|
Chapter
3 - Summary of The Plan
This section presents a summary of the Stoker Strategy.
Though this plan is simple, it is strongly recommended that you
read the entire book in order to gain full insight to the fundamental
concepts. Sometimes, it is
this insight that provides the discipline you need to stick to the plan.
In addition, throughout the book, I will present several
important points, precautions, and procedures that can save you
frustration and money.
I.
Phase One - The Foundation
1.
Build your defense
A.
Build an emergency reserve
B.
Pay off debts
2.
Buy your own home (if you are expecting to be in the area for
awhile, and you have not already bought one).
3.
Pay off your mortgage early (Warning:
Refer to chapter seven with respect to prepayment penalties)
II.
Phase two - Accumulation of Wealth
4.
Strive for true wealth through tax-preferred, self-controlled
investment(s)
A.
Buy rental real estate
B.
Start your own business
That is all there is to it. This
simple plan will provide all the benefits discussed in section one.
You may say you do not want the headaches associated with rental
real estate; or you do not
know how to run a business, and you do not have a salable skill.
But do not discount this plan too quickly.
In this book, I will provide answers to all of these potential
challenges.
First of all, if you discontinue this plan after completing step
three (i.e., paying off all debts and your mortgage), you will be able
to keep all of your earned income minus taxes and day-to-day
living expenses. For all
practical purposes, you will then have financial freedom as described in
section one unless you bought your first home a long time ago and
currently have a small mortgage payment.
Furthermore, if you do wish to go forward with phase two, you can
select real estate or your own business with greatly reduced risk
since you will
have
income to help absorb any setbacks, and you can do it after hours while
continuing your current job. Phase
two allows you to recover the tax deductions you lose by paying off your
mortgage early, but now you do not have to pay for them.
Later in the book, you will be shown how to acquire the expertise
to start and run your own business at as close to zero risk as possible.
Both of these vehicles (i.e., rental property and your own business)
provide the opportunity for great self-satisfaction, accumulation of
wealth, and tax advantages.
While we are on this topic, do you know why most people do not
own their own business and do not invest in real estate?
All reasons and excuses boil down to two main excuses:
*
Lack of Knowledge
*
Lack of Money
Both
of these excuses include some degree of fear, and this book will help
you overcome both. If you
subscribe to either of these arguments, refer back to chapter one and
the books listed in the "Attitude" section of Appendix M,
"References."
|
