Although Sullivan met with Tiger 21 members in his capacity as a NYT columnist the responses he received from these wealthy investors critiquing his finances forced him and his wife to reevaluate their own financial situation – and was the impetus for writing “The Thin Green Line: The Money Secrets of the Super Wealthy,” a book examining how HNW investors handle life’s little problems.
Sullivan condenses the secrets of the wealthy down to six strategies; one of them is sure to put a smile on the faces of those making a living selling insurance.
Sullivan says the super wealthy load up on insurance.
“Term life insurance is very cheap. While there is a low probability of a family breadwinner dying early, it would be disastrous if that were to occur,” Sullivan suggested in a recent interview with US News & World Report. “’How many years will the surviving spouse need to get back on his or her feet?’ Paying around $400 to $500 a year for a basic policy can help alleviate that risk.”
Sullivan was so impressed by what he heard he took out disability and life insurance policies.
The other five strategies?
1. Focus on the things you can control, not what you wish you did in the past
2. Don’t worry so much about taxes.
3. Find a fee-only financial.
4. Get your RRSP benefit.
5. Spend on what makes you happy.
In Sullivan’s eyes the wealthy see life in a simple way. It all comes down to saving more, protecting one’s assets and enjoying what makes you happy. All of which are well within your control.
A few years ago New York Times finance columnist Paul Sullivan spent time with some high net worth investors who were part of Tiger 21, an exclusive group that meets regularly to discuss investment strategies.