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Millionaire Handbook ___________________________________________
Millionaire Hand Book
Millionaire Handbook ___________________________________________
Millionaire Hand book - Robert Krishna
Millionaire Handbook ___________________________________________
Heartfelt gratitude to my father who nurtured the inquisitiveness and creativity in me. Grateful to my wife and two children who were constant inspiration for what I do. So many authors whom I have read and followed in all these years.
Millionaire Handbook ___________________________________________
Table of Contents
Chapter 0 - Introduction _________________ 5 Chapter 1 – The Novice __________________ 7 Chapter 2 – The Entrepreneur____________ 10 Chapter 3 – The Investor ________________ 17 Chapter 4 – The Inventor ________________ 22 Chapter 5 – The Millionaire______________ 24 Chapter 6 - Memorable Quotes ___________ 34 Chapter 7 – Terms and definition _________ 39
Markets _______________________________ 48
Chapter 8 – Other channels ______________ 51
Blogs: _________________________________ 51 DVDs:_________________________________ 54 Seminars/Events: _______________________ 55 TV Shows: _____________________________ 56
Appendix A ___________________________ 57 Index ________________________________ 58
Millionaire Handbook ___________________________________________ Chapter 0 - Introduction The journey started with Robert Kiyosaki books which made me think that anybody could become a millionaire. In a stretch I completed all of his books and was trying to find other books and information on how to become wealthy. Along the course of two years I started compiling my reading list and making notes about the books. The knowledge thus acquired created a tremendous impact in my life. Suddenly, my life turned for the better and good things started happening. Much eluding promotion came on my way and I started accumulating wealth from different ways. Great people came into my life and changed its course to an entirely different perspective. I follow them all through my day to day activities and a thought occurred to me, why not share what I have with the millions of people around the world. This book is meant to be a guide that you will go back and refer and use as and when the need arises. I intend to give updates to the book as new knowledge expands. This book is intended as a match to light up the ideas and thoughts in your mind to think rich and become a millionaire. There are no shortcuts and some steps are easy and some hard. It is for you to understand, register and follow them to enhance the quality and live a financially free life. It is not sufficient to read the book and think that you will be rich but you need to follow the
6 .Millionaire Handbook ___________________________________________ recommendations of the authors who have practiced and been successful in their own fields. Wishing you all the luck and blessing needed to be a millionaire. I would strongly encourage you to consider the steps outlined in their books and reach your goals.
g. 2) One minute millionaire – Robert Allen et al . The story is about a person who makes a million dollars within a specified period of time.Millionaire Handbook ___________________________________________ Chapter 1 – The Novice 1) Rich Dad Poor Dad – Robert Kiyosaki . The book provided good guidance for building wealth. Rich consider home as a liability whereas the poor consider it as an asset. The stress is on “Pay yourself first”. For e. This provided the big spark that put me in the right perspective about money and assets. Clanson - The author talks about a story of a man who becomes rich by following simple rules for savings and expenditure. It highlights the importance of saving and gives you a 7 .A compelling story and a game plan for becoming a millionaire . 3) Richest man in Babylon – George S.An Excellent book to start with and it shows the way how the rich think against the poor. It proves the adage “What men have done a man can do” Must read and good inspiration.
Conwell shows us how to identify the riches and opportunity that lie all around us. Reactions vary from quick adjustment to waiting for the situation to change by itself to suit their needs. 8 . especially at work. The story is about adjusting attitudes toward change in life. 5) Who moved my cheese? .A brief tale of two mice and two humans who live in a maze and one day are faced with change: someone moves their cheese.Millionaire Handbook ___________________________________________ game plan about how to solve your credit problems. Many people search their entire life for opportunity never realizing that everything they need to succeed is already within their reach if only they recognized it. 4) Acres of Diamonds – Russell H Conwell .In Acres of Diamonds Russell H.Spencer Johnson An Amazing way to Deal with Change in your work and in your life .
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– Michael E. to learn the essential Business functions and how to manage them. 2. How to pinpoint problem areas. Should be held as a reference handy for quick lookup. The story of business basics for beginning and experienced business owners.Millionaire Handbook ___________________________________________ Chapter 2 – The Entrepreneur 6) E-Myth Mastery: The Seven essential for the Entrepreneurs to be. Gerber – Must read Bradley J Sugars - Entrepreneur Reveals the 6 critical steps to Business success Publisher – Put yourself in the hands of the Business Coach-and run your business like a champion. You will learn: 1. It follows the story of a small business owner and how they transform their business by the coaching of Mike. and measure your progress 10 . develop winning strategies. 7) The Business coach: A Millionaire – disciplines for building a world class company.
