Nov. 18, 2025
133: Have $1M+ Net Worth? Here's How To Turn It Into a Cash Flow Machine
If your net worth is over $1 million, I’m about to show you how the ultra-wealthy turn their portfolios into cash flow machines—and why your financial advisor will likely never teach you this.
Most traditional advisors will put you in a 60/40 portfolio and tell you to keep growing your net worth until retirement. The goal? Just get a bigger number on the screen. Then, maybe, if the market plays nice, you can start pulling 4% a year at 65.
But here’s what they don’t tell you: families managing $100+ million aren’t waiting until 65. They’re generating income today—and their wealth is still growing.
Now, you might be thinking, “But I don’t have $100 million. Can I still do this?”
That’s the exact question I spent the last 10 years answering. I’m Christopher Nelson. A few years ago, my portfolio was 98% in public stocks—and it produced zero cash flow. Today, that same portfolio pays me over $200,000 a year in income without selling assets, without touching principal, and it has grown by over $2 million in value.
In this video, I’m going to walk you through the three-step process I used to transform my portfolio into what I call an Evergreen Portfolio—a strategy designed to generate income today and build long-term wealth.
We’ll cover:
- Why the 4% rule falls short—especially if you want lifestyle freedom before 65
- How family offices think differently: they prioritize income, not just accumulation
- The three core asset categories: Income, Growth, and Preservation
- How to build a portfolio that aligns with your goals—whether that’s replacing active income now, creating balance, or growing for future generations
- The real numbers and asset allocation from my personal portfolio
- Why traditional drawdown strategies can fail depending on market timing (sequence of returns risk)
- How to build your Investment Thesis—your personalized blueprint for financial freedom
I'll also explain how to transition your current assets—without blowing up your tax situation—and what to do with your capital once it’s freed up.
This is the exact strategy I teach in my live workshops, where I help high-net-worth individuals build their own Micro Family Office and implement the Evergreen Portfolio model.
Bottom line: you don’t need $10M or $20M to live like the wealthy. You just need to structure what you already have differently.
You have everything you need to start right now.
The question is: how much longer are you willing to wait?
Transcript
WEBVTT
00:00.031 --> 00:12.368
[SPEAKER_00]: If you have over a million dollars in net worth, I'm going to show you how the ultra-wealthy turn their portfolios into cashflow machines and why your financial advisor will never teach you this.
00:12.689 --> 00:20.259
[SPEAKER_00]: Most financial advisors will put you into a 60-40 portfolio and tell you to keep accumulating until you're 65.
00:20.760 --> 00:22.242
[SPEAKER_00]: The goal is just
00:22.222 --> 00:23.626
[SPEAKER_00]: have a bigger number on the screen.
00:23.886 --> 00:29.060
[SPEAKER_00]: Then maybe if you're lucky, you can start pulling 4% per year in retirement.
00:29.080 --> 00:30.504
[SPEAKER_00]: But here's what they don't tell you.
00:30.585 --> 00:34.355
[SPEAKER_00]: Family is managing 100 million plus, aren't waiting until 65.
00:34.776 --> 00:37.463
[SPEAKER_00]: They're living off cashflow today,
00:37.443 --> 00:39.165
[SPEAKER_00]: while their wealth continues growing.
00:39.506 --> 00:42.129
[SPEAKER_00]: So what if you're like me and don't have 100 million?
00:42.530 --> 00:43.411
[SPEAKER_00]: Can you still do this?
00:43.811 --> 00:46.795
[SPEAKER_00]: That's exactly what I spent 10 years figuring out.
00:47.096 --> 00:54.886
[SPEAKER_00]: I'm Christopher Nelson in a few years ago, my portfolio was 98% in public stocks generating zero cash flow.
00:55.066 --> 01:02.396
[SPEAKER_00]: Today, that same portfolio generates over $200,000 per year in cash flow and is grown by over $2 million.
01:03.177 --> 01:07.382
[SPEAKER_00]: I'm not touching principle.
01:07.362 --> 01:09.245
[SPEAKER_00]: the portfolio just pays me.
01:09.525 --> 01:19.780
[SPEAKER_00]: In this video, I'm going to walk you through the exact three-step process to restructure your portfolio into a cash flow machine even if you're starting with just $1 million.
01:20.441 --> 01:23.766
[SPEAKER_00]: Now, you may be thinking, wait, I have a financial advisor.
01:23.966 --> 01:26.009
[SPEAKER_00]: They've got me in a diversified portfolio.
01:26.229 --> 01:26.950
[SPEAKER_00]: Isn't that enough?
