Strategies For Wealth Accumulation

You've probably seen this stat making the rounds. Jerry Buss's $67M investment in the Lakers grew to $10B, but the S&P 500 would have theoretically yielded $13B over the same time period. At first glance, it seems like a misstep. But this is a classic apples-to-oranges comparison that misses the bigger picture of true wealth creation. It's the kind of surface-level analysis we help our clients see past. Here's what the simple math ignores: 1. Annual Cash Flow Opportunities: The Lakers weren't just a number on a screen; they were a cash-generating machine. The annual income from tickets, media rights, and sponsorships likely dwarfed any dividend from an index fund. That's money in your pocket, not just on paper. 2. Tax Advantages: Every business owner knows the power of deductions. From player salaries to stadium maintenance, the tax advantages of owning an asset like the Lakers are immense—benefits an S&P 500 investment simply can't offer. 3. The Legacy Asset: You can't teach your kids life skills by showing them a brokerage statement. The Buss family didn't just inherit stock; they inherited an empire, an identity, and the ability to handle executive-level responsibilities. That's a legacy. 4. The Next Venture: Selling the team wasn't the end. It's the beginning of the next chapter, unlocking billions in capital to deploy into new ventures, charities, or family projects with complete control. The S&P 500 is a fantastic tool for investing. But for building a multi-generational legacy and creating strategic wealth? Ownership is, and always will be, in a league of its own. For business owners, the best investment may very well be back into your own company. You need a financial strategy that enhances that growth, not one that fights it. If you want to work with an advisor who understands that your business is the engine, not the piggy bank, send me a direct message. Let's build a plan that fits reality. #FinancialPlanning #BusinessOwner #LegacyPlanning #TaxStrategy P.S. I believe there's a lot more to unpack here. I'm considering writing a full article detailing the nuances of ownership vs. market indexing. If that's a breakdown you'd like to see, just comment below.

Breaking generational financial patterns isn't just about earning more, it requires fundamentally different thinking about money, time, and opportunity. After years of working with professionals who've built seven-figure net worths from modest beginnings, here's my advice on five key mindset shifts: 1. Master a high-income skill: Focus on building high-income skills that can pay you well monthly in any economy. Become irreplaceable by offering value that's in high demand. 2. Stack multiple income streams instead of just chasing raises: Don't just climb the career ladder. Create several ways to make money at once. Multiple smaller income sources often provide more security than one big paycheck. 3. Live like you're broke while building wealth: Keep your spending low even when your income grows. The gap between what you earn and what you spend is where wealth is built. This discipline creates the foundation for serious investment growth. 4. Network like your life depends on it: Your network equals your net worth. Build relationships across different industries and groups. Remember: opportunities flow through people. Give value first and focus on connections that can open doors. 5. Take calculated risks for investment: Make decisions thinking 5-10 years ahead while others focus on next month. Significant wealth comes from strategic risks that might cost you in the short term but pay off enormously later. The biggest difference? Think in decades, not days. While most chase quick wins, build for the long term. Becoming your family's first millionaire isn't just about money, it's about breaking old patterns and creating new ones that may feel uncomfortable at first but lead to lasting change. Check out my newsletter for more insights here: https://lnkd.in/ei_uQjju #executiverecruiter #eliterecruiter #jobmarket2025 #profoliosai #resume #jobstrategy #wealthbuilding #financialindependence

