1
00:00:01,680 --> 00:00:05,480
Speaker 1: Term sheets the Afro Tech Mini Cities available on YouTube.

2
00:00:05,480 --> 00:00:12,320
Speaker 1: About venture capital in New York City, February. Richard Kirby

3
00:00:12,400 --> 00:00:15,520
Speaker 1: is general partner at Equal Ventures, a VC firm based

4
00:00:15,520 --> 00:00:18,040
Speaker 1: in New York City, and we're sitting on set discussing

5
00:00:18,079 --> 00:00:20,400
Speaker 1: what it takes to not only be a VC, but

6
00:00:20,480 --> 00:00:24,239
Speaker 1: what are the characteristics of a good VC. What is

7
00:00:24,280 --> 00:00:26,920
Speaker 1: the makeup of a successful VC? And how do I

8
00:00:27,000 --> 00:00:29,920
Speaker 1: know if the gig is a fit for my personality

9
00:00:29,960 --> 00:00:32,959
Speaker 1: and profile? Yeah, I think the traits for an individual

10
00:00:33,080 --> 00:00:35,520
Speaker 1: are just inherent in somebody else. It's not really about

11
00:00:35,520 --> 00:00:38,000
Speaker 1: like what you studied in school. It's much more about

12
00:00:38,000 --> 00:00:41,360
Speaker 1: like who you are as an individual. Are you intellectually curious?

13
00:00:41,680 --> 00:00:45,680
Speaker 1: Are you um? Do you enjoy learning? It's about different things?

14
00:00:45,760 --> 00:00:49,280
Speaker 1: And I guess lastly, do you enjoy helping others? Those

15
00:00:49,280 --> 00:00:51,440
Speaker 1: are really three points that are you know, inherent to

16
00:00:51,440 --> 00:00:54,360
Speaker 1: anybody that can make them inefficient or sorry except ventry

17
00:00:54,360 --> 00:00:57,160
Speaker 1: capitalists because in the day, sourcing is a big piece

18
00:00:57,160 --> 00:00:59,880
Speaker 1: of finding companies and that means do you get excited

19
00:00:59,880 --> 00:01:02,400
Speaker 1: by finding new things? Like? Um, you can see that

20
00:01:02,400 --> 00:01:04,399
Speaker 1: in any industry you can get except by finding the

21
00:01:04,480 --> 00:01:06,880
Speaker 1: rare sneaker that you haven't seen him out yet, or

22
00:01:07,200 --> 00:01:09,080
Speaker 1: that new track on spot By you haven't heard yet

23
00:01:09,120 --> 00:01:12,840
Speaker 1: that excites people, and finding a new company excites venture capitalists.

24
00:01:13,160 --> 00:01:16,000
Speaker 1: Um doing diligence, So, you know, diving deep forgot you know,

25
00:01:16,360 --> 00:01:18,840
Speaker 1: what does company do? What space they in? How can

26
00:01:18,880 --> 00:01:21,440
Speaker 1: this company get very, very large? That's just learning. If

27
00:01:21,480 --> 00:01:24,279
Speaker 1: you enjoy learning, you'll enjoy diving deep on a company,

28
00:01:24,360 --> 00:01:26,679
Speaker 1: understand how it works or the industry that operates in.

29
00:01:27,120 --> 00:01:29,040
Speaker 1: And lastly, you know, when you're on a board of

30
00:01:29,080 --> 00:01:32,039
Speaker 1: company or an investor, you're trying to do everything possible

31
00:01:32,160 --> 00:01:33,959
Speaker 1: to help that company. You know, try to get me

32
00:01:33,959 --> 00:01:36,360
Speaker 1: as many unfair banages as possible that the founder has

33
00:01:36,440 --> 00:01:38,200
Speaker 1: less on their play, and they too in their play.

34
00:01:38,440 --> 00:01:39,840
Speaker 1: That's all that is really is helping you. So if

35
00:01:39,880 --> 00:01:41,480
Speaker 1: you enjoy helping you, well, that's a great way to

36
00:01:41,520 --> 00:01:44,959
Speaker 1: kind of manifest that inherent trade yours to, you know,

37
00:01:45,000 --> 00:01:50,400
Speaker 1: do good for a company. I'm Will Lucas, Mrs Black

38
00:01:50,400 --> 00:01:53,760
Speaker 1: Tech your Money. I want to introduce you to some

39
00:01:53,800 --> 00:01:55,960
Speaker 1: of the biggest names, some of the brightest minds and

40
00:01:56,080 --> 00:01:59,320
Speaker 1: brilliant ideas. I feel black and building or simply using

41
00:01:59,320 --> 00:02:07,559
Speaker 1: tech to secure your back. This podcast is for you, Hey,

42
00:02:07,640 --> 00:02:10,840
Speaker 1: dommin You bankers co founder and CEO of money Avenue,

43
00:02:10,960 --> 00:02:14,000
Speaker 1: which provides funding across a variety of products like residential

44
00:02:14,040 --> 00:02:17,480
Speaker 1: home loans, investment property loans, business loans and lines of credit,

45
00:02:17,560 --> 00:02:21,600
Speaker 1: and personal finance solutions. An emerging fintech company, they were

46
00:02:21,639 --> 00:02:24,040
Speaker 1: ranked as one of the fastest growing companies in America

47
00:02:24,120 --> 00:02:27,720
Speaker 1: by INC Magazine. We talk a lot about generational wealth

48
00:02:27,720 --> 00:02:30,160
Speaker 1: in our community, but do all the people who talk

49
00:02:30,200 --> 00:02:32,320
Speaker 1: about it really know what it is? Is it a

50
00:02:32,400 --> 00:02:34,880
Speaker 1: dollar amount? How do I know if I've hit it?

51
00:02:35,080 --> 00:02:38,360
Speaker 1: Or is it a system? So one of the things

52
00:02:38,360 --> 00:02:40,320
Speaker 1: that that's that's a great question, But one of the

53
00:02:40,680 --> 00:02:46,080
Speaker 1: misconceptions is generational wealth is just simply making sacrifices in

54
00:02:46,160 --> 00:02:50,400
Speaker 1: your own personal life that will benefit the next generation. Right, Um,

55
00:02:50,480 --> 00:02:52,560
Speaker 1: I'll tell you exactly what I did in my family.

56
00:02:52,680 --> 00:02:54,840
Speaker 1: So I have a three year old son. His name

57
00:02:54,919 --> 00:02:57,600
Speaker 1: is Legacy. But when he was two years old, I

58
00:02:57,720 --> 00:03:01,280
Speaker 1: basically threw a trust was able to purchase six unior

59
00:03:01,360 --> 00:03:05,440
Speaker 1: department building in North New Jersey. That apartment building is

60
00:03:05,480 --> 00:03:08,200
Speaker 1: fully paid for and it's gonna do two big things

61
00:03:08,200 --> 00:03:11,120
Speaker 1: for him. Number one, it's gonna pay for its college

62
00:03:11,200 --> 00:03:14,120
Speaker 1: education completely at the time when he's ready to go

63
00:03:14,200 --> 00:03:16,440
Speaker 1: to college. But number two, let's say he doesn't want

64
00:03:16,440 --> 00:03:18,680
Speaker 1: to go to college or chooses not to go to college,

65
00:03:18,960 --> 00:03:22,600
Speaker 1: he's gonna have a monthly income that he can use

66
00:03:22,680 --> 00:03:27,200
Speaker 1: to subsidize his living expenses or pursue whatever endeavors, whatever

67
00:03:27,320 --> 00:03:30,160
Speaker 1: has God given talents applied for it. So that's a

68
00:03:30,200 --> 00:03:33,600
Speaker 1: sacrifice that I made that I can pass on to

69
00:03:33,760 --> 00:03:36,400
Speaker 1: the next generation and hopefully he does the same. And

70
00:03:36,440 --> 00:03:39,280
Speaker 1: that's generational wealth. And it doesn't take a whole bunch

71
00:03:39,320 --> 00:03:41,600
Speaker 1: of money to do it. It really just takes a plan.

72
00:03:42,760 --> 00:03:46,800
Speaker 1: So if I say I've built generational wealth, like at

73
00:03:46,840 --> 00:03:50,120
Speaker 1: what number have I built generational wealth? Or is it

74
00:03:50,440 --> 00:03:53,320
Speaker 1: an an actual number depending on my circumstances or is

75
00:03:53,320 --> 00:03:57,680
Speaker 1: it a system. It's a system. It's really a system.

