Health Benefits of Eating 100 Percent Cacao

100% cacao or dark chocolate with at least 70% cacao is ‘good for you’ When it comes to the excellent health benefits that come from the 100 percent cacao bean – the scientific evidence couldn’t be stronger in its favor. 100 percent cacao protects against everything from high blood pressure to heart disease and it’s full of antioxidants.

Cocoa powder is made from cocoa beans, which come from the plant Theobroma cacao L. Cocoa beans are the primary ingredient in chocolate, but they can also be ground into cocoa powder. The powder provides many potential health benefits.

Health Benefits

Cocoa powder provides tons of benefits, especially if your powder is at least 72% cocoa. Here’s a look at some of the health benefits of cocoa powder:

Impact the positive benefits of the 100 percent cacao. In short, dark chocolate (the darker the better!) is great for you.   Here’s a breakdown of the science behind the cacao bean:

Full of Protective Antioxidants

The Journal of the American Medical Association reports that 100 percent cacao is absolutely packed with antioxidants. Antioxidants bind to what are known as ‘free radicals,’ destructive molecules that are implicated in heart disease and other ailments, and decommission them. “Our findings indicate that milk may interfere with the absorption of antioxidants from chocolate,” reads the AMA research, “And may therefore negate the potential health benefits that can be derived from eating chocolate.”

The proof is in this study: a group of test subjects were given a 100 gram chocolate bar every day, but the contents of the chocolate varied. On different days they each ate either 100 grams of dark chocolate by itself, 100 grams of dark chocolate with a small glass of whole milk, or 200 grams of milk chocolate by itself. Afterwards, the scientists measured the amount of antioxidants in their blood. Those who ate the dark chocolate alone had the most total antioxidants. And they had higher levels of epicatechin, a particularly healthy compound that is found in 100 percent cacao. The milk chocolate eaters had the lowest epicatechin levels of all.

100 Percent Cacao Chocolate Also Lowers High Blood Pressure

In one excellent study, subjects with high blood pressure were broken into two groups. Every day for two weeks, they all got a 100-gram chocolate bar (lucky test subjects!) Half the patients got dark chocolate and half got white chocolate. Those who ate dark chocolate had a significant drop in blood pressure (by an average of 5 points for systolic and an average of 2 points for diastolic blood pressure). Those who ate white chocolate saw no benefits.

Indeed, 100 percent cacao chocolate is so healthy that the University of Michigan’s “Healing Food Pyramid” includes it as a key component. As they explain, 100 percent cacao boasts all of these benefits:

  • Contains flavonoids called procyanidins & epicatechins; flavonoids are part of a group of antioxidants known as polyphenols and are found in a variety of foods including dark chocolate, tea, and various fruits and vegetables
  • Decreases LDL (“bad”) cholesterol oxidation
  • Reduces the risk of blood clots
  • Increases blood flow in arteries and the heart
  • May improve mood and pleasure by boosting serotonin and endorphin levels in the brain
  • Regular intake is associated with better cognitive performance in the elderly
  • Contains a number of minerals, including calcium, magnesium, and potassium

 


References:

  1. https://paleoproteinbrownie.com/pages/the-health-benefits-of-eating-100-percent-cacao-chocolate
  2. https://www.webmd.com/diet/health-benefits-cocoa-powder

Regular Exercise Is Essential for Healthy Aging

“Exercising regularly, every day if possible, is the single most important thing you can do for your health. In the short term, exercise helps to control appetite, boost mood, and improve sleep. In the long term, it reduces the risk of heart disease, stroke, diabetes, dementia, depression, and many cancers.”  ~ Harvard Medical

Getting and staying in shape is just as important for seniors as it is for younger people.

Regular physical activity or exercise helps maintain a healthy blood pressure, keeps harmful plaque from building up in your arteries, reduces inflammation, improves blood sugar levels, strengthens bones, and helps stave off depression, according to Harvard Medical. In addition, a regular exercise program can make your sex life better, lead to better quality sleep, reduce your risk of some cancers, and is linked to longer life.

Seniors stayIng physically active throughout the day by taking the stairs, doing yard work, and playing with your grandkids is vitally important.Hundreds of studies conducted over the past 50 years demonstrate that exercise and staying physically active helps you feel better and live longer.

To change the way you experience exercise, you can follow these tips to make workouts more enjoyable.

1. Mix it up. Change the activities you’re doing and the amount of time spent on each. Sign up for a Pilates class or try tai chi. Even a change of scenery can keep you motivated and active. For example, try a long weekend hike in the woods instead of some shorter neighborhood walks during the week. Choose combinations and activities that appeal to you. Whatever you choose, it’s best to be active at least three to six days a week.

