WEBVTT - How the Rich Legally Avoid Paying Taxes (And Build Generational Wealth) 0:00:00.320 --> 0:00:02.240 What if I told you the richest people in the 0:00:02.240 --> 0:00:05.880 world don't just pay less taxes, They pay nothing and 0:00:05.920 --> 0:00:08.440 it's completely legal. Now. I learned this the hard way. 0:00:08.480 --> 0:00:11.119 In my twenties, I sold my first business. I saw 0:00:11.280 --> 0:00:13.720 millions of dollars in my bank account for the first time, 0:00:14.080 --> 0:00:16.880 and I also saw my first million dollar tax bill. 0:00:17.079 --> 0:00:20.080 Let me tell you, nothing wakes you up faster than 0:00:20.079 --> 0:00:23.280 realizing nearly half of your hardener and income is about 0:00:23.280 --> 0:00:26.079 to vanish overnight. That's when I got obsessed. I spent 0:00:26.400 --> 0:00:29.639 years learning the same tax strategies that billionaires used to 0:00:29.760 --> 0:00:33.400 legally pay nothing. I found out it's not about offshore schemes. 0:00:33.560 --> 0:00:36.440 It's a simple strategy and the best part is most 0:00:36.440 --> 0:00:38.920 people can do it. But here's the catch. They don't 0:00:39.040 --> 0:00:42.000 teach this in school, and your CPA they don't know 0:00:42.040 --> 0:00:45.240 it either. This isn't about just filing taxes. It's about 0:00:45.240 --> 0:00:48.480 building a system and playing the same game the one 0:00:48.520 --> 0:00:50.959 percent have mastered. So in this video, I'm gonna show 0:00:50.960 --> 0:00:53.080 you exactly how it works. I'm gonna show you how 0:00:53.080 --> 0:00:55.800 you can live tax free, how you can build well faster, 0:00:55.880 --> 0:00:58.800 how you can create a legacy for generations, stay until 0:00:58.800 --> 0:01:01.639 the end because this could change change everything about how 0:01:01.680 --> 0:01:06.160 you think about money forever. So let's go all right, 0:01:06.160 --> 0:01:08.240 now we're talking about some really fun stuff here. Today 0:01:08.240 --> 0:01:11.080 we're talking about wealth killers. Well, actually it's about how 0:01:11.120 --> 0:01:13.640 we multiply our wealth faster than ever. And look, these 0:01:13.680 --> 0:01:17.640 strategies work for anybody. Doesn't matter what city, state, country 0:01:17.680 --> 0:01:20.360 you're in, doesn't matter what tax bracket you're in. This 0:01:20.400 --> 0:01:23.560 is gonna work for you. Okay, So multiplying your wealth. 0:01:23.560 --> 0:01:25.880 That sounds fast, that sounds better. But the first one 0:01:25.920 --> 0:01:27.760 is that we have to stop killing our wealth. And 0:01:27.840 --> 0:01:30.679 of course we do that with taxes. One of the 0:01:30.880 --> 0:01:33.320 two I call it three uncertainties in life. They say 0:01:33.959 --> 0:01:35.720 death and taxes, or the two uncertain deason in life, 0:01:35.760 --> 0:01:38.160 or a certain deason life. I would also call money 0:01:38.160 --> 0:01:41.720 printing as a certainty. Anyway, Taxes is the way we 0:01:41.800 --> 0:01:44.880 lose the most wealth, not just taxes. Also divorce. We 0:01:44.959 --> 0:01:47.039 lose about half that way as well. All right, what 0:01:47.080 --> 0:01:49.360 happens is when we pay taxes, when we give a 0:01:49.360 --> 0:01:52.160 big chunk of our wealth over to your partner, the government, 0:01:52.440 --> 0:01:55.600 it leaves you less money to invest. But most people 0:01:55.640 --> 0:01:58.400 don't really understand exactly what this means. And how much 0:01:58.480 --> 0:02:00.720 this costs you, and a cost you in a bunch 0:02:00.720 --> 0:02:02.840 of ways. Now, first of all, when I give up 0:02:02.880 --> 0:02:05.840 a big chunk of my wealth and then I hopefully 0:02:05.880 --> 0:02:07.600 invest what I have left over. If I have any 0:02:07.640 --> 0:02:10.399 left over, I have less money to invest, which means 