This Investing Advantage Could Be the Secret to Massive Wealth

This Investing Advantage Could Be the Secret to Massive Wealth

Knowing this difference between linear growth and exponential growth instantly sets you apart from your fellow investors and gives you a huge advantage. It can literally make you millions of dollars over the coming years. Even the most educated and high-achieving women do not participate equally with their husbands in long-term financial decision making, according to a study. As a woman, I sometimes find myself not wanting to bother with financial planning, insurance and tax returns, just to name a few financial issues. I am married to a

We sit on the verge of transformation.

Right now, there are a handful of innovations in their early stages that will change our world in a way the internet did in the 1990s … the way railroads did in the 1800s … and the way the automobile did in the 1900s.

Informed investors stand to make gains similar to — possibly even larger than — those during the internet boom.

The reason I compare the Roaring 2020s to the Soaring 1990s is simple …

It’s the convergence of multiple innovations all at once.

Back in the 1990s, it wasn’t just a computer revolution. It was computers PLUS the internet PLUS microprocessors PLUS cellular phones.

Each innovation helped drive the growth of others.

Now we have 5G, artificial intelligence, precision medicine, the Internet of Things, virtual and augmented reality, biotech, blockchain, and more. This convergence is enabling new businesses to operate with unprecedented efficiency and productivity … and allowing them to create wealth faster than ever before.

It’s all about technologies piled on top of technologies. Innovation on top of innovation. And as a result, profits on top of profits …

When hypergrowth trends converged in the 1990s, top companies didn’t grow at a linear pace.

That would be 1, followed by 2, followed by 3, 4, 5 …

Instead they grew at exponential rates: 1, 2, then 4, 8, 16, 32, 64, and so on …

Exponential progress is progress that multiplies in power and scope with each step. Profits also multiply.

Here’s an old legend that helps illustrate the power of exponential growth …

Hundreds of years ago, a king invited a traveler to play a game of chess.

The king loved chess and very much wanted a challenge. He told the traveler that he could name his reward if he won the game.

In response, the traveler modestly asked for some rice. He asked the king to give him a single grain of rice on the first square of the chessboard and then give him double the amount — two grains — and place it on the next square. Then double that amount — four grains — and keep doubling for each square on the chessboard.

The king lost the game. And being a man of his word, he called for a bag of rice. The king placed one grain on one square, two grains on the next one, four grains on the next one, eight grains on the next one, and so on.

So far, so good.

But by the 16th square, the numbers were getting very large and the king very uneasy. He owed the traveler 32,868 grains of rice on that square.

Soon, the king realized that because of the exponential growth, he could not fulfill his promise. On the 21st square, he would need to put down over 1,000,000 grains of rice. By the 31st square, he would need to put down over one billion grains of rice.

And finally, on the 64th square, the king would need to put down 18,000,000,000,000,000,000 grains of rice! More rice than the kingdom could produce in over 100 years.

That is the power of exponential progress.

The way to achieve exponential profit growth is to invest early in smaller stocks that still have that kind of potential.

That’s how the biggest gains were made in legendary wealth-builders like Microsoft (NASDAQ:MSFT), up 342,183%.

Now, at a $1.6 trillion market cap, exponential growth for Microsoft is almost mathematically impossible. It will take Microsoft years to double its revenues or profits.

But back when Microsoft was valued at $1 billion … or even $100 million … it was an outstanding place to put your money.

Same with Cisco (NASDAQ:CSCO), which is up 65,850%.

Walmart (NYSE:WMT), up 683,950%.

Adobe (NASDAQ:ADBE), up 317,406%.

And on and on.

My advice is to think big. Anyone who focuses on one theme — no matter how massive it may be — is missing the boat.

Yes, 5G and biotech will both be huge. But by working together, innovation upon innovation, the gains will be truly epic.

Everyone knows Amazon (NASDAQ:AMZN). It’s a monster stock market winner — up more than 11,000% since 2000. But not everyone recognizes WHY it’s up so much. It’s the synergies of top-notch web services PLUS powerful cloud storage PLUS phenomenal logistics PLUS world-class artificial intelligence.

Knowing this difference between linear growth and exponential growth instantly sets you apart from your fellow investors and gives you a huge advantage. It can literally make you millions of dollars over the coming years.

When it comes to extreme wealth creation, few endeavors can compare to being an owner of a small company that grows large.

At this particular moment in history, there are dozens of stocks with that kind of potential all around us right now.

Why not try to find and own them?

On the date of publication, Matthew McCall did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. Click here to see what Matt has up his sleeve now. 

Source: investorplace.com

Author: By

Matt McCall, Editor, MoneyWire


Wealthy Millennial Women Tend to Defer to Husbands on Investing

Wealthy Millennial Women Tend to Defer to Husbands on Investing

Even the most educated and high-achieving women do not participate equally with their husbands in long-term financial decision making, according to a study.

When Representative Katie Porter ended her troubled marriage, leaving was tough, but one thing made it easier: For years, she had handled the family’s investments and savings plans, and she was confident that she and her children would be OK.

“It was really important to me to know that I would be able to feed and house and care for my children that next month, and the month after that,” Ms. Porter, Democrat of California, said of leaving her husband, who she said had physically abused her.

Not enough women, she said, see competency in personal finance as key to freedom and security.

A study published in June by the Swiss banking group UBS underscored that point. It found that even the most educated and high-achieving millennial women were not as involved as their husbands in long-term financial decision making.

In fact, millennial women — part of a generation thought to have pushed for open-mindedness about gender roles — exhibited less financial independence than boomer women did. Among millennial women living with male partners, 54 percent said they deferred to their partners for long-term financial planning rather than sharing that responsibility or taking the lead themselves, compared with 39 percent of boomer women, according to the study, which surveyed 1,320 women with at least $250,000 in investable assets.

