Feb, 2024

Shocking: Why The Wealth Bucket Model Retirement Plan FAILS!

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What you do not know about your own Retirement Plan might just shock you! Most workers invest in a traditional 401k Wealth Bucket Model. However, that just may not be right for you, the savvy investor. Think about it. What if your bucket of money runs out before your retirement years are over? When you rely solely on that bucket of money, the ensuing expenses can drain it over time. Those funds could dry up before you pass away, and then you may have to go back to work. Definitely not what anyone wants in their twilight years. Read on for further explanation and a much better way for you to save for retirement!

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 will vary between us, we all want the same thing out of life. We want freedom! More specifically, we want the time to do all the things that will 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, also known as your CORE Fund. This fund will form the base of your financial freedom. Eventually, your CORE Fund should start to generate Horizontal Income, totaling 1.3-1.5 times the amount of your Vitality Number.

This is how Rob Rowsell encourages the members of his financial community to approach their retirement planning. However, almost every American will foolishly lean on a Wealth Bucket Model. We will explain that model next.

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

What is the big picture we want to paint about the Wealth Bucket Model? Most of us American citizens will contribute regularly to a 401k retirement fund throughout their career. There is absolutely nothing wrong when you use a 401k fund as a nest egg. However, when we rely on it exclusively, then we run the risk of running out of money before we are ready. We may have to go back to work in order to pay our bills. Rob outlines more below on the biggest expenses that are holes in the wealth bucket model.

Ignorance Is The Number One Leak In The Wealth Bucket Model

When we move on from our businesses, most of us will inevitably want to try new endeavors. We often make the mistake of thinking that our new ventures will come just as naturally as our pre-retirement ones. Many a successful investor has fallen prey to this trap. If you insist on investing funds in a new business or property, then you have to do your homework! Make sure that you partner up with some trusted experts in those fields.

Taxes – How Tax Drag Drains Your Wealth Bucket Model

When you reduce your Tax Drag, it can create a huge income stream! Rob preaches this point again and again to our community, and with good reason. Does your CPA recommend ways that you can legally reduce your tax burden? Well then, do it! Then, you can invest the difference in assets in accounts which will return compound interest.

Find Out What Your Vitality Number Is

Your Vitality Number refers to the annual cost of living which you want to live within. You should always live within your values, and not within your vanity! This is the biggest number that you can possibly get wrong! You want that trip around the world that your favorite billionaire influencer took on Youtube so badly. Geat real! You are not at their level yet. Unless you wait until you absolutely are, then you will blow your Vitality Number right out of the water.

Avoid Fee Drag By Consulting With Wise Financial Advisors

The task of employing wise advisors is mission critical. However, you need to keep a close eye on what they are charging you. You should also keep evaluating it annually. At some point, the value may not be there anymore from their side. Maybe they are not working as hard as they did in the past in order to achieve the results you need. It is so important to shop around, so you can avoid suffering Fee Drag from these providers.

Inflation – The Silent Killer of Your Wealth Bucket Model Investments

You do not need a wealth expert’s advice in order to know that inflation is bad. In fact, it can be a real wealth killer! Keep this in mind as you are calculating your personal Vitality Number. Create a written or printed report of your own Personal P and L. Then, you must examine it in order to find out what that number is. When you stick to that number, then you can never go wrong.

Join Our Community

Do you own multi-family properties? If not, do you aspire to do so 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

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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

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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!