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Your Top 5 Ways to Preserve Wealth

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RichieG

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Sep 27, 2018
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After investing in the business I am going to have about 10k a month left. I need a platform for this money.

I have 3 years of living expenses in a fixed simple savings account.
Mortgage Free
No Debt

I have been working through various ideas.

1)AT the moment I am leaning towards £3000 in a global vanguard index fund. £1000 in Global Government Bonds then put 3000 a month away until I have 40% for a new property to let out. Then the 3000 in a long term savings account until I know what I want to do with it.

2) Or do I look to start a new business?

Any thoughts on the 2 options?? I will be still growing the current business so these figures will change.

Any other ideas?

1) Low Cost Index Funds ( Global )
2) Real Estate
3) Precious Metals
4) Bank Savings
5) Municipal Bonds
6) Global Government Bonds

Where do rich people put their money? i'm sure its not in a bank at less then 0.5%?
 

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Last edited:

Kung Fu Steve

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This is where I'll get strung up, drawn and quartered...

But it's the exact situation to recommend Money: Master the Game.

It's an advanced guide on asset allocation (Not the get-rich book everyone seems to think it is :smile2:)
 
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RichieG

RichieG

Contributor
Sep 27, 2018
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This is where I'll get strung up, drawn and quartered...

But it's the exact situation to recommend Money: Master the Game.

It's an advanced guide on asset allocation (Not the get-rich book everyone seems to think it is :smile2:)
I have read quite a bit about this but not that exact book. Craig Israelson ( 12/7 Portfolio ) and Meb Faber ( Trinity Portfolio ) offer similar thoughts on spreading across certain asset classes. The figures look great on historical data but its still a risk as all your money is in markets with no idea what they are going to do in the future.

This perhaps could be 10-20% of your portfolio for preservation ( if you are well set with cash and net worth )

I am trying to get a balanced portfolio of assets for preservation not just market related products
 

Envision

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10K isnt really enough to invest and make an impact, you need more $.

I have a formula ive been outlining that im going to make a thread about soon but the framework is essentially:

1. Create a High Generated income > Invest it into Passive Income (REI)

2. Grow Passive Income to the point where it can fund itself creating more passive income

3. Scale Passive income and generated income to your desired goal.

Basic Outline:
- use your business to fund real estate investments
- grow your passive real estate investments to the point where it can pay you, cover expenses, and grow itself at a KNOWN rate.
- Implement systems to continue scaling your business and real estate investments.
- When you have extra income after this system is in place you could invest in dividend producing stocks, commodities, and other businesses to diversify you're income streams.

To sum this, I believe that preservation is growth, and maintenance is death. I think the best thing to "maintain" is to outsource, decrease your workload without crippling your income streams.
 

MJ DeMarco

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1)AT the moment I am leaning towards £3000 in a global vanguard index fund. £1000 in Global Government Bonds then put 3000 a month away until I have 40% for a new property to let out. Then the 3000 in a long term savings account until I know what I want to do with it.
I don't understand, is there a CAP on how much you can put in these funds?

The amount you're describing isn't that much to make a difference other than having capital for future business or higher producing investments.

In other words, there's nothing wrong with having the cash parked and making 1%. We're not talking about $1M.

Your Top 5 Ways to Preserve Wealth
Key word here is "preserve".

1) Hard assets, such as real estate. I sleep soundly knowing I own my home mortgage free. Having your home ownership cost at almost nothing is incredibly wealth preserving.

2) Business assets, your own, but also including public stocks, preferably dividend paying. This is just a conduit for #1 ... if you own shares in an oil and gas company, you own part of their assets.

3) Money-markets and ultra short term bonds, including tax-free munis. (Again, the word "preserve", not grow.)

4) Gold: Not a big fan of this, but I won't argue with historical precedents.

5) A learned skill set. If you can always sell your time in learned skill, you preserve wealth.
 
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RichieG

RichieG

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Sep 27, 2018
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I don't understand, is there a CAP on how much you can put in these funds?

The amount you're describing isn't that much to make a difference other than having capital for future business or higher producing investments.

In other words, there's nothing wrong with having the cash parked and making 1%. We're not talking about $1M.



Key word here is "preserve".
.
the index investing would be s fixed monthly deposit into global vanguard. I'm up based so we get a tax free is a which is 3200 pm for wife and i.

was going to use this as a long term tool as about 20% of my current monthly spare cash.

not using it to get rich just to preserve ...............( as I'm writing this o was typing hopefully which isn't a good sign )

over the long term and not seen as a growth weapon
 

ZCP

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if you rolled the 10k per mo back into the business, what multiple would you get in the next 12 months?
 
