Nov. 4, 2025
131: 6 Things You Should NEVER Do AFTER Becoming a Millionaire
I made $3.3 million in five minutes during my first IPO. Six months later, I was lying in bed, staring at the ceiling, completely overwhelmed. I had always believed that seeing seven figures in my bank account would bring freedom—but instead, I had more anxiety than ever.
Here’s the uncomfortable truth: making money and managing money are completely different skills.
This video is a deep dive into the six most common—and most dangerous—mistakes I see first-time millionaires make. I’ve lived through all of them. I’ll also walk you through the practical, systematic framework that helped me turn chaotic wealth into a calm, income-generating portfolio.
This video is the one I wish existed when I hit seven figures and had no idea what to do next. If you want to avoid years of trial and error, start by building your foundation—your Legacy Statement and Investment Thesis—and make every financial decision from there.
If you’re ready to start managing your wealth like a real business instead of a high-stakes hobby, I’m hosting a free live workshop in a few days where I’ll walk through this framework in depth. You can apply at wealthops.io/go.
Transcript
WEBVTT
00:00.031 --> 00:04.936
[SPEAKER_00]: I made $3.3 million in five minutes during my first IPO.
00:05.116 --> 00:10.262
[SPEAKER_00]: Six months later, I was having a complete meltdown as I laid in bed staring at the ceiling.
00:10.382 --> 00:10.862
[SPEAKER_00]: Here's why.
00:11.343 --> 00:17.409
[SPEAKER_00]: I thought seeing seven figures in my bank account would set me free, but I had more anxiety than ever before.
00:17.689 --> 00:26.038
[SPEAKER_00]: And here's the uncomfortable truth that I learned over the next 12 years, making money and managing money are totally different skills.
00:26.018 --> 00:43.572
[SPEAKER_00]: I'm Christopher Nelson, founder of Welp Ops, and in the next 12 minutes, I'm going to show you six of the most common mistakes I've seen first time millioners make, why they're so dangerous, and the systematic framework you can use to avoid them in your own million dollar portfolio.
00:43.552 --> 00:51.261
[SPEAKER_00]: This is the video I was existed when I was staring at my first seven-figure network with no idea of what to do next.
00:51.521 --> 00:53.103
[SPEAKER_00]: Let's start with mistake number one.
00:53.283 --> 00:59.050
[SPEAKER_00]: Taking investment action before creating your investment thesis in legacy statement.
00:59.250 --> 01:04.236
[SPEAKER_00]: This is the most foundational and potentially expensive mistake you could make.
01:04.256 --> 01:08.040
[SPEAKER_00]: And it's easy to make because the moment you become a millionaire,
01:08.020 --> 01:09.623
[SPEAKER_00]: everyone has advice for you.
01:09.863 --> 01:18.960
[SPEAKER_00]: Your colleagues are talking about crypto, your brother-in-law is pushing real estate and financial advisors are cold calling you with opportunities.
01:19.281 --> 01:20.082
[SPEAKER_00]: Here's what happens.
01:20.643 --> 01:25.252
[SPEAKER_00]: You see the money sitting in your brokerage account and you think I shouldn't just let this money sit here.
01:25.673 --> 01:30.822
[SPEAKER_00]: So you start deploying capital in investments that feel right.
01:30.802 --> 01:33.765
[SPEAKER_00]: All before you've answered two critical questions.
01:34.085 --> 01:37.109
[SPEAKER_00]: Why am I building wealth and what's my strategic plan?
01:37.349 --> 01:39.631
[SPEAKER_00]: Your legacy statement is your long-term vision.
01:39.691 --> 01:43.175
[SPEAKER_00]: It defines why you're building wealth beyond just having more money.
01:43.455 --> 01:50.403
[SPEAKER_00]: And your investment thesis is your strategic plan covering asset classes, risk tolerance, and liquidity targets.
01:50.763 --> 01:55.108
[SPEAKER_00]: These are pre-requisites for every single investment decision that follows.
01:55.348 --> 01:56.249
[SPEAKER_00]: Think about it this way.
01:56.349 --> 01:58.311
[SPEAKER_00]: You wouldn't build a system
01:58.291 --> 02:00.714
[SPEAKER_00]: without first defining what it needs to accomplish.
02:00.975 --> 02:07.984
[SPEAKER_00]: Most new millionaires jump straight into, well, what should I invest in without defining what success actually looks like?
02:08.004 --> 02:12.531
[SPEAKER_00]: I learned this lesson sitting in my main hat and office as a chief information officer.
02:12.791 --> 02:16.937
[SPEAKER_00]: I had millions in the bank, but no income replacement strategy.