76
00:03:57,720 --> 00:04:01,040
Speaker 1: So you know, taking taking my son, right it so, uh,

77
00:04:01,040 --> 00:04:04,480
Speaker 1: he's six unit apartment building in North New Jersey. Each

78
00:04:04,600 --> 00:04:07,360
Speaker 1: unit gets about fifteen hundred dollars per month, right and

79
00:04:07,480 --> 00:04:10,640
Speaker 1: inflation and that's rents that haven't been raised through COVID.

80
00:04:10,920 --> 00:04:13,480
Speaker 1: Rents are going up. But by the time he's eighteen

81
00:04:13,560 --> 00:04:16,640
Speaker 1: years old, rents are gonna be even you know, higher

82
00:04:16,640 --> 00:04:19,240
Speaker 1: than what they are now for sure, right not to

83
00:04:19,320 --> 00:04:22,400
Speaker 1: mention the inflationary effects that's gonna take place. So it's

84
00:04:22,400 --> 00:04:25,600
Speaker 1: a system that can be passed on. And that system

85
00:04:25,800 --> 00:04:29,200
Speaker 1: really is done really only through two ways. Right. The

86
00:04:29,240 --> 00:04:31,440
Speaker 1: first way that we just spoke about is real estate.

87
00:04:31,839 --> 00:04:35,679
Speaker 1: That's one way. But also, uh, being an entrepreneur setting

88
00:04:35,760 --> 00:04:38,360
Speaker 1: up a business doing something like that's that's a that's

89
00:04:38,360 --> 00:04:41,680
Speaker 1: another system that we need more of. We need more creators,

90
00:04:41,680 --> 00:04:43,960
Speaker 1: we need more entrepreneurs, and that's what we try to

91
00:04:44,000 --> 00:04:46,640
Speaker 1: do it money. Yeah, focus on those two paths, the

92
00:04:46,720 --> 00:04:50,760
Speaker 1: real estate path and the entrepreneurship path. So when I

93
00:04:50,839 --> 00:04:53,839
Speaker 1: first started getting like super serious about my financials some

94
00:04:53,960 --> 00:04:56,320
Speaker 1: years ago, you know, and especially like being a husband

95
00:04:56,360 --> 00:04:57,719
Speaker 1: and being a father, you know, I started you know,

96
00:04:57,760 --> 00:05:00,400
Speaker 1: asking people who do this, you know, how about how

97
00:05:00,480 --> 00:05:03,960
Speaker 1: they do. And often you hear wealthy people talk about

98
00:05:04,080 --> 00:05:07,520
Speaker 1: things like insurance and life insurance specifically, and you know,

99
00:05:07,560 --> 00:05:10,400
Speaker 1: how most of us get introduced to insurance is like

100
00:05:10,480 --> 00:05:14,280
Speaker 1: car insurance, and but there's you know, life insurance has

101
00:05:14,320 --> 00:05:16,719
Speaker 1: like funding mechanisms to where you can actually use that

102
00:05:16,800 --> 00:05:20,160
Speaker 1: money to do things. And I'm interested in your take

103
00:05:20,320 --> 00:05:23,320
Speaker 1: on you know, so often we have these conversations about

104
00:05:23,320 --> 00:05:27,640
Speaker 1: how to fund our business ideas and and get companies

105
00:05:27,680 --> 00:05:30,480
Speaker 1: going in our community, and you know another communities they

106
00:05:30,480 --> 00:05:32,120
Speaker 1: can talk about. You know, where you can go raise

107
00:05:33,240 --> 00:05:35,960
Speaker 1: forty five now is from you know, friends and family

108
00:05:36,000 --> 00:05:37,839
Speaker 1: and and I don't know where you come from, but

109
00:05:38,640 --> 00:05:40,279
Speaker 1: I don't know a lot of people with families that

110
00:05:40,320 --> 00:05:43,400
Speaker 1: can write, you know, those thousands and thousands of dollar checks.

111
00:05:43,400 --> 00:05:45,960
Speaker 1: And so I wonder what your thoughts are on what

112
00:05:46,080 --> 00:05:49,320
Speaker 1: are some less thought about sources of funding to start

113
00:05:49,400 --> 00:05:52,880
Speaker 1: businesses that we may not consider often. Well. One of

114
00:05:52,920 --> 00:05:56,440
Speaker 1: the ways that we really like to show creators how

115
00:05:56,480 --> 00:06:00,720
Speaker 1: to fully become entrepreneurs and establishing businesses is leveraging their

116
00:06:00,760 --> 00:06:04,680
Speaker 1: business credit. That's one of the ways that really underutilized. Right.

117
00:06:04,720 --> 00:06:07,520
Speaker 1: So the example that I give is taking our our

118
00:06:07,600 --> 00:06:11,000
Speaker 1: as president Donald Trump. So Donald Trump has over five

119
00:06:11,120 --> 00:06:14,359
Speaker 1: hundred LLC's. One of the things that people do not

120
00:06:14,480 --> 00:06:18,920
Speaker 1: realize is that in Donald Trump filed for bankruptcy. Uh

121
00:06:19,040 --> 00:06:21,080
Speaker 1: he actually filed for banksy twice that we know of,

122
00:06:21,160 --> 00:06:23,719
Speaker 1: the ninety two and ninety one. The same week that

123
00:06:23,800 --> 00:06:28,480
Speaker 1: he did both bankruptcy filings, he established four new LLCs

124
00:06:28,520 --> 00:06:31,880
Speaker 1: and leverage the business credit of those LLCs the same

125
00:06:31,920 --> 00:06:35,440
Speaker 1: week heep filed from bankruptcy. Right. So the point that

126
00:06:35,480 --> 00:06:37,480
Speaker 1: I'm trying to make with that is that a lot

127
00:06:37,520 --> 00:06:40,520
Speaker 1: of people don't really understand the power of the LLC.

128
00:06:40,800 --> 00:06:43,479
Speaker 1: And when you understand the power of the LLC, that

129
00:06:43,680 --> 00:06:46,919
Speaker 1: as a separate legal entity, you're able to leverage the

130
00:06:47,000 --> 00:06:50,359
Speaker 1: business credit of that LLC. So what we do is

131
00:06:50,360 --> 00:06:53,680
Speaker 1: we help people to set up LLCs and do just

132
00:06:53,800 --> 00:06:57,359
Speaker 1: that leverage their business credit. So for every LLC that

133
00:06:57,440 --> 00:06:59,920
Speaker 1: you have, we basically help you get at least five

134
00:07:00,200 --> 00:07:03,520
Speaker 1: thousand dollars of business credit that is not attached to

135
00:07:03,640 --> 00:07:08,440
Speaker 1: your personal credit profile. Because most entrepreneurs the first thing

136
00:07:08,440 --> 00:07:10,760
Speaker 1: they do is they leverage their personal credit. And we

137
00:07:10,840 --> 00:07:14,000
Speaker 1: know that nine of businesses fail and that leads you

138
00:07:14,280 --> 00:07:17,480
Speaker 1: in a worst state than before. So going back to

139
00:07:17,520 --> 00:07:20,480
Speaker 1: the analogy, we just follow the same thing, the same

140
00:07:20,520 --> 00:07:23,120
Speaker 1: path that Donald Trump has done. You know, we can

141
00:07:23,200 --> 00:07:26,560
Speaker 1: also emulate a lot of those business practices, and I

142
00:07:26,600 --> 00:07:30,360
Speaker 1: think that's gonna encourage more creators to really walk to

143
00:07:30,560 --> 00:07:34,760
Speaker 1: entrepreneurship path, to take more risk start businesses, at least

144
00:07:35,080 --> 00:07:38,960
Speaker 1: use the fifty dollars to prove the concept of the business. Right,

145
00:07:39,400 --> 00:07:43,200
Speaker 1: that's really the key. Yeah, it's so interesting you say

146
00:07:43,240 --> 00:07:45,720
Speaker 1: that because you know, for whatever you think about like

147
00:07:45,800 --> 00:07:48,240
Speaker 1: Donald Trump and how he was as president, like he

148
00:07:48,440 --> 00:07:52,880
Speaker 1: used the system that the United States has to his advantage.

