00:03:53.100Of the half a billion net worth that he has today, how much of it came from his exit?
00:03:58.160How much of it came from the investment compounding?
00:04:01.620Probably about 400 of it came from his business, either through earnings or his exit that he had.
00:04:07.760And over 100 million of it came from earnings on his investments over time.
00:04:12.040Because obviously a lot of it happened later with his exit.
00:04:14.460But the point is, is that he always, always invested the same dollar amount every single time, whether he was worth $5 million, $10 million, $25 million, just as dollars, dollars, not the same percentage.
00:04:29.420He just, he was like, in his mind, as it got older, as he got more wealth, he was like, I put a million dollars in everything.
00:05:42.320So now you're talking about for these people that are making investments in their 401k, do the right percentage, allow it to grow, get all the tax benefits, et cetera.
00:05:51.820But you have to have the psychology of what's the right percentage.
00:05:55.220And I know Tony gave earlier, but I just want to remind the audience.
00:05:58.420When you look at the results of the family offices, large family offices, endowments, foundations, they have anywhere between 35% and 60% of their net worth in alternative assets, in private assets.
00:06:10.960they don't need as much liquidity so they have a larger percentage giving them the opportunity to
00:06:16.560make a higher rate of return that's what i would advise anybody along their path to remember by
00:06:21.200the way just said okay go ahead i just want to mention the most people's biggest reason for
00:06:27.000losing money has nothing to do with the capacity of the investment it's their emotions so they you
00:06:33.100know the average year in the last hundred years the market has had a 14 correction at some point
00:06:37.92014%. In some areas, it's bigger. But most of those never turned to a 20 or 30. They didn't
00:06:42.520turn into bear markets, right? The vast majority did not. But people get panicked. Since they can
00:06:47.060push a button, since they have liquidity, they do. And that's how they get in pain. Most people
00:06:51.900make money on their own private real estate, their own home that they own. Why? Because they can't
00:06:55.820push a button and get rid of it. So a portion of your investments, you should be thinking in terms
00:06:59.860of long term. And as a result of that, you're going to have a higher rate of return if that
00:07:04.280money is tied up potentially with a place where they're producing greater results, but you don't
00:07:08.240have as much liquidity. So that's the balance that has to be found for anybody. Okay. When I sell my
00:07:13.720business, I want the best tax and investment advice. I want to help my kids and I want to
00:07:18.260give back to the community. Ooh, then it's the vacation of a lifetime. I wonder if my out of
00:07:25.320office has a forever setting. An IG private wealth advisor creates the clarity you need with plans
00:07:31.560that harmonize your business, your family, and your dreams.
00:07:35.380Get financial advice that puts you at the center.
00:07:38.340Find your advisor at idprivatewealth.com.
00:07:42.100Handmade in Portugal, where craftsmanship is a way of life.
00:07:47.120For those who move through life differently,
00:07:50.380from sunlit decks to nights that never need an occasion,
00:07:54.640every detail is considered, every step effortless.
00:07:58.960crafted from fine suede and built with builder technology designed to move with you because
00:08:06.760true luxury isn't about being noticed it's about how you feel when you arrive the flb icon loafer