➡ The wealthy view assets like Bitcoin differently, not as something to sell when the price is high, but as collateral to acquire more assets. They understand the power of compound growth, where the value of an asset can double every few years. Instead of selling assets to fund their lifestyle or buy new assets, they use their existing assets as collateral to borrow money, which is not taxed as income. This strategy allows them to continuously grow their wealth by acquiring more assets and benefiting from their compound growth.

➡ The speaker discusses the concept of a liquidity ladder as a method to manage financial risk and ensure financial security. They highlight the risk of running out of money during retirement, which is a fear for many people. The speaker suggests that by structuring assets into four layers of liquidity, one can mitigate this risk. They emphasize that while there’s always risk involved, it’s possible to choose and manage the risk to one’s advantage.

➡ This text discusses the importance of investing and creating a wealth system to secure your future. It compares two people: one who does nothing and another who invests in assets like Bitcoin and NASDAQ. Over time, the investor ends up with significantly more wealth due to the power of compounding. The text encourages designing a wealth system that supports your ideal lifestyle, rather than living by default, and offers free tools to help build your wealth layers.

Most investors build wealth in one layer. You see, they earn income and they park it in a house, a 401k or maybe a few assets on top. But structurally, it never escapes that layer. And here’s the problem. That model doesn’t work for nearly half of Americans approaching retirement. And it’s not going to outrun the monetary debasement over the next 10 to 15 years. So the people who get dramatically ahead don’t just earn more money, they stack. They build layers under their well. So it compounds differently because they building real wealth isn’t just about holding the right assets.

Even Bitcoin, to build durable wealth, you have to engineer the architecture behind it. So this video is about that architecture. Now, first, I’m going to show you why most investors never escape a single layer. Second, why that model quietly fails over time. And third, how layering actually works. Now, finally, I’m going to show you the operating system that keeps it compounding for decades. And once you see the stack, you’re going to understand why the wealthy are playing a different game. Why while most, they’re falling behind. You ready? Let’s break it down. All right, we’re jumping right in and we’re going to show you why most people never escape the single layer illusion where this all fails.

But of course, what you can do about it. Now, look, we are in a new era. Well, we’ve been a new era for a while, but most financial analysts don’t realize this yet. Let me break it down. Okay, so the traditional path to building wealth. So I talk about macroeconomics, and we talk about the Fed, the Fed policy, we talk about inflation, we talk about gold, bitcoin, commodities, geopolitical shifts, all of that. But for what? For what? So we could build enough wealth one day so we can have the options to do whatever we want with our life, hopefully retire one day, pass wealth down to our kids or whatever.

But here’s the problem with that. You see the traditional path that most learn, whether you’re going to pick the right uranium or commodity or gold stock or whether it’s Bitcoin or crypto, whatever, the traditional path is that I earn money, I take some of that money, hopefully I pay for my lifestyle, and I can save a little bit, and then I wait over long periods of time. But you see, that’s linear. And the problem is that we’re not in a linear world anymore. I’m going to break that down for you right now. That did work. That’s not wrong.

It’s just, it used to work the answers have changed. It worked in a different era. Let me show you what I’m talking about. So here is what is called the cola. This is the cost of living. And you can see how the cost of living has been going up. As a matter of fact, this is the CPI index, which is CP lie. It’s not exactly the rate of monetary debasement. I’ll show you more on that in a second. But from 1975, which is when around when we left the equity based system, the gold based system, and went into a debt based system, 1975 to 2025, we can see the cost of living at 50 has just completely gone and now it’s going up into this parabolic phase.

Here it is well over 300. Okay, this is a CPI, the FRED data, it’s up six times in 50 years. It’s why even though on paper you look at your accounts and you think you should be rich, but you don’t feel rich. Okay, so that’s one way to look at it. But look at this. This is something much different. This is from the fred. This is the Fed’s own data right here. This is the money supply growing. And what you can see is from 1960, right here to 1975, again in that equity based, gold based system, you see that the money supply was just barely expanding at the rate of production, at the rate of growth, the rate of wealth growth.

