This document provides secrets to achieving financial independence according to Michael Woloshin. It discusses that most of what people learn about money growing up is incorrect. The true secret to increasing net worth is to spend less than you make. It also emphasizes that income is not the same as wealth and that you need surplus funds to invest in order to take advantage of investment opportunities. Additionally, it notes that grades in school do not correlate with future wealth and that taxes are an important consideration, as asset placement can significantly impact tax liability and ultimate wealth. The document aims to provide guidance on achieving financial independence.

1. SECRETS TO ACHIEVING
FINANCIAL INDEPENDENCE
By: Michael Woloshin

2. Most of what you learned growing up about money, income, and
wealth are not true. This is understandable — think about whom you
first learned them from (odds are good, it was from those who were
not rich themselves). From confusing high incomes with wealth to not
knowing the importance of tax asset placement when choosing your
investments, after reading this special, it might make more sense to
you why some professional athletes making $20 million a year quickly
go bankrupt, while a bus driver can retire a multi-millionaire and have
no financial worries.
This step-by-step guide to financial independence is part of our How to
Get Rich guide for new investors.

3. Most people believe the key to wealth is a
high-paying job. Yes, it's easier to amass
assets if you have more money coming in
each month, but the true secret to
increasing your net worth is to spend less
than you make. It is a cliche; but it is the
fundamental, absolute, non-negotiable
reality of money. To escape this trap, you
need to understand that income is not
wealth.
Income Is Not Wealth

4. The only way to take advantage of investment opportunities is
to have the money to invest. The reality of successful investing
is that there is a certain point where you reach critical mass and
the returns generated on your assets can change your life; e.g.,
earning a 10 percent return on $10,000 is only going to net you
$1,000 before taxes — hardly earth shattering, but the same
return on a $1,000,000 portfolio is $100,000, which has far
utility despite requiring the same effort and research.
You Must Have Surplus Funds to Invest

6. Each morning, when you show up to the office, or the job site, or the
practice field, or studio, it should feel like you are unwrapping a
Christmas gift when you turn the key. That's not some standard
boilerplate advice. If you find the profession that gives you that feeling,
and you are disciplined in your management of the business side of it
by controlling costs
True Wealth Is Control Over Your Time

7. Grades one earns in school have
no correlation with the
economic wealth and success
other than in the medical and
legal professions. That's not to
say education isn't important —
it is! More than 90 percent of
American millionaires did, in
fact, graduate with an
undergraduate degree.
Grades Have No Correlation With Wealth

8. All income is not equal. The idea that where and how you hold
your assets can mean the difference between being somewhat
well off and obscenely rich was so important that I covered it in
depth in an article entitled Tax Strategy: Asset Placement -
Lowering Your Tax Liability Through Intelligent Allocation.
The basic premise is that those with little or no wealth generate
a lot of taxable income, while those who end up financially
independent generate large unrealized gains in the form of real
estate appreciation, unrealized capital gains, and profits made
through tax-advantaged or tax-free accounts
Taxes Matter — A Lot

9. At Woloshin Investment Management (WIM), we are retirement income
specialists and recommend personalized strategies designed to help clients
generate income during their golden years. Our clients benefit from the strength
of a combined 75 plus years of investment experience, our “clients first” values
and the stability of an established business. For us, making “suitable”
recommendations is not enough. We have a fiduciary responsibility to make
decisions that are in the interest of our clients—period.
About Woloshin Investment
Management

11. Thank you!