WEBVTT - Money Tip: He reframes taxes from a burden into a strategic wealth building advantage. 0:00:00.400 --> 0:00:04.680 My guess is a season CPA and Master tax advisor 0:00:04.680 --> 0:00:08.360 with over twenty five years of industry experience. He has 0:00:08.400 --> 0:00:12.720 developed a proven system that helps entrepreneurs achieve financial freedom 0:00:12.920 --> 0:00:17.239 within five to seven years through strategic tax planning and 0:00:17.360 --> 0:00:21.920 well built Please work with the Money Making Conversation masterclass. 0:00:22.239 --> 0:00:22.920 He's a master. 0:00:23.440 --> 0:00:25.560 Michael Wadi Ali, How you doing, Michael? 0:00:26.600 --> 0:00:28.680 I am great. Thank you so much for having me 0:00:28.720 --> 0:00:30.560 on your show. It's society to be here. 0:00:30.640 --> 0:00:31.640 Let me just tell you straight. 0:00:31.920 --> 0:00:34.839 I got a degree in mathematics, a mining sociology, and 0:00:34.880 --> 0:00:37.479 I am afraid to do my taxes. Okay, so I 0:00:37.640 --> 0:00:40.040 just let you know. You're talking to a guy who's 0:00:40.080 --> 0:00:43.760 super confident everywhere, Michael. But when it comes to the taxes, 0:00:44.320 --> 0:00:45.360 I am intimidated. 0:00:45.400 --> 0:00:46.000 Why is that? 0:00:47.479 --> 0:00:49.600 Yeah, that's not a good thing. Let me put that 0:00:49.920 --> 0:00:54.280 out there. It is that way just because that's the 0:00:54.400 --> 0:00:58.960 framework most people have had over the years, which is 0:00:59.880 --> 0:01:04.720 the tax code is supposedly very complex and it should 0:01:04.800 --> 0:01:09.320 be left to just professionals to deal with. I do 0:01:09.440 --> 0:01:12.480 disagree with that. The one thing I always say to 0:01:13.040 --> 0:01:17.440 anybody who cares to listen is the fact that weld. 0:01:17.400 --> 0:01:19.560 Cannot be delegated Okay. 0:01:20.319 --> 0:01:25.520 You can delegate marketing, you can delegate human resource administration. 0:01:26.040 --> 0:01:28.000 There are lots of things in running a. 0:01:28.000 --> 0:01:31.560 Business that you can delegate, but when it comes to 0:01:31.640 --> 0:01:36.520 you building wealth, it's always going to be your action 0:01:36.720 --> 0:01:39.920 that matters the most. You can have advisors like me 0:01:40.160 --> 0:01:43.560 and many other folks around you, So you got to 0:01:43.680 --> 0:01:47.600 embrace tax coods. It doesn't require that you become an 0:01:47.640 --> 0:01:51.640 expert like I. Okay, it does not require that. What 0:01:51.680 --> 0:01:55.280 it does require is you need to have a good 0:01:55.320 --> 0:01:58.800 tax advisor who is not just telling you what to do, 0:01:59.480 --> 0:02:05.160 what is properly educating you in a street language so 0:02:05.200 --> 0:02:10.800 that you can understand he's reasoning behind the recommendations that 0:02:10.919 --> 0:02:12.080 he's giving to you. 0:02:12.400 --> 0:02:15.000 Because it's an education. You know, there are a lot 0:02:15.040 --> 0:02:17.400 of things out there how you can save money. And 0:02:17.440 --> 0:02:20.680 then could you read about you know, millionaires and billionaires 0:02:21.280 --> 0:02:24.040 pay small taxes and they out there living a big life. 0:02:24.080 --> 0:02:26.880 And you see a person an everyday employee and have 0:02:27.000 --> 0:02:30.000 their check is going to tax. So explain how that 0:02:30.080 --> 0:02:33.880 works there, Michael, you know, twenty five years in the 0:02:33.960 --> 0:02:39.160 business CPA Maxter master tax expert talk to us. 0:02:39.960 --> 0:02:41.360 So let me let me say this. 0:02:42.440 --> 0:02:46.200 If you've ever read that book reached that product by 0:02:46.320 --> 0:02:51.320 Robert Kiyosaki. Right, Roberts popularize what is known as the 0:02:51.400 --> 0:02:55.440 cash