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Strategies to Retain Wealth: Mastering Tax Loopholes & Smart Investing · Earn Your Leisure

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  Speaker 1: As you're creating more millionaires. Right, the most important thing
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  Speaker 1: is that people if they have a million dollars, doesn't
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  Speaker 1: mean that they account is going to say a million exactly.
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  Speaker 1: So what are some strategies to make sure that people
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  Speaker 1: actually retain some of the money they're making because we know,
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  Speaker 1: depending on what state you live in, tax is going
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  Speaker 1: to cut that at least forty percent. Yea, So what
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  Speaker 1: are some strategies that entrepreneurs can use to make sure
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  Speaker 1: loopholes that they can use to make sure that they
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  Speaker 1: keep as much of the asset as possible the time
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  Speaker 1: you got let's.
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  Speaker 2: Do it man, the tax strategy, and then I'm talking
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  Speaker 2: how we advise more investment.
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  Speaker 3: One thousand percent.
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  Speaker 4: So let's say you have a million dollars and it
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  Speaker 4: ain't make a million dollars in your business. I'm gonna
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  Speaker 4: try to help you write off that whole a million dollars.
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  Speaker 4: So one of the first thing is you can do
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  Speaker 4: is you can set up a retirement plan like a
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  Speaker 4: solo for one K and that will allow you to
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  Speaker 4: put up to sixty nine thousand dollars into your retirement
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  Speaker 4: account as a business owner. And then IRS will also
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  Speaker 4: give you a sixty nine thousand dollars tax deduction for
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  Speaker 4: doing so, so you're can attack reduction for today for
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  Speaker 4: you investing for yourself in the future. Another strategy that
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  Speaker 4: we can take advantage of is setting up something called
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  Speaker 4: a private family foundation. Now these are key because it's
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  Speaker 4: a foundation that you set up, but you can give
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  Speaker 4: the money.
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  Speaker 3: To your heirs and your family.
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  Speaker 4: So we can set up a private family foundation and
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  Speaker 4: we can put up to thirty percent of our agi
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  Speaker 4: our income into this private family foundation. So if I
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  Speaker 4: make a million dollars income, I can put three hundred
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  Speaker 4: thousand dollars in my private family foundation and I arrest
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  Speaker 4: is going to give me a three hundred thousand dollars
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  Speaker 4: tax reduction.
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  Speaker 1: So now I'm at three hundred and seventy thousand deductives.
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  Speaker 5: Yeah, and this so a private family foundation. Is that
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  Speaker 5: that's a charity.
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  Speaker 3: Yeah. The charity is you set up for you and
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  Speaker 3: your family.
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  Speaker 4: So you can put this three hundred thousand dollars in
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  Speaker 4: its private family foundation and you can use it for
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  Speaker 4: scholarships for your kids, scholarships for your grandkids to go
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  Speaker 4: to college. You don't have to disperse this to anybody
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  Speaker 4: else outside of who you want to, So it does
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  Speaker 4: it have to go to a five O, one C three.
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  Speaker 3: It can go to your family, which.
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  Speaker 4: Makes it so powerful, and you only have to disperse
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  Speaker 4: five percent a year. But was key about this is
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  Speaker 4: that dispersement can be paying somebody to manage the private
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  Speaker 4: family foundation. So you can hire your own family member
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  Speaker 4: to run the foundation for you, pay them a salary,
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  Speaker 4: and that's all the money you have to distribute per
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  Speaker 4: year until you're ready to use the money later. So
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  Speaker 4: it's really like you're putting this money into that foundation
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  Speaker 4: for your family and you don't have to disperse it
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  Speaker 4: until you want to. But now your kids and your
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  Speaker 4: grandkids have a college fund, and now you don't have
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  Speaker 4: to use any of your money for it. So now
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  Speaker 4: we have about three hundred and seventy thousand. The next
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  Speaker 4: thing I would recommend you do is you purchase a
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  Speaker 4: real estate property. Because with real estate we get something
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  Speaker 4: called depreciation, and with the proper cost stack study, you
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  Speaker 4: are able to write off thirty percent of the value
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  Speaker 4: of the property that you purchase it. So if we
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  Speaker 4: purchase a half a million dollar property at thirty percent
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  Speaker 4: with the cost stake study, that's another one hundred and
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  Speaker 4: fifty thousand dollars write off that you can get and
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  Speaker 4: you just got an investment property. So now you're cash
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  Speaker 4: flowing from the investment property and you are lowering your
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  Speaker 4: taxes at.
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  Speaker 3: The same time. So now we're about a half a
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  Speaker 3: million dollars.
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  Speaker 4: We can take advantage of buying vehicles for our business,
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  Speaker 4: which this year you're able to deduct sixty percent of
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  Speaker 4: the vehicle sticker price if it weighs over six thousand pounds.
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  Speaker 4: So if you buy a sprinter for our business to
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  Speaker 4: take our clients out to lunch or whatever, that's another
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  Speaker 4: sixty thousand dollars right there. And yeah, there are some
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  Speaker 4: more strategies, but I don't want to take a bull.
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  Speaker 1: That's is good and you have a nice sprinter we saw, yeah, yeah, yeah, yeah,
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  Speaker 1: yeah for.
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  Speaker 4: Sure that was That was that was. So these are
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  Speaker 4: just some like base level strategy. And I think the
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  Speaker 4: last thing I will give people, which is very key,
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  Speaker 4: is something called the Augusta Rule, which is which is
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  Speaker 4: I don't think, I don't know why more people aren't
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  Speaker 4: talking about it.
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  Speaker 3: It's huge.
