Sept. 30, 2025
126: The 4 Biggest Mistakes Every New Millionaire Makes
Becoming a millionaire overnight doesn’t mean you automatically know how to manage wealth. In this video, I break down the 4 biggest mistakes new millionaires make—and how to avoid them.
After my IPO at Splunk, I realized the financial industry wasn’t built for people with $1M–$30M net worth. Instead of cookie-cutter advice like “60/40 portfolios” and “withdraw 4%,” I learned the hard way that the wrong moves can cost you millions.
Here’s what you’ll discover:
- Why buying liabilities like houses and cars too early destroys long-term wealth
- How “knee-jerk investing” leads to massive portfolio risk
- Why tax strategy must come before financial advice
- The danger of listening to advisors who’ve never built wealth themselves
If you’ve built wealth through equity compensation, a business exit, or years of saving and investing, this guide will help you protect it, grow it, and manage it like a business.
Transcript
WEBVTT
00:00.491 --> 00:12.222
[SPEAKER_00]: 13 years ago, I became an overnight millionaire through Splunk's IPO, and I quickly learned the wealth management industry wasn't built for people with $1 million to $30 million of net worth.
00:12.423 --> 00:23.293
[SPEAKER_00]: Despite having millions, when I sat down with Morgan Stanley, I got the same generic advice as somebody with 100k stashed away in a retirement account.
00:23.493 --> 00:26.676
[SPEAKER_00]: put it all in a mix of stocks, bonds, and ETFs.
00:26.916 --> 00:28.237
[SPEAKER_00]: For me, this wasn't acceptable.
00:28.437 --> 00:33.661
[SPEAKER_00]: I knew that there had to be a better way that wasn't gonna have me working until I was 65.
00:34.362 --> 00:39.046
[SPEAKER_00]: That's when I started studying what actually works for people with significant wealth.
00:39.706 --> 00:44.169
[SPEAKER_00]: and I discovered that there's four common mistakes that most of us make early on.
00:44.450 --> 00:59.161
[SPEAKER_00]: If you're dealing with sudden wealth from equity compensation, a business sale, or just building your net worth over time, understanding these mistakes and how to avoid them can save you a lot of headaches.
00:59.841 --> 01:04.223
[SPEAKER_00]: and hundreds of thousands if not millions of dollars in the long run.
01:04.403 --> 01:07.885
[SPEAKER_00]: Mistake number one, buying liabilities.
01:08.445 --> 01:19.890
[SPEAKER_00]: The first mistake is the most obvious on paper, but it's also the hardest to avoid in reality, spending large sums of money on things that are liabilities not assets.
01:20.151 --> 01:24.993
[SPEAKER_00]: For most new millionaires, this shows up as bigger houses in premium cars.
01:25.313 --> 01:27.934
[SPEAKER_00]: I think this happens for two very human reasons.
01:28.234 --> 01:33.636
[SPEAKER_00]: Number one, you work your ass off to build that wealth and you feel like you need to reward yourself.
01:33.957 --> 01:38.138
[SPEAKER_00]: In number two, you subconsciously want to show people that you made it.
01:38.979 --> 01:41.760
[SPEAKER_00]: Or as my sons would say, you want to flex a little.
01:42.120 --> 01:45.321
[SPEAKER_00]: The real issue isn't the house or car itself.
01:45.641 --> 01:49.203
[SPEAKER_00]: It's confusing lifestyle inflation with wealth building.
01:49.363 --> 01:51.404
[SPEAKER_00]: Every dollar going to house payments
01:55.185 --> 01:57.566
[SPEAKER_00]: Here's the rule that I wish somebody had told me.
01:57.686 --> 02:05.531
[SPEAKER_00]: Before you upgrade your lifestyle, make sure your assets, your investments can support it.
02:05.691 --> 02:12.815
[SPEAKER_00]: If you're pulling from your principle, from your core wealth to fund the lifestyle expenses, you're moving backwards.
02:13.750 --> 02:14.550
[SPEAKER_00]: not forwards.
02:14.690 --> 02:25.153
[SPEAKER_00]: The second mistake is what I like to call knee jerk, reactive, phomo investing, putting too much money into investments too quickly without a clear strategy.
02:25.393 --> 02:30.215
[SPEAKER_00]: And often the position size is way too large relative to your portfolio.
