MAKE YOUR FAMILY RICH
Why to Replace Retirement Planning with Succession Planning
Patrick J. Keogh is the author of the Make Your Family Rich book.
Pat manages the family office that handles the assets of the Keogh family. The office holds securities of the kind recommended in Make Your Family Rich. The office also manages a portfolio of real estate assets, but over time, that’s migrating from real estate to Dividend Champions. He still does an occasional development deal. Old habits are tough to break.
Pat was born, raised, and educated in the Bronx. Both his parents were immigrants and the best investors he ever met. He started work at age fourteen, selling hot dogs and peanuts for Harry M. Stevens Inc. at the Yankee Stadium and other New York City sports venues. His professional career was focused as a financial and real estate development executive with the US General Services Administration. He left government service in 1994 and went into private practice, specializing in public-private partnerships for development projects and managing his development projects. Pat also focused on managing the family's investments
Pat is a certified pension trustee and was chairman of the board of a Florida municipal pension plan. He is a graduate of Manhattan College in the Bronx and the Georgetown University Law Center night school in Washington DC. Pat is a member of the Virginia Bar and the American Association of Individual Investors.
The system no financial advisor can support, because their lawyers won’t let them
THE PRINCIPLES AND STEPS OF THE MAKE YOUR FAMILY RICH PHILOSOPHY
1. Adopt the goal to make your family rich.
2. Commit to save first, and spend only what’s left over.
3. Open a brokerage account now.
4. Invest only in Dividend Champions (DC) unless you have a special expertise and interest, but then only invest in moderation. A DC is a publicly traded firm that has increased dividends for a minimum of 25 years.
5. Don’t buy a DC directly if you can sell a put instead. Always sell a put on a day when a particular DC drops a lot and with a strike price lower than the current price. If you do not have adequate funds to sell a cash backed put maybe buy a couple of shares.
6. Start thinking of your investments as having and managing a second, part-time job, which is to run your asset management business.
7. If you have to scratch an itch and buy a stock other than a DC, do it, but only in moderation.
8. If you invest in real estate, understand it’s a complex, time-consuming business. It’s probably better for you to invest in REIT DCs.
9. Invest in a college education. Although you can make your family rich without a college degree, it will be tougher. You’ll likely be a better person, parent, and citizen with a college degree.
10. After you’ve bought a DC, never sell unless it fails to increase its dividend, and then sell immediately.
11. Engage your family in your asset management business and pay them if they get involved and are productive.
12. Take all your dividends from DCs in Dividend Reinvestment Plans (DRIPs).
13. Move to the (virtual) rich neighborhood.
14. Maintain a close relationship with your securities broker. Negotiate everything.
15. Forget the idea of retirement. Your lifetime job will be to manage your family’s asset management business.