you will get the results that they get. You will become average – just like they are. Having wealth is rare. Having it for more than one generation is rarer still. You don’t do that by doing what other people do. You have to think more clearly… and avoid many of the ideas, values, and habits that most people have. You must be willing to be different. Sorry. But that’s the price of having and holding on to old money. | Recommended Link | | Crazy trading method can pay out far MORE than stocks If you think these huge trades are options – they’re not. Even better, these trades can cost 25¢… 10¢… even as little as ONE PENNY a pop. PLUS, an elite group of our readers just saw a 19¢ recommendation soar as much as an extraordinary 5,100%. And, thanks to an obscure loophole in SEC Rule 30.52… You can place these weird trades right from your brokerage account. | | | -- | 4. Making a Public Spectacle of Yourself – Not Cool Paris Hilton may have enjoyed getting her face in People magazine. But the Hilton family didn’t like it at all. Old money likes to keep things private. It favors private businesses, private information, private investments, and private lives. Private businesses are more profitable, to their owners, than publicly quoted stocks. They pay fewer legal fees, fewer accounting fees, and spend much less money trying to please investors and the media. Today, publicly traded businesses in the U.S. distribute a measly average of 60% of their profits to shareholders. A privately owned, privately controlled business, on the other hand, may turn over 100% of its earnings to shareholders. It may give the owners corner offices, too. In a public company, much of the earnings go to paying CEOs and corporate managers. In a privately controlled corporation, the owners decide who gets the money. Old-money families also learn to discount public information – the stuff you get from newspapers and TV – and to put a premium on their private information sources. They trust their own eyes and ears… and their personal contacts. This attitude informs old-money families’ investments. Rather than invest on the basis of what everybody knows, they try to pin their investments on what they know that other people don’t. Deep knowledge of particular industries is developed. Special “family secrets” are encouraged. Jobs, financing, insurance, and a helping hand are available when they are needed. Old money looks to private sources – primary among them the family – for what it needs. Stay tuned tomorrow for more… Regards, Bill Managing Editor’s Note: Tomorrow, Bill has more “not cool” things to avoid if you want to create lasting family wealth. If you liked today’s essay, I encourage you to consider Bill’s latest book, Win-Win or Lose… Bill says it’s the last book he ever intends to write. He also believes it’s his most important book. It’s a history book, a psychology book, an investment manual, a business book, a self-help book, and a novel of the future – all in one. His book will help you make sense of what’s really happening in 2020 (and beyond). Go here to find out how you can get a limited-edition hardback copy.
Like what you’re reading? Send your thoughts to feedback@rogueeconomics.com.
IN CASE YOU MISSED IT… This one stock could be a game changer for you Getting in on the ground floor of exciting stocks like Google and Amazon happens once in a lifetime, if you’re lucky. Fortunately, those aren’t the only stocks out there. Some stocks are – simply put – dependable players that perform over and over again. These are the stocks that interest master trader Jeff Clark. They are the same kinds of stocks that enabled his retirement from money management at age 42. Today, he shares the name of one of these “dependable workhorse” stocks. Get it here. 
Get Instant Access Click to read these free reports and automatically sign up for daily research. | 
No comments:
Post a Comment