01:27.331 --> 01:28.232
[SPEAKER_00]: Well, here's the thing.
01:28.392 --> 01:29.474
[SPEAKER_00]: Well, two things.
01:29.494 --> 01:35.783
[SPEAKER_00]: First, you aren't actually diversified if more than 50% of your portfolio is in public stocks.
01:35.763 --> 01:39.629
[SPEAKER_00]: And second, traditional advisors only know one playbook.
01:39.889 --> 01:43.695
[SPEAKER_00]: Grow the portfolio and hope that it's big enough when you need it.
01:43.955 --> 01:50.284
[SPEAKER_00]: They measure success by your total portfolio value, not by what that portfolio actually does for you.
01:50.304 --> 01:54.531
[SPEAKER_00]: And don't forget, they get paid whether your portfolio goes up or down.
01:54.711 --> 01:56.954
[SPEAKER_00]: The implicit promise is always the same.
01:57.235 --> 01:59.458
[SPEAKER_00]: If you can just get to 2 million,
01:59.438 --> 02:06.119
[SPEAKER_00]: or wait, no, just 3 million, then maybe 5 million, then you can retire, but here's what happens.
02:06.761 --> 02:10.271
[SPEAKER_00]: The dollar keeps losing value and your lifestyle keeps increasing.
02:10.472 --> 02:12.418
[SPEAKER_00]: The goalpost keeps moving
02:12.668 --> 02:14.412
[SPEAKER_00]: and you just keep working.
02:14.753 --> 02:18.862
[SPEAKER_00]: So let me show you why this doesn't work for somebody with $1 million more.
02:19.103 --> 02:22.290
[SPEAKER_00]: The standard advice is the 4% rule, right?
02:22.651 --> 02:26.499
[SPEAKER_00]: So on a million dollar portfolio, that's $40,000 per year.
02:26.840 --> 02:31.150
[SPEAKER_00]: After taxes, you're looking at maybe $30,000 to $35,000.
02:31.130 --> 02:31.691
[SPEAKER_00]: annually.
02:31.871 --> 02:34.776
[SPEAKER_00]: That's less than you probably made when you started your career.
02:35.136 --> 02:42.607
[SPEAKER_00]: You've worked for decades, you've built a million dollar portfolio and now you're supposed to live on less than you made as a 25 year old.
02:42.868 --> 02:49.037
[SPEAKER_00]: You feel ultimately like you're going backwards and psychologically this creates an enormous weight.
02:49.017 --> 02:52.803
[SPEAKER_00]: You're constantly asking yourself, am I ever going to have enough?
02:52.823 --> 02:53.865
[SPEAKER_00]: Do I need 10 million?
02:53.885 --> 02:54.666
[SPEAKER_00]: 20 million?
02:55.006 --> 02:59.093
[SPEAKER_00]: When can I stop if I want to continue living the same lifestyle?
02:59.433 --> 03:03.900
[SPEAKER_00]: Meanwhile, family offices operate on a completely different philosophy.
03:04.140 --> 03:08.227
[SPEAKER_00]: They focus on income generation, not just portfolio growth.
03:08.487 --> 03:13.755
[SPEAKER_00]: Their portfolio is typically generate somewhere between six to eight percent in cash flow annually.
03:14.056 --> 03:14.797
[SPEAKER_00]: And here's the key.
03:14.917 --> 03:16.780
[SPEAKER_00]: The wealth continues growing
03:16.760 --> 03:19.445
[SPEAKER_00]: while it's continuing to generate that income.
03:19.585 --> 03:24.675
[SPEAKER_00]: So if you want to start operating your wealth like the ultra wealthy, here's what needs to change.
03:25.015 --> 03:30.666
[SPEAKER_00]: First, you need to stop measuring success by portfolio value alone and add a second measure.
03:31.507 --> 03:32.990
[SPEAKER_00]: Cash flow generated.
03:33.030 --> 03:33.872
[SPEAKER_00]: Think about it.
03:34.613 --> 03:37.418
[SPEAKER_00]: Your portfolio should work like a business.
03:37.837 --> 03:40.199
[SPEAKER_00]: A business doesn't just accumulate value.
03:40.720 --> 03:43.823
[SPEAKER_00]: It generates income while growing its equity.
03:44.244 --> 03:46.546
[SPEAKER_00]: That's exactly what family offices do.
03:47.047 --> 03:51.732
[SPEAKER_00]: And today I'm gonna give you the three steps to start transitioning your portfolio.
03:51.912 --> 03:56.116
[SPEAKER_00]: The portfolio that the ultra wealthy use is called the Evergreen portfolio model.
