State of Wealth Briefing: “Protecting and Growing Your Wealth”

Click here to download “The Investment Scorecard” Garrett mentions on the call. It’s a fantastic tool you can use to see if your investments are lined up with your Investor DNA.

Garrett Gunderson presents a special “State of Wealth” briefing on how to protect your retirement money.

Garrett explains how the growing national debt (which just passed $22 Trillion) is actually putting retirement money at risk …

And reveals what he feels is the most dangerous place to store your wealth and money.

Garrett also shares insights into how the term “Tax Deferred” is often misrepresented…

And how “playing the wrong game” can cost you hundreds of thousands in retirement.

Best of all, he shares other ways to protect and grow your money while avoiding many of the risks associated with qualified accounts.

The presentation is about 30 minutes, and then Garrett answers over 20 questions from live participants for the next 30 minutes.

Here are a few of the questions Garrett answers at the end of the presentation:

  • “How has the new tax plan hurt us as far as investing for the future?”
  • “What kind of assets would you recommend investing in if we cash out our IRAs and get out of the stock market? “
  • “If I build up cash, am I in trouble when inflation hits?”
  • “Do you recommend precious metals?”
  • “My company matches 401(k) contributions dollar for dollar. Does that overcome the tax issues you are discussing?”
  • “Will my Roth IRA be “at risk” like a 401(k) if the government needs money to pay off its debt?”
  • “You keep talking about investing according to my Investor DNA. Do you have a tool or quiz to help me figure out what my Investor DNA is?”

Garrett answers all these and many more question during the presentation.

Transcript of the Briefing:

Hello everyone. This is Garrett Gunderson, Chief Wealth Architect at Wealth Factory. Thank you for joining us for today’s State of Wealth.

Just to be crystal clear, there’s nothing to buy today. This is information to hopefully improve your life and more than just hopefully.

Really at Wealth Factory we have this mission to liberate one million people to become economically independent. And in times like today, it’s more important than ever because there’s so much misinformation. There’s so many things that sound good on kind of the surface but are leading people down a path that I think is gonna be extraordinarily harmful in the future, and not just way into the future, that’s pretty obvious because 98% of people are not economically independent when they become, when they get age 65.

