October, 2009                                                                                            Issue 1


by Catherine Avery


Dear Friend,        
              Millionaires' Secrets : How to raise fiscally smart kids 
Happy Friday!  

In our last newsletter we talked about the millionaire next door and how you may not even recognize him or her - especially since s/he is probably driving an average car and living in an average, middle class home.
This week let's take a look at just how this elusive and exclusive group of people raises successful adult children.  The authors of "The Millionaire Next Door - The Surprising Secrets of America's Wealthy," Thomas J. Stanley and William D. Danko, offer some valuable pointers in this regard:
1. Never let on that you are wealthy.  Time and again, the authors note, children of under accumulators of wealth (UAW) see their parents living the high status/high consumption lifestyle and try to emulate it.  Conversely children of prodigious accumulators of wealth (PAW) often never even know their parents are wealthy.
2. Teach your children discipline and frugality no matter how wealthy you are. And the best way to do this?  Lead by example.

3. Ensure that your kids will not know you're affluent until they are well on their way to being mature, disciplined young working adults.
4. Minimize inheritance discussions across the board.
5. Never give cash or significant gifts to adult children as appeasements or negotiation strategies.  For example, you've helped out one of your kids and now feel obligated to help the other.  The authors suggest this is a no-no.

6. Stay out of your adult children's family matters.  This means even asking permission when contemplating giving them significant gifts.
7. Don't compete with your children.  Do you ever start a sentence with
"When I was your age..."? Do you boast about how much money you've accumulated?  Forget about it.
8. Always respect the differences between your children.  Subsidizing underachievers tends to enhance differences, not reduce them. It can also cause discord and resentment.
9. Make a lot of your children's' achievements, no matter how small.  Teach your children to achieve, not just consume.  Earning to enhance spending should not be the ultimate goal.
10. Let your children know that there are lots of things in life more valuable than money.  As the authors point out: "Good health, longevity, happiness, a loving family, self-reliance, fine friends...if you have five, you're a rich man," or woman!

Warm regards, 


Catherine Maniscalco Avery

Catherine Avery

CAIM specializes in creating and managing 

customized and fully diversified investment portfolios for private investors.
203.966.2712  p
203.966.5697  f


For those of you with questions, feel free to call me at 203.966.2712.
   Also please visit my website at www.catherineaveryinvest.com 
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This information is copyrighted September 2009

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