Hierarchy of Wealth: The Step Everyone Misses
Lark Stewart
empowering women to build financial security & protect their family's future
You've prepared for your journey to wealth.
Credit cards are paid off. Emergency fund is in place.
And now you're ready to hit the trail.
You have a choice.
Take the fast route, which is more dangerous.
There will be more rivers to cross, rocky terrain, and potential for land slides.
There's no safety net. No care flight for emergencies.
There will be many highs and many lows.
Or you could take the scenic route. It's slower. Much slower.
The trails are easy and well marked. And you'll have a GPS tracker in case the worst happens.
It may be less exciting, but it's a sure bet.
Let's look at the trail map for both.
In our second lesson, you'll learn about the two different paths for building wealth.
Last week, you learned about the Hierarchy of Wealth.
You can enter the hierarchy from the top or from the bottom.
Enter From the Top: The Rocky Path
Most people enter the Hierarchy of Wealth from the top. Where risk is the highest.
They are lured in by the promise of riches that Wall Street offers.
With so many rags to riches stories, it's tempting to think that buying 1 one magic stock that will make you a millionaire in 30 years.
Or that investing in a 401K is a sure way to a fruitful retirement.
I mean, it's all about the long game, right? My investment advisor said there will be up and downs, but it'll all even out if I stick around long enough.
Tell that to anyone who planned to retire in 2008 and the decade after.
The Great Recession hit retirement accounts hard. Some lost 40% or more of their portfolio's value in a matter of months.
And the market didn't rebound quickly.
Many had to delay retirement. Others had go back into the work force.
At a time when unemployment was high and younger workers were more valuable to companies.
Being the greeter at Wal-Mart isn't a back up plan.
Do you want to chance being in this situation?
No. You don't.
There's a better option.
Enter From the Bottom: The Scenic Path
The problem with starting your wealth building journey with Wall Street is that you relinquish all control.
You are 100% dependent on what the market does.
If you are trusting someone else to invest for you with a 401K or IRA, you are trusting someone who doesn't have a crystal ball.
Oh yeah, and they are skimming your profit off the top.
The average American pays more than $369,000 in investment fees throughout the course of their life(1).
Choosing a path that focuses on control, safety and keeping what's yours increases your odds of making it to the top.
Step 1: Build a Solid Foundation
We covered the details last week. If you missed it, you can learn more here .
Step 2: The Step Everyone Misses
Most people know a solid financial foundation is important, but few people put on a safety harness before hiking up the mountainside. We'll cover this in the next section.
Steps 3-5: The Incline
This is where wealth building really gets fun.
We'll talk more in depth about steps 3-5 in the next posts.
Step2: The Step Everyone misses
Putting on a safety harness before climbing your wealth mountain will keep you from falling when the market crashes.
You see, 150 years ago, someone went before you and left a safety rope behind.
They took the time to drive stakes into the mountainside for you to hook into.
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So whenever you slip and fall or make a bad investment, you don't fall off the mountainside.
This harness is pretty special. It does 3 things for you:
So, why are these so important as safety features?
Compounding Interest
This is basically earning interest on interest.
It's the multiplier to gets you up the mountain with little effort.
Finding guaranteed interest. That's the security that ensures you're going to get to the top.
No more worrying what's going on with the stock market because you'll be earning guaranteed interest.
Low-Interest Loans
One of the biggest problems with 401K and IRA is that you can't access the value until you're 59 and a half.
By choosing the scenic route, you'll have access to your cash value.
Through a low-interest loan that you can use anytime for any reason.
Pay for your child's college? No problem.
Buy a rental house? Yes, Step 3 here we come!
Start your own business or scale a current one? You got this!
And the best part? You set the repayment dates and amounts. Pay it back when you can.
It won't impact your credit score either.
Enough Money In Retirement
Running out of money after retirement is a nightmare.
Let's face it. It is inevitable that we will all age and need help caring for ourselves.
Health care will cost more as our bodies give out.
Not having enough money at this stage of life means living in poor standards or being a burden on others.
But by choosing the scenic route, you're connected to the safety rope.
With compounding interest, you don't have to worry.
The longer you live, the more you earn.
Plus your cash value can cover retirement costs and end of life care.
How To Get Your Safety Harness
By now you're probably wondering how do you get your safety harness.
You don't want to miss this important step in the Hierarchy of Wealth.
That's where I can help you.
Together, we will build a customized account for just you.
It will add the extra layer of security you need before starting on your journey to wealth.
I call it a Feathered Nest Account?.
It does all these things for you:
Check out my proven wealth building strategy . It's automated, easy to implement, and you earn guaranteed interest.
Unlike crypto or the stock market, your money doesn't fluctuate with the market. It's easy because you don't have to time to stress about what's happening on Wall Street.
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Day Lark Wealth helps women achieve their financial goals and secure their financial future.
This information is for educational purposes only and should not be considered specific tax, legal, investment or planning advice.