flow quadrant. Basically, and I'm going to just put 0:02:55.440 --> 0:02:58.400 this at here on the table for your listeners. The 0:02:58.520 --> 0:03:03.639 tax code was not written for the little guys. Let's 0:03:03.960 --> 0:03:07.280 let's just be real and honest to us, okay. The 0:03:07.400 --> 0:03:14.400 tax code was designed by the very rich. They leverage 0:03:14.520 --> 0:03:18.640 and influence what they wanted to become law. 0:03:19.320 --> 0:03:19.720 Okay. 0:03:20.440 --> 0:03:25.880 And the reality about the tax code is irrespective about 0:03:25.919 --> 0:03:28.960 whether you are rich or or whichever side of the 0:03:28.960 --> 0:03:33.160 cash flow quadrant you belong to, if you understand the 0:03:33.240 --> 0:03:37.640 rules of the game, you can get the same benefit 0:03:37.720 --> 0:03:42.200 that the big boys get. Now, the reality is most 0:03:42.280 --> 0:03:46.720 folks they don't genuinely care to figure out what the 0:03:46.800 --> 0:03:49.080 tax code is all about. So all they are doing 0:03:49.160 --> 0:03:55.000 really is they're not getting into it. They're just whining 0:03:55.120 --> 0:03:59.400 and griping about it, all right. So if you just 0:03:59.520 --> 0:04:02.160 whine about it, then you're not going to get any 0:04:02.200 --> 0:04:06.200 out of it, because the tax law is a set 0:04:06.240 --> 0:04:10.360 of incentives that the government has put in place to 0:04:10.520 --> 0:04:14.240 make us as citizens behave the way the government wants 0:04:14.320 --> 0:04:14.960 us to behave. 0:04:15.640 --> 0:04:16.080 Okay. 0:04:16.360 --> 0:04:19.120 That's what the tax good is. And why do I 0:04:19.200 --> 0:04:21.560 say that. I mean, the United States is one of 0:04:21.600 --> 0:04:25.320 the greatest country in the world today in many respects. 0:04:25.360 --> 0:04:27.599 I have the privilege of coming from a different part 0:04:27.640 --> 0:04:30.640 of the world originally, and I can tell you that 0:04:31.320 --> 0:04:33.960 there are lots of things that the US has been 0:04:34.040 --> 0:04:35.640 very successful in doing. 0:04:36.320 --> 0:04:37.840 And one of the ways. 0:04:38.040 --> 0:04:41.280 The country has been very successful in achieving all of 0:04:41.320 --> 0:04:45.480 that is leveraging the tax code. Because when you leverage 0:04:45.480 --> 0:04:49.040 the tax cood, that drives money to that part of 0:04:49.080 --> 0:04:53.240 the economy. Okay, for example, a lot of people rave 0:04:53.400 --> 0:04:57.560 about real estate. You want to ask yourself, why are 0:04:57.680 --> 0:05:02.640 there so much benefits tax benefits in real estate. The 0:05:02.720 --> 0:05:06.000 reason for that is the government doesn't want to be 0:05:06.240 --> 0:05:11.599 responsible for providing housing for citizens, right, So what they've 0:05:11.640 --> 0:05:17.440 done is they've created the capital incentives to drive money 0:05:17.560 --> 0:05:21.120 into that sector. So the idea is to always look 0:05:21.160 --> 0:05:24.320 at what is the tax code saying today and be 0:05:24.360 --> 0:05:28.560 able to use that code to your benefits. See the 0:05:28.720 --> 0:05:32.920 rich people, they don't take their tax bill on this office. 0:05:33.000 --> 0:05:36.479 They are very intentional in what they do. The tax 0:05:36.480 --> 0:05:38.520 code is one of your fastest way of getting to 0:05:38.640 --> 0:05:40.719 financial freedom and getting wealthy. 