149
00:07:52,920 --> 00:07:54,720
Speaker 1: You know, whether that be you know, you think you're

150
00:07:54,720 --> 00:07:58,160
Speaker 1: talking about companies like Amazon and Apple and others who

151
00:07:58,960 --> 00:08:01,120
Speaker 1: you hear these stories about how they pay little to

152
00:08:01,160 --> 00:08:04,560
Speaker 1: know taxes and you know, whatever Donald Trump did and

153
00:08:04,600 --> 00:08:07,040
Speaker 1: whatever he paid or didn't pay in taxes and then

154
00:08:07,160 --> 00:08:11,280
Speaker 1: using the advantages of ll c s or whatever. Um,

155
00:08:11,320 --> 00:08:13,920
Speaker 1: you know, he used the system that we have in

156
00:08:13,960 --> 00:08:16,680
Speaker 1: the United States to his benefit. And you know, our

157
00:08:16,720 --> 00:08:18,440
Speaker 1: thing is like we wanted to make sure that people

158
00:08:18,440 --> 00:08:22,120
Speaker 1: are knowledgeable to use the system to to their benefit

159
00:08:22,160 --> 00:08:27,280
Speaker 1: because our country is set up for business. And so

160
00:08:27,600 --> 00:08:30,640
Speaker 1: what do you say to that? You know, when you're

161
00:08:30,640 --> 00:08:33,520
Speaker 1: when you're trying to get people to reframe in their mind, um,

162
00:08:33,600 --> 00:08:39,920
Speaker 1: what they think about income and taxes and investments. No, absolutely, um.

163
00:08:39,920 --> 00:08:42,160
Speaker 1: And one of the things almost with c p A,

164
00:08:42,559 --> 00:08:44,680
Speaker 1: but one of the things that I've tried to build

165
00:08:44,760 --> 00:08:48,000
Speaker 1: into our system is how do we really put ourselves

166
00:08:48,080 --> 00:08:52,600
Speaker 1: to follow the best possible tax strategy? So, um, if

167
00:08:52,600 --> 00:08:55,800
Speaker 1: you're not if you're not either a landowner which is

168
00:08:56,000 --> 00:08:59,360
Speaker 1: richest real estate, or an entrepreneur. The system is not

169
00:08:59,440 --> 00:09:02,560
Speaker 1: set up for you, right. The system is really set

170
00:09:02,640 --> 00:09:05,520
Speaker 1: up to benefit those that own business owners. So you

171
00:09:05,640 --> 00:09:09,400
Speaker 1: think about small business and big business. Amazon can make

172
00:09:09,440 --> 00:09:12,920
Speaker 1: a billion dollars and pay note net taxes. Right. It's

173
00:09:12,960 --> 00:09:15,760
Speaker 1: because the system, the i r S, the i r

174
00:09:15,880 --> 00:09:20,439
Speaker 1: S code gives tremendous benefits for entrepreneurs and creators. Right.

175
00:09:20,679 --> 00:09:23,640
Speaker 1: And also people that own real estate, they're the ones

176
00:09:23,880 --> 00:09:27,439
Speaker 1: that really are can structure their path so that they

177
00:09:27,480 --> 00:09:31,760
Speaker 1: have the minimal tax hit as possible. Right. So I'm

178
00:09:31,800 --> 00:09:34,640
Speaker 1: in real estate myself. I'm a real estate developer. I

179
00:09:34,679 --> 00:09:38,480
Speaker 1: own over five hundred units. I've reached a position that's

180
00:09:38,520 --> 00:09:42,439
Speaker 1: called well, it's a classification, it's called real estate professional.

181
00:09:42,880 --> 00:09:46,160
Speaker 1: Once you get to that level, a hundred percent of

182
00:09:46,200 --> 00:09:50,079
Speaker 1: your expenses can be written off. Right. And and most people,

183
00:09:50,240 --> 00:09:54,640
Speaker 1: to me, that's the nirvana of of tax strategy, because

184
00:09:54,840 --> 00:09:57,800
Speaker 1: whatever I do, it's you know what, my whole lifestyle

185
00:09:57,840 --> 00:10:01,959
Speaker 1: is structured around tax seables and whatever whatever expenses I

186
00:10:02,360 --> 00:10:05,959
Speaker 1: get this offset against earned income, the rental income that

187
00:10:06,040 --> 00:10:08,880
Speaker 1: comes in through my units. As a landlord. You know,

188
00:10:09,000 --> 00:10:12,199
Speaker 1: I don't necessarily get taxed the same way that someone

189
00:10:12,280 --> 00:10:15,560
Speaker 1: with W two income is taxed. So yeah, we gotta

190
00:10:15,640 --> 00:10:21,200
Speaker 1: go in here because when I learned that employees pay

191
00:10:21,280 --> 00:10:26,080
Speaker 1: taxes first and business owners pay taxes on what's left over, Like,

192
00:10:26,160 --> 00:10:30,000
Speaker 1: the whole game changed for me because you know, like, yes,

193
00:10:30,080 --> 00:10:32,880
Speaker 1: it's when you're an employee and you work for somebody

194
00:10:32,920 --> 00:10:35,120
Speaker 1: and you get that check on Friday. Yes, it's a

195
00:10:35,160 --> 00:10:39,360
Speaker 1: great day on Friday. But the government Uncle Sam already

196
00:10:39,360 --> 00:10:42,320
Speaker 1: then took his out. You know, when I get paid

197
00:10:42,679 --> 00:10:45,440
Speaker 1: or when you get paid a Donnie Hugh like you

198
00:10:45,520 --> 00:10:48,200
Speaker 1: get you get the whole check, and then you gotta

199
00:10:48,320 --> 00:10:51,120
Speaker 1: figure out, Okay, what am I gonna spend this on

200
00:10:51,720 --> 00:10:54,440
Speaker 1: so that at the end of it I get the

201
00:10:54,520 --> 00:10:57,360
Speaker 1: full benefit of it and I don't. Then I'm gonna

202
00:10:57,400 --> 00:11:02,440
Speaker 1: pay Uncle Sam on whatever have left over after I've

203
00:11:02,480 --> 00:11:05,640
Speaker 1: squeezed out as much as I legally care. Well, you

204
00:11:05,640 --> 00:11:08,400
Speaker 1: you hit the nail right on that head with everything

205
00:11:08,440 --> 00:11:10,880
Speaker 1: you just said, So I know, I know for uh,

206
00:11:11,040 --> 00:11:13,160
Speaker 1: for example, you know you and one of the things

207
00:11:13,160 --> 00:11:16,280
Speaker 1: that we do it in money apps give people the paradigm, right,

208
00:11:16,440 --> 00:11:17,880
Speaker 1: but you you hit the nail on the head. So

209
00:11:17,960 --> 00:11:21,200
Speaker 1: let me address for those individuals that are listening out there,

210
00:11:21,240 --> 00:11:24,800
Speaker 1: how to really structure your business so that you have

211
00:11:24,960 --> 00:11:29,080
Speaker 1: the minimum tax the minimum tax hit right. So number one,

212
00:11:29,120 --> 00:11:31,440
Speaker 1: you need a bank account. Whenever you get a check.

213
00:11:31,480 --> 00:11:35,240
Speaker 1: You should have a business whatever, whatever line of work

214
00:11:35,320 --> 00:11:39,679
Speaker 1: that your in, start up nonstartup, technology, non technology, you

215
00:11:39,679 --> 00:11:42,440
Speaker 1: should have a business account. Right now, money app we

216
00:11:42,440 --> 00:11:45,640
Speaker 1: have free business accounts you can set up it. Really

217
00:11:45,679 --> 00:11:48,280
Speaker 1: we're trying to disrupt the typical banks. You can set

218
00:11:48,360 --> 00:11:52,000
Speaker 1: up a business banking account, but your check should come

219
00:11:52,000 --> 00:11:55,920
Speaker 1: into that account, right, and then from that account you

220
00:11:55,960 --> 00:12:00,240
Speaker 1: should have separately a personal bank account. So you have

221
00:12:00,280 --> 00:12:04,040
Speaker 1: a business account, pay yourself first, personal put that from

222
00:12:04,080 --> 00:12:06,880
Speaker 1: the business. The check comes into the business account. Then

223
00:12:06,920 --> 00:12:10,200
Speaker 1: you pay the personal account. But also you should have

224
00:12:10,320 --> 00:12:13,760
Speaker 1: a business tax account, right. You also should have a

225
00:12:13,840 --> 00:12:18,840
Speaker 1: business operating account. It's important to separate these funnels of

226
00:12:19,040 --> 00:12:21,400
Speaker 1: cash flow number one, so you can make it easier

227
00:12:21,480 --> 00:12:23,800
Speaker 1: for your tax professional to do your taxes at the

228
00:12:23,880 --> 00:12:26,719
Speaker 1: end of the year. But also this is the savings. Right.

