1 00:00:00,120 --> 00:00:02,680 Speaker 1: If you're a baby boomer or even someone planning to 2 00:00:02,759 --> 00:00:05,320 Speaker 1: retire within the next few years, then you need to 3 00:00:05,360 --> 00:00:08,039 Speaker 1: be watching this now. As somebody who built an eight 4 00:00:08,119 --> 00:00:11,440 Speaker 1: figure real estate portfolio, had two high value business exits, 5 00:00:11,440 --> 00:00:13,920 Speaker 1: and was retired before the age of thirty, I thought 6 00:00:13,960 --> 00:00:16,599 Speaker 1: I had it all figured out until I got completely 7 00:00:16,680 --> 00:00:19,080 Speaker 1: wiped out in the two thousand and eight financial crisis. 8 00:00:19,120 --> 00:00:22,200 Speaker 1: Now I've had to learn some important lessons the hard way, 9 00:00:22,440 --> 00:00:25,079 Speaker 1: but those lessons made it easier for me to build 10 00:00:25,120 --> 00:00:27,880 Speaker 1: and protect my wealth the second time around. So in 11 00:00:27,920 --> 00:00:30,480 Speaker 1: this video, I'm gonna explain exactly what you need to 12 00:00:30,520 --> 00:00:32,960 Speaker 1: be paying attention to if you plan to retire in 13 00:00:33,000 --> 00:00:35,800 Speaker 1: the next few years. So let's get into it, all right. 14 00:00:35,800 --> 00:00:37,320 Speaker 1: Welcome to the channel. If you're new, my name is 15 00:00:37,360 --> 00:00:39,360 Speaker 1: Mark Moss. I make these videos to change the way 16 00:00:39,400 --> 00:00:41,840 Speaker 1: you think about money. And you know, as I say, 17 00:00:41,880 --> 00:00:44,880 Speaker 1: everything you've learned is wrong and unfortunately, I want to 18 00:00:44,920 --> 00:00:47,400 Speaker 1: put things into perspective for you real quick before we 19 00:00:47,440 --> 00:00:50,400 Speaker 1: get into the lesson, because things are looking pretty bad 20 00:00:50,520 --> 00:00:52,960 Speaker 1: going into twenty twenty. So let me give you a 21 00:00:53,000 --> 00:00:55,400 Speaker 1: couple of reasons why you need to be paying attention 22 00:00:55,440 --> 00:00:59,080 Speaker 1: to this. First number one, baby boomers, the boomers. Maybe 23 00:00:59,120 --> 00:01:01,680 Speaker 1: you looking to retire in the next few years. Now, 24 00:01:01,720 --> 00:01:04,679 Speaker 1: you've been told to get a good job, save for retirement, 25 00:01:04,720 --> 00:01:07,520 Speaker 1: and one day you'd live your dream. Right. Well, unfortunately 26 00:01:07,560 --> 00:01:09,399 Speaker 1: that dream is not coming true. As a matter of fact, 27 00:01:09,440 --> 00:01:14,200 Speaker 1: today fifty percent of baby boomers looking to retire have 28 00:01:14,400 --> 00:01:16,160 Speaker 1: zero savings, so that's not going to work out too 29 00:01:16,200 --> 00:01:18,760 Speaker 1: well for them. Fifty percent have zero savings. Of the 30 00:01:18,800 --> 00:01:22,440 Speaker 1: ones who do have savings, the average amount saved is 31 00:01:22,480 --> 00:01:25,479 Speaker 1: about one hundred thousand dollars. Now that might sound a lot, 32 00:01:25,560 --> 00:01:27,200 Speaker 1: maybe if you live in a foreign country. In the 33 00:01:27,280 --> 00:01:30,240 Speaker 1: United States, the average amount needed by a baby boomer 34 00:01:30,280 --> 00:01:32,880 Speaker 1: is about fifty seven thousand, So that's not going to 35 00:01:32,920 --> 00:01:36,840 Speaker 1: get you too far. Now, this leads to a massive problem, 36 00:01:37,120 --> 00:01:39,680 Speaker 1: one of which is that, as I said, because they 37 00:01:39,720 --> 00:01:42,800 Speaker 1: have no savings, what are they going to do? Now 38 00:01:42,840 --> 00:01:45,600 Speaker 1: what we can see this is a big problem. As 39 00:01:45,600 --> 00:01:49,320 Speaker 1: a matter of fact, baby boomers in America are becoming homeless. 40 00:01:49,680 --> 00:01:52,040 Speaker 1: They're not just becoming homeless, they're becoming homeless at the 41 00:01:52,080 --> 00:01:56,560 Speaker 1: fastest pace in history. We can see right here the 42 00:01:56,600 --> 00:01:59,880 Speaker 1: staggering numbers behind this that single adults in the ninety 43 00:02:00,000 --> 00:02:03,320 Speaker 1: these homeless single adultsa nineties was only eleven percent, but 44 00:02:03,480 --> 00:02:06,600 Speaker 1: by two thousand and three it grew to thirty seven percent. 45 00:02:06,640 --> 00:02:08,640 Speaker 1: That's a big deal from eleven to thirty seven. But 46 00:02:08,800 --> 00:02:12,800 Speaker 1: now it says that half of the homeless people are 47 00:02:12,840 --> 00:02:16,640 Speaker 1: boomers half fifty percent. So this is a big problem. 48 00:02:16,680 --> 00:02:18,600 Speaker 1: If you're not being prepared for this, you're going to 49 00:02:18,639 --> 00:02:21,400 Speaker 1: be caught off guard. That's number one, no savings. Number 50 00:02:21,400 --> 00:02:24,720 Speaker 1: two social security. A lot of boomers and just people 51 00:02:24,720 --> 00:02:27,040 Speaker 1: in general maybe think they didn't need the savings because 52 00:02:27,040 --> 00:02:29,359 Speaker 1: they'd have Social Security to take care of them. Of Course, 53 00:02:29,400 --> 00:02:32,400 Speaker 1: social Security is the government, and the government doesn't have 54 00:02:32,440 --> 00:02:35,280 Speaker 1: any money. Now, the government put the Social Security Act 55 00:02:35,360 --> 00:02:38,639 Speaker 1: in place. FDR did that in nineteen thirty five. Now, 56 00:02:38,880 --> 00:02:42,520 Speaker 1: it was originally created in a way that was pay 57 00:02:42,520 --> 00:02:45,519 Speaker 1: as you go, meaning you put money in, they invest 58 00:02:45,560 --> 00:02:47,600 Speaker 1: that money for you, and one day, when you're old, 59 00:02:47,639 --> 00:02:51,360 Speaker 1: hopefully they give you the money back. However, something changed 60 00:02:51,639 --> 00:02:53,160 Speaker 1: before we get to that. Let me just tell you 61 00:02:53,520 --> 00:02:56,800 Speaker 1: it worked really well. At that point. In nineteen fifty nine, 62 00:02:56,840 --> 00:02:59,919 Speaker 1: the poverty rate in elderly people was thirty five percent. 63 00:03:00,480 --> 00:03:04,200 Speaker 1: By putting the Social Security program into place, that poverty 64 00:03:04,280 --> 00:03:07,240 Speaker 1: dropped from thirty five percent down to eleven percent. It 65 00:03:07,280 --> 00:03:10,760 Speaker 1: worked really well, but something changed in the nineteen eighties. 