Jamie Mcintyre - What I Didn't Learn At School But Wish I Had

21 ST C ENTURY P UBLISHING

WHAT I DIDN’T LEARN AT SCHOOL BUT WISH I HAD BY JAMIE McINTYRE

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“THAT MADE ME A SELF-MADE MILLIONAIRE” “Plus, how to not only survive but THRIVE in a Global Credit Crisis and make a FORTUNE in a stock market crash!”

This edition has been revised and updated for the Global Credit Crisis with several new chapters and additional brand new strategies including E-minis Trading, Property Options and Tax & Asset Protection

21 ST C ENTURY P UBLISHING

WHAT I DIDN’T LEARN AT SCHOOL BUT WISH I HAD BY JAMIE McINTYRE

Disclaimer - Important Information The information presented in this book is based on the author Jamie McIntyre's personal experiences as an entrepreneur, consultant, coach investor and other people he has modelled in detail. You may have to modify them, do further research on them or adapt them to suit your personal financial situation. Any information presented is given purely as an illustration and should not be construed as a specific investment recommendation. The laws relating to investment, taxation, benefits and the handling of money are constantly changing and are often subject to changes in Government policy. Whilst every care has been taken to ensure the accuracy of the material contained herein at the time of publication and presentation, neither the author, presenter, promoters nor the publishers will bear any responsibility or liability for any action taken by any person, persons or organisations on the purported basis of information contained in this book. Without limiting the generality of the foregoing, no person, persons or organisations should invest moneys or take other action by relying on the material contained in this book or any support material, but instead should satisfy themselves independently (whether by expert advice or otherwise), of the appropriateness of any such action. Every effort has been made to ensure that this book is free from error or omissions. However, the publisher, the author, the editor, or their respective employees or agents, shall not accept responsibility for injury, loss or damage occasioned to any person acting or refraining from action as a result of material in this book whether or not such injury, loss or damage is in any way due to any negligent act or omission, breach of duty or default on the part of the publisher, the author, the editor, or their respective employees or agents. Editor’s Note: As of August 2007 the author became Australian PS146 compliant in General Advice, Derivatives and Managed Investments. Jamie McIntyre is an employee of 21st Century Investment Services Pty Ltd and an authorised representative of Romad Financial Services Pty Ltd (AFSL No 238 032). Jamie has been certified by Romad as being qualified in the areas of derivatives, securities and managed investment products. He is currently authorised to provide general advice and dealing services in Derivatives, Deposit Products, Managed Investments and Securities (ASIC No. 321 315).

First published in 2002 Revised and enlarged August 2009 Published by 21st Century Publishing Building 20, 75 Lorimer Street Docklands, Melbourne VIC 3006 Australia Tel: 1800 999 270 Tel: +61 07 5474 4222 Tel: New Zealand (09) 358 7334 Fax: (03) 8456 5973 Email: [email protected] Web: www.21stcenturyacademy.com www.21stcenturypublishing.com.au Copyright 2002-2009 21st Century Publishing All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without prior permission in writing from the publisher National Library of Australia Cataloguing- in-Publication entry: McIntyre, Jamie What I didn't learn at school but wish I had ISBN 978-1-921458-19-4 Printed and bound in Australia by Griffin Press For Wholesale Discounts or Reorders e-mail [email protected] Australian distributors: Gary Allen Pty Ltd 9 Cooper Street, Smithfield NSW 2164 Phone (02) 9725 2933 Fax (02) 9609 6155 Mail; PO Box 6440, Wetherill Park BC NSW 1851

Foreword My belief is that if you are not just curious but committed to excelling in your life in the 21st Century, then what you will find in this book will be a real gift to you from someone who is committed to helping you achieve similar things if you so desire. You can join the thousands of others who are applying these strategies and improving their lives immensely. I know I was extremely grateful when I first learnt this information - an education for life. In this book you will learn: • How to develop the mindset of a millionaire • Why most people fail • The history of money, how the systems control it and why you must understand this, and why you must understand this to understand the current Global Crisis and why the worst may yet be to come. • A real life 21st century modern day education that enabled me to excel financially, more than what I learned at school or university • How to rewire your subconscious mind for financial success • How to generate instant cash flow, even if you have little money to start with • How smart investors earn $35,000 per year from investment property - Tax Free • What you should have been taught at school, but were not • The 4 key skills you must master to succeed in the 21st century and how others have used these to earn over $100,000 p.a. • The 5 key components of a 21st Century Education that should be taught at school • How smart investors are replacing their income in 90 to 180 days or less by using a unique renting strategy • 8 ways investors raise money to start investing immediately, even if they have no money • How to easily develop the mindset of a millionaire and think like a winner. In this updated edition I've also added chapters on how to make $1000 to $5000 a week trading the E-minis market, a chapter from one of my millionaire friends about how he makes millions using property options and a chapter from my accountant on how to minimise your tax and protect your assets legally. I have also added a chapter on a typical day in a millionaire's life for a recent 30-day period as I find reading books by other successful people is a valuable way to learn more distinctions by