02:17.117 --> 02:20.782
[SPEAKER_00]: Every Friday night, I disappoint my wife because I couldn't leave work.
02:20.802 --> 02:25.568
[SPEAKER_00]: My wealth wasn't working for me, because I'd never defined what I wanted it to do.
02:25.969 --> 02:27.471
[SPEAKER_00]: So here's the fix.
02:27.451 --> 02:31.757
[SPEAKER_00]: Before you make a single investment decision, create these two documents.
02:32.057 --> 02:36.042
[SPEAKER_00]: Your legacy statement answers why and defines your vision.
02:36.223 --> 02:41.369
[SPEAKER_00]: Your investment thesis answers how and becomes your decision-making framework.
02:41.389 --> 02:43.672
[SPEAKER_00]: Without these, you're building on sand.
02:44.013 --> 02:50.622
[SPEAKER_00]: Now, if you want help, we have a free live workshop coming up in a few days that will walk you through how to do this.
02:50.942 --> 02:55.568
[SPEAKER_00]: You can register at wealthops.io forward slash go.
02:55.548 --> 03:01.516
[SPEAKER_00]: Okay, let's move on to mistake number two, staying overexposed to concentrated stock positions.
03:01.856 --> 03:09.586
[SPEAKER_00]: Here's a question to ask yourself, if the largest stock position in your portfolio dropped 50% tomorrow, would you lose sleep?
03:09.867 --> 03:21.722
[SPEAKER_00]: If your answer is yes, you have what I call the equity concentration time bomb, and this is a very common situation for tech professionals, and one I found myself facing as well.
03:21.742 --> 03:24.846
[SPEAKER_00]: I understand how easily you can find yourself here.
03:24.826 --> 03:37.526
[SPEAKER_00]: When your company stock has been your golden goose, maybe it made you a millionaire in the first place, the idea of selling feels wrong, it feels ungrateful, it even feels risky, like you're giving up future gains.
03:37.767 --> 03:46.180
[SPEAKER_00]: But here's what I learned the hard way by watching my network swing by over $100,000 in a single day based on one stock's performance.
03:46.200 --> 03:47.863
[SPEAKER_00]: That's not wealth.
03:47.843 --> 03:50.669
[SPEAKER_00]: that's a gamble dressed up in company equity.
03:50.910 --> 03:57.744
[SPEAKER_00]: In research backs this up, it shows that proper diversification can reduce your risk by up to 50%.
03:57.985 --> 04:05.220
[SPEAKER_00]: But even more important, it can increase your returns by 15% compared to concentrated strategies.
04:05.461 --> 04:08.367
[SPEAKER_00]: Read that again, lower risk,
04:08.347 --> 04:18.967
[SPEAKER_00]: and higher returns, to phrase that changed everything for me was, money is made through concentration, but it's preserved and grown through diversification.
04:19.108 --> 04:20.350
[SPEAKER_00]: Here's the fix.
04:20.370 --> 04:23.436
[SPEAKER_00]: This isn't about panic selling your winners overnight.
04:23.416 --> 04:27.184
[SPEAKER_00]: That's a terrible strategy and terrible for taxes.
04:27.424 --> 04:40.131
[SPEAKER_00]: Instead, you need a systematic divestiture plan that spreads sales over time to minimize tax impact while redeploying capital into income-producing assets.
04:40.312 --> 04:44.260
[SPEAKER_00]: When I finally implemented mine, it felt counterintuitive.
04:44.240 --> 04:52.991
[SPEAKER_00]: I was selling stock at all-time highs, but two years later, my portfolio was generating actual income instead of just paper wealth.
04:53.252 --> 04:58.198
[SPEAKER_00]: That's when I realized that paper millions sitting in one stock won't change your life.
04:58.499 --> 05:05.167
[SPEAKER_00]: Portfolio income will, and that ties perfectly into mistake number three, managing millions like a side project.
05:05.387 --> 05:07.190
[SPEAKER_00]: Here's a question that might make you uncomfortable.
05:07.390 --> 05:12.276
[SPEAKER_00]: Would you run a six-figure business without systems, targets, or a team?
05:12.677 --> 05:13.538
[SPEAKER_00]: No?
05:13.518 --> 05:19.487
[SPEAKER_00]: then why are you doing exactly that with your multi-million dollar portfolio right now?
05:19.847 --> 05:25.696
[SPEAKER_00]: If structured correctly, your portfolio should be generating substantial cash flow every single year.
05:25.896 --> 05:28.681
[SPEAKER_00]: But instead, you're managing it like it's a side hustle.
05:28.941 --> 05:34.269
[SPEAKER_00]: A few spreadsheets here, some quarterly check-ins there, and a whole lot of hoping things work out.
