YOUR ROAD MAP TO FINANCIAL FREEDOM This book is not offering a get rich quick plan. It takes time to implement long-lasting strategies that lead to financial independence. Toby Mathis has created a road map for you to follow to create wealth over time. He shares his get rich slow approach based on the investing and money management practices that have helped hundreds of participants in Anderson Advisors’ popular Infinity Investing program reach financial freedom. One central principle in the Infinity Investing approach is that you must take the critical first steps necessary to learn about personal finances and smart investing. Toby understands that the intimidating jargon, unnecessarily complicated math, and mystique surrounding money management can be a roadblock that often prevents the average person from ever starting. This book demystifies the process and describes it in a straightforward and engaging way. Toby has spent years studying wealthy people who have built their wealth over time by creating a solid plan and sticking to it. He breaks down what these people do and don’t do, so that you can follow their path. Toby is a gifted storyteller as well as a clear-eyed researcher. Readers will find his stories about people to be vivid and relatable while he uses just the right amount of real-world financial data to back up his lessons. Let’s create your infinity plan!
One of the best reads I have ever gotten a hold of when it comes to managing personal wealth. He covered topics that I do not hear a lot of financial gurus talk about. This is a great book for people who are serious about their wealth the right way.
This was a great read to introduce the idea and concepts of investing and all things finance. I’ve read a few books about money — investing, saving, assets vs liabilities, but I’ve always been left asking more questions about what these words mean. This book helped break down the basic definitions and principles of the different aspects of investing. I highly recommend reading if you are new to managing money, need a better way to manage your money habits, or are just curious about another perspective!! The only reason it isn’t a 5 star is because this isn’t my preferred genre and had to make sure I was paying attention to what the book was teaching rather than getting bored!! :)
I would recommend this book to people interested in trading, it definitely sheds light on some new topics
These are some interesting quotes I found in this book
- Infinity Investing is about making money no matter what the market is doing and for an infinite period of time.
- in certain medieval churches, the Bibles were in Latin and it was illegal for a commoner to learn Latin. That meant that the average person had to go to somebody who could interpret the content for them—often in a way that benefited the interpreter.
- if your credit card debt is below $50,000, you can bankrupt that credit card. However, if you have a $50,000 student debt, you can’t bankrupt that debt.
- I’ve seen very wealthy people lose their money in the markets because they were sold what a brokerage wanted to sell them.
- They are not fiduciaries (they prioritize you over them)
- I’m convinced that when trying to find the right neighborhood, it’s more about the community than about the school. Even if you homeschool, it’s about the community, and it’s about the people that you interact with.
- “I believe that I control my money. My money does not control me.” The number-one difference between the rich and the poor
- The best income source is real estate. I may never pay tax on real estate, and neither will my family. I could own real estate and it could grow from a dollar to $10 million, and I will have paid nothing in tax.
- If you can rent the house in the neighborhood where you want to live for half the price of what it would cost to buy it
- Traditional ira > Roth ira
- Invest in dividend stocks
- As long as you’re not carrying water buckets to the village cistern to pay it, then it’s not a liability. If your bucket-carrying has to pay for something, then it is a liability. I’m not talking about the acquisition; I’m talking about the continuing ownership of it. Is it bleeding you every month?
- If you’re renting out a property for $1,000 per month, your expectation is that you are going to bring in about $500 per month after paying for costs like insurance, taxes, repairs, and management. Your monthly net rents would be $500. This is an asset.
- It is only logical then that the fastest path to reaching Infinity is to do two things: lower the amount of money you spend on a daily basis and increase the amount of Infinity Income coming in.
- The problem with selling off assets is that it’s never that easy. There are market fluctuations, broker fees, Realtor fees, taxes, and other expenses that can substantially reduce the amount you receive.
- The first Big No is do not pay expenses with liabilities. An easy example to understand is don’t use credit cards to pay your rent.
- Big Infinity No Number Two: Do Not Buy Liabilities with Your Income!
- Resist the temptation to buy something just because you financially qualify. First-time home buyers are often surprised that they qualify to buy a big house. That doesn’t mean they can afford it.
- Big Infinity No Number Three: Do Not Buy Liabilities with a Liability!
- So, as an example, let’s look at something many people do—buying a car with credit. Don’t do it.
- This is an example of what TO DO Let’s say I have a rental house that’s generating five hundred dollars a month positive cash flow, and I get a car loan that is five hundred dollars a month. Okay, that’s fine. I am not incurring extra expense. I’m paying for it with earnings from an asset.
- My base transportation will be a certain dollar amount for a basic car. Everything else is a want. Whatever you do, do not buy the want on credit. Do not buy a want by taking out a loan.
- The Losing Loop is when you are working to pay off liabilities but you are not earning enough to pay your expenses and pay off your liabilities.
- If you do go out and buy a car with a loan, a home with a mortgage, a degree with student loans, or a bunch of great furniture on your credit card, you end up in the Losing Loop.
