Building your portfolio with the right structure so that it provides you income for life - much like a golden goose. - There's not much worse than outliving your money ! Radio show available as an audio track: http://tiny.cc/BuildPyramid

1. Building Your Pyramid …
… Wealth DNA radio
- Ron (The Ronald) Nawrocki
November 12, 2012
1

2. Building Your Pyramid
What is an Investment Pyramid?
Why Does it Matter?
How do I get Started?
Which Investments at Each Level?
What about Retirement?
Summary
Listen to the radio show: http://tiny.cc/BuildPyramid
November 12, 2012 2

3. What is an Investment Pyramid?
 Proper structure for YOUR portfolio
 Sometimes called: Investment Risk Pyramid
 May have 3, 4, or 5 levels
 I prefer 4 levels … R
i
 Notice the Logo ! s High
k
/
R
e
w
a
Low r
d
November 12, 2012 3

4. Why Does it Matter?
 Good shaped Pyramid gives Good results
 Bad shape … Bad results
 Many investors with small portfolios want
aggressive returns to grow faster …
 Overly conservative investors get no growth
 Some “sound” financial advice – can turn your
Pyramid upside down …
The Road to hell –
is paved with good intentions !
November 12, 2012 4

5. How do I Get Started?
 Start with the first $1, €1, £1 or ¥1 you save …
 4 things you can do:
1. Spend it
2. Lend it
We’ll Focus on these
3. Invest it
4. Give it away
5. Lose it !
 It belongs in the Base of Your Pyramid
Generating Income & available
for a rainy day !
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6. Which Investment at Each Level?
 Base: Cash & Income
 2nd: Growth & Income
 3rd: Growth
 Top: Aggressive returns
 Start at the bottom – build a solid foundation,
then add to next levels
When it’s top heavy –
It can tip over !
November 12, 2012 6

7. Cash & Income
3-6 month reserves in ...
 Cash/Bank account
 Money Markets
 Bank CD’s? or MP3’s
 Short-term bond funds
 Whole Life Insurance
 Fixed Annuities (>age 55)
 Pensions (retired)
 Conservative Private
Mortgage Loans (1 yr)
Build a solid Base!
November 12, 2012 7

8. Growth & Income
Replace x% of your
income with ...
 Bonds/Bond funds?
 Balanced Funds
 Dividend paying stocks
 Utility stocks
 Master Limited Partnerships
 Conservative Private
Mortgage Loans
Survive without a job!
November 12, 2012 8

9. Growth
It’s time to build Wealth ...
 Growth stocks
 High Yield Bonds
 Real Estate & REIT’s
 Royalty Trusts
 Gold & Commodities (~5%)
 High Yield Private Mortgage
Loans
 Your own business
Growing Financial
Independence!
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10. Aggressive Returns
Now you can afford to take
some sound risk …
 Commodities/Currencies
 Options & Futures
 Managed Futures
 Margin financing
 Early stage start-ups
 Hedge Funds
 Private Equity
 Commercial Real Estate
You are a millionaire!
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11. What about Retirement?
 Use FIFO – First In First Out
 Income from 2nd layer flows down
 Income/Dividends from 3rd layer flow down
 Sometimes called: Buckets of Money (Ray Lucia)
 Keep the growth components as long as possible !
 IF bottom layer shrinks - sell some assets as
markets rise …
 Do NOT Dollar-Cost-Average down …
Your Pyramid is your Golden Goose !
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12. Summary …
Your Pyramid is
your Golden Goose !

13. Contact
Ron Nawrocki (aka The Ronald)
Wealth DNA radio
www.WealthDNA.us
Every 2nd & 4th Monday at 9:00 AM
(AZ time)
Tel: 1-623-249-4792
Ron@WealthDNA.us
Helping 1 million listeners
become millionaires !