Do you really think you are Diversified?

Do you think you are an investor? You may be surprised to find out that you are not, and maybe many of you are. My point is most people have a retirement account like a 401k,TSP,Roth IRA and maybe a brokerage account to invest in stocks or you buy some mutual funds. Most people would say you are divesified, I say you are not and I will explain why I think so.

Your stock broker or online broker or bank are always talking about diversification, right. Do you know what true diversification is? No worries if you do not know, because most of your brokers and firms don’t either. If they do know, they will not tell you. Why, because if they tell you what true diversification is you probably wouldn’t turn all your money over to them.

First of all you have to understand there are approximately 4 different asset classes. A business be it online, brick & mortar or franchise. Real estate as in residential, commercial or maybe raw land. Paper is also an asset class, examples: stocks, ETF, mutual fund, your retirement account etc. Finally you have commodities like gold, silver, oil, corn, etc. So, when your broker is telling you to diversify and that he has spread your risk by setting up a well diversified portfolio for you, he has only spread your money over one asset class (paper) and that is not true diversification.

I think, that is why the true entrepreneurs like Jim Rogers, Bill Gates and Henry Ford believe in focusing not diversifying. If you are investing and do not understand diversification in relation to the asset classes, that my friend is a recipe for disaster. If you’ve made mistakes, good, everyone has, but the minute you try to blame or say, well it’s not my fault my broker told me this, you will have learned nothing from that priceless gem, called a mistake.

Also an asset class doesn’t necessarily mean it is an asset, it can be an asset or it could be a liability, but that is for another discussion.

Paying Too Much Tax, Why do you think that is?

Have you sat down and seriously looked at your paycheck and calculated how much tax they take from you, do not forget social security, medicare, sales tax, real estate tax, etc. People have gotten used to paying these over time and have forgotten that is your money and they didn’t ask you if they could have it. Obviously you care about your finances because you are taking the time in reading this article.

A little history on federal income tax. Puritans came over from Britain to not only have the freedom to practice religion but also to escape the over taxation from the King. Now let’s think of this, how long have taxes been in existence? Well taxes on personal income started in 1862 because of the Civil War. Then it was removed in 1872, for 22 years no income tax. However, it was revived again in 1894. Then in 1895 the Supreme Court declared that taxes on personal income were unconstitutional and removed the income tax. Strangely enough in 1913 an amendment was passed specifically the 16th Amendment to the Constitution to make it legal and permanent for our personal income to be taxed. (The Editors, 2007). Coincidence or by design, that in 1913 the same year when the Federal Reserve was created by the banking elite, we get slapped with a tax on our personal efforts. Many say conspiracy; some don’t know who to believe and few will go back to the pages of time where truth will reveal itself.

You say this is not happening, my friend do the research and make your own choice. Listen to their words, they are doing this so you can feel “secure”, giving us fish instead of teaching us how to fish. Do you wonder why we are never tought about money in school, it is easier to take from someone who does not understand what is going on. Why are you working for money when instead you can have money work for you? Why are you making someone else rich when you yourself can be rich? My husband and I were fearful and felt powerless, but we believe that there is no way we will continue to live this way, why would we? We took action; we researched and were disgusted and flabbergasted of the “mafia-like” actions from some of our ignorant congress people and cartels to legally rob us blind. Don’t get me wrong some taxes are beneficial to a “civilized” society. We need firemen, policemen, teachers and the like but what about those other systems that have grotesquely grown and sucked the life out of us?

My friend the only way you’ll be free of the daily grind is if you take action and do the research. Educate yourself and your children so you and your family don’t become “slaves” to the “Information Age”. Don’t fall to the wayside, because the fear of risk only weighs a few pounds but the pain of regret after a long life weighs tons. You have the power to be legally financially free, you just have to believe it and it will be.

The Editors, (2007). “When did the people start paying federal income tax?” Pearson Education
Group. Retrieved from website,