Forget The Nest Egg! The Fundamental Shift You *MUST* Make About Your Investment Strategy

Nest Egg. We have all been taught to save our money in order to build a Nest Egg. But I am sorry to tell you that this is the absolute wrong way to think about finance. Forget the Nest Egg! If you want to build wealth, you must think in terms of a Nest Goose.

No matter how many eggs you put away, your retirement fund will most likely not be enough. Your fund will suffer from deflation and your standard of living will suffer as a result.The average 401(k) balance at retirement is less than $200,000. If you want to live a vibrant life for 20-plus years after retirement, is that enough? That’s $10,000 per year! That is not financial freedom in this country.

So if aggressive savings is not the answer, what is? The answer is the Nest Goose! A goose is a PERFORMING ASSET that will continue to make money for as long as you own it. This was the main principle of the book Rich Dad, Poor Dad, a cult classic in the personal finance world. You don’t want a PILE of cash. You want a STREAM of cash! This is such an important distinction!

The finance industry would have you think that dividend-producing stocks, bonds, and funds are the only performing asset game in town. They’re not. There are many types of performing assets. Real estate is the favored asset in my home but here are a few other ideas:

  • Invest in a small business: That is, if you don’t want to run one yourself.
  • Invest in local farms: There are special tax perks for doing this, which I learned about in the Tom Wheelwright book, Tax-Free Wealth. I am NOT an expert in this but if this kind of thing excites you, I highly suggest the book!
  • Invest in precious metals: More about this in a future post.
  • Invest in a start-up.
  • Buy a small business! I recently heard Tom Brokaw tell Rachel Maddow that he owns a few gas stations. You don’t have to RUN the business to benefit from it. You hire people to do that and reap the benefits of being the investor.
  • Invest in hard-money lenders! There is money in this! I can write about that in a future post too. Making a note of it now….

My point is this: If you don’t start to think about buying performing assets now, you will find yourself with a finite amount of money in a savings account at retirement, wondering how to stretch it like Silly Putty. You should be saving your eggs, yes. But you should be saving them to buy Performing Asset Geese slowly but surely while you are still working!

My husband is on a mission to acquire 2–3 rental properties per year. The man stresses me out but we have been able to do it because of his good job and dog-with-a-bone mentality. This has stressed our cash flow considerably and I won’t pretend there haven’t been arguments with me pleading him to slow down. Nevertheless, we have been able to acquire nine single-family homes in the last five years. All of them are rented. All of them are respectable geese, providing good homes for other working families. We are proud of that but I don’t recommend acquiring geese at this breaknecking pace. Slow and steady wins the race too.

Next week I will write about how we find real estate investments that we are able to pay off so quickly. It isn’t magic and it isn’t illegal, I promise. But before I end, let me leave you with one last success story about a Nest Goose.

In the 1960s my grandparents used their savings to buy a few warehouse buildings near Oakland, California. There was a mortgage on them but the loan was paid off in the 80s. Businesses pay rent to operate out of those warehouses. My grandparents lived comfortably off of that rent until they died and now my father and his siblings collect that rent. Those geese have been laying eggs for two generations. That my friends is true generational wealth!

Thinking this way can be uncomfortable since we have all been taught that we would be okay if we just socked away enough money. It is also uncomfortable to spend the money in your savings accounts to buy performing assets because they are expensive and they take a HUGE leap of faith! This is also why so many of you were uncomfortable with my post about borrowing from a 401(k). You want to believe that the 401(k) will be the cash cow that saves you in retirement. Most likely it won’t be. Not unless you find a way to turn it into a performing asset.

My next post will be about acquiring rental real estate and doing it with your net worth in mind. Click here to subscribe to my newsletter so you won’t miss it!

Note: This is a repost from my personal site,

Like what you read? Give Natali Morris a round of applause.

From a quick cheer to a standing ovation, clap to show how much you enjoyed this story.