2. Keep moving. Look for ways to add activity and recreational exercise to scheduled activity time—an extra lap around the mall when you’re shopping, some stair climbing, or a Saturday morning bike ride.

3. Wear a pedometer and heart rate monitor. A step-counter can up the ante on exercise, according to a 2018 review of six studies. Over all, those who wore a pedometer raised their physical activity by up to 3,000 steps a day compared with those not using a pedometer. In a classic review of 26 studies, published in The Journal of the American Medical Association, in addition to taking more steps a day, pedometer wearers lowered their systolic blood pressure by 3.8 points and lost weight compared with nonwearers. Setting a step goal counted for a lot. Those who did so significantly increased activity; those who didn’t generally remained at baseline.

A heart rate monitor (HRM) can help you exercise more effectively and efficiently. Heart rate monitors measure your heart rate while working out, which can help you reach your target rate safely and efficiently without exceeding your maximum heart rate. Exercise has dramatically different effects on the body depending on how high you push your heart rate and for how long. Training intelligently means using heart rate data to guide your workouts. Sometimes you might want to keep your heart rate relatively low to burn fat or pace yourself for a longer workout, but other times you might want to push it higher to build stamina. Heart rate monitors help you learn more about your level of fitness, train more effectively, and track your progress.

4. Plug in. Turn on your computer and power up with the great range of individual exercises and workouts from these organizations:

  • The American Council on Exercise offers an extensive library of exercises sorted by ability level, muscles targeted, or equipment needed, at www.acefitness. org/exerciselibrary. You can also view selected exercises in motion.
  • The Centers for Disease Control and Prevention posts video clips describing intensity levels as well as aerobic and strength exercises for home and gym. Easier variations on strength exercises are included. Go to www.cdc.gov/physicalactivity/ everyone/videos.
  • Collage Video sells a wide range of exercise videos. Find them at www.collagevideo.com.

5. Rise to the challenge. If your workouts aren’t challenging or interesting enough, expand your horizons by focusing on both exercise and healthy eating. The Presidential Active Lifestyle Award, at www.health.harvard.edu/PALA, encourages you to meet minimum physical activity requirements and also set healthy eating goals over the course of eight weeks, because it takes both to lead a healthy lifestyle.


References:

  1. https://www.health.harvard.edu/topics/exercise-and-fitness
  2. https://www.health.harvard.edu/exercise-and-fitness/starting-to-exercise#excerpt

 

U.S. Banking Systemic Risks

“This isn’t the start of a banking crisis,. It’s markets waking up to the fastest rake-hike cycle since the 1980s — and the growing risk of recession.” – John Authers and Isabelle Tanlee

The Federal Reserve’s monetary actions have been a financial and economic rollercoaster for America.  They have printed trillions of $US dollars, insisted that inflation was transitory, suddenly raised federal fund interest rates, and created conditions that precipitated an economic crash. Banks, real estate, and highly leveraged businesses are all facing tough times ahead.

US banking system as a whole is solid, but that does not mean that every regional and community bank is strong. Some banks are sitting on big unrealized losses on loans and securities. They don’t appear on the balance sheet because loans and securities are held at book value and not marked to market (or current market) value.

Banks of regional and community bank customers have been withdrawing money from these smaller regional banks and moving their funds to perceived safe alternatives such as larger banks and/or investing in money markets and Treasury Bonds.

Yet, President Biden administration’s actions of implicitly guaranteeing all deposits have not eliminated completely the threat to the financial system. Due to the volatility in U.S. Treasury bond yields after the the prior protracted period of leverage-enabling policy, the most vulnerable currently are those vulnerable to both interest rate and credit risk.

Contagion risk and the systemic threat can be easily contained by careful balance sheet management and avoiding more policy mistakes.  However, it is believed that customers may leave smaller regional banks for larger ones as they associate the former with risk in the wake of Silicon Valley Bank’s failure. The flow of deposits will be a key measure of the public’s confidence in regional banks over the next few weeks. We also expect to see more flows into money market funds from bank accounts as investors seek to not only earn higher yields but also move some money away from the banking system as a whole, in the short term.

Creating a banking system where all uninsured deposits (greater than $250K) become fully insured through the FDIC or taxpayers also poses systemic risks.


References:

  1. https://www.lazardassetmanagement.com/us/en_us/references/banking-update/commentary

Required Minimum Distribution (RMD)

Retirement savers squirrel away money into tax deferred retirement accounts for decades, and with the power of compounding, these accounts can provide their owners with bountiful nest eggs for their later years. But eventually the Internal Revenue Service (IRS) is ready for those mature savers to start taking out some of their nest egg’s yield and give its share through taxes.