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  Speaker 4: So with the Augusta Rule, you are legally legally able
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  Speaker 4: to rent out your primary home to your business for
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  Speaker 4: up to fourteen days a year, right, and your business
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  Speaker 4: pays you rent and you don't have to recognize the
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  Speaker 4: rental income on your taxes. And if you're smart, you
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  Speaker 4: will you do this around times that your city is popping.
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  Speaker 3: So right now we're in New York and the UN
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  Speaker 3: is here.
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  Speaker 4: So we were talking about how hotel rate are three
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  Speaker 4: thousand dollars a night. So if you decided to rent
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  Speaker 4: out your home to your business right now, you can.
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  Speaker 3: You can look at the rent race. They're quadruple right now.
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  Speaker 4: So now you can charge your business two thousand dollars
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  Speaker 4: a night to rent out your home for fourteen days
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  Speaker 4: a year.
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  Speaker 3: That's twenty eight thousand dollars.
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  Speaker 4: Your business will get a twenty eight thousand dollars tax deduction,
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  Speaker 4: and you will receive that twenty eight thousand dollars tax free.
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  Speaker 4: These are literally strategies the IRS gives us to lower
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  Speaker 4: our taxes, but it's on us to learn the strategies
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  Speaker 4: of the game so that we can win the game.
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  Speaker 2: Big facts, and then we think about like, actually, how
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  Speaker 2: the money's invested. Right when you're invested in a Brokens
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  Speaker 2: account or investment account, right, I know, shout at the end,
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  Speaker 2: like he has a strategy called two techs two tech
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  Speaker 2: two index right. And in the financial services industry, right,
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  Speaker 2: we have this concept.
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  Speaker 5: Is called core satellite investing. Right, But how does that apply?
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  Speaker 2: How does that work to somebody who wants to invest
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  Speaker 2: and maybe be able to outpace the market a little bit.
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  Speaker 2: So the way I articulated is, like I call it
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  Speaker 2: the Burger King investment strategy.
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  Speaker 3: Right.
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  Speaker 2: So McDonald spends millions of dollars a year trying to figure
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  Speaker 2: out where they want to put the next McDonald's. We
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  Speaker 2: all know McDonald's also in the real estate business, so
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  Speaker 2: they're trying to figure out where is the best place
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  Speaker 2: to put it. All Burgking does right conceptually is put
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  Speaker 2: it in proximity to McDonald's. And the reason why I
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  Speaker 2: say that that's a great way to approach investing is
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  Speaker 2: because it's okay to be a copy cat if you
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  Speaker 2: copy the right cat. So when you think about Charles
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  Speaker 2: wab TD and I TV, Marior Trader got acquired Fidelity, Right,
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  Speaker 2: these big investment institutions Vanguard, they have analysts that and
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  Speaker 2: they spend millions and millions of dollars a year.
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  Speaker 5: Trying to figure out like what should be going in
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  Speaker 5: these funds?
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  Speaker 3: Right?
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  Speaker 5: You go to Vanguard dot com and look up vo Oh.
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  Speaker 2: All you got to do is click the buy button, right,
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  Speaker 2: And if you just did just that on the first
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  Speaker 2: trading day of the year, you're up twenty one percent. Right,
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  Speaker 2: So that's the first piece, right, So okay, cool, I
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  Speaker 2: copy the right cat. But then when I looked inside
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  Speaker 2: of what was inside of these funds? Right, I look
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  Speaker 2: at an index fund just like a mall. Right, you
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  Speaker 2: go to any popular city. Your favorite mall is gonna
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  Speaker 2: have hundreds of stores, right, and at any given time, some
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  Speaker 2: store is going to be more popular, some storre's gonna
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  Speaker 2: be less popular, right, But the mall itself is never
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  Speaker 2: going to close down. Right, So when you buy an
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  Speaker 2: index fund or ETF, you get to basically buy that mall.
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  Speaker 2: But when you look inside of it, Let's say that
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  Speaker 2: Apple is one of the stores inside of the mall, Right,
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  Speaker 2: we know that Apple is probably gonna be one of
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  Speaker 2: the dominant stores in that particular mall.
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  Speaker 5: Same thing with this index fundor ETF.
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  Speaker 2: So what I did, I was like, okay, well, what
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  Speaker 2: if I had ten thousand dollars to invest and of
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  Speaker 2: the ten thousand, maybe seven thousand.
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  Speaker 5: I'm buying this index fund of this ETF, but.
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  Speaker 2: With thirty percent of my portfolio, I'm identifying winners that
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  Speaker 2: might have a higher potential to outpace the broader diversified portfolio.
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  Speaker 2: Because these index funds have you know, five hundred different companies. Obviously,
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  Speaker 2: some of them are underperforming, some of they might eventually
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  Speaker 2: get replaced. So how can I identify someones that might
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  Speaker 2: have the ability to outperform.
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  Speaker 5: The Googles, the n Videos, et cetera.
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  Speaker 2: Have thirty percent of my portfolio, and you know, technology
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  Speaker 2: companies or companies I believe are gonna outpace it. And
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  Speaker 2: that's how our clients are able to outpace the market
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  Speaker 2: really every year. Right, It's a very simple strategy, and
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  Speaker 2: so it's kind of similar to what Ian talks about.
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  Speaker 2: But all you do is you're looking at a globally
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  Speaker 2: diversified ETF for index fund and then identifying what are
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  Speaker 2: the companies that have the highest probability to outpace, right,
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  Speaker 2: some of the returns.
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  Speaker 5: And combining that strategy has allowed our clients
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  Speaker 3: To do really well