The Power of Wealth Systems

The biggest danger in 2024 and beyond is financial.

The ability to afford food, shelter & the rest of the humanity’s needs becomes more challenging in an inflationary environment.

To make matters worse we are approaching stagflation, where the growth stalls but prices keep rising… a truly deadly combination.

What’s the cure to this ailment?

You need to build Wealth Systems — these are structured methods to build and preserve wealth. These systems can range from your simple auto-transfer from Checking to Savings on payday, to a fully autonomous investment trading robot that hunts the debt & equities markets for opportunities matching your criteria.

They don’t need to ever become complicated.

Start Your Engines

I recommend building more than one “wealth engine” and layering these different income sources together into a more robust wealth system.

Wealth Systems is documenting schematics for many different engine types:

1. Wealth Engine #1: Dividends

2. Wealth Engine #2: Options

3. Wealth Engine #3: Direct Lending

4. Wealth Engine #4: Direct Investing

5. Wealth Engine #5: Digital Product Creation and Distribution

We began with the most passive method, collecting dividends. That series is 7-parts, you can enjoy the first article here:

We moved into Options next — this engine is also passive in the sense that you can get paid for the progression of time… but you must do more work to set your positions and monitor them.

Writing options is an incredible source of yield when operated correctly, here’s a link to the Part I of the 3-part series:

Stocks and their Options are largely correlated, for obvious reasons.

For that reason, many families seek to earn returns outside of the markets. That is where the next two wealth engines come into play.

Lending is one of the oldest wealth building activities. Loans provide current return for your capital, and they also typically extend multiple covenants and protections for the benefit of you, the lender. Get started here:

Investing directly into companies via SAFE or similar agreements is the 4th Wealth Engine we are exploring and optimizing. You expose your capital to even greater risk than making loans, but the capital appreciation potential is often worth the reduced preference on the capital table.

The final wealth engine we will be covering is Digital Products.

Digital products are high-margin, easy to distribute and command rising prices in our increasingly virtualized world — it’s a literal gold rush:

At this point you might be saying: where’s the real estate?

It’s a nuisance asset class - trust me from personal experience:

• 3am phone calls

• constant entropy on the property

• property taxes mean “owners” are glorified renters

• when you own properties folks think you are rich and don’t need to get paid on time, treated fairly, etc…

I recognize that in the past lots of folks climbed to wealth through real estate. I believe it will continue to produce millionaires but that the rising role of digitalization means we’re going to see a rising % of the new millionaires minted in virtual domains, not on the back of commercial or residential real estate.

Linking the Engines Together

Once you select the engines you want to build first, get to work!

Focus on getting your Dividend portfolio built out, or mastering your chosen Options strategies first and then activate additional engines once you feel comfortable with the operating mechanics.

It sounds lucrative to operate 5 or 6 wealth engines at the same time… but if your focus is poor the results could be disastrous.

Building wealth systems takes time and discipline. A mix of strategies like budgeting, saving, investing, and debt reduction is often the most effective approach.

Reach out to me with questions so I can help.

👋 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 to enable the audience to learn while also gaining practical knowledge that can be applied toward the development and refinement of wealth building infrastructure.

To help us continue our growth, would you please Like, Comment and Share this?

Thank you again!!!

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