1 00:00:00,400 --> 00:00:04,680 Speaker 1: My guess is a season CPA and Master tax advisor 2 00:00:04,680 --> 00:00:08,360 Speaker 1: with over twenty five years of industry experience. He has 3 00:00:08,400 --> 00:00:12,720 Speaker 1: developed a proven system that helps entrepreneurs achieve financial freedom 4 00:00:12,920 --> 00:00:17,239 Speaker 1: within five to seven years through strategic tax planning and 5 00:00:17,360 --> 00:00:21,920 Speaker 1: well built Please work with the Money Making Conversation masterclass. 6 00:00:22,239 --> 00:00:22,920 Speaker 2: He's a master. 7 00:00:23,440 --> 00:00:25,560 Speaker 1: Michael Wadi Ali, How you doing, Michael? 8 00:00:26,600 --> 00:00:28,680 Speaker 3: I am great. Thank you so much for having me 9 00:00:28,720 --> 00:00:30,560 Speaker 3: on your show. It's society to be here. 10 00:00:30,640 --> 00:00:31,640 Speaker 2: Let me just tell you straight. 11 00:00:31,920 --> 00:00:34,839 Speaker 1: I got a degree in mathematics, a mining sociology, and 12 00:00:34,880 --> 00:00:37,479 Speaker 1: I am afraid to do my taxes. Okay, so I 13 00:00:37,640 --> 00:00:40,040 Speaker 1: just let you know. You're talking to a guy who's 14 00:00:40,080 --> 00:00:43,760 Speaker 1: super confident everywhere, Michael. But when it comes to the taxes, 15 00:00:44,320 --> 00:00:45,360 Speaker 1: I am intimidated. 16 00:00:45,400 --> 00:00:46,000 Speaker 2: Why is that? 17 00:00:47,479 --> 00:00:49,600 Speaker 3: Yeah, that's not a good thing. Let me put that 18 00:00:49,920 --> 00:00:54,280 Speaker 3: out there. It is that way just because that's the 19 00:00:54,400 --> 00:00:58,960 Speaker 3: framework most people have had over the years, which is 20 00:00:59,880 --> 00:01:04,720 Speaker 3: the tax code is supposedly very complex and it should 21 00:01:04,800 --> 00:01:09,320 Speaker 3: be left to just professionals to deal with. I do 22 00:01:09,440 --> 00:01:12,480 Speaker 3: disagree with that. The one thing I always say to 23 00:01:13,040 --> 00:01:17,440 Speaker 3: anybody who cares to listen is the fact that weld. 24 00:01:17,400 --> 00:01:19,560 Speaker 2: Cannot be delegated Okay. 25 00:01:20,319 --> 00:01:25,520 Speaker 3: You can delegate marketing, you can delegate human resource administration. 26 00:01:26,040 --> 00:01:28,000 Speaker 2: There are lots of things in running a. 27 00:01:28,000 --> 00:01:31,560 Speaker 3: Business that you can delegate, but when it comes to 28 00:01:31,640 --> 00:01:36,520 Speaker 3: you building wealth, it's always going to be your action 29 00:01:36,720 --> 00:01:39,920 Speaker 3: that matters the most. You can have advisors like me 30 00:01:40,160 --> 00:01:43,560 Speaker 3: and many other folks around you, So you got to 31 00:01:43,680 --> 00:01:47,600 Speaker 3: embrace tax coods. It doesn't require that you become an 32 00:01:47,640 --> 00:01:51,640 Speaker 3: expert like I. Okay, it does not require that. What 33 00:01:51,680 --> 00:01:55,280 Speaker 3: it does require is you need to have a good 34 00:01:55,320 --> 00:01:58,800 Speaker 3: tax advisor who is not just telling you what to do, 35 00:01:59,480 --> 00:02:05,160 Speaker 3: what is properly educating you in a street language so 36 00:02:05,200 --> 00:02:10,800 Speaker 3: that you can understand he's reasoning behind the recommendations that 37 00:02:10,919 --> 00:02:12,080 Speaker 3: he's giving to you. 38 00:02:12,400 --> 00:02:15,000 Speaker 1: Because it's an education. You know, there are a lot 39 00:02:15,040 --> 00:02:17,400 Speaker 1: of things out there how you can save money. And 40 00:02:17,440 --> 00:02:20,680 Speaker 1: then could you read about you know, millionaires and billionaires 41 00:02:21,280 --> 00:02:24,040 Speaker 1: pay small taxes and they out there living a big life. 42 00:02:24,080 --> 00:02:26,880 Speaker 1: And you see a person an everyday employee and have 43 00:02:27,000 --> 00:02:30,000 Speaker 1: their check is going to tax. So explain how that 44 00:02:30,080 --> 00:02:33,880 Speaker 1: works there, Michael, you know, twenty five years in the 45 00:02:33,960 --> 00:02:39,160 Speaker 1: business CPA Maxter master tax expert talk to us. 46 00:02:39,960 --> 00:02:41,360 Speaker 2: So let me let me say this. 47 00:02:42,440 --> 00:02:46,200 Speaker 3: If you've ever read that book reached that product by 48 00:02:46,320 --> 00:02:51,320 Speaker 3: Robert Kiyosaki. Right, Roberts popularize what is known as the 49 00:02:51,400 --> 00:02:55,440 Speaker 3: cash flow quadrant. Basically, and I'm going to just put 50 00:02:55,440 --> 00:02:58,400 Speaker 3: this at here on the table for your listeners. The 51 00:02:58,520 --> 00:03:03,639 Speaker 3: tax code was not written for the little guys. Let's 52 00:03:03,960 --> 00:03:07,280 Speaker 3: let's just be real and honest to us, okay. The 53 00:03:07,400 --> 00:03:14,400 Speaker 3: tax code was designed by the very rich. They leverage 54 00:03:14,520 --> 00:03:18,640 Speaker 3: and influence what they wanted to become law. 55 00:03:19,320 --> 00:03:19,720 Speaker 2: Okay. 56 00:03:20,440 --> 00:03:25,880 Speaker 3: And the reality about the tax code is irrespective about 57 00:03:25,919 --> 00:03:28,960 Speaker 3: whether you are rich or or whichever side of the 58 00:03:28,960 --> 00:03:33,160 Speaker 3: cash flow quadrant you belong to, if you understand the 59 00:03:33,240 --> 00:03:37,640 Speaker 3: rules of the game, you can get the same benefit 60 00:03:37,720 --> 00:03:42,200 Speaker 3: that the big boys get. Now, the reality is most 61 00:03:42,280 --> 00:03:46,720 Speaker 3: folks they don't genuinely care to figure out what the 62 00:03:46,800 --> 00:03:49,080 Speaker 3: tax code is all about. So all they are doing 63 00:03:49,160 --> 00:03:55,000 Speaker 3: really is they're not getting into it. They're just whining 64 00:03:55,120 --> 00:03:59,400 Speaker 3: and griping about it, all right. So if you just 65 00:03:59,520 --> 00:04:02,160 Speaker 3: whine about it, then you're not going to get any 66 00:04:02,200 --> 00:04:06,200 Speaker 3: out of it, because the tax law is a set 67 00:04:06,240 --> 00:04:10,360 Speaker 3: of incentives that the government has put in place to 68 00:04:10,520 --> 00:04:14,240 Speaker 3: make us as citizens behave the way the government wants 69 00:04:14,320 --> 00:04:14,960 Speaker 3: us to behave. 70 00:04:15,640 --> 00:04:16,080 Speaker 2: Okay. 71 00:04:16,360 --> 00:04:19,120 Speaker 3: That's what the tax good is. And why do I 72 00:04:19,200 --> 00:04:21,560 Speaker 3: say that. I mean, the United States is one of 73 00:04:21,600 --> 00:04:25,320 Speaker 3: the greatest country in the world today in many respects. 74 00:04:25,360 --> 00:04:27,599 Speaker 3: I have the privilege of coming from a different part 75 00:04:27,640 --> 00:04:30,640 Speaker 3: of the world originally, and I can tell you that 76 00:04:31,320 --> 00:04:33,960 Speaker 3: there are lots of things that the US has been 77 00:04:34,040 --> 00:04:35,640 Speaker 3: very successful in doing. 78 00:04:36,320 --> 00:04:37,840 Speaker 2: And one of the ways. 79 00:04:38,040 --> 00:04:41,280 Speaker 3: The country has been very successful in achieving all of 80 00:04:41,320 --> 00:04:45,480 Speaker 3: that is leveraging the tax code. Because when you leverage 81 00:04:45,480 --> 00:04:49,040 Speaker 3: the tax cood, that drives money to that part of 82 00:04:49,080 --> 00:04:53,240 Speaker 3: the economy. Okay, for example, a lot of people rave 83 00:04:53,400 --> 00:04:57,560 Speaker 3: about real estate. You want to ask yourself, why are 84 00:04:57,680 --> 00:05:02,640 Speaker 3: there so much benefits tax benefits in real estate. The 85 00:05:02,720 --> 00:05:06,000 Speaker 3: reason for that is the government doesn't want to be 86 00:05:06,240 --> 00:05:11,599 Speaker 3: responsible for providing housing for citizens, right, So what they've 87 00:05:11,640 --> 00:05:17,440 Speaker 3: done is they've created the capital incentives to drive money 88 00:05:17,560 --> 00:05:21,120 Speaker 3: into that sector. So the idea is to always look 89 00:05:21,160 --> 00:05:24,320 Speaker 3: at what is the tax code saying today and be 90 00:05:24,360 --> 00:05:28,560 Speaker 3: able to use that code to your benefits. See the 91 00:05:28,720 --> 00:05:32,920 Speaker 3: rich people, they don't take their tax bill on this office. 92 00:05:33,000 --> 00:05:36,479 Speaker 3: They are very intentional in what they do. The tax 93 00:05:36,480 --> 00:05:38,520 Speaker 3: code is one of your fastest way of getting to 94 00:05:38,640 --> 00:05:40,719 Speaker 3: financial freedom and getting wealthy. 95 00:05:41,160 --> 00:05:43,320 Speaker 1: If you know how to leverage it, Michael, before I 96 00:05:43,360 --> 00:05:45,400 Speaker 1: asked the next question, how do we get touttoed you? 97 00:05:48,040 --> 00:05:51,560 Speaker 3: I have an email address that you can put on 98 00:05:51,600 --> 00:05:56,400 Speaker 3: your real taxes at SMITHSPA dot coms in terms as 99 00:05:56,400 --> 00:05:59,719 Speaker 3: in Apple X, as in Zero's ears in Edward as 100 00:05:59,720 --> 00:06:06,760 Speaker 3: in at SMIDCPA dot com SMEDCPA dot com. It's the 101 00:06:06,920 --> 00:06:09,760 Speaker 3: very easiest way to get me because there is two 102 00:06:09,920 --> 00:06:13,440 Speaker 3: folks who are just constantly monitoring that emails. Because I 103 00:06:13,480 --> 00:06:15,920 Speaker 3: get you, who's low people trying to get to who? 104 00:06:16,560 --> 00:06:18,400 Speaker 1: You don't want to miss an episode of Money Making 105 00:06:18,440 --> 00:06:22,680 Speaker 1: Conversations Masterclass. So right now follow a subscribe to Money 106 00:06:22,720 --> 00:06:24,039 Speaker 1: Making Conversations. 107 00:06:24,200 --> 00:06:25,799 Speaker 2: It's free and you can find. 108 00:06:25,640 --> 00:06:30,000 Speaker 1: It on the iHeartRadio app, Spotify, Apple Podcasts, or wherever 109 00:06:30,040 --> 00:06:31,360 Speaker 1: you get your podcasts. 110 00:06:32,240 --> 00:06:33,360 Speaker 2: Please don't go anywhere. 111 00:06:33,520 --> 00:06:36,640 Speaker 1: We'll be right back with more Money Making Conversations Masterclass. 112 00:06:39,320 --> 00:06:42,560 Speaker 1: Welcome back to Money Making Conversations Masterclass with me with 113 00:06:42,680 --> 00:06:47,040 Speaker 1: Shan McDonald. You have a proven six step system they 114 00:06:47,040 --> 00:06:51,400 Speaker 1: have entrepreneurs. Entrepreneurs achieve financial freedom within five to seven years. 