I Made Millions Of Dollars. Here’s How I Invest My Money For Retirement

$1,110,000 a year after tax, and not from a brokerage account pulling 4%, not from dividend stocks, not from a rental property on its very best year, but from a system, a system built on one fact that almost nobody really talks about. So today I want to show you the math that you can build into a real wealth system around and why the 4% rule looks broken once you see this. So let's go. Now, before we go into how we should do things, let's just talk about the broken system that we're in today. Now, traditional financial advice tells you that you can sell 4 4% of your assets into retirement. And I think that's one of the most overrated pieces of advice that you could ever get in retirement planning for a number of reasons. Number one, it's fundamentally flawed. What I call— it's been infected by the fiat virus mindset because your goal is that you die before you hit zero and then you pass nothing into the future. And I believe that we're here to push value into the future, not take, not as consumers. And so I reject that advice from day one. But if we just look at the sheer math of it, It doesn't work. Now the 4% rule, number one, depends on my assets continuing to compound at a rate that's probably not sustainable. Number two, it doesn't take into consideration what happens if we go through dips? What happens if we see another 2008 and the market dips for 7 years? What if we see another 2000 where it took the market over 15 years to get back? How do I continue to pull 4% out? So we fundamentally reject that premise of dying with zero, and we also reject the math. So if we reject the math, then how do we think about things differently? Well, again, if we reject traditional financial advice, which of course doesn't work, we can see it in the data and the numbers. They would also try to tell you that you should build up enough assets that you would have enough basically in savings that you could spend it down before you die. That's the wrong way to approach it. What we want to do is start with the end in mind. What is the monthly income that would lead to my ideal life? That's the question I want to ask. So is it $6,479 a month? Is it $11,259 a month? What is the monthly income you need in order to provide or support your ideal lifestyle? Start there. Then what we do is we say, now what is the asset base that I would need to support that income number without having to sell it off, without 4%? What is that number? It's a different way to approach the math. It's a way that compounds wealth forever. It's a way that pushes value into the future. So what's the income that I need? What is the asset base that I need to support that income number? Now, just for quick calculations, it depends on how you set up your wealth operating system, but if we build it up and we engineer the outcome that we typically are able to produce, I would say somewhere between 10 to 15% of your asset base could be pulled out against it in perpetuity without stopping the compounding and without ever selling off those assets. So that means for round numbers sake, if I needed $150,000 per year to live my ideal lifestyle, I would need approximately $1 million of assets. And that million dollars of assets would never be spent down. It would continue to compound forever. So the question then is becomes, how do I get the million dollars? Which is a completely different question. While that may sound simple at first, it gets a little bit more elegant when we peek under the hood. So there's a couple of assumptions that we have to understand. First of all, how am I able to pull out 15% against my assets per year without spending them down? Simply, the assets have to be producing more than 15% compounded annual growth rate. So number one, my assets have to be compounding faster than that rate. Then we might ask, well, what kind of assets can produce this type of return? My financial advisor saying I should expect 6 or 8%. How could I predict or how could I project or how could I depend on a return rate of 12% or 15% or 20%? How could I make that work? Well, a wealth engineering system doesn't rely on the assets specifically. It doesn't depend on buying the right assets. It doesn't depend on you having to find the right meme stock or crypto token. It doesn't depend on you having to go out on the risk curve. What we do is we take traditional assets, real estate, S&P 500, Bitcoin assets, and we engineer them to produce the return that we want. Now, we only produce the return that we want, or more specifically, that we need. And of course, that starts with trying to understand the end in mind. Where are we trying to get to? When do we need to get there? And how do we engineer that outcome that allows us to achieve that in the timeframe that we need? Now, of course, one thing about building wealth, one thing about life in general, is that everything has a risk. Everything. And so a lot of times people think of things as either being risky or not risky without realizing that both options typically carry risk. Let me give you an example. I should probably go to the gym and I should probably be in shape, but if I go to the gym, I run the risk of getting in a car accident on the way there. I run the risk of dropping a weight on my foot. I run the risk of hurting my shoulder as I'm bench pressing. There's a lot of risk of going to the gym. I could stay home, but now I run the risk of obesity and heart disease and depression. So I can choose which risk I want. The risk of going to the gym are easier to mitigate than they are to mitigate against risk of sitting on the couch. With investing, it's about the same way. Now, when you hear about engineering outcomes and investing in layers and using things like arbitrage and leverage, it sounds very risky and there's risk. I don't want to downplay that, but what is the risk of not doing it? The risk of not doing it is guaranteed to not have enough money to retire. How do you mitigate against that risk? Well, you have to do a system like this. So the next question is like going to the gym. If I'm going to build a wealth engineering system, if I'm going to invest vertically through layers instead of horizontally, how do I mitigate against those risks? So the real risk is not understanding there's risks in both scenarios. The real risk is not identifying those risks so we can mitigate against those. The real risk is taking one piece of this and applying it without understanding the whole system. And so the key is there's risk in both. I can take the risk of doing nothing, understand that that's a real risk and I can't change that, or I can move forward and I can mitigate against those risks. But of course, as we're talking about risk, we have to understand the biggest investing breakthrough I ever had wasn't finding a better asset, and it wasn't just taking on a bunch more risk. It was realizing the people who built the real real wealth usually aren't the smartest investors in the room. They're the people who built systems that gave them the ability to hold through volatility instead of being forced to sell by risk at the worst possible time. And of course, that changes everything, because once you stop becoming a forced seller, then compounding starts working completely differently. It's exactly what I break down inside the Wealth Operating System. I showed you how a high-level investor thinks about cash flow, how they structure liquidity, how they think about assets in a way that gives them staying power, because the system matters more than the individual investment ever will. If you want to be a part of the workshop, click down below and I'll see you over there.