02:30.415 --> 02:33.736
[SPEAKER_00]: I see this consistently with tech people especially.
02:34.216 --> 02:37.777
[SPEAKER_00]: You get a liquidity event suddenly have two million sitting in your
02:38.997 --> 02:41.499
[SPEAKER_00]: and it feels like it's burning a hole in your pocket.
02:41.619 --> 02:44.981
[SPEAKER_00]: So you start throwing large chunks into whatever sounds good.
02:45.161 --> 02:46.101
[SPEAKER_00]: Oh, real estate.
02:46.602 --> 02:47.102
[SPEAKER_00]: Crypto.
02:47.442 --> 02:48.503
[SPEAKER_00]: Oh my buddy, start up.
02:48.743 --> 02:55.067
[SPEAKER_00]: I had one wealth ops member who put over a million dollars from a $3 million portfolio.
02:55.607 --> 02:58.010
[SPEAKER_00]: into one real estate syndication.
02:58.030 --> 03:01.554
[SPEAKER_00]: When I asked why he said, real estate only goes up, right?
03:01.895 --> 03:03.416
[SPEAKER_00]: That's not an investment strategy.
03:03.537 --> 03:06.040
[SPEAKER_00]: That's gambling with life-changing money.
03:06.140 --> 03:11.666
[SPEAKER_00]: The problem with knee-jerk investing is you have no concept of investment sizing.
03:11.766 --> 03:14.149
[SPEAKER_00]: You don't know how much you can afford to lose.
03:14.990 --> 03:23.360
[SPEAKER_00]: you also don't understand how this fits into your overall strategy and you're making an emotional decision with serious money.
03:23.560 --> 03:24.301
[SPEAKER_00]: What works better?
03:24.642 --> 03:28.406
[SPEAKER_00]: Take time to develop an actual investment thesis.
03:28.747 --> 03:34.373
[SPEAKER_00]: Understand what percentage of your portfolio should go into different asset classes
03:35.074 --> 03:43.336
[SPEAKER_00]: before you start deploying capital, start with smaller positions in scale up as you gain experience and confidence.
03:43.476 --> 03:53.019
[SPEAKER_00]: And if you need help with creating an investment thesis, just head to wealthups.io or click the link below this video for a free training that I have on this.
03:53.259 --> 03:57.020
[SPEAKER_00]: Now, before we move on to mistake number three, here's a bonus one.
03:57.540 --> 04:02.402
[SPEAKER_00]: Let's call it mistake number two.1, which is kind of the opposite problem.
04:03.262 --> 04:05.643
[SPEAKER_00]: It's sitting on your hands doing nothing.
04:05.843 --> 04:12.807
[SPEAKER_00]: You would be shocked by how many portfolios I see with 80% or more in a single stock.
04:12.987 --> 04:16.189
[SPEAKER_00]: Often from the company that they work for or used to work for.
04:16.449 --> 04:19.571
[SPEAKER_00]: This is the equity concentration time bomb.
04:19.731 --> 04:22.852
[SPEAKER_00]: When the company stock is doing well, you feel like a genius.
04:23.052 --> 04:28.035
[SPEAKER_00]: But I've seen people lose $1 million overnight when a stock crashes.
04:28.255 --> 04:31.137
[SPEAKER_00]: Diversification isn't just about reducing risk.
04:31.737 --> 04:38.482
[SPEAKER_00]: it's about sleeping well at night, mistake number three, seeking financial advice before tax advice.
04:38.703 --> 04:44.267
[SPEAKER_00]: The third mistake cost me big and it's probably the most expensive mistake on this list for many.
04:44.547 --> 04:45.248
[SPEAKER_00]: So, picture this.
04:45.928 --> 04:47.530
[SPEAKER_00]: You've just had a liquidity event.
04:48.190 --> 04:53.572
[SPEAKER_00]: stock options vested, maybe it's a business sold, or your IPO finally hit.
04:53.792 --> 04:56.613
[SPEAKER_00]: Your first instinct, let me call the financial advisor.
04:56.753 --> 05:02.595
[SPEAKER_00]: I did the exact same thing after my first IPO at Splunk, and I'm here to tell you a big mistake.
05:02.875 --> 05:04.376
[SPEAKER_00]: Here's what I learned in the hard way.