Having the Home Mortgage Paid Off Before Retirement: A Very Risky Myth   Over 30 years ago, Pat signed notified his company of his retirement. An officer of a Fortune 500 company, a CPA, and my former boss, he hired me to perform a check-up of his financial plan as he and Joyce prepared for this milestone. My analysis was not what they expected.   During his 40 year-career, they had acquired beautiful homes in toney Rumson, NJ, and Florida. When he announced his retirement, he cashed in some company stock to pay off the mortgages—before meeting with me.   “I have bad news and good news,” I said at their planning meeting. “You don’t have enough wealth to retire.” Stunned, Pat said, “I just signed my retirement papers!”   “I have good news, though,” I told them. “Just take out those two mortgages again, and you’ll be fine.”   They did. They have been fine for over 30 years.   It pays to “run the numbers” or perform calculations when making financial decisions. Most don’t. Most must work longer or have less in retirement. This is why people run out of money in retirement.   Morey, a retired CEO and his wife Ann were turning 80. What should have been joyful years were now years dreading the future. They had used up a lot of their retirement accounts. They were in what I call “survival mode:” Cutting back on travel, gifts to grandkids, entertainment, and keeping up their beautiful NYC apartment.   They came to me.   They had no mortgage on their apartment. We got an interest-only mortgage and invested the proceeds.    They returned to their former lifestyle, for the rest of their lives.   Accelerating or paying off your home mortgage may not be a smart decision if you want to build retirement assets quickly and decrease cash-flow risk in your retirement years.   Instead of paying debt early, save that money in 401(k)s, pensions, IRAs, and investment accounts. Take advantage of compounding, save income taxes and wind up with more wealth.   And if this strategy builds wealth that well while you’re working, keep the mortgage—and keep building wealth in retirement!   But you can mortgage your house later or sell it—right? Or maybe get a reverse mortgage.   Banks will not lend to those with little cash flow. Reverse mortgages can be expensive. Having to sell is not a great option.   Having a mortgage during your working years and into retirement may help you: ·  Keep your “equity” working to build more wealth and cash flow. ·  Avoid being real estate rich but cash poor. ·  Pay less in income taxes.   I helped to start CakeClub™ to educate you to always make the best financial choices like these.   Be one of those that proudly state they still have a sizable mortgage in retirement. Your savvy friends will recognize a smart financial decision.   Follow me at Al@AlZdenek.com and CakeClub™ at www.CakeClubapp.com for my experiences and stories over my career. Help me help others achieve their dreams and live the life they want, now! Please repost. Thank you!

How to Achieve Guaranteed Failure as an Investor: While everybody talks about wanting to be successful, I want to take Charlie Munger's approach of "inverting" in this post. Failure is the Inversion of Success. The necessary condition to being successful is to not be a failure. Especially when it comes to investing and smartly managing your money, knowing how not to fail can also help with risk management Below are the 7 personality types that guarantee failure. [I have also been complicit in exhibiting these traits in all honesty]: 1. Impatient Ishan – Ishan wants quick returns and jumps from one investment to another, chasing the next hot trend, unable to see the long-term picture. Lesson: Real wealth compounds slowly. Patience is the most profitable investing trait. 2. Greedy Gaurav – Always chasing the highest returns, Gaurav's constant desire for more money causes him to take unnecessary risks which can inevitably blow up his portfolio. Lesson: as Morgan Housel says, the hardest financial skill is getting the goalpost to stop moving. Recognize when enough is enough. 3. Egoistic Esha – Esha believess he's smarter than everyone else and refuses to acknowledge her mistakes, doubling down even when he's clearly wrong. Lesson: Great investors admit mistakes quickly, learn from them, and move on without ego. 4. FOMO Farhan – many people invest in certain stocks because everyone else is doing it. They consistently buy at the peak and panic-sells at the bottom. Lesson: Emotional investing rarely pays off. Discipline beats Intellect. EQ > IQ 5. Single-Source Sameer – Sameer depends majorly on stock market returns as his sole source of income. He's vulnerable to downturns and lacks the financial resilience to withstand market downturns. Lesson: Financial security requires diversification, not just within investments but also across income sources. 6. Pessimistic Priya – Priya buys too much into market headlines and is waiting for the next crash. She misses out on long-term compounding while holding cash forever. Lesson: Optimism is the default mode for successful long-term investing. You must believe in human progress, not doom. 7. Recency-Biased Rahul – investors like Rahul assume recent market trends will continue indefinitely. They extrapolate short-term returns into forever and ignore market cycles. Lesson: never assume that recent results predict the future. Avoid being these 7 personality types, and you will significantly enhance your odds of becoming a successful investor. PS - the names taken here are totally random and not meant to be targeted at anybody. This picture was taken in 2022 when I had the lifetime opportunity to meet with Will Danoff of Fidelity, the world's biggest fund manager. He has especially focused his investment career on avoiding behavioural blunders. #InvestmentStrategy #PsychologyOfMoney #PersonalFinance #StockMarket #FinancialLiteracy #LongTermInvesting #EmotionOfInvesting

With market volatility surging, #recession talk is everywhere. If you’re checking your portfolio or retirement account, it’s easy to feel uneasy. But while economists aren’t calling a recession a certainty, the odds are climbing—estimates range from 20% to 50%.   So what should investors do? Stay strategic, not emotional.   ✅ Build Cash Reserves – A strong emergency fund is crucial in case of job loss. ✅ Pay Down Debt – Reducing liabilities now can ease financial strain later. ✅ Adopt a Defensive Investment Strategy – Consider diversifying into sectors like consumer staples and utilities, which tend to be more resilient. ✅ Ignore the Noise – Markets will react to policy swings, tariff news, and economic headlines, but basing your investment decisions on short-term speculation is a losing game.   Be long-term, be boring, and don’t panic. Successful investors focus on fundamentals, not fear.

