10 Investing Habits of Rich People.

by Natalie Pace.

Embody the habits of the rich to enrich your own wallet!




1. Tax-free: Contributing and trading within a tax-qualified brokerage account means that you could be earning up to 30% additional in returns (which you don’t give to the IRS for capital gains taxes). Compound that year in and year out and it could be worth millions.

Photo by: Stacie Isabella Turk, Ribbonhead.com ©2008

Stylist: Arlene Hylton-Campbel, 818-710-0079

2. Play it Safe: Always keep a percent equal to your age safe, i.e. out of the stock market. Certificates of Deposits, savings accounts, money markets, and bonds are less risky than stocks. (Bond funds should be counted as stocks, not bonds.)

3. Stocks on Steroids: Take a small percentage of your stock portfolio for trading. (Don’t trade the whole nest egg.) Subscribe to a great stock newsletter, which is tracked by an independent agency, to achieve superior returns.

4. Great Partners: Interview your financial partner (broker) as if your life depends upon it. Your lifestyle does!

5. Tithe: The first check you write each month should be to your Buy My Own Island fund. 10% for investing, so that your money can make gains while you sleep! With this habit alone, you could be a millionaire in 31 years, even if you only made $14/hour.

6. Don’t be the Bank of Mom and Dad: You’re not qualified to, nor would you want to, establish the underwriting guidelines for loaning out money to relatives. If someone needs money, consider any gift you give to be a gift or charity. If someone wants you to go into business with him or her, consider whether or not you want to provide that widget or service to the world. In most cases, you’ll be better off considering your help to be charity or fun money, and not a loan or an investment. That way if the business goes bust, which most businesses do, you can write it off to experience, rather than write off your friendship.

7. Avoid Fair-Weather Friends: Whether it is a new broker, a new person you met by email or just new interest from someone who never cared much about you, if the new relationship is all about the money, make sure you are doing business with a monk! Do your due diligence and don’t be seduced by promises of guaranteed riches, guaranteed love or a fabulous lifestyle.

8. Switch-Hit: Do as much of your day trading as possible in a tax-qualified retirement plan, such as an IRA or even possibly a college fund or health savings account. That could help you are reduce the taxes you pay on capital gains.

9. Getty/Guggenheim Your Fab Self: Find out every tax-qualified account that exists and stock up your holdings in as many protected accounts as possible, including IRAs, 401 (k)s, health savings accounts, college funds and foundations!

10. Live the Rich Life: Wealth is not just money. Wealth is enjoying a happy, fulfilling rich life with people you care about, and investing in products and services that make the world a better place. Health is wealth, so get happy & exercise! Breathing is health, so invest in green!

If you have a question for Natalie Pace, simply:

go to NataliePace.com
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ask your question in the Ask Natalie topic on the Sharing Wisdom bulletin board

FYI: Natalie answers one question per week. Preference is given to NataliePace.com premium subscribers, then current subscribers and then randomly.

View Natalie's blog Ask Natalie for investor Q&A.

Don’t Like the Weather on Wall Street? Wait it minute. It’ll change.

General Stock Market Performance

Monday, 4.11.2008 Gains since 1.2.08
Dow: 12,325.42 -6%
Nasdaq: 2,290.24 -12%
S&P: 1,332.83 -8%


Market Commentary
Overall, the weather forecast for 2008 is weakness and volatility, at least through June. The markets have been performing true to those expectations, thus, the only money being made are those day-traders who buy low and sell high, in very short windows, and those options traders who are buying and selling put options (bets that the share price goes down) in very short windows.

The markets lost money between January and April. However, anyone who bought at the low in mid-January and sold at the high in February made money, as did anyone who bought at the low in early March and sold at the high on April Fool’s Day. Puts (options betting that the share price will go down) were the easy money, however. (See our Cooling Off list for companies expected to go down in value.)


On the other hand, the stock market gains over the last 39 years have been steady and reliable – performing well above real estate, gold and bonds. During those 39 years, there have been plenty of tough times, including 2000-2002, Black Monday 1987, 9.11 and more, and still the overall return is above 10% for stocks. That means that on average, over the course of 20+ years, odds are good that you’ll still make $100 for every $1000 invested, even if your portfolio is slightly down or limping along in 2007-2008.