05:34.469 --> 05:39.036
[SPEAKER_00]: The cost of this amateur approach is
05:39.016 --> 05:41.005
[SPEAKER_00]: This is according to a Vanguard study.
05:41.366 --> 05:46.931
[SPEAKER_00]: If you do the math on a $2 million portfolio, that's $60,000 per year.
05:47.272 --> 05:49.060
[SPEAKER_00]: On a $5 million portfolio,
05:49.377 --> 05:55.445
[SPEAKER_00]: $150,000 annually, Dawn vaporized, because you don't have systems.
05:55.765 --> 06:00.792
[SPEAKER_00]: Now here's the fix, start treating your portfolio, like the business that actually is.
06:01.092 --> 06:06.459
[SPEAKER_00]: You need operational systems, not something complicated, just something consistent.
06:06.660 --> 06:16.212
[SPEAKER_00]: Talking monthly reviews, quarterly rebalancing, annual strategic planning, clear processes for decision making, instead of gut feeling management.
06:16.192 --> 06:21.481
[SPEAKER_00]: Now, mistake number four is a subset of the previous mistake, and it's really important.
06:21.681 --> 06:24.465
[SPEAKER_00]: It's treating tax planning like an afterthought.
06:24.806 --> 06:35.263
[SPEAKER_00]: Most people treat tax planning with a multi-million dollar portfolio, the same as when their net worth was just a few thousand bucks in the bank, and maybe a hundred grand in a 401k.
06:35.243 --> 06:37.269
[SPEAKER_00]: But it's not the same game anymore.
06:37.510 --> 06:44.031
[SPEAKER_00]: Tax-efficient strategies can easily save up to 1% annually on a $3 million portfolio.
06:44.251 --> 06:48.645
[SPEAKER_00]: We're talking about $30,000 plus in additional wealth
06:48.963 --> 06:51.730
[SPEAKER_00]: just from being strategic about taxes.
06:52.051 --> 06:53.414
[SPEAKER_00]: Let me give you a personal example.
06:53.534 --> 07:03.800
[SPEAKER_00]: When I hired my certified tax planner, I thought it was already pretty optimized, but they were still able to save me and additional $22,000 in taxes in your one.
07:04.001 --> 07:06.567
[SPEAKER_00]: Now look at that over 10 years later.
07:06.547 --> 07:10.132
[SPEAKER_00]: That's almost an additional quarter million saved in taxes.
07:10.472 --> 07:11.674
[SPEAKER_00]: This is just one example.
07:11.854 --> 07:13.817
[SPEAKER_00]: But tax efficiency touches everything.
07:14.277 --> 07:22.008
[SPEAKER_00]: Diversity through timing, asset location, rebalancing strategies, charitable giving, and even how you structure your estate plan.
07:22.148 --> 07:23.129
[SPEAKER_00]: Here's the fix for you.
07:23.410 --> 07:32.402
[SPEAKER_00]: Work with an expert who understands high network strategies and integrate strategic tax planning throughout your entire wealth framework.
07:32.382 --> 07:33.663
[SPEAKER_00]: not just that year in.
07:33.844 --> 07:40.330
[SPEAKER_00]: And that ties into mistake number five perfectly, which is settling for cookie cutter financial advice.
07:40.350 --> 07:43.834
[SPEAKER_00]: There's a gap in the wealth management industry that nobody talks about.
07:44.515 --> 07:46.336
[SPEAKER_00]: It's called the service desert.
07:46.577 --> 07:51.582
[SPEAKER_00]: If you have less than $1 million, you get robot advisors, generic planning.
07:51.822 --> 08:01.292
[SPEAKER_00]: If you have over $100 million, you get white glove family office
08:01.272 --> 08:02.954
[SPEAKER_00]: and sophisticated well strategies.
08:03.135 --> 08:15.273
[SPEAKER_00]: But what if you're in between, what if you have one to 30 million, you get lumped in with massive fluent households, given generic 60, 40 portfolios, until that you don't need anything more advanced.
08:15.573 --> 08:16.374
[SPEAKER_00]: That's absurd.
08:16.414 --> 08:18.498
[SPEAKER_00]: Here's what traditional advisors do.
08:19.078 --> 08:21.622
[SPEAKER_00]: They convince you they're smarter than you.
08:22.123 --> 08:24.867
[SPEAKER_00]: Get as much of your money under management as possible.
08:24.847 --> 08:30.516
[SPEAKER_00]: put it in products where they can do as little work as possible while collecting their 1% annually.
08:30.576 --> 08:35.263
[SPEAKER_00]: Their whole business model is based on keeping your portfolio as simple as possible.
08:35.483 --> 08:38.247
[SPEAKER_00]: And I mean, simple for them, not for you.
