Tag: Mindset

https://youtu.be/t5LMlhVxx20

Hey guys, on today’s podcast, you’re going to be learning about how this will pass a casual mission has been changing and a little bit about masterminding and what happens when you go beyond accredited status and the still idea that I’ve coined the phrase called first-generation.

Personally. , my parents didn’t have a million dollars and, , we’ll be the first generation to go over that threshold. But the journey doesn’t end there, right? In this day and age one to $3 million is not much. It’s, you’re getting off the ground, but what do you do?

And create that legacy. We always talk about getting over that four and a half million dollar network status, because at that point you’ve put yourself on a platform to take it beyond. But at that point you’re comfortable in life. If you haven’t yet, please join our investor club@simplepassivecashflow.com slash club.

Join our email list and enjoy the show as I’m being interviewed in another guy’s podcasts, he’s asking really good questions to me. So I thought I’d also share this with my group. When he treats me

Is going back. So when you’re talking about, okay, I’m in this job, here’s something that can get me out of the rat race at that point.

What did being outside of the rat race mean to you and how has that changed over time? I’ve switched from one hamster wheel to another, ? I’ve gone down this path of putting together a real estate opportunities and I’ve turned it into my new profession. . So I’ve just traded one rat race for another essentially.

But there was a point in there where I was financially free and I realized the point where, for a couple of weeks there, I was this is fun, right? I don’t need to work anymore. And I think you see a lot of personal finance bloggers go on this path, where

they’re just going to go travel abroad for a couple of years. For me, it was a lot quicker than that. It was just maybe a couple of weeks where I was like, yeah, this is late. Taking pictures of my food. I’m posting it on Instagram. It’s lame. . There has to be more to this than just drinking pina coladas with endless time on my hands.

And that’s where this mission came in and when people have different missions, . And when I implore people to help some people trying to find their mission, it’s usually what pisses you off in life. Or at least that’s for me. For some people it’s, battered women, they want to help them louder or homeless dogs, or, for me, it’s just there’s so many hardworking professionals out there that. Worked so hard and did everything that they were supposed to do, pay their taxes by their house to live in which I don’t necessarily agree with. And especially invested on these mainstream, , retail wall street products, where ultimately their returns were just stolen from them.

This is the wrong that I want to correct. And if people just bought a handful of rental properties, I kinda just pressed on with that route. They’d be financially free and by five to 10 years, and that hope and pray in 40 and 50, like the traditional method of it is simple, but it’s very counterintuitive what the wealthy do compared to what normal people do.

But it’s not that hard. And I think that’s why I’ve tried to create simple, passive cashflow.com in such a way to. Distill what the wealthy do, show the paradigms on why you would do it and when you would do it and then put it out in a simple manner that the lay person can understand.

And is your club you’ve met your teachings purely around property, or are you looking at other various sort of passive? Obviously there’s the industry side of the country out of club things as well, which goes a little bit beyond property, but as a general rule, is it in that sort of space where you’re going into all sorts of.

Yeah. I started with investing in stocks and real estate first, but the reason I keep coming back to real estate or kind of three big things, like first real estate is a hard, real asset. It doesn’t just bounce up and down like paper stocks, right? It’s a commodity, right? The brick, the wood, the land, it’s a real asset that sort of acts like a commodity.

The second thing is like a cash flows, right? Cryptocurrency doesn’t really cashflow stocks don’t really cashflow, right? Cashflow is what puts food on a table. And that’s what real estate does, especially when you go after 1% went to value, ratio properties are better, and the last one is like the tax benefits.

Someone needs to make three or four times as more than me in crypto. I keep the same amount of money at the end of it than I do with real estate because of the great tax benefits. And this is where, you start to get insight into how the wealthy do things. Yeah. They invest in better assets, better deals, but when these deals they can do cost segregation, supply all this passive losses out of the investment and use these passive losses to choose how much taxes they would like to pay.

That’s when you start to realize while this is a kind of a twofold kind of strategy here, the whole tax game. Yeah. And going back to your shift in terms of, getting to that point, your financial free a couple of weeks ago and board realizing what your mission was, the thing that pissed you off, and then now driving forward from there.

How is it different from having a mission-based. Business that you’ve got now compared to where it was before. How do you feel about the, what you’re doing? And when I started my podcast back in 2016, it was just a means for me to, a lot of my friends were asking me how do you get buying all these properties that you don’t even visit that are like a couple of thousand miles away?

When I was buying these turnkey rentals at Birmingham, Atlanta, and, I would explain to my friends over lunch, How would do it. And of course, nobody does anything, so I started to make the podcast right, as a way to report the dab thing. So I won’t have to keep repeating myself.

And that was how it started. But then throughout the years, I became more of an accredited investor. The topic materials has changed to more private placements in syndications taxes, legal. And legacy creation. And that was where I started to grasp upon the mission. The mission is that kind of help work and professionals out there learn and see the differences between mainstream financial advice that is put out there.

And what are the real wealthy people doing? And then distilled that and into actionable steps for regular people were really good, hardworking people. It’s the shrinking middle class. They’re endangered species. That’s the target. So how has your relationship changed with your business now that it’s more mission-focused.

I think it it helps figure out like, every day you’re making binary decisions. Should I do use this color or that color? Should I send out this email or that email? Should I put this in my funnel sequence or not? It just kinda clarify as everything, right? What’s the mission?

The mission is to help out, that one dude out there, Andrew, . He’s struggling. He’s struggling to get by. He’s a good saber of this money, right? He’s not financially responsible, but he’s just not seeing she stopped getting any traction. He’s saving up his money, but it’s very slow and he’s paying a lot of taxes at the time.

What does Andrew one, right? What color would I use here at that? But speak to NG one. I know that’s a little weird, but what can I write in this one paragraph here that will resonate with Andrew or have him understand it? And I think a lot of this is like that sort of simple passive cashflow.

The simple part came in. There’s all this noise out there. There’s so much stuff out there. And the truth is. What the wealthy do is very simple. . But the trouble is like getting rid of all this noise for Andrew to understand, all right, what does he do next? Because this is all new to him. And there’s a lot of noise out there. There’s all these lawyers selling this entity, that entity, there’s all these CPAs selling to the strategy of that strategy. You’re infinite banking. This that, that, what is the path? What is the order to implement these strategies? ? What is the simple prescription?

So it gives you clarity at the end of the day, isn’t it, as that’s the word that’s coming through for me there, it’s just, it makes your life a lot easier when you know, what is he doing? . People are strung out. They’re working their butts off, especially with people in my group.

. They’re high paid professionals, high responsibility. They just want to be told what to do for some of the stuff, . Just like when I go into the CrossFit gym, I want to just turn off my brain. I’m just like, tell me what to do. I am running a hundred miles an hour all day at my business. And I’m sure everybody feels the same way at the professional occupations.

