We like to ask our audience, what is your biggest challenge with building wealth, and we receive so many insightful questions. Today, we’re answering a question from Matt about how to create a balanced wealth portfolio. 

https://www.youtube.com/watch?v=zZztP3WOhF4

So if you want to make sure you’re thinking through all the pieces of your financial plan and doing the best you can with your money for today and for the future, tune in now!

Table of contentsAnswering a Viewer QuestionStarting with “Why”Having Cash for Emergencies and OpportunitiesMindset Matters for a Balanced Wealth PortfolioFixing Money LeaksAsset ProtectionYour Financial PictureThe Right Financial Vehicles for a Balanced Wealth PortfolioBook A Strategy Call

Answering a Viewer Question

We love when our audience asks questions, and we often answer them live in our recordings. However, we recently received a question from a viewer named Matt, and we thought it was a wonderful opportunity to dig into the topic more thoroughly. 

Matt asked, “How [do I] create a balanced wealth portfolio that includes a mixture of short, mid- and long-term savings for now and the future?  

[I’m] weighing between

Backdoor Roth (for someone that has been funding a Roth for 20yrs)401k....where to stop....do you fund just to your match? Or what’s the income level where a couple loses the tax advantage of FULLY funding (I was always taught, get to a point where you can fully max for tax savings... but now I’m not sure)Independent stock investing in a basic brokerage accountWhole life Cash Flow accounts (when does it make sense to [add] this into one’s investment strategy).”

If you’ve been thinking about how to do the best that you can with your money, this is the post for you. 

Starting with “Why”

Financial advice is not one-size-fits-all… although it’s often talked about as though it is. The reason it isn't is because everyone has a different set of goals, as well as different financial histories. That's why it is so important to understand your “why" when building a balanced wealth portfolio. What are you saving for, and why do you want to optimize your money? In other words, what is the purpose of your money?

Retirement is one of the most frequent savings benchmarks, yet it’s an incomplete goal. Retirement means different things to different people. The FIRE movement seeks to “retire” at 40, but most of them only retire from a job they don’t like. They continue to work in other capacities—filming videos, writing blogs, and managing investments. The underlying reality is the importance of finding fulfilling work, and creating enough cash flow to enjoy life in the moment rather than a future date. 

To other people, retirement means quitting work completely at the age of 65 or so. However, life expectancy is beyond age 100. That means that many people need to save enough money over 40 years of working to retire for another 40 years. That can be a challenging accomplishment.

The answer for many is somewhere in the middle. Finding work that is fulfilling (and constantly reevaluating that fulfillment), optimizing your dollars for more freedom, having more control, and creating more opportunities.

Some people may have entirely different goals. Therefore it's crucial to ask yourself—What is the purpose of your money?

That purpose could be:

Freedom to spend your time and money how you wantPutting your children through school or funding their passionsTravelling more now, rather than later 

The clearer you get on the purpose of your money, the easier it will be to tailor your portfolio to YOUR wants and your current financial picture

Having Cash for Emergencies and Opportunities

When we hear concern about having short, medium, and long-term financial success, what we hear is a desire for an emergency and opportunity fund. To have cash on hand for unexpected costs like car or home repairs,