Now that the White House will remain in the hands of President Obama, some people are overjoyed and want to party while others are so mad they want to move to another country.  Do whatever floats your boat but regardless of politics, the bottom line is the Obama's have no mortgage, car, insurance, cable, light or gas bill for the next four years with a guaranteed income of at least $2 million dollars.  His losing opponent who was already filthy rich now has even more money than he's ever imagined.  If the President is set for two lifetimes, the Romney's are set for ten meaning they both have a permanent seat at the table of prosperity.   Both candidates went to Harvard, which likely means that's where the kids/grandkids are going and will collect another golden rolodex.  But what about you?  Who's looking out for your seat, table or kids for that matter?

 

Small Business/Stocks

If you're like most, you have to save, budget and invest your way to prosperity.  Nobody needs to tell you how to save.  If you don't have the money don't participate in Black Friday, Purple Tuesday, Burgundy Wednesday or any other colorful shopping day of the week.  Let's focus on investments instead which for me tends to mean small businesses, stocks and real estate.  Thanks to your support of The Investment Forum, I was named as Vice President of the Harvard Business School Club of D.C. earlier this year where I focus on investment topics.  I recently had dinner at the home of Angela Newman, creator of Knock Out Panties.  Never heard of her, don't worry you will.  She has created a new brand of underwear and one of her biggest fans is a lady you probably have heard of named Oprah Winfrey.  An HBS alumnus, Angela will be appearing not only on Oprah but also HSN to promote her new line.  Oprah creates a substantial ROI when she backs products which mean it's a good idea to pay close attention to this company over the next few years.  This information alone is enough to create small business and stock watch opportunities so we'll move on to real estate.

Real Estate

There were tons of books written on real estate investments including my own over the last few years and today not so much.  Here's why.  Easy credit created new lenders yesterday who are out of business today.  What they didn't tell you was you have to get your money up front!  That means don't buy an investment property where you are so-called breaking even.  Factor in inflation and one phone call to repair something and you're already in the red.  Get one that has plenty of equity built in on day one.  That way if the market sours, you have some options.  I learned the hard way that markets can stay irrational longer than you can stay solvent.  This year, I found two such deals. One was a property worth conservatively $2, 600,000 that closed at just over $800k.  The other was worth nearly $4,000,000 that closed at $1,600,000.  Nobody called me and told me about these places and why would they?  I found them by activating Guerilla Grind Research mode but don't worry if you don't have that skill level because the deal of a lifetime comes along every week to those who are looking for it. 

Residual Income

Still, there are people who make tons of money yet are heavily invested in real estate.  Take David Seth Kotkin for example.  He has earned more than $3 billion dollars over his career doing magic.  You may know him has David Copperfield.  While he doesn't need anyone's stream of income today, he knows one day his grandkids will Ferrari themselves to oblivion so he's created residual income via paradise.  He literally drew two lines across the globe and where they intersected he saw magic. It was there that he made a $75 million dollar purchase that provided him 11 islands in the Bahamas and named them The Islands of Copperfield Bay.  For you and 23 of your friends, Mr. Copperfield will do magic for two weeks as long as you're willing to part with $50,000.  Incidentally, he has the best animated website I've seen in years.

 

Plan, Strategize & Execute for 2013

2012 is winding down and if you didn't win the race you started, it's OK, keep running.  This is a perfect time to reevaluate your goals and dreams.  If you know what you want and can't afford it, dig at it anyway.  I promise you can chip away at whatever it is until it becomes a reality.  You can always do more research to figure out ways to get what you want but the best time to start/continue is last night which means you may be a few hours behind schedule. 

I know you didn't win the Powerball $425 million but they'll do another one in a few months and you won't win that one either.  The good news is you don't need to.   You can live a dream life but the most important element is to have a dream.  My new book Slide 68: 86 Your Current Life and Pursue the Lifestyle You've Been Dreaming Of is currently in cover design and upon arrival it will itemize tons of examples of what you need to do to live your wildest dreams.  I've read there's no guarantee a new pile of money will bring happiness but it will bring new friends and foes.  I understand people's argument that money may not buy happiness but I argue that it sure makes life a lot easier and that doesn't necessarily mean millions.   Itemize what you want, research it and go about the business of making it happen.  The money will come and shame on you when it gets here if you blow it because you never planned for it.  Either tell your money which way to go or it will show you were it's been and that may not be the place you wanted.  You have an entire month to think critically about what it is you need to do.  Don't worry about the Obama's, Romney's, NFL, NBA, magicians, etc.  They already got theirs.  Where's yours? Let's work! 

 

Merry Christmas and Happy New Year!
 

From book interviews by the pool of St. Regis in Laguna Niguel to breakfast overlooking Rodeo Drive and lunch with Stefano Ricci - in short, I'm going-going, back-back to Cali!