05:05.076 --> 05:12.521
[SPEAKER_00]: you should talk to a tax strategist first, especially if your wealth came from equity compensation or business sale.
05:12.801 --> 05:16.324
[SPEAKER_00]: Let me show you why this matters with real numbers.
05:16.604 --> 05:20.286
[SPEAKER_00]: When I needed to access $250,000 from my portfolio, I can either sell $250,000 worth of stock and pay the 20% or more
05:33.575 --> 05:39.081
[SPEAKER_00]: that are completely legal to get $250,000 completely tax-free.
05:39.321 --> 05:43.185
[SPEAKER_00]: That's a $50,000 difference, and that's just one transaction.
05:43.425 --> 05:48.050
[SPEAKER_00]: See, most of my wealth was tied up in a concentrated stock position from IPO.
05:48.190 --> 05:55.578
[SPEAKER_00]: My first priority should have been figuring out how to dive best from these positions in the most tax-efficient way possible.
05:55.738 --> 05:58.419
[SPEAKER_00]: But here's the problem with most financial advisors.
05:58.619 --> 05:59.999
[SPEAKER_00]: They're not tax strategists.
06:00.300 --> 06:06.122
[SPEAKER_00]: They just want to get your money under management and put it into their standard 6040 portfolios.
06:06.322 --> 06:11.163
[SPEAKER_00]: They're thinking about assets under management and not tax optimization.
06:11.263 --> 06:14.344
[SPEAKER_00]: The bigger your positions get, the more this matters.
06:14.504 --> 06:21.967
[SPEAKER_00]: If you're sitting on significant equity compensation, I'm talking RSU's, ISO stock options, ESPP shares,
06:22.687 --> 06:30.090
[SPEAKER_00]: the difference between good and bad tax planning can literally be hundreds of thousands of dollars over your lifetime.
06:30.270 --> 06:42.816
[SPEAKER_00]: So when I sat in front of the first financial advisors I spoke to after my first IPO, their advice was, okay, Christopher, when the window opens, sell half and turn it over to us to manage.
06:43.076 --> 06:44.437
[SPEAKER_00]: What about the tax bill I ask?
06:45.169 --> 06:47.290
[SPEAKER_00]: That's not important was their answer.
06:47.510 --> 06:49.951
[SPEAKER_00]: This is when I knew that something was wrong.
06:50.191 --> 06:51.291
[SPEAKER_00]: Here's what to do instead.
06:51.972 --> 07:00.435
[SPEAKER_00]: First, find a tax strategist in particular, a certified tax planner who understands your specific situation.
07:01.075 --> 07:10.998
[SPEAKER_00]: Now, I'm not just talking about somebody who files your tax returns, but somebody that can help you create a comprehensive tax strategy around your portfolio.
07:11.258 --> 07:15.859
[SPEAKER_00]: Then work with financial advisors who understand and respect that tax framework.
07:16.059 --> 07:19.620
[SPEAKER_00]: Your investment strategy should complement your tax strategy.
07:20.180 --> 07:21.341
[SPEAKER_00]: not conflict with it.
07:21.582 --> 07:22.362
[SPEAKER_00]: Look, I get it.
07:22.763 --> 07:26.626
[SPEAKER_00]: When you suddenly have serious money, you want somebody else to manage it.
07:26.706 --> 07:32.411
[SPEAKER_00]: But taking a few weeks to get your tax house in order can save you decades of regret.
07:32.671 --> 07:35.834
[SPEAKER_00]: I think this fourth mistake might be the most important.
07:36.455 --> 07:43.861
[SPEAKER_00]: Taking advice from people who've never actually built or managed the level of wealth that you're now dealing with.
07:44.101 --> 07:45.362
[SPEAKER_00]: Here's the uncomfortable truth.
07:46.143 --> 07:50.028
[SPEAKER_00]: Most financial advisors have never made a million dollars themselves.
07:50.288 --> 07:57.817
[SPEAKER_00]: They're giving you advice based on textbook theory, not personal experience, managing significant wealth.
07:58.137 --> 08:04.124
[SPEAKER_00]: I like to say, I want to learn from astronauts, not astronomers, both of them study space.
08:05.054 --> 08:07.815
[SPEAKER_00]: But only one has actually been there.
08:08.055 --> 08:10.356
[SPEAKER_00]: Let me tell you where this hit me personally.