But what you can see, I added these green line lines right here. This was the trajectory that we would been on. We would have barely gone up here in 2025. But you can see that the rate of debasement gets faster. Look at this. Gets faster, gets faster and gets faster. We’re almost going straight up in a parabolic fashion. And so you can see that it’s not linear. The rate at which the cost of living is going up is going up exponential. But the problem is going back to this. Most people are still trying to build wealth linear and that’s to work.

Okay, let’s take a look at this. So what we can see is that we want to not just save and not just invest, but we need to have an asset layer. Okay? So now the way that most people are trying to solve this, of course is not saving in dollars. I’m guessing everybody watching this video, actually let me ask you, put in the comments down below, do you think it’s a good idea to save all your wealth in dollars? Like of course not. Right? And most of you already know that you should be investing and you should be buying Assets.

So now you’re taking your income, you’re buying assets, but then you wait. Right. So what happens though is I take my income, I buy the assets, and those assets can now compound, and they compound independently. Meaning my assets are growing, my wealth is growing without me having to continue to work. That sounds really good. Now the problem with that is what we do typically is we spread that horizontally. Let me tell you what I mean by horizontally. So I make my hundred thousand dollars or my million dollars or however much that is, and then I’m going to put some over here into a house, and then I’m going to put some over here into some stocks and some over here into some commodities, gold, let’s call it here, maybe I’ll get a little bit of bitcoin.

Right? And I’m spreading my wealth horizontally. So a couple dollars here, $2 here, a couple dollars there, $1 there kind of a thing. But the thing is, structurally that’s still flat, it’s still horizontal. But here’s an even bigger problem. Okay, so now it’s not income savings, now it’s income asset mix. But here’s an even bigger problem. So if your wealth is being managed by a financial advisor, it’s being managed by your fund administrator, some 401k mutual fund, something like that. The two mostly common investing strategies are, number one, which is commonly a 60, 40 bond portfolio, 40% bond, 60% stocks.

And this is what this looks like. What we have is a 10 year trailing annualized returns. Now I’m using 10 years because the whole financial world changed in 2008. So anybody who’s showing you charts from 30 or 40 years, don’t listen to them. We want to look at things that are more recent. So over the last 10 years, what we can see since 2014, 14 to about 2025, is that this traditional plan, and again, if you have an administrator, you’re probably in something like this, has been averaging a 6.9% return, 6.9%. But the problem is, as I showed you, the cost of living is going parabolic.

And so you’re spread out horizontally. You got some stocks, a couple different stocks, a couple different bonds. You’re spread out horizontally, but this is what you’re averaging. Okay, that’s problem number one. Now another very common way might be to do what’s called like an all weather portfolio, this is popularized by Ray Dalio portfolio. And so what you do is you, you know, 12 or 15 or 17 different assets and they’re all uncorrelated. And that way, you’re much more protected. Okay, but look how that’s done over the last. The last 10 years, same period, this has only done 5.6%.

Again, this is not going to cut it. So what they’re trying to do is be safer, but what they’re doing is they’re so safe that they’re actually risky, meaning they’re so safe that they’re guaranteed to be losing money. So it’s not really risky or safe. You’re guaranteed to lose money. So all that seems pretty risky to me. Now, a lot of this also, it depends on my income or my ability to fund my assets. This is another big thing. So all of this depends on my ability to earn income, to work and be able to contribute into that.

But the minute that I stop working and I have the stop, I stop having income that’s funding into these assets, all of this grows. And as a matter of fact, it starts working the opposite. Because according to traditional financial advice, when I want to retire, then I have to start selling off my assets. So I’m either growing or I’m shrinking. Those are the only two options that I have. Now, there’s something a little bit different that we could do. And this is what the wealthy do, and this is what I’m hoping to pass on to you.

The wealthy approach this game completely differently. The 1% obviously have achieved something that most haven’t. And so what do they do? Well, they look at assets completely differently. You see, most people, when I, they ask me a question like, hey, Mark, at what price are you going to sell your bitcoin? It’s like, wow, you have no idea the game that we’re playing, do you? Or the game that I’m playing, the game that the 1% are playing, because we look at assets as something differently. The traditional path, as I showed you, looks at buy an asset like Bitcoin or gold or whatever, and then one day, at some price, you sell it.

