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1993-09-01
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238 lines
WEALTH MANAGEMENT SYSTEM
Investing made simple, effective and worry free
by WILLIAM W. ODLUM
105, 35 Ormskirk Avenue
Toronto, Ontario, M6S 1A8
This Document Copyright(c) 1992 - 1993, WILLIAM W. ODLUM.
WEALTH MANAGEMENT SYSTEM Software copyright(c) 1992 - 1993,
WILLIAM W. ODLUM
All rights reserved.
Non-registered users are granted a limited license to use the above
mentioned software and document on a trial basis. Use, except for this
limited purpose, requires registration.
Use of non-registered copies by any person, business or agency is
strictly prohibited.
No user may modify either the document or software in any way whatsoever.
GETTING STARTED.
Since this is an unregistered copy, I am not going to share with you
the secrets of successful investing until you register.
'How to Get Rich and Stay Rich' consists of easy to read and understand
investment advice - shows step by step how to set your financial goal and
set up a savings plan - shows where and when to Invest your Savings for
the greatest gain consistent with safety of Capital.
TRACK RECORD.
I can tell you that the simple, worry free, Investment strategies I will
share with you have worked for me. They enabled me to accumulate enough
money in 25 years to retire and live in comfort. My wife and I enjoy
traveling and have visited 26 countries over the years.
Not to brag but to give you the facts. I came to North America at 24 years
of age with a grade 12 education and no skills. I realized that I would
never earn more than an average salary and wanting to enjoy all that life
had to offer I started to invest a small amount each year.
It took me a while to devise a winning strategy and from then on I spent
only 2 hours a month on my investments. Soon my annual income/growth from
investments was greater than my salary.
I retired at the age of 50, which was 10 years ago and have enjoyed myself
ever since and have not missed the stress, pressure and nonsense of the
work-a-day world!
HAZARDS.
It saddens me to see people, young and old, out of work today through
downsizing, changing technology, or bankruptcy in the workplace.
With no savings they depend on Unemployment or Welfare benefits
to give them the bare necessities to live.
What happened to these people, living in the richest society on earth and
well educated with good jobs and all the trappings of success, own home,
car, exotic vacations and membership in a good country club.
They put their faith in their companies to provide a pension plan and a
well paying job for their future working life. They did not realize that
in today's world a person will be in and out of many jobs and face career
changes during their working life.
They did not take care of their own financial future by setting aside a
small percentage of their earnings, while working, to cushion the
inevitable layoffs and awful trauma of losing everything they have worked
for due to lack of a paycheck.
However, it is never too late to start saving to build a secure,
independent financial future, dependent on neither companies or
governments.
Many, to whom I have spoken, that do make the effort to save for that
future, seem doomed to repeat all the mistakes of the beginning investor
by trying to reinvent the wheel, as they will not pay for sound advice and
tools upon which they can continue to build.
They use free advice from friends, acquaintances and newspaper columnists
who have no proven track record. Financial Institutions that do have a
record are disastrous. As a result they end up wasting their money on
commissions and lose compound growth by investing in the wrong areas at
the wrong time.
They tell me of an investment they bought and have held for years and as
the price is a few percentage points greater, they have not lost money
on it.
They do not seem to understand that if their investment is not at least
doubling every five years that indirectly they have lost and will
continue to lose the potential compounded gains from the money invested.
I am always amazed by people who know the price of everything and the
value of nothing.
Real Estate is an example of mindless speculation. When the boom in
prices started due to a shortage of housing there was a great deal of
money to be made but then everyone got on the bandwagon and instead of
a home providing shelter it became a profit center with annual gains
almost as great as the homeowners take-home pay.
When the cost of owning a home reached 40% to 60% of the home buyers
annual salary and with the building industry producing a surplus of homes
it was obvious that people could not and would not pay these prices and
they crashed back to the traditional level of the cost of shelter which is
25% to 30% of salary.
This madness was not due to ignorant individuals but to Financial
Institutions whose greed overcame common sense as they loaned greater and
greater amounts on property from which the income fell far short of the
loan repayments.
The resulting crash wiped out Savings and Loan, Trust, Bank, Real Estate
and Construction companies leading to the worst unemployment since the
1930's.
This was a prime example of the old adage "Be a Bull or a Bear but don't
be a Hog".
I have lived and prospered through all the fads - Gold from $200.00 to
$800.00 an ounce and back - Silver from $5.00 to $50.00 and back - Oil
$18.00 a barrel to $56.00 and back - Nickel, Cotton, Strip Plaza's, Office
Buildings, Land, Retailing, Manufacturing and Junk Bonds, the list goes on
and on.
However, while enormous sums of money were lost by many gullible
investors, it did not disappear. Some shrewd investors ended up with all
of it. (Money never disappears, it only changes owners!).
WHAT THE FUTURE HOLDS.
I believe that the recession of 1990-92 is over and the damage done to
our economy by the fastbuck artists during the nineteen eighty's is behind
us.
With costs under control we are entering a new phase of solid,
sustainable growth in the U.S.A and Canada that will be very rewarding
to those who get in at the start.
Interest rates are now less than half what they were a few years ago and
this will show up on the bottom line for companies with a large debt load
as the savings in debt charges goes straight into the profit column.
Just as the Personal Computer changed the way the whole world does
business in the short period of 15 years, there are new technologies and
products coming out of North American research centers and laboratories
which will lead to even greater change in our lives and with it more
jobs and prosperity.
Biotechnology, Environment Pollution Control, Alternative Energy Sources,
Space based Communications Systems, Fiber Optics and Health Care are
just some of the many areas that will bring about great change and growth.
The problem is to pick the winners. In the eighty's we had hundreds of
companies created in the personal computer hardware and software fields.
Most fell by the wayside leaving only a dozen giants, but look at the
rewards of choosing winners. To name three, Intel, Apple and Microsoft,
which made their founders and shareholders extremely wealthy in the last
12 years.
The founder of Microsoft has a personal wealth of 7 billion making him
the richest man in the world.
I'm told it cannot be done today because of high taxes and low wage
competition from third world countries, this is the same nonsense I have
heard during every turndown for the last 40 years. The U. S. A. has
highly educated citizens, with over half of the world's Scientists and
Engineers.
While third world labor may assemble good