08:10.556 --> 08:19.860
[SPEAKER_00]: After my first IPO, I was sitting across from a financial advisor who wanted to put my entire $3 million portfolio into index funds and bonds.
08:20.120 --> 08:29.423
[SPEAKER_00]: When I told him, my goal is to generate enough income from my investments to replace my corporate salary, he looked at me like I was speaking another language entirely.
08:29.543 --> 08:36.405
[SPEAKER_00]: His response, well, with a safe withdrawal rate of 4%, you could take out $240,000 a year.
08:36.465 --> 08:42.507
[SPEAKER_00]: That's not income generation, that's spending down my principle in hoping that it lasts.
08:42.687 --> 08:48.553
[SPEAKER_00]: This guy had never built a portfolio designed to actually produce income.
08:48.673 --> 08:54.579
[SPEAKER_00]: He was applying textbook formulas to a real world problem that he had never solved.
08:54.759 --> 08:57.521
[SPEAKER_00]: The wealth management industry is designed like fast food.
08:57.702 --> 09:03.007
[SPEAKER_00]: It is much money under management as possible and do as little actual work as possible.
09:03.127 --> 09:04.588
[SPEAKER_00]: This might work for somebody with $100,000.
09:06.470 --> 09:13.135
[SPEAKER_00]: But when you're managing millions, you need somebody who understands the complexities and your goals.
09:13.435 --> 09:19.219
[SPEAKER_00]: What changed everything for me was finding people who had actually walked this path.
09:19.459 --> 09:30.067
[SPEAKER_00]: People who had built their own wealth managed significant portfolios and could teach me from real experience not just regurgitate what they learned in their series 7's exams.
09:30.287 --> 09:46.015
[SPEAKER_00]: So here's what I learned after seeing these mistakes over and over and making some of them myself managing wealth is completely different from building it requires a systematic approach just like running a business instead of reactive decisions.
09:46.615 --> 09:54.220
[SPEAKER_00]: you need a clear framework, and instead of generic advice, you need strategies designed for your specific situation.
09:54.360 --> 10:02.826
[SPEAKER_00]: And instead of winning it, you need to treat your wealth like a business with clear processes, good systems, and the right team around you.
10:02.946 --> 10:07.008
[SPEAKER_00]: That's exactly why I developed what I call the wealth ops framework.
10:07.169 --> 10:10.731
[SPEAKER_00]: It's the systematic approach I wish I had from the beginning.
10:10.831 --> 10:13.393
[SPEAKER_00]: It's designed specifically for people like us,
10:13.913 --> 10:18.736
[SPEAKER_00]: who are used to building and running complex systems, but just apply to wealth management.
10:18.896 --> 10:35.205
[SPEAKER_00]: If you're somebody with $1 to $30 million in net worth, and you want to start managing your wealth like a business instead of winging it, I've put together a comprehensive system that walks you through exactly how to implement this framework and create what I call the microfamily office.
10:35.465 --> 10:39.387
[SPEAKER_00]: You can check it out at wealthoff.io or click the link below this video.
10:39.628 --> 10:46.792
[SPEAKER_00]: And if you want to learn more about what a micro family office is and if it could be a good fit for you, then I would check out this video right here.
00:00.491 --> 00:12.222
[SPEAKER_00]: 13 years ago, I became an overnight millionaire through Splunk's IPO, and I quickly learned the wealth management industry wasn't built for people with $1 million to $30 million of net worth.
00:12.423 --> 00:23.293
[SPEAKER_00]: Despite having millions, when I sat down with Morgan Stanley, I got the same generic advice as somebody with 100k stashed away in a retirement account.
00:23.493 --> 00:26.676
[SPEAKER_00]: put it all in a mix of stocks, bonds, and ETFs.
00:26.916 --> 00:28.237
[SPEAKER_00]: For me, this wasn't acceptable.
00:28.437 --> 00:33.661
[SPEAKER_00]: I knew that there had to be a better way that wasn't gonna have me working until I was 65.
00:34.362 --> 00:39.046
[SPEAKER_00]: That's when I started studying what actually works for people with significant wealth.
00:39.706 --> 00:44.169
[SPEAKER_00]: and I discovered that there's four common mistakes that most of us make early on.
00:44.450 --> 00:59.161
[SPEAKER_00]: If you're dealing with sudden wealth from equity compensation, a business sale, or just building your net worth over time, understanding these mistakes and how to avoid them can save you a lot of headaches.
