QVGS Wealth waterfall

QVGS Wealth Waterfall

Investment Plan for the purpose of becoming rich, staying rich, creating new wealth, and leaving a legacy

Overview

Designed to cover life, the QVGS Wealth Waterfall starts by funding contingencies to create a psychological buffer. It then proceeds to fund retirement, which may happen unexpectedly from the present till a formal event. The Wealth Waterfall then proceeds to accumulate wealth to ensure the individual or family stays rich. Finally, the waterfall spills the excess funding into wealth creation and eventually creates a legacy.

Wealth Levels

Wealth is Relative

The QVGS Wealth Waterfall is an investment journey through wealth levels. This means investors at any stage of wealth have a targeted portfolio suitable to the amount of wealth circulating in their lives. Wealth levels typically change over time as society grows. However, at a given point of time (and over a short period of time), wealth levels remain constant and can be estimated well. We have identified 4 wealth levels in progressive order.

Key Features

Warterfall Design Principles

Investment Objectives

Core & Satellite Objectives
of the QVGS Wealth Waterfall

Core Objectives
Satellite Objectives
Portfolio Cascade

Core & Satellite Portfolios
of the QVGS Wealth Waterfall

Core Portfolios
Satellite Portfolios
Typical Journey

Wealth is relative, but at a point of time
Wealth Levels are absolute

The typical value of financial assets associated with wealth levels at present are:

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QVGS Waterfalls

Ready-made Investment Plans
for Individuals and Families

Waterfall Model

The pecking order of funding

The Waterfall Model is a method of splitting available funding among different needs and desires that allow for funds to follow an uneven distribution. The Waterfall Model can be thought of as a series of pools that fill up with the available funding and then once full, spill the excess funding into the additional pools that are lower in the pecking order (of needs and desires).

While some of the needs and desires are common to most individuals and families, others can be highly personalized to the specific investor. The key to successfully investing, in order to fulfill the needs and desires, an investor should be able to prioritize them in a structured and logical way without biases and events clouding the judgment of the investor.

Some of the needs are essential and weaved so deeply into the structure of life, that they may be overlooked easily while the investor is focussed on the more obvious aspirational desires. The solution to defining the pecking order is to follow an investment plan which covers the expected and unexpected aspects of investing for individuals and families.

QVGS Goals waterfall
Investment Plan for the purpose of funding and financing goals
QVGS Cash flow waterfall
Investment Plan for the purpose of supplementing and replacing income or generating profits