business decisions. I applied these 4 principles and have at least 9 months of expenses set aside and then divided asset allocation into 45/55 (45% at non-real estate related investments, 55% in real estate investment), and add Asset protect along way. I called it 4 Wealth Builder Pillars. 4 Wealth Builder Pillars: • Emergency Funds: • Percentage/Amount: 6-9 months of income • Importance Explanation: Critical for emergencies • Examples of Events: Interest hike, Illness, home repairs, etc • Resulting Benefits: Stress relief for the family • Diversification • Percentage: 40-50% (non-real estate related) • Importance Explanation: Spread across assets to mitigate risk • Examples of Events: Stocks, Bonds, Real Estates, Commodities • Resulting Benefits :Risk mitigation, enhanced returns • Asset Allocation: • Percentage/Amount: 50-60% (Real Estate related) • Importance Explanation: Aligns with objectives & risk appetite • Examples of Events: Aggressive allocation for younger investors VS conservative for those near retirement • Resulting Benefits: Optimize returns while managing risk
• Asset Protection: • Percentage/Amount: Strategies in place
17
Powered by FlippingBook