00:59.841 --> 01:04.223
[SPEAKER_00]: and hundreds of thousands if not millions of dollars in the long run.
01:04.403 --> 01:07.885
[SPEAKER_00]: Mistake number one, buying liabilities.
01:08.445 --> 01:19.890
[SPEAKER_00]: The first mistake is the most obvious on paper, but it's also the hardest to avoid in reality, spending large sums of money on things that are liabilities not assets.
01:20.151 --> 01:24.993
[SPEAKER_00]: For most new millionaires, this shows up as bigger houses in premium cars.
01:25.313 --> 01:27.934
[SPEAKER_00]: I think this happens for two very human reasons.
01:28.234 --> 01:33.636
[SPEAKER_00]: Number one, you work your ass off to build that wealth and you feel like you need to reward yourself.
01:33.957 --> 01:38.138
[SPEAKER_00]: In number two, you subconsciously want to show people that you made it.
01:38.979 --> 01:41.760
[SPEAKER_00]: Or as my sons would say, you want to flex a little.
01:42.120 --> 01:45.321
[SPEAKER_00]: The real issue isn't the house or car itself.
01:45.641 --> 01:49.203
[SPEAKER_00]: It's confusing lifestyle inflation with wealth building.
01:49.363 --> 01:51.404
[SPEAKER_00]: Every dollar going to house payments
01:55.185 --> 01:57.566
[SPEAKER_00]: Here's the rule that I wish somebody had told me.
01:57.686 --> 02:05.531
[SPEAKER_00]: Before you upgrade your lifestyle, make sure your assets, your investments can support it.
02:05.691 --> 02:12.815
[SPEAKER_00]: If you're pulling from your principle, from your core wealth to fund the lifestyle expenses, you're moving backwards.
02:13.750 --> 02:14.550
[SPEAKER_00]: not forwards.
02:14.690 --> 02:25.153
[SPEAKER_00]: The second mistake is what I like to call knee jerk, reactive, phomo investing, putting too much money into investments too quickly without a clear strategy.
02:25.393 --> 02:30.215
[SPEAKER_00]: And often the position size is way too large relative to your portfolio.
02:30.415 --> 02:33.736
[SPEAKER_00]: I see this consistently with tech people especially.
02:34.216 --> 02:37.777
[SPEAKER_00]: You get a liquidity event suddenly have two million sitting in your
02:38.997 --> 02:41.499
[SPEAKER_00]: and it feels like it's burning a hole in your pocket.
02:41.619 --> 02:44.981
[SPEAKER_00]: So you start throwing large chunks into whatever sounds good.
02:45.161 --> 02:46.101
[SPEAKER_00]: Oh, real estate.
02:46.602 --> 02:47.102
[SPEAKER_00]: Crypto.
02:47.442 --> 02:48.503
[SPEAKER_00]: Oh my buddy, start up.
02:48.743 --> 02:55.067
[SPEAKER_00]: I had one wealth ops member who put over a million dollars from a $3 million portfolio.
02:55.607 --> 02:58.010
[SPEAKER_00]: into one real estate syndication.
02:58.030 --> 03:01.554
[SPEAKER_00]: When I asked why he said, real estate only goes up, right?
03:01.895 --> 03:03.416
[SPEAKER_00]: That's not an investment strategy.
03:03.537 --> 03:06.040
[SPEAKER_00]: That's gambling with life-changing money.
03:06.140 --> 03:11.666
[SPEAKER_00]: The problem with knee-jerk investing is you have no concept of investment sizing.
03:11.766 --> 03:14.149
[SPEAKER_00]: You don't know how much you can afford to lose.
03:14.990 --> 03:23.360
[SPEAKER_00]: you also don't understand how this fits into your overall strategy and you're making an emotional decision with serious money.
03:23.560 --> 03:24.301
[SPEAKER_00]: What works better?
03:24.642 --> 03:28.406
[SPEAKER_00]: Take time to develop an actual investment thesis.
03:28.747 --> 03:34.373
[SPEAKER_00]: Understand what percentage of your portfolio should go into different asset classes
03:35.074 --> 03:43.336
[SPEAKER_00]: before you start deploying capital, start with smaller positions in scale up as you gain experience and confidence.