03:56.317 --> 04:02.443
[SPEAKER_00]: And before I explain how the Evergreen portfolio model works, let me define a few terms really quick
04:02.423 --> 04:04.026
[SPEAKER_00]: So they were all in the same page.
04:04.427 --> 04:18.552
[SPEAKER_00]: A drawdown portfolio is the traditional retirement strategy where you systematically sell off a portion of your accumulated assets each year to fund your living expenses until the portfolio is ultimately depleted.
04:18.813 --> 04:25.765
[SPEAKER_00]: Now, when evergreen portfolio is a portfolio designed to generate consistent cash flow today,
04:25.745 --> 04:33.572
[SPEAKER_00]: Now, when you retire, while still growing the principle over time, there are three asset categories that make up the Evergreen portfolio.
04:33.792 --> 04:35.314
[SPEAKER_00]: The first one is income.
04:35.554 --> 04:39.478
[SPEAKER_00]: These are investments targeting regular cash distribution.
04:39.678 --> 04:53.811
[SPEAKER_00]: The examples would be private equity, real estate, credit funds, dividend-focused stocks, income ETFs, or executing your own covered calls or option strategies.
04:53.791 --> 04:58.157
[SPEAKER_00]: and you can target six to 10 percent returns with your income investments.
04:58.458 --> 05:00.040
[SPEAKER_00]: The second category is growth.
05:00.401 --> 05:04.046
[SPEAKER_00]: These are investments targeting long-term capital appreciation.
05:04.587 --> 05:10.395
[SPEAKER_00]: So for example, public equities, growth stage real estate, venture positions, right?
05:10.475 --> 05:14.722
[SPEAKER_00]: You want to target 10 to 15 percent returns with your growth investments.
05:15.122 --> 05:17.145
[SPEAKER_00]: And then finally, there's capital preservation.
05:17.445 --> 05:22.633
[SPEAKER_00]: These are investments focused on protecting capital and maintaining purchasing power.
05:22.613 --> 05:28.220
[SPEAKER_00]: So the example here would be Treasury bonds, money market funds, inflation protected securities.
05:28.560 --> 05:33.386
[SPEAKER_00]: You can target three to four percent returns with your capital preservation allocations.
05:33.906 --> 05:38.372
[SPEAKER_00]: Now that we're on the same page, let me give you real numbers for my own portfolio.
05:38.672 --> 05:51.928
[SPEAKER_00]: My current allocations are 47% in growth, 48% in income, and 5% in capital preservation.
05:51.908 --> 05:58.895
[SPEAKER_00]: And during the time I've been implementing this strategy, I've grown from about six million to around eight million dollars.
05:59.215 --> 06:02.478
[SPEAKER_00]: So I'm getting paid and building wealth simultaneously.
06:02.758 --> 06:04.480
[SPEAKER_00]: Now, here's what's important to understand.
06:04.700 --> 06:09.044
[SPEAKER_00]: I'm not saying you need 50% of your portfolio allocated to income investments.
06:09.384 --> 06:14.009
[SPEAKER_00]: What I'm saying is that your allocation should match your portfolios goal.
06:14.209 --> 06:18.793
[SPEAKER_00]: If your portfolio's primary job is replacing active income today,
06:18.773 --> 06:20.975
[SPEAKER_00]: then you need a heavy income allocation.
06:21.496 --> 06:25.500
[SPEAKER_00]: I'm talking 60% or more because you need cash flow now.
06:25.800 --> 06:33.888
[SPEAKER_00]: But if your portfolio's job is funding current lifestyle while building generation wealth, you can balance income and growth, something like I did.
06:34.148 --> 06:43.718
[SPEAKER_00]: Or if your portfolio's job is compounding for the next generation, because the income pillar already produces more than you need, you can wait growth at 60% or higher.
06:43.698 --> 06:48.085
[SPEAKER_00]: Now, why might you want to consider this over the traditional drawdown approach?
06:48.386 --> 06:56.679
[SPEAKER_00]: With the drawdown, you're selling assets, decreasing your principle, and you're exposed to what's called a sequence of return risks.
06:56.900 --> 07:06.816
[SPEAKER_00]: This means that if the market drops right when you start withdrawing, you're going to be forced to sell at the bottom, and this can be catastrophic when compounded over 10 plus years.
07:07.116 --> 07:10.482
[SPEAKER_00]: Here's a great example of the sequence of return risks.
07:10.462 --> 07:23.502
[SPEAKER_00]: Let's say that you retired in 2009 right after the great financial crisis, with a $3 million portfolio, 60% stocks, 40% bonds, and then let's assume that you went with the conventional 4% withdrawal rate.