Investment Portfolio: Average Annual Gains 1968-2007

Small Cap Stocks 12.22%
Large Cap Stocks 10.52%
Corporate Bonds 8.47%
Gold 7.97%
Real Estate 6.4%

Source: Morningstar and Realtor.org © 2008

So, if you’re a nervous Nellie, turn off the tv, keep tithing to your Buy My Own Island Plan, make sure that you’ve got a percent equal to your age safe in bonds, Treasury Bills or the money markets and take a long term view. That perspective pays off over time, as you can see in the above chart.

If you are someone who is willing to work a little harder for gains, then the trick is buying great companies (especially those with a wide range in their 52-week low and high) when they are trading for a song and taking your profits early and often (which can be a few hours or a few days). If you’d like to learn my trading strategies, which have proven to beat the market in up and down cycles, be sure to sign up for the Get Rich and Green Retreat, which will be in Santa Monica, California, May 14-16, 2008. Call 866.476.7442 NOW, as only a handful of seats are available, or email Heather@NataliePace.com. You can find out more about this retreat at the Get Rich and Healthy banner ad on the home page.

To learn "Trading Tips for Turbulent Times" and how to "Recession-Proof Your Portfolio," read the articles of the same names from the February 1, 2008 ezine, which is archived at NataliePace.com in the online magazines section.

Market Movers:
The Bureau of Economic Analysis released its final report on the 4th quarter GDP growth on March 27th. The numbers came in at .6% -- a screeching halt from the robust 4.9% GDP growth in the 3rd quarter of 2007. The next GDP growth report – advance estimates for the 1st quarter 2008 GDP growth – will be released on April 30, 2008. This is a report that will be widely watched by institutional investors, so expect April 30th to be another wild ride in the markets – up if the numbers are more robust than anticipated (not expected), down, if the numbers are as anemic as the 4th quarter of 2007 was.

The market’s wild mood swings are almost directly correlated with headlines – up when Federal Reserve Board Chairman Ben Bernanke saves the day with another interest rate cut, crashing down whenever the reality of the depth and breadth of the real estate crunch hurts another fundamental measurement (like GDP growth). In short, I wouldn’t expect great news on April 30th. However, remember that if you’re capitalizing on the volatility in the markets, bad news one day usually means a rate cut the next day (and yet another rally). This month, the Federal Open Market Committee’s 2-day meeting begins the day before the GDP numbers are released, on April 29th, so be careful getting too gleeful about a Fed rate cut if they choose to take preemptive action on the GDP growth numbers.

Anticipate that April 30th could feature a different headline about the economy’s dangerous descent into negative growth (and a recession), unless a miracle happens and the economy performed better in the first quarter of 2008 than it appeared to have. (You’ll notice that I’ve taken most of our profits on the Hot News list anticipating a tough market towards the end of the month.)

For more BEA release dates, go to the BEA.gov website and be sure to visit the NataliePace.com calendar section often.

The Federal Open Market Committee and Monetary Policy
The Federal Open Market Committee has dropped the Fed Fund Rate each of the last five sessions. The Fed funds rate currently stands at two and one-quarter percent. Expect the Federal Reserve Open Market Committee to continue to ease investor worries, while monitoring inflation. The prevailing sentiment is still weak growth, a continued housing slump, more subprime foreclosures, a weak dollar, anemic consumer spending, turmoil in banks and financial services and rising unemployment.

Volatility prevails. In your nest egg, take a long term view and make sure that your assets are properly allocated. Keep a percentage equal to your age + 10-20% safe, i.e. not invested in the stock market (which means NOT invested in mutual funds, ETFs or bond funds). Safer investments include bonds, Treasury Bills, money markets, certificates of deposits, etc. FYI: Modern portfolio theory recommends that you always keep a percent equal to your age safe. Adding 10-20% is called overweighting into the safe categories, which is a good idea in turbulent, down-trending markets.