03:43.476 --> 03:53.019
[SPEAKER_00]: And if you need help with creating an investment thesis, just head to wealthups.io or click the link below this video for a free training that I have on this.
03:53.259 --> 03:57.020
[SPEAKER_00]: Now, before we move on to mistake number three, here's a bonus one.
03:57.540 --> 04:02.402
[SPEAKER_00]: Let's call it mistake number two.1, which is kind of the opposite problem.
04:03.262 --> 04:05.643
[SPEAKER_00]: It's sitting on your hands doing nothing.
04:05.843 --> 04:12.807
[SPEAKER_00]: You would be shocked by how many portfolios I see with 80% or more in a single stock.
04:12.987 --> 04:16.189
[SPEAKER_00]: Often from the company that they work for or used to work for.
04:16.449 --> 04:19.571
[SPEAKER_00]: This is the equity concentration time bomb.
04:19.731 --> 04:22.852
[SPEAKER_00]: When the company stock is doing well, you feel like a genius.
04:23.052 --> 04:28.035
[SPEAKER_00]: But I've seen people lose $1 million overnight when a stock crashes.
04:28.255 --> 04:31.137
[SPEAKER_00]: Diversification isn't just about reducing risk.
04:31.737 --> 04:38.482
[SPEAKER_00]: it's about sleeping well at night, mistake number three, seeking financial advice before tax advice.
04:38.703 --> 04:44.267
[SPEAKER_00]: The third mistake cost me big and it's probably the most expensive mistake on this list for many.
04:44.547 --> 04:45.248
[SPEAKER_00]: So, picture this.
04:45.928 --> 04:47.530
[SPEAKER_00]: You've just had a liquidity event.
04:48.190 --> 04:53.572
[SPEAKER_00]: stock options vested, maybe it's a business sold, or your IPO finally hit.
04:53.792 --> 04:56.613
[SPEAKER_00]: Your first instinct, let me call the financial advisor.
04:56.753 --> 05:02.595
[SPEAKER_00]: I did the exact same thing after my first IPO at Splunk, and I'm here to tell you a big mistake.
05:02.875 --> 05:04.376
[SPEAKER_00]: Here's what I learned in the hard way.
05:05.076 --> 05:12.521
[SPEAKER_00]: you should talk to a tax strategist first, especially if your wealth came from equity compensation or business sale.
05:12.801 --> 05:16.324
[SPEAKER_00]: Let me show you why this matters with real numbers.
05:16.604 --> 05:20.286
[SPEAKER_00]: When I needed to access $250,000 from my portfolio, I can either sell $250,000 worth of stock and pay the 20% or more
05:33.575 --> 05:39.081
[SPEAKER_00]: that are completely legal to get $250,000 completely tax-free.
05:39.321 --> 05:43.185
[SPEAKER_00]: That's a $50,000 difference, and that's just one transaction.
05:43.425 --> 05:48.050
[SPEAKER_00]: See, most of my wealth was tied up in a concentrated stock position from IPO.
05:48.190 --> 05:55.578
[SPEAKER_00]: My first priority should have been figuring out how to dive best from these positions in the most tax-efficient way possible.
05:55.738 --> 05:58.419
[SPEAKER_00]: But here's the problem with most financial advisors.
05:58.619 --> 05:59.999
[SPEAKER_00]: They're not tax strategists.
06:00.300 --> 06:06.122
[SPEAKER_00]: They just want to get your money under management and put it into their standard 6040 portfolios.
06:06.322 --> 06:11.163
[SPEAKER_00]: They're thinking about assets under management and not tax optimization.
06:11.263 --> 06:14.344
[SPEAKER_00]: The bigger your positions get, the more this matters.
06:14.504 --> 06:21.967
[SPEAKER_00]: If you're sitting on significant equity compensation, I'm talking RSU's, ISO stock options, ESPP shares,
06:22.687 --> 06:30.090
[SPEAKER_00]: the difference between good and bad tax planning can literally be hundreds of thousands of dollars over your lifetime.
06:30.270 --> 06:42.816
[SPEAKER_00]: So when I sat in front of the first financial advisors I spoke to after my first IPO, their advice was, okay, Christopher, when the window opens, sell half and turn it over to us to manage.
06:43.076 --> 06:44.437
[SPEAKER_00]: What about the tax bill I ask?