229
00:12:26,760 --> 00:12:28,920
Speaker 1: So let's say you get a check for ten thousand

230
00:12:28,960 --> 00:12:33,640
Speaker 1: dollars goes into your business account. Normally putt of that,

231
00:12:33,760 --> 00:12:37,080
Speaker 1: so three thousand goes into your tax account. Let's say

232
00:12:37,080 --> 00:12:39,839
Speaker 1: you want you want to pay yourself, um, you know,

233
00:12:40,000 --> 00:12:44,280
Speaker 1: ten fient whatever you need to live on. Two thousand

234
00:12:44,320 --> 00:12:48,000
Speaker 1: goes into the personal account me personally, every LLC that

235
00:12:48,040 --> 00:12:50,680
Speaker 1: I have. I also have an operating account, right, so

236
00:12:50,760 --> 00:12:53,480
Speaker 1: I can track my my income, my my who am

237
00:12:53,520 --> 00:12:56,120
Speaker 1: I paying? So I'm paying my bills on top my

238
00:12:56,200 --> 00:12:58,840
Speaker 1: operating accounts account that I use day to day, and

239
00:12:58,840 --> 00:13:01,520
Speaker 1: I can follow that leedsure and I can see, well this,

240
00:13:01,800 --> 00:13:03,840
Speaker 1: you know, this is a vendor here. I don't know.

241
00:13:03,880 --> 00:13:06,080
Speaker 1: I didn't pay that vendor. I can track fraud things

242
00:13:06,120 --> 00:13:09,600
Speaker 1: like that, you know. So that's the structure, right. So basically,

243
00:13:09,640 --> 00:13:13,360
Speaker 1: just in any any basic business, that's four accounts that

244
00:13:13,400 --> 00:13:16,400
Speaker 1: I just mentioned, you should have the business account, which

245
00:13:16,440 --> 00:13:19,520
Speaker 1: really shouldn't be forward facing. It should be a business

246
00:13:20,600 --> 00:13:23,319
Speaker 1: that no one can sue. It could be a holding company,

247
00:13:23,679 --> 00:13:26,959
Speaker 1: something that only you would know, and then pass when

248
00:13:26,960 --> 00:13:29,080
Speaker 1: that when that check comes into that, we pass it

249
00:13:29,120 --> 00:13:32,160
Speaker 1: to the personal account. We pay ourselves, right, then we

250
00:13:32,200 --> 00:13:34,560
Speaker 1: pass it to a tax accounts when never and a

251
00:13:34,559 --> 00:13:36,960
Speaker 1: lot of businesses pay on a quarterly basis, but we

252
00:13:37,000 --> 00:13:39,120
Speaker 1: want to make sure that we fund that tax account

253
00:13:39,280 --> 00:13:41,520
Speaker 1: so that we're not scrambling at the end of the

254
00:13:41,600 --> 00:13:43,800
Speaker 1: year to pay a big tax bill. But if you

255
00:13:43,880 --> 00:13:45,719
Speaker 1: do it right, it the way I said it, you're

256
00:13:45,760 --> 00:13:49,480
Speaker 1: operating account. Hand that operating account over to your c

257
00:13:49,720 --> 00:13:52,200
Speaker 1: p A or your tax professional, and they're gonna have

258
00:13:52,280 --> 00:13:55,160
Speaker 1: an itemized list what you spend on and what can

259
00:13:55,160 --> 00:13:58,920
Speaker 1: be deducted from the tax liability that you created each quarter.

260
00:13:59,200 --> 00:14:01,800
Speaker 1: So if I didn't get to a depth, but that's

261
00:14:01,880 --> 00:14:04,640
Speaker 1: that's the that's the that's the formula, you know. So

262
00:14:04,760 --> 00:14:08,000
Speaker 1: there's so much here, so many different lanes we can

263
00:14:08,040 --> 00:14:10,120
Speaker 1: go in. And I understand this is a podcast and

264
00:14:10,160 --> 00:14:12,680
Speaker 1: not everything. We won't be able to go like super

265
00:14:12,760 --> 00:14:15,840
Speaker 1: duper deep on every topic. So's it's so important that

266
00:14:16,040 --> 00:14:19,560
Speaker 1: you know our audience UM is number one subscribe to

267
00:14:19,600 --> 00:14:22,880
Speaker 1: the podcast, but number one following you so that they

268
00:14:22,880 --> 00:14:25,360
Speaker 1: can go deeper on the topics that you're talking about.

269
00:14:25,400 --> 00:14:27,600
Speaker 1: And so I will switch scares it a little bit

270
00:14:27,640 --> 00:14:31,560
Speaker 1: because I'm interested in your conversation on you know, when

271
00:14:31,560 --> 00:14:34,440
Speaker 1: I learned this principle, UM, it was later than I

272
00:14:34,520 --> 00:14:36,760
Speaker 1: wish I would have learned it, but I did learn it,

273
00:14:36,800 --> 00:14:38,600
Speaker 1: and some people still haven't learned it. So you're gonna

274
00:14:38,640 --> 00:14:43,320
Speaker 1: learn it. Today, um this concept about reinvesting the profits,

275
00:14:43,360 --> 00:14:47,120
Speaker 1: because you know what happens too often in our businesses

276
00:14:47,880 --> 00:14:49,880
Speaker 1: is we will start a business. We will start a

277
00:14:49,920 --> 00:14:54,360
Speaker 1: company and start you know, making some money, make some check,

278
00:14:54,440 --> 00:14:56,280
Speaker 1: whether we're working a day job. And then when now

279
00:14:56,280 --> 00:14:58,520
Speaker 1: we got this side hustle, we make money on that

280
00:14:58,600 --> 00:15:01,560
Speaker 1: side household, make money on at you know, ten PM

281
00:15:01,680 --> 00:15:05,120
Speaker 1: two a m business. And then we get that check

282
00:15:05,160 --> 00:15:08,480
Speaker 1: and now we go spend it because we got money

283
00:15:08,480 --> 00:15:10,800
Speaker 1: that we didn't have before. So now all of a

284
00:15:10,880 --> 00:15:13,640
Speaker 1: sudden were buying advertisers. We didn't use to buy appetizers.

285
00:15:13,840 --> 00:15:16,080
Speaker 1: You know, we went out to eat. All of a

286
00:15:16,120 --> 00:15:18,040
Speaker 1: sudden you put in cheese on it. And so I

287
00:15:18,120 --> 00:15:22,960
Speaker 1: wonder what is your take on this? This way of thinking,

288
00:15:23,440 --> 00:15:26,240
Speaker 1: like every dollar you can afford to put back in

289
00:15:26,320 --> 00:15:30,640
Speaker 1: the business helps you to grow the business and instead

290
00:15:31,720 --> 00:15:34,800
Speaker 1: make sure that you are not um taking the money

291
00:15:34,840 --> 00:15:37,200
Speaker 1: out when you should be. If you if you bought

292
00:15:37,200 --> 00:15:39,600
Speaker 1: it for five dollars and you sold it for ten,

293
00:15:40,240 --> 00:15:43,360
Speaker 1: put the five that you originally put in, put it

294
00:15:43,400 --> 00:15:46,640
Speaker 1: back in, and then put the extra five that you earned,

295
00:15:46,880 --> 00:15:49,840
Speaker 1: and now you've got ten dollars invested instead of five

296
00:15:49,840 --> 00:15:52,760
Speaker 1: dollars invested and you can continue to grow and scale

297
00:15:52,800 --> 00:15:56,720
Speaker 1: your business that way. That's super important really, and just

298
00:15:56,760 --> 00:16:00,960
Speaker 1: as founders or entrepreneurs, we have to take the position

299
00:16:01,360 --> 00:16:04,360
Speaker 1: that you know, every dollar that you pull out of

300
00:16:04,400 --> 00:16:07,600
Speaker 1: your business, you're actually hurting your business. So you want

301
00:16:07,640 --> 00:16:10,480
Speaker 1: more and more dollars to be in your business so

302
00:16:10,560 --> 00:16:14,200
Speaker 1: that you could multiply them as fast as possible. Right,

303
00:16:14,240 --> 00:16:16,000
Speaker 1: you want to get the maximum amount of r o

304
00:16:16,200 --> 00:16:21,080
Speaker 1: Y business or entrepreneurship. It's better than and wealthy know this.

305
00:16:21,600 --> 00:16:23,640
Speaker 1: They would rather not have money just sitting in the

306
00:16:23,680 --> 00:16:26,400
Speaker 1: bank account. You want that money to be working for

307
00:16:26,480 --> 00:16:28,200
Speaker 1: you and when you pull it out, like if you

308
00:16:28,280 --> 00:16:31,160
Speaker 1: have a business describing that means you're probably getting a

309
00:16:31,200 --> 00:16:33,360
Speaker 1: great r o Y on your money, better than you

310
00:16:33,360 --> 00:16:35,520
Speaker 1: can get in the stock market, better than you can

311
00:16:35,560 --> 00:16:40,440
Speaker 1: get by by investing in even you know, uh, aftermarket stocks.

