Excerpt

Excerpt

Please click through the below excerpts from the book Rock & Roll for an overview of what you can expect!


Seven Ways to Total Wealth & Abundance

Twenty years ago, in 1984, a young commercial airline pilot decided he needed a financial plan. With roughly $50,000 in investments, a house, and a small piece of rental property, Fred's net worth was just over $138,000. Today, at age 49, Fred's net worth is $3.6 million and growing. More important, he's living a life he loves. The results he achieved may sound spectacular, but Fred simply followed the seven keys to total wealth and abundance - seven simple steps that anyone can use.


Key #1: Take Time to Create a Compelling Vision


I'm sure you've heard about the power of a vision. Athletes tap into it all the time. They rehearse their future success over and over in their minds, and then go out and do it for real.


You don't have to be an athlete to use visioning power. Fred wanted the ability to retire at age 50 if he needed or chose to when the time came. I encouraged Fred to refine his vision by thinking about what retiring at age 50 might include. You already know he achieved his goal. However, I failed to mention that he did it nine years early: Fred reached the million-dollar mark at age 41.


Key #2: Connect Your Vision to Your Values, Passion, and Purpose


As a pilot, Fred has the option of "bidding" for flights. Since different routes involve higher or lower pay, his choices affect his income. International flying, for example, pays more than domestic but it's harder on the body and requires more time away from home.

"Earlier in my career," he said, "I kept an eye on my income stream. As I got closer to the goals and got more comfortable with the fact that I was achieving them, I started bidding schedules that provided more time at home, even though the consequence was less money generated." Fred's story shows how easy it is to stay focused on your vision when it's aligned with your values, passion, and purpose.


Key #3: Educate Yourself and Find a Great Coach


Top professionals in all areas of life attribute their success to working with a coach. They know a good coach can help them get results, provide information and knowledge, and bring out the best in them. Coaching shortens the time required, reduces mistakes, and gives them a higher probability of getting what they want.


Key #4: Formulate and Implement a Measurable Plan


If a vision is the what, a plan represents the how. Fred had a clear and compelling vision: to be financially independent by age 50. Yet his vision alone wasn't enough. Fred needed a specific plan, consisting of attainable intermediate goals to be reached along the way.


Fred's plan listed certain very specific items, like bidding for flights to earn the income he desired, saving a certain amount of money each month, investing it according to a well-thought-out strategy, compiling net worth and cash flow statements to monitor his progress, and always staying focused on his ultimate vision. Even more important than formulating a plan, Fred actually implemented and followed through on it.


Key #5: Monitor Your Progress and Update the Plan as Needed


Remember: You can't manage what you don't measure. Keep this in mind from the very beginning, and start by setting measurable goals.


Monitoring your progress offers more than just feedback about your results. It lets you know when it's time to update your plan. When a plan isn't working, a slight change here or there can make all the difference in the world. Even better, if your plan's working so well that you're ahead of schedule, as Fred was, measuring it makes you aware of your progress and lets you take advantage of other available options.


Key #6: Enjoy Your Abundance


When it comes to the concept of wealth, many people are wrapped up in the idea that they need to save, invest, and build their money, while forgetting its real purpose. Money was never intended to be hoarded; it's meant to be used and enjoyed.


What could you "invest" in that would add to your life? A digital photography class? Computer training? Golf lessons? A special vacation with your entire family? Fred practiced win-win thinking by working hard, saving money, and enjoying the abundance he produced. Even when he was young and saving in a disciplined way, he always had hobbies and enjoyed a good balance in his life.


Key #7: Leave a Lasting Legacy


The probabilities are very high that you'll have money and financial assets left over when you reach the end of the proverbial road. What will happen to all those assets you've accumulated during your lifetime? More important, what do you want to have happen?


Financial bequests aren't the only way to leave your mark upon the world. Who you are and what you do makes an equally powerful impact. You may never know exactly whom you affect, but you can be sure that you're putting the wheels in motion when you incorporate key #7 into your plan for healthy longevity.

Develop a Training Mentality

Have you ever begun an exercise program, only to stop it a few weeks later? Have you ever made a New Year's resolution to take up jogging or join a gym, then forgotten all about it by Valentine's Day? Maybe you're one of the few who exercises regularly, but you've hit a plateau and need to push a little harder to reach the next level. Or maybe you're one of those really rare people who's made a lifetime commitment to physical health. Wherever you are in terms of your fitness, you'll have even more success in achieving your goals by developing a training mentality for life.


