Module 6 · Lesson 4
Building a Reinvestment Rule
Writing the rule that governs asset income, including where it goes and when the rule changes.
Full Access material
Building a Reinvestment Rule is part of Full Access
Writing the rule that governs asset income, including where it goes and when the rule changes.
- What you produce
- Convert income from productive assets into more productive assets deliberately and consistently.
Educational material only. Nothing here is investment, tax or legal advice.
Reflection question
At what point would you want reinvestment to stop, and have you written that point down anywhere?
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How this applies by framework phase
The same material reads differently depending on what your capital needs to do next. You may be in more than one phase at a time.
- Capital Building
- Read this as a question about direction: which surplus, which income stream, and which asset should the next dollar move toward — and what would make that move durable rather than opportunistic?
- Capital Conversion
- Read this as a question about productivity: what is the capital you already own currently doing, what cash flow could it support, and what drag, liquidity or liability constraint has to be handled before it can do more?
- Capital Preservation
- Read this as a question about durability: what could force a sale at the wrong time, how much liquidity keeps that from happening, and how is purchasing power protected without abandoning growth entirely?