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P.O.O.R. or R.I.C.H. – The Choice is Yours

A Realtor/mentor here at Lifestyles Realty, Bill Edwards, brought two acronyms to my attention today. I love them and wanted to share them with you along with some thoughts about why they ring true for me as both an individual and a mentor.


P.O.O.R.

  • Passing
  • Over
  • Opportunities
  • Repeatedly

R.I.C.H.

  • Residual
  • Income
  • Creates
  • Happiness

With the evidence mounting that 401Ks and IRAs are not effective tools for retiring Americans (90% of Americans are retiring at or below poverty income levels) the P.O.O.R. acronym really hits this on the head.

When the poor and middle class go out to invest, they usually go for the 401K or IRA. They do this not because they know it is such a great thing, but because they don’t know anything else. They are Passing Over Opportunities Repeatedly because they don’t know any better. They don’t even see the opportunities that are all around.

Ask yourself this question. How many different ways do I know to make money? For most people in America, there are only two answers: get a job and trade time for money; and speculate in the stock market. That’s it.

Does it make sense now when I say that most people are in 401Ks and IRAs because they just don’t know anything better? We are not teaching our kids any differently either.

I know a lot of millionaires, and guess what none of them have? You got it, 401Ks and IRAs. And guess who these plans where designed for? They were designed for the rich, high-income earners, not the middle class or poor. It was designed as a tax dodge for the wealthy.

Then why don’t the wealthy use these plans? It is because the wealthy know many different ways to make money, not just two. They also know one of the most important things about wealth that the poor and middle class don’t. The people who retire in the top 10% of America build passive income streams, they do not try to save their way to retirement.

The people who retire poor have a math equation that they do. It involves a lot a speculation.

First they speculate on how long they are going to live. Second they speculate how much money they will need each year to live. Then they speculate on what their health care cost will be and so on and so on. Do you see the problem here? It is all guess work.

What the 10% who retire wealthy do is quite different. They figure out their monthly expenses for everything from health insurance to housing and go out and produce enough investment income that it exceeds that number.

And are you ready for this? Since the income is permanent, they don’t have to guess how long they will live or anything else.

R.I.C.H. Residual Income Creates Happiness

Does it make sense now why these two acronyms are so powerful together? P.O.O.R. and R.I.C.H.?

This tool may seem simple, or even silly, but I like it. I am going to share it on the radio shows and every where I can if it will help Americans understand the difference between what works and what is failing in America.

Go out today and start building some residual income for your family and get in that top 10%.