0:02:10.480 --> 0:02:12.880 less money to go up. But it's not just less 0:02:12.880 --> 0:02:15.600 money to go out. Remember, building wealth is not linear, 0:02:15.680 --> 0:02:18.880 it's exponential because of compounding. So not only do I 0:02:18.960 --> 0:02:21.080 have less to invest in the beginning because of the 0:02:21.160 --> 0:02:24.600 law of compounding, I lose way more over time. I'm 0:02:24.600 --> 0:02:26.080 going to show you what I mean by that. The 0:02:26.160 --> 0:02:28.720 other thing is that there's a double drag again, so 0:02:28.800 --> 0:02:31.440 it's not just the upfront how much I lose, but 0:02:31.520 --> 0:02:34.519 the compounding. So first of all, let's talk about this, 0:02:34.560 --> 0:02:35.640 and I'm gonna show you a couple of charts so 0:02:35.639 --> 0:02:37.440 you can understand what I mean. And then I'm going 0:02:37.520 --> 0:02:39.239 to show you, no matter where you live in the world, 0:02:39.400 --> 0:02:41.640 how you can fix this problem, how the wealth you do. Okay, 0:02:41.720 --> 0:02:45.480 so first off, in the United States, we pay federal taxes, 0:02:45.480 --> 0:02:47.040 and depending on what state you're in, you pay state 0:02:47.080 --> 0:02:49.600 taxes too. Depend on how much money you make, you 0:02:49.680 --> 0:02:51.880 pay a higher percentage if you make over six hundred 0:02:51.919 --> 0:02:55.519 thousand a year, you're paying thirty seven percent. That's tough. 0:02:56.160 --> 0:02:58.320 If you're making a one hundred dollars over one hundred 0:02:58.320 --> 0:03:01.800 thousand year, twenty five percent. Four percent, okay, So somewhere 0:03:01.800 --> 0:03:04.000 in that range one hundred and ninety to two hundred 0:03:04.040 --> 0:03:05.960 and forty thousand and thirty two percent of your wealth. 0:03:06.080 --> 0:03:08.640 That's just federal. Now, depending on where you live, you 0:03:08.720 --> 0:03:11.720 might also have state taxes as well. So, for example, 0:03:11.760 --> 0:03:14.040 if you're lucky enough to live in the beautiful state 0:03:14.080 --> 0:03:17.639 of California, and you're in the top tax bracket over 0:03:17.680 --> 0:03:20.480 a million dollars, you're paying thirteen and a half percent, 0:03:20.639 --> 0:03:23.320 So you're paying the federal thirty seven percent you're paying 0:03:23.400 --> 0:03:26.680 the state. Now you're over fifty percent. Over fifty percent 0:03:26.720 --> 0:03:29.440 of your wealth is being taken right there, Hawaii, second, 0:03:29.919 --> 0:03:32.160 New York's. New York's right there, ten point nine, New 0:03:32.200 --> 0:03:34.640 Jerseys ten point seven, and on and on and on. 0:03:34.800 --> 0:03:36.720 So if you're in the top tax bracket, over half 0:03:36.760 --> 0:03:40.520 your wealth is being gone before you've paid property taxes 0:03:40.560 --> 0:03:43.200 and sales taxes and payroll taxes, and on and on 0:03:43.280 --> 0:03:45.600 and on. We're just talking about income wealth, But what 0:03:45.680 --> 0:03:49.680 happens is is you lose money exponentially because of the 0:03:49.760 --> 0:03:52.400 tax drag. So, for example, if I made a million 0:03:52.440 --> 0:03:56.560 dollars of profit and I paid if I paid forty 0:03:56.600 --> 0:03:59.360 percent tax versus if I just paid fifteen percent. Now 0:03:59.440 --> 0:04:01.680 let's say that I made a million dollars, I paid 0:04:01.720 --> 0:04:04.000 forty percent tax, so I have six hundred thousand left over, 0:04:04.640 --> 0:04:06.800 or I paid I earned a million dollars, I paid 0:04:06.800 --> 0:04:09.120 fifty percent tax, and then that money just went into 0:04:09.120 --> 0:04:12.400 an account making eight percent interest. What would happen. What 0:04:12.480 --> 0:04:14.400 we can see is if I was taxed at forty percent, 0:04:14.640 --> 0:04:17.960 the portfolio grows to two point two million. But if 0:04:18.000 --> 0:04:21.320 I'm taxed at fifteen percent, the same portfolio, the same 0:04:21.360 --> 0:04:25.680 investment pays five point two million. That's a difference of 0:04:25.839 --> 0:04:30.640 three million dollars or nearly two and a half times greater. 