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RichieG

RichieG

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Sep 27, 2018
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I'm trying to learn about wealth preservation and maybe the figures i have used are too low. say i have met cash flow of 100k a month and 5m cash. I need somewhere to store this.

idea:
but 1m in property and rent out
invest 1m in vanguard global index
1m in short term govern!ent bonds
2m cash

now the stock market and property market could tank at any point. So say next year day stocks and property fall 50%

m y net wort h is now 4m but I still have rental income and dividends and potential comeback growth from stocks and my income in government bonds and cash inter est. So in the short term i have 100 k cashflow plus the above.

now if this was 50k cash and 1000 a month cash flow then the fall hits you tremendously

based on the large figures do readers think this is a recentlY for preservation. Warren Buffet with his billions upon his death is 90/10 in s and p / bonds

really look forward to valid critical of positive advice
 

Envision

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Lol if we're playing that game my answer doesn't deviate but the rate at which it compounds would be insane.

I'd drop my expenses to almost nothing. Live off 5k/mo save the 95k minus tax into an account that is solely used for investments.

Fund my own private investment firm that specializes in multi family apartment, self storage and ecommerce businesses.

Purchase 3 storage facilities in B markets putting 500k down and leveraging a 2m facility - value add to $4m - after stabilization pull my money out and repeat.

(1.5m in)

Buy and develop multifamily apartments around my storage facilities, limit the storage available in the units. Most likely 4plexs, for this i'd partner with a local developer and drop my costs on development (you'd drop your risk and make it up on the backend with your storage.)

You could probably build somewhere between 50-200 units with 2m if you partnered with the right person

(3.5m in)

Spend 1m acquiring 2 underperforming ecommerce brands that I know I can expand their product line, improve their marketing, and or boost some aspect of their business that would double or triple the valuation in 2 years. Flip them or keep them for cash flow. OR dump the money into my current brands and continue scaling it.

4.5m in - 500k reserves with 50-80k replenishing it each month after tax. At 1.5m repeat the process with storage and apartments.

You can scale this down with less money, investing the money into a duplex or 4plex, or putting the money into building your own brand to boost your cash flows.

To your 90/10 buffet point...Warren Buffet doesn't buy stocks off TD Ameritrade or invest in ETF's from Vanguard. He literally buys ownership chunks of companies that people buy minuscule amounts of stocks in.

By leveraging the float from the insurance companies he owns and just being inhuman with his investing abilities he buys underperforming/valued companies and has built his wealth from their financial improvement. Don't think that buying stocks in companies is the same thing.

List of assets owned by Berkshire Hathaway - Wikipedia

Say you are bringing in the kind of money you're talking about and "preserving it", you don't need to ask the question - you'd continue doing what got you the money and you'd invest into things that you can control, scale, and repeat.
 

LuckyPup

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After investing in the business I am going to have about 10k a month left. I need a platform for this money.

I have 3 years of living expenses in a fixed simple savings account.
Mortgage Free
No Debt

I have been working through various ideas.

1)AT the moment I am leaning towards £3000 in a global vanguard index fund. £1000 in Global Government Bonds then put 3000 a month away until I have 40% for a new property to let out. Then the 3000 in a long term savings account until I know what I want to do with it.

2) Or do I look to start a new business?

Any thoughts on the 2 options?? I will be still growing the current business so these figures will change.

Any other ideas?

1) Low Cost Index Funds ( Global )
2) Real Estate
3) Precious Metals
4) Bank Savings
5) Municipal Bonds
6) Global Government Bonds

Where do rich people put their money? i'm sure its not in a bank at less then 0.5%?
My advice? Don't solicit investment advice from strangers on an internet forum. That aside, congrats on being in such a solid financial position!
 

Sanj Modha

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This is where I'll get strung up, drawn and quartered...

But it's the exact situation to recommend Money: Master the Game.

It's an advanced guide on asset allocation (Not the get-rich book everyone seems to think it is :smile2:)
I'm currently reading Unshakeable and it's more concise vs Money: Master The Game.
 

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biophase

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You don't state your age, but I assume you are fairly young.

I'd tell you to put it into S&P500 index fund and buy an investment property with low leverage.
 

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