Page 191 -

TRUMP UNIVERSITY WEALTH BUILDING 101

Yet investing for retirement (or any other long-term goal) isn’t rocket
science either. However, like life itself, investing can’t be reduced to a few
formulas. What works today might not work next year. Markets change;
economic conditions change; companies change. But that’s great because it
means that there are many ways for you to make money and achieve your

financial security. You don’t need to be a genius. You just need to learn how to
succeed.
At this stage of my life, fortunately, I’ve gone well beyond saving for a
trip to Europe or a car. So, in this chapter, I want to share with you what I’ve
learned over the years as an investment advisor for people who want to achieve
and have financial security for their retirement.

As my father always stressed, “Knowledge is power.” Dad didn’t mean
the power to control other people. He meant the power to control your own
destiny, no matter what happens out there in the “real world.” To him, that
meant not necessarily academic education, but primarily learning what you
need to do to achieve your goals. And investment success—by that I really

mean achieving financial security—is open to anyone who works at it, regard-
less of how much “book learning” you have. In fact, one of the best investors
I know got no further than the sixth grade. I’ve learned some good lessons
from him.

Start with Two Smart Steps

The first most important step for you to take, if you’re not doing it yet, is very
clear:

1. Save as much as you reasonably can. To reach fi nancial independence
in the future, be it at 65, 55, or 45, you need to live below your means
now. Yes, it’s that simple. Curb your spending—without being a nut
about it. Save at least 10 percent of your annual income, and prefera-
bly 20 percent or more, depending on your current income, your age,
and your future needs. Assuming that your investment portfolio
appreciates 8 percent a year on average—a reasonable expectation—
each $1,000 saved and invested this year will double in nine years,
double again in 18 and double again in 27, to $8,000. That’s the power
of investment growth, compounding year after year.

The second most important step:

168

8/23/07 3:25:19 PM
c16.indd 168
c16.indd 168 8/23/07 3:25:19 PM