That’s the notion of accumulation. Absolutely failing us. Where people are scrimping. They’re sacrificing. They’re budgeting. They’re setting money aside. They’re putting money into index funds and mutual funds. They’re putting money into things that are highly speculative, like Crypto without the right framework, without the right plan, without the right support. And hard work with the wrong philosophy still equals limiting results at best or bankruptcy at worst. So, I am a financial advocate for you. I’ve written New York Times best seller, ‘Killing Sacred Cows’, which is about how do we avoid these financial myths. There’s nine really subtle myths that have led people most astray but looking at the state of, kind of the world today, what I’m really seeing is that we become highly susceptible to very seductive type of infrastructures around investing that are absolutely gonna decimate people. And especially when we look at things like retirement plans that are so far off into the future waiting for 10, 20, 30 years from today or relying upon interest rates being at a certain level in order for things to work, whether that’s entrepreneurs that are borrowing money or whether that’s someone that’s getting into retirement and hoping that they can get enough interest to create the type of income that they want to really live on and what we found is that’s highly disappointed people. So, I wanna first off thank you for joining us today, for investing in yourself, for being part of educating this topic that a lot of people are afraid to ever confront or face. Now, at Wealth Factory, our job’s to make it simple, make it direct, make it actionable and give you the tools and resources that empower you, that uplift you, that help you to discern truth from falsehood, to be able to see when there’s a distraction or really know when to embrace an opportunity. And even though most of the financial advice that is so crucial and critical in this world that never reaches people, the reason that happens is because it’s not commissionable and we’re not a firm that works on commissions or on fees by getting assets on our management. We’re somewhere where we’re offering education. We’re offering tools and resources of implementation. And a virtual family office where people can engage us and they write us a check for the support and the results that we provide for them. Today, there will be no checks written. There will be no cards exchanged. This is simply making sure that you know what to do and how to avoid those landmines. As I said I’m Garrett Gunderson, chief wealth architect here at Wealth Factory. We’re on this path for one million and this is part of that mission is giving these types of monthly webinars to inform people, to arms them with the right things because accumulation has become this such dangerous mindset, where people are born of this kind of this consumer condition handed down from families and generations that think, oh look, if you just wait for 30 years, if you just invest in the stock market, which has become synonymous with investing, if you just set money aside and if you’ll scrimp and delay and defer, yet people miss out on quality of life. And what’s even worse is in missing out on quality of life, they’re setting themselves up for failure because they’re over-reliant upon three things. Number one, whatever happens with taxes, and we’re gonna dive into that today. Number two, whatever happens with interest rates, which we have very little control and that could be very damaging. And number three, inflation starts to confiscate wealth, it starts to erode our purchasing power and ultimately, I wanna make sure that you can figure out how to win first before you even play because this whole notion of playing not to lose, which is that budgetary mindset, consumer condition we’re talking about, is not allowing people to produce the most value, therefore becomes one of the limiting factors to actually creating sustainable, quality wealth but then there’s this other notion of playing to win, which now is a dangerous time to play to win. Where people are seeking opportunity. Where I am seeing more real estate funds popping up and more investments that are capitalizing on what has been a great market, and you can make major mistakes in a great market and be okay but you can do things perfectly in the wrong market and be decimated because that’s what’s gonna happen, is we see fluctuation of interest rates and we see a fluctuation of taxes. So, I’m gonna talk about those ramifications and what you can personally do about it. I saw someone just already sent in a message and you’re welcome to ask question throughout this. We’ve had over 12 hundred people registered as of yesterday, which is awesome. We are recording this because I’ve been know to talk fast at times and for those that maybe miss it, hopefully we can get this back in your hands. The team never knows what kind of resources we might be giving out or connecting you with by the end of this, so make sure you pay close attention as we get those to you. It said, “I read the book that you sent me, “‘What Would the Rockefeller’s Do?’. “Brilliant. “I wish I could finance such a policy.” Pam. Alright. Well, there are ways to do that. Let’s talk about how we can get there as we go through this today. Go ahead and type in your questions as they come up for you. And let’s begin with the state of the union for what’s happening right now. I mean, the government that continues to grow. I keep saying we’re 21 trillion dollars in debt. It’s actually, 22 trillion now. Think about that, 22 trillion dollars. How do we ever come back from that? A trillion is so much money and when we’re talking about 22 trillion, we’re moving further and further in the wrong direction with no plan to reverse that, with no intention, that I can see, to reverse that and ultimately, we’re just depending upon, is the government gonna continue to raise taxes or take taxes or how are they gonna actually handle this? Because we have so much going on, where people have jobs for the government, we have a big amount of payroll that goes along with that, we have all of the things that have been financed and we’re paying interest to investors on treasury notes and treasury bonds and treasury bills. I mean, it becomes a pretty big issue. The second thing is, as interest rates go up, the payments on the national debt could actually sky rocket. Part of the reason we’ve been able to handle 20, 21 and now 22 trillion dollars is because interest rates have been relatively low and this has created a pressure downward on keeping interest rates really low. And why this is important is because most people are not buying in today’s world based upon the purchase price, whether that’s a vehicle or whether that’s a home. We’re mostly having people buy based upon the payment and the payment is highly predicated upon how long of a loan that you can get and how long those terms are and the interest rate that you’re being charged. And so, if interest rates on mortgages went up one percent, that could be a 20% hike on the interest that people are paying all of a sudden. That all the sudden could be the difference between them getting a home that’s $75,000 more in purchase price to being $75,000 less, which puts them in a different market or puts other downward pressure so because people are buying based upon payment. The other thing we’re seeing is that there’s a mass of millions and millions of loans on cars that are in default right now. When I say default, past 90 days due. So, we’re starting to see some major signs that become a huge problem for the accumulation philosophy, of saving money, putting it away on a regular basis, waiting for as long as you possibly can and taking a high risk in order of the hopes for a high return. See, that is gonna be one of the major problems in this world. It’s not that financial planners are bad. It’s not that retirement planners are completely wrong. It just is that we’re going through a faulty model that doesn’t lead to more wealth for you because in that model, we hear that it takes money to make money but what we don’t hear is whose money does it take to make money? The bank’s? They’re not using their own money. They’re using your money. Major institutions, they’re not using they’re own money. They’re using other people’s money, yet they’re telling everyone else, “It takes money to make money.” It doesn’t take money to make money, it takes value creation to make money, solving problems, serving others. It’s dollars follow value, so how do you deliver more value? How can you be more resourceful? And part of the solution here is we wanna move into what do you find cash that’s rightfully yours that might be slipping through the cracks? How can you become more of a cash flow investor? How can you capitalize on the concept of velocity? Which velocity says, what’s your overall output? Whether it’s for the economy or you individually, divided by the input, which for the economy is the money supply, for you individually is all your inputs, how can we keep that fixed yet increase your output? That’s through velocity. Velocity comes from keeping money in motion and creating cash flow. Some of that velocity is getting back taxes people are overpaying, which this new Trump tax plan has been overly complicated and confusing for most people, or getting back money that you’re overpaying on interest or getting back investment fees or hidden commissions or drag on the investment plans or finding where there’s duplicate coverages or cost with insurances. Those are all place that we can create velocity ’cause that’s more money that comes into your life that can be reinvested to grow either cash flow, your business or pay down loans. And then the big one is, how can you expand your means? How can you scale that growth? And