66 00:03:11,160 --> 00:03:14,720 Speaker 1: President Ronald Reagan decided that maybe we'll just borrow from 67 00:03:14,760 --> 00:03:17,000 Speaker 1: that piggy bank a little bit. Maybe we'll take some 68 00:03:17,040 --> 00:03:19,400 Speaker 1: of that money put aside for SOCD Security because they 69 00:03:19,440 --> 00:03:21,400 Speaker 1: don't need it right now, and we'll use it for 70 00:03:21,560 --> 00:03:25,680 Speaker 1: things like wars, other government pet projects, things like that. 71 00:03:25,720 --> 00:03:28,760 Speaker 1: And it wasn't just Reagan, it was every other president 72 00:03:28,880 --> 00:03:31,760 Speaker 1: after that. The problem is today is the SoC Security 73 00:03:31,840 --> 00:03:34,120 Speaker 1: is no longer a piggy bank. It's no longer a 74 00:03:34,120 --> 00:03:35,800 Speaker 1: pay as you go. It's now what we call a 75 00:03:35,840 --> 00:03:39,160 Speaker 1: Ponzi scheme. The problem is that with a Ponzi scheme, 76 00:03:39,280 --> 00:03:41,320 Speaker 1: if you have a lot of people paying in and 77 00:03:41,320 --> 00:03:43,960 Speaker 1: a few people pulling out, that's okay. But when those 78 00:03:44,040 --> 00:03:47,560 Speaker 1: numbers reverse, it becomes a big problem. And that's exactly 79 00:03:47,640 --> 00:03:49,920 Speaker 1: what we've seen happening. You can see here's a chart 80 00:03:49,960 --> 00:03:52,800 Speaker 1: of the birth rates, and so here is nineteen fifty, 81 00:03:53,040 --> 00:03:56,840 Speaker 1: we were having about almost three point seventy five kids 82 00:03:56,840 --> 00:04:00,440 Speaker 1: per couple, but the birth rate has completely lapsed. As 83 00:04:00,440 --> 00:04:02,920 Speaker 1: a matter of fact, right here at two point one 84 00:04:03,400 --> 00:04:06,800 Speaker 1: is the level that a civilization needs to sustain itself 85 00:04:06,880 --> 00:04:10,240 Speaker 1: two point one kids per couple, and as you can see, 86 00:04:10,240 --> 00:04:12,240 Speaker 1: we are well below that level. As a matter of fact, 87 00:04:12,280 --> 00:04:15,400 Speaker 1: we are at one point six today. We're not sustaining 88 00:04:15,440 --> 00:04:17,839 Speaker 1: our own civilization, which is why you see Elon Musk 89 00:04:17,880 --> 00:04:22,040 Speaker 1: saying that depopulation is probably the number one problem we're 90 00:04:22,040 --> 00:04:23,800 Speaker 1: facing in the world today. This is all over the West, 91 00:04:23,839 --> 00:04:25,960 Speaker 1: this is happening. Now, that's a whole another topic for 92 00:04:25,960 --> 00:04:28,039 Speaker 1: another video. If you want that, leave me a comment 93 00:04:28,080 --> 00:04:30,479 Speaker 1: down below. But the point that we're talking about here 94 00:04:30,800 --> 00:04:33,280 Speaker 1: is back here in the fifties, when social security was 95 00:04:33,320 --> 00:04:35,640 Speaker 1: working really well, you had a lot of people paying in. 96 00:04:36,160 --> 00:04:38,480 Speaker 1: Today you have the largest segment of the population, the 97 00:04:38,520 --> 00:04:42,039 Speaker 1: baby boomers, and you have almost no not even enough 98 00:04:42,040 --> 00:04:45,240 Speaker 1: birth to sustain a civilization, much less pay into that 99 00:04:45,240 --> 00:04:48,320 Speaker 1: social security. That's a big problem. Another problem that we 100 00:04:48,400 --> 00:04:52,080 Speaker 1: have is massive immigration, as you're aware of, of course, 101 00:04:52,520 --> 00:04:55,880 Speaker 1: millions of people coming into the country, and you know, 102 00:04:56,040 --> 00:04:58,760 Speaker 1: they've decided that these immigrants that come into the country 103 00:04:58,760 --> 00:05:01,000 Speaker 1: that haven't worked their whole life to pay into the 104 00:05:01,080 --> 00:05:03,720 Speaker 1: Ponzi scheme, are able to get money out. As a 105 00:05:03,760 --> 00:05:05,880 Speaker 1: matter of fact, from this working paper, right here. You 106 00:05:05,920 --> 00:05:08,279 Speaker 1: can google that if you want. Under the current rules, 107 00:05:08,279 --> 00:05:12,560 Speaker 1: immigrant workers realize a higher rate of return on their 108 00:05:12,600 --> 00:05:16,359 Speaker 1: Social Security than natural born citizens. And so now we 109 00:05:16,480 --> 00:05:19,479 Speaker 1: have increased amount of people pulling from it, not just 110 00:05:19,520 --> 00:05:23,120 Speaker 1: the boomers, now immigrants, and we don't have enough people 111 00:05:23,160 --> 00:05:27,320 Speaker 1: pulling in paying into the program, which is why it's negative. 112 00:05:27,600 --> 00:05:30,279 Speaker 1: And it's scheduled to run out in less than ten 113 00:05:30,360 --> 00:05:32,719 Speaker 1: years now that's what the government says. It is probably 114 00:05:32,760 --> 00:05:35,320 Speaker 1: going to run out even faster. So I wouldn't be 115 00:05:35,360 --> 00:05:38,000 Speaker 1: counting on that if that was your retirement plan. All right, 116 00:05:38,040 --> 00:05:39,360 Speaker 1: I want to take a break real quick just to 117 00:05:39,440 --> 00:05:41,120 Speaker 1: let you know that if you're sick of the global 118 00:05:41,120 --> 00:05:44,280 Speaker 1: elites robbing you blind through frivolous money printing like I am, 119 00:05:44,400 --> 00:05:46,520 Speaker 1: then you should be at the Bitcoin twenty twenty four 120 00:05:46,560 --> 00:05:50,039 Speaker 1: conference in Nashville, Tennessee, to Lie twenty fifth through twenty seventh. 121 00:05:50,160 --> 00:05:53,560 Speaker 1: It's the largest bitcoin gathering fintech conference in the world, 122 00:05:53,600 --> 00:05:55,960 Speaker 1: and twenty twenty four Bitcoin stands as a beacon of 123 00:05:55,960 --> 00:05:59,920 Speaker 1: monetary freedom, a glimmer of hope amongst the darkening macroeconomic backdrop. 