In the previous article, Cora and I introduced two of the six investment strategies suggested by a survey that Money Magazine printed in their May 2005 issue. In this article, we'll continue to cover the final four strategies, including information that we gathered either from other resources (or from our own opinions) that will either support or refute some of the information that we discovered in the survey. The percentage numbers which follow each strategy indicate the percentage of 1,019 individual responses to the question about how to quickly climb the ladder to riches:

3. Inheritance - 14%: Cora and I had a nice long daydream about inheritances. I know where I stand on that issue, and Cora also knows where she stands. While riches aren't flowing through the family tree branches, we have placed a certain value on peace of mind for our future generations. Preparation of valid wills, trusts, and other documents that work for us after we're no longer around is definitely a part of the long-term buy-and-hold mentality.

Money Magazine stated that the number of American millionaire households will jump about 52% between now and 2009, but that the top 1% of American families still own as much as the bottom 95% combined. This is the highest gap between rich and poor among any developed nation. But, in a quote from Susan Mayer, an economist at the University of Chicago, Americans tolerate this disparity between rich and poor simply because it implies that Americans believe that they can still get ahead in this country. So, if you intend to hop on this merry-go-round to grab the brass ring, just know that Americans believe that $2.5 million is the average amount you would need in savings to "feel rich." Cora said she'd rather "feel happy."

4. Marry Money - 13%: Wow. Even Money Magazine didn't cover this issue. They skipped right over it along with the inheritance issue listed above. But Cora and I will tackle it: Let's see - 13% of 1,019 individuals = about 133 people. That means that if this survey represents the American public as a whole, then 38,445,437 individuals in America today still believe that they can get rich through marriage (295,734,134 est. U.S. population numbers as of July 2005 x 13%). That number represents the entire population of California. That number also either indicates either a huge increase in business savvy (marriage as partnership) or an equally huge return to medieval marriage concepts, where lineages and inheritances were preserved through the institution of marriage. Hmmm?if 13% believe that marriage quickly increases riches, and 14% believe that inheritance quickly increases riches, then there may be a correlation here...

5. Start a Business - 12%: Cora and I are still laughing over the previous strategy - we think we ought to start a marriage brokerage business. All laughs aside, the desperate and in-debt still make for the most entertaining or possibly inspirational entrepreneur stories, and Money Magazine includes one in their article. Entrepreneurship is where hope lies for many Americans who are 1) sick and tired of the corporate mentality and glass ceilings; 2) who believe in themselves and their goals, and; 3) who cannot make it in the corporate world because of lack of education, family constraints, etc. While education isn't needed to make it as an inventor, writer, or shop owner, etc., I'll be the first to put my hand up when asked if my income level has increased exponentially with my educational level, even as an entrepreneur. My advice - get education whenever and wherever you can.

Money Magazine stated that the odds on new businesses are always long, but they didn't discriminate whether "long" meant time or risk. It does take time to build a business, and the risk is always high - but if you work for a corporation, how much risk do you take on a daily basis? Do you still have a retirement plan with your company? How's that ol' pension going along? Risk is everywhere, and a climb up the corporate ladder takes just as long and as much strategy as building a solid sole proprietorship. So a perspective that excludes immediate gratification can be worth the effort if you believe in yourself or in your adopted corporation.

6. Last, but not least?the Stock Market - 11%: Money Magazine stated that the reason the stock market rated so low on the list is because 1) the real estate market is so hot, and; 2) because so many people were burned in the "crash" that occurred earlier in this century. I would add that many investors are also skittish because of the scandals that constantly rock highly-rated stocks. Still - and Money agrees with me - over the long run, the stock market still offers a good return, "particularly if you start early." They show an example of a return at only 8%, but if you think about it, that 8% is still larger than the increase that I mentioned in the school loan percentage in the previous article. Plus, I believe that it's never too late to begin to invest wisely.

The securities markets are subject to the risks of fluctuating prices and the uncertainty of rates of return and yields inherent in investing and past performance is no guarantee of future results.

If you keep in mind that this survey was focused on how to get rich quick, then the responses above make sense. When a person turns real estate over rapidly or when a doctor or a lawyer enters the real world after a graduate degree, then the rate of monetary increase compared to previous years may seem tremendous.

From a long-term buy and hold perspective, however, Cora and I believe that some of the information above can be tossed out the window because it seems more like a gamble than an investment strategy (such as inheritance and marriage for money). Additionally, we would then reverse the strategies - especially for a younger person who entertains long-term goals. Stock markets first, then a mix of job options and education, then real estate. Or, maybe the stock market, education, and then a life filled with adventure and goals other than an addiction to get-rich-quick schemes?

Until Next Week,
Linda Goin