You're probably familiar with the old adage, I wish I'd known then what I know now. It implies that by the time you figure things out, it's too late to do you any good. Your only recourse is to leave a legacy of wisdom to the generation behind you, and hope they'll use it before it's too late.


The previous generation left a legacy for us, though I'm sure it was unintentional. Not expecting to live so long, they were unprepared for longevity. As a result, many of them spent their later years physically unable to do what they wanted.


Luckily, we have an alternative. We can learn from their example and do something different. We can create the possibility of feeling like we're 50 well into our 70s, 80s, and beyond. We can take steps now to stay healthy, fit, and active for many years to come. We can choose to believe that as we get older, we'll have the potential to be at our peak in performance and productivity. However, achieving peak performance later in life requires us to do something no previous generation has ever done before - train for our longevity.


Let's consider for a moment this concept of training and how it differs from exercise. World-class athletes don't just exercise, they train for their success. They discipline themselves to think healthy thoughts, eat properly, maintain their physical health, shape optimistic attitudes, and develop hidden potential. Exercise is beneficial; when you exercise, you feel vitalized. But training involves the ongoing practice of disciplines that help you achieve and maintain a performance state for extended periods of time. It requires a synergy of mental, physical, and emotional variables.


If you're just exercising, you can accept less than full effort in your program. After all, you showed up, right? If you're in training, anything less than your best keeps you from attaining the change and improvement you seek.


If you're just exercising, you can skip a workout or two, and it won't bother you at all. If you're in training, missing a workout sets you back from where you could have been in terms of improved strength, flexibility, and endurance.


If you're just exercising, it's okay to skip the occasional meal or indulge in that sugary snack you crave. If you're in training, you know you need good nutrition to support your efforts in the gym, on the practice range, and on the course. Anything less than your ideal eating plan sabotages the work you've done.


In the same way, adopting a training mentality for longevity can help you make life after 50 your best years yet. Creating a training mentality is as easy as flipping a switch. You simply decide that you're in training for a long and healthy life. That's it. From that point forward, everything you do from an exercise perspective suddenly becomes more purposeful. With a training mentality, it becomes easy to prioritize and make small sacrifices to achieve your goals.

A Six-Step Eating Plan

When it comes to formulating a plan, remember these three words: measurable, attainable, and simple. I'm not one to weigh, measure, calculate, and agonize over what I can and cannot eat, and I don't advocate that kind of diet. No food is inherently good or bad; you should simply eat more of some foods and less of others. The best way to eat involves a long-range approach that includes a variety of healthy foods every day. The next step is to create a plan with measurable results. What do you hope to accomplish and in what period of time? What are you willing to do to accomplish your vision and goals? The more specific and measurable you make your plan, the better chance you have of staying on track and ensuring your success. A measurable plan might include specific targets such as eating nine servings of fruit and vegetables each day; drinking eight glasses of water; or reaching specific targets you set for your cholesterol, triglyceride, or blood pressure levels. Your plan should include clearly stated goals, such as not going above a certain dress or belt size, or being able to walk or run a certain distance in a specific amount of time.


Step 1: Watch your portion size.


The key elements of a nutritious diet are moderation and balance, not elimination. You can eat almost anything as long as you eat moderate amounts. For example, U.S. Department of Agriculture (USDA) guidelines allow you to eat up to two servings from the meat group a day. However, a serving means 2 to 3 ounces of cooked steak, not the 24-ounce sirloin some restaurants offer.


Step 2: Eat at least three times a day.


Don't skip meals, even if you have to eat on the run or at your desk. The body works best when it receives fuel throughout the day; it doesn't run well on empty. When you finally eat after skipping a meal, your body may crave sugar (for quick energy) and fat (as insurance against future missed meals).


Step 3: Control your weight with a combination of healthy eating and adequate exercise.


As always, before beginning any weight-loss program, or if you have questions about your appropriate weight and body fat, please consult your doctor or a registered dietitian.


If you want to lose weight, don't focus on a particular number ("I need to weigh 130 or I'll die"). You may never reach your "ideal" weight if you base that ideal on unrealistic expectations. If you've never weighed 130 in your adult life, your genes may not allow you to weigh 130 and be healthy. Instead, decrease your portion size and increase your exercise until you reach a healthy body mass index, or BMI.


