Making Money 301 – Staying Rich

Very few people will ‘become rich’ …

… a lot of those that do make it to this stage do so by virtue of ‘accident’ (inheritence, lottery, sudden fame, etc.) … without graduating through Money 101 and 201, many lose their money here … all of it and quickly.

During this stage, there is still an up to 80% failure rate!

Even for those who have lived through Money 201 and 301, the rules change (again). There are only a couple of books (Get Rich, Stay Rich, Pass It On, The Millionaire Next Door, and Donald Trump’s books) and I didn’t find any of them to be terribly helpful.

This stage is all about moving more risky ACTIVE assets (businesses, trading portfolios, etc.) into PASSIVE portfolios (income producing real estate, selected value stocks, inflation-protected bonds, etc.) that generate enough passive income to support your dream retirement lifestyle.

The tools here are wealth preservation tools: value stocks, buy-and-hold commercial real estate, inflation-protected bonds (as well as maintaining the remaining Money 101 and 201 systems).

Now that you are Rich (really), your main task is to have fun (you’ve earned it!) but to also be at least 98% certain that your money will not run out before you do …

Simple, isn’t it?

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4 Responses to “ Making Money 301 – Staying Rich ”

1. Joshua H. says:

   March 10, 2008 at 12:40 pm

   Hi,
   great blog. read the whole thing, each piece is better then the next. I’ve just paid off all my debt and am looking forward to following the steps you’ve laid out here. I’m currently working on starting an e-commerce business after work and in my spare time. Can’t wait for “money making 401″.
   Please feel free to e-mail me if you have any personal advice.

   Joshua
2. AJC says:

   March 10, 2008 at 1:52 pm

   Thanks for your comment Joshua.

   Debt free … excellent! Starting an e-commerce business after work …. also, excellent.

   That puts you right in Making Money 201 … just remember to keep up your savings plan (you know the 10% to 20% that you put aside from your ‘day job’) AND put aside 50% of whatever eCommerce.com spits off after startup …

   … then, keep focussing on increasing income AND investing THEN you’ll be ready for MM 401: sipping pina-coladas on Bondi Beach
3. So, who’s missed the point?- 7million7years says:

   February 3, 2010 at 1:21 am

   [...] – hence Philip – were talking about investing for retirement; after retirement – Making Money 301 – I wholeheartedly agree that the “goal of the investment portfolio is to produce a [...]
4. Punch Buggy Blue!- 7million7years says:

   April 19, 2010 at 4:58 am

   [...] say that you do agree that real-estate is one of the best MM301 (wealth preservation) strategies … although, many of my readers would disagree [...]