Matt Prez on Nostr: Everyone will tell you they want ‘financial freedom,’ but 99% of people can’t ...
Everyone will tell you they want ‘financial freedom,’ but 99% of people can’t explicitly tell you what it actually looks like for them.
Let alone how they’re going to achieve it.
They don’t spend the time to work out how much income and assets they need to consider themselves financially free at some specific point in the future.
Which means it’s impossible to reverse engineer what they need to do TODAY and over the years to achieve it.
Sure, some people invest.
But it usually has very little thoughtful intention behind it.
Like, they’ll buy one investment property and ‘see how it goes,’ then reassess the plan to get another ‘down the track.’
This is flimsy, poor-person financial planning.
And is guaranteed to fall short of your actual goals.
//
Instead, be specific.
And time-bound.
Like this:
1. I need $X to pay off the house where I want to live.
2. I need $X/year to never have to work again and live a comfortable, fun, fulfilling life with my family and friends.
3. I therefore need to acquire $X asset base, by X date, which needs to increase by X%/year to be worth $X by my desired retirement date.
4. To minimise future capital gains tax (CGT), I need to acquire these assets in entities that give me the most flexibility for tax minimisation if and when I need to sell them or pass them on to loved ones.
5. And most importantly, I need to account for inflation of AT LEAST 7%/year when crunching these numbers.
//
So, here’s an example of what a simple plan might look like:
I want to pay off my $1m home, plus have an additional $1m for retirement in 20 years, and that $1m will generate me $50k/year to live on.
And let’s assume you’re okay to pay off your home from working.
So, first of all, to have the equivalent of $1m in 20 years, you’ll actually need $4m, because the money supply doubles every 10 years.
But the good news is, so do traditional assets (like property, stocks etc).
So you’ll need to acquire $1m worth of assets today that will double in value twice over the next 2 decades to arrive at $4m worth of assets in 20 years.
Thats a lot for most people of you’re not using leverage or don’t have equity in a property to use.
And don’t forget, you’ll also need to consider any loans you’ll need to pay out (like an investment loan), or any capital gains that might be payable if you sell the assets.
So in reality, you may need to acquire more than $1m in assets to absorb those costs that’ll eat into your $4m nest egg.
//
Now, this all begs the question:
Is there a better way? 🤔
And by better, we mean faster, right?
And yes, there is.
While traditional assets plod along at 7-10% compound growth per annum (basically because they’re tracking inflation), other assets are shitting all over that and doing 50% compound growth per annum.
Choosing the apex asset that is doubling your asset base every few years instead of every 10 years executes your financial freedom plan in a matter of years, rather than decades.
The punchline?
Your investment vehicle of choice fucking matters.
Like, A LOT.
I recommend studying #Bitcoin to learn how it can help you achieve your goals much faster and live the amazing life you and your loved ones deserve.
And yes, that is financial advice. ✅
Happy Friday, friends. 🥰
Let alone how they’re going to achieve it.
They don’t spend the time to work out how much income and assets they need to consider themselves financially free at some specific point in the future.
Which means it’s impossible to reverse engineer what they need to do TODAY and over the years to achieve it.
Sure, some people invest.
But it usually has very little thoughtful intention behind it.
Like, they’ll buy one investment property and ‘see how it goes,’ then reassess the plan to get another ‘down the track.’
This is flimsy, poor-person financial planning.
And is guaranteed to fall short of your actual goals.
//
Instead, be specific.
And time-bound.
Like this:
1. I need $X to pay off the house where I want to live.
2. I need $X/year to never have to work again and live a comfortable, fun, fulfilling life with my family and friends.
3. I therefore need to acquire $X asset base, by X date, which needs to increase by X%/year to be worth $X by my desired retirement date.
4. To minimise future capital gains tax (CGT), I need to acquire these assets in entities that give me the most flexibility for tax minimisation if and when I need to sell them or pass them on to loved ones.
5. And most importantly, I need to account for inflation of AT LEAST 7%/year when crunching these numbers.
//
So, here’s an example of what a simple plan might look like:
I want to pay off my $1m home, plus have an additional $1m for retirement in 20 years, and that $1m will generate me $50k/year to live on.
And let’s assume you’re okay to pay off your home from working.
So, first of all, to have the equivalent of $1m in 20 years, you’ll actually need $4m, because the money supply doubles every 10 years.
But the good news is, so do traditional assets (like property, stocks etc).
So you’ll need to acquire $1m worth of assets today that will double in value twice over the next 2 decades to arrive at $4m worth of assets in 20 years.
Thats a lot for most people of you’re not using leverage or don’t have equity in a property to use.
And don’t forget, you’ll also need to consider any loans you’ll need to pay out (like an investment loan), or any capital gains that might be payable if you sell the assets.
So in reality, you may need to acquire more than $1m in assets to absorb those costs that’ll eat into your $4m nest egg.
//
Now, this all begs the question:
Is there a better way? 🤔
And by better, we mean faster, right?
And yes, there is.
While traditional assets plod along at 7-10% compound growth per annum (basically because they’re tracking inflation), other assets are shitting all over that and doing 50% compound growth per annum.
Choosing the apex asset that is doubling your asset base every few years instead of every 10 years executes your financial freedom plan in a matter of years, rather than decades.
The punchline?
Your investment vehicle of choice fucking matters.
Like, A LOT.
I recommend studying #Bitcoin to learn how it can help you achieve your goals much faster and live the amazing life you and your loved ones deserve.
And yes, that is financial advice. ✅
Happy Friday, friends. 🥰