Dear Reader,

True wealth — the type of financial prosperity that will outlive you — comes from income.

One of the biggest advantages that the wealthy have is that they are already rich. Unlike the typical investor, they aren’t focusing on how to flip an investment. Instead, they are able to focus on just enjoying the long-term cash flow.

Here is what I mean: the average person is focused purely on speculation. Whether it’s buying individual stocks or a mutual fund in their 401(k), they are essentially “traders” that are hoping to buy now and sell to someone else in the future at a higher price.

At the core of this emotional trade is the sense of urgency to get rich, which is what makes people buy the wrong stocks or funds, sell at the worst possible times, and have no real commitment to the underlying businesses these publicly-traded companies represent.

A wealthy investor doesn’t need to make a fortune next week. Instead, they collect dividends for decades, compound their wealth, and enjoy the real income growth from their investments.

I like speculation as much as anyone else, but it needs to be capped to a small percentage of your liquid investments – we suggest around 5 to 10%.

By focusing on income both in and out of Wall Street, you can truly invest and have the same mindset of the rich.

Have a great Sunday!

Daniel Ameduri