as we enter a potential recessionary time coming up in the next year or two, what we’re gonna find is there’s gonna be an amazing amount of opportunity for those people that have plenty of cash and most people that wanna hire and expand their business because other people are gonna shrink because they’re overextended, they’re low on their liquidity, they’ve been addicted to the payments that they have and when interest rates go up, if they’re in a volatile interest rate on maybe a variable within their mortgage or they need to go get a loan to buy something new, it won’t be the price that it was before and where are they gonna find the money? If they get dragged into scarcity, they’re gonna stop being resourceful. They’re gonna stop being innovative. It won’t be about valucration, it’ll be about preservation and survival. And survival is the enemy to abundance. Survival becomes that place where we’re overly selfish, where we don’t know how to serve others, we don’t understand how to solve problems ’cause we’re just tryin’ to make it on our own. So, I get a little bit passionate about that. And by the way, I’m seeing some more questions come in. How’s the new tax plan hurt us, is one of the questions. Do you recommend precious metals? We will be getting to your questions, I just want to keep laying the ground work here. I’ve got some notes up in front of me. I mean, as we look at interest rates going up I said that could really impact us on the 22 trillion dollars finance with the national debt. If we look at, let’s see, one trillion per year by 2024, is the estimated payment on a national debt and then 30 trillion isn’t really an unthinkable mark by 2024 so when you think about that, imagine more financing. We’re paying a trillion dollars and then all the sudden that debt continues to rise and if interest rates go up, that’s gonna put a major pinch on a lot of things. What are we gonna do? Either raise taxes, cut government jobs and spending. Something’s gonna have to give at that point. The government’s gonna have to figure out some way to do it. Other countries let hyper inflation take care of it. But everyone in the U.S., we’re kind of on to that ploy. And he federal reserve mandates, they’ll use every trick to try to keep inflation from getting too high. So, higher inflation can erase a small part of that debt but it won’t be able to take care of all of it. So, what does this mean to you? It means that your qualified plan becomes a massive target. All of this notion of thinking we’re saving tax by putting money into IRAs, 401Ks, SEP, SIMPLEs, traditional IRAs, all those kind of things, , thrift savings plans, anything that’s a government qualified plan, relying upon some tax code, ’cause you can put money in pretax, they’ve collapsed and made us feel that somehow pretax means tax deductible. Those are two different things. It’s pretax meaning it doesn’t get taxed ’cause you don’t take constructive receipt of it. Step one, you put money into the plan. That means that you don’t have constructive receipt of the money. They money is in a plan FBO, for benefit of you, meaning it’s a government qualified plan for your benefit but they can change the rules, the regulations, pretty simply. And even in 1995 when they added a sundry tax temporarily, for accounts over a million dollars, which was an additional 10%, kind of success tax, it got repealed pretty quickly ’cause people were really frustrated and there wasn’t a lot of people with a million dollars in there, so it was gonna be a lot more noise than it was worth the money they were getting. Those kind of things concern me though, especially when you look at other countries. Like, let’s look at governments that issued capital controls in the past, which limited your access to your own money, while they raise taxes and fees during that time. Greece is a perfect example. Greece limited access to bank accounts from` 2010 to 2016 and they raised taxes six times during that same time. That limited access to those bank accounts was because if people were going to flee the country and take their money with them, they didn’t want them to get that out of there and the people wanted to get out of there without having to pay higher taxes on their income so we saw kind of a stalemate and we saw a very big collapse in Greece. It was pretty substantial. I mean, governments can raise taxes anytime they want. The U.S. its’ rate peaked at actually 94% in 1944 during World War II. That was on income over 250 grand, which is about 2.5 million dollars today but 94%? How much incentive do people feel they have to earn money if it’s a 94% tax rate? So, what if you’re deferring you taxes. Right now taxes aren’t that high, 37 and a half percent. What if you decided to defer that? See, after World War II, and I’m just gonna pull up a couple notes here that Tom prepared for me. Even after World War II the highest rate was 70% for a long time until Regan slashed it down to 50% in 1981 and then to 28% in 1986. So, if you think about this, we’re historically at one of the lowest tax rates in history. Now, with all that debt of 22 million dollars, 22 million dollars of debt and a low tax rate. What’s gonna happen? What can the government do? Either one, they start producing more value that somehow creates income but that’s not really why they’re there. They’re really there to protect, to preserve, when we look at the Constitution, but the reality is they’re not necessarily producing goods and services and making a lot of money off of that. They’re typically taxing the producers out there to take a portion to do the things the government’s suppose to do for all of us. Now, unfortunately, they haven’t been overly effective of that, I have regards with that not from a political standpoint but we just look at the state we’re in. Every dollar that goes into social security is immediately borrowed out, so social security is not very secure at this point because we’ve become addicted to that spending. So, what happens when you put money into a plan because you think you’re gonna be in a lower tax bracket in the future, let’s question that. First and foremost, do you want to be in a lower tax bracket? Either A, the government’s gonna have to lower taxes, which I’m making a massive argument, that how would they possibly do that? If you’re 22 trillion dollars in debt and you’re a business and you say, we’re gonna lower our profits or we’re gonna take less money in, then everybody knows that that’s a bankrupt type of company. Same thing happens in the government. Number two, you having less income in the future. This is a absolutely horrendous myth that I get tired of hearing people say because do you want to have less money in the future? Just inflation alone has been happening. That inflation hike means that our purchasing power goes down. Just like I said, $250,000 in 1944 is 2.5 million dollars today. Ten times more money today to spend the same way that it did in 1944. Less than a century ago. Quite a bit less than a century ago. So, think about that, if you’re gonna have less money in the future yet you need more money just to buy the same amount of goods that you have today, why would you ever put yourself in that type of a situation? It’s almost like planning to fail. So, that notion of you can live off of 70%b of your income. 70% of your income? If inflation didn’t exist whatsoever, maybe. But even if it was 70%, do you want to? I mean, in my life, I just kinda feel like Amazon. I love that I’m buying way more because I can think of it and buy it immediately where I might avoid going into a store or filling out some really long form on some website. It’s just one click and it shows up sometimes the same day. It is easier to purchase now more than ever. People have more goods, services and addictions to what they buy today than ever because when we look at the price of everything from a college education to a nursing home or to just the restaurants that we go to now verses what we had in the past to the types of hotels. I mean, I think inflation is pretty substantial because there’s technological change that exists and there’s also the propensity to consume because the luxury once enjoyed becomes a necessity. So, we just want the finer things in life, typically once we experience that. Plus there’s just the regular pieces of inflation we hear about from the government but that’s not even considering all these other things like tax hikes or that we want nicer things in the future or we get improved quality of life to ever want to cut that back. Maybe some people believe they can live off 70% because they don’t have a mortgage at that point or their kids are out of the house and they’re not paying for maybe either private school or colleges or something like that but the reality is every year to maintain the same lifestyle I have to spend a little bit more money. Just to maintain it, not to even enhance or increase it. When I look at my life 20 years ago verses today, what I considered quality then is not what I consider quality now and I don’t wanna got back 20 years form now to the lifestyle I had 20 years ago because that’s no longer who I am or how I like to experience things. So, I want to be really careful and I’m going to make a very strong statement here. If you’re putting money in retirement plans, count on that being a problem for you on A, getting your money out, B, you’re likely gonna pay a lot more taxes than that the tax rate are today because that hike and C, we’re in a very scary place with 20 trillion dollars of debt with you partner in that plan called the government. So, what can you do? Number one, you can actually get the money out with a one time conversion to a Roth no matter how much money you have. You have an opportunity to make a one time Roth conversion. Number two, you could actually