115 00:06:51,400 --> 00:06:54,360 Speaker 1: I'm not asking you to reveal the entire concept, but how 116 00:06:54,360 --> 00:06:56,800 Speaker 1: did you come up with this concept and why does 117 00:06:56,839 --> 00:06:57,279 Speaker 1: it work. 118 00:06:57,880 --> 00:07:03,360 Speaker 3: We call it the design E E c ID. Okay, 119 00:07:04,040 --> 00:07:10,240 Speaker 3: it's a six step framework. This stands for Discover your 120 00:07:10,320 --> 00:07:15,239 Speaker 3: Wealth DNA. Basically, what that means to us as advisors, 121 00:07:15,480 --> 00:07:17,160 Speaker 3: if you come to us and you want to walk 122 00:07:17,200 --> 00:07:19,120 Speaker 3: with us, the first thing we need to figure out 123 00:07:19,120 --> 00:07:22,480 Speaker 3: to get you to make us know is how in 124 00:07:22,520 --> 00:07:26,520 Speaker 3: the world are you making money? Because in the life 125 00:07:26,600 --> 00:07:30,160 Speaker 3: that we live in, every dollar in the bank are 126 00:07:30,200 --> 00:07:32,120 Speaker 3: not equal when it comes to taxes. 127 00:07:32,200 --> 00:07:33,120 Speaker 2: So we need to know. 128 00:07:33,200 --> 00:07:36,480 Speaker 3: And understand how you're making money. So that's what Discover 129 00:07:36,600 --> 00:07:40,960 Speaker 3: your Wealth DNA stands for. And the next thing is 130 00:07:41,120 --> 00:07:46,800 Speaker 3: the E stands for we engineer tax freeze structures. See 131 00:07:48,400 --> 00:07:52,880 Speaker 3: how you do business drives in the long run, how 132 00:07:52,960 --> 00:07:55,200 Speaker 3: much of the money you make you are going to 133 00:07:55,240 --> 00:07:59,560 Speaker 3: be able to keep. Okay, there's one thing to make money. 134 00:08:00,160 --> 00:08:02,880 Speaker 3: There's a different thing on how to be able to 135 00:08:03,000 --> 00:08:07,240 Speaker 3: keep more of that money than Uncle Sam wants to take. 136 00:08:07,400 --> 00:08:09,360 Speaker 3: By the way, the Uncle Sam is not asking you 137 00:08:09,400 --> 00:08:11,880 Speaker 3: for more money than you deserve to give to them. 138 00:08:12,200 --> 00:08:14,520 Speaker 3: It's just that most people don't know how to do that. 139 00:08:14,640 --> 00:08:19,400 Speaker 3: So the EAST stands for engineer tax free structures. The 140 00:08:19,560 --> 00:08:24,880 Speaker 3: SEA stands for we tasue you how to capture your 141 00:08:25,000 --> 00:08:29,240 Speaker 3: growth and appreciation and freeze them here because if you 142 00:08:29,320 --> 00:08:33,080 Speaker 3: don't freeze wealth as your wet is green, what that 143 00:08:33,240 --> 00:08:36,319 Speaker 3: is going to do is someday when you transition out 144 00:08:36,360 --> 00:08:42,640 Speaker 3: of this world, your beneficiaries who inherit your wealth, Uncle 145 00:08:42,720 --> 00:08:44,679 Speaker 3: Sam is going to be waiting in the corner to 146 00:08:44,760 --> 00:08:47,199 Speaker 3: take forty five percent bite. 147 00:08:46,960 --> 00:08:51,280 Speaker 2: Out of that estate. O care. So that's important. 148 00:08:51,440 --> 00:08:54,960 Speaker 3: And then we do what we call we integrate very 149 00:08:55,000 --> 00:08:59,040 Speaker 3: advanced tax strategies because really these are what you were 150 00:08:59,080 --> 00:09:01,920 Speaker 3: saying about the very wedy's going all over the place. 151 00:09:02,200 --> 00:09:05,240 Speaker 3: Believe me, there's nothing they're doing that is illegal, all right, 152 00:09:05,320 --> 00:09:08,040 Speaker 3: otherwise they we all have been in jail. Now, the 153 00:09:08,200 --> 00:09:13,160 Speaker 3: this stands for we defend against tax erosion. And lastly 154 00:09:13,320 --> 00:09:16,480 Speaker 3: the E is we then also teach and put in 155 00:09:16,559 --> 00:09:22,080 Speaker 3: place how to empower the multi generational legacy that is 156 00:09:22,080 --> 00:09:22,640 Speaker 3: following you. 157 00:09:22,679 --> 00:09:23,920 Speaker 2: That's the decide. 158 00:09:24,080 --> 00:09:27,679 Speaker 3: I mean, we've done this over and over and over, 159 00:09:28,040 --> 00:09:32,120 Speaker 3: I'll say since twenty seventeen, twenty eighteen. And the answers 160 00:09:32,200 --> 00:09:36,760 Speaker 3: to why it works is because within those six steps 161 00:09:37,720 --> 00:09:42,480 Speaker 3: we are going to papsure whatever any entrepreneurs situation is 162 00:09:43,000 --> 00:09:45,160 Speaker 3: and be able to bring them to a happy place. 163 00:09:46,400 --> 00:09:49,199 Speaker 2: So that's why we've decided to trademarket. 164 00:09:49,800 --> 00:09:53,120 Speaker 3: The trademark application is with the Trademark Office and it 165 00:09:53,120 --> 00:09:56,440 Speaker 3: should be out in the couple of weeks. 166 00:09:56,880 --> 00:10:00,160 Speaker 1: Congratulations on that and thank you for the breakdown or 167 00:10:00,240 --> 00:10:04,680 Speaker 1: the desired framework, as Michael's proven six step system help 168 00:10:04,840 --> 00:10:08,800 Speaker 1: entrepreneurs achieved by the actual freedom within five to seven years. 169 00:10:08,920 --> 00:10:12,000 Speaker 1: There are actually tricks of the trades of things you 170 00:10:12,000 --> 00:10:16,400 Speaker 1: can give advice on, like how to legally play your kids. 171 00:10:16,760 --> 00:10:19,680 Speaker 1: You know, I've heard that method. You don't have one child, 172 00:10:20,160 --> 00:10:21,920 Speaker 1: but there are some people have more than one child. 173 00:10:23,040 --> 00:10:26,040 Speaker 1: Their their tax coach a tax setup where you could 174 00:10:26,120 --> 00:10:28,400 Speaker 1: legally play your kids and then right off the deduction. 