08:38.307 --> 08:42.654
[SPEAKER_00]: On average, each financial advisor serves 363 clients.
08:43.014 --> 08:51.968
[SPEAKER_00]: So their goal is to have as little interaction with your portfolio as possible so they can maximize the number of clients they can serve us.
08:51.948 --> 08:58.995
[SPEAKER_00]: maximize assets and remanagement and maximize their profit because remember they make money whether you do or not.
08:59.256 --> 09:00.517
[SPEAKER_00]: Here's the fix.
09:00.537 --> 09:06.303
[SPEAKER_00]: Stop accepting that family office level strategies are only for people with a hundred million plus.
09:06.663 --> 09:09.266
[SPEAKER_00]: You need what I call a micro family office.
09:09.566 --> 09:17.955
[SPEAKER_00]: The right sized lean version of a traditional family office optimize for portfolios between one to thirty million
09:17.935 --> 09:26.065
[SPEAKER_00]: It's lean, tech-enabled and focused on access to the same asset classes and decision-making frameworks that the ultra-wealthy use.
09:26.085 --> 09:32.333
[SPEAKER_00]: You want private equity exposure, real estate syndications, direct investments, advanced tax planning.
09:32.533 --> 09:38.120
[SPEAKER_00]: All of that is available to you right now if you want to take an active role in managing your portfolio.
09:38.240 --> 09:46.170
[SPEAKER_00]: Don't let anyone tell you otherwise, but I'll caution you, don't go this route if you're still making mistake number six, which is
09:46.150 --> 09:49.533
[SPEAKER_00]: Confusing money making with managing wealth.
09:49.553 --> 09:52.316
[SPEAKER_00]: This is the metamistake that underlines all others.
09:52.996 --> 09:59.922
[SPEAKER_00]: Like I said earlier, just because you're brilliant and earning money doesn't mean you can automatically manage wealth effectively.
10:00.163 --> 10:04.046
[SPEAKER_00]: Making money and managing wealth are completely different skill sets.
10:04.366 --> 10:10.152
[SPEAKER_00]: It's like being a software developer in assuming that you can negotiate an enterprise deal without training.
10:10.332 --> 10:11.553
[SPEAKER_00]: The mental models are different.
10:12.093 --> 10:16.157
[SPEAKER_00]: The time horizons are different.
10:16.137 --> 10:22.245
[SPEAKER_00]: Most high earners master wealth creation, but remain complete amateurs at wealth management.
10:22.425 --> 10:30.175
[SPEAKER_00]: The money maker mindset keeps you focused on salary and paychecks instead of building portfolio income and systematic wealth.
10:30.555 --> 10:31.737
[SPEAKER_00]: I live this transition.
10:32.197 --> 10:37.504
[SPEAKER_00]: As a CIO, I was amazing at building scalable systems and collecting a hefty paycheck.
10:37.484 --> 10:40.669
[SPEAKER_00]: but when it came to managing my wealth, I was a novice at best.
10:41.009 --> 10:46.017
[SPEAKER_00]: I had to unlearn my work mindset and learn an entirely new discipline.
10:46.237 --> 10:54.149
[SPEAKER_00]: So here's the fix, acknowledge this gap early, the sooner the better and make the intentional transition from wealth creator to wealth manager.
10:54.429 --> 10:56.953
[SPEAKER_00]: This isn't about working less or stopping your career.
10:57.554 --> 11:00.538
[SPEAKER_00]: It's about developing a parallel skill set.
11:00.518 --> 11:02.780
[SPEAKER_00]: for managing the wealth that you're creating.
11:03.000 --> 11:07.124
[SPEAKER_00]: The goal is to build a portfolio that eventually replaces your active income.
11:07.365 --> 11:08.846
[SPEAKER_00]: Right now, you work for money.
11:09.567 --> 11:12.189
[SPEAKER_00]: The in-game is having money work for you.
11:12.529 --> 11:14.852
[SPEAKER_00]: That requires a completely different approach.
11:15.112 --> 11:18.475
[SPEAKER_00]: Look, you don't need to fix all six of these at once.
11:19.036 --> 11:25.101
[SPEAKER_00]: That would be overwhelming, but you do need to start with the foundation and have a plan to tackle the rest of them.
11:25.201 --> 11:28.905
[SPEAKER_00]: If I could go back and give my younger self advice, here's what I'd say.
11:28.885 --> 11:34.856
[SPEAKER_00]: Start with your legacy statement and investment thesis and don't make another investment until these exist.
11:35.177 --> 11:42.150
[SPEAKER_00]: Then systematically address your concentrated positions, build your operational systems and integrate tax planning.
