Your Primary Investment

First published January 1981

I hope you all had a very merry Christmas and a very pleasant holiday. I mentioned something in my last newsletter that I feel is important enough to discuss further and I hope it gives you some wonderful ideas for your New Year’s resolutions.

Most people at this point in time are very confused about the economy. Among those worried about the economy are people who own gold, property owners, stockholders, investors in the commodity market, bankers, housewives, doctors, and innumerable others who have all seen major money mis-management in this country. They wonder what the future will bring, what actions the new president will take, and in general, what to believe about the economy. I have always put emphasis on a person’s “beingness”, his abilities, and on having a good “valuable final product.” Your ability to produce a good product will carry you through any economic situation, more than all the gold and real estate you can buy, although those are also excellent investments. Your primary investment should always be yourself as you are far senior to anything in the “material universe.” Realize than an investment in yourself enables you to better control all those other investments that you want to do well with. I ran into a friend the other day who said something like, “Richard, I just don’t know what I’m going to do about my cash flow! I can do well with my investments, but I have a terrible time with my monthly income!” My answer must have sounded oversimplified to him when I said “Go out and make more money!” which is the most basic answer to cash flow problems. “The income potential of any usual group is established by the demand for income, not by any other important factor.” “In financial supervision on an International basis, this is the only factor one works with.” “While it is reasonable to suppose that income will occur for other reasons and can be achieved in other ways, the actual fact is that only demand by the group produces any income at all.”

Find a clear cut valuable, final product and produce it, and find the clear cut positive beingness that goes along with that product and be that beingness. You will then have more money than you know what to do with. If you need help or think you could do better with this, come to our next personal achievement workshop. In the area of economics, again, invest in yourself by getting educated as the first and most important action. Currently our economic condition is determined by the politicians, so learn the politics of economics. You need training and education for anything that you want to accomplish, make more money at, or accumulate more of etc. So get yourself trained. And now back to those New Year’s resolutions I mentioned! Sit down and work out the financial areas (and any others) that you feel you need the most help with, and make a resolution to make an investment in yourself, specifically to handle those areas, whether it be better tax handling, financial planning, real estate investments or money and economics in general. And then carry them through!

I have noticed that where a person has trouble with cash flow or income, etc. he is not sufficiently aware of what his product is or has not sufficiently assumed the “beingness” that goes with that product. Whatever your beingness – doctor, bricklayer, waitress, consultant, and whatever your product, they can be embellished and enhanced to a point where you produce a more desirable product and you make more money! Hazy ideas of your product or you beingness won’t do, like “Well, I am a salesman of sorts…” or “Well, I’m trying to get started in ___________, but if it doesn’t work out, I will try _______________.”

Some of my expectations for 1981 are that the interest rates will peak pretty soon between 21 and 25%. Sometime in the first quarter of 1981, they could fall as low as 11 or 12%. By the way, I never stop investing in real estate because interest rates are rising. I lost too much money when I did that! I just continue to find the good deals, which are often easier to find in times of high interest rates. If the rates later go down drastically, so what? Then you refinance your property at the lower rate. I’m also expecting a nice upward trend in hard money (gold, silver, diamonds) starting in the first quarter of 1981. You can call my office for an update of these prices anytime. And now is a good time for buying.

On the other hand you can have the best product available and in high demand but people see you as how you think you are, you put it out there as a mock up and everyone sees you that way. So change the way you think you are, mock up the better you so that people see that better you and want to be part of your life and happy New Years and a lot of success for you this years.

With much admiration


Richard G. Stewart
R.G. Stewart

Big News! Satellite Seminar!

Originally published March/April 1981

I wanted to communicate financial sanity to large numbers of my friends and clients across the country, keeping you up-to-date on the economy, and I have found a way – seminars by satellite, with two-way communication lines, designed to keep you informed on a bi-yearly basis. What a power base! The first one, the FIRST NATIONAL PROSPERITY CONFERENCE, is scheduled for April 5, to be broadcast line from the Beverly Hilton Hotel in Los Angeles to 20 locations across the United States with thousands expected to attend.

During this all day seminar in a hotel in your area, you will have an opportunity to listen to such well-known and prosperous individuals. So plan ahead and keep that day open for your own personal enhancement and education in the financial and business world. If you intend to prosper, you must get fully hated on prosperity. I’m excited about this event, and I hope you are, too.

I will be speaking on short range and long range investment programs you should be following, based on current economic trends. For those of you who feel you have little or no money to invest I will also be covering ways to increase your cash flow. I have found the major difficulty that 90% of my friends and clients have with cash flow is really difficulty in assuming the identity that will help make them truly successful. I will cover this at some length in my talk, and this data has changed many people’s lives. Contact my staff for more information on this seminar. I really want to see you all attend.

