LEVELS of INVESTMENTS

Summary

Highlights

• The video stresses that the bottom 50% of Americans own no investable assets, emphasizing inequality. 🔍
• Financial independence begins by stopping monetary leaks and investing in knowledge first. 🧠
• Investing becomes serious at around $1,000 a month, marking the transition from saving to active investing. 💡
• At the highest investment levels, individuals manage corporate structures and have strategic control over markets. 🌐
• The ultimate goal is not just to gain wealth but to secure your future and influence markets. 💪

Key Takeaways

• The bottom 50% of Americans hold no investable assets, while the top 10% own 88% of stocks. 📊
• Investment levels range from having no spare money to managing multi-million dollar corporations. 💼
• Smart investments and continuous learning are crucial for economic mobility and success. 📚
• Building wealth involves strategic planning, patience, and learning how to harness opportunities effectively. 📈
• From managing personal investments to corporate structures, the goal is to secure financial independence and long-term legacy. 🏦

Overview

Chapters

• 00:00 - 00:30: Understanding Investment Levels The chapter "Understanding Investment Levels" discusses the distribution of investable assets among different segments of the American population. It highlights that the bottom 50% have no investable assets, thus remaining poor, while the next 40% own only 12% of the stock market, categorizing them within the middle class. In contrast, the top 10% hold an overwhelming 88% of stock market assets, making them wealthy. The chapter argues that increasing the quantity and quality of one's investments is a key factor in moving up economically in society.
• 00:30 - 01:00: Welcome and Introduction to Levels The chapter introduces the concept of different levels of investment, helping individuals understand their current financial standing and what the next level of investment looks like. It emphasizes that regardless of one's starting point, investment growth is possible, and encourages viewers to learn and adapt. The narrative begins at 'Level One,' where individuals may have nothing to invest monthly and highlights this as a common situation for most people. It touches on spending habits like sports betting, hype coins, and lottery tickets as examples of where money often goes at this stage.
• 01:00 - 02:00: Level 1: Broke The chapter titled 'Level 1: Broke' begins with a protagonist who is enticed by the allure of quick money schemes. The protagonist's phone is inundated with TikTok videos showcasing others flipping small amounts of money into larger sums, sparking a slight hope within them that they could replicate such success. However, the protagonist acknowledges their uncertainty and realizes they lack a concrete plan. There's an underlying sense of urgency and desperation, mixed with a glimmer of hope that a successful financial opportunity will present itself before time runs out.
• 02:00 - 03:00: Level 2: Dabbling Level 2: Dabbling - At this stage, the main focus is on shifting the mindset from treating money carelessly to making more informed decisions. The key investment is mental rather than financial, emphasizing learning and changing thought patterns. This level involves starting with a small, consistent saving habit, such as $100 a month. It's the first time there's a sense of doing something intelligently with money, highlighting the transition from spending everything to saving at the month's end.
• 03:00 - 04:30: Level 3: Junior Investor The chapter titled 'Level 3: Junior Investor' explores the journey of an individual who begins their venture into investing. With a small amount of leftover money, they decide to use a micro-investing app, setting up an automatic transfer of $25 weekly into an ETF they heard about on YouTube. Despite not fully understanding the ETF, the act of investing gives them a sense of progress. The frequent checking of the app reflects their fluctuating emotions, where a $3 increase makes them feel like an accomplished investor, while a $6 decrease triggers doubt. Additionally, the individual buys a fractional share of Spotify and shares this with friends, though there's an underlying mutual ignorance about the true intricacies of investing.