Just tell me what to do. . I will listen and I’ll drive a hundred miles per hour, but just tell me what direction to do. And then the hard thing is in this financial world, it’s there’s a lot of, , Bad habits that we’ve been taught by our parents by society. And the real secret sauce is implementing this stuff, right?

So take one thing. If in a banking using whole life insurance, and I think we’ve all heard what how bad whole life insurance is for you, not the case. If you tweak it a certain way, the way the wealthy do it, but also implemented at the right point in your timeline, in your journey.

It has a huge component of a wealth building strategy for the high net worth. But we’ve been all brainwashed by all these, like generalities, right? About sorts of things.

And it’s ironic, isn’t it? That you say that those people in the corporate world are absolutely best placed to. Leverage things up and make the best use of these skills. They just don’t know them. But it is ironic, but then it is not because if everybody did what I said to do by a handful of rentals, get out of these feed later and products invest tax advantage ways. Most people are able to leave the rat race in five to 10 years. Would get our coffee, right? Who would build our bridges with design, the bridges who would push the government paper, who would do surgeries, who would clean our teeth?

Society would likely crumble. Like we have this happen, ? Not everybody can be financially free.

Who should be there. Those who are worthy, that are going to hopefully take the information and do something greater with it. But I don’t know. Maybe it’s just, this is a political statement, but I honestly don’t think that you take a hundred people turn on financially free. I’d say a majority would probably just go and travel abroad to take Instagram pictures of their food that they’re eating.

. But maybe that’s small minority that do get financially through. We’ll find that residents frequency, that they end that their highest and best use that their God-given talent that they’re put on earth to do. And they would make a bigger impact than the other 95% of the people that were financially free.

That’s just me being optimistic. I think it’s a fair reflection on the variety of humankind. Isn’t it? And know that’s the truth of it. Isn’t it. And being fairly flippant in that question, but it’s true. There’s that moralistic element of when we push things in a certain direction, whatever everybody works to do that, but the truth is you got, as you say that just never going to happen because we’ve got a wide variety of, yeah.

They do this in China, right? That’s effective, but communism is right. They give everybody that bare minimum. . They don’t have to really work for it. But what do people typically do they just watch Netflix to chill, right? Yeah. In a theory, it works, but in real life, I think from my point of view, it doesn’t work.

Yeah. And that small 1% or whatever you said, the way they’re actually, then you’re leveraging that freedom or financial freedoms really use their gifts for the betterment of mankind. Do you get to see that with some people you get to work with people in that space? Yeah, , we have a higher level mastermind.

We call it the family office, Ohana the goal of that is to get people from $1 million over $10 million net worth. And that’s the first threshold is getting people that four and a half million dollar Mark. That is a Mark that a lot of people in our world we talk about, right? Because at that 0.4, $5 million net worth, you’re able to pass down a substantial amount of money to your kids.

And they can really try hard to screw it up. And it’s really hard for them to do that. . A million dollars, $2 million is nothing today, ? That’ll be gone in a generation easily. In fact, I think the statistics are like 90% of money is lost in two to three generations. Garren’s it’s gone, but if you can get up to that four and a half million dollar Mark you’re set and something happens along that way.

There’s a phenomenon of like, when you get on an airplane, they always say if there’s any problems, put your own oxygen mask on first, then help out your kid. . Same thing here. There’s a point where people are trying to put on their own oxygen mask, which makes sense. It’s not selfish. ? Some people call this the scarcity mentality.

And I don’t really call it like the say you’re selfish. . But yeah, you get yourself to a good place. First. He stayed first. I think that’s what I call that is getting yourself to four or $5 million net worth. After that point, you hopefully your mindsets. you’re in a good place in your mindset starts to you.

Have you start your transition from scarcity to abundance mindset. When you start to look around and send the elevator back down for others, help out others, figure out what is your highest and best use and kind of help the world. Make a world a little bit better place in your unique calendar, where not everybody who I get from 4 million and go up.

Take that next step to make a platform and create better good in the world. It’s a minority, but if they never ever put their oxygen masks on in the first place, they would have never done it after that. And it’s the old phrases that gets misrepresented is the it’s better to give than receive.

And it’s the people interpreting correctly. And I think it was Francis of Assisi that actually comes from, and the original quote is actually what you’ve just said. It’s better to be in a position to be able to give. Then it’d be in a position where you have to receive. So as exactly that, get yourself up to a point where you are then able to.

Help other people out. Exactly. Money is not everything, but it sure makes life, a lot easier. And it gives you options and money is also a magnifier, right? If you’re a good person, it makes you better. If you’re selfish and only things for yourself. And we’ll you’ll turn into that more.

So it magnifies who you are. I’m interested in that point. Cause it says something here. Have you seen that? In reality, is that something you’ve witnessed? A lot of people come into my group are very frugal, right? They’re first generation immigrants. . A lot of them are Asian.

They’re cheap. They’re super cheap. . And that’s good. I think when you’re starting out . That immigrant mentality, . You’re not spending money on stupid things and that’s how you grow that initial capital to invest. But at some certain threshold that really holds you back and it holds you back in terms of building relationship with other key partnerships, and maybe you’re not doing business each other, what you’re getting trading knowledge.

. And that scarcity really holds people back is what I see. And , it shows up in very small ways, but I think people inherently, , they know you know what I’m talking about when You just feel it right when somebody is like that, when they’re more, that scarcity mentality, they’re just a little cheap or, they’re just not free they’re not a magnetic personality, for the guy who’s just fun, love and buy drinks at the bar for everybody. And not saying you have to buy drinks at the bar for everybody. But metaphorically right in that setting, that’s what that person will be doing in other non-alcoholic situations.

Yeah. Yeah. Or some people were energy they help out other people and it’s free. It’s free flowing and there’s other people where energy stops with them. And they think about themselves only, right? Yeah. You’ve got a podcast, you’ve got a platform.

You wouldn’t be doing it unless you feel like the world is energy flows with us. But there’s a lot of people listening right now better. I’m not saying that you’re bad people out there. But maybe think about people in your network. There are people out there that the energy kind of stumps,

they just think about themselves and not saying that they’re bad people, but what I’m saying is like maybe we have to get their oxygen mask on first. We have to make them feel comfortable, get them in financially abundant thinking so that they do feel safe to them bust out and then become more free giving abundant mindset.

It’s not that they’re bad people, but the situation, the environment has created that type of personality. I think the key thing that you said there is in there is that, whatever mindset anybody has, it has a value for the right context. So that frugality, you said it was the really useful right.

To start off with at the beginning, but then the context shifts or moves. So it’s really common at all levels of. Entrepreneurs, whatever it is that the mindset that has got somebody to a certain point is then the mindset that hold them back from getting to the next level. There’s a whole book on it by Marshall Goldsmith.

Actually. What got you here? When, what got you here, won’t get you there. And so the mindset has to keep continually shifting to move forward, right? It’s moving from starting strategy to mid game strategy and maybe end game strategy. First-generation most of the people in our community are first-generation wealth.