If Dr. Marc Miles, global strategist, is correct in his forecasts, the bottom of the market might occur between May and July of 2008. For more of Dr. Miles’ observations, be sure to read the transcript of his online chat in the March 2008 NataliePace.com ezine.

EDUCATIONAL OPPORTUNITES AND INFORMATION:

1. FOMC Information: Interested in reading the minutes of the March 18, 2008 FOMC meeting for yourself? You can. The official Federal Reserve document is available online. Click on FOMC, or go to FederalReserve.gov, to read! According to the minutes, "Further declines in house prices led to a noticeable decrease in the ratio of household wealth to disposable income in the fourth quarter. The downturn in equity prices since December further reduced household wealth in the first quarter."

The tentative FOMC meeting schedule for the 2008 calendar is: April 29-30, 2008 (Tuesday-Wednesday), June 24-25, 2008 (Tuesday-Wednesday), August 5, 2008 (Tuesday), September 16, 2008 (Tuesday), October 28-29, 2008 (Tuesday-Wednesday), December 16, 2008 (Tuesday). The fact that the Federal Open Market Committee decided to increase the number of 2-day sessions from two to four in 2008 is an indicator of the concern in the economy at this juncture.
2. Calendar Section: Conferences, Online Chats and more: Check out the Calendar section of NataliePace.com regularly. There are many wonderful opportunities to chat one-on-one with millionaire money managers, life coaches, economists, respected money gurus, real estate veterans and CEOs! Be sure to check out the dates of the mid-month Hot News on Cool Stocks Update and the publication date of our next ezine. Get more information on how to best use our articles in the FAQs article, located under the Investor Edu link on the home page of NataliePace.com. Don’t miss the Milken Global Conference, the biggest gathering of billionaires, CEOs, Nobel Laureates, policymakers and money managers of the year.

3. Survey Results
Who is your favorite Presidential candidate? What will be the top performing asset class in 2008? Make your opinion count with our online surveys.

Hot Stocks List
Investors who "never pay retail," note that highlighted stocks are trading at their 52-week lows or near the price featured in NataliePace.com’s article. This may be a good buying opportunity. The companies that are listed below which are not highlighted may not be in a good buying range, but they appear to be poised to continue performing well (if you have already purchased them). There are never any guarantees in life, and all stocks are risk-based investments. Consult your certified financial planner before making any changes to your investment strategy.

Hot News List (highlighted)
Nothing. Waiting on the sidelines to see what happens at the end of the month.

DELETIONS:
Echelon
General Electric
LDK Solar
Satcon
Suntech Power Holdings
Trina Solar Ltd.
World Water & Solar
Zoltec

For more news on the companies we are featuring on the Hot News on Cool Stocks list, the Watch List and the Cooling Off List, go to the home page at NataliePace.com and click on the article of the same name. if you are trying to access the Hot News list when the article is not on the home page, simply click on Online Magazines (across the navigation bar) and select Hot News.

Track Record of my financial news Reporting
While the markets have fallen in 2008, the Hot News and Cooling Off lists below have a winning track record – in bear and bull market years. 18 companies listed below have performed quite strongly, while the year has stumbled with negative returns, versus just six that went in the opposite direction of the reporting. Even during the flat year of 2007, our featured companies had outstanding performance between Oct. 2006 and June 2007! 4 out of 9 companies – almost half – doubled or more from the time they were featured to the time they were taken off of the list. 48% of the companies featured in my stock newsletter between 2002 and 2005 – 25 out of 52 companies -- DOUBLED as well, and the majority of the remaining 52% well outperformed the marketplace. (See the chart in the article, "25 of Our Companies Have Doubled," from volume 4, issue 4, the April 2007 ezine, for a listing of companies.)

3 out of 5 Company of the Year selections more than doubled. My 2003, 2004 and 2007 Companies of the Year have posted up to 9000% gains (Taser), up to 690% gains (Opsware) and up to 215% gains (Suntech Power Holdings), respectively. MySpace, my 2006 Company of the Year, was a large part of News Corp’s success with shareholders that year. Only OSI Pharmaceuticals, my 2005 Company of the Year, has lost money. So three out of five are superperformers, one is performing well above the market and one is down. That’s the kind of record that puts you on top on Wall Street. (I launched my first publication on 11.15.02, and featured the first Company of the Year on 1.1.03.)

