The 3 Layer Wealth Defense Strategy

Episode Transcript:  

  I've worked with countless high net worth investors, and I can tell you this wealth that endures doesn't just grow it defends. Today we're gonna unpack the three layer wealth defense strategy I see used by most and implement even with my own family today. Let's get ready to scale.

Hey guys, my name is Jeannette Friedrich and I'm the director of investor Relations here at Blue Lake Capital, where we partner. With numerous high net worth individuals, and I have a great opportunity to learn from them. So today I wanna talk to you about how I see people defend their wealth. For starters, let me ask you something that most financial advisors wouldn't, which is if the market suddenly shifted and dropped by 30%, would your lifestyle be impacted?

Would your legacy. Well, today I'm going to share the exact three layer strategy that I have now begun to teach even my own family about how to protect what we've built from volatility, from taxes, and from mistimed decisions in the market. It's simple, but it's really not simplistic, and once you see it, you won't be able to unsee it.

Okay, so you don't need another flash flashy investment idea. What you really need is a structure that lets you move calmly when others are panicking, that lets you take advantage of opportunities when they arise, and a way to pass wealth forward without giving half of it to the IRS. This is especially critical if you are right past the wealth accumulation stage or getting near it.

Okay, because defense is what preserves, optionality, lifestyle and ultimately your legacy. So let's get into it. Layer number one is operating cash. This is essentially your baseline or what some would call your emergency savings, where you wanna typically have six to 12 months of expenses covered in the event that something goes wrong, even if you have a net worth of $10 million at.

Still wise to do this because the reality is that access is more important right now even than returns in exactly a market like this. You don't wanna have to be liquidating assets to cover obligations or triggering some kind of tax event because you're desperate. Now, layer number two is passive income.

This is where real wealth starts to actually work for you. This can include stabilized multifamily assets, preferred equity, cash flowing private credit, or any type of dividend paying alternative. With real tax efficiency. Now, this is the key. You're not just earning income, but you're reducing your taxable exposure.

That's critical. For example, I actually work with one investor who earns six, six figures a year just from being in depreciation, shielded income through his real estate syndications. He's not chasing huge exits. He's compounding it quietly, tax efficiently. And consistently. Now, layer number three is a liquidity buffer.

This is where the flexibility lives. Now, liquidity buffer is capital that you have absolutely earmarked for opportunity, not for daily expenses, not for emergencies. It's your dry powder for when the market has mispriced, some type of risk for when some type of legacy asset comes up, or when a capital call is offering better than market preferred return.

Think of this as basically your vault. It's a very untouched but very powerful strategy that you wanna be able to use when the moment is right. And here's the key. This layer lets you act without disturbing the other two layers. That's how the wealthy stay liquid and conservatively leveraged without being cornered.

So if you're relying on a single layer, rather it's stocks, real estate, or all cash, either way, you're exposed. When all three are actually working together, then you are building financial resilience. It's not flashy, it's not loud, but it is incredibly effective. So if you've been feeling uncertain about where to allocate capital next, or whether your portfolio is actually structured for the long haul.

I recommend you start here because defense is not about hiding. It's about creating the freedom to act with confidence, and I know that's what I want for my family and I hope that's what you want for yours. I hope you guys found this helpful and I'll see you on the next episode. I. Ready to Scale is brought to you by Blue Lake Capital, where we hunt down the best multifamily investment opportunities that we can find and invite investors to join in with us.

We target class B value add multifamily properties across the Sunbelt. Our CEO Ellie Pearlman, invest a substantial amount of capital into every deal. This means our interests are aligned with yours. If you're an accredited investor looking to expand your portfolio and diversify sponsors, be sure to visit us@bluelakecapital.com.

Blue Lake Capital, be bold, be extraordinary, and keep moving forward.