Income Needs to be the Outcome
Wealth Systems is dedicated to the idea that individual investors should have access to the same information and same strategies as the Elite.
My background in investment banking and alternative investments connected me with hundreds of professional investors including sovereign wealth funds, single family offices and everything in between.
And there is a lot in between.
This prompted me to study the history of wealth making including the financial histories of the wealthiest families in Europe and America.
One common thread between all of them: current income.
They all had more than one income stream. Most had four, or more. The best and biggest families layered passive income streams with active endeavors, and then compounded this wealth with financial engineering.
We’ve unpacked several wealth engines, but these two are powerful and they can be amplified when paired together:
Dividends
Options Writing
The idea with layering income bearing investments is simple:
If you have 90 different income generating investments that pay quarterly dividends, you will (on average) receive a dividend payment every day.
With a passive income machine running like this, you can:
activate a new wealth engine
add more capital to your existing engines
invest in information that unlocks more opportunities
buy into a cash flowing business
buy into a a development asset (copper mine, etc..)
offset your monthly operating expenses
treat your family to a nice vacation
When you activate a wealth engine like this and then build another wealth engine… the cash flows compound and assets accrue.
It’s so much easier to make money with money.
The Blueprint of the V12 Wealth Engine
I have spent decades tearing down the financial engines of the global elite.
And I found a flaw in your design.
Most of you are operating on a Single Cylinder. You have one job. One paycheck. One source of fuel. If that cylinder misfires (if you get fired, if the market turns, if the algorithm shifts) your entire vehicle comes to a violent halt. This is not bad luck.
This is bad engineering.
The Architecture of Velocity
The Elite do not rely on a paycheck.
They understand the physics of money better than you do. Money must move. Stationary money is sludge. It gums up the gears. Moving money generates Torque.
The strategy is not “diversification.” That is a weak word for weak hands. The strategy is Redundancy.
We have dismantled the primary wealth engines you need to install in your chassis:
The Intake Valve (Dividends): Consistent, rhythmic fuel injection.
The Turbocharger (Options Writing): capturing premium to boost yield.
The Alternator (E-Commerce): Automated systems that generate power while you sleep.
The 90-Piston Protocol
Here is the schematic for total sovereignty.
Imagine you install 90 distinct assets. 90 tickers. 90 contracts. 90 distinct mechanical components.
If each pays out on a different schedule, you achieve Continuous Combustion. A dividend hits your account every single morning. The engine never goes cold.
When you achieve this state of mechanical harmony, the game changes. You stop trading time for money. You start using the exhaust of one engine to fuel the next.
It Is Time to Build
The system is simpler than you think. But it requires you to kill your ego. You must admit that your current build is obsolete.
It is easier to make money with money. That is a law of physics. Friction decreases as velocity increases.
But you must start the ignition.
Do not wait for a windfall. Do not wait for permission. Do not wait for the “perfect time.”
Build a single piston. Get one asset that pays you while you are offline. Then build the second. Then the third.
Get your money in motion.
Analyze your current financial chassis. Identify exactly how many independent income streams (cylinders) you currently have firing. If the number is one, your immediate directive is to deploy capital into a single, yield-bearing asset this week.
The Diagnostic
You asked to look under the hood. I am going to show you the cracks in the metal.
Most investors build their portfolios based on hope. They buy a stock. They pray the line goes up. This is not engineering. This is gambling with a tie on.
If you are not operating like a Sovereign Wealth Fund, your system has leaks. I see the same three mechanical failures in almost every retail portfolio I audit.
Here is why your engine is stalling.
The “Yield Trap”
You look at a number. You see “8% Yield.” You get excited. You buy the asset. You are walking into a minefield.
Amateurs chase yield. Professionals inspect the chassis. Often, an abnormally high yield is a distress signal. It means the stock price has collapsed, artificially inflating the percentage payout.
You are buying a car with a blown transmission because it has a fresh coat of paint.
The Weakness: You prioritize the payout over the sustainability of the payout.
The Fix: You need Dividend Growth, not just Dividend Yield. You need a machine that gets stronger under load, not one that is red-lining just to stay alive.
The Velocity Gap
Look at your bank statements. When do you get paid? Once a quarter? Maybe twice a year?
This is unacceptable friction. A quarterly payment is a distinct lack of torque. Money that sits in a company’s treasury for 90 days before reaching you is money that is effectively dead.
The Elite operate on High Frequency. They do not wait for the harvest season. They engineer a greenhouse.
The Weakness: Your cash flow is lumpy and slow. You cannot compound what you do not have.
The Fix: You must layer your assets to bridge the gaps. You need monthly payers. You need options premiums (weekly). You need to increase the RPM of your capital.
Dead Capital
This is the most subtle killer. You receive a dividend. You automatically reinvest it (DRIP) back into the same stock.
Standard advice says this is smart. “Compound interest” they say, as they swirl their matcha.
But there is a problem. You are trapping your soldiers in the same bunker.
If you have a Winning Engine (a stock performing well), and you pour all its fuel back into itself, you are creating a concentration risk. You are not building a V12. You are building one giant, unstable cylinder.