roll it over to something self directed and then you can start investing in things other than the market and then you can take a 72T to start getting that money out in a systematic way without the 10% penalty. Or C, you could do what I did. I just cashed mine out, paid the 10% penalty because it’s a one time 10%. I’ll take any loan that charged me interest one time at 10%, the rest of the time no interest. That’s how I looked at the penalty for me. I’m like, 10% to get access to my money to get out of this trap that the government has set up for everyone that ultimate people never wanna spend their money because if you hate paying taxes today, you’re probably gonna hate paying taxes in the future. So, what happens if you defer your taxes into a future and you go, well, I don’t wanna take that out ’cause it’s gonna make everything else I have go into a higher bracket. Or what if taxes go up to 50% or 70% like they were after the 94% high of 1944 that lasted all they way to the 1980s when Regan came in, are you gonna wanna move from 37.5% tax to 70% tax? And what I want to show you in a future webinar is we’re gonna pull up software and we’re gonna show you because some people think, well, my money can compound in there and when it compounds I’m gonna have so much more money. Well, the reality is your tax also compounds and if you took the same amount of money and put it into a Roth after tax, so let’s say you have 10 grand, you put it into a 401K or you have 10 grand, I know you can’t put exactly 10 grand in a Roth, but you put it in a Roth, which means after tax maybe you could only put 67 hundred in after 30 years of taxes remaining stable and the same by pulling your money out of the 401K and pulling your money out of the Roth IRA, you have the exact same amount after tax because the government would take the same amount in tax as what you gave them by doing the Roth, meaning you paid after tax. That money never grew. Yes, the money grew in the 401K but it grew and your taxes grew, so by the time you pay taxes it’s the exact same amount. It doesn’t matter before or after tax. And that’s the tricky thing, is we feel like it’s mystical when it comes to finance. We start getting persuaded that oh, you wanna grow this and it’s tax deferred. Stop hearing the word tax deductible. It’s not. It’s tax deferred. Stop hearing the word tax free. You have to pay taxes when you pull the money out and the government is in a horrendous situation and you’re going to invite yourself right into that grinder situation with these types of plans. Just start paying attention to the politicians. Right now, if you find out or you Google or you look at anything that has to do with retirement plans and 401Ks and IRAs what you’re gonna find is, hey look people are, they’re talking about taxing these at a higher rate. We’re hearing talk about a 70% tax. I mean, this kind of conversation is the top conversation that people are starting to have base upon the dyer situation the government’s in. And you don’t wanna put yourself in where they’re now your business partner and you can have them invade that plan. So, I’ve even been researching, there’s a strategy, it’s a little bit more expensive, I’m still not done with all the research, it’s mainly used in divorce. When someone gets divorced, how they can get their retirement plan out without the 10% penalty. What it looks like, the finer details, that you don’t have to get divorced to use that strategy but it just shows, it takes a long time, it’s a bit expensive, so you gotta have a lot of money in there but it’s a lot less expensive than just letting it sit there and then one day having to pay the tax. I mean, my grandma never wanted to spend the money because she never wanted to pay the tax when she went to take it out. So, if you’re in a retirement plan and you’re saying, well, what would you do Garrett? What would I do? I would cash that sucker out. I would be done with that. That’s what I would do but you need to look at your own situation. Can you, A, create tax offsets? Have you ever heard of charitable trusts? And maybe that can create a tax deduction so you can get some of that money out or the 72T, which is a distribution roll that allows you to take that money out without a 10% penalty but it’s in only certain amounts, based upon an IRS kinda regulation. So, what if you learned how to do the way the things that we teach here on getting better tax deductions, reclassifying your income, creating major tax deductions that aren’t just deferrals but they’re real tax deductions or tax arbitrage. We have some great resources that are coming out. We’re doing a lot of research around this. And we’ve just saved people so much tax that those types of things become the permission to start giving this money out over time. Now, if you’re extreme like me, you just take it out and go, I’ll pay 47 and a half because that’s gonna be a lot better than 70%. That’s gonna be a lot better than 94% and I can see the writing on the wall. And more importantly, with a recession nipping on our heels. We’re in the second longest period of time in U.S. history since we’ve had an actual recession, so it’s nipping on our heels. Those people that have cash and can act quickly will get the biggest opportunities and be the best investors in this recession. That’s the time you can buy businesses, you can acquire assets at a major discount after the markets declined and when no one has liquidity. I want you to build liquidity, build safety, build security. Have tons of cash on hand so you can make money on the buy not speculating 10, 20 or 30 years from now. That’s the game changer. And start thinking about all your investments creating recurring revenue and cash flow because now you’ve got stability, now that helps to kinda help with all the bills and taking care of your life, which means all your active income can go to reinvesting and acquiring more assets, building your business, growing investments, building your cash flow bank. All the types of things that can give you a whole different level of possibility. Now, with all this said, here’s another conclusion, with interest rates being so low and so much pressure to keep them low, as those interest rates start to increase, we talked about the problem with the 22 trillion the government’s financed but here’s the other problem, what happens to the housing market? What happens to the auto market? When people are use to getting loans and they’re buying based upon that payment not based upon the purchase price, when that payment starts to increase and what hap– Can they keep raising the price on cars every year? Can they keep adding technology? Or if all the sudden, they won’t lend to someone because they tighten up the screws when it comes to credit, just like they did in 2008 because if you have too many loans, if you have too high a debt to income, you don’t have a good enough credit score. These things start to matter a lot more in a tight market because they become a lot more concerned about the return of their money. Right now, the market just keeps going up based upon people buying on that payment not the purchase price. So, purchase prices will be forced and there’ll be a lot of pressure to go down when interest rates go up. When interest rates go up we can also see, yes, now you can get a better fixed income as a retiree but it’s gonna be more expensive capital for a business owner because it’s gonna be harder to get that money, it’s gonna be a higher interest rate, so we have to be even more productive with those dollars. On the other hand, if you build a cash flow bank, if you store up a lot of cash on the side, you start focusing on everything you can do to save your taxes, everything you could do to be more efficient with your dollars and what you can do to scale your business, which isn’t about taking more risk, it’s about what things can you stop doing because they’re not important enough, because they’re not worth it moving into a recession. And where can you drill down on things that only your firm does, what you do very best and you increase your capabilities within your team, within yourself and within your people and you think about investing your way through the recession. That’s gonna be the game changer. Those people playing the old antiquated rules are going to lose of setting money aside and accumulation, thinking it’s, I’m gonna set it aside on a regular basis, take a bunch of risk in the market and then over time it should go up ’cause they say it’s average 10% since 2000 B.C. I’ve even heard fairly smart people get on and say really good advice until they get to, “You should just do a diversified portfolio “and index funds and it’ll earn six to seven percent.” Will it? What happens when these companies go out of business in the Fortune 500 because technology’s advancing at a more rapid rate than any other time in history and it’s going to make and render some of these companies completely bankrupt and useless and all the sudden everybody’s just kind of stuck holding the bag. Invest in yourself more now than ever. Invest in your knowledge and your skills. You gotta become a better investor and if you don’t know about investing, you’re gonna take 10% of the money you’re setting aside and you’re gonna put it right into this mind of your. What can you do to learn? What are the thing within your investor DNA were your best, where you know what you’re doing, where you can grow your competencies where it’s part of your value system, where it’s something that you’re reading or learning about, what really makes sense to you. And don’t invest right now. Sit on the sidelines. Be patient. That’s the hardest part of investing. Your key is to be a saver right now. A producer in your business and a saver in your finances. Automatically saving and setting money aside, paying