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FOUNDATIONS WEALTH-BUILDING

WHAT WEALTH REALLY IS (AND IS NOT)

KEY CONCEPTS:

Wealth is a system — not a product.

Wealth is built through:

Repeated decisions over time

Protection against loss

Discipline during uncertainty

Patience, not speed

Notes:

Income alone does not equal wealth.

Wealth is what remains after expenses, mistakes, taxes, and life events — and what can continue working for you.

Wealth is NOT:

A single investment

A seminar or course

A “secret strategy”

A shortcut or loophole

A personality-driven system

Note: If wealth were fast or easy, it wouldn’t be rare.

COMMON PITFALLS

Believing one decision will “change everything”

Confusing a good year with a good strategy

Measuring success by returns instead of resilience

WHEN TO PAUSE

If someone promises speed, certainty, or exclusivity

If the explanation relies on urgency or secrecy

MISSION MINDSET

Real wealth is built quietly and defensively.

Goal

Understand how fiduciary planners and regulators organize wealth decisions—so you can recognize incomplete or misleading advice.

MUST-KNOW RESOURCES

CFP Board – What Is Financial Planning

https://www.cfp.net/why-cfp-certification/financial -planning

SEC Investor Education https://www.investor.gov

https://www.cfp.net/why-cfp-certification/f inancial-planning https://www.investor.gov/

https://www.cfp.net/why-cfp-certificati

https://www. nra.org/investors#/

Recognize how emotions, stress, and overconfidence—not lack of knowledge—drive most financial mistakes. Vanguard – Behavioral Finance & Investor Behavior

https://investor.vanguard.com/investor-resources-education/article/ https://investor.vanguard.com/investor-resources-

https://www.morningstar.com/personal- nance

Understand risk clearly so you never rely on hope, hype, or incomplete explanations.

KEY CONCEPTS:

Risk is more than just losing money

Risk includes:

COMMON PITFALLS

Believing “low risk, high return” claims

Ignoring worst-case scenarios

Loss Risk

The possibility of losing principal

Liquidity Risk

Not being able to access money when needed

Leverage Risk

Using debt to invest

Complexity Risk

Not fully understanding how something works

Concentration Risk

Too much reliance on one asset or strategy

SEC – Understanding Risk & Return Goal

Notes:

Higher potential returns always come with tradeoffs. There are no exceptions.

Volatility (ups and downs) is not the same as danger—but ignoring risk is.

If the downside cannot be clearly explained, the risk is not understood.

Assuming diversification eliminates all risk

WHEN TO PAUSE

If the downside is vague or minimized

If risks are dismissed as “unlikely” or “overblown”

MISSION MINDSET:

Survival comes before growth.

MUST-KNOW RESOURCES

https://www.investor.gov/introduction-in vesting/investing-basics/investment-pr oducts/understanding-risk-and-return

https://www.investor.gov/introduction-investing/ investing-basics/investment-products/ understanding-risk-and-return

FINRA – Risk Tolerance & Investment Risk

https://www.finra.org/investors/learnto-invest/understanding-risk

https://www.finra.org/investors/l earn-to-invest/understanding-ri

PROTECT BEFORE YOU BUILD

KEY CONCEPTS:

Protection keeps you in the game.

Before focusing on growth, real wealth builders ask a simple question:

“What could wipe me out?”

Protection includes:

Insurance against catastrophic loss

Avoiding irreversible financial decisions

Planning for events you cannot control

Notes:

Protection is not pessimism. It is strategy.

You cannot compound wealth after a catastrophic loss.

Insurance is a risk-transfer tool, not an investment strategy.

Growth without protection is exposure, not progress.

COMMON PITFALLS

Treating insurance as optional or unnecessary

Delaying protection because it feels “unproductive”

Believing good health or steady income eliminates risk

WHEN TO PAUSE

Before committing to long-term or irreversible financial decisions

If protection is dismissed as “fear-based” or “old-fashioned”

MISSION MINDSET

Protection keeps you in the mission.

