LEVELS of INVESTMENTS

Summary

This video from Alux.com breaks down the eight levels of investing, showing how financial growth and wealth-building evolve from $0 per month to generational control. It begins with foundational strategies for those with little to no assets, emphasizing knowledge and discipline, then progresses through stages of increasing investment—from micro-investing and ETFs to real estate, venture capital, and complex financial structures. Higher levels focus on leveraging influence, protecting assets, and building enduring systems, culminating in legacy-level wealth where investments secure family futures and societal impact. The video also warns against illusionary investing, distinguishing real progress from gambling disguised as growth.

Takeaways

• 😀 Takeaway 1: The bottom 50% of Americans hold zero investable assets, which keeps them in poverty. The top 10% own 88% of all the stocks, making them rich.
• 😀 Takeaway 2: The more investments you have and the higher quality they are, the more you move up in society from an economic perspective.
• 😀 Takeaway 3: At Level 1 ($0/month), your biggest investment is mental. You need to stop leaking money and start learning. The goal is to stop being stuck.
• 😀 Takeaway 4: At Level 2 ($100/month), you start learning by making small, consistent investments. This is about developing the habit and confidence to grow financially.
• 😀 Takeaway 5: At Level 3 ($1,000/month), you become a real investor with automated, consistent investments. You focus on long-term growth rather than short-term gains.
• 😀 Takeaway 6: Level 4 ($10,000/month) is where you start building your identity as an investor. You invest in real estate, startups, and other opportunities, leveraging capital for growth.
• 😀 Takeaway 7: At Level 5 ($100,000/month), you focus on systems that generate income, such as real estate, VC syndicates, and investments that pay you consistently.
• 😀 Takeaway 8: At Level 6 ($1M/month), you manage your wealth through companies, trusts, and strategic structures. Your focus is on asset protection and generational wealth.
• 😀 Takeaway 9: At Level 7 ($10M/month), you shape markets by owning companies and making strategic investments. At this point, you prioritize control and sovereignty over status.
• 😀 Takeaway 10: Level 8 is about creating a legacy through ownership of entire companies, philanthropy, and long-term societal impact. The goal is to ensure wealth is transferred across generations.

Q & A

What percentage of Americans hold zero investable assets, and what does this imply about their economic status?

The bottom 50% of Americans hold zero investable assets. This implies that they are considered poor because they lack financial resources that could generate wealth over time.

How much of the stock market do the top 10% of Americans own, and what does this indicate?

The top 10% of Americans own 88% of all stocks. This indicates that they are wealthy, as a significant portion of their wealth is tied to investments that generate long-term returns.

What is the main focus for someone at Level 1 of investing ($0 to invest)?

At Level 1, the main focus is on investing in knowledge and financial literacy rather than money. The goal is to stop leaking money and begin learning the principles of wealth building.

What behaviors characterize Level 2 investors who invest around $100 per month?

Level 2 investors dabble with small investments in ETFs or fractional shares. They are learning about compound interest, dividends, and holding investments long-term. Their money isn’t working hard yet, but they are developing financial discipline.

How does investing change at Level 3 ($1,000 per month)?

At Level 3, investing becomes consistent and deliberate. Investors use automated contributions, Roth IRAs, and ETFs, track their net worth, and focus on long-term growth rather than chasing trends.

What new opportunities become available at Level 4 ($10,000 per month) in investing?

At Level 4, investors can start real estate portfolios, back startups, and create opportunities rather than waiting for them. The focus shifts to building scalable, sustainable wealth with leverage.

What differentiates Level 5 investors ($100,000 per month) from previous levels?

Level 5 investors manage large-scale real estate, join VC syndicates, and focus on cash flow and risk management. They have private wealth advisers and emphasize safe, consistent income streams rather than high-risk speculation.

How does wealth management evolve at Level 6 ($1 million per month)?

At Level 6, wealth is managed through companies, trusts, and professional teams. Investors focus on asset flow, strategic holdings, and sovereignty rather than lifestyle, buying large-scale properties and equity in diverse ventures.

What is the primary objective of investors at Level 8 (Generational Control)?

At Level 8, the goal is to secure wealth for future generations. Investors own companies outright, fund education, medical research, and other initiatives, and focus on legacy, influence, and the long-term impact of their assets.

What is the illusion of investing mentioned in the script?

The illusion of investing refers to spending money on assets or trends without understanding them, often using borrowed money or speculative bets. This can appear like investing but is essentially gambling and does not build real wealth.

Why is mental investment emphasized in the early stages of wealth building?

Mental investment is crucial because developing financial knowledge, discipline, and long-term thinking is the foundation for all future wealth-building activities. Without it, monetary investments are likely to fail.

How does the mindset shift from Level 1 to Level 7 in terms of risk and control?

In early levels, investors focus on learning and small-scale growth, often taking high-risk bets. By Level 7, they use risk strategically, invest structurally, and prioritize control, influence, and legal/financial structures over mere returns.