We weren’t born with a million dollars. Her parents didn’t have money. . So we come into this with a lot of baggage, . This frugality mindset. And that’s great, right? Because, we save our money, we grow our net worth and we become first-generation wealth. And how I define that is the first generation to hit.

I don’t know, some arbitrary number, like a million dollars net worth. . That’s pretty decent. , but how do you take her from a million dollars to $10 million? Whether it needs to be a transformation, going through that next stage of becoming and how do you groom generation G2 G2 wealth. That’s the next stage?

And what do you do for your own mindset? How do you keep expanding your head space? I’m a conscious of this. I’m aware of this. I don’t have everything. I’ll figure it out. . But what I do know is magical things happen when you have. People are like-minded that are similar on the path as you, around you in close vicinity.

And that’s what a mastermind group does and for anybody everyone’s slightly different level or different perspectives, so everyone brings their own dynamic and no, one’s exactly the same blueprint. So it’s not like you’re just regurgitating the same stuff.

There’s always a new spark coming off from somewhere. But the problem is at least, filling the room up with people who are broke. And I consider broke under a million dollars. Yeah. You might make six figures, but you’re broke. If your net worth is not well above a million dollars, you’re still trading time for money.

And there’s a difference between people who trade time for money and people who have their money working harder, making more money for them. . Metaphorically. That difference that person has their oxygen mask on and the other person is comfortable enough to take it off and not give the oxygen mask to others.

. But the trouble is well, how do you find people like this? Because high achievers. They have reached this scale on their own, not by being a trust fund kid. They’re hard to find and . They don’t wear different clothes. They don’t have different color hair. ? Yeah. They may tend to hang out in different places, but it’s very difficult to determine those people who are up to the stage and just happen to finance a nice house or a finance, a nice car, buy everything on debt.

. And these are some of the, the more soft topics that we discussed in our mastermind within closed doors, it’s safe environment. And I think I would encourage everybody out there to find your little group of like-minded people that are also thinking about this stuff, because the informal groups with cliff and Larry at the office, got it all wrong.

Those aren’t going to help. That’s just going to hold you back. Your network is your network. As we say. Perfect. Before we wrap up, is there any final thing you’d like to any key message you want to get across over and above what you’ve already said? Obviously the key things coming through nice and clear that you got to get your money to work for you and get the mindset of shifting away from what had been the old traditional ways of thinking and start thinking about how to make it work properly.

Yes. Surround yourself with the right people and start educating, right? Depending where you are in the journey, it might just be buying your first rental property. If you’re under a half, a million dollars net worth. That’s how I started.

And it just takes a while. It is not a get rich quick thing. I bought my first rental property when I had no net worth. Just out of college at 2009, it took me damn near six, seven years to get up to 11 rentals properties. And did you say that, that main line there of, getting yourself in a good position, all that does is enable you to help more people if that’s what’s important to you. So it’s not about in and of itself earning the money.

It, that enables you to do other things from there, isn’t it. And if helping other people, it doesn’t come naturally to you. That’s cool. You’re not a horrible person. I wasn’t like that. I was just pretty selfish and just thinking about myself, , So it says nothing.

We don’t want to shame anybody because we’ve got different needs. So when we first start out, then actually, we’ve gotta be looking after itself, but when you get to that position, your view shifted because you got to the point where you realize actually. The reason I start out in the first place I’ve done that.

I’ve achieved it and now I need something else. There’s something else that needs to come from it. And then you’ve turned it into a way that yeah, you’re still benefiting out for a minute. I’m not knowing no one’s saying that’s not happening, but ultimately it’s a drive to educate more people and get other people to come up and as we go through our own journey, these hour, Requirements shift and change and what becomes important to us?

Yeah. The one theme is I think you got to figure out what is your highest and best use to help other people? I think that’s a pretty consistent theme. Once you get to certain levels of the question is what it is, right? Like for me, it’s finances, money investing. Other people might, might be a gym trainer, they enjoy doing that. That’s their God-given talent. Other people might just be, you’re really good doing a knee surgery I’m cool. . Whatever you want to do, find some way to connect it, to helping people in their darkest of days.

I think that’s where a lot of people find true fulfillment. Yeah. Yeah. And so final question, which I ask everybody on these podcasts and you’re no exception you don’t get away from it. It touches on that lane. What is it that makes your bits Dingle? , I just see a lot of hardworking people out there.

Kind of doing it the wrong way. They’re driving around in the Ferrari with the pen brake on they’re doing all these things that kinda just hold them back buying a house to live in before their net worth hits a million dollars . I don’t really agree with that. Investing in retail type of products, , in non tax advantage things,

there’s just a lot of people pay a lot of taxes and they don’t really need to legally, what if they just educated itself a little bit, ? You don’t need to be spend all your time doing this stuff to relearn things. There’s a lot of people that have forged the path and found the simple, passive cashflow way.

Excellent. Thank you lane. So if people need to find out more, your website’s simple, passive cashflow.com has huge amount of information on there. Brilliant.

https://youtu.be/GleSDBm0m7s

Hey, what’s up guys.

What I wanted to talk about today was take a pause at this moment in time now.

And I just want to, when you guys out to the water gear is I just wanted to ask you a question. Do you know how to catch a wave when you’re surfing? For those of you don’t know how to surf as someone who works all the time, , the office. And someone with self-proclaimed soft, Pete, like myself, look, I don’t know how to surf.

I’ll be honest, but follow me here with this analogy

because I’ve seen it done a few times. I’ve sat out here and I’ve watched these guys do it just go with me so I was recently talking to some of my partners and some brokers common thread in these conversations this recovery going on at the moment, we’re starting to see this country get back in order.

And certainly , a lot of us are making that call, second half of 2021 is going to be when things are going to be really strong. And I believe this is going to be the biggest wave. I’ve ever seen in my lifetime. Maybe even yours. How do I know this? The stimulus that has been pumped into the economy dwarf.

The recession of 2008. There have been many indications

if you’ve been following my monthly green sheet updates, multiple rounds are coming. 📍 No. If you can pop that slip on the time, Senator Carr against hotline incident, the last month he was talking about how he thinks that the Democrats are going to push it right around now that they have the majority vote

and basically they’re going to

the already $1.9 trillion stimulus that just went through

economic. Package that would be reportedly costing between two and $4 trillion. . This is on top of all that stuff. They didn’t. 2020 now, ultimately this helps us investors as more money flows to our tenants. And then of course, to us in our pocket books, as investors is a heads, I win tails. I win situation who knows. They may find ways to directly stimulate our already good lending programs, such as Fannie Mae, Freddie Mac,

if not we’ll keep casual line. That’s the nice thing about the business plan. , no inflation is going to come pay for all this mess and the savers, those who are hoarding money in their bank account, or keeping it locked up as home equity, not doing anything.