Okay, well, we don’t do that. We look at assets as collateral. This is a completely new game. And if you play a different game, you get different results. So the wealthy don’t believe in selling. The wealthy never sell. It’s not buy low, sell high. That’s the old game. That’s the game that doesn’t work. This is a new game. And instead we look at assets as collateral. Why is that? And what does that even mean? Well, let me show you why. First of all, first of all, you’ve probably heard of this, but maybe you haven’t ever seen it.

Laid out this way, Einstein called it the eighth wonder of the world. If you know what that is. It’s the law of compounding. Those who know it earn it, but those who don’t know it, they pay it. So there is no static, there is no in the middle, you’re either going to earn the compounding wealth or you’re going to lose in an asymmetric compounding way. And so what this means, first of all, here’s how we calculate this. We can use what’s called the rule of 72. So we take the, the number 72 and we divide it by whatever our growth rate is, our compounded growth rate.

So if I’m in a 60, 40 portfolio, it’s six and a half, hundred percent. If I’m in a Ray Dalia portfolio, it’s five and a half, five and a half percent, 5.6%. If I’m in just the NASDAQ, it’s like 12 to 15% over the last two years, not over the last 12 months. Bitcoin hasn’t been doing so good lately. But over the last two years it averaged about 47%. Three years, 75%. So different assets have different rates of growth. Now what I’m going to do is I’m just going to use 20% and I’ll show you where we get there.

First of all, again, Bitcoin’s at 50%. Let’s just cut that in half. And again, we’re looking over a 10 year period. We’re not trying to look at six months or 12 months at a time. But what this shows us, that take 20% divided by 72 is equals three and a half years. So that means every three and a half years, my portfolio doubles. Now, most people don’t understand. This is what made Warren Buffett so wealthy. I think it was like when he was like in his 60s, he only had like 3 billion in wealth. But it’s the last doubles that make so much.

So from 60 to 90 is where he made the most of his wealth. So check this out. If I started with $1 million right here, and it’s making 20% again Bitcoin, I believe we’ll do more than that over 10 years. I can show you ways to do it without bitcoin. We’ll get to that in a minute. But let’s just use 20%. Put whatever, whatever number you want. Every three and a half years, a double. So from one to two. Okay. One to two, not so bad. Two to four. Two to four is pretty good. Four to eight, eight to 16, 16 to 32, 32 to 64, 64, 128 to 237 million.

So what that means is that in this section right here, I made $128 million in only three and a half years. Incredible. So I made a million in three years here. I made 128 million in three years here. This is why the wealthy never sell assets. They understand this. Look at how this grows. And so what happens is if I buy low at a million and I sell High at 8 million, I feel great about myself. Whoa, look how much money I made. I made a 7 million. But if I would have just hold on for a few more years, my kids could have had 237 million.

That is the law of compound. And I just wanted to see. I wanted you to see that in math. So this law of compound is so powerful, which is why the wealthy never sell. So how do they get wealthy? How do they get the money? How do they buy things? How do they buy houses? How do they buy cars? Well, they use assets as collateral, the collateral layer. So assets are not something I buy and sell. Assets are something that I use as collateral. Collateral for what? Collateral for more assets. Let’s break this down. What we want to do, what the wealthy do is they think about what collateral do I have? What is my balance sheet? Wealth.

And how do I activate that to grow more wealth. So again, the old game was very linear, right? So I have income, I work really hard. I work 40 hours a week. I have a side hustle. I’m working 50 hours a week. I have income. I then pay tax on that money. I lose, you know, 30 to 50% off the bat. Then I pay for my life. Gets expensive. How do I live after I’ve paid taxes? That’s hard. Then hopefully I invest a little bit after that, right? But again, if my income suffers, then I have to start selling this.

Or if I want to get the house or I want to get a new car, send my kids to college, I have to start selling my assets and all this starts going backwards. That’s the old way to play the game. But the better way to do it, the way the wealthy do it, like the way the 1% do it, they play a different game. And what they do is they earn income, but they use the income to buy assets. And because they have assets used as collateral, they get this tax efficient, which means that they can buy assets without paying a lot of tax right here.

