There are three foundations of this the Hierarch of Wealth: Own, Outsource and Outlier

The first foundation, Own, is about wealth that you as an individual directly control. This is your employment or self employment income. This is when you are making money. You have control over this to some extent and it is your efforts that generate the return on the time and energy invested.

The Own foundation funds the Outsource foundation. The Own foundation is cash coming in.

The Outsource foundation is when you have earned and saved money and then are using someone other than yourself to generate more wealth. 

This includes your investments, real estate and when you become the bank and lend money out.

This phase grows the money that you already have and is the second of the two foundations that affect your wealth with the most control.

The third foundation is one where you have very little control. This refers to inheritance.

Whether it is the inheritance that you leave others or someone else leaves you, normally we do not have much certainty as to the timing of exchange in this area of wealth and that is why it is called an outlier.

Armed with this new perspective you can start to use it to your advantage to increase your overall wealth and rethink the actions that you take inside your life that make you wealthier.

Retirement Acceleration Syndrome is when someone expects to retire in the next 5-10 years and every day that goes by, they think about retirement more… more leaving them focused on getting OUT of a job rather than focusing ON their job.

The want to accelerate their retirement plans the closer they get to retirement.

Yes, I made up the term, but it’s a great way to put a name on something that happens. I’ve seen it happen a number of times. 30+ years is a long time to work. I get it. You’ve earned the golden parachute.

You’ve worked hard and climbed the corporate ladder. You’ve been saving all these years even though it was tough, you did it!

You’d rather be golfing in Florida or hanging out in Arizona. Perhaps Mexico is in the cards. This the what the people I know want to do.

Sounds amazing!

Now what?

You need to start to prepare and our four phases backed by four principles are the guideline to building your retirement.

Acknowledge – Clarity is Key

The first phase is to acknowledge that you need help and then you can start the process of designing your future.

You start to design your future by becoming clear about your current situation and what it is that you want out of life.

This stuff is a little much but you have to spend some time thinking about what your retirement would look like in a perfect world. Not the world where if money wasn’t an issue but a world that had meaning and significance and one that would leave you feeling satisfied at the end of most days.

This takes a little dreaming.

Assess – Specificity vs Generality

The next phase is to do a deep dive into your financial situation and assess where you are today and what is required for tomorrow.

Now that you have clarity over what you want out of life, you can start to design a future in which is detailed out. How much money will you require? Where will you live? What emergencies do you want to plan for?

What exactly do you have for assets? What is your income? What is your bonus like? Do you have medical and dental benefits? Will they continue into retirement? Do you have pensions? If you take them early, what will the cash flows be? Who are your beneficiaries?

Be overly detailed and specific.

Action – Fact Based Decisions

Now that you know exactly what is required. You can start to plan for straight line scenarios where not much changes and also some variables.

Now that you’re clear you can cut expenses that don’t bring you true happiness in life. You’re going to have to do some reflecting again here.

Now that you know what type of income you will have and the time frame until you need that cash flow, you can begin to plan out an asset allocation.

How much in bonds? How much in stocks? How much in cash?

Use these details of income to start to figure out how much in bonds. We take the required cash flow per year, factor in inflation and use the present value to come up with the amount we need in bonds. We use a 7-9 year time frame to quantify this lump sum. ***Seek the help of a licensed professional, this is not individual advice and will vary from person to person.

From here the types of stocks and bonds can be derived.

Will you keep two cars or go down to one? Will you downsize and when? Will you move to the cottage full time?

Again – Offense vs Defense

This phase is about making moves. It’s about doing things that move the needle. Things that will slowly, or quickly, make a difference. This also requires a shift in mindset.

You must change the way you think. You must change the way you look at the things that have been in your life for a long time. Figure out if they bring you value and happiness and set your bar high.

The higher the bar, the richer the items and actions you will have in your life.

Have a $15/month expense that doesn’t make you truly happy? Cut it?

On&

Trevor Dale was canvassing the neighborhood and saw some amazing skies with the clouds providing a white marbling amongst the rich blue skies. Trevor talks about a gentleman that is retiring in the next two years.

I met this gentleman who is retiring in two years. He is similar to a number of other clients that I have and would likely have the same questions that they did. You can watch the episode at the bottom of this page or listen to it on iTunes, Spotify, Google Play and Stitcher.