Chart of the week: RMDs tend to increase as you age, potentially exposing you to higher tax brackets   If you’re saving for retirement in a tax-deferred 401(k) and/or IRA, you’re required to start withdrawing money from those accounts (whether you need the money or not) at age 73 (or 75 if you were born in 1960 or later). Those required minimum distributions (RMDs) can push you into a higher tax bracket, especially if you’ve saved significant amounts in those tax-deferred accounts.   The chart illustrates this hypothetical example: Say you're 73 years old, single, and you had $6 million in tax-deferred retirement savings at the end of 2024. Your RMD would be more than $226,000 in 2025—and that amount could rise as the RMD distribution rate rises (as it does each year, based on your age) and if the investments in the account continue to grow after accounting for distributions. Combine that taxable RMD with other income like capital gains, dividends, interest, or Social Security benefits (of which up to 85% could be taxable), and you may land in a higher tax bracket. (Important notes: The chart assumes a 6% average annual portfolio return, and the tax brackets are based on federal tax rates as of 07/01/2025 and increase 2% annually to account for inflation.)   We provide ideas (see link in comments), At least three strategies, and likely more, can help remedy this. 1. Roth 401(k) contributions: If you're still working, you might consider switching from pretax 401(k) contributions to after-tax Roth 401(k) contributions, since Roths aren't subject to RMDs.   2. Roth IRA conversions: If Roth contributions aren't an option—or if you want to shift even more of your savings into a Roth—you could convert some of your tax-deferred 401(k) or IRA funds to a Roth account.   3. Early retirement withdrawals: Once you reach age 59½, you can make penalty-free withdrawals from your tax-deferred accounts. Doing so will result in ordinary income taxes on the withdrawals, but the money could then be invested in a taxable account for future potential growth. See more ideas in the article linked in the comments.   #TaxPlanning #RetirementPlanning #WealthManagement

How I’d Build Wealth Differently, If I Were Starting Over If I could rewind 20 years and start fresh, Here’s exactly what I’d do to build wealth more intelligently: 1. Invest in Myself First. I’d focus on learning high-value skills like sales, leadership, and personal finance before chasing investments or promotions. 2. Build a Tax Strategy Immediately. I’d work with a CPA or strategist to ensure I kept more of what I earned instead of giving it away to taxes unnecessarily. 3. Prioritize Time Over Money. I’d invest in systems and tools to free up my time so I could focus on relationships, health, and bigger opportunities. 4. Network with Intent. I’d join mastermind groups, attend industry events, and actively build relationships with people who are where I want to be. 5. Seek Expert Guidance Sooner. I wouldn’t wait to work with advisors who understand tax planning, investing, and legacy building. For years, I thought earning more was the key—until I realized keeping and growing my money was the real game-changer. Avoid these mistakes, and you’ll level up your finances faster than you thought possible. Ready to create a plan to keep more, and grow your wealth? Let’s talk.

Stop trying to make a radical change. Instead, focus on small, consistent financial habits. Sound easy, right? Wrong. Most high-earners overlook the power of simple habits. Why? ↳ You underestimate how much you lose to taxes and unplanned spending. ↳ You’re investing but not sure if it’s actually moving you closer to freedom. ↳ You expect big moves to fix everything, ignoring small, proven steps. That makes you think you need a drastic shift... But that’s not sustainable. Here’s how to build wealth with small, strategic habits: 1. Start with what matters most. ↳ Set clear financial goals that fit your lifestyle. ↳ Focus on reducing taxes, growing investments, and protecting assets. 2. Create a simple, repeatable plan. ↳ Automate savings, tax strategies, and investment reviews. ↳ Align your financial system with your career demands. 3. Track what matters. ↳ Measure progress with net worth, investment returns, and tax savings. ↳ Adjust regularly to keep moving forward. 4. Build gradually, not all at once. ↳ Improve one financial habit at a time, then layer on more. ↳ Don’t chase trends. Stick to what works for you. 5. Stay consistent. ↳ Wealth isn’t built overnight. It’s built daily. ↳ Small, strategic habits make financial freedom inevitable. Once you commit to consistent financial habits, you become ↳ More strategic with your wealth ↳ More in control of your future ↳ More financially independent Because building wealth isn’t about doing more. It’s about doing better. ♻️ Found this helpful? Repost to help others! Follow Anthony Williams, CFP® for more. 