312
00:16:40,760 --> 00:16:45,720
Speaker 1: It's just a tremendous Entrepreneurship is the number one return,

313
00:16:45,800 --> 00:16:47,920
Speaker 1: the number one r o Y that you're gonna get

314
00:16:47,960 --> 00:16:51,120
Speaker 1: on your investment. You do not want to put pull

315
00:16:51,160 --> 00:16:53,800
Speaker 1: money out of that. So that's what I tell my clients,

316
00:16:53,800 --> 00:16:56,160
Speaker 1: and and and really at money you have, we want

317
00:16:56,200 --> 00:17:00,480
Speaker 1: to help more creators understand that metric. That's one of

318
00:17:00,520 --> 00:17:02,880
Speaker 1: the key metrics that are out there. So what we

319
00:17:02,960 --> 00:17:06,480
Speaker 1: do is, let's say, after you've proven the concept of

320
00:17:06,520 --> 00:17:08,919
Speaker 1: your business, one of the key things that you have

321
00:17:09,000 --> 00:17:12,679
Speaker 1: to do is scale and you need capital to scale.

322
00:17:13,080 --> 00:17:16,320
Speaker 1: But the best thing to do is have capital that

323
00:17:16,480 --> 00:17:20,200
Speaker 1: is generated from your business. But most businesses that are

324
00:17:20,600 --> 00:17:23,280
Speaker 1: that have the ability to have high growth, they need

325
00:17:23,400 --> 00:17:26,639
Speaker 1: external investment. They need people from the outside to invest

326
00:17:26,720 --> 00:17:29,800
Speaker 1: in them. That's that's one thing that we do that

327
00:17:29,840 --> 00:17:33,520
Speaker 1: other financial institutions don't do. Businesses that are high growth,

328
00:17:33,760 --> 00:17:37,880
Speaker 1: we get funding for you in terms of VC funding

329
00:17:38,160 --> 00:17:40,360
Speaker 1: where we have the Angel Syndicate in which we will

330
00:17:40,480 --> 00:17:44,159
Speaker 1: invest below two hundred and fifty thousand and businesses that

331
00:17:44,200 --> 00:17:46,840
Speaker 1: can scale, But it's the same process. You would much

332
00:17:47,000 --> 00:17:50,879
Speaker 1: rather um get the money that you need to scale

333
00:17:50,960 --> 00:17:55,240
Speaker 1: and grow from the business itself. But most businesses, definitely

334
00:17:55,320 --> 00:17:58,960
Speaker 1: the scale on a large level, need that external investment

335
00:17:59,119 --> 00:18:01,359
Speaker 1: and we want to show people how to how to

336
00:18:01,400 --> 00:18:04,720
Speaker 1: do it the best way possible. So what you just

337
00:18:04,760 --> 00:18:08,080
Speaker 1: said was so important, And and here's what I hear.

338
00:18:08,119 --> 00:18:09,680
Speaker 1: And when you when you talk about you know, having

339
00:18:09,760 --> 00:18:12,919
Speaker 1: money sitting what I hear is what I hear is

340
00:18:14,240 --> 00:18:17,520
Speaker 1: there is a such thing as having too much cash

341
00:18:17,560 --> 00:18:19,880
Speaker 1: in the pain. There's the such thing as being too liquid.

342
00:18:20,480 --> 00:18:23,320
Speaker 1: And when you think about um, because I mean all

343
00:18:23,320 --> 00:18:25,520
Speaker 1: of us, you know, any of us would love to

344
00:18:25,720 --> 00:18:28,359
Speaker 1: you know, see that statement. A lot of zeros, a

345
00:18:28,359 --> 00:18:31,960
Speaker 1: lot of money sitting over there. And but that money

346
00:18:32,160 --> 00:18:36,280
Speaker 1: is slowly dying number one. But it's stagnant at best.

347
00:18:36,359 --> 00:18:39,160
Speaker 1: But it's slowly dying because of inflation and things like that.

348
00:18:39,560 --> 00:18:43,000
Speaker 1: UM in in the reality of things, and so there

349
00:18:43,119 --> 00:18:45,360
Speaker 1: is a such thing with as much as you love

350
00:18:45,440 --> 00:18:48,120
Speaker 1: to see a lot of money sitting in your bank account,

351
00:18:48,520 --> 00:18:51,320
Speaker 1: there is a such thing as having too much cash

352
00:18:51,359 --> 00:18:54,320
Speaker 1: in the bank. So what do we do when we

353
00:18:54,440 --> 00:18:59,200
Speaker 1: have um? Well, actually, at what point should we think, Hey,

354
00:18:59,240 --> 00:19:00,800
Speaker 1: I got too much on you over here, I need

355
00:19:00,840 --> 00:19:03,280
Speaker 1: to do something with it. And then what should I

356
00:19:03,359 --> 00:19:06,920
Speaker 1: do with it to make sure it's working for me? Really,

357
00:19:06,960 --> 00:19:11,200
Speaker 1: when you have cash sitting in an account that you

358
00:19:11,240 --> 00:19:15,520
Speaker 1: can find a better use for it, that is safe. Right,

359
00:19:15,560 --> 00:19:19,480
Speaker 1: So in my particular business, that operating account on a

360
00:19:19,560 --> 00:19:22,719
Speaker 1: monthly basis, UM, and one of my projects, I may

361
00:19:22,840 --> 00:19:27,440
Speaker 1: have a need for dollars. If let's say I'm I'm

362
00:19:27,480 --> 00:19:30,000
Speaker 1: something great, I sold the asset. I have a big

363
00:19:30,080 --> 00:19:32,440
Speaker 1: check coming in. I don't need a hundred two hundred

364
00:19:32,520 --> 00:19:35,520
Speaker 1: three hundred thousand sitting in an account, right, That's just

365
00:19:35,720 --> 00:19:39,120
Speaker 1: too much. That's that's being too liquid, right, unless I'm

366
00:19:39,400 --> 00:19:43,000
Speaker 1: saving up for another move or another acquisition. But you

367
00:19:43,040 --> 00:19:45,080
Speaker 1: want to you want to have enough cash that you

368
00:19:45,119 --> 00:19:48,840
Speaker 1: can at least be operational for two to three months

369
00:19:49,080 --> 00:19:51,280
Speaker 1: and then beyond all that. I think that you're at

370
00:19:51,400 --> 00:19:55,240
Speaker 1: this threshold where you're not optimizing your cash value. So

371
00:19:55,359 --> 00:19:58,480
Speaker 1: what I tell people to do, Number one is um

372
00:19:58,600 --> 00:20:02,360
Speaker 1: once you understand the highest and best use of your

373
00:20:02,480 --> 00:20:05,119
Speaker 1: r o Y, right, whether it's in your business or

374
00:20:05,160 --> 00:20:08,119
Speaker 1: whether it's investing in other businesses. We have. We have

375
00:20:08,600 --> 00:20:10,119
Speaker 1: r o Y and our business, but one of the

376
00:20:10,119 --> 00:20:12,119
Speaker 1: great things that we like to do is invest in

377
00:20:12,240 --> 00:20:16,600
Speaker 1: other business EXX capitals. We like to see those the

378
00:20:17,200 --> 00:20:19,720
Speaker 1: new up and coming businesses that are on the horizon.

379
00:20:19,920 --> 00:20:23,080
Speaker 1: How can we put a hundred thousand uh in in

380
00:20:23,080 --> 00:20:25,760
Speaker 1: in their system to give them a greater r r

381
00:20:25,800 --> 00:20:28,360
Speaker 1: o I which is gonna allow us to grow even more. Right,

382
00:20:28,680 --> 00:20:32,200
Speaker 1: So it's really looking for those opportunities where you can

383
00:20:32,240 --> 00:20:35,439
Speaker 1: get excess cash and put that cash to work. The

384
00:20:35,520 --> 00:20:39,040
Speaker 1: wealthy do not have a whole bunch of cash sitting

385
00:20:39,080 --> 00:20:41,840
Speaker 1: in a bank account, So we definitely don't want to

386
00:20:41,880 --> 00:20:45,479
Speaker 1: do that. The reason why is very simple. When you

387
00:20:45,600 --> 00:20:48,439
Speaker 1: have money sitting in a bank account, especially now that

388
00:20:48,480 --> 00:20:51,399
Speaker 1: we just had a two trillion dollar stimulus that the

389
00:20:51,440 --> 00:20:54,199
Speaker 1: stimmies that went out. Everyone's talking about the stimmies, but

390
00:20:54,720 --> 00:20:58,240
Speaker 1: you know, the deflation, every effect of that is significant.