 

Relative value to the loans are eventually deflated over time as inflation happens. This is another one of the many reasons why we do what we do and we pick up good, Annie Mae, Freddie Mac debt, and from other community banks, Fannie Mae, Freddie Mac a lot of the big Economic houses out there,, forecasting, a five to eight GDP growth just for one quarter coming up the second half of this year, I’ve been consistently discussing this amongst my closest peers and amongst my inner circle investor group.

Now, what are we doing to get ready now? Going back to my surfing. How do you catch a wave? When you see that smell up there, you got to start paddling

now because you’ve got to pick enough speed. Or if you wait too long and you just wait until See those statistics come into play quarter three, quarter four, whenever lane and company are saying, it’s going to happen. It’s going to be too late. The waves, just going to go right over you.

And then you’re going to say those guys just got lucky, right?

And ultimately you’re going to be missing out on water. Biggest bull market seat. Remember open 19 brought about a health pandemic. Prior to the recession, there was nothing wrong with the economy. All time lows upon employment.

Don’t be like most people, , this wave is going to go right underneath. And they’re gonna be making an excuse on why they missed out or worst stuff. Just chalk it up to people, being lucky. Look, people who are putting themselves in position now , getting speed, paddling going into good opportunities.

They’re not the lucky ones. They were the people working hard while people who are just sitting around on their board like this.

 

 

 

 

 

Those who are active now picking up debt. Good deals that are cash flowing will be the winners.

Now luck equals opportunity. Plus preparation. We are preparing now by starting to invest capital last year. If you noticed what we were doing last year, we were picking up deals. We were still remaining active in 2020. Now, what this has enabled us is this gets top of the line.

When brokers finally have deals coming through the pipeline, they have us on speed dial.

Because as I say this is probably one of the biggest waves or bull markets you ever seen in this lifetime.

Don’t wait until Q4 or the summer. To see the ass and have this wave come through.

, the people who are doing this right start to see this wave off into the distance and starting to paddle now. And that’s what I personally doing. . I’m deploying my funds, getting more offers out there as we speak.

You see the wave coming.

Do you know, you’ve got to pick up some speed in order to catch the wave. What are you missing? More education. Seriously, shoot me a email lane at simple passive cashflow. If you have any education questions, what do you need? what’s missing?

Because if you’re not in the game and you’re not putting money out there, you’re not learning. Okay.

All right. Talk to you guys later. I just wanted to let myself outside of the office. I got to get back in there. I’m enjoying this break, but yeah, appreciate you guys for listening

Hey, simple passive cashflow listeners. Today, we have Rachel Marshall from the money advantage podcast, talking about a bunch of money hacks for the rich people. Rachel has a very awesome lane. Great to be here today. So one of the first things we’ll point out is you are not a traditional financial planner.

Yeah, I would say that you’re absolutely right there. And maybe I’m sure you’ve, here’s the platform to finally air it out. Why did you deviate from that path? Great question. Really. I see a lot of typical financial planning being along these lines of telling people what to do that ends up taking away their control.

And it’s really unfortunate, but I think there’s a much better way than listening to. Common financial advice where you’re going to hear things like, Hey, invest for the long haul in the stock market and just stay in. And when the money goes up and the money goes down, you’re going to be fine. Just stay in.

While you’re paying, guaranteed management fees to the fund managers and they’re winning and you potentially are really losing, we also see things like people say, Oh, pay off your debt as quickly as possible, because then you’re going to be debt free. That’s not really a position of financial control.

So when we see. So many financial strategies and so much financial information, really taking that cashflow, taking the control out of the hands of people. That’s really something that I want to be in a position of giving back the cashflow and giving back control to the people we work with. All right. So the people listening are high-paid professionals already investing in real estate, and they’re drinking the Kool-Aid.

Maybe we can talk about that HELOC strategy in a little bit, but. No, they’re already, about to break up with their financial planner. And what would you say would be people are probably calling them crazy, whereas some suggestions on what to tell your friends and family, when you’re going to get rid of that person.

That’s a really insightful question and I think it really comes back to, you have to ask yourself, who do I want to be in control of my financial destiny and, especially as a high paid professional or somebody who’s already accredited status for their investing, you’re in a position where common strategies and common financial.

Stuff just really doesn’t work for you. And if you are being honest with yourself about where you want to go and what you want to create in your life and the tremendous wealth that you want to have, I think it takes a little bit of courage to be able to say, Hey, I need to do things differently and really step out.

And be honest about the fact that I need to be in financial control. I don’t want to just trust somebody else to rely on them and really what it comes down to for us, as we say, you. The person we’re talking to you are the best financial advisor you’ll ever have. And I know that sounds really odd, especially if I’m in the financial industry, but it’s because we really believe that you are the best person to be in control.

And I think that’s really the crux when it comes down to that. People who are breaking up with their financial advisor and really going off the range and saying, okay, how do I have as much cashflow as possible? How do I invest in cash flowing assets? How do I invest in real estate? And all these deals that you are talking about lane it’s really those people who are saying, I want something different.

I saw. My dad, my grandpa invest in the stock market and I saw that money go up and I saw it come down and I saw their life savings crash in front of their eyes. And I don’t want that. I really want to be in a position where I control my future and I have cashflow coming in. And so I think we talked to a lot of people as well, like yourself that have drank that Kool-Aid and sometimes they’re earlier on that path of saying, Hey, I want to take control.

It’s usually people who’ve read Robert Kiyosaki, and they’re saying, Hey, I want to get in a position where. I’m truly an investor, a business owner, and I’m not just working for money. So there’s a huge tribe of people doing that. And I think sometimes it just takes courage to jump into that sphere and say, wow, there’s a lot of people who are already doing this.

And a lot of the mainstream advice out there are for the masses take the book by Tony Robbins. He recently wrote, which I heard was good. It’s four inches thick though. And it takes forever. But the, in a nutshell, if he’s telling people just go after the ETFs because it’s low cost, but he’s behind the scenes.

He’s just telling people, Hey, look, you’re an average person. You suck at this. You have no advantage. You might as well just go on the cheap thing cause you don’t know any better. And it’s just like people who followed grant Cardone, he has a podcast and he sorta educates you just on the surface enough to shake your paradigm.

But then he’s basically like you suck. You’re not going to be able to be a real estate investor like me because I have an army of team behind me just invest in my fund. . Yeah. Yeah. I haven’t read Tony’s book and I’ve heard people speak very highly of it as well, but I think it really comes down to, do you believe that you’re the best person to be in control and, what’s interesting as you talked about being a high paid professional and what’s interesting is a lot of people would say my income is probably similar to my neighbor or the people that I hang out with. And that’s my social circle and my sphere of influence. But, the top 25% of people make 77,000. The top 10% are making something over 133,000. The top 5% is anybody who makes over 188,000. The top 1%.