yourself first. Then you’re gonna allocate that into the proper investments when the time comes. I mean, what can happen with Wealth Factory if all the sudden we see this major recession, people are gonna pay attention to our message twice as much as the do now ’cause we’ve been talking about this and we watched this happen in 2008, 2009, 2010 with massive growth. People paid attention and were able to get better employees and team members during that time because everybody else was running and we’re saying, we’re actually moving forward. We’re actually increasing and so, who knows maybe we can increase capabilities or acquire more of a team during that time because there’s people that didn’t manage their cash flows and they were overextended and they were addicted to spending and they didn’t have the savings set aside or they got a surprise tax bill because they didn’t know how to navigate the new economy. I wanna make sure you know how to navigate it. So, David Crandal says, “Go Garrett. Thank you.” Let’s get to some of these questions here. Let me review what we’ve talked about so far. 22 trillion dollars, that’s where the government is right now. 22 trillion, financed at a really low interest rate. That interest rate goes up, the cash flow starts to decrease, that starts to become a strain because now what happens when there’s defaults or when there’s issues and when, now people are taking their eye of the ball of producing and they’re just trying to scramble and make things as good as they can and in a free-fall. It becomes a problem. Companies start to decrease during that time. When interest rates go up, the cost of their capital goes up, as well. When there’s a recessionary time people make major mistakes or the mistakes they have been making that haven’t been exposed become exposed because when the tide rolls back we find out who’s swimming naked. Those people that are heavy on cash, they’ve got the boat to navigate those waters. People that are heavy on cash because they built up savings, they built up liquidity, they’ll be able to capitalize those opportunities where right now, everything they’re investing in, for the most part, is a distraction. It’s a distraction because it makes money temporarily simply because all boats rise with the tide. All boats rise with the tide. Look, in the next phase is where there’s gonna be a major transfer of wealth and that transfer’s gonna happen. Those in the know are gonna build wealth. Those that aren’t in the know are gonna transfer wealth to someone else who is. Interest rates are dangerous and when they go up it’s gonna be a w– it’s just gonna be so damaging. Taxes have to go up in the future. They have to, even in this Trump tax plan. They remove so many of the perks and benefits and loopholes in some of the plan and people started to find out something that we’ve been telling them for over a year. A lot of people are gonna pay more taxes. It’s just the nature of the beast. Yes, they got to higher bracket sooner because of inflation, so they were in the higher brackets even though they lowered the overall brackets, they took away certain fringe benefits so they could write off in the past, including basics like half of what they were writing off maybe on a mortgage, that got removed, or if they have employees, the things that they might buy them or gift them couldn’t be written off anymore. We can go through a major list but the bottom line here is that’s just the beginning. That’s just the beginning. We’re seeing it. We’re hearing the conversation. It’s a real problem we’re having. Don’t put yourself at risk by just locking your money away for retirement in retirement plans, instead retire that concept, invest in yourself, build up that cash flow, discover your investor DNA, become economically independent by creating enough cash flow to cover your basic expenses, your platform is handled, you’re in a stable position and you can swing for the fences in what you wanna do. Retire from retirement and start start to retire into what is your impact? What is your legacy? How can you have a great quality of life along the way? And how can you make sure to live within your means by being more efficient and expanding your means rather than getting stuck in a budgetary mindset where we lose the gifts and value of who you are and what you have. This world needs what you have, I know that because we have major problems in the world and I have a belief deep down that all those problems are solved within the people that are actually alive today but most of ’em, because they’re confused about money, because they’re susceptible to scarcity ’cause they don’t know how the rules of the world work in the economy and money, that they get distracted and derailed, then we never get their true contribution. If you only invest in what you know, you start building up a bunch of savings, you build a business as one of your core assets of your portfolio and you funnel money, time and attention into that, you create a lot more cash flow. You become more powerful. You become a leader and you are more recession proof. That’s what we’re here for, financial strength and for you to have an abundant happy life, where you build that life you love and you create a legacy that lasts. So, let’s see. “How’s the new tax plan hurt us?” Mark. Well, Mark, I will say that we did a pretty decent job here at Wealth Factory navigating and figuring out all the things that they did. The major thing that we figured out was 199A and what people could do for the pass-through deduction. That was suppose to be a major benefit to everyone for many people because they were in the service business or the amount of income they had. They didn’t know how to take full advantage of it. Also pulling back certain things that I mentioned before, like half of a mortgage deduction got removed or some of the fringe benefits but the fact that before you had to earn a certain amount of money before your taxes rose. Some of those got lowered so that people got to a higher bracket faster even though the higher brackets got a little bit lower rate, people were starting to experience higher taxes even faster than before and more than anything it hurt people because it was hard for people to interpret what’s everything that’s going on? How does it work? How does it impact me? And most accountants at accounting firms were so late in the game to figure it out because they’re waiting on the IRS that we started to see people pay more in tax than they thought. For those that learned the strategy I taught around intellectual property that I learned from our attorney, they removed that, where you couldn’t depreciate intellectual property the same way. It become a capital loss verses something you’d write off almost like real estate. That was a major hit to me. The good news is, we went to work on the notes, on the information. I could pull it up right here. These are just some of the guides that came from Tom and a bunch of the team on the different things that small business owners could do, 300 plus tax savings deductions. This was around the new plan. How to have the right tax record keeping. Our three by three strategy. We did so many things that I didn’t end up paying as much tax as I thought I was going to even though it was more than I wanted. “Do you recommendation precious metals?” Jim, I recommendation having one months expenses set aside in precious metals. Precious metals are one of those things that, yeah, when people get hysteric when there’s a lot of hype they get a lot of people that are caught up on, oh, I’ve gotta figure this out. I’ve gotta have a hedge against the dollar collapsing. The reality is, if the dollar collapses, gold’s not gonna have that much more value long term because it’s still not an actually commodity that we can utilize. It’s just something that is a storage of value and once we moved into a fiat system it started to change things on the way we fractionalize interest and the dollar amount being backed, obviously by gold. So, there is merit to it but I think that it’s a pretty volatile thing that if it’s not part of your investor DNA, my only advice is have one to three months of expenses set aside with actual gold not just a note on the gold because it could be a basic hedge. “How does Cash Flow Insurance help with inflation?” Okay Stan, a couple ways that it could help with inflation is one, the the death benefit can start to light up and open up other assets. So, the death benefit is something that can be coordinated with other assets in retirement years to increase cash flow. One strategy we teach is called pension maximization, where if you have an annuity or you have an investment account and you’re normally just taking interest, you can start taking principal and interest so you’re spending more every year and the death benefit’s there to replenish it after it’s been consumed. So, you can increase the amount that you’re spending rather than living interest only. Another thing is we can start putting tax efficiency through things like charitable trust that we use that death benefit in conjunction with so you just don’t disinherit your family but you don’t pay taxes on the sale of major assets like real estate, stocks or a business, so now all of a sudden rather than paying tax you get it tax free and you can actually create a tax deduction, therefore giving you a 50% more income. Now, that’s a lot of information in a short period of time. ‘What Would the Rockefeller’s Do?’ goes into detail on that. The other way it can help with inflation is yeah, the interest you would earn or dividends will be adjusted somewhat for inflation but never really great. They’re always slow. Interest rates are low right now, Cash Flow Banking and Cash Flow Insurance and those life insurance plans have a higher interest rate than the low