391
00:20:58,600 --> 00:21:01,720
Speaker 1: So just having money sitting in an account, you're gonna

392
00:21:01,760 --> 00:21:03,639
Speaker 1: be able to buy less and less for your dollar.

393
00:21:03,800 --> 00:21:07,040
Speaker 1: And this is what's gonna happen going into the future. Um,

394
00:21:07,080 --> 00:21:08,840
Speaker 1: we know that taxes are going to go up, the

395
00:21:08,880 --> 00:21:11,560
Speaker 1: cost of living is going up in most cities in

396
00:21:11,600 --> 00:21:14,639
Speaker 1: the US. So it's just something to be super cognizant of,

397
00:21:15,080 --> 00:21:19,800
Speaker 1: if you know, if you if you're financially literate. So

398
00:21:19,840 --> 00:21:21,639
Speaker 1: I want to translate what I hear you say, and

399
00:21:21,680 --> 00:21:23,800
Speaker 1: you can correct me if I've gotten any of this wrong.

400
00:21:23,840 --> 00:21:26,679
Speaker 1: But I want to be sure that we understand what

401
00:21:26,840 --> 00:21:29,760
Speaker 1: you're advising here. So you're saying, you know, if I

402
00:21:29,840 --> 00:21:33,560
Speaker 1: have you know, two to three months UM worth of

403
00:21:33,720 --> 00:21:35,879
Speaker 1: runway sitting in the bank account, that way I can

404
00:21:35,920 --> 00:21:41,040
Speaker 1: cover any you know, household operational expenses or business expenses

405
00:21:41,520 --> 00:21:44,720
Speaker 1: to just make sure my life is good, you know,

406
00:21:44,840 --> 00:21:47,800
Speaker 1: two to three months out at all times. UM, then

407
00:21:48,080 --> 00:21:52,000
Speaker 1: that's enough money, you know, in the general sense to

408
00:21:52,440 --> 00:21:55,240
Speaker 1: UM just have sitting in the bank account. But far

409
00:21:55,320 --> 00:21:59,280
Speaker 1: above that, I should probably be thinking about safe ways

410
00:21:59,359 --> 00:22:02,760
Speaker 1: to put that money to work so that UM is

411
00:22:02,800 --> 00:22:06,880
Speaker 1: not again, you know, slowly dying in a bank account,

412
00:22:07,440 --> 00:22:10,840
Speaker 1: or you know, at best just being stagnant and not

413
00:22:11,040 --> 00:22:14,640
Speaker 1: you know, generating any real returns. Absolutely well, you hit

414
00:22:14,640 --> 00:22:16,280
Speaker 1: the nail on the head one of the things. And

415
00:22:16,520 --> 00:22:18,800
Speaker 1: I'll tell you what we're really big into right now

416
00:22:18,960 --> 00:22:21,840
Speaker 1: is the defile space that we're working on a number

417
00:22:21,880 --> 00:22:25,720
Speaker 1: of different protocols that's going to allow people to get

418
00:22:25,760 --> 00:22:28,879
Speaker 1: an incredible return compared to the bank. Right we know

419
00:22:28,920 --> 00:22:32,000
Speaker 1: that the bank doesn't pay a great amount of interests UM.

420
00:22:32,040 --> 00:22:34,600
Speaker 1: If you get one percent, you're super lucky. But we're

421
00:22:34,640 --> 00:22:38,600
Speaker 1: looking through defile. We're UM and developing smart chaing UM,

422
00:22:38,680 --> 00:22:42,000
Speaker 1: developing smart contracts on the blockchain. We're gonna be able

423
00:22:42,000 --> 00:22:45,360
Speaker 1: to get people a higher rate of return for their interests.

424
00:22:45,400 --> 00:22:48,120
Speaker 1: For those people that are closer to retirement that don't

425
00:22:48,119 --> 00:22:50,440
Speaker 1: want to take as much risk, we have a low

426
00:22:50,560 --> 00:22:54,440
Speaker 1: risk uh vehicle that's coming up and you know, we'll

427
00:22:54,440 --> 00:22:56,399
Speaker 1: stay tuned for that too. But I'm excited about it.

428
00:22:56,440 --> 00:22:59,359
Speaker 1: But that's exactly when you have excess cash you can do.

429
00:22:59,520 --> 00:23:02,320
Speaker 1: You need to think of things like that and and

430
00:23:02,520 --> 00:23:05,679
Speaker 1: that's being an innovator. That's what we're looking to do,

431
00:23:05,840 --> 00:23:09,000
Speaker 1: is is innovator. So this is a live conversation. We're

432
00:23:09,000 --> 00:23:11,680
Speaker 1: having a lunch table shout to everybody watching on lunch

433
00:23:11,800 --> 00:23:14,879
Speaker 1: table in or Facebook Live. And we do have a conversation.

434
00:23:15,119 --> 00:23:18,359
Speaker 1: A question I'm sorry that came in on Facebook and

435
00:23:18,400 --> 00:23:23,000
Speaker 1: it asks what industries are most primed to take advantage

436
00:23:23,040 --> 00:23:25,919
Speaker 1: of for new enterprise. If I wanted to start a

437
00:23:26,000 --> 00:23:28,280
Speaker 1: business and I don't know where I should be looking

438
00:23:28,320 --> 00:23:31,040
Speaker 1: for a lot of fresh opportunity, where should I be

439
00:23:31,119 --> 00:23:35,080
Speaker 1: looking any business? First of all, if you have a

440
00:23:35,160 --> 00:23:38,000
Speaker 1: business and you do not have the technology business. One

441
00:23:38,000 --> 00:23:40,080
Speaker 1: of the things about Afro Texts is that you know,

442
00:23:40,119 --> 00:23:43,000
Speaker 1: our community, we're so creative, right. So one of the

443
00:23:43,000 --> 00:23:46,960
Speaker 1: things that I love doing is talking to entrepreneurs and

444
00:23:46,960 --> 00:23:50,200
Speaker 1: and just telling them, you know, they're getting them to

445
00:23:50,280 --> 00:23:53,960
Speaker 1: think global instead of thinking locally. Like you may have

446
00:23:54,040 --> 00:23:56,800
Speaker 1: a regional business, but in this day and age. If

447
00:23:56,840 --> 00:24:00,199
Speaker 1: you do not have a technology business, a busines is

448
00:24:00,240 --> 00:24:03,399
Speaker 1: that scalable a business that you can create a business

449
00:24:03,480 --> 00:24:06,679
Speaker 1: model in one city, let's say New York, and scale

450
00:24:06,720 --> 00:24:09,360
Speaker 1: that out to the rest of the country or possibly

451
00:24:09,400 --> 00:24:12,800
Speaker 1: the globe. You're in a business that's gonna lose eventually

452
00:24:12,840 --> 00:24:16,600
Speaker 1: because um, the way that we're positioning. If you if

453
00:24:16,640 --> 00:24:19,880
Speaker 1: you don't have that component, you don't have that technology component,

454
00:24:20,200 --> 00:24:23,040
Speaker 1: you're gonna it's gonna be big fish eat little fish.

455
00:24:23,160 --> 00:24:25,679
Speaker 1: And what's going on right now in this country is

456
00:24:25,720 --> 00:24:29,879
Speaker 1: there we're experiencing one of the greatest procedures or processes

457
00:24:29,920 --> 00:24:34,159
Speaker 1: of wealth creation. What's happening in Silicon Valley is you know,

458
00:24:34,240 --> 00:24:37,760
Speaker 1: do you have people that are coming from the ideation

459
00:24:37,840 --> 00:24:41,160
Speaker 1: stage just that just having an idea and in three,

460
00:24:41,480 --> 00:24:45,080
Speaker 1: four or five years they're becoming billionaires, right And it's

461
00:24:45,160 --> 00:24:49,080
Speaker 1: just that many of them have executable ideas. For many

462
00:24:49,160 --> 00:24:53,040
Speaker 1: of them, depending on the circles, just ideas are getting

463
00:24:53,080 --> 00:24:57,080
Speaker 1: funded and that's creating these huge valuations. And we need

464
00:24:57,080 --> 00:24:59,760
Speaker 1: to the Afro Tech Fair and everyone else and our

465
00:24:59,840 --> 00:25:02,640
Speaker 1: two community, they need to tap into that. And that's

466
00:25:02,680 --> 00:25:05,760
Speaker 1: what we want to do. Provide access to capital, helping

467
00:25:05,800 --> 00:25:08,640
Speaker 1: them get there, bringing them through the different stages. UM.