Millionaire Handbook ___________________________________________ 3. Worksheets to set savings goals and meet them. Charts and checklists for paying down debt while you save 3. The secrets to true financial freedom by building a successful company that runs itself. no matter how much you make 4. Five questions that determines 90 percent certainty if you will become an automatic millionaire 2. Details on where to invest. what pone calls to make. The one crucial step that guarantees your financial plan will succeed 6. A game plan for paying off mortgages early 5. and exactly what to say 11 . 8) Automatic Millionaire Workbook: A - Personalized plan to live and finish Rich by David Bach Publisher – The workbook features: 1.
Monitor unsold listings to maximize profitability 3. 9) eBay Millionaire or Bust: Hidden - Strategies that Maximize profits and create wealth by Corey Kossack Publisher – Rather than teaching you how to simply become a Power seller. Alter your business processes to save money 12 . Understand your profit margins 2. Negotiate with suppliers 5. Use the profit builder software to maximize profits and minimize risk by making the right choices for listing features and formats 4. this book offers overlooked strategies that will make you a profitable Power seller. You will learn from one of eBay’s top sellers how to: 1.Millionaire Handbook ___________________________________________ when automating your financial future. keep costs low during start-up and growth 6.
. INC. Christine Clifford. Martin Ruben. The art of selling yourself – - Harry Beckwith. YOU. and comfortably. Lisa DeSimone Written in a personable and homespun style. the most important thing you need to be able to sell is YOU whether it's in a job interview. 10) You. It reveals the strategies necessary for moving beyond just job security to 13 . or during a business negotiation. confidently. What veteran sales and marketing experts Harry and Christine Beckwith understand is that.Millionaire Handbook ___________________________________________ 7. to succeed in life. Convert cost savings to investments that grow your net worth. Utilize special tax breaks for business owners 8. 11) Cash flow Quadrant – Robert Kiyosaki . Inc. The Beckwiths provide a treasure trove of insights and tips to help you present yourself credibly. a social gathering. offers doses of humor and pithy knowledge to anyone who wants to thrive in the increasingly competitive business world.The Cash flow Quadrant is the followup guide to finding the financial fast track that best works for you.
only to return to a bank account 50% larger than before you left How blue-chip escape artists travel the world without quitting their jobs How to eliminate 50% of your work in 48 hours using the principles of littleknown European economists How to train your boss to value performance over presence. 12) The 4-Hour Workweek: Escape 9-5.Millionaire Handbook ___________________________________________ greater financial security by generating wealth from four selective financial quadrants. Live Anywhere. or kill your job (or company) if it's beyond repair How to trade a long-haul career for short work bursts and frequent “miniretirements” - - - - 14 . as he teaches you: How to outsource your life and do whatever you want for a year. popular guest lecturer in entrepreneurship at Princeton University. and Join the New Rich by Timothy Ferriss - Join Tim Ferriss.
- 15 .Millionaire Handbook ___________________________________________ What automated cash-flow "muses" are and how to create one in 2-4 weeks How to cultivate selective ignorance— and create time—with a lowinformation diet Management secrets of Remote Control CEOs The crucial difference between absolute and relative income How to get free housing worldwide and airfare at 50-80% off How to fill the void and creating meaning after removing work and the office.
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automatic. and boring.S.Millionaire Handbook ___________________________________________ Chapter 3 – The Investor 13) Rich Dad's Guide to Investing: What the Rich Invest in. A plan is "mechanical. the father of his best friend) tells him the simplest analogy is the game Monopoly: buy four green houses. if for no other reason than U. but it takes a different view of investing than most people have: it takes a plan to be a successful investor. or collecting "assets" that bring in no cash and are thus more akin to liabilities. The way most people invest. tax and securities laws allow them to invest in ways that keep us from catching up to them." he writes. 17 . And a plan is more than simply buying and selling." a formula for success that has worked historically for most of those who've used it. Kiyosaki believes it's possible for anyone to move up into that 10 percent. That's why 90 percent of all corporate shares of stock are owned by 10 percent of the people. "they might as well be pushing a wheelbarrow in a circle. That the Poor and the Middle Class Do Not! - The rich are different from the rest of us. Kiyosaki’s "rich dad" (actually.