The primary reason those women deferred was a belief that their husbands knew more, the study found.

There have been worrying signs of a lack of progress toward gender equality at all income levels. A Gallup survey published in January found that opposite-sex couples ages 18 to 34 were no more likely than older couples to divide household chores equitably.

The gender gap in financial autonomy is especially critical now, with women at particular risk of getting sidelined during the coronavirus pandemic. Of the 1.1 million people 20 and older who left the work force in August and September, nearly 80 percent were women, according to an analysis by the National Women’s Law Center.

A study published last month by the consulting firm McKinsey & Company found that a third of mothers had considered leaving the work force or downshifting their careers during the pandemic, with a majority of those citing child care challenges as a primary reason.

The UBS study also found that fewer millennial women than boomer women saw financial participation as necessary for equality, with 76 percent of millennials (ages 24 to 39) saying it was essential, compared with 89 percent of boomers (ages 56 to 74).

Many conversations about women’s empowerment are focused on negotiating salary increases, Ms. Porter said. “But what good does that raise do you if you don’t know what your savings plan is going to be with that little bit of extra money?” she said. “What good does it do to climb that ladder and get that next higher-paying job with better benefits if you don’t take the time to invest that retirement fund correctly?”

Sallie Krawcheck, chief executive and co-founder of Ellevest, an investment platform for women, said millennials might not have realized that if they do not have financial equality, they do not have independence.

“Younger women haven’t had as many hard-won lessons,” she said.

The UBS study has limitations: It did not survey the boomers when they were three decades younger, the age millennials are today, so it is hard to conclude to what extent the differing attitudes are because of age and acquired wisdom versus other changes. And the women surveyed, all of whom had at least a quarter of a million dollars in investable assets, may not be representative of their generation over all.

Erin Lowry, a personal finance adviser and the author of “Broke Millennial,” said one reason boomer women may be more likely to view financial independence as essential for equality was that they have witnessed what can happen without it: Many were raised by mothers who were denied loans or credit cards in their names, she said.

Ruth Bader Ginsburg, as the director of the A.C.L.U.’s Women’s Rights Project in the 1970s, litigated a string of cases that paved the way for the Equal Credit Opportunity Act of 1974, which prohibited creditors from asking about sex, marital status or the use of birth control.

“I know a lot of millennial women who are feminists, liberated and whatever, who let their husbands handle all the finances,” Ms. Lowry said. “It’s very much still an archetype in heterosexual relationships.”

One woman, a graduate student in her 30s, said that when she got married several years ago, her husband made most of the money and handled the couple’s long-term finances. That meant he had more say than she did in decisions like where their daughter went to school and where they went on vacation, she said.

He began to physically abuse her, she said, but because she depended on him financially, she did not feel as if she could leave the relationship. It was only after friends encouraged her to set up a separate bank account and take other steps to take control of her financial life that she could leave.

“There’s a complacency that the world is equal, we’ve got it made, we can do anything we want, we’re going to have awesome partners who will be our equals,” said the woman, who spoke on the condition of anonymity because of a pending legal case against her husband and because she was concerned for her safety. It’s easy to think financial autonomy is not essential when it is, she added.

“It’s part and parcel of our daily independence,” she said, “which has to be constantly reaffirmed.”

Source: www.nytimes.com

Author: Jenny Gross


Women need to plan for challenging financial issues

Women need to plan for challenging financial issues

As a woman, I sometimes find myself not wanting to bother with financial planning, insurance and tax returns, just to name a few financial issues. I am married to a CPA, CFP® professional so this makes it easy for me to not get in the weeds on these matters.

However, I know I need to be as intelligent as I can be for many reasons. Many, many years ago, I felt I had no clue what insurance policies we had, what they covered, and what they paid out if and when. I even paid the bills but did not know any specifics. So my husband and I sat down and I forced myself to educate myself about our insurance. You hope you wake up to another day, but if something had happened to my husband, I had to have the knowledge to carry on and the insurance would have been a major start. Do you have the right insurance for your needs?

We have an older daughter and triplets who are four years younger. They are all “adulting” now, but when they were born, we knew they would be in college at the same time so we needed to plan ahead. We immediately started saving for their college educations and calculated this into our annual budget. Three graduated from college with no debt and some money left over and the fourth went out-of-state so her out-of-state tuition ate through all of her savings. But she had no debt. So from sound college planning, our children dodged the college debt bullet. Where are your college savings?

As baby boomers, we are entering “twilight years.” We stay active and healthy, but we have wills, power of attorneys, and directives to physicians and have made sure the beneficiaries are noted on our portfolio and bank accounts. I have to be prepared, as well as my husband, if something were to happen to one or both of us. As most, we have property and interests that we have the responsibility to maintain. We also want no surprises for our children such as no will that would require time and effort in the probate process, and potentially have our assets distributed in a way that we did not approve of. They live all over the country and do not have time for our financial negligence. Do you have a will and estate documents?

So, as a woman, as much as I would prefer to keep my head in the sand, I have financially enlightened myself. This makes me prepared for most things life throws my way so I can carry on. I hope women take charge of their finances, call a Certified Financial Planner™ professional since October is Financial Planning Month, and understand what it would take for them to carry on.

Phyllis Keller is the Chief Information Officer for KMH Wealth Management, LLC and Keller & Associates CPAs PLLC.

Source: www.victoriaadvocate.com

Author: Phyllis Keller


This Investing Advantage Could Be the Secret to Massive Wealth


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