First is how much retirement income he can generate.

Second, how long will it last.

What factors go into this such as returns and volatility.

How do you protect against downturns in the stock market?

I myself have gone from what I call the Develop phase of life to the Dividend phase of life when I started my company. It was about knowing what I had, what I needed and how to generate enough income to support me while I built the business.

One of the things I did was get very clear about what I wanted in life. Was this really what I wanted? It hit ALL of the life desires.

How much did I need? I guaged what others would need and then adjusted for my own circumstances.

I found out what I had in terms of assets and started to prepare them.

I changed my cash flows and budgeting which I should I have done a long time prior.

I cut almost $1,000 per month from expenses and was ruthless on things that didn't bring value into our lives.

It is about focusing on things that matter and bringing richness and certainty into my life.

As I helped myself and my clients prepare for retirement I move forward we came up with a codified system of principles and production that fit each stage of life.

I want you to find one thing that you can do to make a change that brings more meaningfulness and richness into your life. Try cutting something out. It can be extremely liberating.

Until next time,

Trevor

Seriously, I did NOT want to do today. I woke up in a comfortable bed, hugged by the groove I've created by not moving around and can't get the warranty on the bed. So comfortable and I didn't get up. Who would get up when you're that comfortable?

But I digress.

Today I didn't want to get up and get to work. I wanted to lay there and do nothing. 

My kids were moving faster than me and my wife was picking up the slack.

My solution: Take one step. Then another. Then another. 

Where are you not moving forward with your life? Is it going to the eye doctor? Taking the car in to get serviced? Making that appointment to meet with a new financial advisor... ME!

Find the phone number, put it in your calendar and call.

Or better yet, what I want you to do is look us up and reach out if you think we're a good fit. We don't service all people but you never know... we may just be a great fit for each other.

tkdale.com/podcast

I live in a retired neighborhood, most of the lawns are pristine. They look fantastic. They’re green, they’re well manicured, there’s not a lot of weeds. They look good. After it’s rained and you get a nice sunny day afterwards, everything is gorgeous, nice grown-in trees. Our neighbors have been here for 30 years and, like I said, most of them are retired. Well, that is fantastic, until you get to my property.

You see, the problem with my property is that when you get to my property, it looks like no one lives there and barely tries to take care of their lawn. Not to say I don’t take care of it, I cut my grass every week. I fertilize it, I add in some seed. I just don’t care, I would rather outsource this than I would actually do it. It’s a lot of work. I don’t like the winter but I would rather shovel my driveway a couple of times a year, spend maybe a total of five hours over the winter taking care of my driveway and sidewalk. Not a big deal. But here I am in the summer, it’s hot, it’s got to be done weekly whether I want to or not and I’ve got to make sure that I find time to cut my grass and take care of it. I’ve got to weed it, I’ve got so much work I’m almost ready to pave the thing.

I finally got fed up. I said, “you know what, this year I am going to have a fantastic lawn and I am going to go out and make sure that I do what I got to do to make sure that my lawn looks good”. Now, I’m not going to try and compete with these retirees who have been here 30 years and have all the time on their hands and don’t have to work. I get it. And they can do that stuff because that’s how they keep busy and, yes, they are busier in retirement than they were in work. They are keeping busy with all the things that I’m supposed to do that I can’t actually do. So, how am I supposed to keep up with these people?

Great friends, I love them to pieces but look, our lawns look different and there is a reason for it. They take care of their lawns. Now, I decided, “you know what, this year I’m going to go ahead and I’m going to have a good looking lawn.” I went and I ordered myself not one, but four yards of soil. Four yards! You know how big that is? I moved it all myself, I raked my lawn, I got it all together, I put down some seed, I put down topsoil all over the place, topped up the gardens, figured it was fresh, primed, ready to go. I had a week at home and I watered it regularly, stuff started to come up.

I go away for five days to LA and I come back and this thing still looks a little bare. It’s got patches of dirt all over the place that stuff has not started to grow through yet. It’s got weeds that are coming back. And the army of weeds that I am talking about is this.