11:42.371 --> 11:45.396
[SPEAKER_00]: It took me 12 years to figure this out through trial and error.
11:45.577 --> 11:48.362
[SPEAKER_00]: Thankfully, you don't need 12 years.
11:48.342 --> 11:50.685
[SPEAKER_00]: you just need to avoid these mistakes.
11:51.046 --> 11:59.258
[SPEAKER_00]: If you want to start managing your wealth like a business, instead of a side hustle, and avoid all these costly mistakes, I want to invite you to a live workshop.
11:59.358 --> 12:00.400
[SPEAKER_00]: I'm hosting in a few days.
12:00.680 --> 12:07.170
[SPEAKER_00]: To apply, just head over to wealthups.io forward slash go or you can click the link below this video.
12:07.410 --> 12:08.191
[SPEAKER_00]: I hope to see you there.
12:08.391 --> 12:15.582
[SPEAKER_00]: And if you're interested in learning more about what a micro family office is and how it operates, then you should check out this video.
00:00.031 --> 00:04.936
[SPEAKER_00]: I made $3.3 million in five minutes during my first IPO.
00:05.116 --> 00:10.262
[SPEAKER_00]: Six months later, I was having a complete meltdown as I laid in bed staring at the ceiling.
00:10.382 --> 00:10.862
[SPEAKER_00]: Here's why.
00:11.343 --> 00:17.409
[SPEAKER_00]: I thought seeing seven figures in my bank account would set me free, but I had more anxiety than ever before.
00:17.689 --> 00:26.038
[SPEAKER_00]: And here's the uncomfortable truth that I learned over the next 12 years, making money and managing money are totally different skills.
00:26.018 --> 00:43.572
[SPEAKER_00]: I'm Christopher Nelson, founder of Welp Ops, and in the next 12 minutes, I'm going to show you six of the most common mistakes I've seen first time millioners make, why they're so dangerous, and the systematic framework you can use to avoid them in your own million dollar portfolio.
00:43.552 --> 00:51.261
[SPEAKER_00]: This is the video I was existed when I was staring at my first seven-figure network with no idea of what to do next.
00:51.521 --> 00:53.103
[SPEAKER_00]: Let's start with mistake number one.
00:53.283 --> 00:59.050
[SPEAKER_00]: Taking investment action before creating your investment thesis in legacy statement.
00:59.250 --> 01:04.236
[SPEAKER_00]: This is the most foundational and potentially expensive mistake you could make.
01:04.256 --> 01:08.040
[SPEAKER_00]: And it's easy to make because the moment you become a millionaire,
01:08.020 --> 01:09.623
[SPEAKER_00]: everyone has advice for you.
01:09.863 --> 01:18.960
[SPEAKER_00]: Your colleagues are talking about crypto, your brother-in-law is pushing real estate and financial advisors are cold calling you with opportunities.
01:19.281 --> 01:20.082
[SPEAKER_00]: Here's what happens.
01:20.643 --> 01:25.252
[SPEAKER_00]: You see the money sitting in your brokerage account and you think I shouldn't just let this money sit here.
01:25.673 --> 01:30.822
[SPEAKER_00]: So you start deploying capital in investments that feel right.
01:30.802 --> 01:33.765
[SPEAKER_00]: All before you've answered two critical questions.
01:34.085 --> 01:37.109
[SPEAKER_00]: Why am I building wealth and what's my strategic plan?
01:37.349 --> 01:39.631
[SPEAKER_00]: Your legacy statement is your long-term vision.
01:39.691 --> 01:43.175
[SPEAKER_00]: It defines why you're building wealth beyond just having more money.
01:43.455 --> 01:50.403
[SPEAKER_00]: And your investment thesis is your strategic plan covering asset classes, risk tolerance, and liquidity targets.
01:50.763 --> 01:55.108
[SPEAKER_00]: These are pre-requisites for every single investment decision that follows.
01:55.348 --> 01:56.249
[SPEAKER_00]: Think about it this way.
01:56.349 --> 01:58.311
[SPEAKER_00]: You wouldn't build a system
01:58.291 --> 02:00.714
[SPEAKER_00]: without first defining what it needs to accomplish.
02:00.975 --> 02:07.984
[SPEAKER_00]: Most new millionaires jump straight into, well, what should I invest in without defining what success actually looks like?
02:08.004 --> 02:12.531
[SPEAKER_00]: I learned this lesson sitting in my main hat and office as a chief information officer.
02:12.791 --> 02:16.937
[SPEAKER_00]: I had millions in the bank, but no income replacement strategy.
02:17.117 --> 02:20.782
[SPEAKER_00]: Every Friday night, I disappoint my wife because I couldn't leave work.
