TAKEAWAYS AND ACTION ITEMS Stockpiling requires recurring investments that are

Takeaways and action items stockpiling requires

This preview shows page 237 - 241 out of 263 pages.

TAKEAWAYS AND ACTION ITEMS Stockpiling requires recurring investments that are best handled in an investment account called a Berky. It is a flexible account that allows you to periodically reallocate cash and investment capital to the business of your choosing. It should be tax-efficient and allow you to get cash for emergencies or personal reasons if necessary. Create your first Berky as a tax-deferred retirement account. Subsequent accounts should be tax-efficient because taxation has a
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huge impact on long-term returns. Follow the step-by-step process to set up your Berky account at PaybackTimeBook.com . Capital earmarked for medium-term financial needs could be contributed to a Berky structured like a Health Savings Account (HSA) or Educational Savings Account (ESA). Determine the best Berky structure for you by following my timely alerts and must-read posts on my website.
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A JOIN THE RULE ONE REVOLUTION Every generation needs a new revolution . T HOMAS J EFFERSON lot of what you read in this book flies in the face of conventional wisdom and certainly must irritate the institutions that control the stock market. The idea that an individual investor doesn’t need to put money in mutual funds and should be finding good investments on his or her own is certainly revolutionary to the existing financial order. In fact, their view is that this is insane. And for good reason. Should you find out you can do this better on your own, Good Lord, who knows what kind of craziness might ensue. Entire institutions might fall. We might lose most of our investment banks. Mutual funds might cease to exist. The financial world as we know it today might end. And, in particular, an unimaginable fortune in fees might be lost forever. Oh. Wait. A lot of this is already happening. The old financial order is crumbling before our eyes, driven to self-destruction by greed and envy and other people’s money. CEOs pay themselves fortunes in annual bonuses while their employees suffer and businesses collapse. Investment banks fail and cause entire countries to go bankrupt. And all the while they, like the old guard of any collapsing antiquated system, keep shouting from the rooftops that everything is fine. Trust me … all is not fine! It’s time for you to wake up to the fact that we are in a revolution
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about money. The old paradigm is dead. A new paradigm has made the scene, and it isn’t going to go away. In twenty years, the idea that people once turned over hard-earned money to a fund manager to “actively invest” will be ridiculed. That practice will be as inconceivable as hiring someone to do your reading for you. Financial literacy will prevail; information will be readily available; bad businesses will no longer be able to hide behind smoke and mirrors, false financial information, and fund managers’ apathy. Payback Time is here to sound the alarm, to wake you up and show you how you will need to proceed in revolutionary financial times.
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  • Spring '20
  • Warren Buffett

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