Personal Finance News Friday 4/26

Phil's Personal Finance Tip of the Day:

7 Secrets Wealthy People Know About Amassing And Maintaining A Fortune

By Abram Brown | Forbes

Becoming wealthy enough to keep the wolf from your door doesn't mean an end to unwanted callers.

For every newly minted billionaire, there are cautionary tales of the well-heeled undone by visits from the the tax man, the loan officer and Uncle Sam himself.

 

A fortune requires finesse. As well as a willingness to embrace financial exotica, trips to Bermuda and the drive to start your own business--as a survey of FORBES' knowledge of the world's wealthiest people reveals. Below are seven tricks, secrets and maneuvers regularly conducted by those with more than a shekel or two to accumulate and maintain their fortunes.

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1. Cash Flow Is Important. Buy MLPs, Sell The Steak House

Where does Brad Pitt put his multi-million-dollar paychecks? It's not too much to presume that he, like much of Hollywood, has money invested in master limited partnerships (MLPs). Conversations with five of Hollywood's top money managers revealed a cult following for these stocks, which generate strong yields and cash flow. Like real estate investment trusts, MLPs pay no taxes. Hence, they have more to share with investors, and payouts are more lightly taxed.

They're certainly more than one-hit wonders. The Alerian MLP Index's returns beat the S&P 500's on a 1-year, 3-year-, 5-year and 10-year basis. The index, holding some 50 MLPs, favors gas-and-oil infrastructure companies like Enterprise Products Partners, Kinder Morgan and Plains All American Pipeline.

Alan Goldman, a Los Angeles business manager with a star-studded rolodex and client roster, says he's often left talking his crew out of pitches on the next trendy restaurant, instead advising more consistent investments, like MLPs. "We find that they need to be more conservative than Joe Average." Goldman sighs. "The restaurants are very, very popular with entertainers. We look at something like a restaurant and just assume that the money is gone."

To read the entire article from Abram Brown | Forbes:
http://news.yahoo.com/7-secrets-wealthy-people-know-133755925.html;_ylt=AhyBGDT2umFQKd6Ly4.UFvFtzwcF;_ylu=X3oDMTNrZDJtZjU1BGNjb2RlA2N0LmMEbWl0AwRwa2cDMmZlNjE5NGMtZGI5Yy0zNjE2LTllZmEtYTMwZDUyODViMzViBHBvcwMyBHNlYwNmYmFyLWZlYQR2ZXIDZTY1ZTYwOTAtYWQwNi0xMWUyLWJmYjctNjU2OTg3OTY5OWEx;_ylg=X3oDMTFtcjhqZXZ2BGxhbmcDZW4tVVMEcHN0YWlkAzZhNmM4MWUyLTcxNzgtM2JkMC04YjZiLTAzYTI0M2E1NDEyMg--;_ylv=3

Inspirational Quotes@Inspire_Us from Twitter:
Trust yourself. Create the kind of self that you will be happy to live with all your life. -Golda Meir

Hi my name is Philip J. Miano and I am the founder of PJM Personal Finance and Productivity Coaching specializing in Budgeting, Debt Reduction, Bank Reconciliations, Goal Setting, Time Management, and Organizational skills. Please visit my website: http://pjmcoaching.com.