Then they use the assets to pay for their life. That means even if their income stops, the assets are still there compounding and they’re continuing to pay for their life. It also means that they never have to sell the assets to lose the compounding to pay for their life. Now again, how do they do that? Well, they use it as collateral. Collateral for what? They use collateral for equity, for liquidity. So here’s how it works. If I have a house and it’s worth $1 million, but let’s say that I have $400,000 of equity in that house, I that’s dormant capital, that’s lazy, inefficient capital.

This house is going up, let’s call it at 5% compound annual growth rate. Whether this 400,000 is in the house or I take the 400 out of the house, either way it’s going to be 1 million. At 5%, that doesn’t change. But what I could do is I could take this 400 out of the house and use it for whatever I want. I could use it to buy more assets, buy some stocks. I could use it to buy some gold. I could use it to, of course, buy some bitcoin. I could use it to pay for my life, to buy a new house.

And this money comes out tax free because it’s not income, it’s liquidity, it’s debt that I’m pulling out against it. Now, if I pulled 400,000, I bought some stocks, some gold and bitcoin. Now let’s say I have 200,000 sitting in Bitcoin and that’s now going up, I call it 20%. But now there’s equity here, 200,000 of equity. So if I need to pay for my house payment, I need to pay for a new car. I have liquidity. I can pull out of here again. I could take some of this 200,000 out not as income that’s taxed where I lose half of it, but as debt, and then I could use it to buy another asset.

And so what the wealthy are really doing is that it’s a completely different way. They’re buying assets to use as collateral and they’re using money equity equity and credit equity to buy another asset, asset two, and use some of that to buy asset number three and some of it to buy asset number four. Now if they have a house going up at 5%, they have stocks going up at 17%. They got Bitcoin going up at 25%. Their blended return rate is 200% plus higher than if they had just bought a regular asset. So they’re stacking vertically instead of horizontally.

Now I can already hear it. I get it, Mark. This is completely reckless. You’ve introduced so much risk. There’s leverage. You’re using credit. And what happens if the market crashes? What happens if I can’t make my payment? So we’ve introduced all this risk into the system and that sounds too risky. Now what I would say is that we structure it so it’s not so risky. We structure it through collateralization. Now, there’s four ways we do this through a liquidity ladder. I’ll just say real quickly, I understand this is scary. It gets risky. It sounds complicated. It’s not that risky.

And actually there’s risk. Either way, I’m going to break it all down. I’ll show you the four ways that we can use liquidity ladders to protect ourselves. I’m going to do a live presentation next week. If you want, I’ll break it all down for like an hour. You can ask me all the questions live. I’ll put a link down below. We’ll put a QR code on the screen here if you want to come check it out. It’s free. Come hang out. It’s fun. But let me continue to show you what I’m talking about here. So we have to reframe our brain around this for a second.

So have an open mind with me. Just think through this for a second. First of all, let’s talk about risk. I am not saying that that is not risky. It is. I’m not saying that. But what I am saying is that there’s always risk in everything. So whether we do that or not, there’s risk. That’s what I want you to think about for a second. What do I mean by that? Well, let’s think about the debasement risk. I already showed you the rate of the money supply. The debasement, the cost of living is going up at an exponential rate.

So if I’m only going into a 6040 bond portfolio or I’m only diversifying across a basket of 17 things like the Dalio portfolio, I am guaranteed to lose money. Guaranteed. So the risk is that the cost of living is going up faster than my wealth is growing. And the risk is, is that I won’t have enough money. Let me show you this in reality. So here is. Did you know about half of people retiring today? Half of the boomers today have zero saved. Half have zero saved. Didn’t work out too well for them. But of the half that do have money, they have an average of about $240,000.

That’s how much they have saved, an average now per modern portfolio theory, because when they stop working, they start selling their assets. And so they have to sell them off. They can sell about 4% per year to hopefully not run out, which is good for about $800 per month. Now, where are you going to live for $800? Certainly not in California. I don’t think you can live anywhere for $800 a month. And this is what it boils down to. What we can see is that the $240,000 nest egg at the 4% rule gives about 9,600 per year.