It’s not the millionaires and ultra billionaires. To be in the top. 1%. All you need to do is make $465,000 a year. So if you are in a top category, you’re not common, you don’t have common income. So don’t follow common advice. You are a person who needs uncommon strategies that really will help you to continue to Uplevel and scale and grow your wealth.

I wanted to, just to illustrate that concept there are strategies for the 1%, there are strategies for the top 90 percentile, and then there’s the rest of the strategies for the masses. I think the masses, just to use this as an example of the strategy for the masses is don’t have any debt.

And I think most of us who are listening to this. No, what a complete BS. This is, you want that you want to lock up long-term debt to create more assets that produce more income long-term and grow your net worth exponentially. That’s what’s interesting because if you do have debt, so you mentioned lockup your debt in for a long period of time.

A lot of people are saying Hey, you should have these shorter mortgages and you should try to get the lowest interest rate possible and pay things off as quickly as possible. But again, That is not uncommon advice. That is common advice. Now here’s the thing you really want to be thinking about. How do you have the smallest payment?

How do you get that while you have the longest term on your loan? What’s interesting. Japan has a hundred year mortgages. I wish that I could get a hundred year mortgage. That would be amazing. And the reason that I say that is that I would like to have all of the extra cashflow because a hundred year mortgage payment is going to be tremendously smaller than if I had a 10 year or 15 year mortgage, because that is, constricted down into a shorter timeframe.

So you have to pay more per month. And so if I think about how can I have the smallest amount of payment per month on my fixed. Payments. I’m actually improving my debt to income ratio, which means I can actually get better interest rates on future loans. I’m also in a safer position because now I’m in a position where I can easily make those payments.

And I’m not in a risk position of not being able to make those loan payments, which then means my credit score is going to be improved. And you’re in a position where you’re focused then on cashflow, not just on paying off the loans as quickly as possible. So I just wanted to illustrate your point there.

So switching over to the opposite end of the advice for the 1% it’s simple, right? For higher net worth people, it’s go get a few rental properties, maybe some turnkeys and then step into private placements and syndications and grow and invest that money and create cashflow and long-term network gain.

And interesting enough you mentioned, improve your credit score. For the 1%, I don’t care about my credit score. I’m not getting the debt. The general partners are getting the debt on my behalf. Switching back to, where I’m landing on is this advice for that top 90 percentile that maybe I know you and I wanted to bash this strategy for the 90 percentile.

It’s not horrible, but it’s not the best thing that you could be doing. And that’s the taking your hilar pain down Your home. Maybe people who haven’t heard of the strategy for me, can you outline it for us real quick? I can. And I’m honestly not super familiar with this because this is not something we recommend.

But the idea would be well, let’s have the heat lock and then let’s put all of our income into the heat lock and use the heat lock to pay off all of our expenses and including our mortgage and. All of our other debts and all of our lifestyle expenses. And the idea is that you’re going to save a little bit in interest.

At the end of the rainbow, really the goal of that is to pay off your loans quickly and save a little bit of interest. But if you really think about it, if you’re in a position where you are putting all of your cashflow into your home via your HELOC, You’re in a position where your cash is going into the four walls of your house.

Now, if you have equity built up in your house. Yeah, that’s nice. But what if you want to use that money to then go put into real estate and private placements that money’s locked up? That’s not something you’re going to necessarily be able to go access and put to use in rental real estate. And so what you want to do is you want to think about how could I have my cash stored in places that a is safe.

It’s not going to drop in value unless I take it out. Where a house. If you’re putting the money into your heat lock and into your four walls of your house, if the market does drop, then you lose that equity. So you want it to be safe. You also want it to be accessible. Now, in any circumstance you want to be able to get to that money.

You don’t want to have to say look right now, I don’t have the income. And so I need to be able to tap into this mortgage and pull the money out. You want to be in a position where you can access that capital. Regardless of your financial circumstance and it’s arguable, you could say Hey, I’m high net worth and I have lots of money and I don’t have to worry about it ever been in a position without income, but you want to put yourself in a position where you’re never going to have a cashflow crunch.

If you have a lot of properties and you do dry up in income, or you have a tough month or you have a tough couple of months, you want to be in a position where you can access that capital. Because there are so many real estate investors that have been in a position when the market did dry up and they didn’t have the capital that they could access that completely wiped them out.

And so to be in a safe position, you want to prevent that cashflow crunch. So you want to store your money, not just in the four walls of the house. Like I said, you want to have it where it’s safe, where you can always access it and where it is growing. Yeah. So if you guys are a little slow to the party here and you want to watch the full one hour plus webinar on the simple pass, the castle.com/lock, and you can learn about all about this pretty bad strategy in my opinion.

But you’re paying down debt here and okay, but it’s not the best optimal strategy and people, I get this all the time. That’s how I just really wanted to talk about it. People in the mastermind will be like I heard of this strategy and it’s an awesome, like YouTube zinger headline, right?

Pay your mortgage off in four to seven years. But it’s just not a good strategy that the wealthy do. Oh, here’s the interesting thing the wealthy think about how do I have capital that I control? Because I like to think of it as an emergency opportunity fund, right? You’re going to have life come at you where you have a bigger expense in some months that you weren’t expecting that would be considered an emergency.

You’re also going to have opportunities, which is the thing that’s really exciting. It’s the reason that I want to have cash that I can get to. And that cash that I’m storing is way more valuable than paying off the loan as quickly as possible. Here’s the thing. If I have the cash to be able to pay off my mortgage, I’m not in debt.

Now, this is something that we talk about on a regular basis. And people say just because I have a loan, that means I’m in debt. But I know you and your audience are super smart and you’ve probably thought this completely through already, but you’re only in debt when you have negative equity and negative equity is a position where your assets are less than your liabilities.

Now, if you had your cash sitting somewhere that you could access and say you had $700,000 and you want to pay off your $700,000 mortgage, you could. If that was the best use of that capital for you. But what if there was something that would produce a higher return than paying off that loan? And you wanted to go ahead and put that into a commercial property or multi-family deal, or you wanted to go go into mobile home parks and invest in that you have so many options when you have cash, but you limit your options when you just focus on paying off the loan.

And interesting, like that word opportunity fund doesn’t exist with the layman. They have emergency fund. And as you can see what I do at my opportunity fund for when deals come along. My video, there is simple, passive casel.com/oh fun. But I use a little bit of infinite banking and some other more liquid investments in there.

Use that all the time. You work with a lot of clients, taking from the more high net worth guys who are a little bit more aggressive. What are some of the takeaways of aha moments that those guys are having or tweaks you’re having with those folks?

I think what’s really interesting is there can be this misleading idea that I just need to get. Better returns on my investments. And that’s the one and only strategy that I need to have in my financial life. And if you’re only looking at what you’re doing in your investing, you can be shortsighted to the foundations and the system that you’re putting in place.

It was interesting. I heard this the other day and I honestly can’t remember where it came from. So I wish I could credit the source, but they said. We all have systems in our life for everything. You have a system for your health, you have a system for how you eat. You have a system for how you sleep at night.

