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The WEALTHY Never SELL Their Best ASSETS · Earn Your Leisure

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  Speaker 1: I do want to talk about We made an Instagram
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  Speaker 1: post that got a lot of traction, So take a
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  Speaker 1: couple of minutes to kind of just explain it. Said
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  Speaker 1: this a few times, but I think it's really important
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  Speaker 1: for people to understand like one of the things that
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  Speaker 1: wealthy people do when you're accumulating your assets. A lot
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  Speaker 1: of times people are like, all right, well, what's the
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  Speaker 1: point of having wealth and investing if if? Because I
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  Speaker 1: always said, like the goal, my personal goal is in
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  Speaker 1: never selling an investment.
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  Speaker 2: And it's like, well, how do you do that?
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  Speaker 1: That's kind of counterproductive because what's the point of having
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  Speaker 1: investments if you're not selling it, because you're never actually
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  Speaker 1: going to benefit from actually needing the money. So one
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  Speaker 1: level is that if you never need the money, that's
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  Speaker 1: a good thing. But another level is that if you
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  Speaker 1: need the money, you don't necessarily necessarily have to sell
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  Speaker 1: an investment to access the capital. So we put it
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  Speaker 1: in a post just briefly explain it. So talk about
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  Speaker 1: he lock right, which is a line of credit from
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  Speaker 1: a house, and a refi is a little different because
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  Speaker 1: a refile you're actually refinancing, you're having a new mortgage
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  Speaker 1: put on the house. But you're still able to get
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  Speaker 1: money out right. But the helock is a lot of credit.
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  Speaker 1: So if you have four hundred thousand dollars and you
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  Speaker 1: only need fifty, then you only need fifty, and then
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  Speaker 1: you get another twenty five. Then you get so long
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  Speaker 1: story short, it allows you the refire, and the helock
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  Speaker 1: allows you to tap into equity that's inside of the
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  Speaker 1: home without selling the home, so you still have the
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  Speaker 1: asset right. Then you have the security back loan, which
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  Speaker 1: is when you borrow from your stock portfolio. And once
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  Speaker 1: again similar to the helock, where you know you pull
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  Speaker 1: you fill out an application and they'll say, okay, you
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  Speaker 1: have a million dollars in your stock portfolio, and we'll
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  Speaker 1: give you five hundred thousand. Let's just get a more
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  Speaker 1: realistic number. If you have five hundred thousand dollars in
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  Speaker 1: your stock portfolio, they say, okay, we'll give you three
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  Speaker 1: hundred thousand dollars line of credit. And then that three
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  Speaker 1: hundred that three hundred thousand dollar line of credit is
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  Speaker 1: like a loan and like a six percent interest rate.
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  Speaker 1: Let's say, and now you can have you can tap
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  Speaker 1: into three hundred thousand dollars. The benefit of that is
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  Speaker 1: that your portfolio still stays at a half a million
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  Speaker 1: dollars and it still grows and it's not depleted as
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  Speaker 1: opposed to you cashing out three hundred thousand dollars. Now
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  Speaker 1: your portfolio goes to two hundred thousand, then you pay,
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  Speaker 1: and then you pay capital gains tax. So yes, you
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  Speaker 1: are paying interest, but most of the time the interest
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  Speaker 1: is going to be less than the capital gains.
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  Speaker 2: Tax, so it doesn't kill your compounds.
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  Speaker 1: Right exactly. So loans, that's that's one of the keys
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  Speaker 1: to that the rich utilized. So that's why I'm not
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  Speaker 1: a fan of people saying that debt is all bet
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  Speaker 1: is that bad, because when used properly, it can it
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  Speaker 1: can actually be a powerful tool because you don't pay debt,
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  Speaker 1: you don't pay taxes on debt, you don't pay taxes
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  Speaker 1: on the loan. You don't pay taxes on the loan.
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  Speaker 1: So that's vitally important to understand when you're looking to
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  Speaker 1: Bill Welf is that you can still grow wealth without
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  Speaker 1: touching it, taking money from it, paying it back at
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  Speaker 1: a relatively lower rate than if you would have taken it,
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  Speaker 1: sold it, and then had to pay taxes on it.
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  Speaker 1: Then even art, and we talked about this art thing
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  Speaker 1: with for the art thing is very important to understand
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  Speaker 1: because also with artists that if you put it in
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  Speaker 1: the office, you could be you can get a tax benefit.
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  Speaker 1: So what people do sometimes is they'll buy art, crazy art,
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  Speaker 1: they'll put it in the office and then they get
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  Speaker 1: it becomes tax deductible and then you could take a
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  Speaker 1: loan from that. So some people be like, why would
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  Speaker 1: somebody have a one hundred million dollar art collection, Why
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  Speaker 1: would somebody have a fifty million dollar art collection? Why
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  Speaker 1: would you have that? Like that's just the waste. Well,
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  Speaker 1: now if you have a ten million dollar art collection,
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  Speaker 1: now that you could potentially pull five million dollars from
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  Speaker 1: that exact street. Now you start to look and now
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  Speaker 1: you understand why all these guys buy art and collectibles
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  Speaker 1: and even why even one you know anything like that.
