Diversify, they said.

But what if you are the beginning of your wealth building journey?  Tune in for practical advice that meets your specific financial situation, wherever you are.

About Indestructible Wealth: I’m Jack Gibson. I’m your wealth strategist and I’m here to help you make some money. The Indestructible Wealth Podcast is for young entrepreneurs who want to make, keep and grow wealth to enjoy now, and for years to come.

Episode #55 – Six Financial Beliefs to Embrace in Your 20’s


The average millionaire has 7 streams of income.   

I have 16, soon to be 17.   I don’t think that’s necessarily anything you need to strive for.   I think that’s honestly too many to live a healthy, balanced life.    MSI’s are great, but you don’t want MSD’s.  

This show is all about when to stay focused, and when to diversify.   

If you aren’t already wealthy, you probably should not diversify, especially with your ACTIVE income.   Active meaning what you are putting your time and effort into, your focus, where you are putting lots of hours in to grow and develop.   Diversification will not make you rich!  Diversification helps PROTECT the wealth you have already accumulated, it will limit your ROI most of the time.   If you diversify from the beginning you will lengthen your timeline to reach financial independence.  It’s often better to be laser focused early on within the areas that give you the highest ROI.

For most entrepreneurs that usually looks like this

1)     Invest into your own personal development then;

2)     Invest back into your business then;

3)     Invest in Income producing assets, that DON’T distract you from growing your business

This is why I LOVE syndication deals.   I can get into big, safe, great deals with high ROI that don’t distract me, at all!   These deals are far less distracting then stocks & crypto even because I tend to look at those more than I really should.   I just can’t help myself, I get bored and then check to see what’s going on.   It’s really dumb.   I’m not going to sell them, whether they go up or down in the short run. I don’t even really care that much, it’s not going to change my life at all.  

With syndication the great thing is I can’t check the value.   I don’t have any idea where they are really at in the process.   I just put the funds in, sit back, and wait with confidence, knowing I invested with the right team.    

Here’s another way to say it:   When starting your wealth building journey, don’t go wide.  

Go deep.  

Wide meaning diversifying into many different things and essentially spreading yourself too thin. 

You’ll have multiple streams of distraction, and vastly diminished returns.  Deep meaning you hyper-focus on 1 thing.   Your wealth building strategy should look like a funnel, but upside down.   I don’t think you want more than 1, maybe 2 active income streams but only 2 if the 1 is a job that you have a set schedule with or the business you’re in is very established and seasoned.   If you’re an employee I think it’s critical to get a side hustle business if your goal is to retire young and free.   If you have a business, working 2 active businesses at the same time is very difficult.    

What does it look like to hyper-focus?

Your 3 resources are laser focused:

1.  Time

2. Energy

3. Money   

Once you’ve built excess cash flow in your 1 main area of expertise, then diversify.  

Trust me, diversification is great to protect and grow assets, but it’s super tough to get much of them if you’re a jack of all trades, And master of none. 

I recently had a text conversation with Mark,  a business leader I definitely respect, on the subject of diversification and what his opinion on it was.   Here’s what he said:

“Couple thoughts I have –

#1 the people most influenced by the business leaders are the very people who should NOT be doing multiple businesses if they want to grow their business.  If they see their hero’s publicly talking about their wonderful ways to make money outside of their own business – it can create doubt that real money can be made in their business.   

#2 and you may or may not agree with this – but I believe the young leaders today are massively distracted with other ways to make money when their businesses aren’t stable AND the very thing needed to make it stable is their leadership & focus – not by investing all their quick earned cash flow outside of it.  

I am so thankful my mentor didn’t distract me with all the ways he made money when I started.  I believed all his money was made in his private business so I focused exclusively on building my own private business.  The reality is he never would’ve had access to the real estate, crypto etc…if not for the growth of his own business.”  

I agree with this 100%.   I talk about this extensively on my platform and in my first several podcasts where I lay out the strategy that will help you build wealth.   I talk about it in my 7 step video series which you can opt in for free on my website myindestructiblewealth.com.   The challenge for me is, I do a lot of podcasts and I put out a lot of different ideas on how to grow wealth.   Someone listening to these ideas may get distracted from their primary private business and think that doing multiple different things is the way to go.   This is not the message I want to convey.   So I want with this episode to get you guys clear.    

When you do start to diversify your investments, you need to consider and ask yourself a couple questions.    How much money do you want to make?  How much risk are you willing to take?

It all comes down to this:

Investment buckets.  Your investment buckets determine your returns. 

If you want pure safety and reliability, you can put money in your bank and get .01%. 

I’m not advocating for this.  Money printing will crush cash in bank accounts.  

If you want boring, predictable 3-5%, buy bonds or whole life cash value insurance.  If you want 6-8%, buy index funds.    If you want 10%+, buy real estate.   If you want to go for 10-20% returns, buy well researched individual stocks in future trend setting sectors.     If you want 20-30%, buy self-storage syndication.   If you want 100% returns, buy crypto.   Just be prepared for a roller coaster ride of a lifetime.   

My portfolio?  All of these.   Just make sure to do your research and stay in the game for a decade.   Resolve to hold your ground even when your emotions tell you to sell. 

You see, most people are wrong about diversification.  Diversifying between different stocks is NOT diversifying.

I follow a guy named Jeremy on Instagram, and he routinely posts about his $3 million plus he has in index funds.   One is led to believe that he made his money by investing into index funds over the last few years, when this is absolutely not the case.   His money was made in his own private business, which he then sold for a few million, and he took those funds and invested it all into index funds.    He uses that large index fund account balance as a sales tool to sell his index fund course, which is not at all how he built his wealth.   I agree that it’s a simple, straightforward strategy and it’s a great way to passively invest without taking much if any time, energy, or distraction, but it’s not the way the wealth was grown.   It would take 40 years with that approach to build an account that size, unless you have a super high paying job where you’re making over $500,000 per year, but even then you have to live a very tight lifestyle and catch stocks in a real multi-year bull market, which will absolutely not last as history has shown time and time again.   

Here’s what real diversification is. Investment into several asset classes. Think real estate, crypto, private equity, stocks and commodities for example.

Here’s why:  

Typically, asset classes do not move up and down at the same time.  When the stock market crashes, other asset classes like gold go up.Right now, there’s a huge bull market on Wall Street.  Things are looking bright.  Except bull markets like what we are in don’t last forever. 

When the stock market tanks, and let’s be honest, it WILL have to drop at some point after all this money printing madness is over.  And while your stocks are struggling, your tenants still need a place to live.  So your rent checks keep chugging along.   Or your tenants aren’t paying because of something like COVID, but your crypto just exploded.   

These are all things that happened to me.  Am I glad I was diversified?

Hell yes.  It protected the wealth I had built from my private businesses.   It’s helped grow my wealth by large amounts this year.   But it wasn’t something I did right away when starting out.   

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