Empire State of Mind
I have been gone for a weeks now and I am so sorry life keeps an individual busy. I have topics I want to touch on before this year comes to a close and we usher in a new decade. With that being said I wanted to share my thoughts on this book. I have been reading and taking notes from Generational Wealth Beginner's Business and Investing Guide:Third Edition By La Foy Orlando Thomas III, Esq. Thus far I am enjoying this book and I believe it provides valuable information.
In the second chapter entitled " The Importance of Economics" Thomas expands on how to navigate the world of investing. He argues that is imperative for an individual to be privy to the state of the economy prior to making an investment. Additionally, he places a strong emphasis on monitoring the economic cycle. The economic cycle is key because it provides insight on how to adjust and react to each economic climate. The notion here is that economy is measured by several economic indicators that take the temperature of the economy, and some indicators present a forecast of what is expected of the economy in the future.
In the eighth chapter entitled "Investing in Bonds" Thomas informs the reader about bonds and how they function. According to the text a bond, which is referred to as a note or bill depending on its length, is a contract between the issuer and the investor. The investor loans money to the issuer, which can be a corporation, the United States government, or a municipal board. In return for borrowing your money to the issuer, it agrees to pay you a fixed amount of money. This is based on a percentage, for a certain period of time before it gives you your money back. Thomas does an excellent job of explaining the value of a bond.
"The par value, which is also used interchangeably with face value, of a bond is the amount that will be paid to the investor when the bond matures. This amount is usually the same amount that was originally borrowed to the issuer by the investor but can be different depending on the terms of agreement. " (p.124)
Lastly Thomas provides author an example of how a bond works for an individual.
" For example: Karen bought a five-year, $1,000 bond from Exxon Mobil with a 5% yield. In addition to the $50 (5% of $1,000) a year that she would receive from Exxon Mobile at the end of the five years Karen would then receive her $1,000 in full that she originally borrowed Exxon Mobil. That $1,000 would be considered the par or face value." (p.124)
The ninth chapter entitled "Business Entities" resonates with me because I am seeing the resurgence of entrepreneurship among Black Americans and I am happy about this. La Foy Orlando Thomas III argues that entrepreneurship is legitimate method to build wealth and it is the most popular strategy. In this chapter Thomas provides the reader with details on business entity options such as c corporation, s corporation, limited liability company, and limited partnership.
Toni's Thoughts: Generating wealth and making more money has always been important to me. As I have gotten older it is very crucial to me before I have my own family. As a Black American millennial I am sure more of my peers feel the same way. On this blog I have discussed many atrocities that Black Americans have endured and I will never ignore those things. However, I want to discuss other subject matters that provide keys to success and reshape minds. I believe reading books is always a good strategy but after reading one must take action. I highly recommend this book to anyone that is serious about building generational wealth, entrepreneurship, and investing.
Generational Wealth Beginner's Business and Investing Guide:Third Edition
By La Foy Orlando Thomas III, Esq.
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