As you near your 70s, you need to be prepared for when required minimum distributions from your retirement accounts kick in. “The RMD is something the government plans for us — on their schedule, not yours,” said Maggi Keating, CFP®, a financial planner at FBBCapital Partners.

Many savers have amassed hefty pretax retirement account balances, and RMDs are calculated off those balances. RMDs could spike you into a higher tax bracket as they add to your ordinary taxable income, which may already include retirement pay, such as a pension, and Social Security, among other sources of retirement income. Plus, if you fail to take out the right amount, you can incur a penalty from the IRS.

“It’s really expensive to not be aware of them,” said Tim Steffen, CPA/PFS, CFP®, director of tax planning for Baird, a wealth management firm.

Understanding the rules for RMDs not only helps you avoid trouble with the IRS, but that knowledge can also present strategic opportunities to make the most of your nest egg, and in some cases, even keep your tax tab to the IRS in check.

The federal government raised the starting age for RMDs to age 72 from age 70½, and the new SECURE Act 2.0 law further raises the age original owners of retirement accounts must begin taking RMDs.

No matter the starting age, for your first RMD only, you get an option to delay taking it. You can take the first RMD by the end of the year in which you reach RMD age. Or you can wait to take it until April 1 of the year following that birthday (that April 1st is known as your required beginning date, or RBD).

To calculate each RMD, divide the account balance as of Dec. 31 of the previous year by an IRS distribution period factor (found in life expectancy tables in IRS Publication 590-B) based on the age you will turn on your birthday in the current year.

Let’s say you turned age 72 in 2022 and your IRA was worth $1 million at the end of December 2021. You consulted Table III (Uniform Lifetime), and divided your prior year account balance by 27.4 — the factor for age 72. Your first RMD would have been $36,496, regardless of whether you took it in 2022 or chose to delay it until April 1, 2023.

Your second RMD would use the account value as of Dec. 31, 2022, and the distribution period factor for age 73, which is 26.5. Say your IRA grew back to $1 million by year-end 2022. Your second RMD would be $37,736. (Even with SECURE Act 2.0, people who turned 72 in 2022 still must take their first RMD by April 1, 2023.)

You’ll want to see if spreading those two RMDs over two years is more advantageous for you, instead of taking the total of the RMDs in one tax year, or vice versa. If your income will be lower in the second year, doubling up might not be an issue.

Note that you can always take more money out than the RMD, but don’t take less. If your RMD is $30,000, but you only take out $10,000, for instance, you would be subject to a penalty of a percentage of $20,000 you didn’t take. The new SECURE Act 2.0 law reduces the penalty from 50% to 25%. That penalty goes down to 10% if you correct the failure to take an RMD in a timely manner.

Be sure to check where April 1 falls on the calendar. Steffen warns that this deadline may not extend if the date falls on a weekend or holiday, like the regular federal tax return deadline of April 15 does. In 2023, the federal tax deadline shifts to April 18 for most federal taxpayers. “But April 1 in 2023 is a Saturday, and it’s unclear if you would get an extension to April 3,” Steffen said. “It’s best to plan early and not push the deadline.”

Distribution Rules
Original owners of retirement accounts are subject to RMDs from traditional IRAs and employer-sponsored retirement accounts, such as Thrift Savings Plans and traditional 401(k)s. RMDs also apply to Roth TSPs and Roth 401(k)s, although that will go away in 2024 as a result of the SECURE Act 2.0 law. For traditional tax-deferred retirement accounts, you’ll owe ordinary income tax on the RMD.

Roth IRAs do not have RMDs for original owners; the money can sit in that account growing tax free for as long as you like. Another wrinkle: If you hold multiple traditional IRAs, you need to calculate the RMD amount for each one, but you can take the total amount out of just one IRA. If you hold multiple employer-sponsored retirement accounts, you need to calculate and take an RMD out of each account.

You can opt to take your RMD in a series of installments. Some people like to take monthly or quarterly withdrawals; others like to take the RMD out all at once. You can choose to take it all out early in the year, or later in the year. But don’t wait until the last minute — consider taking your full RMD no later than early December to allow time for any custodian hiccups.

Smart RMD Moves

Delving further into the rules may give you opportunities to maximize your nest egg. The following moves can help take the sting out of RMDs.