- Some things are affordable for some people while others are not at that moment. If you can buy it in cash and still have a lot left over, you can afford it. If you can’t easily buy it without a credit card or loan, you simply cannot afford it
- Quit thinking of a Ferrari as something that you have to work for to buy. What you have to work for is the asset that will then generate enough income to pay for the Ferrari.
- Rule Number One: Use Income to Buy Assets
- The idea is to use your income to buy things that are going to feed you.
- you could then buy a dividend-producing stock right away. When you buy something that pays out a dividend, you now have an asset. Now you are following rule number one. You are using your income to buy assets.
- Rule Number Two: Use Assets to Pay Expenses
- Remember, these assets include things like rents, royalties, interest, dividends, and short-term capital gains. You use your assets to cover your needs and your wants.
- Rule Number Three: Use Assets to Pay for Liabilities
- If you want to have that super house, let your assets pay the mortgage. Let your assets pay for any loans or for your lease payment.
- what will typically happen is then the heirs have a sell-off, and—boom—the exponential growth is not only stopped, but usually sidetracked into spending. The sell-off of Mom and Dad’s assets causes their value to be depleted, and the proceeds are often spent frivolously.
- Remember, you’re playing life Monopoly. You’re buying assets first. You’re using your money to buy rentals during your first few times around the board. Once you have enough rentals, you start trading them for hotels or whatever other assets Monopoly makes available to players. In the real world, you could begin right now with dividend-producing stocks that you can buy for less than a hundred bucks to get started.
- If you research the crash of 2000, you see it took a full thirteen years before the markets came back to the level that they were at in 2000. And that’s where the traditional investor and even traders get in trouble because they’re trying to time the markets.
- Consider the fact that according to S&P Dow Jones Indices, after fifteen years only 92 percent of funds actually beat the S&P. In 2019 only 29 percent of fund managers beat the S&P. These are “experts” at timing the market, yet they fail more often then they succeed. It makes no sense to pay someone who will more likely than not lose you money compared to the S&P.
- They want to eliminate the chances of losing a bunch of money in the market. How they do that is by using the stock market as a cash-flow vehicle. This is a critical fundamental of how the wealthy invest. They are not just trying to make money on the big upswings in the market.
- Focus on dividends
- A dividend, as you learned in earlier chapters of this book, refers to a company sharing the wealth. It’s a portion of a company’s earnings that they pay out to all of their shareholders, and the more established companies are going to be the ones that pay a dividend.
- Buy stocks for dividends and then use options on those stocks to rent them out making you more money over time
- Always be the one selling options, never buy options contracts
- Buy 100+ of your favorite dividend stocks then sell covered calls on those stocks - when they get exercised, buy that company or another company again and repeat covered calls
- I joke that my holding period is forever. I buy something because I want it in my portfolio. The only way I would sell a stock is if its dividends were cut drastically or it had some sort of major event like a scandal, major lawsuit, or disruptive technology that made it obsolete
- Always have at least 10% cash reserves ready
- We do not want to be in the group that buys a stock right after it makes a new high. We want to buy a company after it comes off a high, hits a low, and is well on its way to coming back.
- Third, does the stock offer option pricing? If so, is it weekly or monthly, and is it worthwhile? You can always tell if options are offered by looking at the option chains available in just about any major brokerage platform or by going to Yahoo! Finance (free) and clicking on “Options” after pulling up any stock quote.
- determine your average price paid. You will see this as your total stock basis (total amount you paid) divided by one hundred. If your average share price was $99, you would only sell calls at a strike price at above $99. -
Ignore the kitschy title, this is a book with solid guidance on why and how to invest, how to evaluate worthwhile income generating investments that grow over time, and practical tips for planning for different stages of life. This is not a book about taking bets or get rich quick schemes.
I was introduced to this book because I regularly listen to Anderson Tax Advisor's podcasts on tax strategies and enjoy Toby's great tips. I had heard about his Infinity workshops and felt this book may be a suitable alternative introduction to several concepts, particularly around using self-directed retirement accounts, options trading and real estate investments to maximum effect. I am not a personal finance guru so I enjoyed the way Toby explained these concepts in a way that wasn't too dumb but also ingrained the big picture vision (especially using covered call as a stock market landlord strategy).
If you're mid your 30s like me and have already collected some retirement funds and want to take a more active role in your investment strategies, I'd highly recommend this book as a starting point.
The first half can be summed up as: you people are so financially stupid; I did it the right way and I'm going to sternly tell you plebeians how to do it right. More of a tough guy than a respectful financial adviser speaking to you. The real substance is at the end. In short, be a stock market landlord by selling out of the money covered call options. Keep at it over several years, and your gains will compound. I thought this was a real estate book, but its focus is more on the stock market.
