Santiago Comments on CNN en Español: Guide to Building Wealth
July 26, 2016
In an interview on Desde Wall Street on CNN en español (Time Warner Group), WE Managing Partner Santiago Ulloa discusses the three primary objectives one should keep in mind when building wealth. In the conversation with Jose Montenegro, Santiago discusses:
1. Saving capital
2. Preserving capital
3. Investing capital
Save
The first step to creating wealth is to save. Whether the amount you are able to save is large or small, it is critical to spend less than you earn and put capital aside. This excess capital can be useful as a cushion in case of sickness or unemployment, or to be invested for retirement.
At this point it is critical to understand your cash flows and to create a plan and stick to it.
Preserve
Once you’ve saved and created a nest egg, large or small, it is wise to invest the money so that it begins to work for you. In order to do this, a firm understanding of cash flows, liquidity needs, planned expenses and risk tolerance is helpful. The most important thing to keep in mind is to have a clear strategy that takes taxes and other obligations into account, and stick to it.
At some point as your wealth grows, it may become necessary to seek the assistance of an independent, fiduciary advisor. No matter with whom you choose to work, be sure that person is a fiduciary, and that there are no conflicts of interest. They should be paid only by you, and receive no other compensation in exchange for products/strategies they recommend.
Invest
It may prove difficult to generate significant returns using only public equities. To generate enhanced returns, one may seek other forms of private investments. These can include real estate; private lending; private equity. These investments are much more specialized and require a much more advanced level of experience, but can certainly deliver higher returns in a volatile financial environment.