  • Continue working. More Americans are working longer these days, and it’s not uncommon for seventysomethings to be in the workforce. If you are still working past RMD age and are not a 5% owner of the company, you can push off RMDs from your current employer-sponsored retirement account until the year you fully retire. But Steffen notes you need to work the whole year. Let’s say you retired in early January 2023 at the age of 75. You had delayed RMDs from your employer plan because you were working. But even though you missed your original start date based on age, you still have the option to delay your first RMD from the employer plan until April 1 following the year you stopped working. So while that first RMD is for 2023, you could wait until April 1, 2024, to take it. But be aware that working doesn’t push off your RMDs from traditional IRAs. You must start taking those once you hit the age threshold, regardless of employment. There is a workaround, though: If your current employer allows you to roll traditional IRA money into your employer-sponsored retirement account, you can roll in the money to avoid RMDs until you retire.
  • Give to charity. If you are charitably inclined, a qualified charitable distribution, or QCD, may be a good fi t for you — and it can cut your tax bill, too. Starting at age 70½, an IRA owner can give up to $100,000 a year directly to charity from their IRA. The QCD amount is not taxable, even for taxpayers who take the standard deduction. If you no longer itemize, QCDs can be a great way to give to charity and still get a tax break. Once you hit your RMD age, there’s an even bigger bang for the buck. A QCD can do double duty as your RMD. So instead of having taxable RMD income, the QCD will satisfy your RMD free of tax. “It is not considered income at all,” said Keating. Just be sure to take a QCD first, because once you are subject to RMDs, the first dollars that come out of your account each year are considered to be part of your RMD until the full amount is taken. So if your RMD is $30,000, make sure you do a QCD before you take that full amount out; you could do a QCD of $30,000, for instance, and satisfy your RMD all at once, or do a QCD of, say, $10,000 and then take out the remaining $20,000 to satisfy the rest of your RMD. If you take out your full RMD first, you can still do a QCD, but it won’t pull double duty as your RMD.
  • Do an in-kind transfer. Even when the market is down, typically you must still take your RMD. But if you like the investments in your retirement account and don’t need the cash to live on, ask your account custodian to transfer shares “in kind” to a taxable brokerage account in an amount that is equivalent to your RMD amount. You still pay ordinary income tax on your RMD, but moving the shares to a taxable brokerage account gives them the opportunity to grow when the market bounces back. Your basis in the shares will be their value on the date of transfer. After shares are transferred in kind, be sure that the closing price of the trade equaled or exceeded your RMD. If not, transfer more shares or cash from your retirement account to fully meet your RMD amount for the year.
  • Avoid paying twice. If you stashed nondeductible contributions into your IRA, you can get a tax break when money is withdrawn. Ideally, you kept good track of your nondeductible contributions on Form 8606 over the years, which documents the basis. “It’s entirely up to the taxpayer to track what is tax-free,” Steffen said. When you distribute money from the retirement account, you can use the pro rata rule so you don’t pay tax on those nondeductible contributions twice. For instance, let’s say $50,000 of a $500,000 IRA are nondeductible contributions, or 10%. If your RMD is about $20,000, $2,000 — 10% of the RMD — would be tax free, and you would pay ordinary income tax on the remaining 90%. Every year, you recalculate the amount of nondeductible contributions left and apply the new percentage to your distribution. Be aware that if you hold multiple traditional IRAs, you must figure out the ratio of all your nondeductible contributions to your IRA balances in total.]
  • Factor in your spouse’s age. Minding the gap can pay off when it comes to RMDs and younger spouses. If you are hitting RMD age but your spouse is more than 10 years younger and the sole beneficiary, you are eligible to take out less since your spouse has a longer life expectancy. In this situation, the account owner can use Table II (Joint Life and Last Survivor Expectancy) in IRS Publication 590-B to calculate the RMD. Let’s say you turn 74 in 2023, and your spouse turns 62. Using both of your ages in 2023 when consulting Table II, you find the factor to divide your account balance is 27.0. For a $1 million IRA, your RMD would be $37,037. If you had to use the factor based on only your own age, your RMD would be about $2,179 higher.
  • Consider a Roth conversion. One thing you can’t do with an RMD is convert it to a Roth — the IRS doesn’t allow it. But after you take your RMD, you can convert any or all of the remainder of your traditional retirement account to a Roth IRA. Keep in mind that a Roth conversion will add to your taxable income for that year. But any money converted to the Roth would no longer be subject to RMDs for the original owner of the account, and a partial conversion reduces the amount left in the traditional IRA — a reduced balance lowers future RMDs.

