Money Guy Show: Episode Summary – "3 Phases of Wealth Building by Age (Where Are You?)"

Release Date: June 20, 2025
Hosts: Brian Preston and Bo Hanson

In this enlightening episode of Money Guy Show, hosts Brian Preston and Bo Hanson delve into the three phases of wealth building—Make, Maintain, and Multiply—and explore how these phases intersect with different stages of life. By breaking down wealth building strategies tailored to specific age groups, Brian and Bo provide listeners with actionable insights to navigate their financial journeys effectively.

1. Introduction to the Three Phases of Wealth Building

Brian and Bo open the discussion by highlighting their extensive experience working with individuals at various financial stages. They emphasize the importance of understanding the three distinct phases of wealth building and how these phases are not linear but rather interconnected and overlapping throughout one's life.

Brian Preston ([00:00]):
"Strap in. Today's exciting, we're going to cover the three phases of wealth building by age."

Bo Hanson ([00:11]):
"We have been able to distill some commonalities... and in today's show we get to walk through and share that we have."

2. Detailed Breakdown of Each Phase

a. Make Wealth Phase

This phase centers on earning and saving, where individuals focus on building their income streams and accumulating assets.

• Key Components:
  • Career Focus: Enhancing career trajectory to increase income ("How big is your shovel?" - [02:08]).
  • Effective Saving: Allocating a significant portion of income towards savings and investments.

Brian Preston ([01:31]):
"This is where you are literally trading your job or your time that you spend at your job for building and saving assets."

b. Maintain Wealth Phase

Focuses on preserving and protecting the wealth accumulated during the Make phase.

• Key Components:
  • Emergency Funds: Establishing and maintaining adequate liquid savings.
  • Insurance: Securing appropriate coverage to mitigate risks ([09:38]).
  • Debt Management: Eliminating high-interest debts to prevent financial derailment.

Bo Hanson ([02:41]):
"Maintain is something you might be interested to find out is going to show up very early on in the journey."

Brian Preston ([10:25]):
"49% of Americans don't have any disability insurance... you have the income, you put a motor around and protect that income."

c. Multiply Wealth Phase

Emphasizes growing the existing wealth through strategic investments and generosity.

• Key Components:
  • Advanced Investments: Exploring real estate, alternative investments, and small business ventures.
  • Generosity: Donating time and resources, mentoring others, and building a legacy.

Brian Preston ([03:57]):
"This is where hopefully you get to be more generous, you get to actually donate your time, you get to donate your resources."

Bo Hanson ([16:19]):
"Even if you're not in a stage to start just writing checks, there are other ways you can impact the world."

3. Wealth Building Across Life Stages

Brian and Bo outline a glide path approach, detailing how focus shifts between the three phases as one progresses through different age brackets.

a. Early Career (25-35 Years)

• Primary Focus: Maintain Wealth
• Strategies:
  • Emergency Funds: Building 3-6 months of living expenses.
  • Insurance: Securing high-deductible health plans and disability insurance.
  • Avoiding Debt: Prioritizing debt repayment, especially high-interest loans.
  • Employer Benefits: Maximizing 401(k) matches and other employer-provided benefits.

Bo Hanson ([07:30]):
"We are one relatively small decision away from a cataclysmic disaster."

Brian Preston ([13:49]):
"The wealth multiplier is your army of dollar bills are going to do that heavy lift for you."

b. Mid Career (35-50 Years)

• Primary Focus: Make Wealth
• Strategies:
  • Income Growth: Leveraging peak earning years to maximize savings.
  • Investment Increase: Aiming to invest upwards of 25% of gross income.
  • Asset Allocation: Tailoring investments to match risk tolerance and financial goals.
  • Controlling Lifestyle Creep: Managing expenses to ensure savings rates remain robust.

Bo Hanson ([19:44]):
"This is the phase when we're likely entering our peak earning years."

Brian Preston ([20:24]):
"How much you make is only one part of the equation... how much you get to keep over the long term."

c. Late Career (50-65 Years)

• Primary Focus: Maintain and Multiply Wealth
• Strategies:
  • Debt Elimination: Paying off remaining debts to reduce financial burdens.
  • Portfolio Adjustment: Shifting towards capital preservation.
  • Estate Planning: Updating wills, beneficiary designations, and estate documents.
  • Risk Management: Bolstering cash reserves to cover 12-18 months of expenses.