" which helps protect investors against the areas of possible substantial error and teaches them to develop long-term strategies with which they will be comfortable down the road. due to his timeless philosophy of "value investing. 2) Know what it's 18 . 14) The Intelligent Investor: A Book of - Practical Counsel – Benjamin Graham The classic bestseller by Benjamin Graham. and repeat until you become rich. 15) Rule #1: The Simple Strategy for - Successful Investing in Only 15 Minutes a Week! – Phil Town Phil Town’s strategies are really simple. Since its original publication in 1949. He provides simple rules to evaluate the robustness of the stock and if you follow you will be able identify and invest in the stocks. perhaps the greatest investment advisor of the 20th century. The Intelligent Investor has taught and inspired hundreds of thousands of people worldwide.Millionaire Handbook ___________________________________________ trade them for one red hotel. Town's Rule #1 formula—"1) Find a wonderful business. Benjamin Graham's book has remained the most respected guide to investing.
mutual funds. and more. 3) Buy it at 50 percent off. what to do when 19 . bonds. Updated 3rd Edition: David Chilton Everyone's Commonsense Guide to Becoming Financially Independent by David Chilton . The book covers the full range of small investing—from selecting a bank to saving for college and retirement to making sense of financial pages. treasuries. 18) How to Invest $50-$5. 4) Repeat until very rich" 16) The new Rules of Money: 88 simple - strategies for Financial success today – Ric Edelman The author answers the commonly asked questions like “Should you save money in your child’s name? Is paying off your home mortgage a good idea? Should you invest in index funds? 17) The Wealthy Barber.Best self help book available to become financially independent.Millionaire Handbook ___________________________________________ worth as a business. Stepby-step instructions guide even the most inexperienced investor through the maze of stocks. with new sections on how to recognize a swindle or scam.000 by Nancy Dunnan - The author has been a trusted adviser to investors for twenty years.
ten sources of instant cash. 20 .Millionaire Handbook ___________________________________________ fired. This low-risk. high-value tips are perfect for every investor. and the top 25 online financial Web sites.
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Millionaire Handbook ___________________________________________ Chapter 4 – The Inventor 19) Mommy Millionaire: How I turned My - Kitchen Table Idea into Million Dollars and How You Can. Merrick - 21) How to make Millions with Your ideas: An Brilliantly presents creative ideas for launching new products. Kennedy - A must read for pursuing your own ideas Author gives actionable tools and ideas Creating riches requires the discipline and approach outlined in this book Even though it is dated the book contains valuable knowledge for the millionaires to be. Entrepreneur’s Guide by Dan S. Too! By Kim Lavine Kim provides the tools you will need to create a fortune Developing and patenting an idea Making cold calls Get on QVC Working on a trade show Creating “Elevator pitch” Approaching the big retailers 20) Stand Alone. Essential book for the new inventors. 22 . Inventor! by Robert G.
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23) Secrets of the Millionaire Mind – T. Harv Eker - Eker’s claim to fame is that he took $2000 credit card load. turned it into a chain of 10 within two and half years and sold it in 1987 for a cool $1.6 million. 24 . Seven years to Seven Figures will give you the tools to increase your income. save wisely – and secure your financial future faster than you may have ever dreamed. get the highest possible returns on investments. Eker energy talk could motivate anybody to get up from their laziness and take action.Millionaire Handbook ___________________________________________ Chapter 5 – The Millionaire 22) Seven years to Seven Figures: The Fast- track plan to becoming a Millionaire – Michael Masterson - In this book self-made millionaire and renowned wealth coach Michael Masterson reveals the steps you can take to accumulate seven-figure wealth within seven years – or less. opened “one of the first fitness stores in North America”.
and choosing the “right” occupation. including living below their means. Stanley. being proficient in targeting marketing opportunities. and have the merest of luck. It’s evident that anyone can accumulate wealth. He also has the “Automatic millionaire Promise” – Which will say how much percentage 25 . if they are disciplined enough.Millionaire Handbook ___________________________________________ 24) The Millionaire next door: Surprising - secrets of America’s wealthy by Thomas J. William D Danko Explains the findings from their research into the key characteristics that explain how the elite clubs of millionaires have become “wealthy”. allocating funds efficiently in ways that build wealth. Focusing on those with a net worth of at least one million dollars their surprising results reveal fundamental qualities of this group that are diametrically opposed to today’s earnand-consume culture. determined to persevere. 25) The Automatic Millionaire: A Powerful One-step plan to live and finish Rich – David Bach - Bach recommends that we set aside 10% and 15% of gross income for savings equivalent of one hour’s worth of income every day. ignoring conspicuous consumption.
marketing and growing the business. challenges the common-myths with respect to 401ks. safe leverage. Recommends 401k. testing the sales potential and cash machine plan. pensions. 26) The millionaire maker’s guide to creating Cash machine for Life by Loral Langemeier. creating a business idea. - The book provides the step by step action plan for creating a cash machine by identifying your skills. Andrew - Andrew with his focus on the three miracles of Wealth accumulation: Miracle of Compound interest. miracle of tax-favored accumulation and miracle of positive. paying down ones’ mortgage and other forms of retirement planning. 28) Cracking the Millionaire Code: Your key to 26 enlightened wealth by Mark Victor Hanson and Robert G Allen The authors promote the idea that ultimate success is achieved through . 27) The last chance Millionaire: It’s not Too late to become wealthy by Douglas R. Also provides on tips of managing the team.Millionaire Handbook ___________________________________________ of their income they will start saving by a certain date.