My advice is still full steam ahead on real estate. I feel that at this point the interest rates will level off or start going down. I see levels again at 12 ½ to 14% for first trust deeds. Of course, this is not guaranteed, and I wouldn’t wait until it goes down before you buy, because if it goes down, you can expect to see a tremendous increase in the price of properties, especially in the metropolitan areas.

If interest rates go down, it won’t last long, possibly six to twelve months. And I do expect within the next 24 months, that interest rates could climb back up to about a 25% level. The current rates could remain level for another six months. This is irrelevant for the buyer because we are in a good buying period.

It is very obvious that Reagan really wants to help control inflation, but I think he has much opposition from Volcker (Chairman of the Federal Reserve Board), over whom he has no control, so no matter what efforts he makes, there is no certainty about what will happen – more inflation, recession, depression – who knows? All I can say is – Become armed with data and protect yourself for any event.

My viewpoint has always stayed the same, as far as silver and gold are concerned. If you are buying silver and gold, buy for the preservation of your capital, and buy it on a dollar-cost-average basis. Using dollar-cost-averaging, you invest continuously every week or month, regardless of the price level. Generally, when the market is moving downwards, most people feel it is time to get out. That is the reverse of the true consideration – That is the time to buy. Strangely enough, I see by statistics in my organization, that we have many more clients that sell silver and gold rather than buy when the market is moving down. Similarly, when the market is moving up or is very high, that’s when they think they should by buying.

In real estate right now, most people’s intention is to sell, because they are afraid of getting caught. I think it is the best time to buy when people want to sell. Why not use the same viewpoint with silver and gold? While others want out, this is the time to buy.

I have seen corrections (short downtrends before the statistics recover and continue to rise) like this happen again and again since 1972. This time, because of the last levels of highs, when silver and gold hit a certain low level, you will see large institutions that have been holding back from buying silver and gold, start to put large amounts of capital into it. You can well imagine what would happen to the price then.

I am not talking about purchasing silver and gold on speculation or making large purchases because of the potential upward swing. I am trying to have you maintain a steady flow toward the preservation of your capital on a dollar-cost-average basis, and in this way, be ahead of the game in the future, when silver hits $150, and gold hits $2000 per ounce. You can feel confident that you have managed to stay above inflation, by being at cause, not effect, and sticking to a set of financial program that includes real estate, and always a percentage of your income to hard money like silver and gold. And don’t forget my last letter, when I told you to invest in yourself. Read it if you haven’t.

We are well on our way in achieving our goals and purposes of flowing you power and giving you the truth about money and financial matters. This year, 1981, will be a special year for all of us to remember, and we at the R.G. Stewart and Company are here to help you increase your net worth.

See you at the event April 5!

With much admiration,

Richard G. Stewart
R.G. Stewart

THE BASICS

Originally published March 1982

The basics, the basics, the basics. You know I can't express enough the important of the basics. There have been many, many times in the past when I’ve dealt with people and they’ve asked me all these fantastically complex questions on the subject of real estate and creative financing. I found myself sitting there trying to explain complex methods and formulas of how to do certain types of real estate financing and creative techniques and how to get in with 100% financing, no money down, how to do "All Inclusive Trust Deeds," etc. But I found that the majority of these people couldn't take the data and do anything with it. They just were really lacking what everyone should have in first and that's the basics.

I can tell you a story about way back when I first got started in real estate. Oh, I thought I really knew what I was doing. I'd heard other people talk about it and so forth. But I really didn't have the education or some of the basics in to really play the game I wanted. SO I went out and tied up my property that I had bought, my first residential property, and actually received a contract on it to sell the property. After I did that I decided that I would go and do a basic seminar to find out just what I could learn about this particular area. My goodness, when I got the basic data it wasn't even within the first two hours of this seminar that I realized that if I had known the basic data on how to sell a property and how to get the best deal for myself I could have made $30,000 more profits on that deal. So I was really, really excited. But it was too late because I had already signed the contract, there was no way out, I had missed out on it. But I’ll tell you, I really kept that in mind and realized I wasn't going to pass up those basics again. At that point I really started to make some progress.

Later, when I started to give my own seminars and educate people on finances, I found that I would give them a high level of data but they could only expand so far with that high level data. But when I cut it down to a little bit lower and closer to the basics I found that their ability would be considerably higher to produce because they could actually take the data and really create with it. The lower down I went and the closer to basics the more able the person seemed to be. He could make the data his own now and he could do the creating rather than sit back and listen to someone such as myself do the creating.