0:05:41.160 --> 0:05:43.320 If you know how to leverage it, Michael, before I 0:05:43.360 --> 0:05:45.400 asked the next question, how do we get touttoed you? 0:05:48.040 --> 0:05:51.560 I have an email address that you can put on 0:05:51.600 --> 0:05:56.400 your real taxes at SMITHSPA dot coms in terms as 0:05:56.400 --> 0:05:59.719 in Apple X, as in Zero's ears in Edward as 0:05:59.720 --> 0:06:06.760 in at SMIDCPA dot com SMEDCPA dot com. It's the 0:06:06.920 --> 0:06:09.760 very easiest way to get me because there is two 0:06:09.920 --> 0:06:13.440 folks who are just constantly monitoring that emails. Because I 0:06:13.480 --> 0:06:15.920 get you, who's low people trying to get to who? 0:06:16.560 --> 0:06:18.400 You don't want to miss an episode of Money Making 0:06:18.440 --> 0:06:22.680 Conversations Masterclass. So right now follow a subscribe to Money 0:06:22.720 --> 0:06:24.039 Making Conversations. 0:06:24.200 --> 0:06:25.799 It's free and you can find. 0:06:25.640 --> 0:06:30.000 It on the iHeartRadio app, Spotify, Apple Podcasts, or wherever 0:06:30.040 --> 0:06:31.360 you get your podcasts. 0:06:32.240 --> 0:06:33.360 Please don't go anywhere. 0:06:33.520 --> 0:06:36.640 We'll be right back with more Money Making Conversations Masterclass. 0:06:39.320 --> 0:06:42.560 Welcome back to Money Making Conversations Masterclass with me with 0:06:42.680 --> 0:06:47.040 Shan McDonald. You have a proven six step system they 0:06:47.040 --> 0:06:51.400 have entrepreneurs. Entrepreneurs achieve financial freedom within five to seven years. 0:06:51.400 --> 0:06:54.360 I'm not asking you to reveal the entire concept, but how 0:06:54.360 --> 0:06:56.800 did you come up with this concept and why does 0:06:56.839 --> 0:06:57.279 it work. 0:06:57.880 --> 0:07:03.360 We call it the design E E c ID. Okay, 0:07:04.040 --> 0:07:10.240 it's a six step framework. This stands for Discover your 0:07:10.320 --> 0:07:15.239 Wealth DNA. Basically, what that means to us as advisors, 0:07:15.480 --> 0:07:17.160 if you come to us and you want to walk 0:07:17.200 --> 0:07:19.120 with us, the first thing we need to figure out 0:07:19.120 --> 0:07:22.480 to get you to make us know is how in 0:07:22.520 --> 0:07:26.520 the world are you making money? Because in the life 0:07:26.600 --> 0:07:30.160 that we live in, every dollar in the bank are 0:07:30.200 --> 0:07:32.120 not equal when it comes to taxes. 0:07:32.200 --> 0:07:33.120 So we need to know. 0:07:33.200 --> 0:07:36.480 And understand how you're making money. So that's what Discover 0:07:36.600 --> 0:07:40.960 your Wealth DNA stands for. And the next thing is 0:07:41.120 --> 0:07:46.800 the E stands for we engineer tax freeze structures. See 0:07:48.400 --> 0:07:52.880 how you do business drives in the long run, how 0:07:52.960 --> 0:07:55.200 much of the money you make you are going to 0:07:55.240 --> 0:07:59.560 be able to keep. Okay, there's one thing to make money. 0:08:00.160 --> 0:08:02.880 There's a different thing on how to be able to 0:08:03.000 --> 0:08:07.240 keep more of that money than Uncle Sam wants to take. 0:08:07.400 --> 0:08:09.360 By the way, the Uncle Sam is not asking you 0:08:09.400 --> 0:08:11.880 for more money than you deserve to give to them. 0:08:12.200 --> 0:08:14.520 It's just that most people don't know how to do that. 0:08:14.640 --> 0:08:19.400 So the EAST stands for engineer tax free structures. The 0:08:19.560 --> 0:08:24.880 SEA stands for we tasue you how to capture your 0:08:25.000 --> 0:08:29.240 growth and appreciation and freeze them here because if you 0:08:29.320 --> 0:08:33.080 don't freeze wealth as your wet is green, what that 0:08:33.240 --> 0:08:36.319 is going to do is someday when you transition out 0:08:36.360 --> 0:08:42.640 of this world, your beneficiaries who inherit your wealth, Uncle 0:08:42.720 --> 0:08:44.679 Sam is going to be waiting in the corner to 0:08:44.760 --> 0:08:47.199 take forty five percent bite. 0:08:46.960 --> 0:08:51.280 Out of that estate. O care. So that's important. 0:08:51.440 --> 0:08:54.960 And then we do what we call we integrate very 0:08:55.000 --> 0:08:59.040 advanced tax strategies because really these are what you were 0:08:59.080 --> 0:09:01.920 saying about the very wedy's going all over the place. 