When it comes to books that talk about investing, my interest is always picked. I love self-help books that especially talks about how to be financially successful. Infinity Investing: How The Rich Get Richer And How You Can Do The Same is a book written by Toby Mathis. This book explains about the importance of controlling your finances and be in total control of everything that you do with your money as a whole.
I have been to different investments and most of them were not successful and I wonder what went wrong, or if I did something wrong that should have not been done. This book helped me realize plenty of things. It explains strategies on how you can earn more money and save more for securing your future. It was written in a simplistic way and I love that it has a straight-forward approach as well.
An updated take on rich dad poor dad. Same concepts, ie, your house is liability, buy assets that produce cash. However, this book was More of a how to than rich dad was.
The order matters, buy assets before liabilities. Assets produce income that you can use to buy liabilities. He stressed this point a few times in the book. But assets that produce cash to fund the purchase of liabilities.
I like the asset allocation section. 30% dividend stocks, 30% advisor funds, 30% real estate, 10% cash. I don’t agree with the use a advisor part, but coming from a book worn by a financial adviser I am surprised it was only 30%.
I was also intrigued by the stock market landlord section (selling covered calls) I’m not sure I’d actually do that however, seems like a lot of maintenance for little return, and you might end up selling a stock you want to keep at the beginning of a large really. I agree with tie dividend stock investing, but will have to research the coveted call option further.
Infinity Investing: How The Rich Get Richer And How You Can Do The Same by Toby Mathis is an easy-to-read financial guide that is different from the rest. Instead of relying on get-rich-quick strategies, the author has developed a different strategy that works well over time. He has developed the Infinity Investing program that can help just about anyone tackle the complicated issue of investing. It's all about creating pathways to passive income that don't rely on the ups and downs of the stock market. Sensibly written and full of actionable and easy to implement advice, this book is for anyone who wants to take control of their future and finances. Highly recommend.
Елементарна. Това е най-точното определение за книгата. Цялото съдържание може да се обобщи в "инвестирайте своите пари, за да печелите от тях и използвайте спечеленото за още повече инвестиции". Това е нещо, за което никой не би се досетил, наистина. Това е подправено с дребни елементарни инстории от тип "басня", които трябва да ни научат на едно или друго, но все неща, за които човек с глава на раменете си сам може да се досети без да дава 20 долара да си купи книгата Все пак не беше напълно безполезна. Сред плявата имаше страница-две с полезни неща, които до голяма степен оправдаха времето прекарано в четене. Тук-там има храна за размисъл под формата на трошички.
Toby is the first person I’ve heard mention covered calls (from his YouTube channel) and I read this book to learn more about options from his perspective. The mindset of having assets that pay for your liabilities is life changing and completely upside down from how the average American lives and works. I like the concept of selling puts and calls on dividend aristocrats/kings that show promising profits and are widely approved by analysts. There are a lot of YouTube videos about making flashy amounts of money on newly rising stocks, and I think Toby’s strategies are a good contrast to that type of content.
Excellent guide to avoiding or managing liabilities. Methods for seeking and harvesting cash flow from assets and equities. Systematic breakdown of potholes,gaps and traps of Ill understood investments and methods of investment. Truly a soft path to income generation from the market and advantages provided by IRS to our advantage when understood. I will recommend the book for novices,advanced and expert investors. This is well done without jargons of confusing words.
Wow, I have recently concerned about financial freedom and this book seemed written for me. It shows me some interesting insights about savings as well as assets. Because I'm not a financial guru but it is so easy for me to understand and be aware of the importance of infinity investing for my prosperity in the future. Highly recommend for people who want to understand about financial freedom as a starting point.
One of the best books can help us realize how simple we can build wealth. Of course, it takes time, money, and smart work to build sustainable wealth. This book can be a guide for it. I highly recommend this book for beginners as well as experts (some time keeping it simple can help realize full potential)
Solid book for new investors. I have to admit I didn’t learn too many new thing’s reading this book because I have been fortunate to have cobbled the author’s lessons together throughout the years from other sources/experience and can tell you this way of thinking about assets, liabilities, and investments is spot on.
Author Toby Mathias reveals a clear plan that anyone can use to begin making money work for you, instead of slaving away year after year to pay for your liabilities. Learn to earn money by investing safely and using your passive earnings to fund your life. I can't wait to get started!
The main reason I didn’t give this book a 5 star rating was that as an Audible book it was difficult to understand all the details within each chapter. I will most likely need to listen to last chapter again.
A very simplistic method of investing that fails to explain how this method has translated into high level returns over the years. How do I know that this method is effective? There are also several typos with numbers in the book that should be corrected.
Didn’t love it, felt like it was a lot of repurposed stories and content from other more popular books I’ve read. I have a more advanced knowledge of investing and it felt a little elementary to me. So if you are on the beginning stages, it could be a great book.
Very basic book on personal finance. You should plan to read this only if you're just starting on the journey to financial planning/freedom. Else pass.