By Garrett Gunderson In any transaction there is price and there are terms. For example, the price of a home might be $300,000. If the sellers want cash at closing and will not consider negotiating on other terms, you must either come up with $300,000 cash or secure a mortgage to purchase the property. If you were to get a mortgage, the … [Read more...]
Financial Velocity Trumps Compound Interest
March 9, 2011 by Leave a Comment
By Garrett Gunderson You’ve heard of compound interest being “miraculous,” but what is it? Compound interest is the concept of adding accumulated interest back to the principal, so that interest is earned on interest from that moment on. For example, suppose you owe someone $1,000, with an annual interest rate of 12 percent, for a monthly … [Read more...]
Why Risk “Tolerance” is Ridiculous
February 28, 2011 by Leave a Comment
By Garrett Gunderson If you’ve ever worked with a traditional financial advisor, you’ve probably taken a risk profile to determine how much risk you can tolerate. The idea, of course, is that the higher returns you want to enjoy, the more willing you must be to take on risk. This is backwards and illogical, yet so few people are able to … [Read more...]
Reduce Expenses or Increase Production?
February 15, 2011 by 1 Comment
By Garrett Gunderson Most accumulation-based books and advisors teach you to decrease your expenses as much as possible in order to save more money for retirement. There is definitely merit to decreasing expenses, especially in a consumption-driven culture where most people are borrowing to consume. But I generally take issue with how … [Read more...]
The 5 Fundamental Principles of Prosperity
February 8, 2011 by 1 Comment
By Garrett Gunderson Principles are natural laws of the universe that never change and that hold true in every context. Principles govern the universe and determine the consequences of actions taken by human beings. They are the structure, or the framework that provides the context of existence. Living in accordance with correct principles … [Read more...]
The Enlightened Entrepreneur
January 27, 2011 by 2 Comments
By Steve D’Annunzio The Constitution of the United States does not guarantee us freedom and prosperity; it merely provides us the opportunity to pursue those ideals. Each individual is responsible for securing their own freedom and prosperity. The best way to achieve this is by enlightened entrepreneurship. Free enterprise is a system of … [Read more...]
The Money Tree
January 26, 2011 by 1 Comment
By Garrett Gunderson Two gardeners planted fruit trees in their gardens. The first gardener took care to select the best seeds. Furthermore, he carefully prepared the soil, picking the ideal location that would receive adequate water and sunlight, tilling it well and providing fertilizer. From those seeds sprung forth healthy, strong and … [Read more...]
15 Reasons Why Your 401(k) May Be Your Riskiest Investment
January 12, 2011 by 3 Comments
By Garrett Gunderson Financial institutions are genius marketers. They are able to get millions of Americans to hand over their money with very little thought taken, very little knowledge of the so-called investments offered, and even less control of their investments. When the evidence is plainly presented, it becomes overwhelmingly clear … [Read more...]
What Are You Waiting For?
December 23, 2010 by Leave a Comment
By Garrett Gunderson No nation in history has been as prosperous as America. Never before have we had so much information teaching us how to get rich. Our sophisticated network of financial institutions, tools, strategies, products, and “experts” is unrivaled. Yet underneath this powerful veneer lies truth about personal finance in America: … [Read more...]
Six Counterintuitive Ways For Entrepreneurs to Trump a Tough Economy
December 8, 2010 by Leave a Comment
By Garrett Gunderson Hard economic times provide excellent strategic opportunities for entrepreneurs who are willing to buck conventional wisdom. Here are a few ways to do that. 1. Raise Salaries When so many employers are reducing their workforces and cutting salaries, step up by showing your employees how much you value Human Capital … [Read more...]