07:23.782 --> 07:32.896
[SPEAKER_00]: Your portfolio nearly tripled to $8.9 million while paying you $120 to $306,000 annually for 16 years.
07:33.256 --> 07:39.085
[SPEAKER_00]: You look like a genius, but if you retired in 2000
07:39.065 --> 07:43.109
[SPEAKER_00]: Same 4% withdrawal rate, same $3 million portfolio.
07:43.149 --> 07:48.454
[SPEAKER_00]: At the end of 16 years, your portfolio would be worth only $2.69 million.
07:48.595 --> 07:50.556
[SPEAKER_00]: Less than when you started.
07:50.717 --> 08:04.110
[SPEAKER_00]: While your withdrawal rates range from $60,000 to $110,000 per year, and if you add an inflation, that $110,000 a year only had the purchasing power of $70,000 in today's money.
08:04.090 --> 08:13.968
[SPEAKER_00]: This shows you how important getting luck is with a drawdown portfolio, retire in a good year, genius, retire in a bad year, and you might be going to get another job.
08:14.168 --> 08:26.571
[SPEAKER_00]: Contrast that with an evergreen portfolio where you keep your assets, you grow your principle, and you get consistent tax advantage income today, regardless of what the stock market does on any given day.
08:26.551 --> 08:30.938
[SPEAKER_00]: Now, how do you actually implement a portfolio like the ultra wealthy?
08:31.198 --> 08:32.860
[SPEAKER_00]: There are three steps.
08:33.421 --> 08:36.225
[SPEAKER_00]: Step one, assess your current allocation.
08:36.566 --> 08:37.928
[SPEAKER_00]: Look at what you own right now.
08:38.329 --> 08:42.735
[SPEAKER_00]: What percentages are in growth only assets that produce zero cash flow?
08:42.955 --> 08:44.678
[SPEAKER_00]: What concentration risk do you have?
08:44.658 --> 08:52.392
[SPEAKER_00]: For a lot of people, they have more than 50% in company stock or in broad index funds that don't generate income.
08:52.632 --> 08:56.199
[SPEAKER_00]: And remember, index funds aren't true diversification.
08:56.499 --> 08:59.765
[SPEAKER_00]: Step two, develop your divestiture strategy.
09:00.006 --> 09:00.867
[SPEAKER_00]: This is critical.
09:01.268 --> 09:03.612
[SPEAKER_00]: You don't liquidate everything at once.
09:03.592 --> 09:09.801
[SPEAKER_00]: tax implications matter here, and when done wrong, could cost you five or even six figures.
09:10.262 --> 09:13.907
[SPEAKER_00]: I recommend a systematic approach over 12 to 24 months.
09:14.368 --> 09:16.591
[SPEAKER_00]: Use tax lost harvesting where appropriate.
09:16.831 --> 09:20.697
[SPEAKER_00]: Take advantage of qualified small business stock exemptions if you have them.
09:20.877 --> 09:25.043
[SPEAKER_00]: Time yourselves strategically around vesting schedules in income years.
09:25.023 --> 09:30.692
[SPEAKER_00]: Now, if you have a certified tax planner, this is a conversation you need to be having with them right now.
09:30.993 --> 09:36.121
[SPEAKER_00]: The goal is to transition without triggering a massive tax bill all at once.
09:36.141 --> 09:40.609
[SPEAKER_00]: Instead, three is redeploy according to your investment thesis.
09:40.949 --> 09:42.752
[SPEAKER_00]: Here's where most people get stuck.
09:42.772 --> 09:46.338
[SPEAKER_00]: As you free up capital, you need to know exactly where it's going.
09:46.699 --> 09:49.123
[SPEAKER_00]: What percentage goes into
09:49.103 --> 09:51.288
[SPEAKER_00]: growth investments in capital preservation.
09:51.588 --> 09:58.182
[SPEAKER_00]: What specific asset classes within each category you want to invest in and what your target cash flow needs to be?
09:58.523 --> 10:00.828
[SPEAKER_00]: This is what I call your investment thesis.
10:01.108 --> 10:08.985
[SPEAKER_00]: Your personalized blueprint for how your portfolio should be structured based on your specific goals, timeline, and risk tolerance.
10:08.965 --> 10:11.569
[SPEAKER_00]: So, without this blueprint, you're just guessing.
10:11.769 --> 10:19.961
[SPEAKER_00]: You might overalike to income, in sacrifice growth, or chase high yields in risky investments because you don't have clear targets.