0:09:02.200 --> 0:09:05.240 Believe me, there's nothing they're doing that is illegal, all right, 0:09:05.320 --> 0:09:08.040 otherwise they we all have been in jail. Now, the 0:09:08.200 --> 0:09:13.160 this stands for we defend against tax erosion. And lastly 0:09:13.320 --> 0:09:16.480 the E is we then also teach and put in 0:09:16.559 --> 0:09:22.080 place how to empower the multi generational legacy that is 0:09:22.080 --> 0:09:22.640 following you. 0:09:22.679 --> 0:09:23.920 That's the decide. 0:09:24.080 --> 0:09:27.679 I mean, we've done this over and over and over, 0:09:28.040 --> 0:09:32.120 I'll say since twenty seventeen, twenty eighteen. And the answers 0:09:32.200 --> 0:09:36.760 to why it works is because within those six steps 0:09:37.720 --> 0:09:42.480 we are going to papsure whatever any entrepreneurs situation is 0:09:43.000 --> 0:09:45.160 and be able to bring them to a happy place. 0:09:46.400 --> 0:09:49.199 So that's why we've decided to trademarket. 0:09:49.800 --> 0:09:53.120 The trademark application is with the Trademark Office and it 0:09:53.120 --> 0:09:56.440 should be out in the couple of weeks. 0:09:56.880 --> 0:10:00.160 Congratulations on that and thank you for the breakdown or 0:10:00.240 --> 0:10:04.680 the desired framework, as Michael's proven six step system help 0:10:04.840 --> 0:10:08.800 entrepreneurs achieved by the actual freedom within five to seven years. 0:10:08.920 --> 0:10:12.000 There are actually tricks of the trades of things you 0:10:12.000 --> 0:10:16.400 can give advice on, like how to legally play your kids. 0:10:16.760 --> 0:10:19.680 You know, I've heard that method. You don't have one child, 0:10:20.160 --> 0:10:21.920 but there are some people have more than one child. 0:10:23.040 --> 0:10:26.040 Their their tax coach a tax setup where you could 0:10:26.120 --> 0:10:28.400 legally play your kids and then right off the deduction. 0:10:29.440 --> 0:10:32.880 Uh So the answer to that is absolutely yes. See, 0:10:32.920 --> 0:10:35.720 these are exactly these are not these are no means, 0:10:35.760 --> 0:10:38.880 these are nothing illegal, These are nothing, These are not 0:10:39.240 --> 0:10:42.400 unethical things. These are not imral thinks. So, by the way, 0:10:43.559 --> 0:10:47.240 anything any good tax advice or is telling you, you 0:10:47.360 --> 0:10:51.160 got to check it against theory frameworks. Is it legal? 0:10:51.360 --> 0:10:53.320 Is it ethical? Is it morrow? 0:10:53.760 --> 0:10:57.400 It has to meet those three tests all right now? 0:10:57.440 --> 0:11:02.120 The question you just ask, honestly, that's is taxation one 0:11:02.160 --> 0:11:09.079 O one in my fame, all right. Okay, hiring your kids, 0:11:09.120 --> 0:11:12.520 that's not an advanced tax strategy, all right, that's not 0:11:12.720 --> 0:11:14.480 some sof skateed thing. 0:11:14.679 --> 0:11:15.800 It's so basic. 0:11:16.720 --> 0:11:21.319 Everybody should be doing that if you have a business. 0:11:21.640 --> 0:11:25.360 See the tax code allows for it, all right, The 0:11:25.480 --> 0:11:27.400 tax code encourages it. 0:11:27.920 --> 0:11:28.280 See. 0:11:28.760 --> 0:11:32.760 Laws didn't just come to be. Laws are put within 0:11:32.800 --> 0:11:35.520 the framework. Again, I said at the beginning of our 0:11:35.559 --> 0:11:38.840 time together that look, these things were designed by the rich. 0:11:39.000 --> 0:11:41.680 But you know what, you don't need to be rich 0:11:41.800 --> 0:11:44.240 to implement them, all right. 