124 00:06:00,080 --> 00:06:02,960 Speaker 1: Come hang out with me and other top speakers, companies, 125 00:06:03,000 --> 00:06:05,880 Speaker 1: thought leaders from across the industry will all be in 126 00:06:05,960 --> 00:06:08,640 Speaker 1: Nashville looking ahead to the next year and beyond. Now, 127 00:06:08,760 --> 00:06:10,800 Speaker 1: ticket prices are on sale right now, and you can 128 00:06:10,800 --> 00:06:13,159 Speaker 1: get an extra ten percent off if you use my 129 00:06:13,240 --> 00:06:16,080 Speaker 1: code Mark Moss. But make sure you're secure your spot 130 00:06:16,160 --> 00:06:18,640 Speaker 1: right now. It's gonna sell out and ticket prices go 131 00:06:18,720 --> 00:06:21,440 Speaker 1: up over time. Use Mark Moss for a ten percent 132 00:06:21,520 --> 00:06:24,760 Speaker 1: off discount. And if you do, send me your code 133 00:06:24,760 --> 00:06:26,839 Speaker 1: that you used my code to buy your ticket. And 134 00:06:26,880 --> 00:06:28,760 Speaker 1: I'm going to invite you to a special event that 135 00:06:28,839 --> 00:06:31,080 Speaker 1: I'm having, So make sure you get your ticket. Bitcoin 136 00:06:31,120 --> 00:06:33,600 Speaker 1: twenty twenty four, use Mark Moss for ten percent off 137 00:06:33,720 --> 00:06:35,680 Speaker 1: and I hope to see you there. Okay. Next we 138 00:06:35,760 --> 00:06:38,280 Speaker 1: have the four oh one K and the pensions. Now, 139 00:06:38,600 --> 00:06:41,240 Speaker 1: back in the day, big businesses used to save your 140 00:06:41,279 --> 00:06:43,240 Speaker 1: money for you and they'd pay you back later. Of course, 141 00:06:43,240 --> 00:06:46,000 Speaker 1: those days are long gone, and so we introduce what's 142 00:06:46,000 --> 00:06:48,240 Speaker 1: called a four oh one K or now your own 143 00:06:48,320 --> 00:06:50,880 Speaker 1: pension plan, where you're supposed to invest for yourself. In 144 00:06:50,920 --> 00:06:54,000 Speaker 1: some cases your employer matches those whatever, but basically that 145 00:06:54,040 --> 00:06:57,240 Speaker 1: money goes into Wall Street, into mutual funds four one 146 00:06:57,320 --> 00:07:00,000 Speaker 1: ks and they invest that for you. Now, this really 147 00:07:00,120 --> 00:07:03,599 Speaker 1: took off in about the early eighties, and when all 148 00:07:03,760 --> 00:07:06,240 Speaker 1: these boomers, when all these people started investing into the 149 00:07:06,240 --> 00:07:08,159 Speaker 1: stock market through their four one k's in the eighties 150 00:07:08,160 --> 00:07:11,600 Speaker 1: and the nineties, the stock market took off supply and demand, 151 00:07:11,840 --> 00:07:14,840 Speaker 1: more people buying stocks. Of course, the prices go up. 152 00:07:15,000 --> 00:07:17,320 Speaker 1: We saw four h one k adoption go from eight 153 00:07:17,360 --> 00:07:21,160 Speaker 1: percent to thirty one percent in that time. Now, we 154 00:07:21,240 --> 00:07:25,200 Speaker 1: saw the market completely taking off during that period, as 155 00:07:25,240 --> 00:07:28,280 Speaker 1: you can see right here. From the eighties into the nineties, 156 00:07:28,560 --> 00:07:32,840 Speaker 1: the markets exploded as all of these new investors came 157 00:07:32,880 --> 00:07:35,520 Speaker 1: into the market. Here's the problem though, Now all of 158 00:07:35,520 --> 00:07:38,000 Speaker 1: these new investors who don't really know what they're doing 159 00:07:38,000 --> 00:07:40,760 Speaker 1: and shouldn't probably have their money in the market, got in, 160 00:07:40,960 --> 00:07:44,119 Speaker 1: but when the market dropped down, all their wealth was lost. 161 00:07:44,360 --> 00:07:48,080 Speaker 1: We saw their wealth drop down here into the two thousands, 162 00:07:48,080 --> 00:07:50,760 Speaker 1: and then again in the two thousand and eight financial crash. Now, 163 00:07:50,840 --> 00:07:53,560 Speaker 1: if you were one of those people that had your 164 00:07:53,800 --> 00:07:56,440 Speaker 1: while your wealth, your assets in the stock market, hoping 165 00:07:56,440 --> 00:07:58,800 Speaker 1: to retire from that, you were met with a bad surprise. 166 00:07:58,880 --> 00:08:01,000 Speaker 1: You saw the market crash times in a row, and 167 00:08:01,080 --> 00:08:05,320 Speaker 1: it took sixteen years just to get back to even Now, 168 00:08:05,320 --> 00:08:07,880 Speaker 1: if you were trying to retire in that sixteen year period. 169 00:08:08,000 --> 00:08:10,440 Speaker 1: It was pretty bad for you, which is why millions 170 00:08:10,480 --> 00:08:13,480 Speaker 1: of Americans had to go back to work during this 171 00:08:13,600 --> 00:08:15,480 Speaker 1: time period. The same time, I lost a lot of 172 00:08:15,480 --> 00:08:17,800 Speaker 1: my wealth as well. All right, so this is what happened. Now. 173 00:08:17,840 --> 00:08:21,080 Speaker 1: The other problem is that these are not really sophisticated investors, 174 00:08:21,080 --> 00:08:23,360 Speaker 1: which of course why they give their money to Wall Street. 175 00:08:23,600 --> 00:08:26,280 Speaker 1: The problem with that is, to part one, they don't 176 00:08:26,360 --> 00:08:30,040 Speaker 1: understand the risk that they're taking. Number two, those Wall 177 00:08:30,040 --> 00:08:33,440 Speaker 1: Street fund managers take a massive part of their wealth. 178 00:08:33,480 --> 00:08:35,880 Speaker 1: It's a big deal, and it creates wealth in bubbles 179 00:08:36,160 --> 00:08:39,319 Speaker 1: and not real assets. That's a big problem, part of 180 00:08:39,360 --> 00:08:40,880 Speaker 1: the problem that got me into trouble as well. And 181 00:08:40,920 --> 00:08:45,000 Speaker 1: then finally, your favorite subject of all, taxes, the two 182 00:08:45,040 --> 00:08:47,720 Speaker 1: things in life that are unavoidable death and taxes, and 183 00:08:47,760 --> 00:08:49,800 Speaker 1: of course we have taxes. Now. Part of this four 184 00:08:49,920 --> 00:08:53,319 Speaker 1: h one K mutual fund scheme is that you can 185 00:08:53,400 --> 00:08:56,280 Speaker 1: put your money into these and it can be tax deferred. 186 00:08:56,520 --> 00:08:58,839 Speaker 1: A lot of your so called tax strategists think they're 187 00:08:58,880 --> 00:09:02,120 Speaker 1: saving you money by having you divert money into a 188 00:09:02,160 --> 00:09:04,120 Speaker 1: four one K so you don't have to pay tax 189 00:09:04,160 --> 00:09:07,559 Speaker 1: on today lowering your taxable income, which seems like an 190 00:09:07,559 --> 00:09:10,760 Speaker 1: OK plan on the surface level, except for there's a problem. 191 00:09:11,120 --> 00:09:14,400 Speaker 1: The problem is that taxes have been at some of 192 00:09:14,440 --> 00:09:16,880 Speaker 1: the lowest rates in history. As a matter of fact, 193 00:09:16,960 --> 00:09:18,640 Speaker 1: we can take a look at this right here, and 194 00:09:18,720 --> 00:09:21,600 Speaker 1: you can see from nineteen forty five where taxes were 195 00:09:21,880 --> 00:09:25,199 Speaker 1: and they've been trending down ever since. And so if 196 00:09:25,240 --> 00:09:28,480 Speaker 1: you had really high taxes and you thought maybe they'd 197 00:09:28,480 --> 00:09:31,320 Speaker 1: be lower in the future, it might make sense to 198 00:09:31,400 --> 00:09:33,640 Speaker 1: actually defer them till when they were lower in the future. 