References:

  1. https://www.moaa.org/content/publications-and-media/news-articles/2023-news-articles/finance/understanding-the-abcs-of-rmds/

Bond Investing

When investing in bonds, it’s important to:

  1. Know when bonds mature. The maturity date is the date when your investment will be repaid to you. Before you commit your funds, know how long your investment will be tied up in the bond.
  2. Know the bond’s rating. A bond’s rating is an indication of how creditworthy it is. The lower the rating, the more risk there is that the bond will default – and you lose your investment. AAA is the highest rating (using the Standard & Poor’s rating system). Any bond with a rating of C or below is considered a low quality or junk bond and has the highest risk of default.
  3. Investigate the bond issuer’s track record. Knowing the background of a company can be helpful when deciding whether to invest in their bonds.
  4. Understand your tolerance for risk. Bonds with a lower credit rating typically offer a higher yield to compensate for higher levels of risk. Think carefully about your risk tolerance and avoid investing solely based on yield.
  5. Factor in macroeconomic risks. When interest rates rise, bonds lose value. Interest rate risk is the risk that rates will change before the bond reaches its maturity date. However, avoid trying to time the market; it’s difficult to predict how interest rates will move. Instead, focus on your long-term investment objectives. Rising inflation also poses risks for bonds.
  6. Support your broader investment objectives. Bonds should help diversify your portfolio and counterbalance your investment in stocks and other asset classes. To make sure your portfolio is balanced appropriately, you may want to consult an asset allocation calculator based on age.
  7. Read the prospectus carefully. If you’re investing in a bond fund, be sure to study the fees and analyze exactly what types of bonds are in the fund. The name of the fund may only tell part of the story; for example, sometimes government bond funds also include non-government bonds.
  8. Use a broker who specializes in bonds. If you’re purchasing individual bonds, choose a firm that knows the bond market. Use FINRA BrokerCheck to help find trustworthy professionals that can help you open a brokerage account.
  9. Learn about any fees and commissions. Your broker can help break down the fees associated with your investment.

What are the benefits of investing in bonds?

Bonds offer a host of advantages:

  • Capital preservation: Capital preservation means protecting the absolute value of your investment via assets that promise return of principal. Because bonds typically carry less risk than stocks, these assets can be a good choice for investors with less time to recoup losses.
  • Income generation: Bonds provide a fixed amount of income at regular intervals in the form of coupon payments.
  • Diversification: Investing in a balance of stocks, bonds and other asset classes can help you build a portfolio that seeks returns but is resilient through all market environments. Stocks and bonds typically have an inverse relationship, meaning that when the stock market is down, bonds become more appealing.
  • Risk management: Fixed income is broadly understood to carry lower risk than stocks. This is because fixed income assets are generally less sensitive to macroeconomic risks, such as economic downturns and geopolitical events.
  • Invest in a community: Municipal bonds allow you to give back to a community. While these bonds may not provide the higher yield of a corporate bond, they often are used to help build a hospital or school or that can improve the standard of living for many people.

What are the risks associated with investing in bonds?

As with any investment, buying bonds also entails risks:

  • Interest rate risk: When interest rates rise, bond prices fall, and the bonds that you currently hold can lose value. Interest rate movements are the major cause of price volatility in bond markets.
  • Inflation risk: Inflation is the rate at which the price of goods and services rises over time. If the rate of inflation outpaces the fixed amount of income a bond provides, the investor loses purchasing power.
  • Credit risk: Credit risk (also known as business risk or financial risk) is the possibility that an issuer could default on its debt obligation.
  • Liquidity risk: Liquidity risk is the possibility that an investor might wish to sell a bond but is unable to find a buyer.
  • Stocks tend to earn more money than bonds. In the period 1928-2010, stocks averaged a return of 11.3%; bonds returned on average 5.28%.
  • Bonds freeze your investment for a fixed period of time. For example, if you buy a 10-year-bond, you can’t redeem it for 10 years. This creates the potential for your initial investment to lose value. Stocks, on the other hand, can be sold at any time.

You can manage these risks by diversifying your investments within your portfolio.


References:

  1. https://www.blackrock.com/us/individual/education/how-to-invest-in-bonds

Mindset of Building Wealth

Your mindset is a set of beliefs that shape how you make sense of the world and yourself. It influences how you think, feel, and behave in any given situation or circumstance. It means that what you believe about yourself impacts your success or failure or happiness or wealth.

Simply, your beliefs shape your mindset. Mindset is a collection of beliefs and thoughts. It is a way of thinking:

“Mindsets are those collection of beliefs and thoughts that make up the mental attitude, inclination, habit or disposition that predetermines a person’s interpretations and responses to events, circumstances and situations.”