interest rates out there. If that goes back to the Carter years and we see double digit interest rates, double digit interest rates will be with the institutions not necessary in the insurance policies. The highest I think I’ve ever seen is 13.25% dividend. That was at a time where you could get that in a certificate of deposit. So, what you’ll do, is you have all that savings set aside in the cash value that you can utilize and if interest rates skyrocket you can use that cash ’cause it’s not trapped like a retirement plan, to buy other inflation proof or inflation adjusted type assets. So, the death benefit number one. The tax advantage is number two. And number three that you have use and you can get to that cash value at any time, number three. And plus the best battle for inflation is more money. You’re getting 400 to 800% better returns in your cash values than you’re gonna get ina bank account. You’re cutting out the middle man of the bank. Awesome. Cash it out. That’s what I did and then funded my whole life policy, my CPA friends weren’t impressed. “Can we advise our clients to liquidate an IRA “and not have risk for it?” Well, I don’t know. I mean, I don’t, I leave that up to our registered investment advisor, Ryan O’Shea, in our network ’cause he’s a RA, he’s got all the certifications, he’s got fiduciary responsibility and he can analyze that and let people know what their options are so they can make those choices. For me to do this on a webinar, I’m giving general information. I didn’t tell anyone exactly, here everyone should go do this. I said what I would do is cash it out but here’s other options for everyone else. So, it’s gotta be a fiduciary type of thing. You give ’em full disclosure and then your probably okay but I would really have an investment advisor on board. “Will Roth IRAs be taxed “or is this a risk for politicians “to change this interest he future?” Amber. Well, look, I think they will. I think, if you read the fine print it says it’s tax deferred and under certain circumstances you can benefit in a tax free manner. Why wouldn’t they attack it? I just think it’ll be the last thing they attack. So, there’s a little bit more flexibility in a Roth. You can cash that thing out and get your principal back without a penalty and without taxes. You’ll only be paying penalty and taxes on the growth, so I like that a lot better than these other plans. And look, on all these plans, if you can get a checkbook attached to it because it’s a self directed, you can move so much faster. Where sometimes I’ve seen people where it takes 90 days plus. “I’m 47 years old and have been an avoider. “Trust is really hard for me. “how do I start this, be comfortable, “have the ability to have intelligent conversations “with my current advisor and know this is going to work?” Well, Charles, I feel like this is a good step. You could invite them to watch these things, read the books that I have and you just really gotta understand, how are they compensated? What kind of advise will they have based upon how they’re compensated? Because really good, well intentioned people that might not be a way that they can make money. I met this guy John and he was really good with art with wine and with really cool real estate, anything from hotels or high end real estate. Yet he’s investing in a retirement plan with his advisors and he was hating it. And I said, why you doing that? And he goes, well that’s what they recommend. I’m like, well, these other three things are actually part of investor DNA why don’t you stop doing that and go here? It was such a subtle comment but it changed his world drastically. So, when I look at your situation, the best thing I’ve seen with Wealth Factory is when people bring their advisor to our wealth acceleration workshops, wealthfactory.com/workshop. You can check out what they are a little bit. But that absolutely has gotten 100% of the time us and their advisor on the same page. You get two and a half days. There’s no sponsors, there’s no sales pitches. We actually do a bonus session if you wanna learn about who we are an how to work with us but it’s not in the normal session and that’s one of the best ways we’ve shown people where they’re set, where they’re not set, what the philosophies are, what the methodologies are, whether they could lose cash flow, where their risks are and having those assessments, if they have their advisor there, we’ve just seen that they’re more than willing to collaborate with us. If not, it’s kinda like, well, if you meet us in person that might help with some of the trust issues. If you see that we’re not, that Wealth Factory compensated on any transactions but you’re just writing us a check. That’s little bit different level because now we can be kind of an advocate and we can also be someone of your do diligence team verses someone who’s compensated because we sell mutual fund or because we sell life insurance, which those are things that we refer out to investment advisors and network people but we’re not handling individually and you can work with all of your own advisors on that. “Can any of this work if I’m a single parent “that makes 70K and works for a company as an employee?” Charles, Dale Clark is probably the best example of this. I mean, he was making a similar amount of money, only had a 401K, had four kids at home and was married as an employee designing airplane engines and the reality is, he made this work in 362 days, where within a year he was economically independent. Now, that took a lot of effort on his part, that took a lot of discovery and investing in himself and education but it totally transformed his life. He now become a business owner. Not everyone has to be but he chose to be that. So, absolutely. This can abs– You don’t have to put money in a retirement plan. You can start to be more efficient with you money. You could start to pay down loans if you have loans. You can start to capture money in Cash Flow Banking. Doesn’t matter employed as an employee or the business owner. Those all work. If you’re a business owner, there’s a few strategic advantages you have on the tax side and and on the growth side but even as an employee we look to help people become entrepreneurs. How can you increase your wealth by understanding how you contribute to the bottom line of the organization and have an upside potential for those contributions. And that’s a big part of that conversation. “If I have a Roth with Vanguard would this be something “that’s still at risk like a 401K with the government?” Ryan, a Roth is still at risk. Less risk than a 401K but still a government qualified plan, which I covered a little bit ago so I probably already answered your question, but it is still risky just not as risky because at least you have after tax dollars in there and you can pull that money out without the penalties on the principal side and Vanguard is gonna have much lower fees. “Hello, Garrett. “I view your classes with Renodis” Awesome. “Should I cash out my stocks to be cash strong “for what is coming up, recession, et cetera?” Todd. Well, look Todd. How much do you know about those stocks? What’s your downside protection on those stocks? Are they part of your investor DNA? Do you have competency and drivers around and where you pay attention? Are they part of your value system? Do you know why they would go up or down? Those are the questions to ask. If it were me, I don’t have any money in stocks. It’s not my cup of tea. It’s not my game. It’s not where I’m paying attention. I don’t do a lot with real estate, very minimal. What I do is stuff with Wealth Factory. That’s where I like to invest. Where I like to grow this business ’cause my reach of how we gonna get to one million? Look, that’s what keeps me up at night. I don’t have so much cash I’m goin, oh, I’m good. I’m just gonna go invest in other things I don’t know anything about. I’m goin’, a million? We got a long way to go. Let’s get there. Let’s put money into it. Let’s invest back into this. “If I build up cash am I in trouble when inflation hits?” Well, look, you’re not gonna sir on cash forever. You’re gonna sit on cash until the opportunities come. And inflation, I mean, yeah, it’s gonna exist but in the next year or two, maybe three years, you’re gonna see so much opportunity. This is one of the things, rooky investors always stay invested. Pros sit on the sidelines. Inflation will impact you during that time but you can make that up when you find the right opportunities and you pounce on it. That’s gonna far out perform staying in something that’s declining at a time there’s inflation. So, Cash Flow Banking is one of the ways you battle that inflation ’cause now you’re saving four maybe five percent, which according to the government that’s greater than inflation, I still think that’s questionable but the bottom line is your battling it better and you still have assess to that cash. So, Cash Flow Banking is a major solution. “My husband got fired from a company “and his 401K is still with the employer as the retirement. “How can I relocate this money so it becomes our investment? “All financial retirement agents, even fiduciary ones, “only have investments in stocks and bonds or annuities. “How can we get access to this money “and make it work for us not against us?” Well, one thing you can do is roll it to a self directed IRA is step number one. Self directed IRA. He’s no longer working there, so we can roll it over. Roll it to that self directed IRA. There’s no tax in that rollover and now you can invest it in more things than just stocks and bonds. There’s companies like Pensco, Equity Trust. There’s a lot of those companies out there that could be that fiduciary to come help you out. So, you can move that over at that point and if you do, then you can invest in other things and then you