199 00:09:33,760 --> 00:09:36,760 Speaker 1: The problem is, when we're already in the lowest part 200 00:09:36,800 --> 00:09:40,240 Speaker 1: of taxes in history, most likely taxes are going up, 201 00:09:40,720 --> 00:09:43,200 Speaker 1: why would you want to defer those taxes. And let's 202 00:09:43,240 --> 00:09:45,000 Speaker 1: just take a look. Do you think taxes will be 203 00:09:45,040 --> 00:09:47,520 Speaker 1: going up or down? What we can see here? This 204 00:09:47,600 --> 00:09:50,760 Speaker 1: is in Canada. Trudeau says that he wants to increase 205 00:09:50,760 --> 00:09:55,880 Speaker 1: capital gains taxes to sixty six percent. So now you've 206 00:09:55,880 --> 00:09:57,760 Speaker 1: worked your whole life, you've put all your money into 207 00:09:57,800 --> 00:10:00,000 Speaker 1: the four oh one k, now you're ready to get 208 00:10:00,120 --> 00:10:02,600 Speaker 1: it out, and they want to take sixty six percent 209 00:10:02,600 --> 00:10:05,040 Speaker 1: of your wealth and you probably haven't saved up enough already, 210 00:10:05,040 --> 00:10:07,319 Speaker 1: And now that's Canada, of course, but what about the 211 00:10:07,400 --> 00:10:09,520 Speaker 1: United States. Well, the Biden administration wants to do the 212 00:10:09,559 --> 00:10:13,160 Speaker 1: same thing. He wants to height capital gains tax as well. 213 00:10:13,320 --> 00:10:16,760 Speaker 1: Not quite as bad as Canada here only forty four 214 00:10:16,760 --> 00:10:20,640 Speaker 1: point six percent, So you were deferring taxes that you 215 00:10:20,679 --> 00:10:23,280 Speaker 1: could have paid when they were lower. And now when 216 00:10:23,280 --> 00:10:25,160 Speaker 1: these boomers want to pull money out, they're going to 217 00:10:25,160 --> 00:10:27,440 Speaker 1: be giving half of that back to the government. Half 218 00:10:27,520 --> 00:10:31,600 Speaker 1: of the money that's already not enough. So that sounds bad, right, 219 00:10:31,840 --> 00:10:34,200 Speaker 1: and it is, But it's not all doom and gloom 220 00:10:34,280 --> 00:10:37,560 Speaker 1: because we have a plan. Question is what should we 221 00:10:37,640 --> 00:10:41,160 Speaker 1: do about this? That's the question. Now there's the general information. 222 00:10:41,280 --> 00:10:43,000 Speaker 1: Of course, you should make more money, and maybe you 223 00:10:43,000 --> 00:10:44,800 Speaker 1: should save some money, and maybe you should save money 224 00:10:44,800 --> 00:10:46,719 Speaker 1: at a faster rate. Sure we can talk about that, 225 00:10:47,040 --> 00:10:48,920 Speaker 1: but that's not really going to help you out. Now. 226 00:10:49,000 --> 00:10:51,320 Speaker 1: The key that you need to understand in this is 227 00:10:51,360 --> 00:10:54,199 Speaker 1: that where I went wrong and where most of the 228 00:10:54,200 --> 00:10:55,920 Speaker 1: boomers are going wrong in two thousand and eight and 229 00:10:56,000 --> 00:10:59,400 Speaker 1: today as well, is in three core areas. I had 230 00:10:59,440 --> 00:11:00,880 Speaker 1: to learn my life in the hard way, and I 231 00:11:00,920 --> 00:11:03,240 Speaker 1: want to help you get it the easy way. So 232 00:11:03,600 --> 00:11:06,800 Speaker 1: number one, the first way that I messed up and 233 00:11:06,840 --> 00:11:10,120 Speaker 1: I had to learn. My lesson is that income is 234 00:11:10,280 --> 00:11:12,600 Speaker 1: greater than assets. All right, This is where I messed up. 235 00:11:12,600 --> 00:11:14,880 Speaker 1: In two thousand and eight. I had businesses that made 236 00:11:14,920 --> 00:11:17,440 Speaker 1: a lot of cash flow. I had rental properties that 237 00:11:17,520 --> 00:11:19,720 Speaker 1: made a lot of cash flow. And I sold my 238 00:11:19,800 --> 00:11:22,520 Speaker 1: businesses and I sold my rental properties and I bought 239 00:11:22,520 --> 00:11:25,600 Speaker 1: a bunch of assets. The problem is, it's cool having 240 00:11:25,600 --> 00:11:28,880 Speaker 1: a bunch of assets, but turns out you need income 241 00:11:28,920 --> 00:11:31,640 Speaker 1: to live off of. And when the real estate market 242 00:11:31,640 --> 00:11:34,080 Speaker 1: turned down, when the markets crashed in two thousand and eight, 243 00:11:34,200 --> 00:11:37,400 Speaker 1: my assets became worth less. But I had no cash 244 00:11:37,400 --> 00:11:39,760 Speaker 1: flow to live off of. And I had no cash 245 00:11:39,840 --> 00:11:42,679 Speaker 1: flow to pay for the debt service on the assets 246 00:11:42,679 --> 00:11:44,480 Speaker 1: that I had. And because I had no cash flow, 247 00:11:44,520 --> 00:11:47,440 Speaker 1: because I had no businesses anymore, the assets lost their value. 248 00:11:47,440 --> 00:11:49,520 Speaker 1: I couldn't afford to keep them, and I got wiped out. 249 00:11:49,880 --> 00:11:52,680 Speaker 1: What I learned is that income is what we need, 250 00:11:52,960 --> 00:11:55,640 Speaker 1: not assets. Now baby omers are making the same problem. 251 00:11:55,920 --> 00:11:58,000 Speaker 1: What they tell you is to get a good job 252 00:11:58,080 --> 00:12:02,800 Speaker 1: and save for retirement. You're supposed to save your wealth 253 00:12:03,040 --> 00:12:05,920 Speaker 1: and one day maybe your stock retirement account is worth 254 00:12:05,960 --> 00:12:08,760 Speaker 1: one million dollars or three million dollars, whatever that is. 255 00:12:09,040 --> 00:12:11,480 Speaker 1: There's all types of calculators that you can find online 256 00:12:11,480 --> 00:12:15,439 Speaker 1: that will help you calculate the number that you need. However, 257 00:12:15,800 --> 00:12:20,079 Speaker 1: the problem is that number is based off of an asset, okay, 258 00:12:20,200 --> 00:12:21,920 Speaker 1: And the problem is they say, well, if you get 259 00:12:21,920 --> 00:12:25,080 Speaker 1: one million dollars, you can withdraw up to four percent 260 00:12:25,200 --> 00:12:27,760 Speaker 1: of that number per year. So the goal is that 261 00:12:27,760 --> 00:12:30,040 Speaker 1: you're going to live off your savings. You're going to 262 00:12:30,080 --> 00:12:33,640 Speaker 1: be draining your assets to live. But the problem is 263 00:12:33,720 --> 00:12:37,040 Speaker 1: what happens if those assets become worth less money like 264 00:12:37,080 --> 00:12:40,240 Speaker 1: I've just demonstrated, like