What’s Your Financial Fluency?

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My friend and partner in Maui Mastermind, just came up with a great quiz to find out your financial fluency. This is the SINGLE MOST IMPORTANT skill you can learn! With financial fluency, you can make money no matter what the market is doing and more importantly, hang on to it with smart decisions. Take the quiz and find out where you are today.

Pop Financial Fluency Quiz

  1. True or False: To become wealthy you need to create passive cash flow.
  2. True or False: The best way to invest is to legally defer paying any taxes until many years later.
  3. The fastest way to create wealth is by:
  4. A. Buying the right stock B. Working for a company that grants stock options C. Investing in real estate D. Building a successful business

  5. In order to be financially responsible, my credit cards should be:
  6. A. Cut up right away B. Paid off first before you invest C. Used wisely to as a potential source of leverage D. Given to your teenage kids to teach them about credit

  7. Which of the following is the highest risk investment:
  8. A. Mutual funds B. Bonds C. Private Placements D. Real Estate E. Starting up your own business

  9. True or False: If I have a properly drafted will created for me by a smart attorney I can avoid probate.
  10. True or False: A single man or woman who is 28 years old with no children or dependents should not buy life insurance.
  11. True or False: It takes more work to be wealthy than it does to be poor or middle income.
  12. The Answers

    Question 1— True or False: To become wealthy you need to create passive cash flow.

    ANSWER: FALSE! This question typically gets most Level Two people so don’t worry if it got you too.

    To become wealthy you don’t just need passive cash flow (which comes from the sale of an asset) but rather you need passive RESIDUAL income.

    This distinction is one of the biggest reasons why so many people fail financially; they follow a plan to “build their nest egg” so they can retire securely. Well building your nest egg is Level Two thinking.

    Level Two people think that the nest egg is the end goal, but net worth (your nest egg) is only a means to an end. The real end is to be able to convert that net worth into passive residual income, not just spend down your net worth and hope to die before you run out of money.

    Actually, this is one of the key distinctions I plan of teaching on at the Financial Fluency workshop because there is a simple five-step progression to move from Level One to Level Three. These same five steps must be followed, in order, for you to achieve your financial dreams.

    Failure to follow this concrete formula leads to financial insecurity and stress.

    The best part is that it’s so simple and straight forward that you’ll get it immediately and be well on your way to stepping up to the next level financially.

    Question 2: True or False— The best way to invest is to legally defer paying any taxes until many years later.

    ANSWER: FALSE! Again, this trips up most Level Two people. They mistakenly think that the best they can do is to defer taxes as long as possible via traditional pension plans and retirement accounts. This is flawed from a wealth perspective.

    Wealthy Level Three people know that the best way to invest is to defer your taxes forever! This is not only possible, but simple, if, and this is a mighty big if, you have been trained on the strategies and techniques that us Level Three folks use all the time.

    For example, there are three concrete tax strategies to avoid paying taxes on your investments forever. (I’ll be doing a whole section of the September Financial Fluency workshop on this very subject.)

    Another consideration is that most people buy the wrong KINDS of assets through their tax deferred retirement accounts! In fact, one key distinction is that there are certain types of investments that you should almost never buy inside your retirement accounts.

    Yet most people blindly follow the middle income financial advice of “socking away” as much money in their retirement accounts as they can. It’s exactly this kind of black and white, uninformed thinking that costs them so dearly when they move to retire. These Level One and Two people were never taught that you also need to plan for your withdrawal of the money someday and how to minimize or better yet neutralize the tax consequences of this.

    Have you ever heard the phrase, “Ignorance is bliss”? Well in the financial world of building wealth, ignorance is financially fatal!

    Question 3: The fastest way to create wealth is by: A. Buying the right stock B. Working for a company that grants stock options C. Investing in real estate D. Building a successful business


    A detailed study of the ways wealthy people have built a fortune fast clearly shows that the fastest path to build wealth is by building businesses. Most of the wealthy hold their wealth in real estate and securities, but they build their wealth by building successful businesses. This is one of the reasons why learning to speak the Language of Business is so critical to your financial success, and why it’s a key part of the Financial Fluency workshop.

    For example, on the second day of the workshop I have created a special 90 minute session where I will show you exactly how a business owner can ten-fold his or her wealth in less than 10 years. This isn’t “pie in the sky” kind of stuff. This is infinitely practical, hard edged, immediately useful information that until now no one has shared with you. I used the exact same strategy myself at age 27 to grow my net worth and wealth over 100-fold in a decade! And you can use the exact same concept to exponentially grow your personal fortune.

    In fact, I remember how at the only other time I taught the Financial Fluency workshop last January, after I finished this special session, one of the participants handed me a short note that simply read, “David, I took one idea from what you just shared and it’s literally going to make me $10 million!”