175 00:10:29,440 --> 00:10:32,880 Speaker 2: Uh So the answer to that is absolutely yes. See, 176 00:10:32,920 --> 00:10:35,720 Speaker 2: these are exactly these are not these are no means, 177 00:10:35,760 --> 00:10:38,880 Speaker 2: these are nothing illegal, These are nothing, These are not 178 00:10:39,240 --> 00:10:42,400 Speaker 2: unethical things. These are not imral thinks. So, by the way, 179 00:10:43,559 --> 00:10:47,240 Speaker 2: anything any good tax advice or is telling you, you 180 00:10:47,360 --> 00:10:51,160 Speaker 2: got to check it against theory frameworks. Is it legal? 181 00:10:51,360 --> 00:10:53,320 Speaker 2: Is it ethical? Is it morrow? 182 00:10:53,760 --> 00:10:57,400 Speaker 3: It has to meet those three tests all right now? 183 00:10:57,440 --> 00:11:02,120 Speaker 3: The question you just ask, honestly, that's is taxation one 184 00:11:02,160 --> 00:11:09,079 Speaker 3: O one in my fame, all right. Okay, hiring your kids, 185 00:11:09,120 --> 00:11:12,520 Speaker 3: that's not an advanced tax strategy, all right, that's not 186 00:11:12,720 --> 00:11:14,480 Speaker 3: some sof skateed thing. 187 00:11:14,679 --> 00:11:15,800 Speaker 2: It's so basic. 188 00:11:16,720 --> 00:11:21,319 Speaker 3: Everybody should be doing that if you have a business. 189 00:11:21,640 --> 00:11:25,360 Speaker 3: See the tax code allows for it, all right, The 190 00:11:25,480 --> 00:11:27,400 Speaker 3: tax code encourages it. 191 00:11:27,920 --> 00:11:28,280 Speaker 2: See. 192 00:11:28,760 --> 00:11:32,760 Speaker 3: Laws didn't just come to be. Laws are put within 193 00:11:32,800 --> 00:11:35,520 Speaker 3: the framework. Again, I said at the beginning of our 194 00:11:35,559 --> 00:11:38,840 Speaker 3: time together that look, these things were designed by the rich. 195 00:11:39,000 --> 00:11:41,680 Speaker 3: But you know what, you don't need to be rich 196 00:11:41,800 --> 00:11:44,240 Speaker 3: to implement them, all right. 197 00:11:44,360 --> 00:11:47,040 Speaker 2: You just only need to know the rules of the game. 198 00:11:47,720 --> 00:11:50,120 Speaker 3: How do you employ your kid? Oh my god, most 199 00:11:50,160 --> 00:11:54,120 Speaker 3: of us have home offices, all right. Your kid doesn't 200 00:11:54,120 --> 00:11:57,320 Speaker 3: necessarily need to be coming to your physical office location 201 00:11:57,960 --> 00:11:59,880 Speaker 3: to do the work that they need to do. 202 00:12:00,200 --> 00:12:02,880 Speaker 2: All right. You can give them some things to do 203 00:12:02,960 --> 00:12:03,360 Speaker 2: at home. 204 00:12:03,400 --> 00:12:06,240 Speaker 3: They can be the one taking out your trash from 205 00:12:06,240 --> 00:12:07,240 Speaker 3: your home office. 206 00:12:07,440 --> 00:12:10,760 Speaker 2: They can be the one washing that car once a week. 207 00:12:10,840 --> 00:12:13,640 Speaker 3: That is a business, big I mean in my office 208 00:12:13,679 --> 00:12:17,720 Speaker 3: we have taken seven ideas that kids can do in 209 00:12:17,800 --> 00:12:22,440 Speaker 3: their businesses of their parents. Okay, and then when you 210 00:12:22,640 --> 00:12:25,440 Speaker 3: do that, you are allowed to pay them up to 211 00:12:25,520 --> 00:12:30,160 Speaker 3: fifteen or sixteen thousand dollars, which when you look at that, 212 00:12:30,160 --> 00:12:33,920 Speaker 3: that child ends up not paying any taxes. You as 213 00:12:33,960 --> 00:12:38,400 Speaker 3: the business owner, get sixteen thousand dollars. Right, That is 214 00:12:38,640 --> 00:12:42,520 Speaker 3: off your taxable income. That is passing onto the kids. Now, 215 00:12:42,520 --> 00:12:44,760 Speaker 3: whether you like it or not, your minor kids, you're 216 00:12:44,760 --> 00:12:48,720 Speaker 3: already taking care of them anyway, instead of you just 217 00:12:48,800 --> 00:12:49,720 Speaker 3: bringing the money. 218 00:12:49,559 --> 00:12:50,439 Speaker 2: Out of your pocket. 219 00:12:50,800 --> 00:12:55,120 Speaker 3: Literally, the government is subsidizing your upbringing off your kids now. 220 00:12:55,320 --> 00:12:58,560 Speaker 3: But even better than that, I can tell you I 221 00:12:58,600 --> 00:13:02,280 Speaker 3: have lots of clients. I have one particular attorney. Every 222 00:13:02,280 --> 00:13:05,079 Speaker 3: time she meets with mess like, Michael, my kids are 223 00:13:05,080 --> 00:13:07,200 Speaker 3: going to be thanking you because all of them are 224 00:13:07,200 --> 00:13:09,439 Speaker 3: going to be millionaires before they become twenty one. 225 00:13:09,800 --> 00:13:10,520 Speaker 2: Do you know why? 226 00:13:11,000 --> 00:13:15,000 Speaker 3: Because since her kids were five and seven that she's 227 00:13:15,040 --> 00:13:18,560 Speaker 3: been our client. I have taught her how to implement 228 00:13:18,640 --> 00:13:22,880 Speaker 3: that strategy, and she's been putting all that money away 229 00:13:23,360 --> 00:13:27,840 Speaker 3: into an individual retirement account for those kids, okay. 230 00:13:28,280 --> 00:13:30,240 Speaker 2: And I have taught her what to. 231 00:13:30,320 --> 00:13:33,960 Speaker 3: Do and how to move those moneys from the IRA 232 00:13:34,080 --> 00:13:38,160 Speaker 3: accounts into a rough account when the time. So my 233 00:13:38,280 --> 00:13:41,880 Speaker 3: point is that whole issue of employing your minor kids 234 00:13:42,040 --> 00:13:42,800 Speaker 3: is a no brainer. 