The surprising reason most growth portfolios work for retirement but fail future generations

The Ultra Wealthy Invest Differently

Do You Ever Wonder How People with 20 Million Dollars Plus Net Worth Invest?

Among all assets allocated to the portfolios of the ultra-wealthy, like the members of the social investing club Tiger 21 (minimum of $20M in investable assets to join), stocks come in third after real estate and private equity.

How do the Ultra High Net Worth Invest?

After my first IPO in 2012, I got on Tiger21's email list not because I qualified but because I wanted the information. They provide a quarterly member allocation report, which is available to anyone.

My biggest question was why their members' portfolios looked different from what was being recommended by all the Wealth Managers walking into the Splunk offices trying to win my business.

Here is the portfolio they were advocating for my investments - 70% Stock Allocation

Two Portfolio Strategies = Two Different Goals

The reality is that the Ultra Wealth Portfolio is structured with a larger allocation to income-producing, tangible assets like private real estate and private equity that generate significant cash flow (8%+ CoC) and appreciate in value.

This asset allocation creates an Evergreen Portfolio that protects the original capital, generates today's income, and preserves future generations' wealth.

This contrasts to the standard growth portfolio made primarily of equity that will be filled for this generation’s retirement and then drained during retirement.

It’s goal is to provide retirement to the present generation and then divide what is left over.

Don’t Just Take the Status Quo

After seeing the two differences, I decided to start down the journey of creating my own portfolio to mimic Tiger21 even if I could not join the group.

Here are 3 Steps I Took to Build My Evergreen Portfolio

Step 1: I created an Asset Allocation Category of Income and Growth and allocated 50% of my portfolio to each. You can read about that HERE or Listen HERE.

Step 2: I educated myself on Private Equity Real Estate and Private Equity Investing to understand the math and strategies behind these investments.

Step 3: I took Action and Tracked my Results. I got into private equity real estate investing in 2013 and managed my investments month over month and quarter over quarter to learn from each investment and improve my results.

After 12 years, here are the results:

Why This Matters to You

Tech professionals are skilled at earning and trading their time for equity compensation but often face challenges managing their growing wealth to work for them.

Without a structured portfolio strategy, they risk overexposure, poor diversification, and losing the chance to achieve financial freedom.

The Evergreen framework is your pathway to building a generational business for today and beyond.

The Path is Challenging

Many of us face some common pitfalls in this journey.

• Overconcentration: Many tech professionals have 80–90% of wealth tied to a single stock or company equity.

• Fear and Uncertainty: Anxiety about losing money or missing out on trends leads to decision paralysis.

• Tax Burdens: Lack of diversification and engaging the right professionals often results in significant tax liabilities.

While the path is challenging, it is not impossible.

You have taken the red pill and now know the truth.

Take action to learn more and move towards your freedom.

3 Key Insights About the Evergreen Portfolio for Tech Professionals

1. Dual Purpose: Income and Growth

The Evergreen Portfolio is designed to generate consistent income while growing your wealth.

Unlike traditional portfolios, it doesn’t require selling assets to sustain your lifestyle. This means you can create a reliable cash flow for living expenses while preserving and compounding your principal over time.

Action Step: Research the allocation strategies of successful investors, such as a 50/50 split between growth assets (e.g., index funds, venture capital) and income assets (e.g., real estate, private equity).

Go Deeper: Here is a link to the podcast on the 50/50 Portfolio Allocaction (LINK)

Also, check out this week’s podcast on the Evergreen Portfolio Strategy (LINK)

2. Diversification Beyond Stocks

The portfolio integrates alternative investments like private equity, real estate, and income-producing assets alongside traditional investments.

These alternatives provide higher cash-on-cash returns and reduce dependency on stock market performance, offering more stability during market downturns.

Action Step: Explore investment groups like Tiger 21 and listen to some of our past podcast episodes here:

Go Deeper: Here are some select podcast episodes that will give you the basics on Alternative Investments and Income Investments

• Private Equity Investing Fundamentals - Alternative Investments Explained

• What are Portfolio Income Investments: Overview of Income Opportunities

• An Example of an Income-Focused Portfolio with Pascal Wagner

3. You Are the CEO of Your Wealth

Managing an Evergreen Portfolio requires a mindset shift.

Treat your portfolio as a business with defined goals, measurable KPIs, and strategic decision-making.

This active management approach ensures your investments align with your financial vision and long-term objectives.

Action Step: Begin by educating yourself on financial management skills like reading profit/loss statements and understanding asset performance.

Go Deeper:

• To Scale You will Need a Portfolio Operating System

• Hire a Great Team to Grow with Financial Success Team

How to Learn More Right Now

1. Study Case Studies: Review real-world examples of ultra-wealthy portfolios (e.g., Tiger 21 allocations).

2. Build Knowledge: Read foundational books like Rich Dad Poor Dad or resources on portfolio management.

3. Connect with Experts: Join us online on Youtube and stay tuned for our workshops in 2025 focused on building Evergreen-style portfolios.

By embracing these principles, tech professionals can shift their financial trajectory from saving for retirement to creating perpetual income and generational wealth.

Tech Equity & Money Talk is a Weekly Podcast that explores the process of building wealth through Tech Equity and managing the money that comes with it.

If you like the podcast, support us by leaving a review; please do that now! (LINK)

083🎙️The Evergreen Portfolio Strategy - An Investing Strategy for Generational Wealth

Ever feel like you're just winging it with your finances?

This week on the Tech Equity & Money Podcast, Christopher Nelson shares a game-changing perspective: managing your portfolio like a business. Forget the chaos of personal finance—it's time to create a strategy that’s focused, disciplined, and built for growth.

From avoiding lifestyle creep to unlocking tax hacks, Christopher dives deep into building a portfolio that not only works for you now but sets up future generations for success.

It’s personal finance—reinvented for tech pros who want results.

🎧 Ready to take control of your financial future? Don’t miss this episode. Hit play now and start treating your money like the business it deserves to be!

Subscribe, share, and let’s transform how you build wealth—one smart move at a time.

When you are ready, there are 3 Ways I can Help You:

1.) Start up-leveling your knowledge - 🎧️ Follow our Podcast

2.) Get our detailed How To Videos- 📺️ Subscribe to our Channel

2.) Accelerate your actions, work with me 🧠 Book a 1:1 coaching session

Disclaimer: This newsletter is for informational purposes only and does not constitute financial or career advice. Always consult with qualified professionals before making any decisions based on the information provided.