If You're 57 and Want to Travel Full-Time, Follow This 3-Year Plan

Hey, just stop right there because you don't have to sell a single share to fund your retirement. Everyone says liquidate, you know, take profits, cash out. That math, it kills portfolios, especially when you're 57 years old. A 40% drop in year 1 doesn't just hurt, it's way worse. It permanently destroys 30 years of compounding. But the people who survive that, they do it completely differently. You see, they never sold into it. They built a withdraw structure before they packed their suitcase or booked their flight. There's a specific way to sequence the first 3 years so a crash never forces your hand. By the end of this video, you'll have the entire blueprint. So let's go. So the first thing we need to do is we need to count the costs. How much money do I need in order to achieve the things that I want? So if I'm 57 years old or 62 years old or whatever, and I want to go travel, then what do I need? How much money will I need? Now, there's a lot of costs that people seem to overlook, which can completely blow them up. So for example, if I'm a 57-year-old with a big portfolio, but I don't have a withdraw sequence and I don't have the actual cash flow I'll need, if I don't have that mapped out, I could run out. So for example, if I retire, let's say before I'm 65, that means I'm going to have to pay my own health insurance. I don't have Medicare. It doesn't start until 65. So if I retired at 57 and I don't get Medicare till 65, that means I have to cover my own health insurance for 8 whole years. Now, what type of insurance do I want? What type of insurance do I need? How much will that cost me? But that's something right there that catches people completely off guard. And so missing little things like this can completely derail your entire retirement plans. So the first thing we need to do is figure out how much money do I need? Where will I live? How much will I travel? How much will that cost me? And then understand all the hidden expenses that catch people off guard, like having to cover your own insurance. So then the next thing is we can talk about the costs that we know. So for example, now I want to go travel. So What type of travel will I do? How often will I go? Am I going on cruises? Am I going to go stay in Airbnbs? Am I going to the lake an hour from my house or am I traveling around the world? Do I want to go once a month or do I want to go once a year? So you have to start to build these things in. What's realistic for you? Now, a lot of times we want things that maybe aren't realistic. So let's start with what's realistic, but we need to come up with a budget. So what will my housing costs be? What will my flights cost me? What will the food cost me? My insurance, the tax I'll have to pay, all of those things. And I want to work that out into like a monthly number. And then I want an annual number. Only once I know the number or the target am I able to start building a plan for that. Now, AI can help you with this, but let me give you some examples. So let's say that maybe for a modest traveler, and I want to travel international and I want to travel pretty slowly, and let's say that you're going to probably spend $2,000 to $3,000 a month per household. Now, this is for the travel, right? It doesn't cover your other costs that you may have at home. Now, I probably, as I said earlier, maybe I have to cover my own healthcare. Well, that might add anywhere from $1,500 up to $1,800 a month per person. And again, that's from age 57 up to 64. So once I understand how much I'm going to need to travel, what my cost will be to maintain my house at home, my insurance costs, my total costs, I'll now have my monthly spend or my annual spend that I need. Now, traditional financial math would tell you that you can withdraw about 4% of your portfolio per year. In order to achieve that. Of course, I reject that premise. That's not how I do the math. I think a little bit differently, but let's just stick with that for a second. So based off of that math, let's say that you have a $2 million portfolio. If I could pull 4% a year, under that 4% number, that would support about $80,000 a year. But there's other ways to get into that. We'll come back to that. Now let's say that we have two different retirees and they both have the same goal. So they have, let's say, the same amount of starting capital, call it $2 million. They have about the same return. Let's call it just 10% for easy numbers, and they have about the same timeframe. Let's call it 15 years. But it's not about what they have. The two of them have the same numbers. It's about the plan or the strategy in which they do this. So for example, let's say that Person A decides to sell off some of their assets over time to pay for this. Well, even though they're growing at 10%, we have to understand that that compounds over time. But if I'm selling it off and we understand that the market sort of does this, I'm selling off a much larger chunk down here a little bit less here. I sell more down here, less here. But what that does, it takes away my compounding power here at the top because as I'm selling this off, I have less and less and less to compound up. Person B does something different. Person B issues credit against their assets, so they're not selling. What that means is they allow the full weight of their assets to compound higher and higher and higher, and then they only have to issue the debt. So when they're issuing credit, let's say that they're paying 5 or 6% on that credit. Well, what is their portfolio doing? If their portfolio is compounding at, say, 10%, they have a positive 4% gain every year, even though they're issuing credit against it or pulling liquidity out against it. And these ups and downs in the market don't adversely affect them because they're able to issue credit against those assets regardless if it's up 5% or down 10%. It doesn't really matter. And I can now benefit from the long-term compound annual growth rate, compounding over a long period of time. This is why Person B ends up in a completely different place. They are building generational wealth and never having to worry about running out of money. Whereas Person A has to worry about every single market sell-off. They have to worry about every single news event that happens because it adversely affects their portfolio. And at the end of the day, they're hoping that they die before they run out of money. Hey, quick thing before I keep going. What I just walked through is something most people never actually run the numbers on, for their own situation, and it costs them for years without even realizing it. Now, my team runs a free strategy session where we look at your actual numbers and we tell you where you really stand. Now, this isn't for everyone, but if you've got some money and it's on the line and you want a real answer instead of just a guess, you want the data, then go down below right now, book a call with my team, and then come back and finish this. Now, the more volatile the asset, the more this can adversely affect me. So let's say like my favorite asset, Bitcoin. Now, it depends on where we want to measure it from, but let's use the $200 weekly moving average, which is, uh, the long-term average. What we can see is that Bitcoin moves in these cycles. A lot of people confuse the bottom of a market with the previous top of the market, for example. But if we look at the 200 weekly moving average, it's averaging about 30% compound annual growth rate. So right now, today, we saw a previous high of about 126, and today it's about 65K. So it's down about 50%. Now, if I sell some of my Bitcoin today at 65K, I'm permanently locking in that loss. And when it goes back up to $200K or $500K or $1 million in the future, I won't participate in any of that growth because I've sold it at this level. Whereas if I wanted to say issue credit against just like, say, 10% of it right here, I'm able to now get the liquidity I need to now fund my travel, fund my retirement, fund the insurance payments that I now have to make. But I'm still retaining the Bitcoin that I have so I can still participate in all that upside. So the more volatile the asset that I have, the more a strategy like this this becomes important for me. Now, understanding how to pull the liquidity out of my assets, of course, requires structure. It could implement a little bit of risk, but all that risk can just be mitigated if I use the proper structure and engineering behind that. If you want to know more about how we use tools like the Balance Sheet X-ray to think about our assets differently, we use something called the 4 layers of liquidity so we can protect our assets and fund ourselves for the year or two we want to go travel. Then you might want to go watch this video right here where I break down the entire wealth operating system and the 3 engines that builds that wealth, and I'll see you over there.