235 00:13:43,640 --> 00:13:43,960 Speaker 2: Wow. 236 00:13:44,360 --> 00:13:46,680 Speaker 1: Well, first of all, thank you, and I hope everybody 237 00:13:46,800 --> 00:13:52,280 Speaker 1: listening and watching took notes because Michael Wadiali knows what 238 00:13:52,320 --> 00:13:56,440 Speaker 1: he's doing. He's a master, you know, tax strategist and 239 00:13:56,480 --> 00:13:58,000 Speaker 1: a CP over twenty five years. 240 00:13:58,000 --> 00:13:59,920 Speaker 2: Correct, Michael, that's correct. 241 00:14:00,280 --> 00:14:02,600 Speaker 1: Let us talk about this. You know, I much about 242 00:14:02,679 --> 00:14:06,280 Speaker 1: business owners and taxes. You know, you know, you get 243 00:14:06,320 --> 00:14:10,559 Speaker 1: the basic taxes, employee taxes, you know, property taxes, all 244 00:14:10,679 --> 00:14:14,360 Speaker 1: use utilities. But there's a general tendency that owners of 245 00:14:14,480 --> 00:14:16,359 Speaker 1: business overpay in taxes. 246 00:14:16,440 --> 00:14:17,240 Speaker 2: Why is that. 247 00:14:20,440 --> 00:14:24,920 Speaker 3: Eighty close to eighty percent of small business owners. 248 00:14:24,360 --> 00:14:25,960 Speaker 2: Over pay in taxes. 249 00:14:26,160 --> 00:14:31,720 Speaker 3: The reason for that is there is this profound fear 250 00:14:32,440 --> 00:14:36,240 Speaker 3: for taxes, and so most people have come to have 251 00:14:36,320 --> 00:14:38,240 Speaker 3: this love hate relationship. 252 00:14:38,720 --> 00:14:43,160 Speaker 2: And what they do is they completely avoid these subjects 253 00:14:43,200 --> 00:14:47,840 Speaker 2: of taxes all through the year, okay, and so they 254 00:14:47,880 --> 00:14:51,920 Speaker 2: only meet with some guy who do tax return when 255 00:14:51,960 --> 00:14:57,360 Speaker 2: it becomes very clear that April fifteen is around the corner. Okay. 256 00:14:57,800 --> 00:15:02,760 Speaker 2: You cannot operate like that and win the game of money. 257 00:15:02,960 --> 00:15:03,920 Speaker 2: You just cannot. 258 00:15:04,120 --> 00:15:08,280 Speaker 3: Really, taxes must be one of the tripods upon which 259 00:15:08,360 --> 00:15:12,880 Speaker 3: your wealth is built, because if you can really plan 260 00:15:12,960 --> 00:15:16,480 Speaker 3: your taxes legally. That's why we say we help you 261 00:15:16,560 --> 00:15:19,400 Speaker 3: get to financial freedom five to seven years faster. And 262 00:15:19,640 --> 00:15:24,280 Speaker 3: that's a very conservative number really, because when you are 263 00:15:24,280 --> 00:15:28,120 Speaker 3: not doing tax planning, you literally put yourself into a 264 00:15:28,200 --> 00:15:30,640 Speaker 3: tax jail for like eighteen years. 265 00:15:30,680 --> 00:15:32,920 Speaker 2: What do I mean by that? When you don't do 266 00:15:32,960 --> 00:15:34,000 Speaker 2: any tax planning. 267 00:15:34,320 --> 00:15:37,440 Speaker 3: For every average of eight hours that you walk every day, 268 00:15:37,800 --> 00:15:40,960 Speaker 3: almost three hours out of that eight hours is given 269 00:15:41,000 --> 00:15:41,800 Speaker 3: to the tax guy. 270 00:15:42,200 --> 00:15:45,640 Speaker 2: Wow, Now, yeah, I'm serious. Think about it. 271 00:15:45,720 --> 00:15:48,960 Speaker 3: Because you have taty seven percent margin a tax bracket 272 00:15:49,000 --> 00:15:51,400 Speaker 3: at the federal level. If you're in the state that 273 00:15:51,520 --> 00:15:54,680 Speaker 3: has stayed taxes, you got another five to eight percent. 274 00:15:55,120 --> 00:15:59,040 Speaker 3: So if you are not doing any planning, three hours 275 00:15:59,080 --> 00:16:01,840 Speaker 3: of that eight hours it's going to the tax guy. Now, 276 00:16:01,880 --> 00:16:04,680 Speaker 3: if you slip that with the guy who is doing 277 00:16:04,720 --> 00:16:08,040 Speaker 3: tax planning and it's giving only less than one hour 278 00:16:08,240 --> 00:16:10,360 Speaker 3: a day to the tax guy, who do you think 279 00:16:10,400 --> 00:16:12,960 Speaker 3: we make more money and get faster to their goals 280 00:16:13,000 --> 00:16:14,360 Speaker 3: the guy who is doing tax planning. 281 00:16:14,760 --> 00:16:15,760 Speaker 2: Most people. 282 00:16:16,920 --> 00:16:22,840 Speaker 3: They they don't know they work with tax preparers. 283 00:16:22,880 --> 00:16:26,040 Speaker 2: They are not working with tax advisors. They see difference. 284 00:16:26,440 --> 00:16:30,960 Speaker 3: Okay, yeah, so a tax preparer is just the guy 285 00:16:31,480 --> 00:16:35,440 Speaker 3: who is just taking all of your documents at the 286 00:16:35,680 --> 00:16:39,000 Speaker 3: end of the year and feeding it into a software, 287 00:16:39,360 --> 00:16:42,720 Speaker 3: and the software spits out a number and tells you 288 00:16:42,800 --> 00:16:44,880 Speaker 3: this is what your tax situation looks like. 289 00:16:45,440 --> 00:16:46,520 Speaker 2: That's compliance. 290 00:16:46,840 --> 00:16:50,080 Speaker 3: And that's why to your question about eighty percent of 291 00:16:50,200 --> 00:16:55,520 Speaker 3: small business owners, they are overpaying in taxes. Now, if 292 00:16:55,560 --> 00:16:58,760 Speaker 3: you are doing planning, you are meeting with an advisor 293 00:16:58,880 --> 00:17:02,600 Speaker 3: at the very minimum, no less than once every quarter. 