reading about what they do on a day to day basis. I also share some of things that have been happening in my life since releasing this book way back in 2002. Since the first release of this book in 2002 the world has changed dramatically, especially with the Global Credit Crisis and stock market crash that occurred in late 2007 and continues well into 2009 and is likely to continue for sometime. This means the rules of investing have completely changed especially the buy and hold strategy financial planners have espoused for decades which has proven to be a disaster for most investors who continued to be charged outrageous commissions for financial advisors to lose there retirement funds. However many of the strategies I taught back in 2002 are still as effective today and some more so thanks to the Global Credit Crisis causing such stock market volatility. To accomplish these objectives, I believe it is important to share parts of my story to make it more relatable and also spend time on developing a solid foundation of understanding the big picture of money and how to change our thinking to be more effective at implementing these exciting strategies. If someone told me fifteen years ago that this is how my life would be I would never have believed them, especially from where I was starting. I share the following with you, not to impress you but to impress upon you dreams do still come true. They did for me and I believe they can for you. I still pinch myself for being able to sit in my outdoor hot tub on the deck of a multi-million dollar mansion, overlooking the pool and waterfall that flows into the extended lounge room of my luxury waterfront home. The reality of my life today sinks in when I glance out over the water, looking at a gleaming brand new luxury sports cruiser boat. I am planning the next overseas holiday to include a stay with some of my closest friends and family in our brand new luxury winter home in the mountains overlooking Queenstown, New Zealand. It is comforting to have the feeling that despite still being only in my thirties, I never have to work another day in my life unless I choose. I reflect with immense gratitude on my life and can hardly believe that some of my wildest dreams are now a reality, like having a farm to escape to the solitude of nature, with its own personal airfield for a private plane to land. Or to have a beautiful apartment in Sydney overlooking, in my

opinion, the world's most beautiful harbour, to entertain friends when visiting this beautiful city. Or to be able to stay in a luxury chalet in one of the world's top ski resorts in Whistler, Canada. What is even more exciting is to have the thrill of having enough money to sponsor a whole school of children in a third world country and experience the happiness this brings to their faces. And being able to help our own Australian and New Zealand teenagers transform their lives by donating teenage scholarships to educate them with a real life education, unfortunately not taught in our schools yet. I love being able to travel regularly to some of the most beautiful places in the world like Monte Carlo, Portofino, Venice, Prague, Africa, Majorca, the Caribbean, Canada, Machu Picchu in Peru, Aitutaki in the Cook Islands, to name just a few magical places in our beautiful world. Even more important than just the wonderful material things I am blessed with today, is being surrounded by like minded friends and having the freedom to do whatever I want, whenever I want, with whomever I want, as much as I want and importantly spending quality time with family and taking them on exotic holidays. What touches me the most is to know that I get to live my life's purpose, serve my creator and contribute and impact on so many people's lives in such a positive manner. There is hardly a week that goes by that I am not touched deeply by someone sending me a card or present or an email thanking me for the difference I have been able to make to their lives or the lives of their teenage children. Also getting pulled up in restaurants and being thanked profusely by people who have recognised me from a live seminar where I have been asked to share my strategies, concepts and ideas with fellow Australians and thanking me for how it has changed their lives. I share none of this to impress you as I said, as I am humbled by my life today and you will understand why when I share my story. However, I share it more to impress upon you that what I am attempting and intending to do by writing this book is to share freely with you the ideas, strategies and concepts that have transformed my entire life over the last eight to fifteen years. This includes my health, relationships, my emotional fulfilment and especially my finances. I went from sleeping on a mate's