0:04:31.279 --> 0:04:34.799 So just by lowering the tax break bracket, same income, 0:04:35.000 --> 0:04:38.200 same return on investment, it's two and a half times 0:04:38.240 --> 0:04:40.520 greater because not only do I start with less money 0:04:40.760 --> 0:04:44.880 because the law of compounding, it really eats into my growth. 0:04:45.080 --> 0:04:48.960 Now because of this, we see people doing all types 0:04:49.000 --> 0:04:52.599 of drastic things like for example, California lost more workers 0:04:52.600 --> 0:04:56.000 than it gained as professionals flee to low tax states. 0:04:56.160 --> 0:04:58.240 So people are leaving the beach to go live in 0:04:58.240 --> 0:04:59.760 the heat, to go live in the desert, to go 0:04:59.760 --> 0:05:02.040 live in the planes, the bug infested areas, or whatever 0:05:02.480 --> 0:05:05.240 because they're tired of paying too much taxes. But what 0:05:05.279 --> 0:05:07.440 if you didn't have to move? What if you could 0:05:07.440 --> 0:05:10.000 live in the highest tax state, the most beautiful state 0:05:10.000 --> 0:05:13.239 in the country, and not have to pay the taxes legally. 0:05:13.680 --> 0:05:15.720 As a matter of fact, the government love it if 0:05:15.760 --> 0:05:17.720 you did this. So let me show you what I mean. Now, 0:05:17.760 --> 0:05:19.880 the first thing to understand is you have to understand 0:05:19.880 --> 0:05:22.680 that there's different types of income, and there's different types 0:05:22.720 --> 0:05:26.640 of taxes for that income. So earned income, earned income, 0:05:26.800 --> 0:05:30.839 which is wages and salaries, pays way too much taxes. 0:05:31.920 --> 0:05:37.080 The tax code favors investors. So passive income is tax 0:05:37.120 --> 0:05:40.040 differently than earned income. Passive income is income we learn 0:05:40.120 --> 0:05:43.800 earn from investments as opposed to wages and salaries. Now 0:05:43.920 --> 0:05:47.040 why is this the tax code favors investors? These are 0:05:47.040 --> 0:05:50.960 not loopholes of the rich. Okay, the government has policies. 0:05:50.960 --> 0:05:53.880 The government needs people to build businesses and increase the 0:05:53.880 --> 0:05:57.440 GDP and invent new things. And also, yeah, give people jobs, 0:05:57.640 --> 0:06:00.280 and it needs people to provide housing and to build 0:06:00.360 --> 0:06:03.800 roads and do all of these things. The world needs builders. 0:06:03.839 --> 0:06:05.479 That's what I constantly tell people all the time. We 0:06:05.520 --> 0:06:07.760 need entrepreneurs, we need builders, we need investors to build 0:06:07.800 --> 0:06:10.680 the world. We're not meant to be consumers. So if 0:06:10.720 --> 0:06:12.200 all you are going to be a consumer and you're 0:06:12.200 --> 0:06:13.640 going to go work your for nine to five job, 0:06:14.360 --> 0:06:16.719 go home, spend all your paycheck on Netflix and whatever, 0:06:16.960 --> 0:06:18.839 you're a consumer and you're going to pay the most. 0:06:18.880 --> 0:06:21.680 But if you're actively helping to progress the world forward, 0:06:21.680 --> 0:06:24.120 bring value to the world by investing in businesses and 0:06:24.160 --> 0:06:26.200 things like that, you get tax better. So it's an 0:06:26.200 --> 0:06:30.000 incentive program and not a loophole. Okay, that being said, 0:06:30.240 --> 0:06:33.520 how can anybody do this? How can we start to 0:06:33.560 --> 0:06:36.120 make the shift. You're a wage earner, you're on a 0:06:36.200 --> 0:06:39.360 salary a W two. This doesn't qualify this, It doesn't 