I experienced in two thousand and eight, 265 00:12:40,320 --> 00:12:42,360 Speaker 1: Like there's a very high probability of that happening. So 266 00:12:42,400 --> 00:12:45,560 Speaker 1: the problem is the entire scheme that you've been sold 267 00:12:45,559 --> 00:12:49,120 Speaker 1: of saving and living off of savings. Is broken income 268 00:12:49,280 --> 00:12:52,600 Speaker 1: better than assets? Number two, we want to increase and 269 00:12:52,679 --> 00:12:55,360 Speaker 1: not decrease. So the goal is that our assets should 270 00:12:55,360 --> 00:12:57,800 Speaker 1: be increasing. The amount of wealth that we have is 271 00:12:57,880 --> 00:12:59,719 Speaker 1: not currency, it's not money in the bank, it's a 272 00:13:00,000 --> 00:13:03,400 Speaker 1: sets that we own. We want our assets to be increasing, 273 00:13:03,440 --> 00:13:06,360 Speaker 1: not decreasing. So if you build up your assets your 274 00:13:06,400 --> 00:13:10,240 Speaker 1: stock retirement account, and then you continually sell it off, 275 00:13:10,520 --> 00:13:13,480 Speaker 1: live off of it, drain that piggybank. Your assets are 276 00:13:13,520 --> 00:13:17,160 Speaker 1: decreasing now maybe hopefully it's enough for you to live 277 00:13:17,160 --> 00:13:18,720 Speaker 1: off for the rest of your life, and then you 278 00:13:18,800 --> 00:13:21,280 Speaker 1: die broke. We have nothing to pass on to your kids, 279 00:13:21,559 --> 00:13:24,079 Speaker 1: your grandkids, whatever. Now a better way to do it. 280 00:13:24,120 --> 00:13:25,679 Speaker 1: If I had cash flow, if I had assets a 281 00:13:25,760 --> 00:13:28,959 Speaker 1: cash fload, those assets would continue to go up in value. 282 00:13:29,040 --> 00:13:31,440 Speaker 1: I'm spending the cash flow being produced off of those 283 00:13:31,600 --> 00:13:34,240 Speaker 1: while the assets are going higher. That way, when I die, 284 00:13:34,400 --> 00:13:37,040 Speaker 1: my assets are worth even more, and my grandkids or 285 00:13:37,120 --> 00:13:38,800 Speaker 1: kids get those. And this is the way that we 286 00:13:38,880 --> 00:13:42,920 Speaker 1: create generational wealth and not just life span wealth. You see, 287 00:13:43,200 --> 00:13:46,400 Speaker 1: the communists wants you to own nothing, Carl Mark said 288 00:13:46,440 --> 00:13:49,480 Speaker 1: in the Communist Manifesto to summarize communism in one statement, 289 00:13:49,520 --> 00:13:52,840 Speaker 1: is the abolition of private property. I just showed you 290 00:13:52,840 --> 00:13:56,800 Speaker 1: the quote from Trudeau. He wants to stop this intergenerational 291 00:13:57,600 --> 00:14:01,000 Speaker 1: transfer of wealth. Right. That's why death axes are so high. 292 00:14:01,280 --> 00:14:04,400 Speaker 1: And so the entire scheme they've sold you of save 293 00:14:04,520 --> 00:14:07,520 Speaker 1: for retirement and then spend your savings down is for 294 00:14:07,640 --> 00:14:11,120 Speaker 1: you for your lifespan. Hopefully maybe you'll have enough money 295 00:14:11,200 --> 00:14:14,840 Speaker 1: for your life span, whereas If you build cash flow, 296 00:14:14,960 --> 00:14:17,960 Speaker 1: you're building it generationally because those assets will continue to 297 00:14:18,000 --> 00:14:20,800 Speaker 1: increase in value and will pass on to your kids. 298 00:14:20,960 --> 00:14:25,120 Speaker 1: Does that sound good? How exactly do we do that? 299 00:14:25,240 --> 00:14:27,040 Speaker 1: Don't worry, I'm going to break it all down for 300 00:14:27,120 --> 00:14:31,080 Speaker 1: you right here. Cash flow is basically income, right, We 301 00:14:31,200 --> 00:14:32,720 Speaker 1: need cash flow to live. You got to pay your 302 00:14:32,760 --> 00:14:34,920 Speaker 1: monthly bills, you've got to eat, et cetera. And so 303 00:14:35,040 --> 00:14:37,680 Speaker 1: what we're really trying to do is we're trying to 304 00:14:37,800 --> 00:14:41,640 Speaker 1: invest not just for assets, but assets that produce cash flow. 305 00:14:41,920 --> 00:14:44,000 Speaker 1: And I got a very easy way you can do this. 306 00:14:44,400 --> 00:14:48,360 Speaker 1: So it all starts with intention. What is it that 307 00:14:48,360 --> 00:14:52,160 Speaker 1: I'm trying to achieve? How much income do I need? 308 00:14:52,200 --> 00:14:54,760 Speaker 1: That's the first question. Now I just ask yourself to 309 00:14:54,800 --> 00:14:56,880 Speaker 1: think about that. How much cashflow do you need? Now? 310 00:14:56,920 --> 00:14:58,640 Speaker 1: Some people say I want a million dollars, I want 311 00:14:58,640 --> 00:15:00,920 Speaker 1: ten million dollars, I want ten thousand a month, but 312 00:15:00,960 --> 00:15:03,200 Speaker 1: they haven't really actually thought through what that is. Now, 313 00:15:03,560 --> 00:15:06,280 Speaker 1: what I recommend is you need to figure out exactly 314 00:15:06,360 --> 00:15:08,400 Speaker 1: what that is. If you wanted to go somewhere, if 315 00:15:08,440 --> 00:15:10,520 Speaker 1: you want to go to dinner or go to your 316 00:15:10,520 --> 00:15:13,040 Speaker 1: friend's house, you would need to know an address to 317 00:15:13,040 --> 00:15:15,600 Speaker 1: put into your GPS. You don't say take me somewhere 318 00:15:15,600 --> 00:15:18,080 Speaker 1: cool or take me to my friend's house. You need 319 00:15:18,120 --> 00:15:21,600 Speaker 1: to put in an exact street number, an exact location. 320 00:15:21,720 --> 00:15:23,800 Speaker 1: So we want to know our exact location. Now, you 321 00:15:23,840 --> 00:15:26,520 Speaker 1: can just use an Excel spreadsheet or a Google doc 322 00:15:26,560 --> 00:15:28,600 Speaker 1: if you want, and you can just kind of follow along. 323 00:15:28,640 --> 00:15:31,240 Speaker 1: I'd recommend that you do this exercise if you want 324 00:15:31,320 --> 00:15:33,120 Speaker 1: this has I have a calculator and stuff. You can 325 00:15:33,160 --> 00:15:34,960 Speaker 1: get it for free right here. You can just scan 326 00:15:35,040 --> 00:15:37,000 Speaker 1: this with your phone, download it for free, or you 327 00:15:37,000 --> 00:15:39,560 Speaker 1: can build your own. Take you ten to fifteen minutes. Okay, 328 00:15:39,680 --> 00:15:41,840 Speaker 1: So the first thing is there's two numbers that we 329 00:15:41,880 --> 00:15:43,880 Speaker 1: want to get. The first number that we want to 330 00:15:43,920 --> 00:15:48,280 Speaker 1: get is what is our minimum monthly expenses? So how 331 00:15:48,400 --> 00:15:51,120 Speaker 1: much does it take for you to not be homeless? 