TipsTraders.com has ranked me at the top of over 830 A-list pundits, where I’ve repeatedly occupied the #1 position. TipsTraders.com listed me as a Highly Recommended Stock Picker, in 2006 and 2007. Some of our best picks include: Bioteq Environmental (BQE) +144%, Blockbuster Video (BBI) +82.5%, Genentech (DNA) +415%, Google (GOOG) +545%, Las Vegas Sands (LVS) +139%, LifeCell (LIFC) +180%, Macerich (MAC) +150%, Opsware (OPSW) +690%, Rio Tinto (RTP) +145%, Sohu (SOHU) +150%, Suntech Power Holdings (STP) +107%, Taser (TASR) up to 9000% gains and World Water & Solar (WWAT) +181%.

Should I sell my gold now?

Question: Natalie, how does one watch gold prices online? I have a few American Eagles and wonder whether I should sell them (now that gold is supposed to be record high) and transfer to some of the undervalued stock such as Google and Microsoft? What do you think? Where would be the best place, in your estimation, to cash out of gold? Signed – Gold Bug

Dear Gold Bug,

Diversification is the most important part of any portfolio, second only to rebalancing. You are right to think that you should take profits on any industry that is trading near its high and buy back into undervalued assets in another industry. Always make sure that you are doing this according to that carefully laid out plan of diversification, however, so that you are never over-extended in any one asset class. For instance, if you’re 50 and you already have 50% or more of your assets in stocks, then it might be more appropriate to take some gold profits and buy some Treasury bills or international bonds. Certainly, if you don’t have any large cap stocks, and Google, Microsoft, General Electric, and more are trading at multi-year lows, that should be a consideration.
However, with stocks, remember that you must keep a percent equal to your age safe — i.e. NOT in the stock market. In bear market years, such as we are experiencing currently, many professionals overweight to liquidity. Do not be in a hurry to buy anything when cash is king. Cash will afford you the option to buy even lower next year on many different assets, especially if we are close to or entering a recession.
As for the exact point that is the highest for gold prices, no one has a crystal ball. There is a big difference between all and nothing, however. If you’re happy with the price you’re receiving and feel that money can be redeployed elsewhere to mark up gains again, that’s as great as it gets. I’ve listed the annual gains of various assets directly below. Anytime you perform above the general marketplace, you are assuring that your wealth increases more robustly than your peers, and that is a great, steady, calm, easy way to increase your prosperity and abundance. Trying to “get rich quick” or wait too long for the top price is often a money-losing proposition. In volatile markets like today, many professionals take profits early and often (which is one of the main reasons we are experiencing such dramatic volatility).

Investment Portfolio
Average Annual Gains 1968-2007


Asset Annual Gains
Small Cap Stocks 12.22%
Large Cap Stocks 10.52%
Corporate Bonds 8.47%
Gold 7.97%
Real Estate 6.4%

Source: Morningstar and Realtor.org © 2008

You can probably find a site that tracks gold prices by “Googling” gold prices! Good luck!
Additionally, below are links to two interviews that Natalie did with gold specialist, CEO and Chairman Rob McEwen (U.S. Gold). Rob has been in the gold industry for two decades, and he shares his wisdom candidly in these interviews. He notes that gold prices are tied to consumer confidence in the financial markets. When people have less faith in banks, they move to gold. If the financial sector continues to experience so many problems, then the interest in gold could continue to increase, even if it seems high right now. There are a lot of if’s in that sentence, however.