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  Speaker 1: And then of course life insurance it's something that you
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  Speaker 1: know if you have cash value inside of a policy,
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  Speaker 1: whole life, universal life, you canvolve from the cash value
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  Speaker 1: and same principles apply. So finally important to understand this
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  Speaker 1: because you know that's something that not a lot of
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  Speaker 1: people are fully aware of their options, and they need
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  Speaker 1: money and then they just sell their home, or they
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  Speaker 1: sell their stocks, or they sell the art, or they
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  Speaker 1: sell you know whatever. Right, But it's like you don't
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  Speaker 1: necessarily have to go down that pathway. It may not
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  Speaker 1: be the most efficient manner for you. Yeah, and your
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  Speaker 1: four one K. You can take a loan from your
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  Speaker 1: four one k as well. That's a lot of game. Yeah.
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  Speaker 3: Shout to to Troy Carter, probably one of the finest
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  Speaker 3: collectors of art that I've had the privilege just speaking
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  Speaker 3: with on a personal level. And shout out to Rich Paul.
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  Speaker 3: They actually put us on game. When we went to
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  Speaker 3: the Clutch office. We were just looking at the art
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  Speaker 3: and we're like, it's like we connect nothing but black artists.
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  Speaker 3: I'm like, oh, that's fly. But then you understand the
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  Speaker 3: business side behind it. It's like, oh, wait, each office
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  Speaker 3: has a painting in it. This is an office space.
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  Speaker 3: This is an asset class that I can now again
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  Speaker 3: used as leverage. But I think more importantly is like
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  Speaker 3: figure out how many different asset classes you can have.
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  Speaker 3: So I argue, like you said collectible, I told another day.
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  Speaker 3: I'm like, yo, I'm collecting cards right now. He's like why.
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  Speaker 3: I'm like, I'm just trying to find as many assets space.
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  Speaker 2: Bro, you know what I'm saying.
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  Speaker 3: Like I watched a sixteen million dollar Pokemon card be sold.
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  Speaker 3: I'm like, wait, hold on, let me go into crates
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  Speaker 3: and I'm like, oh wait, I got some valuables here.
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  Speaker 3: So it's about what you can have in terms of
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  Speaker 3: your asset allocation. That's what it's about. Obviously we got stocks,
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  Speaker 3: we have some real estate, we have some other things
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  Speaker 3: that we're going to announce shortly. But any collectible I
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  Speaker 3: can get my hands on that can appreciate over time
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  Speaker 3: have value.
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  Speaker 2: And I am used as leverage. You got to do it, man,
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  Speaker 2: especially in times of the rest. I don't want you
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  Speaker 2: guys to do this to go overseas. But shot out
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  Speaker 2: to my guys aying in Jersey, he just went to
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  Speaker 2: Japan to one of those card shows and he was
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  Speaker 2: telling me about the ROI like some of those cards.
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  Speaker 2: He getting seventy extra turn on. Like interesting, So playing
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  Speaker 2: all asset pools. But do this in times of duress
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  Speaker 2: or like get with a tax strategies to kind of
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  Speaker 2: plan this out. Don't just do this because you want
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  Speaker 2: to go buy a car and put it on I'm
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  Speaker 2: begging to you because a lot of y'all gonna blame
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  Speaker 2: me to tread it the options and then they got
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  Speaker 2: the stocks. Now I got a loan. I'm like, bro,
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  Speaker 2: you didn't need to play bumper cards with two g
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  Speaker 2: wagons on ig. Be responsible, please, because do you know
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  Speaker 2: that shot? They're gonna blame you. So I gotta make sure.
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  Speaker 1: And you can't take a loan from your portfolio if
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  Speaker 1: you have options in it. So that's why it's good
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  Speaker 1: to keep your options separate from your long term act
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  Speaker 1: because if you have it co mingled, they won't give
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  Speaker 1: you a loan on your portfolio. If that portfolio has options,
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  Speaker 1: and then you have two different accounts, one for options,
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  Speaker 1: one for long term, then you can take a loan
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  Speaker 1: against your long term. So that's some game if you're
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  Speaker 1: interested in you know, just having it. But yeah, you
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  Speaker 1: can do what you want with it. But that's why
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  Speaker 1: people because like I said, a lot of time people
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  Speaker 1: just say things like, look, I'm about it. Ten million.
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  Speaker 1: You had celebrities and it's like they never really fully
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  Speaker 1: explained why they're buying so much art. But it's like, oh, now, okay,
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  Speaker 1: you buy a ten million dollar art you put in
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  Speaker 1: your office it's tax deductible. Now, you could take a loan. Now,
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  Speaker 1: you can pull out five million tax free. Now it
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  Speaker 1: starts to make a little bit more sense