02:20.802 --> 02:25.568
[SPEAKER_00]: My wealth wasn't working for me, because I'd never defined what I wanted it to do.
02:25.969 --> 02:27.471
[SPEAKER_00]: So here's the fix.
02:27.451 --> 02:31.757
[SPEAKER_00]: Before you make a single investment decision, create these two documents.
02:32.057 --> 02:36.042
[SPEAKER_00]: Your legacy statement answers why and defines your vision.
02:36.223 --> 02:41.369
[SPEAKER_00]: Your investment thesis answers how and becomes your decision-making framework.
02:41.389 --> 02:43.672
[SPEAKER_00]: Without these, you're building on sand.
02:44.013 --> 02:50.622
[SPEAKER_00]: Now, if you want help, we have a free live workshop coming up in a few days that will walk you through how to do this.
02:50.942 --> 02:55.568
[SPEAKER_00]: You can register at wealthops.io forward slash go.
02:55.548 --> 03:01.516
[SPEAKER_00]: Okay, let's move on to mistake number two, staying overexposed to concentrated stock positions.
03:01.856 --> 03:09.586
[SPEAKER_00]: Here's a question to ask yourself, if the largest stock position in your portfolio dropped 50% tomorrow, would you lose sleep?
03:09.867 --> 03:21.722
[SPEAKER_00]: If your answer is yes, you have what I call the equity concentration time bomb, and this is a very common situation for tech professionals, and one I found myself facing as well.
03:21.742 --> 03:24.846
[SPEAKER_00]: I understand how easily you can find yourself here.
03:24.826 --> 03:37.526
[SPEAKER_00]: When your company stock has been your golden goose, maybe it made you a millionaire in the first place, the idea of selling feels wrong, it feels ungrateful, it even feels risky, like you're giving up future gains.
03:37.767 --> 03:46.180
[SPEAKER_00]: But here's what I learned the hard way by watching my network swing by over $100,000 in a single day based on one stock's performance.
03:46.200 --> 03:47.863
[SPEAKER_00]: That's not wealth.
03:47.843 --> 03:50.669
[SPEAKER_00]: that's a gamble dressed up in company equity.
03:50.910 --> 03:57.744
[SPEAKER_00]: In research backs this up, it shows that proper diversification can reduce your risk by up to 50%.
03:57.985 --> 04:05.220
[SPEAKER_00]: But even more important, it can increase your returns by 15% compared to concentrated strategies.
04:05.461 --> 04:08.367
[SPEAKER_00]: Read that again, lower risk,
04:08.347 --> 04:18.967
[SPEAKER_00]: and higher returns, to phrase that changed everything for me was, money is made through concentration, but it's preserved and grown through diversification.
04:19.108 --> 04:20.350
[SPEAKER_00]: Here's the fix.
04:20.370 --> 04:23.436
[SPEAKER_00]: This isn't about panic selling your winners overnight.
04:23.416 --> 04:27.184
[SPEAKER_00]: That's a terrible strategy and terrible for taxes.
04:27.424 --> 04:40.131
[SPEAKER_00]: Instead, you need a systematic divestiture plan that spreads sales over time to minimize tax impact while redeploying capital into income-producing assets.
04:40.312 --> 04:44.260
[SPEAKER_00]: When I finally implemented mine, it felt counterintuitive.
04:44.240 --> 04:52.991
[SPEAKER_00]: I was selling stock at all-time highs, but two years later, my portfolio was generating actual income instead of just paper wealth.
04:53.252 --> 04:58.198
[SPEAKER_00]: That's when I realized that paper millions sitting in one stock won't change your life.
04:58.499 --> 05:05.167
[SPEAKER_00]: Portfolio income will, and that ties perfectly into mistake number three, managing millions like a side project.
05:05.387 --> 05:07.190
[SPEAKER_00]: Here's a question that might make you uncomfortable.
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[SPEAKER_00]: Would you run a six-figure business without systems, targets, or a team?
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[SPEAKER_00]: No?
05:13.518 --> 05:19.487
[SPEAKER_00]: then why are you doing exactly that with your multi-million dollar portfolio right now?
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[SPEAKER_00]: If structured correctly, your portfolio should be generating substantial cash flow every single year.
05:25.896 --> 05:28.681
[SPEAKER_00]: But instead, you're managing it like it's a side hustle.
05:28.941 --> 05:34.269
[SPEAKER_00]: A few spreadsheets here, some quarterly check-ins there, and a whole lot of hoping things work out.
05:34.469 --> 05:39.036
[SPEAKER_00]: The cost of this amateur approach is
05:39.016 --> 05:41.005
[SPEAKER_00]: This is according to a Vanguard study.