couch (mate means 'friend' if you are not an Australian), $150,000 in personal debt, no job, no income, no assets, not even $20 left in my wallet, virtually bankrupt, to becoming a self made millionaire in a little under five years while creating an extraordinary quality of life for myself and others. I was able to build a group of companies from scratch facing extraordinary challenges along the way, which were valued at between $70 to $100 million in mid 2008. My belief is that if you are not just curious, but committed to excelling in your life in the 21st century, then what you will find in this book will be a real gift to you from someone who is committed to helping others achieve similar things, if you so desire. You can join the thousands of others who are applying these strategies and improving their lives immensely. I know I was extremely grateful when I first learned this information, so I commend you in advance for taking action and developing a 21st Century Education, an education for life. I would be honoured if you would consider me as a friend, a coach, working together through this book, step by step creating and redesigning your life, with an emphasis on improving your financial results until you produce the results you ultimately desire. Let's begin shall we, as it is an exciting journey you are starting on. If only I had learnt this education at school, how much easier life would have been for me and no doubt many others. My dream is this type of education will soon be available in all Australian and New Zealand high schools, especially if I get my way. My special thanks to all the 21st Century Team amongst the group of companies that contribute to ensuring we not only provide a modern day education world-wide, but also the support required for our members to effectively implement the strategies into their life. Jamie McIntyre, August 2009

Contents 1 The key to becoming wealthy ..................................................1 How and when do you measure education's success? ..............2 My expectations of this book .....................................................3 2 Why do most people fail? ...................................................... 19 Denial ..................................................................................... 23 Accountability and Action ........................................................25 Gratitude .................................................................................26 Mindset and Strategies ........................................................... 27 Here is the key ........................................................................30 3 The world of money ............................................................... 32 Let's consider changing our wealth conditioning ......................35 Why many children grow up feeling guilty about wealth ........... 36 Why you repel money if you are negative.................................38 Why you should buy quality, not cheap discounted products ...39 Do you charge enough? ......................................................... 40 Do you believe in scarcity or abundance? ............................... 42 How to have money work for us ...............................................45 4 Money is just an idea .............................................................47 Fractional Reserve Banking .....................................................48 Australia, one of the highest taxed nations in the world ...........53 The wealth of a nation is determined by the individuals............56 5 What's causing the Global Credit Crisis.................................61 The US Federal Reserve .........................................................62 Media complicity ......................................................................66 The Money Changers in Jerusalem .........................................68 The Goldsmiths of mediaeval England.....................................69 The American Revolution.........................................................73 The Bank of North America .....................................................76 The Constitutional Convention ................................................77 The First Bank of the United States ........................................ 80 Napoleon's rise to power in France ......................................... 82 Demise of the First Bank of the United States..........................83 The Battle of Waterloo, 1815 ..................................................84 Economic history, capitalism and communism...........................86 6 What is a 21st century education? ........................................88 What is Emotional Intelligence? ...............................................90 What is financial intelligence? ..................................................98 The Middle Class ...................................................................103 What the Rich do differently!.................................................. 105 Four Key Skills....................................................................... 106 RPA - Results, Purpose and Action ......................................107 If you wish to succeed, always start with the end in mind........108

7 How to raise your energy levels fast! ................................. 109 Attracting money and success into your life........................... 110 Disease is another word for disharmony ................................ 115 Decide what gives you energy................................................119 8 Developing the mindset of a Millionaire by rewiring your subconscious for wealth creation .......................................121 Most of us will do more to avoid pain than we will to gain pleasure 123 What is money?..................................................................... 125 The meaning of money exercise.............................................126 9 How to find out what your primary purpose is .................... 129 What do you want in your life? .............................................. 133 Write your own eulogy............................................................134 Put your primary purpose down on paper...............................139 10 Designing your life .............................................................142 SMARTIES.............................................................................143 Create a Goal Board and a Vision Poster ..............................145 Napoleon Hill..........................................................................147 Goals.....................................................................................148 Master Dream List.................................................................. 150 11 The Six Human needs ........................................................151 Anthony Robbins has identified the Six Human Needs...........152 Constructive ways of meeting our need for growth..................154 12 Establish your financial goals ...........................................158 What is the true measure of financial wealth?.........................159 Making your personal financial dreams a reality......................160 Defining what you want financially .........................................161 How to put your kids through university................................. 162 Education Timer.....................................................................163 Cut your mortgage in half!......................................................164 Financial Protection................................................................165 Sample Payment Schedules.................................................. 170 A wealth questionnaire...........................................................171 The Wealthy Are Scarce.........................................................172 Your personal financial dreams realised................................ 173 The wealth bucket .................................................................174 How you can pay for your child's education and more............ 175 Critical Mass...........................................................................176 How Your Money Grows Annually...........................................177 The effects of compound interest...........................................179 The benefit of cutting expenses.............................................180 The hot dog parable.............................................................. 181 A Grain of Rice.......................................................................181