10:20.261 --> 10:31.197
[SPEAKER_00]: This is exactly why I host a monthly library shop where I walk you through, how do you build your investment thesis and create a systematic transition plan to an evergreen portfolio?
10:31.438 --> 10:38.668
[SPEAKER_00]: If you're at the stage and need that blueprint, register for our next one at welphops.io
10:38.648 --> 10:40.813
[SPEAKER_00]: or click the link in the description below.
10:41.134 --> 10:43.118
[SPEAKER_00]: Look, here's the bottom line.
10:43.179 --> 10:51.759
[SPEAKER_00]: The traditional financial services industry wants you to believe that you need $10 million or $20 million before you can have the lifestyle that you want.
10:52.120 --> 10:56.590
[SPEAKER_00]: They want you to keep accumulating, keep working, and keep waiting for,
10:56.570 --> 10:57.191
[SPEAKER_00]: some day.
10:57.532 --> 11:00.558
[SPEAKER_00]: Meanwhile, families with evergreen portfolios aren't waiting.
11:00.759 --> 11:07.673
[SPEAKER_00]: They're living well today, while their wealth continues growing without worrying about wind or if they'll need to be able to retire.
11:07.994 --> 11:09.136
[SPEAKER_00]: And now you know their secret.
11:09.637 --> 11:11.040
[SPEAKER_00]: It's not about having more money.
11:11.100 --> 11:14.427
[SPEAKER_00]: It's about structuring what you already have.
11:14.407 --> 11:14.968
[SPEAKER_00]: differently.
11:15.268 --> 11:25.122
[SPEAKER_00]: You have everything you need to start this transition right now, whether you have one million dollars or thirty million dollars, the evergreen portfolio framework works at your level.
11:25.343 --> 11:27.746
[SPEAKER_00]: The question isn't can I do this?
11:28.147 --> 11:31.872
[SPEAKER_00]: The real question is how much longer am I willing to wait?
11:32.253 --> 11:33.294
[SPEAKER_00]: Because here's what I know.
11:33.875 --> 11:42.928
[SPEAKER_00]: Five years from now, you'll either be looking back and saying, I'm so glad that I made this shift or you're going to be asking yourself, when is enough?
11:42.908 --> 11:44.190
[SPEAKER_00]: going to be enough.
11:44.210 --> 11:50.440
[SPEAKER_00]: If you're ready to stop operating like the masses and start managing your wealth like the ultra wealthy do, here's your next step.
11:50.780 --> 12:00.135
[SPEAKER_00]: Join me in my upcoming live workshop where I'll show you exactly how do you build your own micro family office and implement the evergreen portfolio strategy?
12:00.335 --> 12:08.708
[SPEAKER_00]: And if you want to understand more about micro family offices, then check out this video where I break down the core components and how they operate.
12:08.728 --> 12:09.570
[SPEAKER_00]: Thanks for watching.
12:10.051 --> 12:10.992
[SPEAKER_00]: See you in the next one.
00:00.031 --> 00:12.368
[SPEAKER_00]: If you have over a million dollars in net worth, I'm going to show you how the ultra-wealthy turn their portfolios into cashflow machines and why your financial advisor will never teach you this.
00:12.689 --> 00:20.259
[SPEAKER_00]: Most financial advisors will put you into a 60-40 portfolio and tell you to keep accumulating until you're 65.
00:20.760 --> 00:22.242
[SPEAKER_00]: The goal is just
00:22.222 --> 00:23.626
[SPEAKER_00]: have a bigger number on the screen.
00:23.886 --> 00:29.060
[SPEAKER_00]: Then maybe if you're lucky, you can start pulling 4% per year in retirement.
00:29.080 --> 00:30.504
[SPEAKER_00]: But here's what they don't tell you.
00:30.585 --> 00:34.355
[SPEAKER_00]: Family is managing 100 million plus, aren't waiting until 65.
00:34.776 --> 00:37.463
[SPEAKER_00]: They're living off cashflow today,
00:37.443 --> 00:39.165
[SPEAKER_00]: while their wealth continues growing.
00:39.506 --> 00:42.129
[SPEAKER_00]: So what if you're like me and don't have 100 million?
00:42.530 --> 00:43.411
[SPEAKER_00]: Can you still do this?
00:43.811 --> 00:46.795
[SPEAKER_00]: That's exactly what I spent 10 years figuring out.
00:47.096 --> 00:54.886
[SPEAKER_00]: I'm Christopher Nelson in a few years ago, my portfolio was 98% in public stocks generating zero cash flow.
00:55.066 --> 01:02.396
[SPEAKER_00]: Today, that same portfolio generates over $200,000 per year in cash flow and is grown by over $2 million.