05:41.366 --> 05:46.931
[SPEAKER_00]: If you do the math on a $2 million portfolio, that's $60,000 per year.
05:47.272 --> 05:49.060
[SPEAKER_00]: On a $5 million portfolio,
05:49.377 --> 05:55.445
[SPEAKER_00]: $150,000 annually, Dawn vaporized, because you don't have systems.
05:55.765 --> 06:00.792
[SPEAKER_00]: Now here's the fix, start treating your portfolio, like the business that actually is.
06:01.092 --> 06:06.459
[SPEAKER_00]: You need operational systems, not something complicated, just something consistent.
06:06.660 --> 06:16.212
[SPEAKER_00]: Talking monthly reviews, quarterly rebalancing, annual strategic planning, clear processes for decision making, instead of gut feeling management.
06:16.192 --> 06:21.481
[SPEAKER_00]: Now, mistake number four is a subset of the previous mistake, and it's really important.
06:21.681 --> 06:24.465
[SPEAKER_00]: It's treating tax planning like an afterthought.
06:24.806 --> 06:35.263
[SPEAKER_00]: Most people treat tax planning with a multi-million dollar portfolio, the same as when their net worth was just a few thousand bucks in the bank, and maybe a hundred grand in a 401k.
06:35.243 --> 06:37.269
[SPEAKER_00]: But it's not the same game anymore.
06:37.510 --> 06:44.031
[SPEAKER_00]: Tax-efficient strategies can easily save up to 1% annually on a $3 million portfolio.
06:44.251 --> 06:48.645
[SPEAKER_00]: We're talking about $30,000 plus in additional wealth
06:48.963 --> 06:51.730
[SPEAKER_00]: just from being strategic about taxes.
06:52.051 --> 06:53.414
[SPEAKER_00]: Let me give you a personal example.
06:53.534 --> 07:03.800
[SPEAKER_00]: When I hired my certified tax planner, I thought it was already pretty optimized, but they were still able to save me and additional $22,000 in taxes in your one.
07:04.001 --> 07:06.567
[SPEAKER_00]: Now look at that over 10 years later.
07:06.547 --> 07:10.132
[SPEAKER_00]: That's almost an additional quarter million saved in taxes.
07:10.472 --> 07:11.674
[SPEAKER_00]: This is just one example.
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[SPEAKER_00]: But tax efficiency touches everything.
07:14.277 --> 07:22.008
[SPEAKER_00]: Diversity through timing, asset location, rebalancing strategies, charitable giving, and even how you structure your estate plan.
07:22.148 --> 07:23.129
[SPEAKER_00]: Here's the fix for you.
07:23.410 --> 07:32.402
[SPEAKER_00]: Work with an expert who understands high network strategies and integrate strategic tax planning throughout your entire wealth framework.
07:32.382 --> 07:33.663
[SPEAKER_00]: not just that year in.
07:33.844 --> 07:40.330
[SPEAKER_00]: And that ties into mistake number five perfectly, which is settling for cookie cutter financial advice.
07:40.350 --> 07:43.834
[SPEAKER_00]: There's a gap in the wealth management industry that nobody talks about.
07:44.515 --> 07:46.336
[SPEAKER_00]: It's called the service desert.
07:46.577 --> 07:51.582
[SPEAKER_00]: If you have less than $1 million, you get robot advisors, generic planning.
07:51.822 --> 08:01.292
[SPEAKER_00]: If you have over $100 million, you get white glove family office
08:01.272 --> 08:02.954
[SPEAKER_00]: and sophisticated well strategies.
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[SPEAKER_00]: But what if you're in between, what if you have one to 30 million, you get lumped in with massive fluent households, given generic 60, 40 portfolios, until that you don't need anything more advanced.
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[SPEAKER_00]: That's absurd.
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[SPEAKER_00]: Here's what traditional advisors do.
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[SPEAKER_00]: They convince you they're smarter than you.
08:22.123 --> 08:24.867
[SPEAKER_00]: Get as much of your money under management as possible.
08:24.847 --> 08:30.516
[SPEAKER_00]: put it in products where they can do as little work as possible while collecting their 1% annually.
08:30.576 --> 08:35.263
[SPEAKER_00]: Their whole business model is based on keeping your portfolio as simple as possible.
08:35.483 --> 08:38.247
[SPEAKER_00]: And I mean, simple for them, not for you.
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[SPEAKER_00]: On average, each financial advisor serves 363 clients.
08:43.014 --> 08:51.968
[SPEAKER_00]: So their goal is to have as little interaction with your portfolio as possible so they can maximize the number of clients they can serve us.
08:51.948 --> 08:58.995
[SPEAKER_00]: maximize assets and remanagement and maximize their profit because remember they make money whether you do or not.
