Top 1%
Follow the (Wealthy) Leader
Jennifer Openshaw
02/12/07 - 11:57 AM EST
How many times have you been about to make a financial decision -- take out a loan, risk some money, something -- and you wanted to know how the really rich would do it?
Now, one way to do it is to join Tiger 21 -- a club for the super-rich who talk to each other about their wealth and how they go about managing it.
But it costs $25,000 a year, and you need $5 million or more to qualify.
Maybe this is for you -- if so, congratulations. But what about everyone else?
I know it's tough to find someone you trust. But wouldn't some guidance give you comfort that you're doing things right, keeping you on track to The Millionaire Zone?
Why is this so important? For one, the financial world has become more complex.
There are 17,000 pages of tax code, new kinds of investments, more volatile markets and a litigious society making practically everything we do a risk-management issue.
Add longer life spans, more time to be spent as a widow or widower, more career changes, more small business ownership -- you get the idea.
What I see so often are otherwise smart, competent people learning, but learning the hard way -- after unpiling a mountain of debt or getting hit with a huge tax bill, or worse.
Or, suitably wary of the total do-it-yourself approach, they hire a professional.
Professionals are great, but if you don't know what they're doing, you're vulnerable. Are they selling something to you? Are they doing the right thing for you or for themselves?
So today's rich -- and aspiring rich -- are no longer sitting back. They're taking the initiative to build wealth-management skills. They read, and some take courses like the many offered at local night schools.
Click here for the video version of this story from Jennifer Openshaw.
- Follow the leader. Some might call this "networking," but it's really more precise. Through friends or business acquaintances, hook up with someone who has been really successful. Be tactful, but get the conversation going. Ask what are the two or three things that made them successful -- or how they solved problem XYZ. Most successful people like to talk about what got them there.
- Professional training. Many financial training programs are oriented toward becoming a professional in the field, such as a financial adviser, or adding financial adviser capability to practices such as estate law or family counseling. There are certificate programs and, more recently, four-year degree programs. Many are taught at local community colleges. The nice thing: As an amateur, you can take as many or as few courses as you'd like. The Certified Financial Planning (CFP) introductory survey course gives a good overview along with cues about where to head from there. Most courses are $500-$600. The CFP Board of Standards Education site shows all programs including those in your area.
- Wealth management school. Catering to the highest end of the spectrum, those who really need to understand the complex ropes of managing substantial wealth, are new programs such as that offered by the Institute for Private Investors through the prestigious Wharton school, and another by the University of Chicago. These are intense and expensive ($7,000-$9,000 for one week) but you'll get the tools, get to network with others in your situation and likely gain some handy contacts.