332 00:15:51,600 --> 00:15:55,400 Speaker 1: What's your rent or house payment, your basic bills, electricity bill, 333 00:15:55,400 --> 00:15:57,800 Speaker 1: gas bill, water bill, et cetera, and like a minimum 334 00:15:57,840 --> 00:15:59,480 Speaker 1: amount of like food, what does it take for you 335 00:15:59,520 --> 00:16:02,960 Speaker 1: to not be homeless like the fifty percent of elderly people, 336 00:16:02,960 --> 00:16:05,120 Speaker 1: because that's the goal number one, don't be homeless? So 337 00:16:05,160 --> 00:16:07,120 Speaker 1: how much is that? Is it? Two thousand a month? 338 00:16:07,200 --> 00:16:09,560 Speaker 1: Five thousand a month, ten thousand a month. Add that up. 339 00:16:09,640 --> 00:16:13,200 Speaker 1: Here's my rent, here's my electricity bill, here's my gas, 340 00:16:13,480 --> 00:16:17,000 Speaker 1: my cell phone, et cetera. What is that number? That 341 00:16:17,120 --> 00:16:20,080 Speaker 1: number is probably going to be lower than the next 342 00:16:20,160 --> 00:16:22,720 Speaker 1: number that I want to get is what's my ideal number? 343 00:16:22,760 --> 00:16:25,360 Speaker 1: Because for me, just being homeless isn't enough, right. I 344 00:16:25,400 --> 00:16:27,440 Speaker 1: want to be able to continue to live my life. 345 00:16:27,520 --> 00:16:30,600 Speaker 1: And so what's that second number. What's my ideal number? Well, 346 00:16:31,040 --> 00:16:34,200 Speaker 1: I'd like to be able to take two vacations a year. Okay, great, 347 00:16:34,200 --> 00:16:37,400 Speaker 1: how much are those five thousand each? Okay, ten thousand dollars? Okay, 348 00:16:37,400 --> 00:16:39,080 Speaker 1: So then break that down eight hundred bucks a month. 349 00:16:39,240 --> 00:16:40,640 Speaker 1: I'd like to be able to get a new car 350 00:16:40,680 --> 00:16:42,600 Speaker 1: every three years. Okay, how much is that? Well, I'm 351 00:16:42,600 --> 00:16:44,160 Speaker 1: going to need a ten thousand dollars down payment. Okay, 352 00:16:44,160 --> 00:16:46,240 Speaker 1: divide that by three years. Write that down. So then 353 00:16:46,240 --> 00:16:48,840 Speaker 1: you have your minimum number, and then you have your 354 00:16:48,920 --> 00:16:51,280 Speaker 1: ideal number. Now, if you're a boomer, one thing you 355 00:16:51,280 --> 00:16:53,640 Speaker 1: have to keep into consideration is, as you can see 356 00:16:53,640 --> 00:16:56,640 Speaker 1: from this headline right here, that you can expect to 357 00:16:56,680 --> 00:17:00,640 Speaker 1: spend way more on healthcare and retirement even if you're 358 00:17:01,040 --> 00:17:03,680 Speaker 1: very healthy. According to what this article says, A sixty 359 00:17:03,720 --> 00:17:05,560 Speaker 1: five year old couple retiring this year will need two 360 00:17:05,640 --> 00:17:09,720 Speaker 1: hundred and seventy five thousand dollars just for medical expenses, 361 00:17:09,720 --> 00:17:11,520 Speaker 1: so make sure to add that in. That's going to 362 00:17:11,560 --> 00:17:14,040 Speaker 1: be I don't know, roughly one thousand dollars a month. 363 00:17:14,080 --> 00:17:16,400 Speaker 1: They're going need to add in to whatever your expenses are. 364 00:17:16,440 --> 00:17:18,560 Speaker 1: So step number one is write down what is your 365 00:17:18,600 --> 00:17:22,080 Speaker 1: minimum expenses and then your ideal expenses. Step number two 366 00:17:22,600 --> 00:17:25,000 Speaker 1: is that now that we know how much income, how 367 00:17:25,080 --> 00:17:28,000 Speaker 1: much cashflow, we need our minimum number and our ideal number. 368 00:17:28,240 --> 00:17:31,080 Speaker 1: The next thing is we have to decide how much 369 00:17:31,280 --> 00:17:34,679 Speaker 1: money we're making now and how much of that money 370 00:17:34,720 --> 00:17:38,360 Speaker 1: is coming passively through investments versus I have to work 371 00:17:38,400 --> 00:17:40,000 Speaker 1: for because the goal is to retire and I don't 372 00:17:40,040 --> 00:17:42,320 Speaker 1: have to work anymore. So now I would write down 373 00:17:42,480 --> 00:17:46,520 Speaker 1: what is my monthly earned income. So my main job 374 00:17:47,000 --> 00:17:50,000 Speaker 1: I make this, Maybe my wife works, or I have 375 00:17:50,040 --> 00:17:52,600 Speaker 1: a second job, I write that down. Maybe I have 376 00:17:52,640 --> 00:17:55,560 Speaker 1: a side hustle, maybe I do things on the weekend 377 00:17:55,680 --> 00:17:58,600 Speaker 1: or something like that. So whatever things you're working for, 378 00:17:58,640 --> 00:18:00,480 Speaker 1: whatever earned income is you want, I want to write 379 00:18:00,520 --> 00:18:03,280 Speaker 1: those numbers down right here, and then the next thing 380 00:18:03,320 --> 00:18:06,720 Speaker 1: you want to write down is how much passive income 381 00:18:06,760 --> 00:18:08,960 Speaker 1: do you have coming in? Right, So, if you have 382 00:18:09,000 --> 00:18:11,840 Speaker 1: a rental property, if you have a rate in your 383 00:18:11,840 --> 00:18:15,280 Speaker 1: stock account, if you own bonds that pay you out, coupons, 384 00:18:15,640 --> 00:18:17,760 Speaker 1: anything like that. So you have a rental property, you 385 00:18:17,760 --> 00:18:20,440 Speaker 1: have an ETF that pays you out, you have bonds, treasuries, 386 00:18:20,480 --> 00:18:24,320 Speaker 1: government bonds, anything that you own that's paying you passive income. 387 00:18:24,640 --> 00:18:28,000 Speaker 1: Write that down and total that up as well. Okay, 388 00:18:28,280 --> 00:18:30,480 Speaker 1: so we're trying to get a good picture. Don't worry. 