Step 5 – Accumulating Wealth

This is everybody’s favorite area because you get a lot of flexibility and freedom to build wealth in a way that makes you happiest. Whether you choose buying/starting a business, buying stocks, purchasing real estate, or flipping houses this is where personal flexibility and ingenuity really allow your personal wealth to begin to grow.
While many may think that I’m biased towards investing in stocks as the best way to accumulate wealth, you are all in for a surprise. The best way to create wealth with a minimum investment of time and effort, is the stock market. The best way to create gobs and gobs of money is by starting or operating a business 1st hand.
This is where you really have to do some soul searching and think about “what is important about money to you?” If it’s a means to have maximum flexibility and minimum responsibility, I believe the stock market is your best bet. If it’s a means to influence, power, & respect, you’re probably better off going into business for yourself.
My wealthiest clients are all business owners. They have large investment accounts, and these accounts are usually their 3rd or 4th most valuable asset. Their business is there most valuable, their position as CEO is second most (as successful business owners pay themselves a fixed income), real estate investments are usually third, and their stock/bond account is usually fourth.
The stock market is a mixed blessing – it provides unmatched opportunity for easy long term growth – for those who can stomach the volatility and there are no barriers to entry. There is little downside, other than the loss of principal.
I will spend some specific time going over the different options as far as ways to accumulate wealth, as it is complicated and I want you to see the up and downsides of every option.

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