Lessons from Monopoly - How to Stop Losing the Retirement Game

Picture of by Dr David Phelps

by Dr David Phelps


magine playing a game of Monopoly, but never buying any assets (properties with hotels or houses) that produced any cash flow. 

Imagine just going around and around the board collecting your $200 when you pass go, but never investing in any assets that made you money.

This might be you in real life, and with your current retirement plans.

For many practitioners, this is nearer to reality than you might think. Sure, we’ve created the ability to earn a higher than average active income… but that income is dependent on us running around the board as fast as we can.  At best, “Investing” is often more like picking “chance” cards, investing in the fad of the day. 

Many practitioners do this over and over and after 30 years, wonder what in the world happened?

Why don't I have anything? What happened to my retirement plans?

This is what happens to most people. They go around the board over and over again, and never take a hard look at what they're doing. They don't feel like they can have any financial advocacy for themselves or they don't realize what’s possible. This leaves them with little choice but to abdicate their resources to other people (financial advisors) and hope for the best. Do you really want to take that gamble with your future?

Becoming interested in how money works is the first step

It’s by having an earnest interest in how money works, in how investments work, that you can find the way to create a life of freedom, peace of mind and security.

This is what I learned many years ago when I was still in school. I read numerous books about money and investing. I realized that if I was going to have a life with security, I had to do it myself.

Yes, I could make money at a job, but that's the equivalent of going around the monopoly board time and time again. You put your time in and you make the money. That's a fine start to the game, but what are you doing with that money to make it work for you? This is where I believe assets, tangible assets, come into play. You may choose whatever assets you like, I like tangible assets such as real estate. Why?

Because I have more control.

Tangible assets are the key to CASH FLOW

Lessons from Monopoly: And your retirement plans
Dr. David Phelps speaking at the October Member Event in Dallas TX

I never understood the financial markets. They never made any sense to me. To this very day, I don't have any investments in the financial markets. Now that may not describe you, but tangible assets are where I have the ability to choose where I put my money.

I’ve been investing in tangible assets like real estate for over 40+ years. Some years ago, I reached a point where I had enough cash flow from my investments that I didn’t need to do any active work anymore. My capital was just turning over and over again to the point where I have enough passive income to provide for my needs. 

The money keeps compounding. That's what I call a real investment strategy.

Understanding Your Investment Philosophy

You need to figure out your investing philosophy first. Then you can bring in investing strategies, which can then be broken down into tactics. This has to happen from the top (philosophy) to the bottom (tactics) because you run the risk of getting lost in tactics if there isn’t a guiding philosophy.

My early decision to commit to the philosophy of investing for cash flow guided all of my other investing decisions. It was my guiding light. 

This is what we teach in Freedom Founders. It’s what we teach our members and how we're teaching their kids – who we affectionately refer to as the “NexGen” group. We’re giving this younger generation (The NexGen) the ability to see forward, to see what their life can look like no matter what pathway they take, no matter what career choice they decide to make, they can still be advocates for their own financial future.

Understanding that you have the ability to be your own financial advocate is where it starts. It's never too late. If you haven't taken the right steps so far, it’s time to get clarity, get some education, and figure out how you can make tomorrow a much better one than today. 

My advice? Start acquiring assets early in the game. They make all of the difference.

To your freedom!

– David

P.S. Whenever you’re ready, here are some other ways I can help fast track you to your Freedom goal (you’re closer than you think) :

1. Schedule a Call with My Team:

If you’d like to replace your active practice income with passive investment income within 2-3 years, and you have at least $1M in available capital (can include residential/practice equity or practice sale), then schedule a call with my team. If it looks like there is a mutual fit, you’ll have the opportunity to attend one of our upcoming member events as a guest. www.freedomfounders.com/schedule

2. Become a Full-Cycle Investor:

There are many self-proclaimed genius investors today who think everything they touch turns to gold. But they’re about to learn the hard way what others have gained through “expensive” experience. I’m offering a free report on how to become a full-cycle investor, who knows how to preserve and grow capital in Up and Down markets. Will you be prepared when the inevitable recession hits? Get your free report here.

3. Get Your Free Retirement Scorecard:

Benchmark your retirement and wealth-building against hundreds of other practice professionals, and get personalized feedback on your biggest opportunities and leverage points. Click here to take the 3 minute assessment and get your scorecard.

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