Building Your Investment Pyramid

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Building your portfolio with the right structure so that it provides you income for life - much like a golden goose. - There's not much worse than outliving your money ! Radio show available as an audio track: http://tiny.cc/BuildPyramid

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  • 1. Building Your Pyramid Wealth DNA radio - Ron (The Ronald) NawrockiNovember 12, 2012 1

2. Building Your PyramidWhat is an Investment Pyramid?Why Does it Matter?How do I get Started?Which Investments at Each Level?What about Retirement?Summary Listen to the radio show: http://tiny.cc/BuildPyramidNovember 12, 20122 3. What is an Investment Pyramid? Properstructure for YOUR portfolio Sometimes called: Investment Risk Pyramid May have 3, 4, or 5 levels I prefer 4 levels Ri Notice the Logo ! sHigh k / R e w a Low r d November 12, 20123 4. Why Does it Matter? Goodshaped Pyramid gives Good results Bad shape Bad results Many investors with small portfolios want aggressive returns to grow faster Overly conservative investors get no growth Some sound financial advice can turn your Pyramid upside down The Road to hell is paved with good intentions !November 12, 20124 5. How do I Get Started? Start with the first $1, 1, 1 or 1 you save 4 things you can do:1.Spend it2.Lend it Well Focus on these3.Invest it4.Give it away5.Lose it ! It belongs in the Base of Your PyramidGenerating Income & availablefor a rainy day !November 12, 20125 6. Which Investment at Each Level? Base: Cash & Income 2nd: Growth & Income 3rd: Growth Top: Aggressive returns Start at the bottom build a solid foundation,then add to next levelsWhen its top heavy It can tip over !November 12, 2012 6 7. Cash & Income3-6 month reserves in ... Cash/Bank account Money Markets Bank CDs? or MP3s Short-term bond funds Whole Life Insurance Fixed Annuities (>age 55) Pensions (retired) Conservative PrivateMortgage Loans (1 yr)Build a solid Base!November 12, 2012 7 8. Growth & IncomeReplace x% of yourincome with ... Bonds/Bond funds? Balanced Funds Dividend paying stocks Utility stocks Master Limited Partnerships Conservative PrivateMortgage LoansSurvive without a job!November 12, 2012 8 9. GrowthIts time to build Wealth ... Growth stocks High Yield Bonds Real Estate & REITs Royalty Trusts Gold & Commodities (~5%) High Yield Private MortgageLoans Your own business Growing FinancialIndependence!November 12, 2012 9 10. Aggressive ReturnsNow you can afford to takesome sound risk Commodities/Currencies Options & Futures Managed Futures Margin financing Early stage start-ups Hedge Funds Private Equity Commercial Real Estate You are a millionaire!November 12, 2012 10 11. What about Retirement? UseFIFO First In First Out Income from 2nd layer flows down Income/Dividends from 3rd layer flow down Sometimes called: Buckets of Money (Ray Lucia) Keep the growth components as long as possible ! IF bottom layer shrinks - sell some assets as markets rise Do NOT Dollar-Cost-Average down Your Pyramid is your Golden Goose !November 12, 2012 11 12. Summary Your Pyramid isyour Golden Goose ! 13. Contact Ron Nawrocki (aka The Ronald)Wealth DNA radiowww.WealthDNA.us Every 2nd & 4th Monday at 9:00 AM(AZ time) Tel: 1-623-249-4792Ron@WealthDNA.usHelping 1 million listenersbecome millionaires !