Jay Papasan - Are you ready to become a millionaire Real estate investor? The author questions in the first line and goes on to describe the importance of the teacher for helping one achieve the dream of becoming a millionaire. Dave Jenks. The Five Lessons a millionaire Taught Me About Life and Wealth is 27 . and the Start code (finding right customers). figure out what you want to do and build wealth. Openshaw outlines how tapping your network through such actions as “redefining your Comfort Zone” and using your “Home Zone” for advice and allow you to get past your fears. the Angel Code (building right team). 30) The Millionaire Real Estate Investor by Gary Keller. the Prism code (finding the path to success).Millionaire Handbook ___________________________________________ four key wealth codes: The Destiny code (finding your place in universe). 29) The Millionaire Zone: Seven winning steps to a Seven-figure fortune by Jennifer Openshaw - Using many anecdotes and many entrepreneurs. 31) The 5 lessons a Millionaire Taught me by Richard Paul Evans - Easy to understand and simple to apply.
Thomas J. 34) The Maui Millionaires: David M Finkel Discover the secrets behind the world’s Most exclusive Wealth retreat and become Financially free 28 . and indulge wherever and whenever he can? Or does he resole his shoes. 33) The Instant Millionaire: A Tale of Wisdom and Wealth by Mark Fisher - Told by a millionaire .000 millionaires. This book will change your life – Publisher 32) The Millionaire Mind Paperback by Thomas J. turn off the air conditioning when leaves the house. here is a powerful Zen parable loaded with specific advice. take chic vacations. and spend a lot of time at home with close friends and family? Through his surveys of over 1.Millionaire Handbook ___________________________________________ one of the most powerful books ever written about money. Stanley PhD. Stanley - Who is the average millionaire ? Does he eat gourmet or fast food? Does he drive fancy cars. answers these questions and provides us with further insight into the thoughts and lives of this wealthy segment of the population in the millionaire Mind.
With this book you can skip the seminar while still mastering the five secrets of creating. 35) Mentored by a Millionaire: Master - strategies of Super Achievers by Steven K. maintaining. skills . and Make Money the way the wealthy do by Loral Langemeier - Publisher: There are only two things millionaire s have that you don’t. wealth and the knowledge to build wealth. Quit your job and start doing the things you love 29 . Regardless of your income. Scott Book is made up of fifteen mentoring sessions in which you will be mentored in strategies. Think.Millionaire Handbook ___________________________________________ Now you do not have to pay $30k to learn the five core wealth-building strategies that the Maui millionaire s use to build wealth. and sharing great wealth. 36) The Millionaire Maker: Act. But that’s all about change. and techniques used by super achievers who have become the world’s most successful men and women.and in as little as one year – the exclusive wealth-building method in The millionaire Maker can have you generating enough money to 1.
Control and then eliminate your debt no matter how much you owe 3. Find great investment properties 2. Readers get clear. Roger Dawson. substantially decreasing your tax burden 6. corporations. 37) The Weekend Millionaire’s Secret to Investing in Real Estate: How to become wealthy in your Spare time by Mike Summey. Live your life on your schedule 4. Roger Dawson Publisher: A Proven formula for making a killing in small real estate investments in all market conditions. Structure a win-win proposal 30 . Approach sellers 3. Engaging in Business ventures that generate passive income 5. step-by-step guidance on how to: 1. and partnerships to protect your assets and create a nonstop revenue stream. Forming trusts.Millionaire Handbook ___________________________________________ 2.
39) Internet Riches: The Simple Money- Making Secrets of Online Millionaires by Scott Fox Provides a powerful insight on creating wealth by starting online business. Must read if you want to know about the tactics that need to be used in handling the enemy. Get a proposal accepted—even with no money down and bad credit 5. Negotiate a transaction 6. 38) Missed Fortune 101: A starter kit to - becoming a Millionaire by Douglas R. Andrew Financial planning consultant Andrew explains how ordinary people can build significant wealth using strategies that are contrary to traditional approaches. Manage and maintain properties for increasing returns.Millionaire Handbook ___________________________________________ 4.many authors - . The book was 31 40) Art of War – Sun Tzu . He begins with an overview of legal methods for avoiding unnecessary taxation.