You're Making Money in Real Estate—But Are You Keeping It? 💰🏡 Most real estate investors focus on the big numbers—acquisition price, cap rates, and cash flow. But here’s the real truth: the small tax mistakes often silently eat away at your returns. Here are some of the most common tax pitfalls I’ve seen investors make (and that I’ve learned to avoid): 1️⃣ Missing investment income: Reinvested dividends and interest are taxable. Forget to report? The IRS will remind you—with penalties. 2️⃣ Selling too soon: Selling too soon triggers short-term gains and higher taxes. Holding longer can cut your tax rate. 3️⃣ Poor recordkeeping: You think you will remember that expense in two years? Without records, you will overpay in taxes—guaranteed. 4️⃣ Forgetting losses: Real estate is not always profit. Sold at a loss? Offset gains and reduce income—if you report it. 5️⃣ Waiting too long to strategize: Wait until tax season? Too late. Tax planning is a year-round game, especially in real estate. 6️⃣ Missing tax breaks: Many investors miss legal deductions like mortgage interest and depreciation, leaving thousands on the table. 7️⃣ Forgetting deadlines: Some tax-saving moves must happen before Dec 31, others by tax filing. Know the deadlines or lose out. The bottom line: Real estate is an incredible wealth-building tool—but taxes can either accelerate your growth or drag you down. 🚀 I am not a tax expert, so this post is for educational purposes only, but I’d be happy to chat and share what I’ve learned. I also encourage everyone to consult a professional tax advisor, as every investor’s situation differs. Let’s connect. ♻️ Repost if this was helpful to you and could benefit someone else. 🔔 Follow Raheel Khawaja for daily tips on mindset, money, growth, and real estate — level up your life, one insight at a time.

I was building wealth solo—and it almost backfired. You see, I did everything “right” after college… ✅ Landed a great job at Ernst & Young ✅ Saved diligently ✅ Started investing in a 401(k) But I still felt like I was missing something. Here are 5 risks I faced on my wealth-building journey—and how I overcame them: 🔻 RISK #1: Idle Savings I thought saving was enough. My money sat in a low-interest account while inflation ate away at its value. ✅ SOLUTION: I pushed past my fear and started learning. While working in accounting, I educated myself on pre-tax/post-tax investing—and started with a 401(k). It was my first leap. 🔻 RISK #2: Unused Distributions Even after I started investing, my dividends and mutual fund distributions just...sat there. ✅ SOLUTION: I discovered dividend reinvestment and the concept of “dividend aristocrats.” I let compounding do its magic. 🔻 RISK #3: Tax Drain As my income grew, so did my tax burden. Uncle Sam took a bigger bite each year. ✅ SOLUTION: I tapped into my tax accounting background and began investing in multifamily real estate. I discovered how real estate can grow wealth and offer tax advantages. 🔻 RISK #4: Asset Oversaturation My portfolio became too heavy in one asset class—apartment complexes. ✅ SOLUTION: I learned to diversify across asset types: self-storage, mobile home parks, hospitality, and beyond. 🔻 RISK #5: Real Estate Cycles The economy doesn’t stand still. Real estate has cycles—and that means risk. ✅ SOLUTION: I began exploring non-cyclical alternatives to protect and grow my family’s wealth during downturns. Then something clicked... 💡 Most of my high-income peers—tech leaders, finance pros, engineers—had never heard of these strategies. So I founded SAMO Financial LLC to help others learn what I wish I’d known sooner: You don’t need to go it alone. And you can build lasting wealth outside of Wall Street. 🟦 Curious how to turn earned income into passive income streams? 🟦 Want your money to work harder than you do? Post "Let’s talk" in the comments. I coach professionals through this exact journey—no jargon, no pressure, just clarity. What’s the biggest obstacle holding you back from diversifying outside the stock market?