0:06:39.360 --> 0:06:41.560 apply to you. Yes it does. What happens is we 0:06:41.640 --> 0:06:44.840 can shift over time. The key piece here is this 0:06:44.880 --> 0:06:47.760 isn't something that tomorrow I can pay no tax. And 0:06:47.839 --> 0:06:50.280 so most people don't understand this or they never take 0:06:50.320 --> 0:06:52.320 the time to learn it. It's something that I'm going 0:06:52.360 --> 0:06:55.320 to have to build into my portfolio and depend on 0:06:55.360 --> 0:06:57.560 where you're at, it could take longer or shorter. If 0:06:57.560 --> 0:06:59.280 you're already a business owner and you make a good 0:06:59.320 --> 0:07:01.320 amount of income, you can do this very quickly. If 0:07:01.320 --> 0:07:03.320 you're a W two waydarner, it's going to take you 0:07:03.320 --> 0:07:05.240 a little bit more time. Okay, So we need to 0:07:05.240 --> 0:07:07.039 make a shift. So the first thing is again we 0:07:07.120 --> 0:07:11.440 have to shift into passive income because passive income wins. 0:07:11.680 --> 0:07:13.880 Like I said, with the lower rates. There's a lot 0:07:13.920 --> 0:07:17.680 of reasons why that happens. A small business owner, are 0:07:17.720 --> 0:07:20.520 you buried in all types of work keeping you from 0:07:20.600 --> 0:07:23.120 the real thing that makes you money. Well that's where 0:07:23.280 --> 0:07:25.360 just Works comes in. They're the all in one platform 0:07:25.400 --> 0:07:28.520 that supports small business growth. You can get all their 0:07:28.520 --> 0:07:31.720 tools that help with benefits like payroll and HR and 0:07:31.800 --> 0:07:35.920 compliance with transparent pricing. Now they help you hire top 0:07:35.960 --> 0:07:40.520 talent internationally, internew markets, quickly scale international operations without the 0:07:40.560 --> 0:07:43.720 workload and forevery how do I do it? Question? You 0:07:43.760 --> 0:07:46.640 can reach out to their expert staff from sole proprietor 0:07:47.000 --> 0:07:50.400 or a team of twenty. Just Works empowers all kinds 0:07:50.440 --> 0:07:54.400 of small businesses with real human support. So visit Justworks 0:07:54.440 --> 0:07:57.840 dot com slash podcast to join the thousands of small 0:07:57.840 --> 0:08:02.200 businesses that trust Just Works to take care of payroll, benefits, compliance, 0:08:02.320 --> 0:08:06.560 and more. Again, that's Just Works dot Com slash podcasts. 0:08:07.920 --> 0:08:11.440 Because of the earned income versus passive income, you can 0:08:11.480 --> 0:08:14.000 see the difference in the growth that we can make. 0:08:14.160 --> 0:08:16.560 So there's a lot of reasons doing the same work, 0:08:17.120 --> 0:08:19.960 earning the same income, earn the same rate of return. 0:08:20.480 --> 0:08:23.920 The outcomes of your retirement are drastically different, or I 0:08:23.960 --> 0:08:27.120 should say even the rate that you'll reach your retirement. Now, 0:08:27.160 --> 0:08:29.160 what we want to do is we want to shift 0:08:29.160 --> 0:08:32.000 some of our earned income into passive incomes. So for example, 0:08:32.520 --> 0:08:35.960 I take my wage income and I buy investments. Take 0:08:36.000 --> 0:08:38.640 real estate. For example, I like real estate because real 0:08:38.760 --> 0:08:41.199 estate gets us lots of tax advantages. Now there's a 0:08:41.200 --> 0:08:44.000 whole letter strategy of how we stack different investments in 0:08:44.120 --> 0:08:47.400 proper sequence. It's called the Velocity of Wealth. You might 0:08:47.440 --> 0:08:49.120 want to watch that video. I'll link to it down 0:08:49.160 --> 0:08:51.520 below so you can learn the next part. But I'll 0:08:51.600 --> 0:08:54.400 use real estate first because I get very very good 0:08:54.480 --> 0:08:57.880 tax right off from depreciation and deductions. So let me 0:08:57.880 --> 