294 00:17:03,160 --> 00:17:07,199 Speaker 3: You are very intentional and how to be strategic on 295 00:17:07,320 --> 00:17:09,320 Speaker 3: all the money decisions. 296 00:17:08,760 --> 00:17:09,439 Speaker 2: You are making. 297 00:17:09,880 --> 00:17:12,920 Speaker 3: In fact, before you are taking any money decisions, you're 298 00:17:12,960 --> 00:17:15,760 Speaker 3: talking to your tax guy, okay, and he or she 299 00:17:15,920 --> 00:17:19,199 Speaker 3: is making you understand and know how to structure that 300 00:17:19,320 --> 00:17:23,080 Speaker 3: transaction in the way that we optimize your tax situation. 301 00:17:23,480 --> 00:17:23,840 Speaker 2: Okay. 302 00:17:24,240 --> 00:17:27,920 Speaker 3: In fact, when you are doing tax planning, you've already 303 00:17:27,960 --> 00:17:30,919 Speaker 3: designed the end game before the years starts, and so 304 00:17:31,000 --> 00:17:32,800 Speaker 3: as the year is going, all you are doing is 305 00:17:32,840 --> 00:17:35,880 Speaker 3: like you're driving. Sometimes your slow dance because you come 306 00:17:35,920 --> 00:17:39,120 Speaker 3: into a cove. Sometimes you speed off because the road 307 00:17:39,200 --> 00:17:42,119 Speaker 3: is straight and clear. So that's what tax plan is 308 00:17:42,160 --> 00:17:45,560 Speaker 3: all about. People are over paying taxes. They are over 309 00:17:45,680 --> 00:17:49,600 Speaker 3: donating money the government has not asked them for because 310 00:17:49,720 --> 00:17:52,600 Speaker 3: they have not put in the time to work with 311 00:17:52,640 --> 00:17:53,880 Speaker 3: good tax advisors. 312 00:17:54,040 --> 00:17:55,880 Speaker 1: You don't want to miss an episode of Money Making 313 00:17:55,880 --> 00:17:59,960 Speaker 1: Conversations Masterclass. So right now, follow a subscribe the Money 314 00:18:00,240 --> 00:18:03,280 Speaker 1: Making Conversations. It's free and you can find it on 315 00:18:03,320 --> 00:18:07,840 Speaker 1: the iHeartRadio app, Spotify, Apple Podcasts, or wherever you get 316 00:18:07,880 --> 00:18:08,879 Speaker 1: your podcasts. 317 00:18:09,720 --> 00:18:10,760 Speaker 2: Please don't go anywhere. 318 00:18:11,000 --> 00:18:14,080 Speaker 1: We'll be right back with more Money Making Conversations Masterclass. 319 00:18:16,800 --> 00:18:19,800 Speaker 1: Welcome back to Money Making Conversations Master Class with me 320 00:18:20,040 --> 00:18:26,440 Speaker 1: Rashaan McDonald. Digital currency and bigcom mining. That's another area 321 00:18:26,720 --> 00:18:30,040 Speaker 1: where I will tell you, Michael, I've been I've interviewed 322 00:18:30,080 --> 00:18:32,600 Speaker 1: probably over one hundred people. I still don't get it. 323 00:18:33,359 --> 00:18:37,760 Speaker 1: Can you educate me and my listeners are simplified to 324 00:18:37,840 --> 00:18:41,080 Speaker 1: show us how that process works? You know, the digital 325 00:18:41,119 --> 00:18:43,120 Speaker 1: wallet and all these things. 326 00:18:44,280 --> 00:18:47,360 Speaker 3: So, like I said, now I decide the first thing 327 00:18:47,520 --> 00:18:51,439 Speaker 3: is the DED which is discovery your wealth DNA. Right, 328 00:18:52,359 --> 00:18:55,520 Speaker 3: So in this case, you're saying, hey, sitting across the 329 00:18:55,560 --> 00:18:57,919 Speaker 3: table from me is a guy who is trying to 330 00:18:57,960 --> 00:19:02,399 Speaker 3: get to that place of financi your freedom right through 331 00:19:02,800 --> 00:19:09,480 Speaker 3: digital asset. Now, there are almost three components if I'm 332 00:19:09,520 --> 00:19:12,639 Speaker 3: to break that down. One is the tax component, which 333 00:19:12,680 --> 00:19:16,560 Speaker 3: of course is my forte every day. The tax component 334 00:19:16,600 --> 00:19:18,919 Speaker 3: here is to look at that line of business or 335 00:19:18,960 --> 00:19:22,040 Speaker 3: that line of how to make money and say, okay, 336 00:19:22,800 --> 00:19:26,160 Speaker 3: what are the tax benefits in the air? Okay, how 337 00:19:26,200 --> 00:19:29,560 Speaker 3: does this persing? How is the ires wanting to tax 338 00:19:29,640 --> 00:19:32,159 Speaker 3: this guy or this bootload of money? I have a 339 00:19:32,240 --> 00:19:36,920 Speaker 3: tax PAYI client. He makes on the average anywhere from 340 00:19:36,960 --> 00:19:40,560 Speaker 3: two to three million every year from his digital asset treading. 341 00:19:40,960 --> 00:19:41,320 Speaker 2: Okay. 342 00:19:42,160 --> 00:19:45,600 Speaker 3: Now, the kind of strategies of structures were put in 343 00:19:45,600 --> 00:19:48,560 Speaker 3: place from him is very different from the guy who 344 00:19:48,680 --> 00:19:54,359 Speaker 3: is a manufacturer. Okay, So that's why I said how 345 00:19:54,480 --> 00:19:57,520 Speaker 3: you make money is important. Now let me go to 346 00:19:57,600 --> 00:20:00,919 Speaker 3: the cross of what I think your question is just 347 00:20:00,960 --> 00:20:04,640 Speaker 3: trying to explain what is digital assets? 