According to Stanford psychologist and best selling author Dr. Carol Dweck, your beliefs play a pivotal role in what you want and whether you achieve it. Dweck has found that it is your mindset that plays a significant role in determining achievement and success.

Mindsets can influence how people behave in a wide range of situations in life. For example, as people encounter different situations, their mind triggers a specific mindset that then directly impacts their behavior in that situation.

Your mindset plays a critical role in how you cope with life’s challenges. With a positive growth  mindset, adults are more likely to persevere in the face of setbacks. Instead of throwing in the towel, adults with a positive growth mindset view it as an opportunity to learn and grow.

In short, your mindset not only impacts how you perceive the world around you, but also how you see and believe in yourself and your abilities.

Gratitude Mindset

It’s important to be grateful for everything you have in life. For having a roof over your head, a paying job, a family, a good supply of food and water. Simply, gratitude is the “affirmation of goodness”.

Gratitude is a super power! It has been scientifically proven to be good for your health, your well-being, your building wealth, and your relationships.

Psychology research has demonstrated that practicing gratitude is good for improving your health, your well-being, your building wealth, and your relationships.

We often forget to be thankful for what we have…have a mindset and attitude of gratitude.

If you can be grateful for what you have, you won’t take anything or anyone for granted in your life, and you’ll be wealthier and happier in the long run.

Your mindsets have a lot to do with self-confidence, self-esteem as well as self-development and the desire for self-improvement and being grateful.


References:

  1. https://sourcesofinsight.com/what-is-mindset/
  2. https://www.verywellmind.com/what-is-a-mindset-2795025
  3. https://wealthygorilla.com/15-different-types-mindsets-people/

Warren Buffett’s top 10 rules for success

Billionaire investor Warren Buffett, “Oracle of Omaha, has a set of rules, principles and philosophies when it comes to making a decision, investing, managing the business and also building success in life. And his success principles can be summarized with the top 10 rules below.

“Don’t be afraid to give up the good to go for the great.” – John D. Rockefeller.