Well I remember several years going by and me having a certain level of basics down, but you have a tendency of forgetting these basics. You know, you have the tendency of getting off on Cloud 9 or Cloud 42 or whatever realm of "pie in the sky" we get into and at that point you kind of forget about the basics. You think, well I don't have to look at the basics, I pretty much know what I’m doing now, I’m doing much better than most, and the basics are just something I’ve gone beyond now. Well at this point in time I was having a problem on a particular deal, and I didn't know how I was going to get myself out of it. But I realized that I had a successful action in the past of just getting the basic data. So I looked in my local telephone directory to see if I could find the person that was delivering the seminar that I went to three years prior. Unfortunately, I couldn't find it, so I called the home office of the company and found that there was actually the same guy delivering the seminar in a different city. So I flew in and listened to the same guy give the same seminar all over again. And ill be, it was an incredible experience! Within 15 minutes of that seminar I realized that the basics had fallen out again and it was time for me to get the basics in. I got so hyped up and just flying in my mind that the toughest thing for me to do that day was to stay for the rest of the seminar and listen to the rest of the data, which was quite creative. I had the basics back in now. And I went out and made myself $300,000 in profits with those basics.

Well, this story goes on and on. Actually it’s been 4 times now that I’ve been to the same seminar and all four different times it reiterated the basics in my universe. And all 4 times I’ve walked away and I’ve made fantastic profits as a result of it.

The individual that I was able to meet back in those early days when I first got started in real estate was Mark O. Haroldsen. I learned a lot in those days from studying what Mark had to say and I’m very happy to announce to you that Mark will be speaking at our upcoming Millionaires Course Graduates Reunion on March 13 and at the public banquet that night. You are all invited to the banquet. I find it amazing that after the second time through Marks course I went off and bought and sold a commercial building and made $300,000 within a six month period. It was a basic deal sitting in front of so many real estate experts that laughed at me when I bought it. They were looking and thinking about it at too high a level. When I saw the deal it hit me like a bomb as to how I could structure the deal and make it work. It was all about the basics. After that success I wrote Mark and he called me after he received my letter. What a surprise, he put my name and picture of me in his second book. The story of a guy named Richard Stewart in El Paso Texas that knew nothing about real-estate and took his courses and made $300,000.00.

Now Mark is speaking at my graduate courses and I am truly grateful that he recognized me in his book because I received calls from all around the country from people asking me how I did it. I have to say, thank you Mark for helping me and for now coming to my events and helping my students.

Now, just a word to tell you what the Millionaires Course Reunion is all about. When I started delivering seminars and teaching people how to get control over their financial area, I realized that they needed to have a continuous connection with the basic data and with people who were successfully applying it. This was because there were so many people out there who were counter-intending them making profits. These guys would leave my basic courses and they would go out into life and livingness, and someone would pound them in the head and say, "Ah, it can't be done." Well let me tell you, there are a lot of people making profits right now. And if you sit back and listen to rumors then you're going to be the effect of all those other people and their reasons why they can't go out and do it. So after I started the Millionaires Course and had several people who were graduates I needed to keep them connected up so that they could come back on a quarterly basis. We would debug them and help them handle any ruins and stops that they had as to why they couldn't make it from the last reunion. Plus we'd update them on changes in the investment environment. This was a sort of method of keeping everyone at cause over their own particular area of finance. It's been an amazing thing. We educate them just as if it was another day on the Millionaires Course, or two days, because the reunion now has gone to a two day weekend. And now we're even having special guest speakers, like Mark O. Haroldsen, come in on each reunion and educate the Millionaire Course graduates to an even higher degree.

So all of you out there are very welcome to come to the Millionaires Course Banquet in the evening where we will give awards and Mark will talk and we will have a very fine dinner. I'd love to see you all there.

Richard G. Stewart

R.G. Stewart

Necessity Levels: How Much Wealth Can You Have?

by Richard Stewart
Originally published September 1982

I want to tell you about four brothers that lived in a forest just outside an immense cave which tunneled through a vast mountain range. At the other end of the cave was an idyllic paradise where gold coins grew on all the trees.

Rumor had it that inside the cave were all manner of poisonous snakes and spiders, narrow ledges which dropped off into bottomless crevasses, pools of molten rock, and the skeletons of those who had failed to successfully make it to the other side of the tunnel.

The first brother had long ago tried to make it through the cave and had failed. He had fallen against a rock which had rendered him unconscious. Upon regaining consciousness, he had returned to his family and friends and had told them that he had realized that life in the forest had always been rather comfortable and that it would be best if he remained there for the rest of his life.

