Tip:
Highlight text to annotate it
X
Hi, this is Stuart Zadel and welcome to part seven of our 8 part series as we look at the
seven factors from the book "The Millionaire Next Door". What separates the wealthy from
the "not so" wealthy.
If this is the first time you've joined us, may I suggest you definitely go back and look
at the past videos we've filmed because each video and each factor builds upon itself and
I think you are going to need all seven to make it work in your favor, now if you've
watched the last video you will recall what we've talked about, the ten factors if you
will but the wealthy use when talking to their children about their money or how best to
communicate it with them because they understand the dangers in giving children massive unearned
wealth. And how they bring up their children and prepare them for the handover is very
important. Now, if you've worked long and hard for your money and your children and
you want that to last, I suggest you check that video out.
This lesson as I've said, seventh video of eight is that the affluent profession in targeting
marketing opportunity is what they call finding your niche.
Now recently we have the famous train robot Mr.Biggs passed away in Brazil if you saw
the media stories apparently regarding his coffin he had his flowers arranged in the
order of two fingers salute to the authorities.
Defiant to the end however, one of his famous quotes when he was interviewed, "Hey why do
you rob banks?" He said, "Well, that's where the money is".
And the affluent understand this in talking about targeting market opportunities. If you
want to do well in business or any investing, it's a good idea, like Mr.Biggs to go where
the money is. And that means, affluent people and affluent companies. Now you can target
these things and do well and the affluent know this, so what does that mean, well you
should target the affluent, absolutely! You should target the children and the grandchildren
of the affluent. And even more valuable, you should target the widow and the widowers of
the affluent.
As a part of your investment strategy or business strategy or whatever you plan to do. Now in
terms of specifically what this means the authors in the book go out on they eliminate
names some certain industries or professions or whatever that they think would do very
well. Now of course you can do well in any area, in any field, and it's all relevant
however they did find some trends through all their studies.
So I am going to list some now up here on the board so you can see how this fits into
you. Now of course right now you can say to me, but Stuart when it comes to spending money
you said the affluent were frugal, frugal, and frugal. And that's true, particularly
of the self-made affluent of course taking into account the previous videos that we have
recorded but you know what, these people are not frugal on certain products and services.
Things like, professional advice, legal advice, accounting advice, health care, dental care,
certain sorts of travel, when it comes to their children and grandchildren. And there
is a whole a lot more, they are businesses, they have significant purchases of industrial
products and services and vacationing.
I am going to go through some now and you can check this out. So first and for most,
they do say anything to do with, so I am going to say some, Finding your niche, so niche
means areas to specifically concentrate on, they certainly say Law & Solicitors, that
sort of thing but specifically, three key areas.
One is income tax, the other one is a state plan, and the third one is immigration law
for the wealthy. So, let me cover them. I read a survey or research report done by West
Bank, one of Australia's big four banks and it said the single biggest transfer of wealth
in our history has begun. As the baby boom has moved has moved for its society they are
now in retirement age they are handling now their own businesses, handling them down,
selling many of them a part away, in fact depending on the lifestyle that they've lived
and so this transition is massive. Now if you are over a profession that can help in
that transition how best to handle the transition of those assets to the people depends on where
they want it to go, in a tax effective manner you should do very well. Second thing is income
tax, we've got governments drowning in an es-capable debt all around the world and you
can bet as they go down they are going to be looking for more money, which means more
taxes and they are probably going target the affluent, the people that have it, of course
you can't get a blood out of a stone if poor people aren't got it there is no point in
getting more out of them. So, with that, if you can legally affluent and avoid increase
taxes or make decisions to put them in a more advantageous situation again from that point
you should do very well. The third thing is immigration, now one of our experts on states
last year the number quoted the number of wealthy, wealthy Chinese that were leaving
their country and just under forty millions of them extremely wealthy their desire destination
was Australia. And so the key major of forty million wealthy, wealthy Chinese people are
looking into immigrate to Australia right now, why? Because they are not so sure of
what their government are going to be doing moving forward and if they get in trouble
financially. And some don't have the greatest history in being a compassionate so we say,
with their citizen rights when it comes to money.
So the wealthy worldwide are mobilizing, they are mobilized and they are moving now, they
are moving their assets, outside the countries that are going down, many, many welcoming
countries out there. So again, if you are going to help with this information you will
do very, very well.
The next thing you can do very well is your Health and Dentistry. The wealthy do not skip
when it comes to health and they are not confined to minimum government public stand of health
and all that kind of stuff, pay private, they pay the best. Dentistry whole of stuff going
on, their appearances are important to them, their teeth, cosmetic dentistry, and big part
of life as well, moving forward. Now, I am going into under Medical care, I am going
to quote form the book here, page 220, goes into dentist, cosmetic dentist, including
bleach and bonding, invisible braces, slip issues, nape issues, corrective jaw surgery,
plastic surgery, is big on their list. Dermatologist and skin conditions, Allergists, Psychologist,
Psychiatrist, goes down to Chiropractic and other alternative health type people as well,
huge areas as well.
The next part to talk about is what we call asset liquidators, so again any of the key
assets of the wealthy have will be big, people that can help with man wealthy, they are in
mirror rights, they are in forests, they are in farms, the affluent coin collection and
stamp collections, If you are an appraiser or related to some of those fields, you are
going to be in big demand and sure could do very well. Now, real estate is big, it will
be bigger. There will be wealthy, they are downsizing, they are moving, their life styling,
they are see changing, they are tree changing, all these sort of things. Their working lives
are coming to an end, they want to do stuff. Now of course, they are also helping their
children into property as well big and in fact it is actually interesting that they
are getting their children into bigger mortgages than the children want because they are giving
them bigger deposits to buy bigger houses. So again, anything to do with real estate,
re modeling, renovating, and developing land is big. Design, Internal design, interior
designers is what I am trying to say, thank you very much.
Okay great, so that's a good idea to focus on as well, travel and vacationing, particularly
when it comes to their children and grandchildren is a very big area as well, if you can provide
experiences there for the family, you can do very well. I am going to throw one more,
not listed in the book but I think it is huge and that is food. A specific sorts of food,
the wealthy one with better health and they are wising up. The quality of food may not
be the best so there's an explosion going on now, have you noticed super foods, super
herbs, coming in everywhere, super quality in vitamins, organics and of course restaurants
in general. Now restaurants make a fortune, not even the health ones, just the standard
ones do wealthy.
So here are some ideas, you might think, Stuart, I am not in a profession in one of those areas,
no you don't have to be, you can invest them through companies or stock markets, or joint
ventures, a whole heap of things. But it is the principle you want to get. Now when it
comes to investing of course, as Warren Buffet said, if you don't understand the business
and its product and services, Warren Buffet says, I advice, inactivity.
This is Stuart Zadel