Feb, 2024

Shocking: Why The Wealth Bucket Model Retirement Plan FAILS!

What you don’t know about your Retirement Plan might shock you! A traditional 401k Wealth Bucket Model may not be right for you. What if your bucket of money runs out before your retirement years are over? When you rely solely on that bucket of money, the expenses can drain it over time.

The Wealth Bucket Model Retirement Plan is Broken.

Just like Steven Covey’s book The Seven Habits of Highly Effective People outlines, we are going to begin with the end in mind. Although small details vary between us, we all want the same thing out of life. We want freedom! More specifically, we want the time to do the things that fulfill us. Hopefully, we can make that time before we are too old to actually enjoy them to the fullest.

Rob outlines the means to this system as your Wealth Operating System, or your CORE Fund. This is the base of your financial freedom. Eventually, your CORE Fund should be generating Horizontal Income 1.3-1.5 times the amount of your Vitality Number. This is how Rob encourages members of his financial community to approach retirement planning. However, most Americans foolishly lean on a Wealth Bucket Model, which we will explain.

What Is The Wealth Bucket Model, And Why Should We Not Use It Exclusively?

The big picture on the Wealth Bucket Model? Most of us have a 401k retirement fund. There is nothing wrong with using one as a nest egg. However, when we rely on it exclusively, we run the risk of running out of money and having to go back to work to pay our bills. Rob outlines more below on the biggest expenses that are holes in the wealth bucket model.

Ignorance – The Number One Leak In The Wealth Bucket Model

When we move on from our businesses, we inevitably want to try new endeavors. We often make the mistake of thinking our new ventures will come just as naturally as our pre-retirement ones. If you must invest in new businesses and properties, do your homework, and partner up with experts in those fields.

Taxes – Tax Drag Drains Your Wealth Bucket Model

Reducing Tax Drag is a huge income stream! Rob preaches this point again and again, with good reason. If you can legally reduce your tax burden, then do it! Then invest the difference in assets that will return compound interest.

Vitality Number

Your Vitality Number refers to the cost of living you want to live within. Live within your values and not your vanity! This is the biggest number you can possibly get wrong! You want that trip around the world that your favorite billionaire influencer took. Geat real! You’re not at their level yet. Wait until you are, or you will blow your Vitality Number out of the water.

Fee Drag

Employing wise advisors is mission critical. However, keep a close eye on what they are charging you, and evaluate annually. The value may not be there anymore. Maybe they aren’t working as hard as they used to in order to get you the results you need. It is important to shop around so you can avoid Fee Drag from these providers.

Inflation – The Silent Killer of Your Wealth Bucket Model Investments

You don’t need a wealth expert’s advice to know that inflation is a wealth killer! Keep this in mind as you are calculating your Vitality Number. Create a report of your Personal P and L to find out what that number is.

Join Our Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Inner Circle Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!

Dec, 2023

Winning the Money Game, Act 4: Plan Life After Retirement

In this final installment of his Winning the Money Game series, Rob Rowsell encourages us to reimagine and plan life after retirement. You should still have plenty of good years ahead if you’ve followed Rob’s advice. In order to make the most of the post-career era of life, you need to keep up with the times. Never stop learning, and be a good steward of the money you’ve accrued. Don’t take stupid risks with it! This cash will ensure you can follow God’s path for your golden years!

Plan Life After Retirement

You’ve followed Rob’s Money Game advice to the T. Now, let’s reimagine and ask ourselves “what’s next?” Have you ever really thought about what you would do post career when you plan life after retirement? Rob recommends the book “Halftime” by Bob Buford. He has gained a lot of wisdom and a new perspective from it.

We want to take a few key steps when we plan our new life post career. First, we want to Lock In The Win, meaning we want to be good stewards of our ongoing Passive Residual Income, as well as the bag of money we’ve earned for retirement. Never risk what you need for what you don’t need.

Next, we need to Design The Next Chapter. You still hopefully are healthy and plenty of years ahead of you, so live like it! Even if your dreams and goals for the future are huge, write them down, and plan out how you can achieve them.

Stay Engaged and Stay Relevant. It is more important than ever to keep up with ever growing technology and trends. Rob uses the example of automating many of our daily tasks with AI and ChatGPT. These technologies are only going to become more integrated into our world. Therefore, getting familiar with them while they are still in their relative infancy is a good idea. Rob also suggests exploring topics you want to learn more about on Meta Reels and Tiktok, then saving the ones that you find particularly useful to revisit later.

