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!

Jan, 2023

Bathtub Analogy – Income Streams Ideas For Business Owners

Rob paints a picture of a bathtub for our group members. The faucet has several income streams ideas coming from it. Rob lays out several examples of passive and active income. The “nest egg” plan of the IRA isn’t the best retirement investment plan. If you combine regular passive income and other investment strategies, along with your 401k, then you have a solid plan.

Income Analogy – Passive and Active Income Streams

Once the attendees draw up the bathtub running the income streams, Rob has them make blanks below with “active income” and “expenses” headings. He then lays out several categories of income sources by how they are taxed. W2, rental, capital gains are all different examples.

Active Income

Rob starts the discussion on active income by clarifying that the term could have different meanings to different real estate investors. To him, active income streams are defined by investing more than ten hours per month into them.

Active income streams obviously include conventional 9-5 jobs taxed with a W2 tax form. If you invest in rental properties, and do not employ a property manager, this investment is likely qualified as active income.

Passive Income Streams

In Rob’s businesses, spending less than ten hours per month on an investment qualifies it as passive income. For example, you could buy a plot of land, do nothing with it for over a year, then sell it. Whatever profit you make is passive income, since you put no work into clearing the land or building a property.

Passive Residual Income

Finally, Rob details passive residual income. He provides the example of investing in a single family home or apartment complex. The owner may not spend much time on maintaining the property, but it is a consistent, passive source of income.

Passive Residual Income Streams For Retirement

Rob goes on discuss passive residual income streams as part of a retirement strategy. Most of us contribute to an IRA account for our retirement plan. Ideally, you sock away enough money to live off of during your golden years, drawing a necessary amount each month.

He does not subscribe to this “nest egg” theory. The passive residual income streams of his properties, as well as interest from his retirement investments pile up to cover his living expenses. In the end, the main goal is passive income streaming in each month to provide security when he can’t, or just doesn’t wish to, work full time hours anymore.

Lastly, Rob provides the example of a business owner who owns a successful laundromat. It does much more business than its competitors. Rather than using the extra cash to educate himself and create passive income streams, he just spends it on a more lavish lifestyle. When he feels ready to quit, he sells the laundromat, and has a bag of money to retire on. This may or may not suffice to maintain the lifestyle he is used to. Without the passive residual income to supplement the money from the sale, his future is uncertain. He could outlast the nest egg and be a burden on his loved ones.

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 Addicted To Life 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! Enroll today!