$800 per month. Not very good. But here’s the worst part. Recent research and industry commentary indicate that around 45% of Americans, about half of Americans who retire at 65 are likely to run out of money during retirement. Half of people are likely to run out of money before they die. That’s pretty bad. Even with expected market returns. Even with expected market returns. Because market returns are not keeping up with the cost of living. Also, other large surveys find that roughly half of retirees fear, keyword fear, running out of money. So not only are they probably going to, so they probably should fear, but now they live in fear.

Now they’re losing sleep, now they’re uneasy. So that’s what you’re facing. So that’s one risk. If I do the traditional path and I don’t use leverage and I don’t use risk, well, the risk is that I’m going to run out of money. The risk is that I live in fear. Okay, so there’s risk that way. Forced liquidation. I have to now sell my assets to pay for my life, which means I don’t get to take advantage of all this compounding all that’s gone. I have to sell my assets. So what I say is choose your risk.

Choose which risk you want. So take a look at this. I was going to show you us back to this. This is the S&P500. This is the S&P 500 divided by the money supply. You can see in the year 2000 it made a high and today it’s not even back to its high in 2000. So what does that mean in purchasing power? Your stocks, Your S and P 500 are not making new all time highs. That’s what that means. What about homes? You can save all your wealth in homes, but check this out. This is homes in blue, home prices.

This is the 2008 bubble that we had. The red is the, is the money supply. So what you can see is that home prices and money supply growth are. It’s like a perfect proxy for inflation. So, yes, your home is going up on paper, but it’s why you’re not making more money. Okay, so what I say is, choose your risk. On one side, the risk is that I’m guaranteed to lose. I have to sell my assets. I don’t get the compound in, I’m probably going to be broke before I run out. 45% are living in fear.

Sounds pretty bad. The other side is that I have to structure around it so there’s four layers of liquidity. If we build these four layers properly, we can structure something that mitigates the risk. There’s always risk, but we can mitigate. It’s like, it’s risky to go in the water swimming, but I could learn how to swim. That’s one way to mitigate it. I could. I could go in the water and learn how to swim. And I could also wear a life jacket. It doesn’t remove the risk of the water, but it mitigates it by learning how to swim and put a life jacket on.

So we can have multiple layers of liquidity that protect us. The operating layer, okay, this makes sure that we have enough money to cover all of the payments. And we have a buffer account number two. This is our layer two, emergency reserves. So now we build a layer here that if layer one runs out, we have cash like equivalents that earn yield. But they could be deployed if we need additional funds to cover our liquidity ladder. We have layer three. Now, these are collateral assets. So these are assets that have liquidity in them. We don’t necessarily have to tap into it, but if we run out of one and run out of two, we could deploy layer number three.

Okay? These are ways that we can structure assets. And then we want to think about all of the assets that we have and have a liquidity rate ratio. All right? If we’re in the 25 or more liquidity, we’re in a. A much safer optimal zone. Let’s just say that again. There’s always risk. I don’t want to say risk free, because there is no such thing. If we’re less than 10%, we’re danger zone. So what I’m saying is there’s risk either way. 45% are living in fear. 45% are going to run out. Half of them don’t even have money.

Now, that’s risk. The other side, there’s also risk because I’ve introduced leverage And I could have liquidation over there as well, but I could structure around. So what I’m saying is one I can’t mitigate, one I can. You choose which one. Now the separation is real. So let’s take two people. Let’s just take a look at this for a second. Both start in the exact same place. We have two different people in the exact same place. One person hears this and says, mark, you’re a psychopath. That’s the riskiest thing I’ve ever done. I won’t do that.

The other guy says, hey, that sounds somewhat reasonable. I can understand how I can mitigate it. Maybe I should try it. Let’s check it out. So two people. Let’s, let’s look at the 10 year breakdown first on this. So let’s look at happens over 10 years. Now I’m going to look at 10 years and 20 years because again, the law of compounding. Check this out. So both of them start with a home, a million dollar home. Both of them have $300,000 in equity. They’re equal. Same starting point, one person, investor A, they hold the home. Yes, I have 300,000 in equity.