• 04:30 - 07:00: Level 4: The Investor with Influence The chapter 'Level 4: The Investor with Influence' emphasizes the phase in an individual's financial journey where the focus is on maintaining discipline with their money. At this stage, it's not about quick wealth but about demonstrating the ability to commit and manage finances without succumbing to immediate spending. The individual starts engaging in self-education by listening to financial podcasts and researching investment concepts like compound interest and dividends. Although they don't consider themselves financial experts, they are more informed and confident about their financial future. The chapter highlights the value of believing in one's financial progression, which surpasses the immediate accumulation of wealth.
• 07:00 - 09:00: Level 5: The Pro Investor At "Level 5: The Pro Investor," the text highlights the transition from a basic understanding of investment to becoming a significantly wealthier individual compared to those who are financially unaware. The chapter discusses how reaching a certain level of investment, specifically $1,000 a month, marks the journey from merely saving to actively investing. This level represents feeling like a true investor as money is not just saved but effectively put to work, illustrating how consistency over time can lead to substantial financial growth as reflected on investment graphs.
• 09:00 - 11:00: Level 6: Managing Wealth at Scale The chapter focuses on managing wealth effectively when you have achieved a high level of financial success, such as reaching seven figures. It stresses the importance of setting up a Roth IRA and investing in ETFs, specifically through Vanguard, while automating investments for consistency. The chapter emphasizes moving away from attempting to time the market towards understanding dollar-cost averaging and appreciating the power of compound interest. Additionally, it advises against following volatile investment trends like hot stock tips or cryptocurrency pumps based on past negative experiences.
• 11:00 - 14:00: Level 7: The Corporation Level In "Level 7: The Corporation Level," the focus is on the maturity and stability of one's financial strategy. Individuals at this stage have moved beyond the volatile pursuit of trends and are more inclined towards sustainable growth of their portfolio. They manage detailed financial spreadsheets, tracking everything from net worth to retirement and real estate plans. Emotional responses to market dips are more controlled, seeing them as opportunities rather than setbacks. The emphasis is on valuing time over material possessions, indicating a shift in financial priorities as one aims for long-term freedom.
• 14:00 - 16:00: Level 8: Generational Control In this chapter, the author describes a phase termed 'Generational Control,' where individuals feel they have broken through previous barriers. They are no longer guessing in their endeavors; instead, they are building something with patience and deliberation. This approach allows individuals to feel more accomplished and less left behind. At 'Level 4,' which is equated to earning $10,000 a month or around $100k a year, individuals reach a point where investing not only starts creating financial returns but also establishes an identity and influence. This level of income is significant enough to allow for substantial investments, such as putting down a 20% deposit on a property. Thus, this phase marks a critical juncture in financial growth and personal development.
• 16:00 - 18:00: The Illusion of Investing The chapter titled 'The Illusion of Investing' explores the concept of investing as part of a strategic plan for financial growth. It discusses using property investments and leveraging other people's money to accelerate wealth building. The text also mentions diversifying investments through platforms like AngelList and supporting startup companies with small investment checks. There is an emphasis on the potential of these investments, despite some being risky or not yet profitable.
• 18:00 - 18:30: Conclusion and Further Resources This chapter encourages readers to stop waiting for opportunities and start creating them. It suggests that once individuals have built confidence and taken some risks, it might be the right time to start their own venture. The chapter introduces the 'start a business in 30 days challenge' available in the Alux app, designed to assist aspiring entrepreneurs by providing a blueprint and resources needed to successfully start a business.