can employ other things like the 72T we talked about or you could start putting some of it in Cash Flow Banking or you can invest in businesses you don’t control, as long as you’re not the main owner. There’s a lot of potential there but it’s still only step one because you’re still gonna have the issue of what happens when government raises taxes? What happens when they have those types of pressures and these plans are kinda sitting ducks but at least that’s the first step. The second step is how do you start getting that out of there over time with the least amount of penalty? Well, if he lost his job you might just take the hit and say, well, this year we’re gonna make less money than we have in other years, so the 10% penalty with the lower tax rate isn’t the worst thing ’cause you’re gonna wanna, Email or check out builders at WealthFactory.com to get set up with a phone call with someone on the team. Check out our, if you see our wealth group ring come across your desk, these are the kind of things that can help you with resources on it. “Garrett, what’s your position on reverse mortgages “for retired folks, age 75 plus? “The retired invest in IRAs “and take a monthly distribution to live on, et cetera.” Well, I kind of liked Roth IRAs for 75 plus because you’re not paying taxes on it. It’s where the banks now giving you money based upon the value of your home. It’s essentially a loan but you’re not writing checks to them because it’s, There’s lot of options for this in a tax efficient way. You gotta be careful, what is your home worth? What happens when you die? Who gets the home? But everyone should at least be aware of what these are and I love it because Tim, in our wealth architecture premium program, does a lot of deep kind of research on this and has taught people around this and has really helped people out in that situation. So, it’s a viable thing to look into. For those that are above 75 years old, yeah, check out a reserve mortgage, how does it work, how might it benefit you and what are the negatives or the obstacles if you get to it? “Is there a tax safe vehicle where I can still work “and invest the money?” I mean, you can put money in Cash Flow Banking, which is the overfunded cash value, pull that money out to invest in other things when there’s the right opportunity and then put it back in. Yeah, you can, There’s a Roth IRA that if you move and convert over, and you can use the self directed but it still has some of these qualified plan issues that are gonna come up down the road, just less issue than 401Ks and other IRAs, which are all pretax. But I’m not a fan of defined benefits. Really there’s private placement life insurance. There’s overfunded insurance. Insurance become a pretty efficient tax safe vehicle where you can work to invest money. Private placement, you can put whatever investments, for the most part, that you want inside of that, you just have to qualify for it and it’s usually like a million dollar a year deposit. So, it’s kind of has a high bench mark to get into where overfunded cash value, like we talked about in Cash Flow Banking, that doesn’t have the same kind of high mark to get over. There’s all sorts of plans out there that are offshore. There’s all sorts of plans that are pension type plans that I feel they still fall into the same category as retirement plans but be careful, we don’t ever want the tax tail to wag the dog. We don’t wanna jump into a tax plan because it looks like it saves us now but sets us up for failure in the future. The best thing you could possibly do is build a tax team, meet with ’em every quarter, look back every three years to make sure you don’t overpay. That tax team could be a bookkeeper, a tax strategist, and an attorney, which could either be a tax or a corporate attorney, and if you own a building, it can be an engineer. And then you maximize all your tax deductions. If you won a business that could be everything from paying your kids, that could be efficient, renting out your home to your business, that could be really a good tax deduction. There’s hundreds of strategies on tax deductions but the big thing is reclassifying your income. How can you take taxable income and make it tax free? How can you make ordinary income become capital gains? How can you make active income become more passive? Those are the things that can save us so much tax and that tax efficiency can offset what’s happening with the gains that we have with other things. Obviously if you’re willing to invest in businesses or real estate, there’s major tax advantages. You own a bunch or real estate, there’s a provision where you’re treated as a real estate professional, which gives you massive tax deductions. Or you can defer your gains in real estate and then they become capital gain. Or if it’s commercial, you can depreciate it for tax purposes. So, there’s real estate, there’s private placement life insurance, there’s businesses, there’s cash value policies. These are all very tax efficient things. Now, there’s other things out there that are investments in and of themselves that have tax benefits but if it’s not the right investment don’t take advantage of the tax benefits. This could be oil and gas. Investing in that could be tax deductible because you’re basically spending the money for oil drilling a lot of times. Or there’s even tax leans or there’s opportunity zones, which has a lot to do with real estate, typically. So, there’s a lot of possibility but just be careful not to get so seduced in the tax savings. That’s what I like about cash value. I’m storing there but I can use it when there’s opportunity and I’m only doing it, not just because of the tax savings but because of all of the estate planning, the Rockefeller method, the tax efficiency is one part with the cash values being safe from bankruptcy and liability and being available. There’s so many more benefits to that. “Garrett, we’re saving for a home down payment. “Would it make sense to save this down payment “in a whole life insurance and borrow against the policy “in one or two years when we’re ready to buy a home?” Maybe. Here’s the downside to doing that, is the first year, you might put in a dollar and only have 70 cents left over by the time all the capitalization costs for insurance and everything. That’s just in the good policies. Bad policies might take longer. If you do it, just look and see, can you ait two years? If it’s before two years, this is probably not the best place to store the cash to get a down payment for a home. “As a breast cancer survivor, “I never been able to get a whole life policy. “Would you suggest getting an annuity instead?” Ellen, if you’re married, that’s another place you can get a policy. If you have a business partner, that’s another you can get a policy. If you have kids, that’s another place you can get a policy. Or once it’s been five years, if you of to the right brokerage, they can kind of look at all the different companies. After five years, a lot of times you can get a policy. I actually have a rated policy because of a kidney issue. But I pay a little bit higher premium than most people to get the benefits that I’m teaching but it still makes more sense to do that than the other things that are available out there. An annuity, I would be careful because it’s harder to get access to your money in an annuity. It doesn’t have the same provisions that we’re talking about here. So, I don’t know that I would jump into an annuity for the same reasons that I’d jump into a whole life policy. “What kind of assets do you recommendation investing in “if we cash our our IRAs and get out of the stock market?” Peggy, I recommend paying off high interest rate loans. I recommend investing in people, processes, in technological procedures within a business to grow and scale that. I recommend investing into your own education from a financial, business and impact standpoint and skill set standpoint. I recommend just building up a ton a liquidity and waiting for the right opportunities. For those people that are passionate and they love it and it’s part of their investor DNA. Real estate’s good for them. If it’s not, it’s terrible. For some people that are willing to look at tax leans, their options rating. Here’s the key, I can’t tell you where to invest other then into your own investor DNA. And until you figure that our, all advice I’m gonna give you is limited other than your infrastructure, your foundation and the basics. So, invest first and foremost in yourself. Second, you can capture that wealth inside of cashable banking, if you’d like. And then third, you’ve gotta figure out what types of investments make sense for who you are, what you’re gonna allocate and invest time into because if someone told you Crypto currency, that might be a terrible investment for you. Real estate might be a horrible investment for you because risk is not in the investment, it’s in you the investor. What kind of investor are you? Education, team and learning is the key. I, early on, did a bunch of real estate even though I was uneducated in it. I did a hard money lending fund, which ended up taking a massive amount of my time. I did oil and gas. I did, What else did I invest in? Two IPOs. I did all these kind of things. They were more distractions than they were opportunities. But everybody was doing them at the time and the market was going well, so it looked great. The reality is, right now a lot of things look great because they’re going up but it’s the worst time to be buying into something you don’t know or understand because we’re in some of the high speculation years, which are very easy to watch this turn and go into a major decline. You’d be better sitting on the sidelines. You’d be better just keeping this money in cash and just waiting til you saw something that really made