Finally, and possibly most fun, Enjoy the Compound Curve. You have a lot of experience at this point being a wealth manager. At this point, you are accruing wealth with literally no effort through Passive Residual Income. So sit back and enjoy it!

Want More Wealth Tips? Join Our Community!

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!

Dec, 2023

Win the Money Game Act 3: Shift to Passive Residual Income

Rob Rowsell reviews the third act in his Winning the Money Game series. This focuses on the shift to Passive Residual Income (PRI). This involves changing your mindset and strategy for earning and investing your money. Transitioning to exclusively PRI revenue streams is a crucial component to your financial exit strategy.

Passive Residual Income Explained

This third stage of the Money Game focuses on a transition, meaning a “mental shift”. Many of us have an aversion or fear of growing wealthy. We have all heard that “money is the root of all evil”, but did you know that saying is actually a misquote of the Bible? 1st Timothy 6:10 says For the love of money is the root of all of evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows (emphasis in bold by this blog’s author). When we put money in the proper context, we can make that shift in our mindset. Money is a tool to help us live the life God intends for us to, not a false idol.

At this stage of the Money Game, we are shifting from a combination of Active Income and Passive Income to strictly Passive Residual Income. There is a difference between Passive Income and Passive Residual Income. An example of Passive Income is buying a property, fixing it up and holding it awhile, then selling for a profit. Also, you could call that specific situation earning “Capital Gains”. PRI means regular dividends you received from an investment passively – true mailbox money!

As we transition to Passive Residual Income, we need to plan our exit. How and when will we achieve financial freedom? This means no longer being dependent on a job or passive income investment to pay the bills. It also does not refer to the “bag of money” you’ve been saving from your career for retirement. We want a regular check arriving in the mail that will outlast that 401k, and give us the freedom to live comfortably and help others.

Join Our Community

Dec, 2023

How To Build A Successful Company Step By Step

Rob Rowsell shares how to build a successful company from the ground up. Rob built a multi-shop auto repair business and invested his wealth wisely. Eventually, he cashed out and sold his business, transitioning to a passive residual income. Here’s how he did it.

Build A Successful Company – Step By Step To An Extraordinary Business

Rob starts out the discussion by introducing us to a five point strategy to build a successful company. This takes in all of the phases, from purchasing the business all the way to cashing out and retiring into a new life post-ownership. Here are Rob’s steps to business success:

Intelligently Invest Your Active Income

Congratulations! You now own a business. Chances are you are working the counter and doing other jobs as you establish the systems and processes your employees will follow. Ideally, others will handle all of the day to day operations once you are more established. Meanwhile, you need to be socking away whatever cash you can from your active income. Opportunities will come along to increase that income as your business grows. As your income increases, your investments should, too. Rob goes into great detail about those investment opportunities in our monthly Zoom meetings. Are you serious about growing wealth as you build a successful company? You owe it to yourself to join the ATL Community.

Pay Yourself Tax Efficiently

There are many tax benefits to owning your own business. You must pay yourself first, but don’t take chances. Make sure you consult with your CPA regularly to find legal tax advantages. The more money you can keep, the more you can invest.

Build a Successful Company by Using Active Income to Build Your Net Worth

Your business is an active income machine. It’s easy to keep escalating your lifestyle as the money rolls in, but avoid going overboard! A few Community members also have worked in the auto repair industry, and can attest that it is a great bang for buck investment. When you purchase and renovate an automotive shop, the revenue will soon pay you back.

Grow Your Company’s Value

Business growth is always an unrealized gain. Therefore, it is extremely tax efficient. Over time, you could very well 10x the value of your business from the purchase price over the years. This could be done by opening more locations and finding new revenue streams. You will not take a tax hit on the value of that business until you eventually put the business up for sale.

Transition to Passive Residual Income Over Time – The Final Step to Build a Successful Company

There are many opportunities to invest your active income. If you play the money game right, you can eventually replace your active income with regular passive residual income. Eventually, that means you can retire and live off of mailbox money derived from your investments. Remember, to build a successful company is only one part of the financial journey. The end goal is to eventually work yourself out of a job!