LEVELS of INVESTMENTS Transcription

• 00:00 - 00:30 the bottom 50% of Americans hold zero investable assets this is what makes them poor the next 40% above them in living standards only own 12% of the stock market this is what makes them some level of the middle class the top 10% own 88% of all the stocks this is what makes them rich the more investments you have and the higher the quality of those investments the more you'll move up in society from an economic perspective and the truth is no
• 00:30 - 01:00 matter where you start from you can start building in this video we're showing you all the levels of investment so you not only know where on the scale you are right now but what the next level above you looks like welcome to alux.com the place where future billionaires come to get inspired now starting off at level one,0 to invest per month you're broke now this is the situation that most of the population finds itself in sports bets hype coins lottery tickets anything
• 01:00 - 01:30 that promises quick money with low effort sounds good right now you're not thinking long term because long-term feels too far away and you just want something to work your phone is filled with Tik Toks of people flipping $20 into thousands so you think "Maybe I could do that too." But deep down you know you're just guessing you feel stuck maybe even ashamed but you also feel that spark that hope that maybe you'll figure it out before it's too late right
• 01:30 - 02:00 now your biggest investment isn't financial it is mental your job is to stop leaking money and start learning investing in knowledge is the only real option here not because it's trendy because if you don't change how you think you'll stay stuck here forever level two $100 a month i dabble now this is the first time you feel like you're actually doing something smart with your money you've stopped blowing everything you earn and now at the end of the month
• 02:00 - 02:30 you have a little left over not much but enough to matter you download a micro investing app you set up an automatic $25 a week into some ETF you heard about on YouTube you don't fully understand it but it feels like progress you check the app way too often it goes up by $3 and you feel like Warren Buffett it drops by $6 and you wonder if you've made a huge mistake you buy a fractional share of Spotify and tell your friends you're investing now they nod like they get it but deep down none of you really do your
• 02:30 - 03:00 money's not working hard yet but you are you're learning how to hold on to it how to wait how to not touch it this stage isn't about getting rich it's about proving to yourself that you can stick to something you start listening to podcasts you Google terms like compound interest and dividends you're not a financial expert but you're not clueless anymore either you still feel far from where you want to be but you can finally believe that you'll get there and that belief is more valuable than anything
• 03:00 - 03:30 you've bought so far at this level you're actually 1,000 times richer than the broke ones because unlike them you at least know how the mechanism for investment works level three $1,000 a month junior now this level is where you finally feel like a real investor okay you've moved past saving you're not just putting money away you're putting it to work at just $1,000 a month you can see this on a graph how time turns consistency into
• 03:30 - 04:00 seven figures you've got a Roth IRA set up maybe some ETFs through Vanguard and you've automated your investments so it happens every month without you thinking you're not trying to time the market anymore you've read about dollar cost averaging and for once it makes sense you start talking about compound interest like it's magic and low-key it kind of is you stop jumping on every hot stock tip or crypto pump because truthfully you've been burned enough to
• 04:00 - 04:30 know better now you'd rather watch your portfolio grow quietly than blow up chasing trends you've built a spreadsheet probably more than one you track your net worth you've got tabs for retirement for real estate dreams even a rough timeline for when you want to be financially free you still check your balance more often than you should but when it dips you don't panic anymore you see it as an opportunity while your friends are still buying stuff you are buying time at this stage you finally
• 04:30 - 05:00 feel like you've broken through you're no longer guessing you're actually building something you're doing it slowly patiently and deliberately and yet for the first time you don't feel like you're left behind level four $10,000 a month around 100k a year the investor welcome to level four my friend where your investing starts creating identity and influence not just returns you now have enough to put down 20% on a
• 05:00 - 05:30 $400,000 property and start building your real estate portfolio you can run numbers on rentals in Lisp and Cape Town or Bali not as a fantasy but as a part of your plan you can qualify for a mortgage and understand how to use other people's money to grow faster you've got an Angelist account set up and you've backed a few startups with $5 to $10,000 checks maybe you funded a friend's product launch maybe you own a tiny slice of a sauce company that hasn't made money yet but it could this is the