01:03.177 --> 01:07.382
[SPEAKER_00]: I'm not touching principle.
01:07.362 --> 01:09.245
[SPEAKER_00]: the portfolio just pays me.
01:09.525 --> 01:19.780
[SPEAKER_00]: In this video, I'm going to walk you through the exact three-step process to restructure your portfolio into a cash flow machine even if you're starting with just $1 million.
01:20.441 --> 01:23.766
[SPEAKER_00]: Now, you may be thinking, wait, I have a financial advisor.
01:23.966 --> 01:26.009
[SPEAKER_00]: They've got me in a diversified portfolio.
01:26.229 --> 01:26.950
[SPEAKER_00]: Isn't that enough?
01:27.331 --> 01:28.232
[SPEAKER_00]: Well, here's the thing.
01:28.392 --> 01:29.474
[SPEAKER_00]: Well, two things.
01:29.494 --> 01:35.783
[SPEAKER_00]: First, you aren't actually diversified if more than 50% of your portfolio is in public stocks.
01:35.763 --> 01:39.629
[SPEAKER_00]: And second, traditional advisors only know one playbook.
01:39.889 --> 01:43.695
[SPEAKER_00]: Grow the portfolio and hope that it's big enough when you need it.
01:43.955 --> 01:50.284
[SPEAKER_00]: They measure success by your total portfolio value, not by what that portfolio actually does for you.
01:50.304 --> 01:54.531
[SPEAKER_00]: And don't forget, they get paid whether your portfolio goes up or down.
01:54.711 --> 01:56.954
[SPEAKER_00]: The implicit promise is always the same.
01:57.235 --> 01:59.458
[SPEAKER_00]: If you can just get to 2 million,
01:59.438 --> 02:06.119
[SPEAKER_00]: or wait, no, just 3 million, then maybe 5 million, then you can retire, but here's what happens.
02:06.761 --> 02:10.271
[SPEAKER_00]: The dollar keeps losing value and your lifestyle keeps increasing.
02:10.472 --> 02:12.418
[SPEAKER_00]: The goalpost keeps moving
02:12.668 --> 02:14.412
[SPEAKER_00]: and you just keep working.
02:14.753 --> 02:18.862
[SPEAKER_00]: So let me show you why this doesn't work for somebody with $1 million more.
02:19.103 --> 02:22.290
[SPEAKER_00]: The standard advice is the 4% rule, right?
02:22.651 --> 02:26.499
[SPEAKER_00]: So on a million dollar portfolio, that's $40,000 per year.
02:26.840 --> 02:31.150
[SPEAKER_00]: After taxes, you're looking at maybe $30,000 to $35,000.
02:31.130 --> 02:31.691
[SPEAKER_00]: annually.
02:31.871 --> 02:34.776
[SPEAKER_00]: That's less than you probably made when you started your career.
02:35.136 --> 02:42.607
[SPEAKER_00]: You've worked for decades, you've built a million dollar portfolio and now you're supposed to live on less than you made as a 25 year old.
02:42.868 --> 02:49.037
[SPEAKER_00]: You feel ultimately like you're going backwards and psychologically this creates an enormous weight.
02:49.017 --> 02:52.803
[SPEAKER_00]: You're constantly asking yourself, am I ever going to have enough?
02:52.823 --> 02:53.865
[SPEAKER_00]: Do I need 10 million?
02:53.885 --> 02:54.666
[SPEAKER_00]: 20 million?
02:55.006 --> 02:59.093
[SPEAKER_00]: When can I stop if I want to continue living the same lifestyle?
02:59.433 --> 03:03.900
[SPEAKER_00]: Meanwhile, family offices operate on a completely different philosophy.
03:04.140 --> 03:08.227
[SPEAKER_00]: They focus on income generation, not just portfolio growth.
03:08.487 --> 03:13.755
[SPEAKER_00]: Their portfolio is typically generate somewhere between six to eight percent in cash flow annually.
03:14.056 --> 03:14.797
[SPEAKER_00]: And here's the key.
03:14.917 --> 03:16.780
[SPEAKER_00]: The wealth continues growing
03:16.760 --> 03:19.445
[SPEAKER_00]: while it's continuing to generate that income.
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[SPEAKER_00]: So if you want to start operating your wealth like the ultra wealthy, here's what needs to change.
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[SPEAKER_00]: First, you need to stop measuring success by portfolio value alone and add a second measure.
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[SPEAKER_00]: Cash flow generated.
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[SPEAKER_00]: Think about it.
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[SPEAKER_00]: Your portfolio should work like a business.