This army of weeds, it’s got me so fired up, I decided to go and talk about it today. Army of weeds is attacking. It’s not the old-growth because I pulled up a garbage bag full of weeds, I got rid of them all. I figured, yes, I am ahead of the game, finally ahead of the game and I can just sit back and coast. I’m hoping to sit back and just coast for a couple of weeks and maybe just water my lawn and cut it because it’s growing so well because it ‘s got all the nutrients that it needs and it’s got a lot of water. I figured, hey, it’s going to be fantastic. Well, here it is, all these new weeds are coming up and it is just bugging me like crazy. As I realize that one of my previous podcasts I did, the grass is not greener on the other side, it is greener where you tend to it. I realized, even though I think I’ve got a home free of weeds, that I can just sit back and relax. What I actually need to do is go and weed my lawn again even though I just spent almost two days doing it. It’s frustrating.
The lesson learned is constantly putting in consistent work. If you’re not putting in consistent work, I’m not going to get the results. If I do it, perfect. I’ll get the results and it shows. I’ve done that inside running, I’ve done it inside

I came across a guy and I'm sure he's a fraud. Things just didn't add up. When I thought about it I finally was able to understand the business but promising people a 2,430% return just can't make sense to me. I don't buy it and in this episode I talk about my interaction with him.
The lesson is to do your due diligence and trust your gut.
Reach out if you have any questions.

Host Trevor Dale, founder of TK Dale Wealth Management talks about how he is working ON his business this week rather than IN his business.

We all have "jobs" to do even if it's your own company or even your own family. We get to work, we do what we need to do and then we go home. 

Same thing at home. We drop off the kids, we work, pick up the kids, dinner, evening activities, Netflix and then bed.

But at what point do you take a step back and reinvent and make big moves inside your business or family?

If your financial plan is just a statement of what you have and what you will get if nothing changes then it is not a financial plan. There is no planning and therefore no execution. GO ON THE OFFENSE.

Work ON the business or family. In this episode Trevor talks about how he's doing this inside his business and family.

Host Trevor Dale, founder of TK Dale Wealth Management talks about how crucial it is for YOU to do the work. Sure you're hiring us but it is YOU that we ask to do work.
From Trevor:
It all started this morning when my alarm went off at 3am. I have a flight later this morning and it would have been easy to say that today is a special day and that I don't have to get up for my morning workout.
Sure I could say that today is an easy day, but that wouldn't be in the spirit of striving for excellence. How can I become and stay elite if I constantly take the easy route. What I consider hard today is easy tomorrow.
So up at 3am I got, went for an 8km run and walked another 2km. Meditated. Wrote notes to my family to say how proud I was of them. Off to work I went. Working in the airport until it was time to board the plane.
Why am I telling you this? Because next time my firm asks you to do a personality test, no matter how stupid or not important you deem it to be, it is a small thing that has a large impact on constructing your Wealth Plan and your Estate Planner.
So get after the work and know that I'm right by you every step of the way.

Trevor Dale, Founder of TK Dale Wealth Management talks about how gaining new wealth can be scary. Like climbing mountains, the higher you get, the more fear tries to eat at you.

When you have $1,000,000 and lose 10%, you lose $100,000. It hurts and the raw numbers sound big. You've worked hard for that money and you want to keep it so that you don't have to worry about your money.

Now if you had $1,000 and lose 10% then you would only be losing $100 and most people will say that they can cut expenses or just work more to make up that money.

Either way, it is 10% but it is your view on money that determines what you do in each scenario.

Taking a defensive approach to this scenario would cause you to sit back and do nothing or even worse, sell.

Taking an offense approach causes people to look to utilize this down turn.

If your investing thesis is still in tact based on fundamental and economic analysis then I would have you consider that it is time to invest more and be active in achieving your goals. You want to go on the offense.

Looking at money like a tool rather than a limited resource is a different way of thinking. Money is something that can be created and destroyed. You have the ability to create more and even if it isn't in your current job there are still many other things you can do.

If your investment thesis is still in tact then buy more. Try and go on the offense and stop worrying. Look at ways to grow when everyone else is scared. 

Fear is something that we all have and it is how you react to it that makes the difference. 

So start your training now and prepare for the next time you get scared. Have it in your mind how you will act and do your best to go on the offense.

After all... a the best defense is a good offense.

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The podcast is available on our website tkdale.com, iTunes, Spotify, Google Play and Stitcher.

May was a spicy month in the market but that's okay. Host Trevor Dale, founder of TK Dale Wealth, talks about the monthly newsletter. 

He takes you through the market review, the new exciting structure for our clients and the monthly wealth tip.