  1. Find Your Passion. Almost every successful person agrees that finding and following your passion is something important if you want to produce an amazing result in life. There is no guarantee that you will be able to find your passion in your first job, but you have to keep digging until you find it. Steve Jobs once gave a commencement speech at Stanford University and said: “Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle. As with all matters of the heart, you’ll know when you find it.” The only way you can produce outstanding work is through passion. Without passion, you will do things with the half-hearted approach and there is no way you can become the best this way. Thus, find your passion, do what you love and you will be able to produce amazing success in life when you do.
  2. Hire Well. If you want to be a billionaire, there is no way you can go about it all by yourself, you need to have a great team. And to have a great team, you must learn to hire well. Always remember that you cannot succeed alone in this world. You need other people’s help to bring you the success you want. And your people will be your greatest assets. According to Buffett, he emphasizes on 3 qualities when he hires, and they are, integrity, intelligence, and energy. Buffett also said that out of those 3 qualities, integrity comes first. He also jokingly said that you do not want to hire someone who has no integrity but has a lot of intelligence and energy. Integrity comes first. Without integrity, other qualities do not matter much
  3. Don’t Care What Others Think. It is important not to care what others think. And this is extremely important because you do not want to take into consideration what other people have to say, because you will be influenced and will never be able to hold onto your investing principles. If you was to listen to what others said, he will become like most people, living an average life. When it comes to achieving the success you want and living your dreams, there will be people telling you that achieving what you want is impossible and simply suggest you get a real job. Never listen to the naysayer. You have to follow your heart and do what you think is right. Circle of Competence” is what he has used as a way to focus his investment on only operating in areas he knew best. The concept basically explains that every one of us has developed useful knowledge on certain areas, and what we need to do is to operate in these areas that we are good at. When you care too much about what others think and say about you, you will restrict your own freedom and it will prevent you from living your best life according to your own terms.
  4. Read, Read, Read – The more you read, the smarter you will get and the more knowledge you will gain. When you become more knowledgeable, you will be able to make a better decision that will lead you to the success you want. Highly successful people are great readers and you have to adopt the same habit. Commit to reading every single day. If you find that you are busy and do not have much time to read, start small and read for 15 minutes a day. If possible, go for more. Read at least an hour a day. You can wake up earlier and make time for reading or you can make good use of your commuting time for reading. You need to be a lifelong learner and when reality changes, you need to change and adjust you strategy.
  5. Have A Margin of Safety – The concept of “margin of safety” is easy to understand, and requires great discipline and patience.  Buffett uses the metaphor of driving across a bridge to explain this concept. When you build a bridge, you insist it can carry 30,000 pounds, but you only drive 10,000-pound trucks across it. You have a margin of safety of 20,000 pounds. And when it comes to investing, you will never buy a business worth $50 million for $60 million. You will buy the business worth $50 million at a price below that to ensure there is a margin of safety. This concept is essential in the principle of value investing. It helps investors make better and wiser decisions before jumping into buying a stock. When an opportunity is presented, evaluate using the margin of safety concept before you decide.
  6. Have A Competitive Advantage – Buffett said that capitalism is all about somebody coming in and trying to take the castle. And what you need for your castle is a moat to protect your castle from your enemies. In the business world, your business needs to have a durable competitive advantage to survive for the long term. Today, the competition is tough and people can copy exactly what you do and produce the same product and put you out of business. This is why having a competitive advantage to protect your business like a moat protecting a castle is important. Buffett said that he will invest in businesses that have a competitive advantage because he wants to make sure that the business will still be around after years down the road.
  7. Schedule Your Personality – Build your business around your personality. In order to succeed in what you do; you must find your pace and your sweet spot so that you will enjoy your work and perform at your best. Buffett loves reading and he chooses to read to improve his knowledge, and then he acts as the strategist and manages his business from backstage. He organizes his business according to his personality. If you love drinking a cup of coffee before you start your work, do it. Organize your workspace according to your own taste, that will make you more productive. The key is to play to your strength and personality so that you can become the best at what you do.
  8. Always Be Competing – Buffett believes that one of the most common business killers is complacency. When people fall into their comfort zone and fail to improve their competitiveness, their businesses will eventually fail or be taken over by the competitor. And to stay ahead of the game, you must always be competing. Every business has problems in every industry. The key to making a business thrive is its ability to compete and stand out from the rest. And this is why you invest in a business that continues to thrive because you are always competing. Therefore, never rest on your laurels, keep competing, keep improving and innovating in your business.
  9. Model Success – There is no way you can succeed alone in this world. If you want to achieve great success in life, you need others. and, you must model other successful people, or better yet, get yourself a mentor. Take a look in the sports industry, every outstanding and professional athlete has a coach. Tiger Woods has a coach. Michael Jordan has a coach. You need a coach to guide you on the journey to success. Your coach can also remind you of your goals and inspire you to do your best. In business, having a mentor is said to be one of the most important keys to success. Success leaves clues and what you need to do to produce a great result is to model the success of others. Learn and study from others, and then learn, grow and improve yourself to become better.
  10. Give Unconditional Love – Finally, the most powerful force in this world is unconditional love. And everyone who wants to achieve success in life gives unconditional love.
  11. Bonus: Power of Compounding – “The power of compounding your money inside a successful business for a long time is nearly unmatched in capitalism.”

The final rule for success by Warren Buffett has a lot to do with your personality and beliefs. Being a philanthropist, Buffett believes in helping society and giving back to the world. This could be the reason why he has been so successful. He is always looking to help and to give, rather than to take. When you operate in a giving and grateful mindset, you will put your customers first, and this is what makes a business enterprise thrive


Source:  https://www.thewisdompost.com/billionaires/warren-buffett/warren-buffetts-top-10-rules-success/1575

The Golden Rules to Building Wealth

Building Wealth, along with good health and emotional well-being, can be viewed as an important component for a happy life.

However, it is important to remember that wealth cannot by itself buy or guarantee happiness or love, but it can help us get peace of mind. It can offer us the freedom to do what we enjoy (which can lead to happiness), and let us take care of our physical, emotional and mental well-being.

Wealth means having enough personal capital to achieve financial freedom, to do what you want, when you want.

Here are three keys to successfully building wealth:

