Secrets of the Wealth Makers

Top Money Managers Reveal Their Investing Wisdom

McGraw-Hill, 2000

15 min read

10 take-aways

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What's inside?

If you’re singing, “If I were a rich man,” invest as you are told here and you’ll change your tune to “Happy Days Are Here Again.”

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"If I were a rich man," goes the song. Well, if you were, this is how you would invest. Michael F. Lane draws on the advice of top money managers and financial planners to help readers in five key areas: 1) wealth planning, 2) wealth accumulation, 3) wealth without tax, 4) wealth transfer and 5) wealth protection and preservation. The book is aimed at the individual investor with a relative lack of experience in the financial marketplace. The broad overview includes basics of planning your portfolio, E-trading, making investments more tax efficient (for U.S. investors) and estate planning. This solid guide emphasizes fundamentals, although sometimes the discussion becomes repetitious. And, when different advisers give contradictory advice, the diversity of opinion can seem confusing. Lane might have done more summarizing and synthesizing, but getAbstract recommends his solid book as a generally good guide for prospective and new investors who want a reason to sing.

Summary

Wealth: Goals and Methods

Every investor’s situation is different, and the more advisers you consult, the more different opinions you will hear. However, advisers also give consistent recommendations. The following advice on how to plan your investment strategy for the very best results comes from almost two-dozen top investors - some with more than 30 years in the investment business.

To begin, agree with your spouse or partner that you both want to build wealth, and are willing to sacrifice part of your everyday spending to do so. But don’t sacrifice more than you can afford, since you are both likely to come to resent penny pinching and, thus, to abandon your wealth-planning efforts.

Your goal should be to retire at the same standard of living you currently can afford, generally in your same tax bracket. To do this, create a well-diversified, economical portfolio that offers a tax advantage. Avoid making frequent changes and ignore dips in the market. Focus on the long-term results you hope to achieve - not on constant ups and downs. This way, you avoid becoming a "noise" investor who responds to the buzz of the market on a day-to-day basis. Instead, become...

About the Author

Michael F. Lane is president of the adviser resource division of AEGON Financial Services Group. He is a contributing editor to Personal Financial Planning, Investment Adviser, and has frequently been quoted in Barron’s, The New York Times and other financial publications. His previous books include Guaranteed Income for Life.

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M. L. 3 years ago

very good

Michael F. Lane