0:11:44.360 --> 0:11:47.040 You just only need to know the rules of the game. 0:11:47.720 --> 0:11:50.120 How do you employ your kid? Oh my god, most 0:11:50.160 --> 0:11:54.120 of us have home offices, all right. Your kid doesn't 0:11:54.120 --> 0:11:57.320 necessarily need to be coming to your physical office location 0:11:57.960 --> 0:11:59.880 to do the work that they need to do. 0:12:00.200 --> 0:12:02.880 All right. You can give them some things to do 0:12:02.960 --> 0:12:03.360 at home. 0:12:03.400 --> 0:12:06.240 They can be the one taking out your trash from 0:12:06.240 --> 0:12:07.240 your home office. 0:12:07.440 --> 0:12:10.760 They can be the one washing that car once a week. 0:12:10.840 --> 0:12:13.640 That is a business, big I mean in my office 0:12:13.679 --> 0:12:17.720 we have taken seven ideas that kids can do in 0:12:17.800 --> 0:12:22.440 their businesses of their parents. Okay, and then when you 0:12:22.640 --> 0:12:25.440 do that, you are allowed to pay them up to 0:12:25.520 --> 0:12:30.160 fifteen or sixteen thousand dollars, which when you look at that, 0:12:30.160 --> 0:12:33.920 that child ends up not paying any taxes. You as 0:12:33.960 --> 0:12:38.400 the business owner, get sixteen thousand dollars. Right, That is 0:12:38.640 --> 0:12:42.520 off your taxable income. That is passing onto the kids. Now, 0:12:42.520 --> 0:12:44.760 whether you like it or not, your minor kids, you're 0:12:44.760 --> 0:12:48.720 already taking care of them anyway, instead of you just 0:12:48.800 --> 0:12:49.720 bringing the money. 0:12:49.559 --> 0:12:50.439 Out of your pocket. 0:12:50.800 --> 0:12:55.120 Literally, the government is subsidizing your upbringing off your kids now. 0:12:55.320 --> 0:12:58.560 But even better than that, I can tell you I 0:12:58.600 --> 0:13:02.280 have lots of clients. I have one particular attorney. Every 0:13:02.280 --> 0:13:05.079 time she meets with mess like, Michael, my kids are 0:13:05.080 --> 0:13:07.200 going to be thanking you because all of them are 0:13:07.200 --> 0:13:09.439 going to be millionaires before they become twenty one. 0:13:09.800 --> 0:13:10.520 Do you know why? 0:13:11.000 --> 0:13:15.000 Because since her kids were five and seven that she's 0:13:15.040 --> 0:13:18.560 been our client. I have taught her how to implement 0:13:18.640 --> 0:13:22.880 that strategy, and she's been putting all that money away 0:13:23.360 --> 0:13:27.840 into an individual retirement account for those kids, okay. 0:13:28.280 --> 0:13:30.240 And I have taught her what to. 0:13:30.320 --> 0:13:33.960 Do and how to move those moneys from the IRA 0:13:34.080 --> 0:13:38.160 accounts into a rough account when the time. So my 0:13:38.280 --> 0:13:41.880 point is that whole issue of employing your minor kids 0:13:42.040 --> 0:13:42.800 is a no brainer. 0:13:43.640 --> 0:13:43.960 Wow. 0:13:44.360 --> 0:13:46.680 Well, first of all, thank you, and I hope everybody 0:13:46.800 --> 0:13:52.280 listening and watching took notes because Michael Wadiali knows what 0:13:52.320 --> 0:13:56.440 he's doing. He's a master, you know, tax strategist and 0:13:56.480 --> 0:13:58.000 a CP over twenty five years. 0:13:58.000 --> 0:13:59.920 Correct, Michael, that's correct. 0:14:00.280 --> 0:14:02.600 Let us talk about this. You know, I much about 0:14:02.679 --> 0:14:06.280 business owners and taxes. You know, you know, you get 0:14:06.320 --> 0:14:10.559 the basic taxes, employee taxes, you know, property taxes, all 0:14:10.679 --> 0:14:14.360 use utilities. But there's a general tendency that owners of 0:14:14.480 --> 0:14:16.359 business overpay in taxes. 0:14:16.440 --> 0:14:17.240 Why is that. 0:14:20.440 --> 0:14:24.920 Eighty close to eighty percent of small business owners. 0:14:24.360 --> 0:14:25.960 Over pay in taxes. 0:14:26.160 --> 0:14:31.720 The reason for that is there is this profound fear 0:14:32.440 --> 0:14:36.240 for taxes, and so most people have come to have 0:14:36.320 --> 0:14:38.240 this love hate relationship. 