0:09:01.160 give you an example of how this works. I could 0:09:01.200 --> 0:09:06.320 take my earned income I earned my salary deputy, I 0:09:06.320 --> 0:09:08.360 can put it into a rental property. Let's say rental 0:09:08.360 --> 0:09:11.200 property makes me one hundred thousand dollars a year back. 0:09:11.520 --> 0:09:13.160 That's enough to live off of. So I put my 0:09:13.240 --> 0:09:16.080 earned income in. I now get passive income that I 0:09:16.120 --> 0:09:18.640 can write off. I have about twenty thousand dollars in 0:09:18.679 --> 0:09:22.640 expenses maintenance, property management, et cetera. And then I can 0:09:22.679 --> 0:09:26.640 write off thirty six thousand dollars for depreciation. And then 0:09:26.720 --> 0:09:29.880 that lowers my taxable income that I'm earning on my 0:09:29.920 --> 0:09:33.200 wage job down to forty four percent, even though I 0:09:33.280 --> 0:09:37.240 got the eighty thousand dollars in taxes. You see, this 0:09:37.320 --> 0:09:40.079 is just one small example. But I get the cash 0:09:40.120 --> 0:09:44.760 flow the eighty thousand, and I lower my taxable income, 0:09:44.920 --> 0:09:47.320 which then lowers the amount or the percentage I pay. 0:09:47.320 --> 0:09:49.640 Remember it's all based off of brackets, all right. So 0:09:49.679 --> 0:09:51.400 what we can do is we can start to make 0:09:51.440 --> 0:09:54.320 the shift. Take my earned income, move to passive. Maybe 0:09:54.320 --> 0:09:55.920 it takes me a little bit longer, it can be 0:09:56.080 --> 0:09:58.600 other types of passive income could be dividend paying stocks, 0:09:58.640 --> 0:10:01.439 whatever you want to do. Now there's even better because 0:10:01.440 --> 0:10:04.240 with real estate we get and different types of property 0:10:04.280 --> 0:10:06.640 could be bitcoin miners, could be heavy equipment, could be 0:10:06.679 --> 0:10:10.560 real estate. I also get bonus depreciation accelerate depreciation. In 0:10:10.600 --> 0:10:13.160 Trump's original first term, he gave us this and we 0:10:13.160 --> 0:10:15.760 got one hundred percent. It's it's dwindling down to eighty 0:10:15.760 --> 0:10:18.439 percent and then sixty percent. We're hoping, crossing our fingers, 0:10:18.480 --> 0:10:21.080 he reinstates it. But basically, I could buy a million 0:10:21.160 --> 0:10:24.280 dollar asset that qualifies if I have a million dollars 0:10:24.320 --> 0:10:26.319 of income. I could buy the million dollar asset with 0:10:26.440 --> 0:10:28.760 say twenty percent down two and a grand, but then 0:10:28.840 --> 0:10:31.960 get a million dollars of write off right. And the 0:10:32.000 --> 0:10:35.520 government wants you to do this. They're incentivizing you do 0:10:35.559 --> 0:10:37.480 this now. As I said, this is not something that 0:10:37.480 --> 0:10:39.200 you can just do overnight. This is something has to 0:10:39.200 --> 0:10:41.360 be done proactively. This isn't something where you get your 0:10:41.440 --> 0:10:42.880 paperworkd end of the year in a bank statements to 0:10:42.880 --> 0:10:44.680 go to h in our block. This is something where 0:10:44.679 --> 0:10:47.319 you have to hire a tax strategist, not your CPA. 0:10:47.760 --> 0:10:50.680 This is a tax strategist, and you plan this out. 0:10:50.920 --> 0:10:54.079 You buy things strategically so you can start to build 0:10:54.080 --> 0:10:55.400 this plan out. And I'm going to show you it 0:10:55.400 --> 0:10:58.080 gets super powerful. Now, if you don't know who a 0:10:58.120 --> 0:11:00.520 tax strategist is or what they do, We're gonna have 0:11:00.679 --> 0:11:04.840 my tax strategist on a live presentation with me. It's 0:11:04.840 --> 0:11:07.640 coming up. It's an event called the Wealth Accelerator. If 0:11:07.679 --> 0:11:10.479 you want to accelerate your wealth super fast using strategies 0:11:10.480 --> 0:11:13.080 like this, I'm gonna have my tax strategists on. We're 0:11:13.120 --> 0:11:15.240 gonna go live for three days showing you how to 0:11:15.280 --> 0:11:18.040 reclaim more of your time, how to keep more of 0:11:18.080 --> 0:11:20.600 your income with these strategies, and then once you've kept more, 0:11:21.000 --> 0:11:23.600 how you can multiply it super fast by stacking them 0:11:23.600 --> 0:11:25.440 in the proper orders. I'll put a link down below 0:11:25.520 --> 0:11:26.800 or something on the screen here if you want to 0:11:26.840 --> 0:11:29.280 join that wealth accelera event. I'll be live three days 0:11:29.520 --> 0:11:32.679 right from here. My tax strategists other professionals that I use, 0:11:32.720 --> 0:11:35.679 will be on that call. Okay, so now we understand 0:11:35.720 --> 0:11:39.040 that we make the shift from earned income to passive income. 0:11:40.000 --> 0:11:43.640 How do we then start multiplying the wealth even faster. Again, 0:11:43.640 --> 0:11:46.240 there's a whole strategy about stacking assets and the velocity wealth. 0:11:46.400 --> 0:11:49.000 But right here, the first thing is I said already 0:11:49.040 --> 0:11:52.080 we're keeping more, So just the fact that we're keeping more, 0:11:52.160 --> 0:11:55.679 so we're investing six hundred thousand instead of three hundred thousand. 0:11:55.920 --> 0:11:59.160 That obviously is step number one, number two. Because of that, 0:11:59.600 --> 0:12:03.880 it's compounding faster. Okay, but these strategies are not just 0:12:03.960 --> 0:12:08.160 about earning more money. It's about controlling how much taxes 0:12:08.200 --> 0:12:11.760 I pay, and more importantly, when or if I even 0:12:11.840 --> 0:12:14.400 pay taxes. So how is that? Well, if we want 0:12:14.640 --> 0:12:17.720 really tax free wealth, what we do is, again we 0:12:17.840 --> 0:12:20.000 shift our earned income into passive income. Then what we 0:12:20.040 --> 0:12:22.400 do is we use debt so then we can borrow 0:12:22.640 --> 0:12:25.920 against our assets. When we do that, we get all 0:12:25.960 --> 0:12:29.960 the liquidity out without paying any tax. And then what 0:12:30.000 --> 0:12:32.840 we do is we reinvest that tax free income, that 0:12:32.880 --> 0:12:36.839 tax free liquidity to multiply more tax write offs for us. 0:12:37.040 --> 0:12:38.960 Let me show you what I'm talking about. So let's 0:12:39.000 --> 0:12:40.880 just say that I've bought a property. It's now gone 0:12:40.920 --> 0:12:42.880 up in value. I fixed it up, I added on 0:12:42.960 --> 0:12:44.880 to it whatever it is, and now I have equity. 0:12:44.960 --> 0:12:47.120 Let's say I have five hundred thousand dollars equity I 0:12:47.160 --> 0:12:49.840 can pull out of that property. I've refinanced it five 0:12:49.880 --> 0:12:52.959 hundred thousand out I use that five hundred thousand dollars 0:12:53.120 --> 0:12:55.760 of tax free income, tax free wealth that I can 0:12:55.800 --> 0:12:59.720 now go put down on a one point five million 0:12:59.720 --> 0:13:02.520 dollars property. And let's just say that that now that 0:13:02.559 --> 0:13:06.280 rental property is now bringing me in one one hundred 0:13:06.320 --> 0:13:09.320 and fifty thousand dollars a year two hundred thousand dollars 0:13:09.320 --> 0:13:12.400 a year of now passive income. So five hundred thousand 0:13:12.800 --> 0:13:15.240 tax free a one point five million dollar property that's 0:13:15.280 --> 0:13:17.440 now going up at about ten percent a year, I 0:13:17.480 --> 0:13:20.600 get now two hundred thousand dollars a year of passive 0:13:20.600 --> 0:13:23.679 income coming in that's now taxed at a much lower rate. 0:13:23.800 --> 0:13:27.240 And even better, I get maybe another one hundred thousand 0:13:27.280 --> 0:13:31.240 dollars of depreciation that I