468
00:25:08,920 --> 00:25:11,640
Speaker 1: You know that that's that's key, that's part of our

469
00:25:11,640 --> 00:25:15,159
Speaker 1: mission and our core values. We got another one in

470
00:25:15,320 --> 00:25:20,159
Speaker 1: from Facebook and it says, what about retirement accounts for

471
00:25:20,640 --> 00:25:24,600
Speaker 1: entrepreneurs or employees with no four oh one K? It

472
00:25:24,640 --> 00:25:27,280
Speaker 1: seems as if you're without a four oh one K,

473
00:25:27,800 --> 00:25:30,880
Speaker 1: you're screwed in terms of the limited amount you can

474
00:25:31,080 --> 00:25:35,639
Speaker 1: fund an i ra A. That is true. So you know,

475
00:25:35,920 --> 00:25:40,040
Speaker 1: many people that are a lot more mature, older sixty

476
00:25:40,119 --> 00:25:42,840
Speaker 1: years old, you know, looking at retirement right now, are

477
00:25:42,920 --> 00:25:47,120
Speaker 1: looking for these vehicles that they can get in and

478
00:25:47,359 --> 00:25:52,120
Speaker 1: get a less risk averse return right something that basically

479
00:25:52,160 --> 00:25:55,080
Speaker 1: allows them to just get income to live off of.

480
00:25:55,560 --> 00:25:57,800
Speaker 1: I love the defied space, and that's what we're gonna

481
00:25:57,840 --> 00:26:00,000
Speaker 1: go in through you. I know you wanted to talk

482
00:26:00,080 --> 00:26:03,760
Speaker 1: about crypto. I just think that the space is changing

483
00:26:04,280 --> 00:26:08,560
Speaker 1: so many different It's going so fast that from the

484
00:26:08,680 --> 00:26:12,000
Speaker 1: first introduction of bitcoin in in two thousand and nine

485
00:26:12,080 --> 00:26:14,359
Speaker 1: to where we are now, we're at a point in

486
00:26:14,400 --> 00:26:18,000
Speaker 1: time where it's mature enough where I think that those

487
00:26:18,080 --> 00:26:21,960
Speaker 1: going into retirement that that can um maybe have a

488
00:26:22,040 --> 00:26:25,480
Speaker 1: small full one K, can sit back and possibly get

489
00:26:25,560 --> 00:26:28,840
Speaker 1: somewhere between ten percent of low risk return, and a

490
00:26:28,840 --> 00:26:30,560
Speaker 1: lot of people can live off that. You know, you

491
00:26:30,640 --> 00:26:33,000
Speaker 1: take your I RA, or you take the house, or

492
00:26:33,080 --> 00:26:36,639
Speaker 1: you take a second home that you probably can't rent

493
00:26:36,640 --> 00:26:40,360
Speaker 1: and get a decent I R O ion and convert

494
00:26:40,440 --> 00:26:43,919
Speaker 1: that into these low risk, high yield investments and you

495
00:26:43,960 --> 00:26:47,080
Speaker 1: can you can walk right into retirement comfortably. So I'm

496
00:26:47,080 --> 00:26:50,439
Speaker 1: excited about that space. It's still early, there's more developments

497
00:26:50,480 --> 00:26:52,480
Speaker 1: coming on, but I guarantee you in the next year

498
00:26:52,600 --> 00:26:56,359
Speaker 1: we're gonna see some incredible products on the marketplace. So

499
00:26:56,720 --> 00:26:58,639
Speaker 1: you mentioned something earlier I wanted to make sure I

500
00:26:58,720 --> 00:27:01,560
Speaker 1: came back to, and that is about crypto, and I

501
00:27:01,640 --> 00:27:03,879
Speaker 1: wanted to make sure we got into this, particularly because

502
00:27:03,920 --> 00:27:06,680
Speaker 1: you're a c p A and you're deep into educating

503
00:27:07,240 --> 00:27:10,800
Speaker 1: our community on you know, opportunities for for wealth generation,

504
00:27:10,840 --> 00:27:12,520
Speaker 1: and so I want to talk about you know, so

505
00:27:12,560 --> 00:27:14,720
Speaker 1: for folks who are listening to this and they are

506
00:27:14,920 --> 00:27:19,200
Speaker 1: new to the conversation of crypto, they may have heard

507
00:27:19,240 --> 00:27:21,560
Speaker 1: about it here a lot about it probably but still

508
00:27:21,600 --> 00:27:26,200
Speaker 1: don't really understand, um what it is, how to get

509
00:27:26,240 --> 00:27:31,399
Speaker 1: involved safely, and um perhaps still have a lot of

510
00:27:31,440 --> 00:27:37,000
Speaker 1: skepticism about crypto, Um, if you could as best you

511
00:27:37,040 --> 00:27:39,960
Speaker 1: can give kind of like a you know, a mini

512
00:27:40,080 --> 00:27:43,840
Speaker 1: one oh one for folks who are layman and they're

513
00:27:43,960 --> 00:27:47,960
Speaker 1: not super sophisticated with regards to cryptocurrency, not just Bitcoin,

514
00:27:48,040 --> 00:27:52,400
Speaker 1: but also like lightcoin, foul coin, um, you know, ethereum,

515
00:27:52,600 --> 00:27:58,239
Speaker 1: things like that. How what should we understand before we

516
00:27:58,280 --> 00:28:01,200
Speaker 1: get in, you know, too deep? What should we understand

517
00:28:01,280 --> 00:28:05,800
Speaker 1: about what cryptocurrency is and what should we just in general,

518
00:28:06,080 --> 00:28:08,439
Speaker 1: whether or not we're going to invest, How should we

519
00:28:08,560 --> 00:28:14,200
Speaker 1: understand what cryptocurrency means to the future of wealth creation

520
00:28:14,920 --> 00:28:23,120
Speaker 1: and transactions? Period? Absolutely so, Um, crypto is just another

521
00:28:23,200 --> 00:28:25,919
Speaker 1: asset class, right, So a lot of people, a lot

522
00:28:25,960 --> 00:28:27,800
Speaker 1: of people hit me, be like, I don't like bitcoin

523
00:28:28,119 --> 00:28:31,359
Speaker 1: the or theorem or you know these other coins because

524
00:28:31,400 --> 00:28:33,440
Speaker 1: I can't spend it. I can't go into a store

525
00:28:33,480 --> 00:28:37,400
Speaker 1: and spending. That's the total wrong way to look at it. Um.

526
00:28:37,480 --> 00:28:39,200
Speaker 1: You need to look at it the same way you

527
00:28:39,200 --> 00:28:41,560
Speaker 1: would look at any other stock. It's just the asset

528
00:28:41,600 --> 00:28:45,240
Speaker 1: class or golds. Um, it's really a hedge against inflation,

529
00:28:45,560 --> 00:28:49,560
Speaker 1: right and uh, it's a it's an asset class that

530
00:28:49,800 --> 00:28:56,600
Speaker 1: is potentially on the precipice of disrupting all all economies

531
00:28:56,680 --> 00:28:59,680
Speaker 1: as we know it, right, So we don't. It's it's

532
00:28:59,840 --> 00:29:04,000
Speaker 1: you know, you can take bitcoin, which is you know,

533
00:29:04,040 --> 00:29:07,760
Speaker 1: I'm not a huge investor in bitcoin. I like uh

534
00:29:07,920 --> 00:29:12,000
Speaker 1: theoryum mainly because there's application to it, right there's it's

535
00:29:12,080 --> 00:29:16,040
Speaker 1: linked to a blockchain that has open source coding and

536
00:29:16,080 --> 00:29:20,000
Speaker 1: allows for a number of derivative products that going into

537
00:29:20,000 --> 00:29:23,200
Speaker 1: this next year, you're gonna see everything about to be tokenized.

538
00:29:23,400 --> 00:29:25,840
Speaker 1: So for the lay person, I think that it's important

539
00:29:25,840 --> 00:29:31,160
Speaker 1: to day if you're not into bitcoin, please don't be

540
00:29:31,320 --> 00:29:35,200
Speaker 1: disillusion and stop there. Dive a little deeper and look

541
00:29:35,240 --> 00:29:38,200
Speaker 1: at some of these other currencies that are out there.