348 00:20:05,080 --> 00:20:09,040 Speaker 2: All right? Okay, Now when you really look at it, 349 00:20:09,160 --> 00:20:12,120 Speaker 2: let's kind of zoom back to win. 350 00:20:14,000 --> 00:20:20,040 Speaker 3: The United States currency was back by good. I mean, 351 00:20:20,320 --> 00:20:24,640 Speaker 3: most people don't realize this. It's only as recent as 352 00:20:24,800 --> 00:20:30,320 Speaker 3: nineteen seventy two that that requirement was removed by the 353 00:20:30,320 --> 00:20:36,639 Speaker 3: then president. In the past before then, every time that 354 00:20:36,920 --> 00:20:42,920 Speaker 3: is in circulation, there is a corresponding amount of backing 355 00:20:43,119 --> 00:20:46,359 Speaker 3: or collateral, if you will want to put it that way, right, 356 00:20:46,960 --> 00:20:51,359 Speaker 3: that is sitting in a good deposit boat. Now, with 357 00:20:51,440 --> 00:20:56,040 Speaker 3: the taking away of that requirement, what has happened is 358 00:20:56,080 --> 00:21:00,600 Speaker 3: that many governments are not free to literally print money. 359 00:21:01,440 --> 00:21:02,000 Speaker 2: Literally. 360 00:21:02,280 --> 00:21:04,359 Speaker 3: I mean, so if you look at what happened during 361 00:21:04,400 --> 00:21:09,040 Speaker 3: the COVID era, we don't a lot of money into circulation, 362 00:21:09,560 --> 00:21:14,639 Speaker 3: and that was what created our inflation. Now, why is 363 00:21:14,680 --> 00:21:17,240 Speaker 3: this whole digital currency, Bitcoin. 364 00:21:16,840 --> 00:21:18,320 Speaker 2: And all of that coming into place? 365 00:21:19,040 --> 00:21:22,239 Speaker 3: All what I just explained about the big print, It 366 00:21:22,280 --> 00:21:24,760 Speaker 3: has put the next generation in the place where they 367 00:21:24,760 --> 00:21:26,920 Speaker 3: are a little bit neighbors. 368 00:21:27,280 --> 00:21:31,639 Speaker 2: They consign that there is a whole lot of thing. Yeah. 369 00:21:32,080 --> 00:21:35,600 Speaker 3: Right, So there's just this consign that all of this 370 00:21:35,760 --> 00:21:40,360 Speaker 3: is a mirrd and so that is how digital assets 371 00:21:40,440 --> 00:21:44,960 Speaker 3: or currency began to gain popularity. Now what is digital 372 00:21:45,000 --> 00:21:48,639 Speaker 3: currency really? It's really science. I mean it's awesome. I 373 00:21:48,720 --> 00:21:51,080 Speaker 3: personally pregate it may not be in our time, but 374 00:21:51,320 --> 00:21:54,280 Speaker 3: I personally pregnate we are going to get to an 375 00:21:54,359 --> 00:21:59,159 Speaker 3: era where digital assets will be the main currency of 376 00:21:59,320 --> 00:22:04,400 Speaker 3: doing business every day because it's a system that does 377 00:22:05,080 --> 00:22:08,720 Speaker 3: what we call a double entry check, Meaning if I 378 00:22:09,040 --> 00:22:13,840 Speaker 3: send something out, science puts us in a place where 379 00:22:14,160 --> 00:22:16,320 Speaker 3: the person receiving it and the person is sending it 380 00:22:16,359 --> 00:22:19,680 Speaker 3: out it matches at the same time. Now I'm trying 381 00:22:19,680 --> 00:22:22,399 Speaker 3: to give you high level what all of this bitcoin 382 00:22:22,560 --> 00:22:26,040 Speaker 3: digital assets are all about. It's just it's just a 383 00:22:27,520 --> 00:22:32,000 Speaker 3: it's just a blockchain, all right. A blockchain tells you, Okay, 384 00:22:32,000 --> 00:22:34,720 Speaker 3: if this thing has a side, it has a face. 385 00:22:35,200 --> 00:22:37,720 Speaker 3: And so that's why there is the belief that it's 386 00:22:37,760 --> 00:22:42,240 Speaker 3: going to supersede all of the fiat currency. Fiat currency 387 00:22:42,280 --> 00:22:45,119 Speaker 3: being this is money. This is the United States dollar, 388 00:22:45,200 --> 00:22:47,399 Speaker 3: this is the euro, this is and all of this 389 00:22:47,600 --> 00:22:52,919 Speaker 3: are just getting their value by reason of what the 390 00:22:53,040 --> 00:22:56,760 Speaker 3: government says. It is, not because there's something backing it. 391 00:22:57,280 --> 00:23:00,199 Speaker 3: But it's different when you are looking at the need 392 00:23:00,200 --> 00:23:04,480 Speaker 3: to assets. Digital assets are back back. It's it's following 393 00:23:04,560 --> 00:23:10,920 Speaker 3: a strong fundamental supply and demand logistics and because of that, 394 00:23:11,160 --> 00:23:14,920 Speaker 3: it's only a matter of time it will definitely surpass 395 00:23:15,119 --> 00:23:18,840 Speaker 3: the fiat currency. Okay, I don't know if that helps 396 00:23:18,880 --> 00:23:23,239 Speaker 3: anybody listening. I know everybody is different in terms of 397 00:23:23,400 --> 00:23:26,960 Speaker 3: how they embrace any new concept, but I personally, I'm 398 00:23:27,000 --> 00:23:29,200 Speaker 3: a fan believer that it's only a matter of time 399 00:23:29,359 --> 00:23:30,640 Speaker 3: it will become what it is. 400 00:23:30,920 --> 00:23:33,399 Speaker 1: Here's a quack question that should take quick My daughter 401 00:23:33,400 --> 00:23:35,439 Speaker 1: when you graduated. We gave her my wife and I 402 00:23:35,440 --> 00:23:39,080 Speaker 1: gave her graduation gaire financial guilt, and we to look 403 00:23:39,640 --> 00:23:41,879 Speaker 1: put this in a compounded interest. I want to make 404 00:23:41,880 --> 00:23:45,920 Speaker 1: sure I'm giving a good advice. Okay, compounded interest account. 405 00:23:46,520 --> 00:23:48,760 Speaker 1: Was that the right advice to give her or she 406 00:23:49,000 --> 00:23:51,480 Speaker 1: we have steered her into other options? 407 00:23:51,520 --> 00:23:51,760 Speaker 2: You know? 408 00:23:51,880 --> 00:23:53,760 Speaker 1: And by the way she's listening. 