    And this isn’t unusual. Making money isn’t hard, it doesn’t take long hours, it doesn’t need to happen over 50 years. You can make it happen so much faster. If… If you know what to do and have an accurate map to follow. And, here comes the biggest if of all, if you are willing to invest the energy, time, and money, to become financially fluent.

    It reminds me of a time I went hiking in the woods near a lake in Minnesota. I set off for an “hour” hike, but when I headed for home at the 30 minute mark discovered that I was totally lost.

    Now it so happened that I was on an island in that lake that was only five miles all the way around. So I figured that if I just kept walking eventually I would find my way back to camp. And I did, but not for two more hours! I was totally exhausted!

    Not having an accurate map of the paths I kept heading down dead end trail after dead end trail, only stumbling on camp by luck.

    I think that’s how most people approach financial success. They head out with no map, with no real understanding, and hope that if they just keep walking, eventually they’ll reach their destination.

    I hope that you recognize the insanity of relying on a plan like this. Not only is it so much harder work, but in life you’re not as lucky as I was to be on a tiny island, you’re operating in a great, big world and wandering around and hoping to reach your financial goals by chance is most likely going to leave you exhausted and financially frustrated.

    I believe from the depth of my heart that the best way is for you to pay the price to get the financial training you need UP FRONT! A small investment of time, effort, and money now—invested in your financial education—will repay itself a thousand times over in terms of your wealth and quality of life.

    Question 4: In order to be financially responsible, my credit cards should be: A. Cut up right away B. Paid off first before you invest C. Used wisely to as a potential source of leverage D. Given to your teenage kids to teach them about credit

    ANSWER: C. Level One people use credit as a way to get immediate gratification or as a way to buy today the lifestyle they cannot yet afford. Obviously this isn’t sustainable.

    But the Level Two answer, to fear debt, isn’t the answer either. Level Three people know that using debt as leverage to create wealth is a huge wealth accelerator.

    I remember one Thanksgiving a few years back at my grandparent’s house. We were sitting around the dining room after the evening’s dinner talking. Somehow the subject of debt came up. First my grandparents, then my aunt, then my sisters each said how they had zero debt and how glad they were about that. I smiled and made a joke that I guess I must have been the biggest “debtor” at the table since I owed tens of millions of dollars. Of course, what went unsaid was that I used that debt to own LOTS of great real estate and businesses which had made me quite wealthy.

    You see debt is power, for good or ill. It’s not the debt that is bad, it’s your use of that debt that determines this.

    So getting back to our credit card example, cutting up your card and getting rid of all your debt and credit lines (answer A) is merely a Level Two solution. In fact, you’ll learn at the Financial Fluency workshop (for those of you who will be there) that cancelling your credit cards will cost you tens of thousands of dollars over your lifetime if you’re not careful! It’s actually a huge money mistake millions of people make.

    Paying off your debt before you start to invest (answer B) is also merely a Level Two solution. The problem is something I call Financial Diets™. While I plan on spending a focused session on how to escape the painful consequences of Financial Diets at the Financial Fluency workshop, the quick analogy is this: Just like most people who go on weight loss diets lose weight only to regain it all and then some, most people who go on a Financial Diet, pay down their debt, merely to end up accumulating even more debt in the long run.

    If you’re being honest you’ve probably observed that happening in the lives of those people you know best.

    Paying off debt by itself is not the answer. That’s why I created a simple game-plan to get you out of debt and begin building your wealth at the same time. You need to do BOTH to reach your financial goals.

    Question 5: Which of the following is the highest risk investment: A. Mutual funds B. Bonds C. Private Placements D. Real Estate E. Starting up your own business

    ANSWER: Impossible to answer. This was the one and only trick question of the test. (Hey, what’s a pop quiz without at least one trick question!)

    The subject of risk is one of the most misunderstood areas of building wealth. And to be frank, it’s not your fault. You’ve been dunked, drowned, and saturated in the misleading notion that investment risk can be separated from you the investor. This flat out is wrong!

    You can never evaluate risk in isolation from you the investor. What are your advantages of experience, information, contacts, etc? Investments that tap into those advantages are less risky for you. Any investment that you have no advantages for is risky.

    For example, I have a lot of advantages when it comes to investing in commercial real estate. For me the risk is MUCH lower investing in this area than say investing in stocks, an area that I know little about. Yet the financial media and our culture say that the risk is in the stocks I choose or in the real estate I invest in. Totally misleading. The first place to look when I evaluate risk is to see how capable I am as an investor in that niche. The greater my advantages, the easier I can manage my risk and generate a higher return.

    Of course the investment vehicle and market conditions impact risk, but in my opinion they can only be accurately assessed if you look at them in relationship to your own personal advantages with that specific wealth vehicle and market condition.