Now some of us have chaos as a system, but that still has system, and so when you think about your money and your finances, you want to have that in a system that is efficient and effective every step of the way. And so before the investing, you want to make sure that you’re keeping as much of your money as possible.

It’s not leaking and flowing out of your control. And then you want to protect that money. And if we’re not keeping as much as possible and protecting it, then it doesn’t matter how great we’re doing in our investments. If the rug can be jerked out from underneath us or the floor can fall out. And so when we’re talking with.

Any individual and a specifically high net worth individuals, a lot of times business owners. And if you own real estate, Chances are, you can think of that as a business. I think of all real estate investors as business owners, right? We’re in a position where you have this business that you’re growing.

If you think back to Robert Kiyosaki talking about this, he says a true business is one that can function with or without you in it. If you’re investing in real estate and you’re building up a real estate portfolio and you want to be in a position where that’s truly passive cashflow, like you talk about, you want to be in a position where that really is operated as a business.

In one of the ways that we see a lot of times, people are having money flooded, their control is taxes. And so I’ll just touch on this real briefly, but if you are paying any more dollars in taxes today, then you need to be, you are not as efficient as you could be. So think of this. If you were in a position where, you had $20,000 flowing out of your control in terms of taxes this year and every year, going forward over the span of 10 years, that’s $200,000.

What could you have put that into in terms of investing? And you talked about opportunity costs before we came on today, but the opportunity cost of having that money flow out of your control is that you could have invested it somewhere and created cash flow. You could have earned those cash on cash returns.

In the real estate instead. So for instance one of the ways that we see this happening is if you’re in a position where you’re not putting an entity structure around your business operations, if that’s your real estate, that could be what is your business in your case? You are then taking income from your business operations.

And if you’re taking those wages, that’s fully subject to self-employment tax. And when it really breaks down, this is your pain, the employer, and the employee portion of the Medicare and social security taxes, and it’s a complicated formula, but really it breaks down to about 15.3% self-employment tax.

So you have to pay that on any money that you bring from your business over as wages. And this business applies to, if you’re just a landlord with a few rental properties, you’ve got a business. So this applies to you. Yes, absolutely. Absolutely. And what you can do is you can restructure that payment.

To yourself still receive the same amount of money, but have a portion. If you’re an S-corp and you’ve formed a entity around your business, I believe this works as a C Corp as well. I would have to check specifically on that. I think it would just be a different terminology of the breakdown, but what you can do is you can pay yourself a reasonable salary.

Now. You can have the lowest reasonable salary possible that still is going to be subject to self-employment tax that 15.3%, but you can have the rest flow over as dividends. I think in a C Corp, it’s called distributions instead of dividends. But I think the strategy is the same. And I don’t want you to quote me on that, but at the same time, what you’re doing is you’re having the wages come over from the business where your real estate ventures.

And then on top of that, you’re having dividends and the dividends don’t have self-employment tax. So you’re saving that 15.3% on the portion that’s coming over as dividends. So like for instance, we had somebody who, they had a compensation from their S-corp. Of 128,000 and they were paying that all as wages.

And so instead they broke it down. They had an $80,000 salary and they had then 48,000 come over as a distribution. And so that saved them the 15.3% on 48,000. So it was about $7,300 a year that they saved on taxes just by changing their pay structure. And then they also were able to reduce their overhead.

They scheduled one staff member instead of two, where they didn’t need the additional person. They were able to have a central booking appointment strategy that they use. So some technology that they were able to use instead of the additional employee. And so that was another 40,000. And so what happened in that case is that was a savings of $47,000 per year.

And again, you might think that’s only $47,000, but if you add that up over the course of 10 years or so, 20 years, the rest of your life, what is the opportunity cost on having spent that money that you didn’t need to spend? So Rachel is talking in terms of businesses, this is where landlords out there with one or two rental cars, or maybe even got a bunch of syndication deals.

You know right now, interchange wages with rental income. So it comes in, a lot of us, I think, we’re smart enough to have LLCs comes into there, but right now you’re getting killed. Cause every single penny that you make out of that LLC is getting all that self-employment and all that Medicare or Medicaid tax.

Yeah. So what Rachel is saying, we’ll carve off a good portion of it. The more you make in that business, the bigger the amount you can carve off that you can shelter away from that self-employment tax, et cetera, which is huge. Then you’re in a position where you are thinking strategically about the future.

And what’s really interesting here lane is it’s not about, gaming the system, the tax system, really the tax code. I’m sure you’ve heard this before, but there’s thousands of pages. This thing is a beast and I would not prefer to personally read it, but there’s only a few pages that are about how to pay tax and the rest of this gigantic document are all ways.

Their roadmap to not pay taxes. And so you really need to be working with somebody who is knowledgeable about the tax code that really seeks to leverage it in your favor and not do unfortunately what most CPAs for common people do. And they say Hey, let’s just defer some money and not pay tax on it this year.

And that sounds like a great end of story. If we stop there, but you still are going to pay tax in the future. So you’re just kicking the can down the road and you end up with this big tax bill, the end, and especially for your audience and myself and our audience as well at the money advantage. If you’re looking to grow your wealth and increase your income, you’re going to probably be in a higher tax bracket in the future.

And I do not want that tax bill on a higher income in a higher tax bracket. And. With 19 trillion plus dollars in us debt right now. We’re in a position where if the government says, Oh, Hey, let’s go ahead and increase taxes and decrease tax brackets so that more people are paying more taxes in the future.

I don’t have control of that. And I certainly don’t want to be at that mercy. So I don’t want to just defer tax, which is a fancy way of saying postpone. I don’t want to just postpone taxes until the future. And that’s what a lot of times you’ll hear. As a tax strategy and it’s really not a tax strategy.

Yeah. And what you just said just drives me crazy all the time. Most CPAs don’t have a freaking clue what they’re doing. That’s why they have that job. And that’s why I sit at home in my shorts all day long. Not to say that, Hey, I’m not a CPM, not a lawyer.

This is where you have to learn these strategies and you’re not going to be the one, this can potentially be a little dangerous, right? Yes. If you go overboard with these proportions you possibly can get audited, but yeah, reasonable salary. That doesn’t mean you’re going to say, Oh, my reasonable salary is $1 and the rest of my money is coming over, without self-employment tax.

That is, that’s stepping over the line and here’s the line and you want to be working with a tax strategist that says, okay, I understand the lay of the land and the landscape. And I’m willing to walk up to that line. But I’m not going to cross over. And that’s the piece that instead a lot of CPAs will just say Hey, I’m just going to stay as far away from the line as possible.

And that’s where a lot of money gets left on the table. And unfortunately way too many people are in that position where they say I have the best CPA in the world. And yet they’re still leaving a lot of money on the table. So again, it is not about doing things that are illegal, that can land you in a huge amount of hot water.

