What The Wealthy Do

Bonds do not exist in a vacuum. They respond to what is happening in the economy, what the Federal Reserve is doing, and what risks are present in the market. And if you understand those relationships, you can predict how bonds will perform, how stocks will perform, and how to protect your portfolio when things get volatile.This is Episode 16 of What the Wealthy Do, Part 2 of the Bonds Series. Last week we covered the basics of what bonds are and how they work. Today Stephanie Dorsey goes deeper into two of the most powerful concepts in finance: the relationship between interest rates and bond prices, and the yield curve.The single most important rule in bond investing is that bond prices and interest rates move in opposite directions. When rates go up, bond prices go down. When rates go down, bond prices go up. Stephanie walks through exactly why using a real example, and what it meant for everyday investors when the Federal Reserve raised interest rates from near zero to 5% in just 18 months in 2022. Some bond funds lost 15 to 20% of their value that year. Investors who understood this relationship either held to maturity or bought bonds at a discount to lock in higher yields. The ones who did not understand it got crushed.The second concept is the yield curve, which Stephanie calls the bond market's crystal ball. The yield curve shows what return you would earn today if you lent money for different lengths of time. A normal yield curve slopes upward because longer term bonds pay more than shorter term ones. But when it inverts, meaning short term bonds start paying more than long term ones, it has predicted every major recession in the last 50 years, typically six to 18 months before it happens. It happened in 2006 before the Great Recession. It happened in 2019 before the COVID crash.Sophisticated investors watch the yield curve obsessively. And now you will too.Join the next Sovereign Collective cohort for high-earning Black women ready to build real generational wealth: joinsovereign.coThis podcast provides financial education and not financial advice.

Last week was the problem. This week is the solution.This is Episode 14 of What the Wealthy Do, Part 2 of the Retirement Strategy Series. In Part 1 we covered why relying solely on your 401k is risky, how the retirement tax trap works, and what required minimum distributions will do to your money at 73 if you have not planned for them. Today Stephanie Dorsey builds the actual blueprint.The framework covers three pillars. The first is tax diversification, which means spreading your retirement money across four buckets: tax deferred accounts like your traditional 401k and IRA, tax free accounts like your Roth IRA and Roth 401k, a regular brokerage account, and alternative investments like real estate, private equity, and venture capital. Each bucket has different tax treatment, different rules, and different advantages depending on where you are in your career and what tax bracket you expect to be in at retirement.The second pillar is asset diversification across stocks, bonds, real estate, and alternative assets. The third pillar is income stream diversification so that no single account or market crash can wipe out your retirement income.This episode also breaks down how your retirement strategy should shift by age, from aggressive wealth building in your late 30s and early 40s, to tax optimization in your late 40s and early 50s, to preservation and income planning in your late 50s and early 60s, to tax smart withdrawals and legacy planning in retirement. The backdoor Roth IRA strategy for high earners is covered, along with how the wealthy use portfolio loans to avoid selling their investments, how to think about Social Security timing at 62 versus 70, and the specific action steps you need to take right now to audit and rebalance your accounts.This is one of the most practical episodes in the series. By the end you will have a clear picture of what your retirement strategy should look like and exactly what to do next.Join the next Sovereign Collective cohort for high-earning Black women ready to build real generational wealth: joinsovereign.coThis podcast provides financial education and not financial advice.

There are people out here with fancy websites, impressive titles, and slick pitch decks who have no business managing anybody's money. This episode is your protection against all of them.This is Episode 12 of What the Wealthy Do and the finale of the Due Diligence Series. Over the past three episodes we broke down how to evaluate stocks and how to assess private equity and venture capital deals. Now we go one level deeper. Today is about vetting the people who are asking you to trust them with your hard earned money.Here is the brutal truth most investors don't realize until it's too late. The fund manager matters more than the fund. A great manager can turn a mediocre strategy into outsized returns. A bad manager can destroy even the best one.Stephanie Dorsey, CEO and Co-Founder of Margins Capital, walks you through the exact four-pillar framework that sophisticated investors use to evaluate any fund manager, wealth advisor, or investment firm. She even applies it to herself. Because anyone who gets an attitude when you ask hard questions about their track record, their fees, or their process is telling you everything you need to know.The four pillars are track record and performance, investment philosophy and process, team and organizational structure, and integrity and alignment of interests. You will also learn how to run a background check on any fund manager, how to use AI to review a Limited Partner Agreement without paying a lawyer, and what questions to ask reference investors before you commit a single dollar.A note on emerging managers is also included, including why the data shows they often outperform more established funds, and what to reasonably expect when evaluating a newer firm.Margins Capital has a minimum investment of $25,000 and invests 20% of its own capital in Fund 1 alongside its investors.Just 20 seats for high-earning Black women ready to stop second-guessing and start building real generational wealth. Learn more at joinsovereign.co.This podcast provides financial education and not financial advice.That is a wrap on the Due Diligence Series. You now have the complete framework the wealthy use to evaluate stocks, private equity deals, venture capital opportunities, and the people managing it all. Share this episode with someone in your circle who needs to hear it, leave us a five-star review on Apple Podcasts or Spotify, and if you are ready to invest in a diversified portfolio of institutional quality alternatives starting at just $25,000 with a team that has skin in the game right alongside you, visit Margins Capital at https://www.marginscapital.com/ See you next week.