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[SPEAKER_00]: A business doesn't just accumulate value.
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[SPEAKER_00]: It generates income while growing its equity.
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[SPEAKER_00]: That's exactly what family offices do.
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[SPEAKER_00]: And today I'm gonna give you the three steps to start transitioning your portfolio.
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[SPEAKER_00]: The portfolio that the ultra wealthy use is called the Evergreen portfolio model.
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[SPEAKER_00]: And before I explain how the Evergreen portfolio model works, let me define a few terms really quick
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[SPEAKER_00]: So they were all in the same page.
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[SPEAKER_00]: A drawdown portfolio is the traditional retirement strategy where you systematically sell off a portion of your accumulated assets each year to fund your living expenses until the portfolio is ultimately depleted.
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[SPEAKER_00]: Now, when evergreen portfolio is a portfolio designed to generate consistent cash flow today,
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[SPEAKER_00]: Now, when you retire, while still growing the principle over time, there are three asset categories that make up the Evergreen portfolio.
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[SPEAKER_00]: The first one is income.
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[SPEAKER_00]: These are investments targeting regular cash distribution.
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[SPEAKER_00]: The examples would be private equity, real estate, credit funds, dividend-focused stocks, income ETFs, or executing your own covered calls or option strategies.
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[SPEAKER_00]: and you can target six to 10 percent returns with your income investments.
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[SPEAKER_00]: The second category is growth.
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[SPEAKER_00]: These are investments targeting long-term capital appreciation.
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[SPEAKER_00]: So for example, public equities, growth stage real estate, venture positions, right?
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[SPEAKER_00]: You want to target 10 to 15 percent returns with your growth investments.
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[SPEAKER_00]: And then finally, there's capital preservation.
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[SPEAKER_00]: These are investments focused on protecting capital and maintaining purchasing power.
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[SPEAKER_00]: So the example here would be Treasury bonds, money market funds, inflation protected securities.
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[SPEAKER_00]: You can target three to four percent returns with your capital preservation allocations.
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[SPEAKER_00]: Now that we're on the same page, let me give you real numbers for my own portfolio.
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[SPEAKER_00]: My current allocations are 47% in growth, 48% in income, and 5% in capital preservation.
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[SPEAKER_00]: And during the time I've been implementing this strategy, I've grown from about six million to around eight million dollars.
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[SPEAKER_00]: So I'm getting paid and building wealth simultaneously.
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[SPEAKER_00]: Now, here's what's important to understand.
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[SPEAKER_00]: I'm not saying you need 50% of your portfolio allocated to income investments.
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[SPEAKER_00]: What I'm saying is that your allocation should match your portfolios goal.
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[SPEAKER_00]: If your portfolio's primary job is replacing active income today,
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[SPEAKER_00]: then you need a heavy income allocation.
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[SPEAKER_00]: I'm talking 60% or more because you need cash flow now.
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[SPEAKER_00]: But if your portfolio's job is funding current lifestyle while building generation wealth, you can balance income and growth, something like I did.
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[SPEAKER_00]: Or if your portfolio's job is compounding for the next generation, because the income pillar already produces more than you need, you can wait growth at 60% or higher.
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[SPEAKER_00]: Now, why might you want to consider this over the traditional drawdown approach?
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[SPEAKER_00]: With the drawdown, you're selling assets, decreasing your principle, and you're exposed to what's called a sequence of return risks.
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[SPEAKER_00]: This means that if the market drops right when you start withdrawing, you're going to be forced to sell at the bottom, and this can be catastrophic when compounded over 10 plus years.
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[SPEAKER_00]: Here's a great example of the sequence of return risks.
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[SPEAKER_00]: Let's say that you retired in 2009 right after the great financial crisis, with a $3 million portfolio, 60% stocks, 40% bonds, and then let's assume that you went with the conventional 4% withdrawal rate.
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[SPEAKER_00]: Your portfolio nearly tripled to $8.9 million while paying you $120 to $306,000 annually for 16 years.
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[SPEAKER_00]: You look like a genius, but if you retired in 2000
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[SPEAKER_00]: Same 4% withdrawal rate, same $3 million portfolio.
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[SPEAKER_00]: At the end of 16 years, your portfolio would be worth only $2.69 million.
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[SPEAKER_00]: Less than when you started.
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[SPEAKER_00]: While your withdrawal rates range from $60,000 to $110,000 per year, and if you add an inflation, that $110,000 a year only had the purchasing power of $70,000 in today's money.
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[SPEAKER_00]: This shows you how important getting luck is with a drawdown portfolio, retire in a good year, genius, retire in a bad year, and you might be going to get another job.
