Green - An Embarrassment of Riches: Tapping Into the Worlds Greatest Legacy of Wealth Agora Series

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Copyright 2014 by Alexander Green. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data:

Green, Alexander, 1958-

An embarrassment of riches : tapping into the worlds greatest legacy of wealth / Alexander Green.

pages cm

Includes bibliographical references and index.

ISBN 978-1-118-60882-1 (hardback); 978-1-118-64656-4 (ePDF); 978-1-118-64655-7 (ePub)

1. MoneyMoral and ethical aspects. 2. WealthMoral and ethical aspects. 3. Conduct of life. I. Title.

HG220.3.G737 2014

178dc23

2013024665

This book is dedicated to the memory of Anna Compton Taylor

The good life is a process, not a state of being. It is a direction, not a destination.

Carl Rogers

PREFACE

You may not know it, but you are one of the richest human beings ever to walk the face of the earth. Though you have done nothing to earn or particularly deserve it, you are the inheritor of an incredible legacy of wealth, a genuine embarrassment of riches.

This may seem a bit presumptuous. After all, I probably dont know you personally. And even if I do, I havent taken a peek at your bank accounts, brokerage statements, or 401(k). I havent seen your home, what you drive, or how much you own. And your income, assets, and liabilities are really none of my business. Yet I still know you to be exceedingly rich. If youre skeptical, I understand. Like a lottery winner whose ticket is lost in some upstairs drawer, you cant claim your fortuneor appreciate itif you arent aware of it.

I will make my argument in the Introduction and offer supporting proof in the more than fifty essays that follow. Along the way, youll discover that your life is richer, fuller, more beautiful, and far more fortunate than you previously imagined. If I do my job, you wont only feel wealthier but profoundly grateful.

So let me make my case...

INTRODUCTION

Everyone thinks about money. Few think about it more than I do.

Thats not because Im selfish, greedy, and materialistic. (Okay, maybe a little .) At various times over the past three decades, Ive worked as a research analyst, stockbroker, investment adviser, portfolio manager, and financial writer.

Today, I am the Chief Investment Strategist of the Oxford Club, a private investment club dedicated to helping investors achieve and maintain financial independence. And weve had some success. The independent Hulbert Financial Digest has ranked the investment letter I direct The Oxford Communique among the best-performing newsletters in the nation for more than a decade now.

Wealth, of course, is a subject that interests almost everyone. Money makes things happen; it gives us choices. Since few want to live circumscribed lives, the pursuit of wealth is universal. Money allows us to achieve our dreams, whether you define that as education, opportunity, independence, luxury, security, or peace of mind. Its freedom, power, and opportunity rolled into one. As a result, there is a huge market for financial adviceand Im fortunate to have a few hundred thousand readers who tune in regularly. Almost every day I can be foundeither online or in printweighing in on stocks, bonds, funds, interest rates, currencies, or commodities.

What is the real advantage of all your saving and investing? As I see it, there are three primary benefits:

If you have money, you dont have to worry about it. This isnt guaranteed, of course. Ive known plenty of high-net-worth individuals who agonized over their finances and worried about losing the nest egg theyd taken a lifetime to build. Still, if you have money and manage it conservatively, your worries should be few. Fretting about your investment returns is a lot less stressful than wondering how youre going to make this months rent. Money gives you freedom to pursue your passions. You can spend your days engaged in activities that you find absorbing and satisfying, that you feel youre good ator make you feel like youre doing good. This doesnt just happen in retirement, incidentally. A measure of financial freedom gives you the ability to swap into a new job that may be less lucrative but more fulfilling. Money buys you time with family and friends. Your most valuable resource is your time, not your bank statement. And nothing contributes to personal happiness more than seeing family and friends regularly. Money gives you the wherewithal to go out to dinner with buddies, take a vacation with the kids, or go to the concert with your significant other. In my view, money is put to the best use when it is spent making memories, not loading up on more stuff.

However, financial security remains elusive for many Americans. The 2013 Retirement Confidence Survey (RCS), the longest-running survey of its kind, revealed that the percentage of workers who feel confident they have enough for a comfortable retirement is near record lows. Most Americans have too little in retirement savings and remain pessimistic about the future. In a recent poll by Yahoo! Finance, 41 percent said, The American Dream is lost. Only 45 percent believe their kids will be better off than they are. Other surveys show that a significant percentage of us believe life is tough, the future is dim, and the country is decidedly on the wrong track.

This is understandable in some ways. Our society faces serious problems, including war, disease, corruption, poverty, nuclear proliferation, terrorism, and political dysfunction in Washington. No wonder Americans are in a foul mood, especially if this dour perspectiveone cycled 24/7 by the national mediais an accurate representation of the state of the nation.

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