EP278: Business Owners: You’re (Probably) Won’t Achieve the American Dream

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Did you know that reaching the “American Dream” now comes with a price tag of $4.4 million? Yeah, let that sink in. Data shows that most career incomes won’t get you close to that number. But here’s the thing: with the right strategy, you can change your trajectory and live life on *your* terms.

In today’s post, I’ll show you how to build real, lasting wealth—not just enough to get by, but enough to live the life you want and leave a legacy. And at the very end, I’ll reveal two powerful levers that can take your wealth to the next level.

So, What Exactly Is the “American Dream”?

In today’s world, the American Dream isn’t just about owning a home and having a stable job. It’s about financial independence, an elevated lifestyle, and even building generational wealth. Yet, with the cost of living constantly on the rise, that dream has become expensive—*very* expensive.

Here’s what makes up that $4.4 million goal:

Retirement: $1.6 million
Vehicles: $811,000 over a lifetime
Wedding: $44,000
Raising two kids, including college: $832,000
Homeownership: $930,000
Pets: $37,000
Annual vacation: $179,000
Funeral expenses: $8,500

And here’s the kicker—this budget doesn’t even cover helping extended family, supporting aging parents, or pursuing big passions. So, how do we reach this lofty goal? Let’s get into it.

The Perpetual Wealth Strategy

The truth is, relying solely on your career income isn’t likely to get you to $4.4 million. If you’re trying to achieve the American Dream by trading your time for money, you’ll likely end up exhausted—and short on cash.

The solution?

Unearned income.

Imagine planting seeds that grow into money trees, producing a steady harvest year after year. This is what unearned income, or passive income, is all about. And the best part? It doesn’t rely on your time or effort.

Why Passive Income Works: Compound Interest

When you let your money work for you through investments, it grows exponentially, thanks to the magic of compounding. Every dollar you invest has the potential to grow faster than you could imagine. It’s about finding investments with the right returns that’ll build your wealth over time.

Let me introduce you to a quick trick called the **Rule of 72**. Want to know how long it’ll take to double your money? Divide 72 by your annual interest rate. For instance, an investment at 3% would take 24 years to double, but with a 24% return, it would double in just 3 years. Now imagine the growth if you could make 24% or more on your investments!

Real-Life Example: Multifamily Real Estate

Let’s look at a real-world example. In 2020, we purchased a multifamily property in Fort Worth, Texas. In just 20 months, our investors saw a 150% return, an average annual return of 90%. That’s compounding in action! And no, past performance doesn’t guarantee future results, but it does show the power of the right strategy.

The Two Big Levers for Wealth Building

1️⃣ Inflation

Inflation isn’t always the enemy. Sure, it drives up prices, but when you’re a producer of value—like owning multifamily real estate—it works in your favor. Real estate typically appreciates faster than inflation, meaning it becomes more valuable over time, providing a natural hedge.

2️⃣ Tax Optimization

Taxes can feel like a heavy burden, but did you know the government *wants* you to save on taxes if you’re doing things that benefit society? For example, by investing in affordable housing, you’re not only meeting a societal need, but you’re also benefiting from significant tax breaks. In just six years, our multifamily investments have generated over $90 million in tax savings for our investors!

Your Path to the American Dream

With the Perpetual Wealth Strategy and these two powerful levers—*inflation* and *tax optimization*—you can build real wealth and get closer to that American Dream. And remember, if your current strategy isn’t bringing you closer to your financial goals, it may be time to reassess.

This journey isn’t just about hitting a number—it’s about living the life you deserve, with a strategy that grows your wealth steadily and securely. Let’s make that dream a reality. Here’s to building a life and legacy you’re proud of!

P.S. We have another in-depth video for business owner and high-net-worth individuals with at least $1 million in investable assets who want to accelerate their wealth growth make sure to check it out!