The second brother was a man of great courage with an equally great desire to improve his lot in life. Despite the rumors he had heard about the cave, he nevertheless entered it one day and set out to reach the land of endless wealth. Early on he suffered from snake and spider bites which were very painful, but proved not to be fatal. Later on he fell off a ledge, but fortunately the crevasse was only three feet in depth and, despite a sprained ankle, he was able to continue on his journey. Only hours before reaching the end of the cave, he fell into a steaming pool, only to find – much to his relief – that it was not molten rock but a hot water spring. He pulled himself out and at last, arrived at the land of paradise.

The third brother also desired to reach the land of riches. Wary of the rumors he had heard about the dangers of the cave, he spent time speaking to men of wisdom who had been through the cave and had found out every single barrier or danger he might have to deal with. He studied long and hard and, finally, prepared himself fully for his journey. To his surprise and relief, he found his adventure through the cave somewhat uneventful. His layers of clothing protected him well against the snakes and spiders. And the knowledge he had of the cave helped him to avoid the pitfalls his brother had encountered. With only a few minor scrapes he reached the land of promise.

The fourth brother also desired to reach the land of treasure, but was not a man of great courage and found his life in the forest to be adequately comfortable or, at least, bearable. Until one day a tribe of cannibals moved into the forest and chased him into the cave. Afraid to continue further, he coped with the cold, wet habitat for a few days and then returned to the forest once the cannibals had gone away. But, alas, the cannibals returned only days later and again chased him into the cave. And so he spent the rest of his life, advancing towards the land of riches only when chased by cannibals, and returning to the forest when the cannibals were gone.

This parable of the four brothers tells us much about necessity levels and one’s ability to break through a particular level of income or net worth and achieve greater wealth and the wherewithal to realize one’s goals in life. Did you recognize yourself in any of the four brothers? They are personalities or identities which, perhaps, we have all assumed at times, or are assuming now.

Many people have suffered failures, of which they are painfully reminded whenever they reach again for longstanding purposes. Others, few in number, through sheer power it seems, reach beyond their fears and failures and, by carefully gaining the knowledge they need to proceed with certainty, or simply by doing whatever is required to make it go right, achieve the rewards which come with courage and persistence. And some people seem to go through life trapped between the cave and the cannibals. Their necessity levels are dictated by how threatening life is at any given moment. When the bills get high enough or the car breaks down, or the kids get sick they pull enough money to handle the situation. But as soon as life becomes less threatening the fears, confusions, failures, and mental and spiritual anguish of the “cave” soon pushes them away from their own land of promise and back to their “comfortable” lives.

The history of the money game is filled with painful failures. We’ve all suffered them. We’ve all been cheated. And we’ve all cheated others. These are the spiders and snakes and crevasses and steaming pools which lay in our paths to the next higher level of financial activity and, ultimately, to complete financial independence. And the more we have failed or pushed others to fail, the more poisonous become the snakes and spiders, and deeper the crevasses, the hotter the water or molten rock and the more dark and treacherous the tunnels to financial security.

But, oddly enough, as soon as you just grab ahold of your necessity level and responsibility level and just PUSH them up, the path to greater wealth (no matter how wealthy or poor you are now) becomes much less dangerous and each further step becomes easier to take.

It is sometimes surprising how much courage and strength it takes just to get started. We usually don’t perceive it that way though. The realization usually comes in a much more mundane, more forgettable fashion. You’re just daydreaming at the breakfast table and you look back and think, “Gosh, I’ve been at this same level of net worth, this same lifestyle for a long time. I’ve always wanted to have this and that and somehow I just never seem to have them. I just never seem to have enough money – hmmmm. Oh no – late to work – gotta rush…” And so it goes, day after day, year after year.

“It is sometimes surprising how much courage and strength it takes just to get started.”

So, someday you just have to decide to DO something. You have to make this decision and not half-make this decision. If you have decided to really DISAGREE with your current condition, then the next best thing I think you can do is to increase your KNOWLEDGE. As occurred with the third brother, KNOWLEDGE strengthens everybody’s ability to go into the cave of financial activities and emerge a winner. With knowledge you can also obtain the safest and fastest route to financial independence.

What we have to offer you at R.G. Stewart & Co. and the Institute of Financial Independence is an education on the subject of finance, investments and the economy. No matter what your current financial situation is, I guarantee that the courses we have will greatly assist you in rapidly achieving your financial goals.

With much affinity and admiration,


Richard G. Stewart
R.G. Stewart