Most people give up on analyzing stocks because they try to learn 20 metrics at once. The wealthy don't do that. They focus on the numbers that actually matter — and that's exactly what this episode is about.This is Part 2 of our Stock Due Diligence Series. In Part 1, we covered how to think qualitatively about a company — does the strategy make sense and can they win? Now, in Part 2, Stephanie Dorsey (CEO & Co-Founder of Margins Capital) breaks down the 5 essential metrics you need to evaluate any stock, in plain language, no finance degree required.What you'll learn in this episode:1. PE Ratio — Are you overpaying for the stock? How to compare it to the company's history, its industry, and the S&P 500 average.2. Profit Margin — How much of each dollar in revenue does the company actually keep? What's healthy vs. a major red flag depending on the industry.3. Revenue Growth — Is the business growing or dying? Because one of those two things is always happening.4. Debt-to-Equity Ratio — Can the company handle its debt obligations? Too much debt is dangerous, especially when interest rates shift.5. Free Cash Flow — Is the profit real, or just accounting magic? This is the metric the wealthy swear by.Master these 5 and you'll know more than 90% of retail investors. Combine them with the qualitative framework from Part 1 and you'll know more than 97%.Where to find these numbers for FREE: Yahoo Finance, Google Finance, your brokerage app (Fidelity, Schwab, Robinhood), or the company's investor relations page (look for the 10-K or 10-Q).Join The Sovereign Collective — a judgment-free space for high-earning Black women ready to build generational wealth. Founding cohort launches April 14th. Just 20 seats. Learn more at joinsovereign.coMargins Capital provides women and people of color access to an institutional quality portfolio of alternative investments.This podcast provides financial education, not financial advice.

Welcome back to Season 2, Episode 8 of What the Wealthy Do.In this final episode of our Alternative Investment Series, Stephanie Dorsey, CEO and Co-Founder of Margins Capital, breaks down one of the most overlooked — yet powerful — wealth strategies used by the ultra-wealthy:Investing in fine art and luxury goods.We’re talking about assets like paintings, watches, handbags, wine, sneakers, and even classic cars — not as status symbols, but as strategic investments that can appreciate, hedge inflation, and diversify your portfolio.In this episode, we cover:• How fine art and luxury goods actually generate returns• Why wealthy investors allocate to passion assets• Art market fundamentals: artist recognition, provenance, rarity• Luxury assets like Rolex, Birkin bags, sneakers, wine, and classic cars• How these assets hedge against inflation• Risks: illiquidity, authenticity, storage, and market trends• How to get started (even without millions)This episode is about shifting your mindset:Wealthy investors don’t just spend money.They acquire assets that appreciate — and enjoy them while they grow.Because wealth isn’t just built in spreadsheets.It’s built in how you allocate your money, your lifestyle, and your strategy.Subscribe for more conversations on alternative investments, private markets, and generational wealth in the United States.

Welcome back to Season 2, Episode 6 of What the Wealthy Do.In this episode, Stephanie Dorsey, CEO and Co-Founder of Margins Capital, breaks down one of the most mysterious and misunderstood investment vehicles in finance:Hedge funds.You’ve heard the term in the news, in movies, and in conversations about billionaires and institutional investors. But what actually is a hedge fund — and why do wealthy investors allocate billions of dollars to them?In this episode, we unpack:• What hedge funds actually are • How hedge funds make money in bull and bear markets • The famous “2 and 20” fee structure • Long/short equity, global macro, quant funds, and arbitrage strategies • Why institutional investors use hedge funds for diversification • The risks, high fees, and transparency issues investors should know • Why understanding hedge funds can make you a smarter investorThis episode is part of our Alternative Investment Series, where we break down the strategies wealthy investors use to build and protect generational wealth.Even if you never invest in a hedge fund directly, understanding how they operate will help you better understand risk management, portfolio construction, and how money actually moves in financial markets.Because wealth isn’t accidental.It’s structured.Subscribe for more conversations about alternative investments, private markets, generational wealth, and financial strategy in the United States.

Welcome back to Season 2, Episode 4 of the What the Wealthy Do podcast!In this episode, Stephanie Dorsey sits down with Erin Harkless-Moore, investment leader at Pivotal Ventures, to explore how women-led investing, private markets, and the care economy are reshaping wealth and opportunity in the United States.We dive into:• How women-led funds are changing access to capital• Why diversity and inclusion drive better returns• The massive $640B care economy and investment opportunities• Risk management, portfolio strategy, and alternative investments• Lessons for sophisticated retail investors looking to grow wealth💡 If you want to understand how wealthy investors make strategic moves, leverage private markets, and create impact while building long-term wealth, this episode is a must-watch.Because wealth isn’t accidental—it’s structured.Subscribe for more insights: @WhatTheWealthyDo Check out the High Earner Tax Playbook: www.whatthewealthydo.com