But why would I do that? Why, why would I use that equity? Well, why would I put my home at risk? That sounds risky. I won’t do that. And that’s fine. In 10 years, the equity in their home is now worth $929,000. Now Investor B says, you know what, what I’m going to do is I’m going to activate that 300,000 in equity. I’m going to take some of that equity out, maybe a home equity line of credit, and I’m going to deploy it into another asset, into a layered stack. So now they have less equity. Now they only have 629,000 equity because they’ve taken some out.

However, let’s say that they put it into some Bitcoin. And Bitcoin, it’s not doing 50% a year like it’s been in historically. Let’s call it 20. So it’s 20%, that’s now 1.857. Now maybe we took some of the bitcoin and we put it into Nasdaq. Nasdaq’s been doing 15 to 17%, let’s call it 12. So a 12, that’s worth 373,000. Now we did use debt to get here, so we have to remove the debt. But at the end of 10 years, the person who activated some capital sitting on 2.7 million and the person who did nothing is at 929,000.

That’s not bad. It’s a million dollars of equity. Good job. But now you got to sell your home in order to have any of that. Whereas this person over here has 2.8 million. And they don’t have to sell their home because they can activate the liquidity. Okay, but that’s in 10 years. Check this out. In 20 years, it’s going to blow your mind. Okay, in 20 years, again, same person did nothing. They’re holding their home. Now the home Equity is almost 2 million, $1.9 million. Not bad. But over here, investor B again, move some of the equity out, bought some bitcoin.

Bitcoin’s been going up at 20% a year. It’s $11 million. They put some into NASDAQ. Remember, it’s at 15, 17. It’s called 12. That’s at 1.1 million. We have to account for the debt. That’s 120. Take that out. So investor B has $14 million versus only 2 or 3 million over here because of the law of company, because of the law of doubling. And then if I can keep this and give this to my kids, the system keeps running, and then we’re getting the 128 million, and then we’re getting the 230 million, and then we’re getting THE 460 million, and then we’re getting The 900 million.

And you see how quickly that starts growing. What we want to do is turn this into an operating system. Okay? This is not a video about real estate. I’m not here to talk about the nasdaq, and this is not a bitcoin video either. This is about architecture. This is about designing a system to build my wealth to pay for my life, not working harder to build my life and then selling my assets and hopefully I die before I hit zero. But rather building a system where my wealth pays for my life without me having to work harder.

It’s architecture. It’s using one layer. Getting $1 to do one job or two jobs or three jobs or four jobs, or getting $1 to do five jobs at the same time. And that compounding is what creates the separation. Let me show you this other chart one more time, just so you can see this. Person A versus person B. In the separation, the person A had the one asset, one layer, one up here. Not bad. Better than doing nothing. Better than saving in dollars. But the person who just added two extra layers ended up right here. Look at that separation.

Now, that’s only two layers. Imagine three layers, five layers or 10 layers and you could see how much faster you grow. The key thing is we want to design it because we want to design our life. I know what my ideal life looks like. I know how much I need. I know how, where I want to live and what that lifestyle looks like. I know how much that’s going to cost me. And I want to design a wealth system that gets me there. If I don’t design that to get there, then I live a life by default.

This is my build or be built philosophy here. Now the key thing is I’m going to warn you, build safely. There is risk in this. So you want to build safely. But I’d also warn you there’s risk in not doing it as well. And I’ll let you decide what’s next. Let me know what you think about this. If you want to break down any of these subjects in more detail, leave in the comments down below or come join me. I’m going to dig in deep on this. All the strategies we’re going to go through. Five tools you can use to build out your wealth layers.

It’s all free. There’s a link down below, below. I’ll put a QR code right here. We can ask all the questions live. It’s going to be amazing fun time. Hopefully I’ll see you over there. And as I always say, to your success, I’m out.
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See more of Mark Moss on their Public Channel and the MPN Mark Moss channel.