    This concept (which I call the “Great Risk Hoax™”) is something I will be going into greater detail on at the Financial Fluency workshop. In fact, I’ll share with you all TEN risk factors you have with any investment opportunity and how you need to really evaluate investment risk to get the best “risk adjusted” returns.

    Question 6: True or False— If I have a properly drafted will created for me by a smart attorney I can avoid probate.

    ANSWER: FALSE. Having a will as your vehicle to transfer your wealth to your heirs, whether it’s properly drafted or not, guarantees your heirs will go through probate.

    In fact, probate actually means “proving the will”!

    Level One and Two people don’t realize that by not having proper estate planning in place they force their loved ones into a 12-24 month process of probate which can not only be emotionally draining but can also eat up a huge chunk the assets you had intended to pass on!

    Level Three people know that with a little advance planning and attention they can protect their estate and really care for their heirs.

    Now I understand that this is not a “fun” subject to talk about, but it’s crucial to a deeper financial understanding, which is why I’ll be sharing the essential steps to estate planning and asset protection at the Financial Fluency workshop. I’ll give you the ten bottom lines so that you can take action on this crucial area right away and do things the right way.

    This material is just as important to people who are currently at Level One as it is for People who are at Level Three. After all, do you really want to stay where you are at financially all your life? Now is the time to create your financial infrastructure, as you are in the process of building your wealth. It will never be easier, cheaper, or more effective than now!

    Question 7: True or False— A single man or woman who is 28 years old with no children or dependents should not buy life insurance.

    ANSWER: FALSE. Again this is a tough question. Conventional thinking (Level Two) is that the only reason to have life insurance is to make sure that if you have dependents (children, elderly parents, or a spouse) they are financially taken care of if you die. Hence if you are single with no dependents, you have no need for life insurance.

    It’s exactly this kind of this closed-minded, black-or-white thinking that traps Level Two people.

    Level Three people know that there are many uses for life insurance (and other types of insurance) that go far beyond conventional thinking. For example, you can use the insurance to fund a “cross purchase buy-sell” arrangement in a partnership you have. Or you could use it to pay for estate taxes so that you can better pass on your wealth as you want to charities or people you care about. Or you could use it as a tax-advantaged investment vehicle. Or… you get the idea.

    The bottom-line is that Level One and Two people just don’t understand the essential uses for various types of insurance. (For those of you who are attending the Financial Fluency workshop don’t worry, you’ll learn there essentials to using insurance and keeping yourself from making the three biggest insurance mistakes!)

    Question 8: True or False— It takes more work to be wealthy than it does to be poor or middle income.

    ANSWER: FALSE. I’ve been poor (living on less than $12,000 a year of income), I’ve been middle income, and I’ve been wealthy in my life. I can tell you with no reservations that wealthy is best.

    Money can’t buy you love. It can’t buy you friends. It can’t guarantee great health or a deeper connection spiritually.

    But it can give you options, lots of options. It can make your life easier and more convenient. It can let you pay to have someone else do that repair or cut that lawn. It can pay for the best medical care available. And it can lower your stress because you have one less worry (financial) in your life.

    Level One people are focused on getting through the day or at best, through the end of the month. This is survival pure and simple and it takes a tremendous amount of energy.

    Level Two people follow the “head down, nose to the grindstone” plan of working at a job they don’t love for 40 plus years so that they can then “retire” to do what they love. This life of deferred living is both numbing and exhausting.

    Level Three people enjoy their life each day, and while they still have problems and challenges, at least they have the financial resources that give them more options when dealing with those crises or challenges.

    In the end, the biggest reason why I write the books I do and teach workshops like the Financial Fluency workshop is because I want to give people like you the same freedom and security that I’ve been blessed with.

    And it all starts with investing in yourself to build that financial foundation.

    There is no greater investment you can ever make than in yourself—in your earning capacity, in your financial fluency, and in your own growth and development as a person.

    I know you agree with that because you’re still reading this letter. (If you didn’t agree, do you think you actually would have waded through the past several pages of content on financial fluency? Hardly!)

    Because of your commitment to become financially successful and reach Level Three I want to make you a very special and time sensitive offer to join David at that Financial Fluency workshop this September in Atlanta.

    In fact, I want to have you join us both for the Mini-Maui workshop (the charity wealth workshop) on September 14th and 15th AND for the Financial Fluency workshop on September 16th and 17th.

    And I want to explain why you only have a few more days to register and take advantage of an amazing package offer that will help us raise a lot of money for charity and give you the financial foundation you need to create the wealth and lifestyle you both crave and deserve.

    Before I go into the details of this, however, I want to quickly lay out how the two workshops fit so well together to help you become wealthy.