0:14:38.720 --> 0:14:43.160 And what they do is they completely avoid these subjects 0:14:43.200 --> 0:14:47.840 of taxes all through the year, okay, and so they 0:14:47.880 --> 0:14:51.920 only meet with some guy who do tax return when 0:14:51.960 --> 0:14:57.360 it becomes very clear that April fifteen is around the corner. Okay. 0:14:57.800 --> 0:15:02.760 You cannot operate like that and win the game of money. 0:15:02.960 --> 0:15:03.920 You just cannot. 0:15:04.120 --> 0:15:08.280 Really, taxes must be one of the tripods upon which 0:15:08.360 --> 0:15:12.880 your wealth is built, because if you can really plan 0:15:12.960 --> 0:15:16.480 your taxes legally. That's why we say we help you 0:15:16.560 --> 0:15:19.400 get to financial freedom five to seven years faster. And 0:15:19.640 --> 0:15:24.280 that's a very conservative number really, because when you are 0:15:24.280 --> 0:15:28.120 not doing tax planning, you literally put yourself into a 0:15:28.200 --> 0:15:30.640 tax jail for like eighteen years. 0:15:30.680 --> 0:15:32.920 What do I mean by that? When you don't do 0:15:32.960 --> 0:15:34.000 any tax planning. 0:15:34.320 --> 0:15:37.440 For every average of eight hours that you walk every day, 0:15:37.800 --> 0:15:40.960 almost three hours out of that eight hours is given 0:15:41.000 --> 0:15:41.800 to the tax guy. 0:15:42.200 --> 0:15:45.640 Wow, Now, yeah, I'm serious. Think about it. 0:15:45.720 --> 0:15:48.960 Because you have taty seven percent margin a tax bracket 0:15:49.000 --> 0:15:51.400 at the federal level. If you're in the state that 0:15:51.520 --> 0:15:54.680 has stayed taxes, you got another five to eight percent. 0:15:55.120 --> 0:15:59.040 So if you are not doing any planning, three hours 0:15:59.080 --> 0:16:01.840 of that eight hours it's going to the tax guy. Now, 0:16:01.880 --> 0:16:04.680 if you slip that with the guy who is doing 0:16:04.720 --> 0:16:08.040 tax planning and it's giving only less than one hour 0:16:08.240 --> 0:16:10.360 a day to the tax guy, who do you think 0:16:10.400 --> 0:16:12.960 we make more money and get faster to their goals 0:16:13.000 --> 0:16:14.360 the guy who is doing tax planning. 0:16:14.760 --> 0:16:15.760 Most people. 0:16:16.920 --> 0:16:22.840 They they don't know they work with tax preparers. 0:16:22.880 --> 0:16:26.040 They are not working with tax advisors. They see difference. 0:16:26.440 --> 0:16:30.960 Okay, yeah, so a tax preparer is just the guy 0:16:31.480 --> 0:16:35.440 who is just taking all of your documents at the 0:16:35.680 --> 0:16:39.000 end of the year and feeding it into a software, 0:16:39.360 --> 0:16:42.720 and the software spits out a number and tells you 0:16:42.800 --> 0:16:44.880 this is what your tax situation looks like. 0:16:45.440 --> 0:16:46.520 That's compliance. 0:16:46.840 --> 0:16:50.080 And that's why to your question about eighty percent of 0:16:50.200 --> 0:16:55.520 small business owners, they are overpaying in taxes. Now, if 0:16:55.560 --> 0:16:58.760 you are doing planning, you are meeting with an advisor 0:16:58.880 --> 0:17:02.600 at the very minimum, no less than once every quarter. 0:17:03.160 --> 0:17:07.199 You are very intentional and how to be strategic on 0:17:07.320 --> 0:17:09.320 all the money decisions. 0:17:08.760 --> 0:17:09.439 You are making. 0:17:09.880 --> 0:17:12.920 In fact, before you are taking any money decisions, you're 0:17:12.960 --> 0:17:15.760 talking to your tax guy, okay, and he or she 0:17:15.920 --> 0:17:19.199 is making you understand and know how to structure that 0:17:19.320 --> 0:17:23.080 transaction in the way that we optimize your tax situation. 