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strategies and expense management. It was evident that Rick, a man committed to the commute, was going to run
headlong into his conditioning, not to mention his wife, on his way to his Freedom Day . Given his current situation,
he could start replacing his own salary with passive income with just a small shift of his assets. If Rick traded his
commitment to his commute for a commitment to his wealth, his wealth could explode. We had to get Rick’s money
working hard for him, instead of him working hard for his money. His next building block was Assets .
The wealthy are not in the market—the wealthy control the market. If Rick wanted to do what the wealthy do, he
could no longer park-and-pray his money at 6 percent with a broker. To me, that’s like fast-food finance. It’s
convenient; you drive through, order from a limited menu, and consume predictable mediocrity. Rick had to increase
his passive income by fueling and accelerating his Wealth Cycle with a specific plan of direct and diversified asset
allocation. Rick had a lot of opportunity to engage the Wealth Cycle through his Assets. Rick’s total assets of
$490,000 consisted of

$300,000 equity in his own home
$50,000 in current company’s stock
$70,000 in IRAs
$60,000 in old company 401(k)s
$10,000 in cash

And Rick was willing to
1. Take $140,000 of the equity out of his house, in a refinancing
2. Shift the $70,000 from their IRAs into a true self-directed IRA

3. Move the $60,000 from old 401(k)s for a total of $270,000 in assets that could be directly allocated into a
diverse range of unconventional and aggressive income generating assets

My wealth team and I helped him consider several choices.