Income Reigns Supreme When Markets Seize

human behavior, and money through multiple cycles, I can tell you this:

We are not in Kansas anymore.

The End of Easy Money

Back in the early 1980s, inflation was out of control. Prices were up, but growth was flat—classic stagflation. Paul Volcker, then Fed Chair, made the hard call to raise rates to nearly 20%. Today, the federal funds rate is around 5.5%, yet we’re already feeling the pressure.

Why? Because we’ve built everything—our economy, our businesses, even our personal finances—on cheap, easy money. For 40 years, interest rates fell. And when money is cheap, leverage works.

But the tide has turned.

The Fallacy of the “Good Times”

Too many believe the past decade was normal. It wasn’t. It was a debt-fueled anomaly. And many who made money—whether in tech, real estate, or private equity-fueled exits—succeeded as much by timing as by talent.

Now, with rising rates and record national debt (over $34 trillion and climbing), the game has changed. The question isn’t if there will be a correction. The question is whether you’re prepared for it.

Understanding the Full Cycle

Most people only understand half the cycle—the up half. The last true downturn we experienced with real pain was 2008–2010. That was 15 years ago. An entire generation has never seen what happens when the market doesn’t just slow down—but contracts.

And yet, reversion to the mean is real. When markets soar too high, they fall. Often below the mean. And they stay there longer than you think.

How Do You Measure Wealth?

Let’s shift the conversation.

What is equity, really? What is wealth? If your balance sheet says $10 million, but it produces nothing, is that real wealth?

Wealth is not just a number. It’s a function of income production. As I often say: The game is income.

Don’t Chase Phantom Equity

In a recent conversation, we discussed phantom equity—perceived wealth that looks good on paper but can’t be accessed or monetized. Appraisals, estimates, even online valuations (Zillow, anyone?) are guesses until you sell.

So why sell?

Only if you need liquidity, want to redeploy capital, or see declining fundamentals. Otherwise, focus on the real metric: How much income does your equity generate?

The Only Wealth That Matters: Income You Can Count On

We build net worth not to look good on paper, but to buy back time. That means we need capital that works as hard for us as we worked to earn it.

Replacement income is the name of the game.

So ask yourself:

• – Is my income stream predictable?
• – Is it durable?
• – Does it meet the return I need for my risk profile?

If not, then what are you really sitting on?

Deconstructing the Retirement Myth

“Do I have enough to retire?” That’s the wrong question. The better question is: “Do I know how to turn my capital into sustainable income?”

You don’t need $15 million if your capital generates strong, consistent returns. But most people never learn how to allocate beyond the stock market. And Wall Street’s game is accumulation, not income.

Real Assets for Real Freedom

My preference? Real assets. Tangible, cash-flowing alternative investments.

I’ve diversified across real estate and private credit—not because I dislike the stock market, but because I want predictability. Control. Options.

It’s not about getting rich quick. It’s about preserving sovereignty.

The Inflection Point You Can’t Ignore

When you exit your business or sell your practice, you’re at a crossroads.

Do you become passive and hope your capital holds up? Or do you become intentional about how that capital is deployed?

Too many people abdicate responsibility to financial advisors—good people, but often limited in scope, and rarely seasoned through multiple cycles.

This is where your next investment must be: in your own education.

Education Is the Ultimate Risk Mitigator

You don’t need to become an expert overnight. But you do need to become engaged.

Find the right mentors. Join the right communities. Learn how to analyze risk. That’s what I’ve done my entire career. I’ve invested hundreds of thousands into sharpening my acumen because nobody will care more about my capital than I do.

And the same is true for you.

There Is No Going Back to “Normal”

This is not a time for complacency.

We are entering a volatile, disruptive phase. The Fed doesn’t control everything. The bond market rules. Sentiment drives spending and sentiment can shift fast.

The only way to navigate what’s coming is to be ready. Complacency is the enemy. Diligence is the path.

Your Freedom Is in the Income Stream

Don’t wait. Don’t look back five years from now and wish you had taken action.

True financial freedom isn’t about how much you have—it’s about what your capital produces for you. It’s about autonomy, sovereignty, flexibility.

Find the people who are on that same path. And whatever you do—don’t bet your future on the hope that “things will go back to the way they were.”

They won’t.