According to the National Institutes of Health, BMI is a measure of body fat based on height and weight. It is a reliable indicator of total body fat, but it has two limitations: It may overestimate body fat in athletes and others who have a muscular build, and it may underestimate body fat in older persons and others who've lost muscle mass.


Click here to calculate your BMI.


Step 4: Don't punish yourself for an occasional overindulgence.


Just think of it as one big meal (or one big piece of chocolate cake), not a mortal sin. Tomorrow's a new day.


Step 5: Enjoy eating.


This is the most important step of all. Look at your diet not as a set of don'ts, but as a set of dos. Do enjoy a wide variety of foods such as tasty fruits and grains. Do indulge yourself with a luxurious restaurant meal occasionally. Do eat with passion, chewing slowly and savoring every flavor.


Step 6: Use information from the USDA to learn how to eat a variety of foods, including a healthy amount of foods derived from plants.


Using the nutritional information on food labels, adjust your intake of nutrients, calories, fat, salt, and sugar to meet USDA guidelines. The new Dietary Guidelines for Americans 2005 includes simple suggestions for a healthier diet. Pay particular attention to your need for at least nine servings a day of fruits and vegetables; many Americans ignore this aspect of a healthy diet.

Personal Wealth Management

I know I added value for my clients as a stockbroker, a financial planner, an investment management consultant, and a portfolio manager. I have many friends who are highly competent advisors, and they too add value for their clients. However, many of today's investors are looking for something more.


When Aaron, a 56-year-old corporate attorney, became responsible for managing his family's $11 million fortune, he sought guidance from a tax attorney and a stockbroker. "The lawyer emphasized estate tax planning," he recalled. "He set up two charitable remainder unit trusts and a charitable lead trust. With a family limited partnership - another idea of the tax lawyer's - I found myself making choices so that the avoidance of estate taxes seemed to make my life worse instead of better. The broker showed a personal interest in me but not in any way toward furthering my goals or helping me use the money to have a better life. The money seemed like the only goal. He'd say, "˜Buy bonds,' but never made any suggestions about balancing my portfolio." Aaron knew he wanted a comprehensive approach to coordinating his life issues with his personal finances. He also wanted a fee-based service, free from conflicts of interest.


To make life after 50 their best years yet, Aaron and others like him want a new kind of conversation with their advisors. They want to move to the next level, beyond portfolio management and financial planning, and work with an advisor who integrates their life vision and goals with financial coaching and customized investment management. What they're looking for can be found in a relatively new discipline called personal wealth management.


For many years, similar service was available only to some of the world's wealthiest families. They put together teams that combined life vision coaching with all aspects of their personal finances and portfolio management. Today, that service is becoming available to a wider audience. Personal wealth management is defined as the pursuit and management of wealth and abundance in all their forms.


Personal wealth involves more than money and tangible items. It's about wealth in relationships; health; knowledge; and rewarding, fulfilling experiences. If your financial wealth is not managed properly, it can create family dysfunction and unpleasant experiences. However, when managed wisely, money and tangibles are the tools you can use to create freedom and the options to pursue true wealth.


A personal wealth manager guides people through three critical areas:

  • Life vision coaching: The rock and roll generation is beginning to understand that life after 50 includes a number of transitions - each of which affects their personal finances. A personal wealth manager can guide you through the process of creating, monitoring, and achieving your own compelling life vision, and help you make sure you'll have the money to fund it.
  • Customized investment management: Originally, portfolio management was primarily used by institutions. It was a standardized process, where every portfolio was managed the same way. Individuals require a different level of service, focused on the issues most important to them. Customized investment management requires portfolio managers to know their clients personally and help them achieve and manage their wealth and abundance. Individuals want their portfolios customized with attention to their clearly defined personal risk parameters, goals, and objectives.
  • Personal financial coaching: Many people facing life transitions want to participate in an ongoing process encompassing all areas of personal finance. Today more than ever, they want financial coaching from someone who can educate them about investing and personal finance to keep them from making costly mistakes; who can develop personalized strategies that are integrated with their lives; and who will monitor, review, and update those strategies to meet dynamic circumstances. Good coaches do more than advise; they draw out the best from you and work with you to create a higher level of total abundance than you ever could have imagined.

I truly believe the financial services industry will move in this direction if they follow business coach Steve Moeller's advice and move from a sales-centered to a client-centered business model and understand the connection between investments and the quality of people's lives.