389 00:18:30,480 --> 00:18:33,320 Speaker 1: I'm going to show you how we can close this gap. 390 00:18:33,320 --> 00:18:35,440 Speaker 1: All right. So's that's where goet, But we first have 391 00:18:35,520 --> 00:18:37,440 Speaker 1: to figure out where we want to go. Number one 392 00:18:37,520 --> 00:18:39,760 Speaker 1: the number, and number two where we're at Again. You 393 00:18:39,800 --> 00:18:41,640 Speaker 1: can just do this on any Excel spreadsheet, a piece 394 00:18:41,640 --> 00:18:43,679 Speaker 1: of paper with a pencil, or if you want, you 395 00:18:43,680 --> 00:18:45,919 Speaker 1: can get this free download and the calculator here if 396 00:18:45,920 --> 00:18:48,600 Speaker 1: you want to grab that as well. All right, now, 397 00:18:48,960 --> 00:18:51,880 Speaker 1: once we have those numbers, I like to look at 398 00:18:51,880 --> 00:18:53,959 Speaker 1: it through this calculator again, which is why you can 399 00:18:53,960 --> 00:18:55,560 Speaker 1: get this for free if you want, but if not, 400 00:18:55,640 --> 00:18:57,800 Speaker 1: just do your own math. The reason why I want 401 00:18:57,840 --> 00:18:59,359 Speaker 1: to look at like this is because I want to 402 00:18:59,359 --> 00:19:02,320 Speaker 1: be able to see visually what the delta is, what 403 00:19:02,359 --> 00:19:05,160 Speaker 1: the difference is between where my goal is and where 404 00:19:05,240 --> 00:19:08,119 Speaker 1: I'm at. So once I've put these hypothetical numbers in, 405 00:19:08,359 --> 00:19:11,160 Speaker 1: I can see, here's the total amount of earned income 406 00:19:11,200 --> 00:19:15,320 Speaker 1: that I have twelve five hundred, and here's the total 407 00:19:15,359 --> 00:19:18,200 Speaker 1: amount of passive income I have, let's say six thousand, 408 00:19:19,320 --> 00:19:22,119 Speaker 1: all right, and it shows me the gap. This is 409 00:19:22,160 --> 00:19:24,639 Speaker 1: what I need to close. This will quickly give me 410 00:19:24,680 --> 00:19:27,399 Speaker 1: a summary of those numbers, and it will tell me 411 00:19:27,440 --> 00:19:31,200 Speaker 1: what my surplus is every month. What happens is once 412 00:19:31,240 --> 00:19:35,240 Speaker 1: we've determined our goal and we start to track our goal, 413 00:19:35,840 --> 00:19:38,920 Speaker 1: then it sort of gamifies the situation. Then it's like, ooh, 414 00:19:39,080 --> 00:19:41,000 Speaker 1: I've just added an extra fifty dollars a month. Oh 415 00:19:41,040 --> 00:19:42,920 Speaker 1: I've added an extra one hundred dollars a month. Now 416 00:19:43,040 --> 00:19:44,879 Speaker 1: what seems overwhelming? They say, you know, how do you 417 00:19:44,880 --> 00:19:46,719 Speaker 1: eat an elephant one bite at a time. Well, it 418 00:19:46,800 --> 00:19:49,520 Speaker 1: might seem overwhelming to get that five thousand a month 419 00:19:49,640 --> 00:19:51,840 Speaker 1: or ten thousand a month that you need, and it 420 00:19:51,920 --> 00:19:53,479 Speaker 1: is if you look at that big number. But if 421 00:19:53,480 --> 00:19:55,320 Speaker 1: you just think about it, it's like, can I add 422 00:19:55,359 --> 00:19:57,640 Speaker 1: one hundred bucks? Can I add one hundred bucks a month? 423 00:19:57,800 --> 00:20:00,240 Speaker 1: Can I add an extra two to fifty? As you 424 00:20:00,240 --> 00:20:03,160 Speaker 1: start making progress, you start to pick up momentum and steam, 425 00:20:03,240 --> 00:20:04,720 Speaker 1: and it starts to make it more fun. So it 426 00:20:04,760 --> 00:20:07,440 Speaker 1: gamifies the situation, which is why I like to look 427 00:20:07,480 --> 00:20:09,800 Speaker 1: at it. In some sort of a tracking system like this. 428 00:20:09,840 --> 00:20:11,800 Speaker 1: They say, well gets measure gets managed. And so you 429 00:20:11,800 --> 00:20:14,520 Speaker 1: want to measure your progress to the goal. Okay, So 430 00:20:14,600 --> 00:20:17,560 Speaker 1: now you understand the game. You understand where you want 431 00:20:17,560 --> 00:20:22,000 Speaker 1: to go, but your minimum monthly expenses or your income, 432 00:20:22,040 --> 00:20:24,640 Speaker 1: let's just write that here. Now you understand your target. 433 00:20:25,320 --> 00:20:28,280 Speaker 1: Let's make a target out of this, and you understand 434 00:20:28,320 --> 00:20:33,159 Speaker 1: where you're at here, so you are here. Okay. So 435 00:20:33,200 --> 00:20:35,480 Speaker 1: now we know these two numbers. Now you might go mark. 436 00:20:35,600 --> 00:20:37,960 Speaker 1: You just make me feel more depressed, because holy crap, 437 00:20:37,960 --> 00:20:39,960 Speaker 1: I need a bunch of income and I have none. Okay, 438 00:20:40,000 --> 00:20:42,120 Speaker 1: no worries. Let's make a plan. So now we know 439 00:20:42,280 --> 00:20:44,480 Speaker 1: these two things. The goal is now we just have 440 00:20:44,520 --> 00:20:47,600 Speaker 1: to build the bridge. Okay, So how do we do that? 441 00:20:47,600 --> 00:20:51,520 Speaker 1: That's the next step. So there's three ways that we 442 00:20:51,560 --> 00:20:53,840 Speaker 1: can do this, all right, Three ways we can build 443 00:20:53,840 --> 00:20:56,760 Speaker 1: the bridge and speed up that bridge production. Number one, 444 00:20:57,400 --> 00:20:59,280 Speaker 1: we have to have capital. We have to have money 445 00:20:59,280 --> 00:21:01,400 Speaker 1: because we have to buy the cash flow, all right, 446 00:21:01,400 --> 00:21:03,760 Speaker 1: we have to buy the cash flow. Number two, it's 447 00:21:03,840 --> 00:21:07,040 Speaker 1: the rate of return that we get on that cash flow. 448 00:21:07,280 --> 00:21:09,640 Speaker 1: So if I can make five percent or I make 449 00:21:09,720 --> 00:21:13,119 Speaker 1: twenty five percent, and then the third is I have time. 450 00:21:13,240 --> 00:21:16,080 Speaker 1: These are the three levers that will determine how long 451 00:21:16,080 --> 00:21:18,159 Speaker 1: it takes to build a bridge and will allow us 452 00:21:18,200 --> 00:21:20,840 Speaker 1: to speed up that bridge crossing even if you have 453 00:21:20,920 --> 00:21:23,639 Speaker 1: no passive income. Today, most people that I've worked with 454 00:21:23,680 --> 00:21:25,800 Speaker 1: have been able to achieve this in just a couple 455 00:21:25,840 --> 00:21:29,000 Speaker 1: of years. All right, So these are the three levers, capital, 456 00:21:29,119 --> 00:21:31,600 Speaker 1: returns and time. Let me give you an example again. 457 00:21:31,600 --> 00:21:34,520 Speaker 1: If you want this calculator worksheet, you can download completely 458 00:21:34,560 --> 00:21:36,639 Speaker 1: for free right here. Just scan that QR code. It's 459 00:21:36,640 --> 00:21:38,720 Speaker 1: also linked in the show notes down below, or just 460 00:21:38,720 --> 00:21:40,120 Speaker 1: do it on a piece of paper. But I highly 461 00:21:40,200 --> 00:21:42,840 Speaker 1: recommend you writing this down. Study down by Harvard NBA 462 00:21:43,240 --> 00:21:45,720 Speaker 1: showed that less than three percent of people had written 463 00:21:45,800 --> 00:21:48,639 Speaker 1: down goals when they went into the Harvard NBA program, 464 00:21:48,760 --> 00:21:50,680 Speaker 1: and those three percent of people that had written down 465 00:21:50,680 --> 00:21:54,320 Speaker 1: goals outperformed the ninety seven percent by like ten times. 