    The Mini-Maui workshop is largely focused on the “inside” game of wealth. It will help you finally let go of your old self-sabotaging and financially destructive money beliefs and quickly reprogram your Wealth Operating System™ for wealth and abundance.

    That’s a pretty tall order right? How do you know we can live up to it? Because you’re going to learn the same technologies that David and I have used for the past five years with our Maui Mastermind™ clients.

    Haven’t you ever wondered how on earth any event could be worth the $30,000 price tag that our Maui Mastermind clients pay, and then pay to come back a second and a third time? Well now you’ll learn how, but for the fraction of the cost.

    You’ll learn the keys to mastermind and create a peer group that pushes you to excel financially. You’ll also be able to tap into your big dreams and learn the key mindsets of wealthy Level Three people.

    The Financial Fluency workshop covers the “outside” part of building wealth, the financial fluency piece.

    Here’s what two participants said about the last time we offered this workshop:

    “Great workshop for charting your course towards wealth and financial freedom.” Derrick P.

    “It’s like an MBA on steroids for like a ridiculous fraction of the cost.” Olly F.

    And I’ve totally redesigned the course and have added several brand new modules that I’ve never taught before.

    The workshop will be broken into three parts, one for each of the three levels of wealth.

    Part One: Level One Wealth

    • How to Know Exactly Which Stage of Wealth Building You Are Currently At!

    • 10 Ten Essential Level One Wealth Concepts You Must Master to Become Financially Free!

    • The 5 Action Steps to Move From Level One Wealth to Level Two In 6 Months or Less!

    Part Two: Level Two Wealth

    • How to Cultivate a Network to Help You Accelerate Your Wealth Building!

    • The 15 Essential Level Two Wealth Concepts You Must Master to Build Your Asset Base!

    • The 2 Wealth Tracks and How to Know Which Path Is Best for You!

    • A Simple, 5-Step Action Plan to Blow Past Level Two Wealth Building in as Fast as 24 Months!

    Part Three: Level Three Wealth (all day two)

    • The 6 Ways to Leverage Your Wealth Building to Become Free FASTER!

    • The 21 Essential Level Three Wealth Concepts to Transition to a Level Three Lifestyle!

    • A Proprietary 6-Step Plan to Create a Personalized Wealth Map™!

    • How to Build Your Wealth Systems so that You Have BOTH the Money and the Lifestyle!

    • The step-by-step Action Plan to Transition Into Level Three Wealth

    Now you really need BOTH parts—the inside and outside pieces—to be financially successful. Learn one without the other and you’ll still be stuck.

    Master both together and you’ll quickly and smoothly move to the next level financially. It’s that simple.

    By itself Mini-Maui is $500, with the money going to charity (less the hard costs of the event.)

    The Financial Fluency workshop is a “for profit” event and normally is priced at $1,997.

    Now here is that very special offer that you can take advantage of that is going to expire in just a few days:

    When you register for BOTH workshops by midnight, Wednesday September 5th you can attend BOTH workshops for just $797! That’s $1,700 OFF the normal tuition!

    But you’ve got to hurry and register now that you’ve decided to join us. The deadline is set in stone. It will not be extended for any reason.

    That means if our servers go down on the 5th, and you were waiting to register to the last moment, then you’ll miss out.

    Please don’t let that happen to you. Register today by going to www.TaxLoopholes.com. You’ll see a link at the upper right hand corner. Whatever you do, do it now. Don’t wait because if you do, you’ll miss out on this incredibly generous offer.

    Think about it, that’s just $200 per day for the four days of information-packed, wealth-producing workshops! Compare that to the $40,000 cost per year of college!

    Why am I giving you such an incredible deal?

    I’m doing it to make it a total no-brainer for you to attend so that together we can raise more money for charity. ($500 of your ticket will go to the “charity” part—the Mini Maui—and $297 will be for the Financial Fluency workshop. That way we raise $500 per ticket sold for charity.)

    Together, Financial Fluency and Mini Maui are normally $2,497. But, if you act now, you can get both events for $1,700 off, for a total price of just $797! It’s like getting two back-to-back wealth workshops for the price of one!

    And rest assured that we’ve designed both these workshops to fit together in one incredible four-day experience. So come join DavidAtlanta and learn the inside rules of money and wealth.

    This special price of $797 to attend BOTH the Financial Fluency and Mini Maui workshops expires at midnight, Wednesday, September 5th, so please register now! It will not be extended for any reason!

    I’d hate for you to miss out on your chance to learn what it really takes to build wealth and financial freedom.

    So if you really do want to get to the next level financially I urge you to register now before this offer expires. You’ll kick yourself if you miss out and there will not be any second chances. Come midnight this offer will expire and that will be the end of it.

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