Summary Chapter 1~13 [6:17:12]
Low cost market-mimicking index funds to out perform 96% of mutual funds and hedge funds
Save 3% fees from mutual funds overhead. Save 80~90%
Broker vs. Fiduciary (unbiased transparent advice, tax deductible)
Like butcher vs. dietician
Roth 401K – pay tax today instead of later
TDF – expensive and volatile (use Vanguard if must)
Annuities – guaranteed lifetime income stream
Structured notes, Cds – Upside without downsides. get 8% average gain. No risk [6:05]
- Structured note – a loan to a bank
- very safe
- downside protection, get a percentage of the upside
- or take some of the downside and get more than 100% of upside
- Can only access via the right fiduciary
- Canadian banks have the strongest financials
1 million seconds ago is 12 days ago
1 billion seconds ago is 32 years ago
1 trillion seconds ago is 32 thousand years ago
certainty
uncertainty / variety
love and connection
give
lifestyle
significance
Money is a game of emotions.
Clarity is power. Your brain will figure out how to reach your goal.
I’m certain, I promise myself I’ll get there.
My dream: $10 million
Short, Medium, Long Term Goals
Financial Security (About $720,000 in savings needed to generate this)
- All these paid for forever
- house $2000
- utilities $100
- food $400
- transportation $300
- insurance $200
Total monthly is $3000
Total annual is $36,000
Save up at least 6 months of your monthly expenses as your protection/emergency fund ($18,000) Done
Financial Vitality (About $840,000 in savings needed to generate this)
- Clothing $200/month
- Entertainment (parties, tickets to things) $200
- Going out for dinner (10 times a month) $250
- Gym membership, spas, massages, golf membership $350
Have half of this covered is $1000/2 = $500
Total annual is $6,000, or $12K to cover it in full
So accumulative annual is $42,000
Financial Independence (About $1MM in savings needed to generate this, $3MM for me, Mom, and Dad)
- No need to work
- Money works for you. You are the master of it.
- Work only if you want to
Your annual living costs including taxes
About $50,000
For me, Mom, and Dad, we’ll need approximately 3 times, so $150,000 annually
Multiply your annual by 20x (assuming 5% return assumption)
Financial Freedom (About $8MM in savings needed to generate this)
- Have a good life style
- 2 or 3 significant luxuries
- Can contribute to community too
Travel first class 3 times a year $30,000
Own 3 homes $120,000 mortgage a year
Can contribute to Mom and Dad’s living (mine x 3) $150,000
Donate annually to alopecia community $10,000
Rent a wave machine $10,000
Rent a flying over Canada machine $20,000
Other fancy adventures or toys $10,000
$350,000 a year
So accumulative annual is $400,000 per year
Absolute Financial Freedom (About $15MM in savings needed to generate this)
- Build an adult theme park (or own a portion of it!) $150,000
- Build and maintain a dream house $100,000
- Donate significantly so that has impact $100,000
So accumulative annual is $750,000 per year
What have I concurred and realized? Once seemed difficult but not anymore?
- Confidence over alopecia!!
- Monthly income of $20,000!!
Unleash your hunger and desire.
Focus on your desire with laser-like intensity
You win the game of life by living on your own terms, as fully and for as long as you can!