• 05:30 - 06:00 level where you stop waiting for opportunity and you start creating it you've built some confidence you've taken some risks now the timing feels right and you're ready to build something of your own but what's your next step and this is the kind of question we get all the time and that's what inspired us to create the start a business in 30 days challenge inside the Alux app you can join other aluxers who are also on their way to starting their own business and the app has the blueprint and resources you need to get
• 06:00 - 06:30 your idea off the ground we've paid top experts to guide you through the most important steps terry Rice walks you through idea validation claudia Miklaus shows you how to build a brand that attracts real clients and Michael E gerber gives you the tools to make your business scalable from the beginning if you've ever said "I'm ready i just need a road map well this is it okay and to make it even easier to start we're dropping the premium membership from $29 a month to $19 for the month of April
• 06:30 - 07:00 that's $35 off and more than enough time to finish the challenge just download the Alux app and scan that QR code on screen to join now $10,000 a month is great but with or without it your next move should always be to build something that lasts getting rich quickly is no longer the core goal okay now you want to build something steady smart and scalable of course returns still matter but they're only a part of the bigger picture and the other parts of that
• 07:00 - 07:30 picture are ownership influence and control at level four you don't just have capital you've got leverage at level five well that's $100,000 to invest per month or around $1 million a year every year you are a pro this is the first time that investing feels pretty calm you're not chasing anything anymore you're structuring you've already got real estate that pays you monthly now you're looking for a second
• 07:30 - 08:00 or third property maybe a boutique hotel in Portugal or a development project in Costa Rica you're not just buying for appreciation here you want income cash flow and tax advantages you've joined a VC syndicate or two the minimums aren't scary anymore 50k into a preede round doesn't shake you like it used to you sit on calls with fund managers you read pitch decks without getting overwhelmed and sometimes you pass not because you're scared but because you finally
• 08:00 - 08:30 can say no you've got a private wealth adviser maybe through Goldman Sachs or JP Morgan who helps you to protect the machine you've built you don't just invest in assets anymore you invest around them trusts insurance holding companies offshore structures your investments now pay you back monthly distributions quarterly profit shares dividends you track income not just net worth cash flow has become your compass
• 08:30 - 09:00 the fear of losing it all is mostly gone because even if you do lose on something big you'll be fine at this level risk is a tool not a threat you no longer get excited by double your money returns you get excited when something is safe boring and pays forever when you travel you stay in places you used to save on Pinterest you fly business class when it makes sense not because you're trying to flex but because you're done being uncomfortable and when people ask you
• 09:00 - 09:30 how you did it you don't brag you talk about time patience and not doing dumb stuff with good money because now you know the hardest part is not getting rich it's protecting what you've already built level six $1 million a month the business so at this level you don't manage money directly instead you manage the system around it your wealth lives in companies trusts and structures designed to protect it not just grow it
• 09:30 - 10:00 you've set up a family office or you're working with one that handles everything investments estate planning insurance layers tax optimization even concierish services you don't buy properties anymore you buy buildings think apartment blocks logistics hubs commercial spaces you've got equity in a chain of medical clinics a renewable energy fund and a private debt platform that earns you 10% annual returns from people who'll never know your name your
• 10:00 - 10:30 wealth is protected behind layers trusts in Singapore a holding company in Luxembourg asset managers in Zurich lawyers in New York your name appears on almost nothing but your fingerprints are everywhere at this level cash flow matters less than asset flow you care about how much money moves how it's sheltered and how it continues through generations without getting eaten by tax or divorce you don't chase investments because they come to you and when they
• 10:30 - 11:00 do they're packaged presented risk modeled and legally structured you've probably been sued more than once and you've won mostly because the system you built is stronger than any claim someone can throw at it you've got a full-time staff that you trust with your security your children and your calendar your phone barely rings because everything you need to know is in the weekly brief your chief of staff prepared after filtering 48 hours of movement across your holdings when you buy public shares
• 11:00 - 11:30 it's through a fund that you set up with its own charter and voting rights and you don't even live in one place anymore you live where it makes strategic sense somewhere taxefficient a place that fulfills your family's needs and yet is still close enough to the flow of money this is the point where money doesn't change the way you live but it changes how much control you have over your future people think you care about status but you gave that up like three levels ago what you really care about is