Absolutely. Would never recommend that. But what you want to do is understand how to proactively leverage the tax code. And here’s my analogy. This stuff is like doing a surgery, rachel and I aren’t going to do surgery on ourselves, period. We’re not even doctors. No, but we can recommend possibly.

Hey, why don’t we do this? Have you heard of this other operation? And if your CPA is like any other CPA out there, they haven’t even heard of the damn thing. So maybe you have to go to first a CPA who can do that operation but also even good CPAs, they’re just looking for the easy way out more times than not, they don’t want any kind of odd potential audit in the future, even though it is totally legit, they just want to do what’s easy.

So you as the client, like I always say, you’re the boss. You’re the property manager works for you. You need to tell him what you want within reason. Same thing here, your CPA works for you. You need to tell them what you’re going for and need to hear them out. If not, you need to get a new CPA, issue and get to someone who is legit.

And I can do this stuff for you, but yeah, that’s never do it without a CPA. You are using their recommendations. Now, what you want to do is ask yourself, is this the CPA for me? Are they going to help take me to that next level? And a couple of questions you can say is, are they meeting with me outside of tax season?

That’s just one really good. Almost indicator or a marker. Are they concerned with helping me strategize? Outside of just saying, okay, what did you already do? And how can we react to what you did in your business and your real estate and your investing and all of those things, really?

You want somebody who’s going to help you plan ahead so that you use the right deductions so that you apply the right things in your strategy and process so that you can take advantage of the tax code. So a lot of people have been sending me their CPAs and, cause I’m trying to build a list of good folks to work with.

Some people only want to work with people locally. So my quick interview sheet with these guys is like, Hey, have you heard of land conservation easements you? What they say that what I don’t want to hear them say is ah, I never even heard of that. What does that, okay. I’m not here to educate your CPA.

And then number two, I want them to understand the dangers and risks of it, but I want to ultimately hear, yeah, we’ve done them in the past and for the right situation, we’ll do it. Yeah, definitely not that first answer, but that’s my quick and dirty way of vetting CPAs. It’s interesting.

And I’ll just say this, I’m not a CPA. I work in financial services and really what we help people do is increase their cashflow. Like we talk, we’re talking about cashflow strategies and so what makes me aware of all these different things that can happen in a person’s financial life? We also do a lot of work with privatized banking and alternative investments.

So that’s where we come into play. So I really just, I want to make sure that I’m not at all painting the picture that I am a CPA because I’m not. And I’m not a CPA at all. What else? No more than some of them. I do. But at the same time, you need to work with someone who is certified. And one thing that we have done on our show, we had Mike interviewed, we interviewed him and he wrote the book called profit first.

He also wrote the pumpkin plan and toilet paper entrepreneur, really great guy. And he focuses on making sure that you have profit in your business and in your personal life. But more than just having a high revenue and that message is amazing. And he actually has established a network of tax professionals as well.

That’s the profit first professionals and that’s really one way that you can step in the right direction of saying, how can I make sure that I’m maximizing my profit? So Rachel and I are not advocating to doing this stuff yourself, no home surgeries here. Absolutely not. So I wanted to talk about something for myself personally, that I was working on that you and I were talking about earlier, it’s using your home as like a meeting place, little go to tax deduction for potentially what, 10 to 20 grand a year or something like that.

It depends. I live in Hawaii, so it’s expensive. Yeah. So yeah here’s what this breaks down to. And again, this is a part of the tax code. So it’s actually been referred to as the Augusta rule or corporate rent. What happens is there’s a portion of the tax code that makes a rental property.

And so you have a rental property. That you pay tax on your rental income is something that is not short term. You’re renting at least 15 or more days a year. But if you’re at 14 days of rental or less than the income that you receive from that is not subject to tax. So here’s what it looks like.

You own a house and you’re in Hawaii. And your listeners are probably, I ran because it makes no sense though. Okay. But either way. Smart then that’s awesome. Yeah. So say you did own the property or you’re in California or wherever you live and you’re in a position where you say I want to rent out my home.

This kind of started well, it was brought to light by People in Augusta, Georgia with the masters playing the masters tournament and they would rent out their homes during tournament week when they had all the golf fans coming into town. And it was a fascinating to me because they could easily rent their homes for $7,500 a day because of the demand, the hotels couldn’t handle the volume.

And so they’re saying, okay, here’s what the market is doing and how much we can rent our homes out for. And it was two people who were coming in from out of town. Now you can rent your home. Anyone can rent their home, their personal residence up to 14 days a year. You could rent it to people who are coming into town, your neighbors, you could rent it to people coming in town for an event, football games, whatever.

But what you want to do is you can also say anyone who’s renting that the income that I receive, it fits 14 days or less. I don’t pay tax on that money. When I receive the rental income. So my business can be a renter of my personal residence. So there we go. And lane, I would have to check on that strategy.

Cause I haven’t had somebody ask me if they currently rent their residents. Can they rent it out to their business? I think so. I think so. But yeah, we have to check we’ll check. Yeah. So I know if you own it, you can. So what you’re able to good example, right? Like here, we don’t know the answer, but we’re going to ask the question the right way to not have a CPA.

Just say you can’t do that. That’s dumb like that. Now I got to knock and go meet my tee time at three o’clock. Exactly. You want to make sure that they understand what this means, and this is just one amazing strategy, but from your business, you’re then able to pay yourself personally. What would be reasonable to rent out that home.

And again, in Hawaii, it’s probably much higher than in the same bread basket of the U S or if you’re in California on the coast, you’re going to have a much higher cost of renting. So you want to have a reasonable cost. If you could rent another similar house for a thousand dollars a day, you’re not going to charge 20,000 to your business.

That would be ridiculous. But you want to have that be comparable. But then what happens is the business or your business that surrounds your real estate investing or your investing in general then can pay yourself personally. What happens is that’s a deduction on the side of the business.

So they’re not paying tax on that because it’s a deductible business expense on the personal side that comes to you as non taxable income, you don’t have to report it on your tax return. So what’s happening is that you’re, it’s an additional way to get money out of your business without paying tax on that particular portion of the money.

And so we’ve seen this in, say for instance, in our area you could rent for about $1,400 a day or so. So you stack that up over times 14. I’m going to go ahead and do the math on that. I didn’t plan that in advance, but let’s just say 1400 times, 14 days. That’s 19,600. If you’re in a, I don’t know, say 30% tax bracket here.

That’s. 58 80 in tech savings on using that strategy over the course of the year. Do you follow me on that math? It’s like cheating to me, but Hey, it’s this fall in the tax rules? It is definitely following the tax rules. And again, now don’t go overboard. You can’t charge something that’s unreasonable. You can’t go over the 14 days or all of the income yours is subject to tax then.

And I also heard of I haven’t done this before, this is what’s been told to me is that you’ve got to go through the exercise of getting some bids. I’m going to go call up three hotels in Waikiki, see what their absolute Haley price and build a note and say, Hey, we’re just going to take the average, which is 14,800, whatever.

