Many need advice not only on how, but also on what kinds of investments to make, and Wells presents information on 20 types of investments in his workshops. He does not tell participants where to invest or what to purchase, but tries to explain various investment opportunitiesthe advantages and disadvantages of eachand allows participants to make their own decisions. He also devotes considerable time helping each participant determine his or her own risk profile. Once the level of risk is defined, an asset allocation plan can be formulated. Wells feels that teaching people how to save, particularly for retirement, has become an increasingly critical issue.
Net worth is calculated by deducting one's liabilities from assets.
Assets include investments and real and personal property owned, and liabilities are any debts owed. According to Wells, most people wait too late to start plannning or saving for their retirement. He believes people should start saving for retirement in the early twenties to ensure that investment income and pensions will equate to more than 60 percent of their working-days' income. He stresses that the compounding effect is vital when planning for the future. He allows that amount to continue to compound.