Bila Vrana/BILA_VRANA.iso/004A/LWMD338.ZIP/GETRICHD.WWO

Text File | 1996-01-01 | 10KB | 224 lines

                          LIFETIME WEALTH MANAGEMENT

                                    With

                         HOW TO GET RICH AND STAY RICH

                Investing made simple, effective and worry free

                            by WILLIAM W. ODLUM

                          105, 35 Ormskirk Avenue

                         Toronto, Ontario, M6S 1A8

 How to Get Rich and Stay Rich Document (c) 1992 - 1996, Wm .W. Odlum.

 Lifetime Wealth Management Software (c) 1992 - 1996, Wm. W. Odlum

 All rights reserved.

 Non-registered users are granted a limited license to use the above
 mentioned software and document on a 30 day trial basis. Use, except for
 this limited purpose, requires registration.

 Use of non-registered copies by any person, business or agency is
 strictly prohibited.

 No user may modify either the document or software in any way whatsoever.

                             GETTING STARTED.

 Since this is a 'Try before you Buy' copy of the program the 'How to Get
 Rich and Stay Rich' document is not available. I will not to share the
 secrets of successful investing until registration.

 The 'How to Get Rich and Stay Rich' document consists of easy to read and
 understand investment advice - shows step by step how to set your
 financial goal and set up a savings plan - most important of all -
 explains how and where to Invest your Savings for the greatest gain
 consistent with safety of capital.

                               TRACK RECORD.

 I can tell you that the simple, worry free, Investment strategies I will
 share with you have worked for me.

 Initially it took a while to devise a winning strategy and from then on I
 have spent only 2 hours a month on my investments. By investing a small
 percentage of my salary each year, within a few years I had accumulated
 enough money to give me an Income/Growth amount each year that was greater
 than my salary. I then retired, which was 13 years ago. Despite the fact
 that during this period we experienced one of the worst recessions in
 history, I was able to continue to withdraw the necessary money each year
 to maintain my lifestyle and today my Net Worth is greater than ever in
 real purchasing power.

 Apart from the financial freedom of not having to work for a living, my
 wife and I have had the leisure time to pursue all the personal interests
 that are important to us.

                                  HAZARDS.

 It saddens me to see people, young and old, out of work today through
 downsizing, changing technology, or bankruptcy in the workplace. With no
 savings they are forced to depend on Unemployment or Welfare benefits
 until they get another job.

 What happened to these people, well educated with good jobs, living in the
 richest society on earth ?.

 They put their faith in their companies to provide a pension plan and a
 well paying job for their future working life. They did not realize that
 in today's world a person will be in and out of many jobs and face career
 changes during their working life.

 They did not take care of their own financial future by setting aside a
 small percentage of their earnings, while working, to cushion the
 inevitable layoffs and awful trauma of losing everything they have worked
 for due to lack of a paycheck.

 However, it is never too late to start saving to build a secure,
 independent financial future, dependent on neither companies nor
 governments.

 Many, to whom I have spoken, that do make the effort to save for that
 future, seem doomed to repeat all the mistakes of the beginning investor
 by trying to reinvent the wheel, instead of building on the knowledge of
 successful investors.

 As a result they end up wasting their money on commissions/fees and lose
 compound growth by investing in slow growth companies which they equate
 with safety. I see slow growth as eventually turning into no growth due
 to incompetent or complacent management.

 They do not seem to understand that if their investment is not at least
 doubling every four years that indirectly they have lost and will continue
 to lose the potential compounded gains from the money invested.

                          WHAT THE FUTURE HOLDS.

 The recession of 1990-94 is over and with costs under control we are
 entering a new phase of solid, sustainable growth in the U. S. A. and
 Canada that will be very rewarding to those who get in at the start.

 Just as the Personal Computer changed the way the whole world does
 business in the short period of 15 years, there are new technologies and
 products coming out of North American research centers and laboratories
 which will lead to even greater change in our lives and with it more jobs
 and prosperity.

 Biotechnology, Environment Pollution Control, Alternative Energy Sources,
 Space based Communications Systems, Fibre Optics, Transportation, Multi-
 Media, Health Care and the Information Superhighway are just some of the
 many areas that will bring about great change and growth.

 The problem is to pick the winners. For example, in the eighty's we had
 hundreds of companies created in the personal computer hardware and
 software fields.

 Most fell by the wayside leaving only a dozen giants, but look at the
 rewards of choosing winners.

 To name three, Intel, Apple and Microsoft, which made their founders and
 shareholders extremely wealthy in the last 12 years.

 The founder of Microsoft has a personal wealth of 7 billion making him the
 richest man in the world.

 It is not just the developers of new technology but the users of this
 technology in their businesses who also benefit. A few examples, Wal-Mart
 in Merchandising, Taco Bell in Fast Foods, Chrysler in Transportation and
 so on.

 I'm told it cannot be done today because of high taxes and low wage
 competition from third world countries. This is nonsense.

 The U. S. A. has highly educated citizens, with over half of the world's
 Scientists and Engineers.

 While third world labor may assemble goods more cheaply than we, I can't
 see them compete with those unraveling the secrets of the Atom or DNA from
 which future technology and jobs are going to come.

 The latest figures show that Retail sales, Factory orders and Corporate
 profits are moving up while unemployment is coming down.
 For instance 90% of all Automobiles sold in North America during the 12
 months of 1994 were built here!. Imports were away down at 10%.

 1994 saw the start of the present bull market that will continue to grow
 slowly but surely for at least the next six years. With a lot of money to
 be made by the knowledgeable and lost by the gullible.

                               CONCLUSION.

 To be an Owner or a Lender ??. Most people take the safe approach to
 investing by putting their money in Treasury Bills, Bonds or other debt
 instruments knowing that they will receive a specified annual interest and
 be able to redeem their investment at full face value on the redemption
 date.

 Others invest in equity, such as share ownership in companies, with no
 guarantee of dividends or even getting back the price that they paid for
 their shares.

 However, studies show that over the past 60 years the return on Treasury
 Bills, bonds etc. has averaged out at 3.5% per year.

 Over the same period an investment spread over all the common stocks
 listed on the New York Stock exchange shows a return of 7% including
 dividends and capital gain. This includes the good, bad and indifferent
 companies.

 The lender just managed to keep up with inflation while the owner showed a
 gain over inflation of 3.5%.

 I will show you how to weed out the bad and indifferent stocks and choose
 the growth stocks which will on average give a return of greater than 15%
 each year.

 Check out on the Planning your Savings calculator the importance of
 compounding. For instance Investing $1,000.00 each year for 25 years
 compounded at 6% grew to $58,156.00 but at 20% the same Investment grew to