542
00:29:38,200 --> 00:29:40,320
Speaker 1: And I don't know why we call them currencies, they're

543
00:29:40,320 --> 00:29:44,600
Speaker 1: just different asset classes that if you find something that's

544
00:29:44,720 --> 00:29:47,760
Speaker 1: interesting to you, dig a little deeper. There's lots of

545
00:29:47,800 --> 00:29:50,320
Speaker 1: scams out there too, and people create these coins and

546
00:29:50,320 --> 00:29:53,240
Speaker 1: then over and you know, overnight, something that happens um

547
00:29:53,480 --> 00:29:56,320
Speaker 1: and and and you know, we've seen that, so we

548
00:29:56,400 --> 00:29:58,600
Speaker 1: wanna we want to avoid that. But I want people

549
00:29:58,720 --> 00:30:01,560
Speaker 1: to realize that is an other source of wealth creation.

550
00:30:01,680 --> 00:30:04,680
Speaker 1: So do some do some research into it? All right,

551
00:30:04,800 --> 00:30:07,760
Speaker 1: So somebody in the chat I wants you to define

552
00:30:07,880 --> 00:30:10,400
Speaker 1: because you said this word a few times, defy if

553
00:30:10,440 --> 00:30:13,920
Speaker 1: you can define defy for our listening audience. But I'm

554
00:30:13,960 --> 00:30:16,920
Speaker 1: also gonna add some things to that UM, because I

555
00:30:16,960 --> 00:30:19,000
Speaker 1: want to understand and I want to make sure our

556
00:30:19,040 --> 00:30:24,680
Speaker 1: audience understands, like the potential tax implications of UM realizing

557
00:30:24,680 --> 00:30:29,440
Speaker 1: and upside with regards to crypto So if I put in,

558
00:30:29,560 --> 00:30:34,320
Speaker 1: you know, a thousand dollars in bitcoin last year and

559
00:30:34,360 --> 00:30:35,959
Speaker 1: I don't know what is whatever is up to now,

560
00:30:36,040 --> 00:30:40,480
Speaker 1: let's say let's say forty dollars and UM, so I've

561
00:30:40,520 --> 00:30:44,520
Speaker 1: had some gains perhaps, UM, what are the tax and

562
00:30:44,680 --> 00:30:47,280
Speaker 1: what are the tax implications of when I go to

563
00:30:47,960 --> 00:30:53,000
Speaker 1: withdraw that money? What does it mean? Like? How how

564
00:30:53,040 --> 00:30:55,360
Speaker 1: do I know what I'm supposed to pay in taxes?

565
00:30:56,120 --> 00:30:58,320
Speaker 1: Do I have to pay taxes at all? Is this

566
00:30:58,400 --> 00:31:00,120
Speaker 1: something I can just you know, keep it moving, know

567
00:31:00,160 --> 00:31:03,360
Speaker 1: it explain to us the tax implications of realizing and

568
00:31:03,440 --> 00:31:07,160
Speaker 1: upside with regards to cryptocurrency investments. Yep, I do it

569
00:31:07,200 --> 00:31:09,920
Speaker 1: real quick. First of all, we'll start with defied. DeFi

570
00:31:10,040 --> 00:31:13,840
Speaker 1: is just short for decentralized finance. Basically, it's it's a

571
00:31:13,920 --> 00:31:17,640
Speaker 1: system that is gonna revolutionize finance as we know it.

572
00:31:17,920 --> 00:31:21,920
Speaker 1: How you borrow, how you lend um, how you get

573
00:31:21,960 --> 00:31:26,360
Speaker 1: derivative products. All of that is in the ecosystem of defies.

574
00:31:26,440 --> 00:31:30,160
Speaker 1: Basically a way in which you can get a contract

575
00:31:30,200 --> 00:31:33,320
Speaker 1: we call smart contracts with someone that's on the blockchain,

576
00:31:33,360 --> 00:31:36,240
Speaker 1: so that allows you to to The blockchain is just

577
00:31:36,320 --> 00:31:40,160
Speaker 1: a ledger of transaction that's on a bunch of it.

578
00:31:40,160 --> 00:31:42,760
Speaker 1: It's it's decentralized, so it's on a bunch of computers,

579
00:31:42,760 --> 00:31:46,200
Speaker 1: meaning that whatever should something happen to one computer, you're

580
00:31:46,240 --> 00:31:49,200
Speaker 1: able to see this record and everyone is able to

581
00:31:49,280 --> 00:31:52,480
Speaker 1: verify it. So that's that's it in a nutshell. Now,

582
00:31:52,520 --> 00:31:56,719
Speaker 1: as far as the tax implications of investing in cryptocurrencies,

583
00:31:57,080 --> 00:32:00,600
Speaker 1: my strategy is if you have UH, if you hold,

584
00:32:00,640 --> 00:32:03,120
Speaker 1: if you have a holding for greater than one year,

585
00:32:03,520 --> 00:32:06,640
Speaker 1: you get taxed less. You get taxed at a lower

586
00:32:06,720 --> 00:32:09,719
Speaker 1: rate than if you have a lot of people are

587
00:32:09,760 --> 00:32:12,160
Speaker 1: in and out of cryptos right, so if you're in

588
00:32:12,480 --> 00:32:14,320
Speaker 1: for less than a year, you get taxed at your

589
00:32:14,440 --> 00:32:17,040
Speaker 1: normal tax rate, which tends to be a lot higher.

590
00:32:17,240 --> 00:32:19,120
Speaker 1: But if you hold it for greater than a year,

591
00:32:19,320 --> 00:32:23,240
Speaker 1: you're taxed at the capital gains tax rate. Which is

592
00:32:23,240 --> 00:32:26,120
Speaker 1: a lot lower right, and then the new Biden administration,

593
00:32:26,160 --> 00:32:28,080
Speaker 1: he's trying to rage it a little bit. I'm not

594
00:32:28,120 --> 00:32:29,760
Speaker 1: a fan of it. I don't think it's gonna pass

595
00:32:30,240 --> 00:32:33,960
Speaker 1: um Congress. But ultimately I think that um, that's the

596
00:32:34,000 --> 00:32:36,480
Speaker 1: way you want to think about crypto. You want to

597
00:32:36,520 --> 00:32:38,880
Speaker 1: think about it as a long term gain. And then

598
00:32:39,000 --> 00:32:41,840
Speaker 1: going back to what we said before, how you structure

599
00:32:41,880 --> 00:32:46,520
Speaker 1: your accounts. If you purchase crypto under a business and

600
00:32:46,880 --> 00:32:49,040
Speaker 1: you know it's set up the right way, you can

601
00:32:49,120 --> 00:32:52,000
Speaker 1: also the gains can be offset by a lot of

602
00:32:52,000 --> 00:32:54,440
Speaker 1: other things that you're doing right, a lot of operational

603
00:32:54,480 --> 00:32:58,000
Speaker 1: expenses or other losses, because if you're investment, just like

604
00:32:58,040 --> 00:33:00,360
Speaker 1: you're in the stock market, some years you may take

605
00:33:00,360 --> 00:33:03,360
Speaker 1: a loss and you can write that off if if

606
00:33:03,400 --> 00:33:22,040
Speaker 1: you know, if you have that long term perspective. Black

607
00:33:22,080 --> 00:33:23,840
Speaker 1: Tech Green Money is a production to Black of the

608
00:33:23,840 --> 00:33:27,320
Speaker 1: Afro Tech on the Black Effect podcast Network and Ihearted Media.

609
00:33:27,720 --> 00:33:30,840
Speaker 1: Is produced by Morgan Dubon and me Well Lucas, with

610
00:33:30,880 --> 00:33:35,160
Speaker 1: additional production supported by Love Beach and Marissa Lewis. Special

611
00:33:35,200 --> 00:33:37,000
Speaker 1: thank you to Michael Davis since the cars of on

612
00:33:37,160 --> 00:33:39,920
Speaker 1: Yon you know, like the wine. Yes, that's his real name.

613
00:33:41,080 --> 00:33:42,880
Speaker 1: Learn more about my guess and other tech that drop

614
00:33:42,960 --> 00:33:44,960
Speaker 1: is the innovators at afro tech dot com and the

615
00:33:45,080 --> 00:33:47,360
Speaker 1: video version of this episode would drop the Black Tech

616
00:33:47,400 --> 00:33:51,520
Speaker 1: Green Money on YouTube next week, so tap in. Enjoying

617
00:33:51,560 --> 00:33:54,880
Speaker 1: Black Tech Green Money, leave us a firestar rating on iTunes.

618
00:33:56,600 --> 00:34:00,320
Speaker 1: Gonna get your money, Peace and love the