Wealth Beyond Wall Street Review

Wealth Beyond Wall Street

Wealth Beyond Wall Street by Brett Kitchen and Ethan Kap is a well-written, quick read about the power of several wealth-building strategies. The premise is how to build wealth, safely, outside of Wall Street.

Kill the Status Quo

Wealth Beyond Wall Street gets right to the point in telling you what it’s about – challenging conventional “financial wisdom” that clearly is not working for most Americans:

  • Diversify with mutual funds
  • Max out 401(k) contributions
  • Keep a high credit score and shop for low interest rates
  • Buy term and invest the difference
  • Put your money in the market to get a good rate of return
  • Defer taxes until later

In fact, this is where the above strategies have gotten the average American:

  • Half of workers 55-64 have less than $88,0000 in their retirement accounts
  • Trillions have evaporated from 401(k) accounts
  • 71% of those aged 45-64 worry about having enough money in retirement
Those who grow wealthy outside the stock market roller coaster are building their house on a solid foundation. Contractors don’t put buildings on foundations of clay or sand. They use concrete. Why then would we be any less careful with our entire financial future?
— Wealth Beyond Wall Street

Defeat the Enemies of Wealth

In subsequent chapters, you learn about enemies of wealth and read some eye-opening facts about each.

1. Market loss

  • “Average” rates of return can be far from accurate!
  • The financial gurus in the media are often wrong or don’t practice what they preach

2. Taxation

  • In addition to your income tax of up to 20-30% each pay period, you also face additional taxes for nearly every transaction you make
  • Tax deferred plans like your 401(k) can actually cost you more in taxes in the long run

3. Interest

  • Average Americans can pay up to 34% of their after-tax income in interest
  • How to recover most of the money that you pay in interest and keep it in your own pocket
The 401(k) represents an implicit promise to middle-class Americans that they can live off the income they receive from stock ownership, just like the rich do. It is a promise impossible to fulfill; it is the great 401(k) hoax.
— William Wolman and Anne Colamosca

 

Financing Yourself to Wealth

Wealth Beyond Wall Street explains how you can recapture the  interest and principal that you are currently paying for cars, credit cards, and loans and put it back in your pocket. It takes some patience and diligence to get started, but once you’ve become your own bank, you start to gather some real momentum in your journey to becoming financial independent.

The best part about becoming your own source of financing is that you’ll never again be at the lender’s mercy, worrying about credit scores and debt ratios. You will be able to approve yourself!

Supercharging Your Plan

In Chapter 10, the authors explain a powerful strategy called Indexing, where the interest earned on your money is tied to the performance of a index like the S&P 500, but you are protected from market losses. In other words, you get to participate in market gains, but you never participate in market losses. This chapter is on of the most important aspects of the book. The Indexing Strategy is one you’ll want to definitely learn about – especially since Wall Street doesn’t want you to know!

Real-life Examples

Finally, you’ll read about some real life examples of people who have successfully put these strategies to good use. The book concludes with profiles of “normal” people as well as the rich and famous. Notably, you’ll learn about Walt Disney, Ray Kroc (McDonald’s), J.C. Penny, and Doris Christopher (The Pampered Chef).

Interested?

If you would like additional information about this book and the strategies that it explains, please get in touch. As qualified Wealth Beyond Wall Street advisors, we can work alongside you to determine if these approaches might be a good fit for your particular situation.

A Well-rounded Approach

We utilize several wealth-building strategies, not just Indexing. So unlike insurance-only advisors only offering one or two main products, we have a more balanced approach that can also keep you invested in the stock market as well.

Every client is different. If you are reading this and are concerned about market loss and risk, you owe it to yourself to take advantage of our free portfolio risk analysis and have short conversation to see if we can help.

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