Sitting on a Gold Mine. by Natalie Pace. Exclusive Q&A with Celebrated (Former) Goldcorp CEO, Rob McEwen. Vol. 3, iss. 2.
Activate link:

http://www.nataliepace.com/newsletters/members/news.php?np=yes&issue=302/302&article=04


Nuggets Of Wisdom
(320 sec.) Gold industry veteran Rob McEwan on investing and exploring.
2006-08-22 on the Forbes.com Video Network
Activate link:

http://www.forbes.com/video/?video_url=http://www.forbes.com/video/fvn/business/np_gold082206&id=np_gold082206&title=Video%3A+Nuggets+Of+Wisdom

(If you have trouble finding the Forbes.com VN interview, just go to Forbes.com, enter Natalie Pace in the search box, and you’ll see the interview listed there.)

Do you have a question for Natalie? Just email Heather@NataliePace.com.

Market Mood Swings: Capitalizing on Fear and Loathing on Wall Street.

Market Mood Swings: Capitalizing on Fear and Loathing on Wall Street.

by Natalie Pace.

Includes my Hot News on Cool Stocks List.

Track Record of our Reporting
The Hot News and Cooling Off lists below have a winning track record – in bear and bull market years. 15 companies listed below have performed well this volatile year, versus just five that went in the opposite direction of the reporting. Even during the flat year of 2007, our featured companies had outstanding performance between Oct. 2006 and June 2007! 4 out of 9 companies – almost half – doubled or more. 48% of the companies featured in my stock newsletter between 2002 and 2005 – 25 out of 52 companies -- DOUBLED from the time we listed them in our feature article to the time when I took the company off of the Hot News on Cool Stocks list, and the majority of the remaining 52% well outperformed the marketplace. (See the chart in the article, "25 of Our Companies Have Doubled," from volume 4, issue 4, the April 2007 ezine, for a listing of companies.)

3 out of 5 Company of the Year selections more than doubled. My 2003, 2004 and 2007 Companies of the Year have posted up to 9000% gains (Taser), up to 690% gains (Opsware) and up to 215% gains (Suntech Power Holdings), respectively. MySpace, my 2006 Company of the Year, has been a large part of News Corp’s success with shareholders. Only OSI Pharmaceuticals, my 2005 Company of the Year, has lost money. So three out of five are superperformers, one is performing well above the market and one is down. That’s the kind of record that puts you on top on Wall Street. (I launched my first publication on 11.15.02, and featured the first Company of the Year on 1.1.03.)

Additionally, the market performance of the companies that are featured in my Hot News on Cool Stocks list has kept me at the top of over 830 A-list pundits on TipsTraders.com. I’ve repeatedly occupied the #1 position. TipsTraders.com listed me as a Highly Recommended Stock Picker, in 2006 and 2007. Some of our best picks include: Bioteq Environmental (BQE) +144%, Blockbuster Video (BBI) +82.5%, Genentech (DNA) +415%, Google (GOOG) +545%, Las Vegas Sands (LVS) +139%, LifeCell (LIFC) +180%, Macerich (MAC) +150%, Opsware (OPSW) +690%, Rio Tinto (RTP) +145%, Sohu (SOHU) +150%, Suntech Power Holdings (STP) +107%, Taser (TASR) up to 9000% gains and World Water & Solar (WWAT) +181%.

General Stock Market Performance

Gains 2-year 1-year 3 mo.
Dow: +14% -1% -6%
Nasdaq: + 2% -6% -12%
S&P: + 5% -6% -8%

Commentary: Trading Tips for Turbulent Time
We issued a 911 UPDATE ON THE HOT NEWS ON COOL STOCKS LIST on March 11, 2008, the morning after the markets dropped to their lowest point in years. This update is still available online at the Sharing Wisdom bulletin board in the topic of the same name.

As we indicated in the Hot News List this month, there is so much volatility in the marketplace that we may be providing updates to the list between the updates! So, even though most of the news on the individual companies remained the same (outside of the financial sector, which continues to be under extreme pressure daily), on March 11, 2008 the markets dropped to their lowest point since the beginning of 2006. Oil was over $100 per barrel and the financial markets were reeling.

March 2008 was your chance to own companies like Google for prices that haven't been seen for years. Imagine, if you bought Google for $411 on 3.11.08, you were buying at a discount of 45% from the high of $747.