MUST-KNOW RESOURCES

NAIC – Consumer Insurance Guide

Goal

Understand why protection must come before growth—and how one unprotected event can undo years of progress.

https://content.naic.org/consumer

CFPB – Insurance Basics & Consumer Protection

https://www.consumer nance.gov/consumer-tools/insurance/

https://www.consumerfinance.gov/consumer-tools/insurance/

Understand why access to cash is a strategic advantage—not a missed opportunity.

KEY CONCEPTS:

Liquidity equals flexibility.

Liquidity is your ability to:

Access money quickly

Transitions often involve income uncertainty

Note: Liquidity absorbs shocks that investments cannot.

COMMON PITFALLS

Respond to unexpected events

Avoid forced or emotional decisions

Notes:

Cash serves a different role than investments. Its job is not to grow—it is to protect choice.

Liquidity prevents selling investments at the wrong time.

Cash reduces reliance on high-interest debt.

Liquidity buys time, and time improves decisions.

MILITARY & VETERAN CONTEXT

PCS delays and benefit timing gaps are common

BAH changes or pay corrections can take time

Investing emergency funds

Over-leveraging to “maximize returns”

Treating all cash as wasted money

WHEN TO PAUSE

If an investment would eliminate your safety net

If access to funds becomes restricted or unclear

MISSION MINDSET:

Flexibility is strength.

MUST-KNOW RESOURCES

CFPB – Building Emergency Savings

https://www.consumerfinance.gov/consumer -tools/savings/

https://www.consumerfinance.gov/co nsumer-tools/savings/

FDIC – Emergency Fund Guidance

https://www.fdic.gov/resources/consumers/ consumer-news/2022-12.html

https://www.fdic.gov/consumer-resour ce-center/2022-12/avoid-scams-while

ASSET CLASSES: ROLES, NOT HYPE

KEY CONCEPTS:

Every asset has a role, not a ranking.

Common asset classes include:

Cash: Stability and liquidity

Stocks: Long-term growth through ownership

Bonds: Stability and income

Real Estate: Shelter, leverage, income, inflation hedge

Alternatives: Higher complexity and risk, limited transparency

Notes:

No asset is “good” or “bad.” The risk comes from using the wrong asset for the wrong purpose.

Chasing performance ignores context.

What works for one person may be inappropriate for another.

Understanding the role matters more than predicting returns.

COMMON PITFALLS

Treating assets as trends

Concentrating too heavily in one category

Assuming higher complexity means higher sophistication

WHEN TO PAUSE

If you cannot clearly explain what an asset is meant to do

If the explanation relies on jargon instead of clarity

MISSION MINDSET

Context matters more than categories.

MUST-KNOW RESOURCES

FINRA – Asset Allocation Basics

Goal

Understand what different asset classes are meant to do—so you don’t chase trends or misuse tools.

https://www.finra.org/investors/learn-to-invest/basics/asset-allocation

https://www. nra.org/investors/learn-to-invest/basics/asset-allocation

SEC – Investment Products Overview

https://www.investor.gov/introduction-investing/investing-basics/investment-products

ACCOUNTS VS. INVESTMENTS: A CRITICAL DISTINCTION

Goal

Understand the difference between where your money is held and how it is invested—so you don’t make costly rollover or allocation mistakes.

KEY CONCEPTS:

Accounts are containers; investments are what’s inside them.

COMMON PITFALLS

Blindly rolling over retirement accounts

Common accounts (containers) include:

401(k), 403(b)

IRA (Traditional or Roth)

Thrift Savings Plan (TSP) Brokerage accounts

Investments are what you choose inside those accounts, such as:

Exchange-traded funds (ETFs)

Notes:

The account determines tax treatment and rules.

The investment determines risk and return. Saying “I invested in a 401(k)” is incomplete. You invest through an account, not in an account.

Poor investment choices can exist inside good accounts.

Confusing tax advantages with investment quality

Assuming account type alone guarantees success

WHEN TO PAUSE

Before moving or consolidating retirement accounts

If someone pressures you to “roll it over now” without explanation

MISSION MINDSET:

Structure matters.

