Have you ever chose between options, when you really wanted all of the options? Unfortunately many people have done this with their investments and/or businesses.
You may have been evaluating a business or investment opportunity or you may have been talking with a financial advisor when you got caught in the dreadful either/or conversation that sounds something like this:
- Are you interested in Wealth Preservation or Wealth Creation?
- Are you interested in protecting your money or receiving a higher return on your money?
- Umm…how about ALL of the above?
The truth is we’ve all engaged in different versions of either/or conversations like these.
The Infinite Wealth TriangleTM
The Infinite Wealth TriangleTM opens up a very different conversation…it’s about having it all. The Infinite Wealth TriangleTM is a simple yet powerful tool we created to evaluate business and investment opportunities. Our clients & colleagues have used the Infinite Wealth TriangleTM to acquire assets as small as $100 as well as multi-million dollar assets. When acquiring assets we look for those that possess all 3 points of the Infinite Wealth TriangleTM.
Cashflow (passive income / return on principal) – We focus on income producing assets. The business or investment must produce cashflow and passive income after all expenses including debt payments.
Equity (wealth creation) – We want equity but we’re not gamblers. We don’t like betting on appreciation. We look for value add opportunities where we can force appreciation regardless if the market goes up or down. We create equity by simply purchasing the asset at a discount and/or by taking actions to increase the income the asset generates, therefore increasing the value of the asset and forcing appreciation.
Cash out (wealth preservation / protect principal) – Protection of principal and preserving wealth is always the first concern. We acquire assets that allow us to recoup our initial capital contribution as fast as possible, typically in 12-36 months.
Identifying assets that meet all 3 criteria of the Infinite Wealth TriangleTM allow us to:
- Recoup our initial capital (wealth preservation/ protect principal)
- And still retain ownership of the asset (wealth creation)
- That produces passive income and instant equity (return on principal)
- And allows us to use our recouped capital to acquire another asset