Welcome back to Part 2 of Season 2, Episode 1 of What the Wealthy Do.In this continuation of Inside the Rooms We’re Rarely In, Stephanie Dorsey and Yashnika go deeper into one of the most important questions in investing:Are alternative investments actually right for you?This episode breaks down:What “suitability” really means in private equity and alternative investmentsAccredited investor vs. qualified purchaser explainedRisk tolerance vs. emotional relationship with moneyWhy the traditional 60/40 portfolio is being challengedHow inflation impacts long-term wealth buildingWhy financial education is critical in America todayWe move beyond theory and talk about the real barriers — psychological, cultural, and structural — that impact who participates in private markets and who doesn’t.Because building wealth isn’t just about having money.It’s about understanding it.Subscribe to What the Wealthy Do for real conversations about private equity, alternative assets, generational wealth, and financial power.Remember: You belong in every room you enter.

Most people mentally check out at the end of the year.The wealthy do the exact opposite.In this episode of What the Wealthy Do, we break down how wealthy individuals strategically close the year—because how you finish the year directly impacts how well you start the next one.This isn’t about hustle. It’s about reflection, tax strategy, portfolio alignment, and preparation.How the wealthy review their year (money, time, and energy)Year-end tax strategies most people overlookHow to reduce taxes legally before December 31Portfolio rebalancing: money and lifeWhy November & December are strategic months for wealthHow wealthy investors set January up before vacationA simple reflection framework to plan your next levelIf you’ve ever felt like you’re working hard but not getting ahead, this episode shows you how to stop coasting and start closing the year like an investor.💡 Like, follow, and subscribe to learn how the wealthy think, plan, and build long-term wealth.

In this episode of What the Wealthy Do, we break down Crypto — what cryptocurrency really is, where Bitcoin came from, how blockchain works, and why the wealthy treat crypto as a long-term play instead of a gamble.You’ll learn: • The real history behind Bitcoin and the 2008 financial crisis • How the blockchain works (in simple, visual language) • Why Bitcoin is capped at 21 million • What makes crypto secure (and what makes people lose money) • The difference between Bitcoin, Ethereum, altcoins & stablecoins • Why wealthy investors allocate 1–5% into crypto • Whether crypto is hype, gambling, or a real investment • Why Warren Buffett thinks it’s gambling — and why the wealthy disagreeIf you want to finally understand crypto, Bitcoin, blockchain, and digital money — this episode is your blueprint.👉 Like, follow, and subscribe so you never miss episodes breaking down exactly what the wealthy do to build wealth. 👉 Share this episode with someone who needs to understand crypto without the hype.

Venture capital is the “high-risk, high-reward” investment strategy the wealthy use to get in early on companies before they become billion-dollar unicorns like Airbnb, Uber, SpaceX, or Canva. 🚀In Episode 21 of What the Wealthy Do, host Stephanie Dorsey breaks down how venture capital really works, how investors make money, the stages of startup funding, and why this asset class is one of the most powerful tools in private markets.If you’ve ever wondered:How do the wealthy invest in startups?What is venture capital?Why do VCs make so much money when a company “hits”?How risky is startup investing?How can YOU start learning this strategy?…this episode gives you a full, simple, beginner-friendly breakdown.💡 In this episode you’ll learn: • What venture capital (VC) actually is • The stages: Pre-Seed, Seed, Series A, B, C & later rounds • How VCs make money (management fees + carried interest) • Why only 20% of startups hit — and why wealthy investors still do it • How venture funds pick companies • How investors get paid when a company goes public or gets acquired • How regular people can start learning about VC • The truth about the real risks in startup investingIf you're building wealth or looking to diversify beyond stocks and real estate, this episode gives you the blueprint the wealthy already use.👉 Don’t forget to subscribe on YouTube, Apple Podcast, and Spotify.👉 Share this with a friend who wants to level up their wealth-building journey.

Ever wondered how the wealthy invest beyond stocks and bonds? 🤔 In this episode of What The Wealthy Do, we’re breaking down four major investment vehicles that ultra-wealthy individuals use to grow their money — funds, SPVs (syndications), angel investing, and direct investing.💡 You’ll learn what each model means, how they work, and the pros and cons of using them to access private markets. Whether you’re curious about building wealth through alternative investments or just want to understand how rich investors play the game — this episode is for you.📈 Key Takeaways:The difference between funds, SPVs, angel, and direct investingHow the wealthy use these models to scale their wealthWhy access to private markets changes the game✨ Tune in, take notes, and start thinking like the wealthy. If you’re ready to elevate your money mindset — like, follow, and subscribe to What The Wealthy Do for more insights every week.

Ever wondered why the wealthy don’t just invest in stocks and bonds? In this episode of What the Wealthy Do, host Stephanie Dorsey breaks down the difference between public and private capital markets, revealing how ultra-high-net-worth individuals are building wealth through alternative investments like real estate, venture capital, and private equity.💡 The wealthy invest differently — and it’s not just luck.📉 Relying only on the traditional 60/40 stock-bond portfolio no longer works in today’s market.💰 Discover how adding alternative investments can diversify your portfolio, reduce risk, and grow your wealth faster.🎧 Tune in now to learn how to apply these wealth strategies to your own financial journey.