Updated: Jan 26
Are you on track financially?
What does “on track” even mean? This is a very in-depth question and really open-ended because there are a lot of factors to consider that are personal to your goals. Are you producing enough income? Do you have a plan that will sustain your family?Are you building wealth for your family that will provide a lifestyle for generations to come? Will they know how to manage and compound that wealth?
The Four Keys to Wealth
I want to introduce to you what I call the Four Keys to Wealth. It's really the four keys to taking control of and focusing on your income and your wealth.
The Four Keys to Wealth are:
Most people think that the two most important Keys are income and savings, but they're not. The two most important Keys are actually investment performance and a tax plan that is built around your income, your savings plan, and your investment performance. It's a tax plan that is executable not only this year and historically but more importantly going forward.
Most CPAs operate historically. They do a very good job of reporting what you did and saying here's how much you owe today. The problem with that is is you're going to be stuck in the same cycle year after year.
A lot of you are probably making a very strong income. Maybe you're not in the top 1 percent, but you're making $150,000 to $300,000 a year, you have a million dollars net worth, you have a savings plan, you have a retirement plan, you have health insurance, and maybe you own a portfolio of properties. But, because you're focused on your income, your investment strategies are not operating at their full potential. You're making a good income but you're still stuck in a situation where that income may go up 5 to 10 percent year-over-year, allowing you to save a little bit, only to have inflation offsetting your appreciation.
That's why the two most important Keys to Wealth are your investment performance and your tax plan. When you focus on your investment performance and your investment portfolio is working for you as hard as you're working for your income, your portfolio will start to increase your income and increase your savings exponentially.
Most CPAs operate historically. They do a very good job of reporting what you did and saying here's how much you owe today. The problem with that is is you're going to be stuck in the same cycle year after year. Break the Cycle!
Building a tax plan around the other three Keys that focuses on the investments that you have, the type of income you make, and the savings that you want to generate creates a lifetime annuity through that tax plan. That allows you to pour back into your Investments, which will increase your income and allow you to save more, building a plan that actually connects your capital and your income to wealth.
Using the Four Keys to Wealth and focusing on your investment performance – making sure that your investments are not only performing at large double-digit overall returns, but are also generating you cash flow – KeyCity Capital will build a tax strategy for you that is not just a historical report of what you've done, but a plan for what you're going to execute moving forward. That enables you to compound your income and savings by focusing your approach around your investment performance and your tax strategy.