Preserve Post-Exit Wealth

Sam Parr shares his conservative approach to wealth management after selling his company, emphasizing wealth preservation over aggressive growth. His strategy focuses on living off current income while maintaining a significant nest egg untouched.

Key Points:

• Core Investment Philosophy:

  • Put 79% in VTI (Vanguard Total Index Fund)
  • 15% in short-term treasuries (yielding ~4.9%)
  • 6% in real estate fund (focused on Walgreens properties)

• Living Strategy:

  • Lives entirely off current income (podcast, other companies, wife's income)
  • Doesn't touch the principal from company sale
  • Keeps $100-200k in checking/savings
  • Any amount above that goes straight to investment fund

• Conservative Mindset:

  • Goal was to sell a business by age 30 for financial security
  • Aims to draw only 3% annually from investments (though currently draws nothing)
  • Believes most people should make money through starting/owning companies, not investing
  • Values wealth preservation over wealth creation

• Portfolio Management:

  • Doesn't include private company valuations in net worth calculations
  • Holds onto stock from acquisitions (Hubspot) and wife's company (Airbnb)
  • Maintains Bitcoin purchased in 2014, hasn't sold
  • Consistently maxes out 401k

• Monthly Finances:

  • Spends approximately $25-30k monthly
  • Tracks income monthly
  • Uses Tiller for tracking accounts in Google Sheets
  • Conservative with spending, struggles to spend on himself

• Investment Philosophy:

  • Believes starting a company is the best path to wealth before 30
  • Avoids active investing
  • Focuses on reducing stress through simple, conservative investments
  • Maintains extreme discipline in not selling investments