So, read the Hot News updates on any of the companies listed below that you are interested in adding to your portfolio. What this note is intended to do is to alert you to the prices that these stocks are trading at today, so that you can decide if they should jump into your Stock Shopping Cart or stay on your Stock Shopping List. Remember that in your long term portfolio, you’re looking for a multi-year low price, so that you can hang onto the company for years to come (at an ever-increasing profit). In your short term trading portfolio (which should be a very small percent of your investment portfolio), it is important to take profits early and often when the markets are swinging 200 points in opposite directions day to day.

Some of the companies listed on the Hot News list are more appropriate to add to your long term portfolio, and others are more appropriate for you if you’re interested in short term trading. How can you tell the difference? If the company has a market capitalization that is under $1 billion then it is a "small cap" company with a higher risk of volatility in the share price.

In a market that swings as wildly as this market has in the past few months, that means that the share price is having dramatic fluctuations (something options traders love). If you don’t want the stomach ache or to monitor the position daily, and if you aren’t prepared to take your profits early and often, it’s best to avoid individual small cap companies. On the other hand, when you see companies that are valued at over $50 billion trading at multi-year lows, like Google, Johnson & Johnson and General Electric were in the first part of March, that might be a good time to add them to your long term portfolio. The markets can shake the price around, but over the long term – many years -- if you can buy for a 40-50% discount, that should pay off.

Note that the general market trends continue to be down-trending with very high volatility.

So, why did I think that share prices might go up again, when March 10th felt so awful? Because the Feds were expected to come riding to the rescue again with another dramatic rate slash. According to a report from Reuters on March 11, 2008, Goldman Sachs analysts were expecting the Fed Fund rate to fall to two by April. As you can see, the rate was slashed as they predicted and currently stands at 2 ¼ percent. There has been a very high correlation between these rate slashes and the markets getting stronger again.

Also, please note that some of our top performers are on the Cooling Off list. If you don't know options trading, you should consider coming to my May Retreat. This is where most of the money is being made in today's marketplace -- in puts. And because the downtrend has been so strong and dramatic, you can make quite a lot in a short period of time, even buying into options that don't expire until 2009. Of course, the commitment you MUST make when trading options is to keep the amount limited to a VERY small portion of your stock portfolio and equal to your experience. In other words, if you have never traded options before, do it in a fictitious portfolio for a year before putting your hard-earned cash on the line. And, because the market mood swings are daily, you have to commit to a daily awareness of whether your puts and calls are "in the money."

Options are very high risk and are only for the experienced trader. AND YOU SHOULD NEVER BE TRADING YOUR NEST EGG (not in options or individual stocks). Taking a long term view and letting the magic of compounding and religious investing each month (where you participate in various buy and sell moments) really does work over time. The average gains for the last 25 years were still 12.4% as of January 2008, and that includes 9.11.01, the Asian Crash of 1997, Black Monday 1987...

To learn "Trading Tips for Turbulent Times" and how to "Recession-Proof Your Portfolio," read the articles in the February 1, 2008 ezine, which is archived at NataliePace.com in the online magazines section.

All We Are Saying is Give Peace (and Business) a Chance.

All We Are Saying is Give Peace (and Business) a Chance.

by Natalie Pace

Deepak Chopra, author of The Third Jesus: The Christ We Cannot Ignore

On March 11^th, 525 peacemakers flocked to the capital city of San Jose, Costa Rica to hobnob with spiritual leaders, attend Presidential ceremonies and brainstorm strategies for promoting, in the words of Deepak Chopra, "a new world where hope, social justice, peace and a sense of the sacredness of life prevail." For the next three days, Americans, Mexicans, Europeans, Asians, Australians, Africans and even a few Texans spent time in small groups envisioning what the world needs now, what actions need to be taken to bring about the new vision and how they could network to support one another in an Alliance for a New Humanity. Spiritual gurus like Deepak Chopra (the president of the Alliance), the eloquent Marianne Williamson (bestselling author and Chair of The Peace Alliance), President Oscar Arias Sanchez (the 1987 Nobel Peace Prize winning President of Costa Rica), Baltazar Garzon (the Spanish judge who was responsible for nailing Pinochet) and other respected academics, authors, policymakers and even business leaders lead provocative debates by day, and celebrated the lush Costa Rican heritage by night.