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[SPEAKER_00]: Contrast that with an evergreen portfolio where you keep your assets, you grow your principle, and you get consistent tax advantage income today, regardless of what the stock market does on any given day.
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[SPEAKER_00]: Now, how do you actually implement a portfolio like the ultra wealthy?
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[SPEAKER_00]: There are three steps.
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[SPEAKER_00]: Step one, assess your current allocation.
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[SPEAKER_00]: Look at what you own right now.
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[SPEAKER_00]: What percentages are in growth only assets that produce zero cash flow?
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[SPEAKER_00]: What concentration risk do you have?
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[SPEAKER_00]: For a lot of people, they have more than 50% in company stock or in broad index funds that don't generate income.
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[SPEAKER_00]: And remember, index funds aren't true diversification.
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[SPEAKER_00]: Step two, develop your divestiture strategy.
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[SPEAKER_00]: This is critical.
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[SPEAKER_00]: You don't liquidate everything at once.
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[SPEAKER_00]: tax implications matter here, and when done wrong, could cost you five or even six figures.
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[SPEAKER_00]: I recommend a systematic approach over 12 to 24 months.
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[SPEAKER_00]: Use tax lost harvesting where appropriate.
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[SPEAKER_00]: Take advantage of qualified small business stock exemptions if you have them.
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[SPEAKER_00]: Time yourselves strategically around vesting schedules in income years.
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[SPEAKER_00]: Now, if you have a certified tax planner, this is a conversation you need to be having with them right now.
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[SPEAKER_00]: The goal is to transition without triggering a massive tax bill all at once.
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[SPEAKER_00]: Instead, three is redeploy according to your investment thesis.
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[SPEAKER_00]: Here's where most people get stuck.
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[SPEAKER_00]: As you free up capital, you need to know exactly where it's going.
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[SPEAKER_00]: What percentage goes into
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[SPEAKER_00]: growth investments in capital preservation.
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[SPEAKER_00]: What specific asset classes within each category you want to invest in and what your target cash flow needs to be?
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[SPEAKER_00]: This is what I call your investment thesis.
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[SPEAKER_00]: Your personalized blueprint for how your portfolio should be structured based on your specific goals, timeline, and risk tolerance.
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[SPEAKER_00]: So, without this blueprint, you're just guessing.
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[SPEAKER_00]: You might overalike to income, in sacrifice growth, or chase high yields in risky investments because you don't have clear targets.
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[SPEAKER_00]: This is exactly why I host a monthly library shop where I walk you through, how do you build your investment thesis and create a systematic transition plan to an evergreen portfolio?
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[SPEAKER_00]: If you're at the stage and need that blueprint, register for our next one at welphops.io
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[SPEAKER_00]: or click the link in the description below.
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[SPEAKER_00]: Look, here's the bottom line.
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[SPEAKER_00]: The traditional financial services industry wants you to believe that you need $10 million or $20 million before you can have the lifestyle that you want.
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[SPEAKER_00]: They want you to keep accumulating, keep working, and keep waiting for,
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[SPEAKER_00]: some day.
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[SPEAKER_00]: Meanwhile, families with evergreen portfolios aren't waiting.
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[SPEAKER_00]: They're living well today, while their wealth continues growing without worrying about wind or if they'll need to be able to retire.
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[SPEAKER_00]: And now you know their secret.
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[SPEAKER_00]: It's not about having more money.
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[SPEAKER_00]: It's about structuring what you already have.
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[SPEAKER_00]: differently.
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[SPEAKER_00]: You have everything you need to start this transition right now, whether you have one million dollars or thirty million dollars, the evergreen portfolio framework works at your level.
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[SPEAKER_00]: The question isn't can I do this?
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[SPEAKER_00]: The real question is how much longer am I willing to wait?
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[SPEAKER_00]: Because here's what I know.
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[SPEAKER_00]: Five years from now, you'll either be looking back and saying, I'm so glad that I made this shift or you're going to be asking yourself, when is enough?
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[SPEAKER_00]: going to be enough.
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[SPEAKER_00]: If you're ready to stop operating like the masses and start managing your wealth like the ultra wealthy do, here's your next step.
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[SPEAKER_00]: Join me in my upcoming live workshop where I'll show you exactly how do you build your own micro family office and implement the evergreen portfolio strategy?
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[SPEAKER_00]: And if you want to understand more about micro family offices, then check out this video where I break down the core components and how they operate.
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[SPEAKER_00]: Thanks for watching.
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[SPEAKER_00]: See you in the next one.