    • Wealth Building Mindset: Life is measured by the value we create for others –our family and friends, stakeholders, and society at large – and the useful things we do in life. For instance, Warren Buffett still makes a lot of personal wealth each year but donates 99 percent of it to the Bill and Melinda Gates Foundation. Wealth gives us the freedom to make the world (or even a tiny portion of it) better. It enables us to let our family members live a life of comfort. Yet, creating wealth is not an end in itself, but a means to an end, which is to make life better for ourselves and others and for making an impact in the world.
    • Continue to learn and grow (know your “circle of competence”): Just because you invested in the market doesn’t mean the market is obligated to generate wealth for you. It’s your duty to improve yourself continuously. The best ways to do this are to study the history of investing, to learn the strategies of successful investing and to sharpen your circle of competence. The market functions to an extent like Nature does – according to its own rules, regulations, laws and sentiment. It’s your duty to build the required skills to succeed in the market and build your “circle of competence,” a term coined by Warren Buffett. In his 1996 letter to shareholders, Buffett explained: “You don’t have to be an expert on every company, or even many. You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital.” A circle of competence is a subject area that matches our skill or expertise. To be successful, we must leverage it, which means we must focus on depth in specific areas that we understand well instead of superficial breadth. Understanding your circle of competence helps you avoid problems, learn from others, and make better decisions. That’s when the market yields to you and lets you generate wealth.
    • Mindset, Focus, Patience and Discipline are quintessential traits: The market is volatile and will always remain volatile. And, you won’t last in it ifii you cannot handle the market’s volatility and manage your emotions. Doing this means reining in knee-jerk reactions and instead, building long-term perspectives and sticking to them. This is why mindset, focus, patience and discipline are your best friends if you want to generate long-term wealth. You must become immune to impulsive emotions of fear and greed, learn to temper the craziness around you, and to focus on the long term. When you learn to rein impulsive emotions, you build: 1) The astuteness to identify valuable businesses worth investing in, 2) The discipline to buy them at attractive prices, and, 3) The wisdom to stay the course when the majority of the market changes direction impulsively.

It’s been the patient, disciplined and focused on the long term investors that has had the best success building wealth over the long term


References:

  1. https://www.smevalueadvisors.com/blog/index.php/wealth-creation/

10 Rules of Success According to Oprah

Oprah Winfrey is known as one of the most successful individuals globally and her estimated net worth is almost $3 billion! To her degree of success and power, it took a lot of perseverance and wisdom.

Here are the ten rules of success according to Oprah Winfrey.

  1. Rather than overwhelming yourself with the big picture, ask yourself what the next right move is. It’s easy to feel intimidated by everything on your plate, so instead of facing such an enormous proposition, take things one step at a time. Make the best next move you can, then make the next move, and then the next one, each time going as carefully and as thoughtfully as you can. Success isn’t one giant leap — it’s a series of baby steps. And, if you make one misstep, understand that your life and your career won’t be defined by that one mistake. You have more steps to take, and you’ll arrive at success eventually.
  2. When you see an opportunity, take it. Success has been a result of grace and blessings, but there’s also been opportunity. The key to being successful is to recognize when opportunity is in front of you and seize it.  “Luck is preparation meeting the moment of opportunity,”
  3. Forgive yourself for your past mistakes. You’re not the person you were five, ten, twenty, or more years ago. A lot of wisdom just comes with age, so don’t beat yourself up for youthful transgressions. You didn’t know any better — but you know better now! Look at those past mistakes as teachable opportunities, learn as much as you can from them, and then move forward.
  4. Never stop improving yourself. This means continually working on your personality, your skill set, and your network so that you are in the best possible position to make a difference. You always need to be improving if you want to get ahead. If people are saying that about you, take it as a compliment. You’re doing a lot, and others are noticing.
  5. Go as hard as you can. Recognize and take responsibility that you have control only over your own performance. You can’t control what others are doing. All you can do is the best you know how, all the time. It’s like a race: you just run hard until you read the finish line, and all you can do is make yourself run more quickly, not make your competition run more slowly. That’s what brings you success: building yourself up, not looking behind you to see where your competition is.
  6. Don’t just dream — believe. It’s OK to have big dreams for yourself; we all do. But if you’re going to be successful, you’ve got to do more than dream. You have to believe that the life you aspire to lead will one day be yours. Winfrey always knew that she would live a big, fulfilling life; she had that strong belief in what her future held. Do the same, and hold firmly to that belief, even in the most difficult of times, and you’re likely to get exactly where you want to be.
  7. Remember that people are more alike than they are different. We’re all seeking the same thing, We all want to reach our fullest potential. Sure, we all go about that in different ways, because we all have different skills and different passions, but at the end of the day, we all just want to be true to ourselves and be, the “truest expression” of ourselves.
  8. Find your purpose in life. If you’re going to be successful, you need to figure out why you’re here on Earth. Most entrepreneurs already feel like they know their purpose, but if you don’t, stop! Put everything on pause, take some time for genuine soul searching and self-reflection, and find your purpose. Find your why!
  9. Keep yourself grounded and centered. It’s easy to get lost in your work, and it’s easy to let your ego inflate, but if you keep your focus, stay compassionate, and always seek to understand and connect with others, you’ll improve your chances of success substantially.
  10. Try to remember that everything will be OK. If you’re aiming for big time success, you’ve got to be patient and take the long view. Yes, it’s natural to be a little scared, but never lose faith that everything will work out just fine.

Source:  https://moneyinc.com/10-rules-success-according-oprah-winfrey/