SEC – Retirement Accounts & Investing Basics

https://www.investor.gov/introduction-inv esting/investing-basics/retirement-accou

https://www.investor.gov/introduction-investing/ investing-basics/retirement-accounts

Thrift Savings Plan (TSP) https://www.tsp.gov

https://www.tsp.gov/

FEES, INCENTIVES & CONFLICTS OF INTEREST

KEY CONCEPTS: Money flows toward incentives.

Financial professionals may be paid through:

Commissions

Asset-based fees

Flat fees

Sales bonuses or incentives

How someone is paid can influence:

What they recommend

How urgently they push

What risks are emphasized—or minimized

Notes:

“Free advice” is rarely free.

A fiduciary is required to act in your best interest; not all professionals are fiduciaries.

Incentives do not automatically mean bad intent—but they do require scrutiny.

COMMON PITFALLS

Assuming all advisors are fiduciaries

Not asking how someone is compensated

Confusing trustworthiness with credentials

Understand how the financial industry gets paid—so you can recognize bias, pressure, and hidden incentives.

WHEN TO PAUSE

If urgency or pressure replaces explanation

If compensation details are unclear or avoided

MISSION MINDSET

Follow incentives, not promises.

MUST-KNOW RESOURCES

FINRA BrokerCheck https://brokercheck.finra.org

https://brokercheck. nra.org/

SEC – Investment Adviser Public Disclosure

https://adviserinfo.sec.gov

https://adviserinfo.sec.gov/

Goal

Recognize modern financial scams and high-pressure tactics—especially those targeting military members and veterans.

KEY CONCEPTS:

Scams today look professional.

COMMON PITFALLS

Guaranteed or “risk-free” returns

Modern financial scams often include:

Polished websites and branding

Professional presentations

Testimonials and “success stories”

Veteran or military-affiliated language

Claims of exclusive or insider access

Notes:

Legitimacy is often performed, not proven.

Veteran branding does not guarantee credibility.

If it sounds too good to be true, it is.

No legitimate investment guarantees returns.

Pressure to act quickly

Claims of special access for veterans

Dismissing warnings because the presenter “seems trustworthy”

WHEN TO PAUSE

If secrecy, urgency, or exclusivity is emphasized

If you are told not to seek outside advice

MISSION MINDSET: Pause is protection.

MUST-KNOW RESOURCES

FTC – Scam Alerts & Reporting

https://reportfraud.ftc.gov

https://reportfraud.ftc.gov/

FINRA – Fraud & Scam Center

https://www.finra.org/investors/alerts

https://www. nra.org/investors/insights

LIFE EVENTS & FINANCIAL DECISION WINDOWS

KEY CONCEPTS:

Most bad financial decisions happen during life transitions.

Certain moments significantly increase vulnerability to mistakes, pressure, and scams:

PCS moves

Deployment or reintegration

Transition or separation from service

Medical events or disability determinations

Divorce, remarriage, or survivor situations

Inheritances, bonuses, back pay, or lump-sum payouts

These periods often involve:

Emotional stress

Time pressure

Incomplete information

Sales outreach framed as “help”

Notes:

Stress reduces decision quality—even for smart, disciplined people.

Permanent financial decisions should not be made during temporary disruption.

COMMON PITFALLS

Making long-term commitments during short-term uncertainty

Accepting “now or never” offers during transitions

Believing urgency equals opportunity

WHEN TO PAUSE

During any major life change

If a decision feels rushed because of timing, paperwork, or pressure

MISSION MINDSET

Timing matters.

Goal

Understand why major life events increase financial risk—and how to avoid making permanent decisions during temporary stress.

MUST-KNOW

RESOURCES

Military OneSource – Financial Counseling & Transitions

https://www.militaryonesource.mil/financial-legal/

https://www.militaryonesource.mil/financial-legal

CFPB – Managing Finances During Life Changes

https://www.consumerfinance.gov/consumer -tools/life-events/

Goal

Recognize why complexity increases the likelihood of failure—even when outcomes appear attractive.

KEY CONCEPTS:

COMMON PITFALLS

If you don’t understand it, you don’t own it.