Millionaire Handbook ___________________________________________ written for the war but it makes sense for the common issues/problems. 32 .
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.Millionaire Handbook ___________________________________________ Chapter 6 . . you will be successful. If you love what you are doing. friends. but by the opposition he has encountered and the courage with which he has maintained the struggle against overwhelming odds. . . 34 . Happiness is the key to success.Memorable Quotes Success: Doing What You Love Success is not the key to happiness.Chin-Ning Chu Living Each Moment Life is a succession of moments.Barbara Bush Excelling in Multiple Areas of Your Life I believe that being successful means having a balance of success stories across the many areas of your life. and even strangers you meet along the way.Charles Lindbergh Treating People Well Never lose sight of the fact that the most important yardstick of your success will be how you treat other people — your family.Corita Kent Overcoming Obstacles Success is not measured by what a man accomplishes.Albert Schweitzer Following Your Own Path A successful life is one that is lived through understanding and pursuing one’s own path. . not chasing after the dreams of others. To live each one is to succeed. and co-workers.
To appreciate beauty. To earn the appreciation of honest critics and endure the betrayal of false friends. To win the respect of intelligent people and the affection of children.C. To leave the world a bit better. and who is conscious that he has done his best. even though the world may write him down as a failure. is a success. His heart withers if it does not answer another heart.Albert Pike Success is Many Things To laugh often and much. a garden patch or a redeemed social condition.Pearl S. . what we have done for others and the world remains and is immortal. . . Forbes Seeking and Finding Love The person who tries to live alone will not succeed as a human being. to find the best in others. B. His mind shrinks away if he hears only the echoes of his own thoughts and finds no other inspiration. whether by a healthy child.Millionaire Handbook ___________________________________________ You can’t truly be considered successful in your business life if your home life is in shambles.Zig Ziglar Doing Your Best The man who has done his level best. To know even one life has breathed easier because you 35 . Buck Leaving the World a Better Place What we have done for ourselves alone dies with us.
who thinks that by hoarding money he can somehow accumulate real power.Millionaire Handbook ___________________________________________ have lived. One victory for one loss. One is a millionaire . it makes me incapable of doing it. If I believe I cannot do something.Bessie Stanley Fools There are two fools in this world. In one hundred battles no danger. – Sun Tzu Men often become what they believe themselves to be. But when I believe I can. Not knowing the other and now knowing oneself. . and the other is the penniless reformer who thinks that if only he can take the money from one class and give it to another. – Henry Ford Knowing the other and knowing oneself. Not knowing the other and knowing oneself. This is to have succeeded. . then I acquire the ability to do it even if I didn't have it in the beginning. In every battle certain defeat. all the world’s ills will be cured.Benjamin Franklin 36 .” – Gandhi The difference between what we do and what we are capable of doing would suffice to solve most of the world's problems – Gandhi Do not squander time for that is the stuff life is made of.
That is my religion – George Bernard Shaw He was a multi-millionaire. Wanna know how he made all of his money? He designed the little diagrams that tell which way to put batteries in – Stephen Wright 37 . my dear.Millionaire Handbook ___________________________________________ My religion? Well. I am a millionaire.
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In laymen’s terms. 39 .1 Wikipedia states that Real Estate or immovable property is a legal term that encompasses land along with anything permanently affixed to the land. such as builds.Millionaire Handbook ___________________________________________ Chapter 7 – Terms and definition Real Estate: According to Webster’s Real estate means property in buildings and land.2 1031 Exchange: Known as Like Kind Exchange or Starker Tax Deferred Exchange is a transaction under US Law which specifies under section 1031 “No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held either for productive use in a trade or business or for investment”. since the taxpayer is merely exchanging one property for another property of a “like-kind” there is nothing received by the taxpayer that can be used to pay taxes with? All the gain is still locked up in real estate and so no gain or loss can be claimed. Money: Is any good or token that functions as a medium of exchange that is socially and legally accepted in payment for goods and services and in settlement of debts.