Exactly. Exactly. And so yes, you do have to do the research. You have to document it has to be a business purpose that your business was renting the house for. So that could be client meetings. It could be meeting of your. Directors or your owners of the business. There’s many different ways.

You can have your annual business meeting there, but it does have to be documented. And again, like any strategy specifically on the tax side, everything has to be extremely well-documented. You can deduct anything that is a business use if you have a personal expense, that is a business use as well.

There’s ways that you can deduct that. But again, it has to be very clearly and articulately documented that there was a business use for that. So whether that’s travel or there’s law changes. So I don’t want to be too specific, but there’s a lot of things that you can deduct, but you have to have a clear business purpose.

I know you can do that with a C car and that’s why I’m looking to switch to a C Corp personally, but do you know if you can deal with the S-corp or just a regular LLC? I know you can with an S Corp and again, S Corp C corporate, just the taxation structure around the entity.

So the LLC is not a tax structure. We have a great interview on our podcast as well. I can give you the link to it later, that kind of articulates more of that. Yeah, she did that over and then I’ll put that in the show notes, just with all your other stuff links into there.

Perfect. Yeah. That’s, it’s just another idea of maybe that Augusta road won’t be around forever, but for the time being, Hey, that’s free money. You gotta grab it. That’s absolutely true. And again, it’s taking advantage of the current circumstances and knowing what’s available to you and yeah, it may not be available forever.

It might not be even next year, but right now that is available. And you can do some research on that as well, but it’s it’s part of the tax code and they were going to do away with it altogether, but there was a lot of lobbying that said, Hey if we’re only renting out up to, the short term under 15 days, 14 or less, Per year, can we still keep those tax advantages?

And they came back and ruled that yes you can. Yeah. Yeah. It definitely has a fly under the radar thing. Cause I think what the weather big push on that is the short-term rental guys. Those are like the majority of people trying to fight for that 14 day rule or less. Oh yeah. And the Augusta people are just flying under the radar or people like us doing this.

Absolutely. Any other takeaways, a little tips that you can leave us and then you got to go here soon. I would say probably the number one additional thing that we see as a money leak is sometimes the money that people think they’re saving. And this again, is something that I see coming over from the typical way of thinking about money and gets almost Into our mindset in our mind frame, even when we move up in income and we move up in investing, we’re in a position where we’re still hearing this financial noise of the culture around us that says, Hey, max out your 401k.

And so I just want to talk to that for a quick second. That might be a great strategy for you or for someone else. However, it’s really important to understand what is happening and how it works. And so one thing I don’t like is when I hear someone say I’m saving money for retirement, I’m saving in a 401k.

Now, when you’re deferring. The tax on money and you’re putting it into a basket of mutual funds, which is invested in stocks and bonds. That is crappy investments. Exactly. They are. And I would absolutely agree with you on that. But when you’re investing, when you’re putting that money into the stock market, that’s investing that is not savings.

Savings is something where you know, that money is not going to drop in value. It’s going to be there for you. We’ve seen way too many people actually came into the industry after 2008, when I saw so many people that I was not able to help, I was working for a rental car company at the time and walking passengers to their car in the pouring rain and just seeing the devastation on their face.

They literally were losing half their life savings because they had put money in the stock market and they saw it wiped out overnight. And it was just terrifying to me. And I said, Oh my goodness. I never want to personally be in that position. But how can I help people as much as possible to not be in that financial position?

And so I just want to say, if you’re putting money into qualified retirement plans, a that’s not saving. Because it can, the bottom can fall out. And it also is not the ideal way to plan for the future. And I’ll say a few things on that. One is that if you see a balance, say it’s even a million dollars. And I know that this has been, Hey, if I get a million dollars, which you’re your audiences far beyond thinking that a million dollars is the end all be all.

Because they know that’s not enough to create the lifestyle that they want in the future, but say you did get that much on your account statement. It says you have a million dollars in your 401k. You’re in a position where that money doesn’t even all belong to you. The government has a portion of that, that whatever they decide to tax in the future, when you take that money out, that belongs to them.

So that 1 million doesn’t even fully belong to you. So not only is it not safe, it’s also not a guarantee that. Full balance belongs to you. So what we really want to look at instead is understanding, do I want my money in a position that’s safe? Do I want it in a place where I can access it and use it?

Oh, that’s the other thing you can’t take the money out without paying the tax. And if you’re under 59 and a half, you’re going to pay an additional tax penalty as well. So it’s not really liquid. It’s not available for you to say, Hey, I just want to take out this whole million right now and go invest that into.

Investments with lane. There’s no way that they can do that. And so really you want to have money that’s accessible to you. And that’s where we typically are looking at higher leverage strategies and things like privatized banking, which I know that you’re familiar with that as well and saying, how can I have this money in a storage tank, if you will.

That is liquid. Then I can use it and I have control, right? Yeah. I don’t have any qualified retirement plans myself. No self-directed IRAs. No. No, I think Europe, these are okay. If you guys have a lot of 401k money and you don’t want to take the big AGI hit in one year, I think that’s a good option.

Then you don’t have to unify tax, but going down a rabbit hole there. But yeah, I heard somewhere like the biggest source of income, potential income for the IRS. Qualify retirement plans, which are the 401k’s. You can bet they’re going to get at it somehow. So again, you get away from what regular people are doing.

Absolutely. Yeah. And maybe I’ll correct myself, the 401k and mutual fund stuff. It’s not, the investments are crappy. It’s just the fee structure, the hint of fee structures. Like what, taking that 10% away from all the gains at least. It definitely, it takes a lot.

And it’s just interesting because the fees are fixed and you can have your money fluctuate up and down. And the challenge with that is that if you are down, the management fee is still taken out, which means you’re going down even more negative. And when you go negative, you have to tremendously overcompensate with a gain to just get back to even, and.

This is again a whole nother subject, but if you lose half, if you lose 50%, it takes a hundred percent return to compensate for that. And so it’s just fascinating to me. When I look at somebody, if you had a thousand dollars and you lost let’s say you lost 90% you’re at a hundred thousand dollars, you lost 90% of your down to $10,000.

It’s going to take you a 900% return to get back up to. Just to just breaking even. And so yeah, you want to be in a position where you’re not just looking at the average or not just trying to have your money stay in it for the long haul and have those management fees taken out. Absolutely. Yeah, check out Rachel’s podcast the money advantage podcast and she’s got a program, so we’ll link that up in the show notes along with some other notes that we have here.

And yeah. Thanks for coming on, Rachel. I appreciate it. Absolutely. Lane, thank you so much for having us today. And again, Bruce was not able to join us, but this is just been really a pleasure talking with you today. It’s really exciting to talk with like-minded people who really, I know. Yeah.

That’s why we do the mastermind. I’m so tired of people looking cross sided with me when I’m telling them I don’t have any 401k. I don’t either. Yeah. All right. Thank you.