As we discussed yesterday, the nest egg model pits assets against income. When your assets are going up, you don’t have extra income. And when you need extra income, you have to sell your assets.
That puts your money on a see-saw. But what if it were possible to get off? What if you could grow both your assets and createextra income at the same time?
That’s the beauty of the Phoenician League’s spin on Harry Browne’s old Permanent Portfolio concept.
It starts with building a base foundation of reserve assets. From there we make our cash bulletproof, and we consider turbo-charging our portfolio with capital-efficient businesses.
This provides us with true financial security.
Then we can leverage these assets if we ever need to come up with extra money in a pinch. That’s far better than selling because we keep the assets and avoid creating a taxable event.
And it gets even more robust from there…
We can also utilize LLCs to create streams of cash flow through real estate, mortgage notes, and alternative assets like music royalties. These are our cash flow investments that create passive income for us.
The bottom line is this…
Why sell your assets to live when you can own assets that pay you monthly?
With this approach, it’s not difficult to create thousands of dollars in extra monthly income within a reasonably short period of time. And because we run these investments through LLCs, there’s a wide range of expenses that we can make tax-deductible.
Home office expenses… various memberships and subscriptions… my wife and I even deduct business dinners as co-owners of the investment business, saving thousands of dollars every year.
Compare that to the conventional approach where withdrawals trigger taxes and penalties. It’s night and day.
And again, anyone can do this.
I started with nothing and gradually built out my system. And one of our earliest members of The Phoenician League repositioned his existing savings to create over $3,000 a month in extra income in just three years’ time.
The key is to make it systematic… and to be consistent in executing the plan. There’s magic in consistency.
Looking ahead, I’ll share with you a real estate hack tomorrow that makes your cash flow even steadier. Until then…
-Joe Withrow
P.S. I’d like to invite you once again to our webinar next week. We’re calling it: The Strategic Investor’s Playbook: Bulletproof Money, Consistent Cash Flow.
We’ll go live at 3:00 pm Eastern on Wednesday, May 14th. I plan to spend an hour or so walking attendees through the nuances of how to create their own strategic investment plan. The goal is to protect and grow your savings and create extra monthly income for yourself.
As part of this, we’re going to analyze several cash flow investments and demonstrate exactly how they work, and exactly how to think about building up a portfolio over time. Then we’ll lay out a plan to create $3,960 a month in extra income in three years.
If you are interested, please register for the event right here: The Strategic Investor’s Playbook Webinar Registration See you there!