0:17:23.480 --> 0:17:23.840 Okay. 0:17:24.240 --> 0:17:27.920 In fact, when you are doing tax planning, you've already 0:17:27.960 --> 0:17:30.919 designed the end game before the years starts, and so 0:17:31.000 --> 0:17:32.800 as the year is going, all you are doing is 0:17:32.840 --> 0:17:35.880 like you're driving. Sometimes your slow dance because you come 0:17:35.920 --> 0:17:39.120 into a cove. Sometimes you speed off because the road 0:17:39.200 --> 0:17:42.119 is straight and clear. So that's what tax plan is 0:17:42.160 --> 0:17:45.560 all about. People are over paying taxes. They are over 0:17:45.680 --> 0:17:49.600 donating money the government has not asked them for because 0:17:49.720 --> 0:17:52.600 they have not put in the time to work with 0:17:52.640 --> 0:17:53.880 good tax advisors. 0:17:54.040 --> 0:17:55.880 You don't want to miss an episode of Money Making 0:17:55.880 --> 0:17:59.960 Conversations Masterclass. So right now, follow a subscribe the Money 0:18:00.240 --> 0:18:03.280 Making Conversations. It's free and you can find it on 0:18:03.320 --> 0:18:07.840 the iHeartRadio app, Spotify, Apple Podcasts, or wherever you get 0:18:07.880 --> 0:18:08.879 your podcasts. 0:18:09.720 --> 0:18:10.760 Please don't go anywhere. 0:18:11.000 --> 0:18:14.080 We'll be right back with more Money Making Conversations Masterclass. 0:18:16.800 --> 0:18:19.800 Welcome back to Money Making Conversations Master Class with me 0:18:20.040 --> 0:18:26.440 Rashaan McDonald. Digital currency and bigcom mining. That's another area 0:18:26.720 --> 0:18:30.040 where I will tell you, Michael, I've been I've interviewed 0:18:30.080 --> 0:18:32.600 probably over one hundred people. I still don't get it. 0:18:33.359 --> 0:18:37.760 Can you educate me and my listeners are simplified to 0:18:37.840 --> 0:18:41.080 show us how that process works? You know, the digital 0:18:41.119 --> 0:18:43.120 wallet and all these things. 0:18:44.280 --> 0:18:47.360 So, like I said, now I decide the first thing 0:18:47.520 --> 0:18:51.439 is the DED which is discovery your wealth DNA. Right, 0:18:52.359 --> 0:18:55.520 So in this case, you're saying, hey, sitting across the 0:18:55.560 --> 0:18:57.919 table from me is a guy who is trying to 0:18:57.960 --> 0:19:02.399 get to that place of financi your freedom right through 0:19:02.800 --> 0:19:09.480 digital asset. Now, there are almost three components if I'm 0:19:09.520 --> 0:19:12.639 to break that down. One is the tax component, which 0:19:12.680 --> 0:19:16.560 of course is my forte every day. The tax component 0:19:16.600 --> 0:19:18.919 here is to look at that line of business or 0:19:18.960 --> 0:19:22.040 that line of how to make money and say, okay, 0:19:22.800 --> 0:19:26.160 what are the tax benefits in the air? Okay, how 0:19:26.200 --> 0:19:29.560 does this persing? How is the ires wanting to tax 0:19:29.640 --> 0:19:32.159 this guy or this bootload of money? I have a 0:19:32.240 --> 0:19:36.920 tax PAYI client. He makes on the average anywhere from 0:19:36.960 --> 0:19:40.560 two to three million every year from his digital asset treading. 0:19:40.960 --> 0:19:41.320 Okay. 0:19:42.160 --> 0:19:45.600 Now, the kind of strategies of structures were put in 0:19:45.600 --> 0:19:48.560 place from him is very different from the guy who 0:19:48.680 --> 0:19:54.359 is a manufacturer. Okay, So that's why I said how 0:19:54.480 --> 0:19:57.520 you make money is important. Now let me go to 0:19:57.600 --> 0:20:00.919 the cross of what I think your question is just 0:20:00.960 --> 0:20:04.640 trying to explain what is digital assets? 