sense. “Company matches 401K dollar for dollar. “Does this overcome the tax issues you’re discussing?” Clifford, you need to make sure to attend the next one we do ’cause I’m gonna show you through not my philosophy, not me articulating anything but we’re gonna pull it up on a computer and analyze it. The older you are and the more existing money you have in the plan, the less sense it makes unless you’re over 59 and a half and you can pull it right back out. What people think is free money in dollar for dollar return, doesn’t fuel at the level that we think it does. So, it has to be analyzed. In my case, I would never do it because it’s enticing me to try to get something for nothing. Depending on the size of the organization, I’d say, can we use this money for something else. Will you match me on something that will be more valuable? They might not even wanna listen or pay attention but I never want something for nothing and there’s a big cost to it. So, we’ll analyze it and give you the real data so that you can truly make a decision verses just something philosophical there. “Should we pay off credit card debt “before investing in Cash Flow Banking?” Well, Andrew, it depends. It depends on what’s the interest rate on that loan, on that credit card and what’s the interest rate you’re earning? If this credit card is double digit interest rates, you may choose to buy term insurance, pay down those loans, renegotiate those interest rates, restructure those loans and when those loans get down lower, similar to what you’re earning in your Cash Flow Banking, then you can convert your term insurance. But if you have debt that’s keeping you up at night, that’s straining, that’s double digit interest rates, it’s costing you a lot, getting term insurance and paying that down, and then you can convert it later on, that’s absolutely something you can do, is delay that until you’re in a better position. “Does Wealth Factory have a team to help grow my business, which I’m headed towards franchising?” Todd, we have an entire phase in our main program and that phase is called scale. It’s the second phase. So, we’ve got four business coaches on how to scale and grow business. How to have the right strategic initiatives, the proper leadership, the right metrics, the right team building, the right vision overall and the habits that support that. So, absolutely, you should get in contact with us. We’ve got an amazing program that’s called Scale that’s a digital program that includes our CMO and our Chairman and myself and different people on the team sharing our biggest insights and strategies and the things that we’ve learned from coaching clients for the last 20 years to the things that we’ve done ourselves to become a Inc 500 company to the things that we know are the most easy things that people could do or the biggest mistakes people make. So, absolutely. “We just had our second girl this last Saturday.” Congratulations. “Family and friends have given us “a few thousand for a 529 plan “but this sounds like a government controlled plan, as well. “would a Coverdell be a better option? “And how would you go about setting it up?” 529 is not mine. You just repeat that mantra every night. 529 is not mine. It’s like a 401K but worse. Higher fees, plus we’re talking about a shorter time rise and what if the market doesn’t cooperate right before your daughter goes to school? So, 529 plan, not a big fan. Coverdell, not even big about that. What if you just maximized your wealth or if it has to be in their name, what if it was a trust that got you in their tax bracket verses your tax bracket? What if it was Cash Flow Banking, which started to build cash value that you could still control, even when they’re older, above 18 years old? Those are the kind of things to start considering. “If I’m 65, is it too late to start a Cash Flow Bank?” Peggy, my grandma, I believe, let’s see, she was 70 and a half when we started her Cash Flow Banking policy. It added a quarter million tax free to the estate after all expenses, after all money is spent into it. After everything now, it’s got them in a great estate plan and it made a big difference. 250 grand, they’re home was worth $39,000 when they dies, so it was a major, major deal. You’d have to analyze it and look and we can make those referrals. Make sure to get in touch with us, builders at Wealth Factory. Hopefully, Tom and Matt, if I’m givin’ ’em the right place for them to email or check in or if there’s a link that we could even throw in there for people to check some of this out. This was really to educate everyone but I love the question that we’re getting. You get it. We’re in a dangerous place putting our money in the government’s hands, putting our money in retirement plans, that these could actually be reverse benefit. We pay 37 and a half percent tax now or if we don’t, we put it in that plan, we pay no tax. When we pull it out we’re at 70%. That’s double. That’s a big problem for us. No we only get 30 cents on the dollar of what we thought was a major tax advantage. 22 trillion dollars of debt, that’s one of the mantras. Interest rates hiking is gonna totally transform price of real estate, price of vehicles. And we’re seeing major default rates and a lot of signs of an upcoming recession. I don’t want you to be scared. I want you to be prepared. I want you to pay yourself first. I want you to invest in your skill sets and your knowledge. I want you to become a better investor. I want you to cash out of anything that you don’t know and understand that’s a complete risk and gamble and instead, really build up that liquidity and really go to work for the next year or two to learn because there’s gonna be so much opportunity on where you can make money on the buy, where everyone else it’s in liquid. This is where, this is the time that if people are really wanting to get into real estate, don’t do it today. Wait for a little while and bail those out that are overextended, bought into the hype. Because I gotta tell ya, I’m just hearing so many people that are starting real estate funds and they’re dong real estate and they don’t know enough about it. And you can make major mistakes in times like this and be covered up by an upcoming market. When it goes down, you could make every decision right and still get annihilated. Because that’s the nature of the beast when we’re talking about leverage, when we’re talking about consumer behavior, when we’re talking about bank lending, when we’re talking about changes in the interest rates. There’s so many thins at play. So, are you gonna wanna pay attention that day. Is that something you know enough about? Do you have exit strategies? I think WealthFactory.com/scorecard is one of the coolest resources we have. WealthFactory.com/scorecard gives you this insight on 10 due diligence questions to make sure that you’re invested in alignment with your investor DNA. You have the values aligned. You have influence over it to some degree. Your focusing on cash flow. You’ve got a great exit strategy. And if it doesn’t score well, it’s not a good investment for you. We’re here to train you to be a better investor. We’re here to give you the support and the resources in order to do that. Some of you may high us. Some of you may just continue to utilize the things that we’re puttin’ out to the world. Either way, I want you to be part of those one million people that are economically independent, much more financially safe and secure, build a legacy that lasts, enjoy life along the way, not be 100% predicated upon what the stock market does or invested with pure speculation that may or may not work out because luck shouldn’t dictate whether you have a good life or not. Alright. We’re coming up on the hour. Looks like we have a lot of people staying tuned today. The next one, we’re gonna dive in. We’re gonna show some software and say, let’s analyze this. Let’s look at this not just from a philosophical standpoint, which philosophy’s why I feel it really begins in the foundation, but analyze it by bringing on either Dale or Tim that we work with within our credited network, or within the Wealth Factory team and show what happens when you get a match. What’s the ramification of taking money out on the back? And that’s one of the things I love about ‘What Would the Rockefeller’s Do?’ There’s this whole notion of what if you could double your rate of return with your investments? What does that get you? Or what if you could just be more efficient and recover cash through tax savings, through interest savings, through investment fees going away that are not performing or duplicate coverages and cost with insurance and we annihilate that without cutting back, we’re taking on risk. Sometimes I feel like we’re a lone voice to the masses but I’m gonna tell ya, we’re not alone because the wealthiest people in the world, they’ve known this for a long time. They’ve employed this for a long time. They’ve enjoyed this for a long time and I feel like you deserve to enjoy and employ this too because there’s no reason for the money to transfer out of your account the next recession. It’s time for you to really get ahead in a massive way by helping people that are gonna be in a bad place that only cash will be able to help them. I much rather you be the helper than the one that’s hurt by it. So, this is Garrett Gunderson, chief wealth architect at Wealth Factory. Thank you for taking the time today for investing in yourself. Make sure to stay tuned when we really dive into the nitty gritty, show you the details of this and put this on the ground for you. And I’ll continue to give you some more resources of how you get the money out that’s trapped without major penalties, without sacrificing too much but instead benefiting your life today. Take care.

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