Millionaire: Is a individual who resides in a household whose net worth or wealth exceeds one million units of any currency. Business: Social science of managing people to organize and maintain collective productivity toward accomplishing particular creative and productive goals. usually to generate profit. Equity: Value of ownership interest in property Short sale: Is a way to profit from the decline in price of a security. A person or organization which holds at least partial share of stocks is called shareholder. this is called shareholders’ equity and may be referred to as book value. such as stock or bond. Investor: Any party that makes investment. 40 . Net worth is stated for a particular point of time.Millionaire Handbook ___________________________________________ Stock: Stock is the capital raised by corporation or joint-stock company through the issuance and distribution of shares. For company. Net Worth/Net Assets: Total assets minus total liabilities of an individual or a company.
Entrepreneur: is a person who undertakes and operates a new enterprise or venture and assumes some accountability for the inherent risks. marketing and servicing of products or services over electronic systems such as internet and other computer networks. selling. buying. It has CEO’s letter to the shareholders and financial information. Annual Report: Can you found on most companies websites and it is the annual report to the shareholders about the company’s operations during the past year.Millionaire Handbook ___________________________________________ E-Commerce: marketplace on the internet. Cash flow: accounting term that refers to the amounts of cash being received and spent by a business during a defined period of time. 41 . sometimes tied to a specific project. Primarily of the distributing. bonds. Mutual fund: form of collective investment that pools money from many investors and invests their money in stocks. Real estate agent/broker: party who acts as an intermediary between sellers and buyers of real estate and attempts to find sellers who wish to sell and buyers who wish to buy. short-term money market instruments and other securities.
Ask: The price asked by a seller. calculated by total assets minus intangible assets (patents. that states the interest rate (coupon rate) that will be paid and when the loaned funds are to be returned (maturity date). you buy US stock in the United States and turn around and sell that stock on a foreign exchange where it’s also selling at a different price owing to the lapse in the exchange rate’s adjustment. Bond: A debt investment.S. It’s what the business is worth if you shut it down. or bond. short for treasury bonds or bills. These are often called T-bonds or T-bills. For example. which borrows from you for a defined period of time at a specified interest rate. 42 . The government issues you a certificate. Bid: The price offered by a buyer. It exploits the difference between market price and takeover price. Government. Book value: The net asset value of a company. Bear Market: A market that’s going down.Millionaire Handbook ___________________________________________ Arbitrage: Simultaneous buying and selling stocks in order to profit from a differential in the price – usually as a result of the stock trading on different exchanges. as in your loaning money to the U. goodwill) and liabilities.
the difference in what you paid to purchase that asset and what you sell it for. Examples include grain. gold. Commodity: A bulk good that’s traded on an exchange or in the cash market. Dividend: A distribution of cash. coffee. Dollar Cost Averaging (DCA): The practice of buying a certain number of shares in a given stock 43 . Bull Market: A Market that’s going up. Capital: Money or dollars Capital gains tax: A tax on the increase in the value of an asset. Dividends are usually quoted per share. Long-term capital gains are usually taxed at a lower rate than regular income. if you sell stocks six months after you purchased them and take profits. based its earnings. silver and natural gas. beef. to its shareholders. fruit. A Capital gain may be short-term or long-term. So. stock. oats. you’ll be taxed at a higher rate than if you sell them one year and one day after you originally brought them. oil.Millionaire Handbook ___________________________________________ Broker: An organization that’s licensed to trade stocks for clients. or property by a company.
Fund Manager: The person responsible for investing Fundamental analysis: Evaluating a business by looking at its financial information.Millionaire Handbook ___________________________________________ periodically. 44 . Earnings per share are the profit from a company allocated to each share of stock held by shareholders. but trades like a stock on an exchange. so you buy a certain dollar amount of shares regardless of a price per share. or futures are traded. A security that tracks an index and represents a basket of stocks like an index fund. options. thus experiencing price changes throughout the day as its bought and sold. In long sideways markets DCA will not reduce the risk of a zero rate of return. commodities. For Rule #1 investors. This allegedly helps reduce their risk of investing a large amount in a single stock at the wrong time. so DCA isn’t necessary. fund’s money. ETF: Exchange traded funds. Exchange: A market where securities. however. Earnings: The net income or profit of a company during a given period. we already know what price we are willing to pay. You buy more shares when the prices are low and fewer shares when the prices are high.
and leverage. short selling. non-public information about a certain business. Insider trading: The buying and selling of stock by people who have access to private i.e. such as S&P 500. The system of rules for certified accountants to create financial statements for a business. Index: An imaginary portfolio of securities representing a particular market or a portion of it. and is usually limited by how many can invest in it. and is the most commonly used benchmark for the stock market. in order to mirror its performance.Millionaire Handbook ___________________________________________ GAAP: Generally Accepted Accounting Principles. The S&P 500 is one of the world’s best-known indexes. Managers of hedge funds generally use sophisticated strategies involving options. Hedge fund: A special type of fund that’s usually limited by how many can invest in it. Hedge funds are meant to get investors a maximum rate of return. Index Fund: A portfolio of investments that are weighted the same as a stock-exchange index. 45 . and as such. these portfolios comprise both “safe” and risky stocks. and is usually not regulated.
