Building new wealth engines is the 2nd best part of what I do.
Hacking our existing wealth engines to optimize their performance is my favorite part of the job.
🥺 Please follow our newly launched video channel Hacking Wealth.
There is something so satisfying in taking a money-making enterprise / portfolio / engine and making it run better.
There are many ways to improve performance: generating more yield, producing a more consistent return profile, reducing drawdowns or volatility, or even something simple that isn’t performance related but still beneficial like automating reporting.
I started on Wall St but nowadays I build revenue intelligence software and provide revenue strategy and operations consulting to B2B companies. That is a constant exercise in optimization. Some days I work 12 to 15 hours on different aspects of revenue system design, data engineering, business intelligence or everyone’s favorite - fixing bugs.
Outside of work I like to optimize the wealth engines that power our family investment accounts, too.
As most of the longtime subscribers know I’ve operated 5 different wealth engines previously:
Dividends
Options
Direct Investing
Direct Lending
Digital Products
Lately my focus has been changing.
I have not been actively writing options or engaging much in the covered calls, straddles and other income producing strategies. This isn’t because I’ve lost faith in their ability to generate returns — they just demand more attention / bandwidth than I currently have. I am very focused on the 5th item (digital products) and managing existing investments + loans.
I am working toward liquidity events on both the lending and investing fronts and the plan is to buy more bitcoin + use those proceeds for marketing expenses for my companies. If there is extra we will potentially make a new investment and/or loan — I always evaluate interesting opportunities and good people.
We stopped DRIP (dividend reinvestment program) and are converting distributions to bitcoin. Given how overpriced the market is relative to cyclically adjusted price-to-earnings (CAPE) ratio I am considering selling some/all of the dividend portfolio and buying BTC + funding a special opportunities fund for “land of the blind” time.
Basically: get to cash, hunker down and wait for the election + post-election energy to dissipate.
Of course the counterargument - the castles keep floating higher in the sky and we miss out on another 20% or more of upside.
I’m betting on (and preparing for) the downside not the upside scenario.
The Plan
I’ve written previously about the digital gold rush.
The world is rapidly shifting towards a digital reality where virtual spaces and assets are becoming increasingly important. This "Digital Gold Rush" is driven by the potential for high returns, the desire to participate in a new economy, and the fundamental human need for belonging and expression.
Digital assets offer several advantages over physical assets, including:
Lower maintenance
No need for repairs or upkeep.
Reduced stress
Fewer emergencies and disruptions.
Unlimited scalability
Easy to expand and meet growing demand.
The digital world democratizes wealth creation by:
Lowering the cost of entry
Starting a digital business is more affordable than investing in physical property.
Removing barriers to entry
Little paperwork required - test and validate business models before investing time and capital.
Emphasizing knowledge and skills
Your time and effort are the most valuable assets.
Technology is advancing rapidly and the online landscape is vast and constantly evolving, so the possibilities for developing digital assets are nearly endless.
Here are a few categories with some specific examples to spark your imagination:
Content Creation
The obvious one — I am building a niche media group around the things I know: technology, wealth and business. Leverage your energy and perspective to create a valuable item or family of content.
Blog posts and articles: Share your expertise, insights, or creative writing with the world.
Ebooks and guides: Package your knowledge into downloadable resources.
Online courses and workshops: Teach skills or share information through structured learning experiences.
Videos and podcasts: Create engaging audio-visual content for entertainment or education.
Social media content: Build a following and engage audiences on platforms like Instagram, TikTok, or YouTube.
Software and Applications
You can use AI tools to create working apps, software tools, websites and more.
Mobile apps: Develop tools or games for smartphones and tablets.
Web applications: Create interactive online tools or platforms.
Software plugins and extensions: Enhance existing software with new features or functionality.
Website themes and templates: Design visually appealing and functional website layouts.
Digital Art and Collectibles
NFTs (Non-Fungible Tokens): Create and sell unique digital art, music, or collectibles.
3D models and virtual assets: Design assets for use in virtual worlds or games.
Digital illustrations and graphic design: Create visual content for websites, marketing materials, or personal projects.
Online Communities and Platforms
Membership websites: Build exclusive communities around shared interests or goals.
Online forums and discussion boards: Foster online discussions and knowledge sharing.
Social media groups: Create dedicated spaces for like-minded individuals to connect.
Data and Information
Online databases and directories: Compile and organize valuable information for specific audiences.
Research reports and white papers: Share in-depth analysis and insights on relevant topics.
Digital templates and spreadsheets: Create reusable tools for productivity and organization.
Key Point: The key is to identify your skills, interests, and the needs of your target audience. By combining your unique abilities with the power of digital tools and platforms, you can develop valuable digital assets that generate income, build your brand, and contribute to the growing digital economy.
You can see why I am focusing more of my time and energy into businesses that operate with online models.
AI is further revolutionizing the digital landscape by automating tasks, personalizing user experiences, and increasing engagement through gamification. This makes digital assets even more lucrative and accessible.
The digital world empowers individuals by providing leverage in creation and distribution — this means powerful tools and platforms enable anyone to design, develop, and market their digital assets to a global audience.
While competition is fierce, the world of digital assets offers unprecedented opportunities for those who are willing to learn, adapt, and create high-quality assets.
So the plan is simple: keep building digital assets and stockpiling cash — if an opportunity to purchase a portfolio of digital assets or an e-commerce company avails itself during the forecasted economic tumult I will be ready.
If that crash never happens and instead earnings surge and the market booms… I’ll reevaluate and likely activate the Options, dividend and investment engines.
Until then, its all about making hay while the sun is shining.
👋 Thank you for reading Wealth Systems. I started this in November 2023 to share the systems, technology, and mindsets that I encountered on Wall Street.
💡The BIG IDEA is share practical knowledge that can be applied toward the development and refinement of wealth building systems.
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