409 00:23:56,280 --> 00:23:59,440 Speaker 2: That was a good advice. But this is my advice. 410 00:23:59,600 --> 00:24:04,120 Speaker 3: You you go, you should have done that even when 411 00:24:04,160 --> 00:24:09,879 Speaker 3: she was three four five, because what is well wealth 412 00:24:10,080 --> 00:24:14,800 Speaker 3: really is compounding interests less taxes. 413 00:24:15,080 --> 00:24:16,920 Speaker 1: Okay, Okay, that's. 414 00:24:16,720 --> 00:24:17,479 Speaker 2: What wealth is. 415 00:24:17,920 --> 00:24:22,280 Speaker 3: So really you kind of lost anywhere from eighteen to 416 00:24:22,440 --> 00:24:26,240 Speaker 3: twenty years of that same money compounding before you give 417 00:24:26,280 --> 00:24:29,359 Speaker 3: it to her, So I know you definitely will know this. 418 00:24:29,640 --> 00:24:31,720 Speaker 3: I mean a lot of people talk about the Rocky 419 00:24:31,760 --> 00:24:34,760 Speaker 3: Feller method. I mean, what's all of the Rector Feller method. 420 00:24:34,840 --> 00:24:37,840 Speaker 3: All they've done is they figured out how to kind 421 00:24:37,840 --> 00:24:42,000 Speaker 3: of continue to pass well on from generation to generation 422 00:24:42,520 --> 00:24:47,760 Speaker 3: tax free, okay, and then they leverage good insurance products 423 00:24:47,800 --> 00:24:50,480 Speaker 3: in the process, which is tax free, to be able 424 00:24:50,520 --> 00:24:51,880 Speaker 3: to make sure that worth. 425 00:24:51,720 --> 00:24:52,320 Speaker 2: Is passing on. 426 00:24:52,600 --> 00:24:55,119 Speaker 3: I mean, what you did, if I'm to look at 427 00:24:55,200 --> 00:24:57,879 Speaker 3: it on the spectrum of what is wrong and what 428 00:24:58,040 --> 00:24:59,080 Speaker 3: is extremely great. 429 00:24:59,400 --> 00:25:01,760 Speaker 2: What you did for your daughter was in the middle 430 00:25:01,800 --> 00:25:05,560 Speaker 2: of that spectrum, okay, meaning you gave her a gift 431 00:25:05,720 --> 00:25:09,880 Speaker 2: and you said, look, put this money away. Now what 432 00:25:09,960 --> 00:25:12,679 Speaker 2: she can do for herself is allow that money to 433 00:25:12,840 --> 00:25:15,760 Speaker 2: compound and not be eating up by taxes. 434 00:25:15,840 --> 00:25:16,159 Speaker 1: Okay. 435 00:25:16,400 --> 00:25:19,080 Speaker 3: Now, at the point where she want to transition it 436 00:25:19,200 --> 00:25:22,720 Speaker 3: at from whatever that instrument is, that's where the good 437 00:25:22,760 --> 00:25:26,160 Speaker 3: tax advice or she'll be talking to her and say, okay, yes, 438 00:25:26,240 --> 00:25:28,840 Speaker 3: what we need to do so that when you transition 439 00:25:29,000 --> 00:25:31,880 Speaker 3: this money at from this character to this next one, 440 00:25:32,480 --> 00:25:36,520 Speaker 3: we freeze or we do some discounting of the value 441 00:25:36,680 --> 00:25:39,919 Speaker 3: so that about sixty to seventy percent of that group 442 00:25:40,400 --> 00:25:41,880 Speaker 3: is shielded from taxes. 443 00:25:42,920 --> 00:25:45,840 Speaker 1: I'll tell you you know, we've been going in circles 444 00:25:45,840 --> 00:25:48,160 Speaker 1: trying to get your most showed because you're very busy man, 445 00:25:48,240 --> 00:25:50,960 Speaker 1: and I appreciate it. But the knowledge you presented to 446 00:25:51,000 --> 00:25:53,800 Speaker 1: me on the show today, you know, people pay for 447 00:25:54,160 --> 00:25:56,399 Speaker 1: people pay for and they give it for free. On 448 00:25:56,480 --> 00:26:00,560 Speaker 1: my podcast, Money Making Conversations, Maclaed. As we exit more time, 449 00:26:00,920 --> 00:26:02,560 Speaker 1: give us your email address, Michael. 450 00:26:03,440 --> 00:26:07,800 Speaker 3: My email address is taxs t A xs in Zero's 451 00:26:07,960 --> 00:26:12,440 Speaker 3: ees and Edward s as in some at Smith CPA. 452 00:26:12,680 --> 00:26:15,359 Speaker 3: That is spelled s I S in Sam and I 453 00:26:15,440 --> 00:26:19,280 Speaker 3: said Mary double e as in ed or ds in 454 00:26:19,440 --> 00:26:23,800 Speaker 3: David see us in Charlie ps in as in Apple 455 00:26:23,840 --> 00:26:24,359 Speaker 3: dot com. 456 00:26:24,520 --> 00:26:28,840 Speaker 1: Brother, fantastic. I like your demeanor and I love your confidence. 457 00:26:28,920 --> 00:26:31,840 Speaker 1: That's key when you're dealing with people's money. Man, like 458 00:26:32,000 --> 00:26:37,400 Speaker 1: you say, you, your your your legacy of consistency, and 459 00:26:37,440 --> 00:26:39,880 Speaker 1: the fact that you like you said, man, your your 460 00:26:39,920 --> 00:26:43,440 Speaker 1: talents and your demeanors are incredible. Thank you for coming on. 461 00:26:43,560 --> 00:26:46,200 Speaker 1: Money Making Comments is a masterclass and we will talk soon. 462 00:26:46,240 --> 00:26:49,280 Speaker 2: My brother, I appreciate it absolutely. Thank you so much. 463 00:26:49,560 --> 00:26:51,080 Speaker 1: Now, if you want to be a guest on my show, 464 00:26:51,200 --> 00:26:55,800 Speaker 1: money Making Conversation Masterclass, please visit our website, Moneymaking Conversation 465 00:26:55,960 --> 00:26:58,479 Speaker 1: dot com and click to be a guest button. If 466 00:26:58,480 --> 00:27:03,359 Speaker 1: you're a small business owner, entrepreneur, motivational speaker, influencer, a nonprofit, 467 00:27:03,520 --> 00:27:04,840 Speaker 1: I want you on my show.