An IRA is a personal savings plan that provides income tax advantages to individuals saving money for retirement purposes.000 for married couples. your Adjusted Gross Income must be under $95. where the employer can put up to 15% of your compensation into a special IRA account.Millionaire Handbook ___________________________________________ Intrinsic Value: The current value of a business based on its future surplus cash flow. IRA: Individual retirement account. They are sometimes used instead of Keogh retirement plans because they have fewer administrative and tax filing requirements. SEP IRA: This is an employer established and funded Simplified IRA. but the Roth IRA earnings accumulate tax-free and remain tax-free upon distribution. Roth IRA: Contributions are NOT deductible when the funds are contributed.000 for singles and $150. To be eligible to contribute. Sole proprietors may establish these plans for their own benefit. You cannot withdraw your funds within the first 5 years after the establishment of the Roth without a penalty. as of December 2000. 46 . An IRA is an INDIVIDUAL RETIREMENT ACCOUNT. Given that this 5-year testing period can successfully be addressed by proper tax planning. the establishment and at least partial funding of a Roth IRA account should be on the discussion list of the financial advisor of every taxpayer who qualifies to open such a plan.
Millionaire Handbook ___________________________________________ Limit order: An order to a brokerage to buy a stock at a price not to exceed a certain amount. sells like a stock on the major exchanges and invests in real estate directly. a security that . at a specified price within a specified time. either through properties or mortgages. Market order: An order to a brokerage to buy or sell a stock for whatever market price is either at that moment or. Margin: A loan by a brokerage of 50 percent of the purchase price of a stock. Money Market account: A type of savings account that has the competitive rate of interest. and usually you has to meet minimum balance requirements to get the highest rate – or keep the funds in the account for a certain period of time. Options are typically for the advanced investor. Options: The privilege to buy or sell an asset. such as stock. 47 REIT’s: Real estate investment trust. Order: A contract between you and your brokerage that specifies what you want to buy or sell. if the market is closed the next day when it opens.
Markets: S&P 500: An index of 500 stocks chosen for certain Russell 2000: An index measuring the performance of the 2. Ticker symbols are three letters. and industry group representation. Ticker tape: The scrolling stock symbols and prices you see crawling along the bottom of the CNBC screen during market hours. ROI: Return on investment – The percentage return Sector fund: A type of mutual fund that invests in a particular industry or sector of the economy. Trend: A direction that’s discerned by trading data. and supervising the stock exchange and its member activities. which is made up of 3000 of the biggest US Stocks NYSE: The New York Stock Exchange located physically on Wall Street in New York City. liquidity.000 smallest companies in the Russell 3000 Index. is actually a corporation. factors. such as market size. setting policies.Millionaire Handbook ___________________________________________ you’ve made on your investment. 48 . operated by a board of directors and is responsible for listing securities.
Millionaire Handbook ___________________________________________ in 1971. it handles 10 percent of all securities traded in United States. and traditionally home to many high-tech stocks Ticker symbols are four letters. Page intentionally left blank for additional references 49 . created Dow Jones Industrial Average: A price-weighted average of 30 significant stocks traded on the NYSE and the NASDAQ. American Stock Exchange (AMEX): The third- largest stock exchange by trading volume – after NYSE and NASDAQ in the US located in New York City. NASDAQ: An electronically traded exchange.
Millionaire Handbook ___________________________________________ 50 .
stevepavlina.com/blog b.Millionaire Handbook ___________________________________________ Chapter 8 – Other channels Blogs: 1) Millionaire now a. URL: http://millionairenowbook. 51 .c om/ b. She conducts weekend workshops or getaways for sparking creativity in the participants. URL: http://christinekane. metals and other commodities. blogger and personal development coach. Larry Nusabam tracks the trends in Stock exchange. URL: http://www. 3) Steve Pavlina a. 2) Katherine Kane a.blogspot. Also has a Million dollar experiment. c.com/blog/ b. He constantly publishes some important statistics which is essential for your portfolio tracking. Musician. c. Personal development blog where he teaches discipline and other core skills needed to become a millionaire.