Bo Hanson ([32:32]):
"You're now in the phase of life where you want to have as little encumbrances on you."

Brian Preston ([33:08]):
"Now you're transitioning to something else in the future... making sure you reflect your life in retirement."

d. Retirement (65+ Years)

• Primary Focus: Multiply Wealth
• Strategies:
  • Living Off Investments: Structuring withdrawals to sustain retirement.
  • Legacy Planning: Creating a lasting impact through donations and mentoring.
  • Experience Building: Focusing on creating meaningful memories and experiences.

Bo Hanson ([40:45]):
"This is probably the peak multiply phase because now you have both the time and the resources."

Brian Preston ([39:14]):
"Your money can make more than you can actually with your brain, your back, and even your hands."

4. Integrating All Phases Throughout Life

Contrary to a linear progression, Brian and Bo stress that individuals should consistently engage with all three phases throughout their financial journey, adjusting their focus based on their current life stage and circumstances.

Brian Preston ([05:29]):
"We think there's actually a glide path to where you are going to focus on all three phases throughout your journey."

Bo Hanson ([06:40]):
"Early on, you still have some focus on multiplying your wealth... At retirement, you still have some focus on making wealth."

5. Behavioral Insights and Best Practices

The hosts delve into the behavioral aspects of wealth building, emphasizing discipline, strategic planning, and adaptability.

• Discipline and Deferred Gratification: Living below one's means to ensure long-term financial stability.
• Regular Reviews: Annually assessing financial plans, especially as life circumstances change.
• Generosity as a Foundation: Incorporating acts of kindness and philanthropy early and often to build a habit of giving.

Bo Hanson ([12:15]):
"Are you actually putting into practice and living on less than you make?"

Brian Preston ([16:45]):
"Being generous is a big part of this... being generous with your resources."

6. Addressing Real-Life Scenarios and Challenges

Brian and Bo acknowledge that financial journeys are rarely smooth, addressing unexpected life events and personalization of financial strategies.

• Messy Middle: Handling mid-career challenges like family expansion, unexpected expenses, or career shifts.
• Personalization: Tailoring strategies to individual circumstances rather than following a one-size-fits-all approach.

Bo Hanson ([27:28]):
"No one's circumstances are the exact same... give yourself some grace because the journey is exactly that – a journey."

Brian Preston ([32:09]):
"Paying off debt as you would imagine is a maintain wealth focus."

7. Practical Resources and Next Steps

To empower listeners, Brian and Bo direct them to online resources where they can access tools, guides, and personalized advice to further their financial education and plan.

Brian Preston ([42:19]):
"Go to moneyguy.com resources, download all the free stuff. Let us accelerate your journey."

Bo Hanson ([37:29]):
"Go to aboundwealth.com, go to moneyguy.com and look at our Work With Us section."

8. Conclusion

Brian and Bo wrap up the episode by reinforcing the importance of a balanced approach to wealth building, encouraging listeners to embrace all three phases at every stage of their lives. They highlight the abundance cycle, where thoughtful financial planning leads to personal fulfillment and the ability to impact others positively.

Brian Preston ([43:19]):
"We're going to help protect you from those blind spots with the abundance cycle."

Bo Hanson ([43:19]):
"The Money Guy show... registered investment advisory firm regulated by the securities and Exchange Commission."

Key Takeaways

• Non-Linear Wealth Building: Wealth building phases overlap and require attention throughout different life stages.
• Early Focus on Maintenance: Prioritizing emergency funds, insurance, and debt management lays a strong financial foundation.
• Maximizing Mid-Career Earnings: Capitalizing on peak earning years through increased savings and strategic investments.
• Late Career Adjustments: Shifting focus towards debt elimination, portfolio preservation, and estate planning.
• Retirement Multiplication: Living off investments while creating a legacy through generosity and mentoring.
• Behavior Matters: Discipline, regular financial reviews, and adaptability are crucial for long-term success.

For a deeper dive into each phase and personalized financial strategies, visit moneyguy.com/resources and explore the comprehensive tools and guides offered by Brian and Bo.