January 24, 2017
Interview with Jason Vanclef, author of the book The Wealth Code 2.0
Mike Carruthers:
How do rich people get rich?
Jason Vanclef:
They don’t put all their eggs in one basket – we’ve heard it before. They build financial tables with many different legs on them. Stocks and bonds are just one leg and they understand that legs will break but other ones will support the table.
Financial advisor Jason Vanclef, author of the book The Wealth Code 2.0, says while stocks and bonds are popular investments – that’s not the way most rich people make their money.
They made it in in-liquid investments – usually it’s formed a business; they own lots of real estate. But the key to most of the very wealthy they did not make it in liquid investments and that is something that is a big mistake of most investors.
When you think investments you think stocks and bonds but Jason says it wasn’t always that way.
Because before 1930 the stock market was the alternative investment and oil and gas and real estate these were the standard bearers of wealth. It’s only been with this marketing machine of Wall Street that we now think that Wall Street is the main idea. I challenge that assumption because that’s not where wealth comes from.
Jason believes a great investment for just about everyone is tax reduction.
We tell clients that constantly, we teach them that income tax reduction is an investment. But how many people will take 10 thousand dollars, invest with a tax attorney and you save 30 thousand in taxes over the next 3 or 4 years? What’s a more realistic approach? I would say the taxes are a far more certainty than a mutual fund.
