Today’s posting is a review of Charles Carlson’s Eight Steps to Seven Figures. Charles Carlson is the CEO of a small investment firm, an author and newsletter editor who writes prolifically on the topic of investing in common stocks. Carlson’s book, Eight Steps to Seven Figures is a handbook on how to achieve a million dollar stock portfolio.

I initially came across Carlson’s book at O’Hare Airport in Chicago. I didn’t think much of the book at first, but given that I had some time to kill, I started leafing through it. I was both surprised by the quality of the advice and the easy, accessible writing style Carlson uses. The book is based on the results of a survey that Carlson did on 170 of his millionaire clients.

Carlson says there are 8 steps involved in gaining a stock portfolio worth a million dollars.

1) Begin investing NOW
2) Establish a goal
3) Buy only stocks and stock mutual funds
4) Take limited, calculated risks
5) Invest every month
6) Buy and hold
7) Utilize tax sheltered retirement accounts
8) Avoid shocks to your finances

I’m giving Carlson’s book an A+.

Carlson’s advice is basically this, buy quality stocks, keep doing it, and hold onto them for a LONG time. In his view, this is the way to build wealth. I think this is good advice because it seems consistent with other good books such as Stanley and Danko’s The Millionaire Next Door. What the real sale is, for me, is that I’ve made money using Carlson’s method. On his recommendations, I bought shares in Exxon Mobil (XOM) and Johnson Controls (JCI). My buys in both of these companies made money. Its hard to argue with that.

If you want a strategy for making money in stocks, you should definitely pick up a copy of Eight Steps to Seven Figures.

Best,

James

MANAGE YOUR MONEY TOGETHER

Here are some simple guidelines for DINKS to build wealth:

1) Collaborate: Meet regularly to talk about money, set goals together, track and monitor them.

2) Understand and respect your partner. Take time to understand your partners values about money.

3) Watch the numbers. Get a budget, monitor your spending and track your net worth.

4) Max your retirement. Maximize contributions to your tax deferred retirement accounts.

5) Invest in stock. Stocks perform better than bonds or cash.

6) Avoid high interest debt. Credit cards and title loans are financial cancer.

7) Diversify. Don't put all your eggs in one basket.

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