A short transcript excerpt from a Capitalism.com YouTube video (Aug 13, 2018) where Ryan Daniel Moran describes his personal investing rules: keep a cash security cushion (about a year's fixed expenses), build a "capital warehouse" to grow with the market (and for death-benefit protection), and automate 10% of take-home pay into ETRADE to buy dividend-paying stocks. He lists three primary investment criteria: immediate cash flow, upside value appreciation, and tax protection (plus liquidity as a bonus).
Questions this video answers
$150,000–$250,000
10% of take-home pay (automated monthly)
Esther is named as beneficiary for $3,000,000
Chapters
I discovered for myself that right or wrong, you know, it doesn't matter. For me personally, I need to have a certain amount of money in the bank to feel safe enough to.
Make good decisions. And if that ever goes away, I go into freak out mode. And this is true in business, and this is true personal. And for me, that's about a year's expenses. So if there's a year's expense, fixed expenses in the bank, I go, huh, okay, we can. We can now wake up in the morning and do what we want and be a little bit more. We can be on offense. Absolutely. And so I have my security, which is a year's fixed expenses in the bank, and then I have kind of a different level of security, which is a warehouse. Right. So I put money into the warehouse so that it's growing along with the market, and that is like. It also has the death benefit if anything ever happens to me. Esther's getting 3 million bucks.
I would even go one step further, is eventually your capital warehouse will have be able to store enough in there that you would prefer to store inside of your bank account. You would store it there because it's got. From a risk profile, I believe that the capital warehousing strategy is less risk than a bank. And the reason why is the bank is zero percent, and we're in an inflationary environment. So at very least with a capital warehouse, all we've got to do to be better than a bank account is outpace 0%, 1%.
Right.
You can't do that all at one point. Like, you can't put a year's expenses in at one point because it takes time to build that.
Well, I mean, that. That depends. I mean, to be perfectly frank, my year's worth of expenses is like, you know, 150 to $250,000. So you could put that in a warehouse. Without a doubt.
Without a doubt. Yes, sir.
Right. So.
It'S so weird to say that because there's some people like, why does Ryan live so frugally? And then there's somebody else that's like, how could you possibly spend $250,000 a year?
It depends on what part of the country you're in. If they're in crypto and you're thinking, 150 popper times.
Yeah, just come to Whole Foods with me on a Friday night. You can see how you can spend $250,000 a year. But anyway, so I've got my base, like, my base amount, which is a couple hundred thousand dollars, as my cushion. Yeah. As my year's worth of expenses. And then.
And then I have the warehouse which I'm building up over time, which, which by the way, that if you've ever heard Tony Robbins talk about asset classes that go up with the market but don't go down, that's a warehouse. So I'm putting my money there. Then with 10% of my take home money from my businesses and my other investments, my total take home money, I have it set. E Trade automatically takes 10% every single month. Every single month, 10% of my take home dollars goes to E Trade. I don't even do anything with it. Once it hits E Trade, it's just going into E Trade so that I can buy dividend paying stock. When I see a dividend paying stock that I wanna buy and by having it automatically go there, I'm doing the habit of putting it into a smart play that gives me a remainder of, you know, 75% of my money. Because 10% is going to E Trade, a certain amount is going into the warehouse. I got the rest of my money to play with. And that's where I am looking for what you said, active cash flow, creating asset classes. And the three things I look for are does it produce cash flow from day one, does it have the opportunity to go up in value over time and does it give me protection against taxes? I'll throw one more bonus in there is do I access to the, do I, can I access the money quickly? If I can get two or three of those four, I'm thrilled.
