The Way to Wealth
Ben Franklin is famous for giving advice to aspiring entrepreneurs on ways to create and maintain a profitable business.
What most people forget is that Franklin was also a successful investor after he retired from his printing business at the young age of 42. And despite war and numerous financial setbacks, he died a very wealthy man.
Franklin's way to wealth included building his investment retirement portfolio through saving, avoiding debt, placing well-collateralized loans (bonds) and investing in rental properties.
So how did Franklin manage his money?
The Way to Wealth Rule #1: Be an Optimistic Investor
Franklin ignored the doomsayers and profited from his prediction that America was destined to be a great, prosperous nation. An incurable optimist, Franklin was always bullish on America, and life in general. "The United States," he said, "is an immense territory, favored by nature with all the advantages of climate, soil, great navigable rivers and lakes... destined to become a great country, populous and mighty."
The Way to Wealth Rule #2: Beware of "Sure Deals"
Limit your speculative opportunities, so as not to jeopardize your entire portfolio with speculations that promise "guaranteed" profits. You are bound to be misled and overly optimistic about the risk involved.
The Way to Wealth Rule #3: How to Handle Financial Setbacks
Diversify your holdings and limit your risks. Franklin made it a point of having a wide variety of income sources so that a loss in one would not destroy his entire portfolio. In addition to earning income from his roles as minister and postmaster, he also maintained seven or eight rental properties; earned interest-bearing bank accounts in Philadelphia, New York, London and Paris; invested in common stocks such as the Bank of North America, which paid a sizeable dividend; and occasionally loaned funds at interest to individuals and institutions.
Ben Franklin's life is worth studying as a resource for building your own wealth. And of all the Founding Fathers, Ben Franklin can teach us the most in terms of practical advice in business and investing.
You would do well to pick up a copy of The Compleated Autobiography, by Benjamin Franklin, which is a memoir covering the final 33 years of his amazing career - as a revolutionary, diplomat and financial guru - and it's all in his own words.
* * * * *
What most people forget is that Franklin was also a successful investor after he retired from his printing business at the young age of 42. And despite war and numerous financial setbacks, he died a very wealthy man.
Franklin's way to wealth included building his investment retirement portfolio through saving, avoiding debt, placing well-collateralized loans (bonds) and investing in rental properties.
So how did Franklin manage his money?
The Way to Wealth Rule #1: Be an Optimistic Investor
Franklin ignored the doomsayers and profited from his prediction that America was destined to be a great, prosperous nation. An incurable optimist, Franklin was always bullish on America, and life in general. "The United States," he said, "is an immense territory, favored by nature with all the advantages of climate, soil, great navigable rivers and lakes... destined to become a great country, populous and mighty."
The Way to Wealth Rule #2: Beware of "Sure Deals"
Limit your speculative opportunities, so as not to jeopardize your entire portfolio with speculations that promise "guaranteed" profits. You are bound to be misled and overly optimistic about the risk involved.
The Way to Wealth Rule #3: How to Handle Financial Setbacks
Diversify your holdings and limit your risks. Franklin made it a point of having a wide variety of income sources so that a loss in one would not destroy his entire portfolio. In addition to earning income from his roles as minister and postmaster, he also maintained seven or eight rental properties; earned interest-bearing bank accounts in Philadelphia, New York, London and Paris; invested in common stocks such as the Bank of North America, which paid a sizeable dividend; and occasionally loaned funds at interest to individuals and institutions.
Ben Franklin's life is worth studying as a resource for building your own wealth. And of all the Founding Fathers, Ben Franklin can teach us the most in terms of practical advice in business and investing.
You would do well to pick up a copy of The Compleated Autobiography, by Benjamin Franklin, which is a memoir covering the final 33 years of his amazing career - as a revolutionary, diplomat and financial guru - and it's all in his own words.
* * * * *
posted by Bob Moser at
3:26 PM
0 Comments:
Post a Comment
<< Home