0:20:05.080 --> 0:20:09.040 All right? Okay, Now when you really look at it, 0:20:09.160 --> 0:20:12.120 let's kind of zoom back to win. 0:20:14.000 --> 0:20:20.040 The United States currency was back by good. I mean, 0:20:20.320 --> 0:20:24.640 most people don't realize this. It's only as recent as 0:20:24.800 --> 0:20:30.320 nineteen seventy two that that requirement was removed by the 0:20:30.320 --> 0:20:36.639 then president. In the past before then, every time that 0:20:36.920 --> 0:20:42.920 is in circulation, there is a corresponding amount of backing 0:20:43.119 --> 0:20:46.359 or collateral, if you will want to put it that way, right, 0:20:46.960 --> 0:20:51.359 that is sitting in a good deposit boat. Now, with 0:20:51.440 --> 0:20:56.040 the taking away of that requirement, what has happened is 0:20:56.080 --> 0:21:00.600 that many governments are not free to literally print money. 0:21:01.440 --> 0:21:02.000 Literally. 0:21:02.280 --> 0:21:04.359 I mean, so if you look at what happened during 0:21:04.400 --> 0:21:09.040 the COVID era, we don't a lot of money into circulation, 0:21:09.560 --> 0:21:14.639 and that was what created our inflation. Now, why is 0:21:14.680 --> 0:21:17.240 this whole digital currency, Bitcoin. 0:21:16.840 --> 0:21:18.320 And all of that coming into place? 0:21:19.040 --> 0:21:22.239 All what I just explained about the big print, It 0:21:22.280 --> 0:21:24.760 has put the next generation in the place where they 0:21:24.760 --> 0:21:26.920 are a little bit neighbors. 0:21:27.280 --> 0:21:31.639 They consign that there is a whole lot of thing. Yeah. 0:21:32.080 --> 0:21:35.600 Right, So there's just this consign that all of this 0:21:35.760 --> 0:21:40.360 is a mirrd and so that is how digital assets 0:21:40.440 --> 0:21:44.960 or currency began to gain popularity. Now what is digital 0:21:45.000 --> 0:21:48.639 currency really? It's really science. I mean it's awesome. I 0:21:48.720 --> 0:21:51.080 personally pregate it may not be in our time, but 0:21:51.320 --> 0:21:54.280 I personally pregnate we are going to get to an 0:21:54.359 --> 0:21:59.159 era where digital assets will be the main currency of 0:21:59.320 --> 0:22:04.400 doing business every day because it's a system that does 0:22:05.080 --> 0:22:08.720 what we call a double entry check, Meaning if I 0:22:09.040 --> 0:22:13.840 send something out, science puts us in a place where 0:22:14.160 --> 0:22:16.320 the person receiving it and the person is sending it 0:22:16.359 --> 0:22:19.680 out it matches at the same time. Now I'm trying 0:22:19.680 --> 0:22:22.399 to give you high level what all of this bitcoin 0:22:22.560 --> 0:22:26.040 digital assets are all about. It's just it's just a 0:22:27.520 --> 0:22:32.000 it's just a blockchain, all right. A blockchain tells you, Okay, 0:22:32.000 --> 0:22:34.720 if this thing has a side, it has a face. 0:22:35.200 --> 0:22:37.720 And so that's why there is the belief that it's 0:22:37.760 --> 0:22:42.240 going to supersede all of the fiat currency. Fiat currency 0:22:42.280 --> 0:22:45.119 being this is money. This is the United States dollar, 0:22:45.200 --> 0:22:47.399 this is the euro, this is and all of this 0:22:47.600 --> 0:22:52.919 are just getting their value by reason of what the 0:22:53.040 --> 0:22:56.760 government says. It is, not because there's something backing it. 0:22:57.280 --> 0:23:00.199 But it's different when you are looking at the need 0:23:00.200 --> 0:23:04.480 to assets. Digital assets are back back. It's it's following 0:23:04.560 --> 0:23:10.920 a strong fundamental supply and demand logistics and because of that, 0:23:11.160 --> 0:23:14.920 it's only a matter of time it will definitely surpass 0:23:15.119 --> 0:23:18.840 the fiat currency. Okay, I don't know if that helps 0:23:18.880 --> 0:23:23.239 anybody listening. I know everybody is different in terms of 0:23:23.400 --> 0:23:26.960 how they embrace any new concept, but I personally, I'm 0:23:27.000 --> 0:23:29.200 a fan believer that it's only a matter of time 0:23:29.359 --> 0:23:30.640 it will become what it is. 0:23:30.920 --> 0:23:33.399 Here's a quack question that should take quick My daughter 0:23:33.400 --> 0:23:35.439