Complexity introduces risk through:

Hidden assumptions

Interlocking dependencies

Limited transparency

Reliance on others’ performance

Notes:

Many financial losses occur not because a strategy was “bad,” but because it was too complex to manage or explain.

Complexity is often marketed as sophistication.

Simple, well-understood strategies tend to be more durable over time.

Complexity makes it harder to recognize when something is going wrong.

Exotic or “alternative” investments without clear explanations

Over-engineered strategies that require constant oversight

Believing complexity equals intelligence or exclusivity

WHEN TO PAUSE

If an explanation relies on jargon instead of clarity

If you are discouraged from asking questions

MISSION MINDSET: Simple scales. Complex breaks.

MUST-KNOW RESOURCES

CFP Board – Choosing Financial Strategies Wisely

https://www.cfp.net/financial-planning/financi al-planning-basics

https://www.cfp.net/financial-planning/financial -planning-basics

SEC – Understanding Investment Complexity

https://www.investor.gov/introduction-investing/ investing-basics

https://www.investor.gov/introduction-investin g/investing-basics

POPULAR WEALTH MODELS: CONTEXT, NOT JUDGMENT

KEY CONCEPTS:

No single wealth model fits every life.

Popular financial figures and systems often emphasize:

Motivation and discipline

Simple rules or narratives

Strong opinions about debt, investing, or real estate

Notes:

While some ideas may be helpful, personality-driven systems are not personalized plans.

What works for one person may be inappropriate—or risky—for another.

Good financial decisions require context, not slogans.

Questioning advice is a sign of responsibility, not disrespect.

COMMON PITFALLS

Blindly following one system

Treating motivation as a substitute for planning

Ignoring personal circumstances to “stick to the rules”

WHEN TO PAUSE

If advice discourages questions or outside perspectives

If disagreement is framed as ignorance or fear

MISSION MINDSET

Think independently.

Learn how to evaluate popular financial advice frameworks without blindly following personalities or slogans. Goal

MUST-KNOW RESOURCES

CFPB – Choosing Financial Help

https://www.consumerfinance.gov/consumertools/financial-advisors/

FINRA – Evaluating Financial Advice

https://www.consumerfinance.gov/consume r-tools/financial-advisors/ https://www.finra.org/investors/investing

https://www.finra.org/investors/learn-to-invest

BOOTS2WEALTH™ FOUNDATIONS QUICK DIAGNOSTIC

KEY CONCEPTS: This is a self-check, not a test. This diagnostic is designed to: Highlight strengths | Identify gaps | Encourage thoughtful pacing | Point you to the right next step

Note: Check what is true today. Answers may change over time—and that’s normal.

SECTION A — PROTECTION & STABILITY

I have an emergency reserve, even a small one

I understand what insurance I have and why

One unexpected event would NOT wipe me out financially

I’m not dependent on a single income source or asset

Note: If fewer than two boxes are checked, focus on Protection & Liquidity first.

SECTION B — DECISION CONFIDENCE

I don’t feel rushed when making financial decisions

I understand risk vs. reward in plain language

I’m comfortable saying “I need time to think”

My decisions are deliberate, not reactive

Note: Frequent pressure or urgency signals a need to slow down and revisit Foundations.

SECTION C — SCAM & SALES AWARENESS

I question guaranteed or “risk-free” returns

I understand how financial professionals are paid

I avoid major decisions during stress or transition

I know veteran-branded offers can still be scams

Note: Uncertainty here is a sign to revisit Fees, Incentives & Scams.

SECTION D — ASSET UNDERSTANDING

I know the difference between accounts and investments

I understand the role of stocks, bonds, cash, and real estate

I don’t invest in things I don’t understand I’m not chasing trends or hype

Note: If unclear, pause before moving into Investing or Real Estate education.

SECTION E — REAL-LIFE READINESS

A PCS, deployment, or transition wouldn’t force bad decisions

I plan for change, not just best-case outcomes

I understand my military or veteran benefits at a high level

I know when to ask for help

Note: Note: Life changes increase risk. Planning for flexibility matters.