08:59.256 --> 09:00.517
[SPEAKER_00]: Here's the fix.
09:00.537 --> 09:06.303
[SPEAKER_00]: Stop accepting that family office level strategies are only for people with a hundred million plus.
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[SPEAKER_00]: You need what I call a micro family office.
09:09.566 --> 09:17.955
[SPEAKER_00]: The right sized lean version of a traditional family office optimize for portfolios between one to thirty million
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[SPEAKER_00]: It's lean, tech-enabled and focused on access to the same asset classes and decision-making frameworks that the ultra-wealthy use.
09:26.085 --> 09:32.333
[SPEAKER_00]: You want private equity exposure, real estate syndications, direct investments, advanced tax planning.
09:32.533 --> 09:38.120
[SPEAKER_00]: All of that is available to you right now if you want to take an active role in managing your portfolio.
09:38.240 --> 09:46.170
[SPEAKER_00]: Don't let anyone tell you otherwise, but I'll caution you, don't go this route if you're still making mistake number six, which is
09:46.150 --> 09:49.533
[SPEAKER_00]: Confusing money making with managing wealth.
09:49.553 --> 09:52.316
[SPEAKER_00]: This is the metamistake that underlines all others.
09:52.996 --> 09:59.922
[SPEAKER_00]: Like I said earlier, just because you're brilliant and earning money doesn't mean you can automatically manage wealth effectively.
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[SPEAKER_00]: Making money and managing wealth are completely different skill sets.
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[SPEAKER_00]: It's like being a software developer in assuming that you can negotiate an enterprise deal without training.
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[SPEAKER_00]: The mental models are different.
10:12.093 --> 10:16.157
[SPEAKER_00]: The time horizons are different.
10:16.137 --> 10:22.245
[SPEAKER_00]: Most high earners master wealth creation, but remain complete amateurs at wealth management.
10:22.425 --> 10:30.175
[SPEAKER_00]: The money maker mindset keeps you focused on salary and paychecks instead of building portfolio income and systematic wealth.
10:30.555 --> 10:31.737
[SPEAKER_00]: I live this transition.
10:32.197 --> 10:37.504
[SPEAKER_00]: As a CIO, I was amazing at building scalable systems and collecting a hefty paycheck.
10:37.484 --> 10:40.669
[SPEAKER_00]: but when it came to managing my wealth, I was a novice at best.
10:41.009 --> 10:46.017
[SPEAKER_00]: I had to unlearn my work mindset and learn an entirely new discipline.
10:46.237 --> 10:54.149
[SPEAKER_00]: So here's the fix, acknowledge this gap early, the sooner the better and make the intentional transition from wealth creator to wealth manager.
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[SPEAKER_00]: This isn't about working less or stopping your career.
10:57.554 --> 11:00.538
[SPEAKER_00]: It's about developing a parallel skill set.
11:00.518 --> 11:02.780
[SPEAKER_00]: for managing the wealth that you're creating.
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[SPEAKER_00]: The goal is to build a portfolio that eventually replaces your active income.
11:07.365 --> 11:08.846
[SPEAKER_00]: Right now, you work for money.
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[SPEAKER_00]: The in-game is having money work for you.
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[SPEAKER_00]: That requires a completely different approach.
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[SPEAKER_00]: Look, you don't need to fix all six of these at once.
11:19.036 --> 11:25.101
[SPEAKER_00]: That would be overwhelming, but you do need to start with the foundation and have a plan to tackle the rest of them.
11:25.201 --> 11:28.905
[SPEAKER_00]: If I could go back and give my younger self advice, here's what I'd say.
11:28.885 --> 11:34.856
[SPEAKER_00]: Start with your legacy statement and investment thesis and don't make another investment until these exist.
11:35.177 --> 11:42.150
[SPEAKER_00]: Then systematically address your concentrated positions, build your operational systems and integrate tax planning.
11:42.371 --> 11:45.396
[SPEAKER_00]: It took me 12 years to figure this out through trial and error.
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[SPEAKER_00]: Thankfully, you don't need 12 years.
11:48.342 --> 11:50.685
[SPEAKER_00]: you just need to avoid these mistakes.
11:51.046 --> 11:59.258
[SPEAKER_00]: If you want to start managing your wealth like a business, instead of a side hustle, and avoid all these costly mistakes, I want to invite you to a live workshop.
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[SPEAKER_00]: I'm hosting in a few days.
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[SPEAKER_00]: To apply, just head over to wealthups.io forward slash go or you can click the link below this video.
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[SPEAKER_00]: I hope to see you there.
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[SPEAKER_00]: And if you're interested in learning more about what a micro family office is and how it operates, then you should check out this video.