466 00:21:54,400 --> 00:21:56,199 Speaker 1: Very important to write this stuff down. So even if 467 00:21:56,240 --> 00:21:58,200 Speaker 1: it's a pen and paper, do it. We'll put into 468 00:21:58,200 --> 00:22:00,240 Speaker 1: a spreadsheet you can track it regularly. Okay, So let 469 00:22:00,280 --> 00:22:02,080 Speaker 1: me show you what I'm talking about here. Let's just 470 00:22:02,080 --> 00:22:05,160 Speaker 1: say hypothetically, you need one hundred thousand dollars a year 471 00:22:05,200 --> 00:22:06,879 Speaker 1: of cash low. Right, that's what it takes for you 472 00:22:06,960 --> 00:22:09,439 Speaker 1: to live about eight grand a month. Okay, how do 473 00:22:09,480 --> 00:22:11,640 Speaker 1: you do that? So we have to buy the cash flow? Right, 474 00:22:11,880 --> 00:22:16,000 Speaker 1: So if you have two million dollars and you can 475 00:22:16,080 --> 00:22:18,560 Speaker 1: invest that at a five percent rate of return, like 476 00:22:18,600 --> 00:22:22,719 Speaker 1: buying US treasuries right now, risk free rate about five percent, 477 00:22:22,920 --> 00:22:25,040 Speaker 1: it would take you two million dollars to get the 478 00:22:25,080 --> 00:22:27,520 Speaker 1: one hundred thousand dollars a year of passive income. Now 479 00:22:27,560 --> 00:22:29,400 Speaker 1: you might say, Mark, now you're scaring me even more 480 00:22:29,440 --> 00:22:31,720 Speaker 1: because I need that and I don't have anywhere near 481 00:22:31,760 --> 00:22:34,399 Speaker 1: two hundred thousand dollars. Okay, Well, you can do the 482 00:22:34,440 --> 00:22:37,520 Speaker 1: same thing with five hundred thousand dollars if you're able 483 00:22:37,560 --> 00:22:40,639 Speaker 1: to earn twenty percent. Right. So these are the levers. 484 00:22:40,720 --> 00:22:43,080 Speaker 1: I have the amount of capital requires, I have their 485 00:22:43,160 --> 00:22:45,600 Speaker 1: rate of return, and then I also have the time. 486 00:22:45,840 --> 00:22:47,320 Speaker 1: So what do I mean by the time, Well, the 487 00:22:47,359 --> 00:22:51,080 Speaker 1: time is the rule of seventy two. You take seventy 488 00:22:51,160 --> 00:22:54,200 Speaker 1: two divided by the rate you're able to receive back 489 00:22:54,320 --> 00:22:56,560 Speaker 1: the yield, and that shows you how long it takes 490 00:22:56,600 --> 00:22:59,240 Speaker 1: to double your money. So let's say you need two million, 491 00:22:59,280 --> 00:23:02,160 Speaker 1: but you only have one million, and you can make 492 00:23:02,200 --> 00:23:04,720 Speaker 1: about a seven percent return. Well, you can just wait 493 00:23:05,080 --> 00:23:07,440 Speaker 1: seven ten years and you'll double your money and you'll 494 00:23:07,480 --> 00:23:09,600 Speaker 1: have the two million. We'll get into that a little 495 00:23:09,600 --> 00:23:11,800 Speaker 1: bit greater detail here in a second, but you can 496 00:23:11,880 --> 00:23:15,080 Speaker 1: understand I either need more capital, or I need a 497 00:23:15,080 --> 00:23:18,000 Speaker 1: better rate of return, or I have to wait more time. 498 00:23:18,040 --> 00:23:20,200 Speaker 1: All right, we can spend a lot of time, because 499 00:23:20,240 --> 00:23:22,720 Speaker 1: now the next question is what types of investments can 500 00:23:22,760 --> 00:23:26,440 Speaker 1: I make to earn these types of yields, what other 501 00:23:26,600 --> 00:23:29,080 Speaker 1: risks that I have? And then how do I calculate 502 00:23:29,080 --> 00:23:31,360 Speaker 1: what the timeframe is? Now, what I've found is that 503 00:23:31,520 --> 00:23:33,359 Speaker 1: it's much easier to wait when I know how long 504 00:23:33,400 --> 00:23:35,080 Speaker 1: I have to wait. Lately, at the gym, I've been 505 00:23:35,119 --> 00:23:37,240 Speaker 1: doing this exercise where I just hang from a bar 506 00:23:37,400 --> 00:23:40,080 Speaker 1: for like sixty seconds, which sounds pretty easy, And if 507 00:23:40,080 --> 00:23:42,320 Speaker 1: I can look at the clock and watch it count down, 508 00:23:42,760 --> 00:23:44,800 Speaker 1: I can do it no problem. But when I'm not watching, 509 00:23:44,800 --> 00:23:46,440 Speaker 1: the clock gets very hard to hang on. I don't 510 00:23:46,440 --> 00:23:47,840 Speaker 1: know how long I have to go. And so when 511 00:23:47,880 --> 00:23:50,520 Speaker 1: you build out this plan in detail and you know 512 00:23:50,640 --> 00:23:52,800 Speaker 1: exactly how long it's going to take you to achieve 513 00:23:52,800 --> 00:23:55,840 Speaker 1: these milestones, it becomes much easier. But that's more than 514 00:23:55,840 --> 00:23:57,440 Speaker 1: I can cover in this video. But I got you. 515 00:23:57,600 --> 00:24:00,159 Speaker 1: I have another video, completely free that you can watch 516 00:24:00,200 --> 00:24:02,280 Speaker 1: why I break all this down and greater detail, and 517 00:24:02,280 --> 00:24:04,720 Speaker 1: I'm gonna link it right here. It's not listed on 518 00:24:04,760 --> 00:24:07,680 Speaker 1: my main YouTube channel. It's just for you because you 519 00:24:07,760 --> 00:24:09,159 Speaker 1: made it to the end of this video. There's a 520 00:24:09,200 --> 00:24:11,240 Speaker 1: link in the description down below, or you can watch 521 00:24:11,240 --> 00:24:13,080 Speaker 1: it up there if you want to watch it. And 522 00:24:13,119 --> 00:24:14,919 Speaker 1: that's what we got. Hopefully this makes sense to you. 523 00:24:14,920 --> 00:24:16,840 Speaker 1: You got to do something. You can't rely on the 524 00:24:16,840 --> 00:24:19,080 Speaker 1: government to save you. Social Security is broke. Four to 525 00:24:19,119 --> 00:24:22,080 Speaker 1: one k's are gonna be taxed, assets could crash, You're 526 00:24:22,119 --> 00:24:24,800 Speaker 1: gonna need cash flow. Hopefully that makes sense. Let me 527 00:24:24,840 --> 00:24:26,440 Speaker 1: know what you think in the comment down below. Hopefully 528 00:24:26,440 --> 00:24:27,960 Speaker 1: like this video. If you do give me thumbs up. 529 00:24:27,960 --> 00:24:29,320 Speaker 1: If you don't give me thumb down, that's okay, but 530 00:24:29,359 --> 00:24:31,399 Speaker 1: at least tell me why In the comments down below, 531 00:24:31,640 --> 00:24:33,280 Speaker 1: and that's what I got, all right to your success.