The Weakness: You are failing to distribute power.
The Fix: Use the exhaust from Asset A to fuel the purchase of Asset B. Take the dividends from your blue-chip stocks and buy the risky Angel Investment. Take the cash flow from the Real Estate and buy the boring Index Fund.
Circulate the blood. Do not let it pool.
The Verdict
Your system is likely static. It relies on market appreciation (luck) rather than mechanical cash flow (engineering). It is fragile. It is slow.
We need to take your existing capital and force it to work harder. The fastest way to do this (without needing millions of dollars) is to become the “House” rather than the “Gambler.”
The Time Arbitrage
Stop guessing direction. Direction is for gamblers. Direction is noise. The market is a chaotic system. Predicting it is a fool’s errand.
But Time? Time is constant. Time is linear. Time is ruthless. Every second that ticks by, an option contract loses value. This is called Theta Decay.
Most traders fight Theta. They buy options, hoping for a miracle before the clock runs out. They are fighting gravity.
We do not fight gravity. We harness it. We Sell Theta.
Be a Theta dealer.
When you sell an option, you are selling a melting ice cube. You collect the cash upfront. Then you wait. As time passes, the obligation shrinks. The value of the contract evaporates into your pocket.
You are no longer a trader. You are the Insurance Company. You are the Casino. You do not care who wins the hand. You collect the rake.
Level 1: The Landlord
You already own the stock. (If you don’t, you are a speculator, not an investor).
… but right now, your stock is lazy. It sits there, hoping for appreciation.
The Strategy: Sell a Call Option against your shares.
You agree to sell your shares at a higher price (the Strike Price) in the future. In exchange, the buyer pays you a Premium (Cash) instantly.
Think of this as collecting rent on a house you live in.
The Scenarios:
The Stock Stays Flat: You keep the stock. You keep the Rent (Premium). You do it again next month.
The Stock Drops: The Rent buffers your loss. You are safer than the buy-and-hold investor.
The Stock Rockets Up: You sell your stock at the higher price. You keep the profit up to that price. You keep the Rent.
The Ego Trap: You might complain. “Matt, if the stock goes to the moon, I miss out on the extra gains!” Stop. That is Greed talking. Greed destroys portfolios. We trade “potential, imaginary upside” for guaranteed, realized cash flow.
We take the sure thing. Every time.
Also, you can create leveraged upside exposure with other strategies and without tying up as much capital.
Level 2: The Sniper
Most people buy stocks at the market price. They pay retail. They see a stock at $100 and buy it at $100.
This is inefficient. We want to buy that stock at $90. But we do not just place a limit order and wait. We demand to be paid for our patience.
The Strategy: Sell a Put Option below the current price.
You promise to buy the stock if it falls to your target price ($90). The market pays you a Premium for this promise.
The Scenarios:
The Stock Stays Above $90: The option expires. You keep the cash. You never buy the stock. You essentially got paid for not buying anything.
The Stock Falls to $90: You are forced to buy the stock at $90.
The Magic: You wanted to buy it at $90 anyway!
And you still keep the Premium. So your effective cost is actually $88 or $87.
You are being paid to buy assets you love at a discount. This is how you acquire inventory for your machine.
Level 3: The Infinite Loop
This is where we achieve a better Return on Equity (ROE) and build a machine.
We combine Level 1 and Level 2 into a self-sustaining engine. We do not care if the market goes up or down. We simply process the order flow.
The Cycle:
Sell Puts on a high-quality stock. Collect Cash.
Repeat until the market dips and you are assigned (forced to buy) the stock.
Own the Stock. Now you have the asset.
Sell Covered Calls on that stock. Collect Rent.
Repeat until the stock rallies and your shares are called away (sold).
You now have Cash. Go back to Step 1.
This is the Wheel.
It churns. It grinds. It extracts value at every turn. It extracts value when you enter. It extracts value when you hold. It extracts value when you exit.
While the “investors” are panicking about headlines, you are mechanically harvesting volatility.
A small but important note: if you aren’t running this wheel in a profit efficient way, in a tax efficient environment.. you are working for the service providers, not making money for yourself.
The Warning
Options writing is a power tool. It can build a house, or it can cut off your hand.
Do not sell Puts on garbage. Only run this engine on companies you are willing to own for 10 years.
Do not use margin. Leverage is a fragility. We want Anti-Fragility. Cash-secure everything.
Kill the emotion. The numbers do not care about your feelings. Trust the decay.
Friends: in addition to the 17% discount for becoming annual paid members, we are excited to announce an additional 10% discount when paying with Bitcoin. Reach out to me, these discounts stack on top of each other!
👋 Thank you for reading Wealth Systems.
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I started Wealth Systems in 2023 to share the systems, technology, and mindsets that I encountered on Wall Street. I am a Wall St banker became ₿itcoin nerd, ML engineer & family office investor.
💡The BIG IDEA is share practical knowledge so we can each build and optimize our own wealth engines and combine them into a wealth system.
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