can write off. So now 0:13:31.280 --> 0:13:33.760 by borrowing the money out, not only am I increasing 0:13:33.800 --> 0:13:36.400 my wealth growth, I'm increasing my passive income. I'm also 0:13:36.520 --> 0:13:39.040 increasing my write offs, which means I get a write 0:13:39.080 --> 0:13:42.480 off even more income. Now, again, this has to be 0:13:42.559 --> 0:13:46.040 done through a proactive approach, and so it takes some time, 0:13:46.080 --> 0:13:48.920 depending on how much money you have or where you're at. Now, 0:13:49.160 --> 0:13:52.360 it gets even better now when you start thinking about 0:13:52.520 --> 0:13:56.440 long term planning. So if you think about society, you know, 0:13:56.480 --> 0:13:59.040 on the bottom level you have somebody living on the street, 0:13:59.120 --> 0:14:01.840 maybe a drug addict to alcoholic, and they're thinking about 0:14:01.840 --> 0:14:04.959 the next hit, the next drink. Right on the other end, 0:14:05.000 --> 0:14:07.840 you have Elon Musk and he's thinking about sending multiple 0:14:07.880 --> 0:14:11.160 generations from now to Mars, right, And so how far 0:14:11.200 --> 0:14:13.160 are you looking ahead? And so to really build wealth, 0:14:13.200 --> 0:14:14.959 we want to think a little bit more proactive, think 0:14:15.000 --> 0:14:17.600 long term. And if we really want to get rid 0:14:17.640 --> 0:14:21.120 of taxes, we can get rid of our tax base altogether. 0:14:21.520 --> 0:14:24.920 And we can do that by dying with debt. Now, 0:14:25.000 --> 0:14:26.360 there's a couple of ways we can do this as 0:14:26.360 --> 0:14:29.200 a strategy that I'm sort of using. This die with 0:14:29.240 --> 0:14:31.400 debt or borrow buy, borrow die. You might have heard 0:14:31.440 --> 0:14:34.120 of that before. Basically, what we can do is I 0:14:34.120 --> 0:14:37.640 can buy a property and I can then pass it 0:14:37.680 --> 0:14:40.520 on to my kids and then they can step up 0:14:40.560 --> 0:14:42.520 the basis. So what does that mean. Let me give 0:14:42.520 --> 0:14:45.520 you an example. So let's just say there's two ways 0:14:45.520 --> 0:14:47.160 we can do This is the first way. It's not 0:14:47.200 --> 0:14:49.840 my favorite way. So let's say that I bought a 0:14:49.880 --> 0:14:53.400 million dollar property and when I die, the property is 0:14:53.440 --> 0:14:57.800 worth five million dollars. Not unlikely, they'll probably be more 0:14:57.800 --> 0:15:00.600 than that. It's worth five million dollars. What I can 0:15:00.640 --> 0:15:04.240 do then is I can give that property to my 0:15:04.320 --> 0:15:07.640 heerrs to my kids, and now my kids have this 0:15:07.760 --> 0:15:11.280 property with a new stepped up basis of this four 0:15:11.360 --> 0:15:13.840 million dollars. So now if they want to sell it, 0:15:13.840 --> 0:15:15.360 they don't have to pay So let's say they want 0:15:15.400 --> 0:15:17.560 to sell in the future for ten million. Instead of 0:15:17.600 --> 0:15:19.680 paying the difference of one million to ten million, which 0:15:19.680 --> 0:15:22.320 is nine million dollars of taxes they would owe, now 0:15:22.400 --> 0:15:25.000 they only pay it off of this value, so they 0:15:25.040 --> 0:15:27.600 step it up. So that's how we really get rid 0:15:27.600 --> 0:15:30.320 of those taxes. There's another way. My more preferred way 0:15:30.640 --> 0:15:33.800 is by using non revocable trusts. So if I create 0:15:33.920 --> 0:15:37.000 non revocable trusts, I can put certain assets into those 0:15:37.240 --> 0:15:40.160 that my kids my heirs could have and it doesn't 0:15:40.200 --> 0:15:43.240 trigger a transfer and so there's no taxable event there 0:15:43.280 --> 0:15:45.480 as well. Now it doesn't step up the basis. So 0:15:45.560 --> 0:15:47.560 depends on what your strategy is. If you're really planning 