06:45.169 --> 06:47.290
[SPEAKER_00]: That's not important was their answer.
06:47.510 --> 06:49.951
[SPEAKER_00]: This is when I knew that something was wrong.
06:50.191 --> 06:51.291
[SPEAKER_00]: Here's what to do instead.
06:51.972 --> 07:00.435
[SPEAKER_00]: First, find a tax strategist in particular, a certified tax planner who understands your specific situation.
07:01.075 --> 07:10.998
[SPEAKER_00]: Now, I'm not just talking about somebody who files your tax returns, but somebody that can help you create a comprehensive tax strategy around your portfolio.
07:11.258 --> 07:15.859
[SPEAKER_00]: Then work with financial advisors who understand and respect that tax framework.
07:16.059 --> 07:19.620
[SPEAKER_00]: Your investment strategy should complement your tax strategy.
07:20.180 --> 07:21.341
[SPEAKER_00]: not conflict with it.
07:21.582 --> 07:22.362
[SPEAKER_00]: Look, I get it.
07:22.763 --> 07:26.626
[SPEAKER_00]: When you suddenly have serious money, you want somebody else to manage it.
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[SPEAKER_00]: But taking a few weeks to get your tax house in order can save you decades of regret.
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[SPEAKER_00]: I think this fourth mistake might be the most important.
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[SPEAKER_00]: Taking advice from people who've never actually built or managed the level of wealth that you're now dealing with.
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[SPEAKER_00]: Here's the uncomfortable truth.
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[SPEAKER_00]: Most financial advisors have never made a million dollars themselves.
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[SPEAKER_00]: They're giving you advice based on textbook theory, not personal experience, managing significant wealth.
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[SPEAKER_00]: I like to say, I want to learn from astronauts, not astronomers, both of them study space.
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[SPEAKER_00]: But only one has actually been there.
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[SPEAKER_00]: Let me tell you where this hit me personally.
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[SPEAKER_00]: After my first IPO, I was sitting across from a financial advisor who wanted to put my entire $3 million portfolio into index funds and bonds.
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[SPEAKER_00]: When I told him, my goal is to generate enough income from my investments to replace my corporate salary, he looked at me like I was speaking another language entirely.
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[SPEAKER_00]: His response, well, with a safe withdrawal rate of 4%, you could take out $240,000 a year.
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[SPEAKER_00]: That's not income generation, that's spending down my principle in hoping that it lasts.
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[SPEAKER_00]: This guy had never built a portfolio designed to actually produce income.
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[SPEAKER_00]: He was applying textbook formulas to a real world problem that he had never solved.
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[SPEAKER_00]: The wealth management industry is designed like fast food.
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[SPEAKER_00]: It is much money under management as possible and do as little actual work as possible.
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[SPEAKER_00]: This might work for somebody with $100,000.
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[SPEAKER_00]: But when you're managing millions, you need somebody who understands the complexities and your goals.
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[SPEAKER_00]: What changed everything for me was finding people who had actually walked this path.
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[SPEAKER_00]: People who had built their own wealth managed significant portfolios and could teach me from real experience not just regurgitate what they learned in their series 7's exams.
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[SPEAKER_00]: So here's what I learned after seeing these mistakes over and over and making some of them myself managing wealth is completely different from building it requires a systematic approach just like running a business instead of reactive decisions.
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[SPEAKER_00]: you need a clear framework, and instead of generic advice, you need strategies designed for your specific situation.
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[SPEAKER_00]: And instead of winning it, you need to treat your wealth like a business with clear processes, good systems, and the right team around you.
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[SPEAKER_00]: That's exactly why I developed what I call the wealth ops framework.
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[SPEAKER_00]: It's the systematic approach I wish I had from the beginning.
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[SPEAKER_00]: It's designed specifically for people like us,
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[SPEAKER_00]: who are used to building and running complex systems, but just apply to wealth management.
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[SPEAKER_00]: If you're somebody with $1 to $30 million in net worth, and you want to start managing your wealth like a business instead of winging it, I've put together a comprehensive system that walks you through exactly how to implement this framework and create what I call the microfamily office.
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[SPEAKER_00]: You can check it out at wealthoff.io or click the link below this video.
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[SPEAKER_00]: And if you want to learn more about what a micro family office is and if it could be a good fit for you, then I would check out this video right here.