• 11:30 - 12:00 sovereignty you don't want anyone to have the ability to tell you where you can live how you can move or what you can own you've made enough for all of that to be on your own terms level seven $10 million per month the corporation now this is the level where you stop participating in markets and start shaping them you don't buy stocks you buy companies or at the very least board seats you were in on the
• 12:00 - 12:30 deal before the public even knew it existed preipo shares through a trust convertible notes in stealth mode startups you don't need to ask for access anymore because you're on the list by default your name or the name of the entity you operate through is on filings most people never read you're co-invested alongside sovereign wealth funds you've bought an entire housing block with Blackstone you're in private meetings discussing water rights
• 12:30 - 13:00 crossborder tax shields and how to move $50 million without touching a bank your bank by the way doesn't pitch you products it follows instructions from your legal team you own land in different jurisdictions and hold multiple passports because you've learned that some passports protect capital better than others and sure that passport might cost between $7 and $40 million which is the cost of Singapore's different global investor programs but it's worth it to you you are now in a
• 13:00 - 13:30 position to win no matter what happens the market goes up you win the market goes down well you're buying what others are forced to sell this is the level where you can make moves that are structurally untouchable like when Peter Teal used his Roth IRA to hold preIPO shares of Facebook and turned $2,000 into billions completely tax-free this kind of move is not luck okay it is planning structure and timing and while
• 13:30 - 14:00 the world watches billionaires on magazine covers you've stopped caring you're not trying to be seen and then there's level eight generational control the fund at this level you're not concerned with your money buying you freedom you want to use it to buy the world that your children and legacy will inherit you've already secured your lifestyle your family's lifestyle and probably your grandchildrens too now every decision is about what stays after
• 14:00 - 14:30 you're gone you don't just invest in businesses you own them outright entire companies sit under your holding structures think Warren Buffett who owns everything from railroads to insurance through Berkshire Hathaway or Bernard Arno who controls LVMH through a chain of trusts and subsidiaries that protect both the brand and the legacy you don't look at quarterly earnings you look at systems that outlive you and you can now
• 14:30 - 15:00 understand why Warren Buffett has donated $62 billion and counting and why Bill and Melinda Gates are on that list too things like education funds medical research grants climate tech accelerators even media platforms that shape how future generations think you fund scholarships in your name you build foundations your family will run donate to museums and also quietly buy the land that they're built on you understand the
• 15:00 - 15:30 most valuable assets don't always show up on balance sheets because ownership of attention trust and infrastructure takes time and relationship building your wealth is embedded in the economy itself where the money goes matters just as much as how much comes back at this stage you care about insulation your assets are protected private and positioned for transfer your estate planning is airtight your succession
• 15:30 - 16:00 plans are set you don't ask "What do I get out of this?" You ask "What does this make possible 30 years from now?" And since you stuck with us until the end Alexa here's your bonus the illusion of investing because not everyone who says they're investing is actually facing forward some are just spending money with a fancy label on it they call it investing but it's really just gambling dressed up chasing coins
• 16:00 - 16:30 flipping NFTts dumping cash into things they don't understand just to feel like they're in the game others invest money they don't even have and use credit cards loans or buy now pay later schemes they tell themselves it's smart because someone on the internet said it was but what they're really doing is buying stress not freedom and it can happen to anyone sam Bankmanfreed built FTX into one of the biggest names in crypto by pretending to invest wisely when in
• 16:30 - 17:00 reality he was moving customer money around to cover risky bets and bad trades on the surface he looked like the future of finance but underneath he was gambling with other people's money and he lost these are the people who confuse activity with progress they look busy but they're stuck at this level investing doesn't build wealth it hides the fact that there isn't any to begin with and the longer they keep calling it growth the deeper they sink so if you're
• 17:00 - 17:30 going to invest aluxer ask yourself is this building something real or just helping me feel better for a while but if you're not ready for that just yet that's okay don't worry we've got some more levels of videos that you'll love check out levels of debt and levels of income they're going to help you get a well-rounded jam-packed education on wealth building for free we'll see you back here next time Alexir until then take care