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Page 27. What the wealthy eat. The authors tell a hilarious
anecdote about a study of high-net worth individuals they did for a
large international trust company. To make sure the respondents were
comfortable during the interview they rented a penthouse on Manhattan's
East side and hired a gourmet chef to put together a menu of four pates and
three kinds of caviar. They also served a high quality Bordeaux wine.
Nine people attended this two-hour function. They occasionally glanced at
the buffet but only ate the gourmet crackers, avoiding the pate and caviar.
One respondent, a Mr. Bud, was offered the Bordeaux wine. Mr. Bud looked
at the interviewers with a puzzeled expression and said:
"I drink scotch and two kinds of beer - free and Budweiser!"
It turns out that few millionaires are gourmets, but a large number
of trust company officers and college professors are. The food was
consumed by the latter after the millionaires departed.
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Page 32. What the wealthy wear. The authors tell us that half
of all millionaires they surveyed spent less than $399 on the last
suit they purchased, less than $140 on the last pair of shoes, and less
than $235 for their last wristwatch.
.
Page 55. "To build wealth, minimize your realized (taxable) income
and maximize your unrealized income (wealth/capital appreciation without
a cash flow)." Sound advice for any season.
.
Page 68. "It's easier to accumulate wealth if you don't live in
a high status neighborhood." Surprisingly, it's easier to be affluent
if you don't live in an affluent neighborhood.
.
Page 100. "Forty-two percent of millionaires the authors
interviewed for their latest survey had made no trades whatsoever
in their stock portfolios in the year prior to the interview.
The so called active investor is one of the more difficult types
of millionaires to find for interview purposes." Frequent traders
take note: buy and hold seems to create more wealth.
.
Page 106. The Martin Method for selecting financal advisors.
When a stock broker or other financial salesperson telephones Mr. Martin with
an investment idea. He tells them to send a copy of their personal
income tax return along with a list of what they had in their portfolio
for the past three years. If stock broker has made more money from
his investments than Mr. Martin, he'll invest with them.
Mr. Martin reports that so far none of the cold calling salespeople
have submitted their income and capital appreciation data. Wonder why?
.
Page 113. How many millionaires indicated that their most
recent vehicle purchase was used? Nearly 37 percent.
.
Page 116. How do millionaires buy their cars? "These people
are not into status; they buy automobiles by the pound."
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Page 141. Economic Outpatient Care (EOC). How much money
should you give your kids and what will it do to them? Lots of
examples and anecdotes, both amusing and frightening.
.
Page 211. Businesses and professions that will prosper as the
number of wealthy families increase in the coming years. Estate and
tax lawyers along with cosmetic surgeons are prominently mentioned.
.
Page 216. The wealth tax is coming. Several states (e.g. Florida)
have an intangible tax on the value of stock and bond portfolios. Which
means you have to pay a tax on the value of your investment portfolio
similar to the real estate tax you pay on the value of your home. The
authors predict we will see this on the Federal level.
.
Page 229. It's not easy to become wealthy. "That's why [the
authors] are offended by people who tell the American public:
Just buy my educational/study-at-home kit and your new business
venture will be a success."
Wade Cook. Repent!
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Page 243. The six-figure doggie. The best anecdote of
the book. The problems a millionaire dog and condo owner had with his
neighbors in a luxury high-rise. You'll have to buy the book to read
the punch line.
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