In fact, Costa Rica was the perfect place for such a global conference, as well the leaders of the Alliance knew. Costa Rica is a groundbreaker in many regards. The country has no military, having disarmed its army in 1949. The former military headquarters is now a Museum of Peace. Money that would have been diverted to defense is poured into education. As a result, Costa Ricans are very well educated and about one out of ten people speak English almost as well as Spanish. (Learning English is compulsory, as is education, in Costa Rica.) Electric service abounds – reaching 97% of the territory! And recently, Costa Rica became the first Central American country to establish diplomatic relations with China. On October 24, 2007, President Arias of Costa Rica and President Hu Jintao of China agreed to cooperate on technologies, investment, culture, public health and agriculture.

Costa Rica is known for protecting their rainforests, for electing a Nobel Peace Prize winning President, for their educated citizens, for their spectacular beaches and for pura vida – enjoying a grand life. The cultural mix of African, Spanish and Indian makes for some of the most beautiful people in God’s creation. (I overheard a woman comment that she’s surprised that everyone isn’t half-Costa Rican -- the men and women are so beautiful.) So does peace work flawlessly when given a chance?

Peace appears to work amazingly well, especially when you consider how literate the people of Costa Rica are – in the fine arts, in addition to basic math and language skills -- compared to their neighbors. However, there are some unique factors that play into Costa Rican peace, which are not the case in war-torn countries. Costa Rica doesn’t have any rare, expensive natural resources – like diamonds, oil or gold – and the citizens feel that the United States has their back if they were to be invaded. It’s much easier to walk the back alleys of the world in daylight without anything of value glistening on your neck, and a big security guard a few paces behind you.

Marianne Williamson suggests that countries like the U.S. don’t need to disband their armies (yet) to start actively promoting peace now. As the Chair of the Peace Alliance, an organization with the goal of putting a Department of Peace in the United States government, Marianne is not proposing either or. According to Williamson, the United States needs both -- a department of peace and a department of defense.

"What a Department of Peace will do is give a more sophisticated analysis of what constitutes peace, of what it would take to wage peace in as meaningful and sophisticated a way as we now know how to wage war," Marianne proclaimed to a crowd of peacemakers last February, who seconded her thoughts with a standing ovation. "We must do more than fight our enemies. We must create more friends," she said.

Deepak Chopra speaking at the National Peace Museum in San Jose.

Peace starts with personal interaction -- even at a peace rally. It wasn’t all good times and Hallelujah in the group dialogs at the Human Forum in Costa Rica. Two brothers complained that there was too much politicizing and flagrant promotion of Costa Rica real estate for sale. "I thought that this was going to be more spiritual," they said. One panelist, Sam Keen, called for an end to all business now, saying, "The best thing the business community can do is commit suicide." In a discussion on how to influence the "influencers," an American man called business leaders "monsters," who were in the business of "profiteering for greed."

Since half of the audience was made up of business leaders (who understand the responsibilities of running a business), there were more than a few uncomfortable moments before the presupposed myths of business and money as "bad," which were held by a very vocal minority, began to be deflated. One person received a standing ovation when she called for a capital markets solution to the inhumane conditions of raising cattle, which might be contributing to the greenhouse gas effect. "If you want to stop ranchers from raising cattle, simply stop eating meat!" she said. In solidarity, the conference leaders asked for vegetarian meals to be served the following day.

Those calling for an end to all business were probably not aware that I was sent to the conference to represent business by an enlightened investment banker, a senior executive at his company, who believes that capital solutions have been responsible for many of the social innovations that we most love. He believes something even more radical -- that creative banking, for example, Mike Milken’s high yield bonds, can contribute to the "democratization of capital." This particular executive protects the people he employs, feels personally responsible for their livelihoods, promotes the interests of his customers and works to ensure that the corporation is sound so that shareholders – regular folks, like you and I, with a pension plan -- continue to benefit from their investments.