My Yahoo 52 . Health.com/ b. Has a series titled “How to think like Warren Buffet?” d.blogmaverick. Productivity. 8) To read all these consider using a. 6) Seth Godin a. The guru of web marketing and must read.com/seths_ blog/ b. Must read to understand the millionaire thoughts and insights 5) Zen Personal Finance a.com/blog/ b. Money. Personal finance blog which highlights the importance of saving money and accumulating wealth c. Blog written by various authors on the subjects such as Motivation. URL: http://sethgodin. URL: http://www. Education and Self Improvement among other subjects.pickthebrain.com/ b.typepad. 7) Pick the Brain a.Millionaire Handbook ___________________________________________ 4) Blog Maverick a. URL: http://www. URL: http://www.financeweblog.
com/ b. URL: http://my.google. URL: http://www.Millionaire Handbook ___________________________________________ i.com/read er/view/?hl=en&tab=wy#ov erview-page 53 .yahoo. Google Reader i.
Millionaire Handbook ___________________________________________ DVDs: 1) Secret – Powerful motivation video 2) Millionaire Inside – A compilation of CNBC TV shows in the form of the DVD in which Millionaires answer the questions posed by the Audience 3) Big Idea – A compilation of CNBC TV shows in the form of the DVD in which Donny Deutsch 54 .
Millionaire Handbook ___________________________________________ Seminars/Events: 1) Real estate investing 2) Cash flow games 3) James Ray 4) SCORE 55 .
Millionaire Handbook ___________________________________________ TV Shows: 1) 2) 3) 4) Who wants to be a millionaire? Big Idea Mad Money Millionaire Inside 56 .
collectibles. CDs): Retirement accounts (401k. furnishings: Other: Total Assets: Debts: Mortgage(s): Home Equity load: Student Loan: Credit cards: Other Total Debts: Net worth = Total Assets – Total Debt 57 . jewelry. IRAs): Variable annuities Value of primary residence: Second/vacation property: Art.Millionaire Handbook ___________________________________________ Appendix A Calculate net worth using the worksheet: Assets: Stocks and stock funds: Bonds and bond funds: Cash (Savings a/cs.
54 Earnings. 45 Entrepreneur. 47 Corey Kossack. 56 Bond. 44 Capital. 46 Book value. 46 Bear Market. 14 Dan S. 31 Equity. 46 Ask. 46 Benjamin Graham. 12. 63 ETF. 13. 48 Douglas R. 12. 30. 45. 25 David Bach. 45 Entrepreneurs. 49 . 44. 47 Business. 54 Fund Manager. 47 Bull Market. 47 Bradley J Sugars. 16. Kennedy. 29 David Chilton. 35 Bid. 33 Dividend. 49 George S. 49 GAAP. 49. 22 58 Dow Jones Industrial Average. 34. 48 Exchange. 12 Broker. 43. 8 Hedge fund. 48 E-Commerce. 53. 43 Annual Report. 21 David M Finkel. 48. 48 Dollar Cost Averaging. 47 Cash flow. 60 Commodity. Clanson. 25. 46 Arbitrage. 49 Fundamental analysis. 12. Andrew.Millionaire Handbook ___________________________________________ Index 1031 Exchange. 46 Blogs.
25 Robert Kiyosaki. 52 Phil Town. 33 Stock. 5. 54 NYSE.Millionaire Handbook ___________________________________________ Index. 44 Money. 31. 34 NASDAQ. 8. 56 59 . 30. 43 REIT. 53 Short sale. 52 Ric Edelman. 43. 22. 47. 53 Scott Fox. 36. 32. 12 Robert Allen. 51 Mark Fisher. 6. 54. 22 Richard Paul Evans. 25 Limit order. 52 Order. 44. 41. 33. 26. 35. 28 millionaire. 31. 8 Robert G. 20 Michael Masterson. 20. 52. 50 Intrinsic Value. 53 Russell H Conwell. 54 Options. 53. 32 Margin. 56. 9 S&P 500. 33. 29. 28. 51 Loral Langemeier. 50. 31. 34. 57 ROI. 44. 21 Real Estate. 13. 50. 51 Michael E. 40. 53. 51 Jennifer Openshaw. 57. 50 Investor. 61 Mutual fund. 50. Merrick. 31 Kim Lavine. 41 Nancy Dunnan. Scott. 21. 52 Russell 2000. 53. Gerber. 8. 64 Insider trading. 9 Steven K. 22 Spencer Johnson. 45 IRA. 33 Market order. 5. 16. 36 Sector fund.
29.Millionaire Handbook ___________________________________________ T. 16 Trend. Stanley. 32 Ticker tape. Harv Eker. 53 60 . 28 Thomas J. 53 Timothy Ferriss.
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