13 Debt reduction and cash flow management ......................183 Debt reduction strategy..........................................................184 Debt-Elimination Time Calculator............................................ 185 Wealth-Building/Retirement Calculator....................................186 How to eliminate debt in 3 to 7 years .....................................186 Homework..............................................................................187 Your Wealth Creation System ................................................188 Are you a poor money manager or a good money manager? 189 Investment portfolio ...............................................................190 14 Eight steps on the path to becoming a millionaire ............191 The bank............................................................................... 192 The true definition of a business ........................................... 196 Savings .................................................................................198 The four skills of a 21st century education .............................200 What are you worth? .............................................................202 Five forms of income game ....................................................203 Other People's Money (O.P.M.)............................................. 204 Using equity ..........................................................................206 Parent's Equity ......................................................................207 Superannuation ....................................................................209 How to make money out of thin air ........................................ 210 Renovations ..........................................................................212 Creating cash flow through renting ........................................215 Case study; How to make money with OPM ...........................217 15 Instant cash flow strategies .............................................. 218 Buying shares .......................................................................219 Warren Buffett's share selection methodology........................222 Channelling ...........................................................................223 Leverage .............................................................................. 225 Insuring your shares.............................................................. 227 The way down strategy ......................................................... 228 The way up and the way down strategy ................................ 229 Renting shares ......................................................................230 Ability to liquidate ..................................................................233 Selling insurance....................................................................245 16 A month in my life...............................................................247 17 Fast Track Property Strategies ......................................... 279 Why invest in real estate? ..................................................... 280 Millionaires from real estate ................................................... 280 What about a line of credit? .................................................. 282 A 10-year plan....................................................................... 284 How wealth is generated........................................................286 Fast Track Property Strategies............................................... 287 Property vs buying stocks on the stock market....................... 287 Property organising principles.................................................288 Adding value to a property.....................................................289

Adding value to the tenant.....................................................290 A 21-point property checklist.................................................. 293 How to obtain 100 per cent finance........................................298 Some finance questions that you will need to address .......... 298 Can I borrow money to finance property if I have little income? 300 What happens if I cannot obtain 100 percent finance? ......... 301 Should I get a finance broker to arrange my loan?.................302 18 Tax secrets of the rich........................................................304 Introduction to Trusts............................................................. 305 What is a 'bucket company'? .................................................311 Trusts summary......................................................................313 Are your assets protected?.................................................... 319 Some examples of warning labels.......................................... 323 The strawman and person of substance.................................324 Companies have two main players......................................... 325 Businesses and asset protection............................................327 19 Trading E-minis...................................................................332 A trading career in E-minis .....................................................333 What is an E-mini? ................................................................ 334 Some benefits of E-minis .......................................................335 Advantages of Trading Mini S&P 500 Futures and Options ...336 What, exactly are Mini S&P 500 Futures? ..............................336 Trading E-minis has many advantages...................................338 E-minis traders use a range of charts..................................... 343 Trading E-minis - some frequently asked questions ............... 345 E-minis case study................................................................. 346 20 Property Options.................................................................349 How can you 'sell' real estate if you don't own (buy) it first?.... 350 Mark Rolton............................................................................351 Mark Rolton's five criteria for ideal Options..............................353 How much deposit should I pay for an Option?...................... 354 Using Other Peoples' Money (OPM)....................................... 355 Options for success - Money from thin air............................... 355 Some real estate tips from Mark Rolton.................................. 357 Negotiating Options............................................................... 358 The Churn Principle................................................................359 Cycles in the Real Estate Market............................................362 Key legalities..........................................................................363 Option Combinations..............................................................365 21 The baby bucket principle .................................................369 Lifestyle bucket......................................................................372 Some advice from Bill Gates...................................................378 22 Success stories .................................................................380 Index ....................................................................................... 389