0:15:47.600 --> 0:15:49.600 long term, you don't care about the basis. If your 0:15:49.680 --> 0:15:51.600 kids maybe want to sell the properties, then you do 0:15:51.640 --> 0:15:53.640 want to step up the basis, So it depends. But 0:15:53.680 --> 0:15:55.800 when you get here, then you really start thinking about 0:15:55.800 --> 0:15:58.640 your legacy. Then you can really build tax free wealth, 0:15:58.640 --> 0:16:01.520 which again helps you multi play wealth faster, helps your 0:16:01.600 --> 0:16:04.960 kids multiply wealth way faster, and on and on. And 0:16:05.240 --> 0:16:07.680 I know that there's this whole thing going on today. 0:16:07.840 --> 0:16:10.240 There's a book written, Die with Zero. I think it's 0:16:10.280 --> 0:16:13.600 a terrible way. I think about this blockchain of life, 0:16:13.800 --> 0:16:16.680 Like my life is this proof of work. I'll put 0:16:16.680 --> 0:16:18.160 a lot of value into the world. We built up 0:16:18.200 --> 0:16:21.200 some wealth. Why wouldn't I want my heirs, my kids, 0:16:21.240 --> 0:16:24.840 my great grandkids to have a higher step up in life. Now, look, 0:16:24.960 --> 0:16:26.440 I'm not talking about you know, I want them to 0:16:26.440 --> 0:16:28.200 have a higher starting point. I'm not talking about a 0:16:28.200 --> 0:16:30.080 hand up. I'm not talking about where they have enough money. 0:16:30.080 --> 0:16:32.040 They ever have to work and they're lazy and they're 0:16:32.120 --> 0:16:35.000 terrible people. But I like, why not have money that 0:16:35.040 --> 0:16:38.200 they could borrow against to start a business or do 0:16:38.320 --> 0:16:41.120 something productive with their life. Now, this is a whole 0:16:41.120 --> 0:16:43.280 other video. I do something about it. So I in 0:16:43.320 --> 0:16:46.320 my trust, I have what's called a family constitution. It's 0:16:46.360 --> 0:16:48.200 a set of rules the mayors I have to live with. 0:16:48.240 --> 0:16:50.160 And we can get into that conversation. I don't want 0:16:50.200 --> 0:16:52.000 to get into all that. But what I'm saying is, 0:16:52.360 --> 0:16:54.680 why wouldn't we want to think about wealth. We can 0:16:54.720 --> 0:16:57.280 grow it faster, we can get rid of taxes, we 0:16:57.320 --> 0:16:59.680 can push more value into the future. But like I said, 0:16:59.840 --> 0:17:03.200 you have to do this proactively, and the government doesn't 0:17:03.240 --> 0:17:06.200 look down on this. They actually want you to do this. 0:17:06.480 --> 0:17:08.480 That's an incentive if you want to learn these strategies 0:17:08.520 --> 0:17:11.000 and meet my tax strategist and we'll give you twenty 0:17:11.040 --> 0:17:13.119 twenty five tips that you can use almost immediately for 0:17:13.160 --> 0:17:15.920 twenty twenty five to lower your taxable income right away, 0:17:15.960 --> 0:17:18.440 no matter where you're at. Come check out the event. 0:17:18.480 --> 0:17:20.439 I'm calling it the Wealth Accelerator. I'll be live right 0:17:20.480 --> 0:17:22.560 here from the studio for three full days. I'm bringing 0:17:22.600 --> 0:17:25.119 in a bunch of experts to reclaim more of your time, 0:17:25.480 --> 0:17:28.560 to keep more of your income, and to multiply your 0:17:28.560 --> 0:17:31.000 wealth faster than you've ever thought. Make twenty twenty five 0:17:31.080 --> 0:17:33.720 the best year. There's a link down below. Otherwise, let 0:17:33.720 --> 0:17:36.320 me know what you think about this strategy. Is it 0:17:36.359 --> 0:17:38.919 a loophole? Do you feel bad by using it or 0:17:38.920 --> 0:17:41.040 do you understand the government wants you to use it 0:17:41.200 --> 0:17:43.240 and incentivize you. Let me know in the comments down below, 0:17:43.440 --> 0:17:45.280 and that's what I got, all right to your success. 0:17:45.880 --> 0:17:46.280 I'm out.