⚠️ Do You Suffer from These 5 Wealth Blind Spots?

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Chris Dunn, Nikki Dunn & Travis Devitt
September 11, 2023

What’s on the Menu 🍴

We all have our biases and blind spots—those sneaky little gremlins that trip us up, causing us to miss out on gains or, worse, lose our hard-earned dough.

But don't sweat it; today we're all about shedding light on those shadowy corners of your financial world.

Let’s explore investing ideas, diverse asset classes, and personal finance tricks that might just be keeping your wallet thinner than it ought to be!

  • Do You Suffer from These 5 Wealth Blind spots? ⚠️

  • Are Women Propping Up The Economy? 💵

  • What To Watch This Week 👀

  • The 12 Assets In My Investment Portfolio 📈

Today’s newsletter is a 4 minute read.

Do You Suffer from These 5 Wealth Blind spots? ⚠️

Freedom: This is the driving force behind entrepreneurs, business owners, and freelancers. You work hard to scale the business mountain and plant your flag.

But let's face it, sometimes that view from the top can blind you to some serious financial pitfalls.

After helping hundreds of entrepreneurs in our Wealth Building Community, we’ve noticed several “wealth blind spots” that plague even the savviest entrepreneurs.

Here's a checklist to see if you're suffering from these five common wealth blind spots:

  1. Overpaying Taxes You're probably sending Uncle Sam way more dough than necessary. While you hustle, that tax money is enjoying a government staycation instead of working for you.

    Leverage advanced tax-saving strategies tailored for solopreneurs, small businesses, and large corporations. For help, reach out to Daily Dough's resident tax maven, Nikki Dunn CFP® through our Wealth Building Community.

  2. Under-Invested Portfolio Liquidity is the lifeblood of a business, but holding too much cash means having your nest egg get eaten away by inflation.

    🔥 Burning Cash: We recently talked to a cash flow positive business owner that had over $20M in a checking account just because he was terrified of market downturns.

    He didn’t “need” the cash for his business, so he was surprised to discover he was losing about $700k a year to inflation by not having that cash invested.

  3. Front-Loading Retirement—Or Not You might think you'll just ride into the sunset with your business selling for millions. But what if the market has other plans?

    An early, hefty contribution to your retirement accounts can give you the flexibility to chase higher-yield investments after you know your golden years are taken care of by your low-risk passive portfolio.

  4. Net Worth Tied Up in the Business So you're a paper millionaire? Cool, but paper doesn't pay for life's spontaneities. Begin with the end in mind.

    Do you have an exit strategy? Are you building an asset or just crafting yourself another job?

    Think scalability and enterprise value. Your business should not just generate cash; it should be a sellable, high-value asset.

  5. Misallocating Cash Flow Cash may be king, but it's a fickle ruler if not properly directed. One of the trickiest decisions you'll face is whether to reinvest in the business or to diversify into unrelated assets.

    You can easily fall into the trap of pouring money into shiny objects that don't maximize returns. Collaborate with a tax strategist who can help delineate where your dollars will work hardest for you.

    Diversification isn't just a buzzword; it's a safety net. Your wealth should be spread across a mix of assets, from stocks to crypto to real estate. Don't put all your golden eggs in one basket.

In the end, you don't know what you don't know, right? But now that these blind spots are on your radar, you've got no excuse.

Time to plug these wealth drains and let your hard-earned dough grow smarter, not harder. 💪💡

Are Women Propping Up The Economy? 💵

Women get the reputation of loving to shop and spend money.

In fact, up to 85% of consumer spending is controlled by women…

So why is it that many female-focused brands get brushed off by investors?

This topic can’t be discussed without bringing up the Taylor Swift Eras tour that sold out stadiums across the U.S this year.

It has surely helped local economies.

The federal reserve themselves even brought it up in the June 2023 Beige Book Report.

So, what does all of this have to do with your investing portfolio?

Don’t ignore “basic girl” brands for investing.

Women flock to a very specific number of brands, which is where the term “basic girl” comes from.

So let’s look at how some of the biggest “basic girl” brands focused on women have performed vs. the S&P 500:

Stocks like Lululemon, Ulta, Louis Vuitton, and Etsy have shown impressive outperformance.

Did you miss out on these stocks in your investing?

If so, it may be time to pay more attention - especially as some of these stocks start to show more value!

It doesn’t sound like the power of the female consumer will be slowing down either.

As a matter of fact, most of these companies are guiding for positive 2023 revenue growth, even in the face of recession fears.

It might be more profitable than you think to follow “basic girl” trends! 👗💄

What To Watch This Week 👀

It’s a busy week ahead in the financial markets, as several key economic indicators will be released including the Consumer Price Index, the Producer Price Index, retail sales, and consumer sentiment.

The European Central Bank will also be meeting to set interest rates across the European Union this week.

While central bankers have begun to shift to a more neutral stance lately, higher energy prices are complicating the situation.

If the inflation readings come in too hot, markets are likely to react negatively.

Beyond the macroeconomic data we’ll be watching price action in the following:

📈 Rising Recently

  • Crude prices & energy (XLE)

  • Cannabis (MSOS)

  • Uranium (U.UN / SRUUF)

📉 Falling Recently

  • Regional banks (KRE)

  • Tech (QQQ)

  • Housing (KRE)

  • Bitcoin (BTC)

  • Retail (XRT)

  • Alternative Energy (TAN)

We’ll stay on the hunt for investment ideas and keep you updated on all the market moving events here at the Daily Dough!

Video Of The Day:
12 Assets In My Investment Portfolio 📈

This video details my investing process that I've named "The Machine".

In today’s video, you'll learn:

  • Why I'm investing in these 12 different asset classes

  • Where I focus on active investing, and how I automate 30% of my portfolio with passive investing

  • Lessons learned from my most expensive mistakes

  • How I've fully funded my retirement accounts in my 30's

  • Two keys that can help you start building wealth today

Delicious Bites 😋

Food For Thought 🧠

"The only investors who shouldn't diversify
are those who are right 100% of the time.”
- Sir John Templeton

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DISCLAIMER: We are not investment advisors, and this content is for educational purposes only. We don’t offer financial, legal, or tax advice. Nothing we say is a recommendation to buy or sell any assets. Trading and investing are extremely risky, so please be careful and do your own research.