Speaking under anonymity, the investment banker wrote to me by email:

Money and business are not evil. Enlightened spiritual architects must be cautioned to not blame commerce for the structure of society. Money is a storage of potential energy. It is a transactional "battery". We don't blame batteries for the poor direction of flashlights; we shouldn't blame money for the poor direction of people.

Deepak Chopra with Costa Rican President Oscar Arias Sanchez and Culture Minister María Elena Carballo. Photo Credit: Erika Rand

When influencing the business leaders and policymakers, another attendee counseled that, "They are parents. They are people who care." She recommended that promoters of peace and sustainable living sit down and meet with business and governmental leaders as fellow souls, and that individuals should be quick to thank fast food companies that switch to paper packaging over Styrofoam. Deepak Chopra would agree. In an interview with me, the bestselling author said, "You start by giving recognition to organizations and communities that are nurturing the environment that are using wisdom-based economies for their affluence."

And thus, having 525 tourists infuse capital into Costa Rica, supporting a state of peace by spending their money on food, hotels and by shopping in the malls, is in perfect alliance with the mission of the Human Forum. Whether the attendees understood it or not, the money brought into Costa Rica from their conference plays a role in ensuring that a country dedicated at its core to natural existence, preservation of rain forests and promoting peace among its neighbors continues to flourish. As Deepak Chopra said, "Costa Rica could serve as a model, as a microcosm for what could happen in the rest of the world."

By the end of the three days, it felt as though business leaders had infused greater tolerance into the peacemakers and the peacemakers were learning to employ best business practices to achieve their ends. All in all – it was just another day at the office, full of give and take, push and pull, frustration and insight, and, ultimately, celebration and a spark of new ideas. They came thinking that peace began with an end to business as usual, and left singing, "All we are saying is give peace and good business practices a chance."

Deepak Chopra is the President of The Alliance for a New Humanity, the founder of the Chopra Wellness Center and the author of more than 40 books. You can access more information on Deepak Chopra, on The Third Jesus, on the Chopra Center and on the Alliance for a New Humanity, at Deepak Chopra’s website, DeepakChopra.com.

For more information on Marianne Williamson and Marianne’s new book, The Age of Miracles, go to Marianne.com. For more information on the Peace Alliance and the Department of Peace bill that is currently before the House of Representatives, go to ThePeaceAlliance.org.

To find out more about vacationing in beautiful Costa Rica, with their white-sand beaches and rain forests, go to VisitCostaRica.com.

Other articles of interest in our ongoing Peace = Prosperity series:
Justice Sandra Day O'Connor on Peace and Fairness in Iraq. Exclusive Interview with Natalie Pace. Vol. 4, issue 9.

Peace = Prosperity. Q&A with Dr. Gary Becker, esteemed University of Chicago economist and Nobel Laureate, on how freedom, democracy, war, terrorism, riots and gangs affect a nation's prosperity. By Natalie Pace. Vol. 4, issue 6.

The Economics of Disaster Management. By Dr. Gary S. Becker. Vol. 4, issue 6.

Stars Shine on Marianne Williamson’s Peace Plan. by Natalie Pace. NataliePace.com archived ezine, vol. 4, issue 3.
Steven Tyler, Joaquin Phoenix, Amy Smart, Deepak Chopra, Reverend Michael Bernard Beck, Frances Fisher, Denise Brown and Marianne Williamson entertain, inspire and educate Marianne’s Peace Alliance conference attendees to become citizen lobbyists on behalf of House Bill number 808, calling for a U.S. Department of Peace!

Spiritual Gurus Weigh in on The Department of Peace Bill. By Natalie Pace. NataliePace.com archived ezine, vol. 4, issue 3.

China's Evolution Toward Freedom. A candid interview with one of the most respected CEOs in mainland China, Dr. Charles Zhang, Chairman and CEO, Sohu.com. By Natalie Pace. NataliePace.com archived ezine, Vol. 4, issue 1.

Gap's Inc(RED)ible Campaign to Empower Africa. By Natalie Pace. Featuring (PRODUCT) RED. Vol. 3, issue 12.