Legacy Connection – Leveraging Debt and Understanding Economic cycles


Happy November everybody! I’m Stacey Perkins, Vice President of Global
Marketing for Legacy Education Alliance and I’m bringing to you our very first edition
of Legacy Connection – Your connection to Legacy’s most shared and engaging content
for the month of November, spanning from real estate and foreclosure investments to financial
markets and currencies across the globe. It’s so great to be able to share these insights
with you. In this month’s edition we’re discussing Real
Estate Investment with a quick detour to the financial market. We’ll also check in with Legacy Education
Alliance’s CEO Anthony Humpage who shares his insight on a particular precious metal
and its potential effect on your portfolio. Let’s get to it, shall we? Earlier this month we circulated an infographic
titled Developing Your Residential Rental Business. Amongst other things, it discussed the three
actions an aspiring investor should take to help ensure a positive cash flow return on
the very first month of a signed lease: RESEARCH, BUDGETING and PLANNING. Do you already own the property that you intend
to rent out? If so, you should have a fairly good idea
what the costs are. But let’s assume you’re starting from the
ground up like many of our students, how do you go about researching, budgeting and planning? One of the many things we try to instill here
at Legacy is the power of networking and mentorship. So to best answer this question, I’d like
to reference an article we posted on My Elite Portal last week titled Who Do I Need on My
Real Estate Power Team? Well the first person you’ll want to bring
on board your team is… you guessed it… a Real Estate Agent. This is an industry professional who is deep
in the trenches of your real estate market and stays well-connected to both the buyers
and the sellers. They are also the one responsible for setting
up the deals that make your real estate business profitable. Research– Check
Now when it comes to Budgeting, an Accountant is an expert that will help ensure that all
of your finances, both your income and your expenses are in order. This is vital for both your annual tax filing
and for tracking your company’s financial growth. Rather than spend late nights crunching numbers,
an accountant can take care of all of this for you. Budgeting– Check
Lastly and certainly not least is a person you must count on to help the most productive
and efficient way of going about setting up your real estate investment operation: That
person is YOU. Nobody other than you can determine the amount
of planning that will go into real estate investment. It is a process that depends on the amount
of time and resources you’re willing to devote to the endeavor. That is why bringing in the right people is
key as they will help you get the most done with the least amount of time, money and stress. Speaking of stress, the laws of this country
can be pretty tedious and sometimes difficult to understand, so be sure to add a fourth
member to your real estate power team, a Real Estate Lawyer. Every city and state has a different set of
laws and regulations that must be respected within the real estate market. Planning — check
Realtor.com wrote a great piece this month that we shared on our Rich Dad Education Facebook
page about finding the magic number for just how much home can one afford? If you’re thinking about starting a residential
rental business from the ground up, then this is a major component of the planning stage
and one where a mortgage broker can be very helpful. Are you familiar with the debt-to-income ratio? It is one of the most basic equations you
can use to figure out home affordability. It is essentially a way for you (and lenders)
to compare how much money you make with how much you owe—and how a house can fit into
that picture. We highly suggest you check that blog post
out. You can find it by clicking the appropriate
link below listed alongside all of the other resources referenced here today. I’d like to switch gears for a moment and
step into the financial markets sector. Markets are not impervious to human emotion
and from a macro level, they can react to breaking news as swiftly and violently as
a golf ball that has been struck by a driver on a par 5. On the eve of the 2016 US presidential election,
we thought we would invite financial expert Mark Justice to explain the powerful effect
a certain event had on the market just days before the American people cast their vote. Here is the clip from last week’s edition
of Investing Talk Live. Let’s listen in. If you want to understand market psychology,
so the FBI releases its statement that it’s reopening the Clinton investigation. The markets correspondingly instantly fall
off a cliff—why did that occur? The key principle to understand here is markets
love certainty. They like to know, good or bad, what the facts
are and thus they can make their decisions, their investments, they can formulate plans
accordingly. Thank you, Mark. Indeed, it is us, the individual stakeholders,
investors and participants in the economy who shape and even dictate where the market
goes next. Any pebble that we toss into the market’s
pool of certainty can cause a ripple with long lasting effects. That is precisely why a proper financial education
is so imperative so that you may not only anticipate and prepare, but capitalize and
even flourish in the face of such volatility. Our final segment of this month’s edition
of Legacy Connection is brought to you by Legacy’s very own CEO, Anthony Humpage as
he discusses a new reason why you may want to add a certain precious metal to your portfolio. Let’s listen in. Hello, it’s Anthony Humpage, we’re going
to start you off with one of our assets cubed minutes. Today let’s talk about precious metals but
really, gold. I’ve talked about gold the last month both
here in the US and around the world in Europe and Southeast Asia. Gold’s been one of our best-performing asset
classes in America this year—the last time I looked a couple of weeks ago we were up
over 30%. But you know, as we go around the world gold
protects us against currency devaluation. When I was in England a few weeks ago, we
were looking and saw that gold is up there in pounds over 40%. Why the difference between here and the US? Because, as some of you may know, the British
pound has suffered a devaluation this year following the Brexit vote so britains who
bought gold at the start of the year have been protected against the loss of the purchasing
power of their pound. That works in any currency that you bought
gold in so it’s a real safeguard in your buying power. Let’s think about a little more about how
gold protects value because after all it doesn’t pay us interest and it doesn’t pay us a
dividend but it does protect value. And if you’ve heard me speak, you’ll know
that one of the examples that I like to use is back in the 1800s, late 1800s, you could
buy a pretty decent men’s suit with an ounce of gold. Today, here in the US, you can buy a pretty
decent men’s suit with an ounce of gold. And that to me is a really good example of
how gold just protects your buying power. It’s one of the reasons I think it should
be included in everybody’s asset allocation. It’s up to you to decide how much, but you
should have some. Hey, thanks for listening and we’ll talk
to you soon with another assets cubed minute. Thank you, Anthony. As Legacy’s CEO points out, gold can be our
safeguard against currency devaluation as a result of uncertainty, and as we have stated,
this is something that can occur in the blink of an eye. Each and every one of us has the power to
constantly search for ways to improve and grow. To become more competitive in the marketplace. To invest in the future and diversify. With this power comes the need to stay protected;
In the face of adversity AND uncertainty. As we wrap things up, I’ll leave you with
a quote we shared a couple days ago by Arthur Ashe that speaks to this notion very closely:
“Start where you are. Use what you have. Do what you can”. These words can apply to almost anything in
our lives and it’s a wonderful reminder to always put things in perspective and try each
and every day to invest in yourself and to never stop improving. I’m Stacey Perkins with Legacy Education Alliance. Thanks for watching and we’ll see you next
time on Legacy Connection.

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