WEBVTT - Retirement Reset: Build and Protect Your Wealth 0:00:00.120 --> 0:00:02.680 If you're a baby boomer or even someone planning to 0:00:02.759 --> 0:00:05.320 retire within the next few years, then you need to 0:00:05.360 --> 0:00:08.039 be watching this now. As somebody who built an eight 0:00:08.119 --> 0:00:11.440 figure real estate portfolio, had two high value business exits, 0:00:11.440 --> 0:00:13.920 and was retired before the age of thirty, I thought 0:00:13.960 --> 0:00:16.599 I had it all figured out until I got completely 0:00:16.680 --> 0:00:19.080 wiped out in the two thousand and eight financial crisis. 0:00:19.120 --> 0:00:22.200 Now I've had to learn some important lessons the hard way, 0:00:22.440 --> 0:00:25.079 but those lessons made it easier for me to build 0:00:25.120 --> 0:00:27.880 and protect my wealth the second time around. So in 0:00:27.920 --> 0:00:30.480 this video, I'm gonna explain exactly what you need to 0:00:30.520 --> 0:00:32.960 be paying attention to if you plan to retire in 0:00:33.000 --> 0:00:35.800 the next few years. So let's get into it, all right. 0:00:35.800 --> 0:00:37.320 Welcome to the channel. If you're new, my name is 0:00:37.360 --> 0:00:39.360 Mark Moss. I make these videos to change the way 0:00:39.400 --> 0:00:41.840 you think about money. And you know, as I say, 0:00:41.880 --> 0:00:44.880 everything you've learned is wrong and unfortunately, I want to 0:00:44.920 --> 0:00:47.400 put things into perspective for you real quick before we 0:00:47.440 --> 0:00:50.400 get into the lesson, because things are looking pretty bad 0:00:50.520 --> 0:00:52.960 going into twenty twenty. So let me give you a 0:00:53.000 --> 0:00:55.400 couple of reasons why you need to be paying attention 0:00:55.440 --> 0:00:59.080 to this. First number one, baby boomers, the boomers. Maybe 0:00:59.120 --> 0:01:01.680 you looking to retire in the next few years. Now, 0:01:01.720 --> 0:01:04.679 you've been told to get a good job, save for retirement, 0:01:04.720 --> 0:01:07.520 and one day you'd live your dream. Right. Well, unfortunately 0:01:07.560 --> 0:01:09.399 that dream is not coming true. As a matter of fact, 0:01:09.440 --> 0:01:14.200 today fifty percent of baby boomers looking to retire have 0:01:14.400 --> 0:01:16.160 zero savings, so that's not going to work out too 0:01:16.200 --> 0:01:18.760 well for them. Fifty percent have zero savings. Of the 0:01:18.800 --> 0:01:22.440 ones who do have savings, the average amount saved is 0:01:22.480 --> 0:01:25.479 about one hundred thousand dollars. Now that might sound a lot, 0:01:25.560 --> 0:01:27.200 maybe if you live in a foreign country. In the 0:01:27.280 --> 0:01:30.240 United States, the average amount needed by a baby boomer 0:01:30.280 --> 0:01:32.880 is about fifty seven thousand, So that's not going to 0:01:32.920 --> 0:01:36.840 get you too far. Now, this leads to a massive problem, 0:01:37.120 --> 0:01:39.680 one of which is that, as I said, because they 0:01:39.720 --> 0:01:42.800 have no savings, what are they going to do? Now 0:01:42.840 --> 0:01:45.600 what we can see this is a big problem. As 0:01:45.600 --> 0:01:49.320 a matter of fact, baby boomers in America are becoming homeless. 0:01:49.680 --> 0:01:52.040 They're not just becoming homeless, they're becoming homeless at the 0:01:52.080 --> 0:01:56.560 fastest pace in history. We can see right here the 0:01:56.600 --> 0:01:59.880 staggering numbers behind this that single adults in the ninety 0:02:00.000 --> 0:02:03.320 these homeless single adultsa nineties was only eleven percent, but 0:02:03.480 --> 0:02:06.600 by two thousand and three it grew to thirty seven percent. 0:02:06.640 --> 0:02:08.640 That's a big deal from eleven to thirty seven. But 0:02:08.800 --> 0:02:12.800 now it says that half of the homeless people are 0:02:12.840 --> 0:02:16.640 boomers half fifty percent. So this is a big problem. 0:02:16.680 --> 0:02:18.600 If you're not being prepared for this, you're going to 0:02:18.639 --> 0:02:21.400 be caught off guard. That's number one, no savings. Number 0:02:21.400 --> 0:02:24.720 two social security. A lot of boomers and just people 0:02:24.720 --> 0:02:27.040 in general maybe think they didn't need the savings because 0:02:27.040 --> 0:02:29.359 they'd have Social Security to take care of them. Of Course, 0:02:29.400 --> 0:02:32.400 social Security is the government, and the government doesn't have 0:02:32.440 --> 0:02:35.280 any money. Now, the government put the Social Security Act 0:02:35.360 --> 0:02:38.639 in place. FDR did that in nineteen thirty five. Now, 0:02:38.880 --> 0:02:42.520 it was originally created in a way that was pay 0:02:42.520 --> 0:02:45.519 as you go, meaning you put money in, they invest 0:02:45.560 --> 0:02:47.600 that money for you, and one day, when you're old, 0:02:47.639 --> 0:02:51.360 hopefully they give you the money back. However, something changed 0:02:51.639 --> 0:02:53.160 before we get to that. Let me just tell you 0:02:53.520 --> 0:02:56.800 it worked really well. At that point. In nineteen fifty nine, 0:02:56.840 --> 0:02:59.919 the poverty rate in elderly people was thirty five percent. 0:03:00.480 --> 0:03:04.200 By putting the Social Security program into place, that poverty 0:03:04.280 --> 0:03:07.240 dropped from thirty five percent down to eleven percent. It 0:03:07.280 --> 0:03:10.760 worked really well, but something changed in the nineteen eighties. 0:03:11.160 --> 0:03:14.720 President Ronald Reagan decided that maybe we'll just borrow from 0:03:14.760 --> 0:03:17.000 that piggy bank a little bit. Maybe we'll take some 0:03:17.040 --> 0:03:19.400 of that money put aside for SOCD Security because they 0:03:19.440 --> 0:03:21.400 don't need it right now, and we'll use it for 0:03:21.560 --> 0:03:25.680 things like wars, other government pet projects, things like that. 0:03:25.720 --> 0:03:28.760 And it wasn't just Reagan, it was every other president 0:03:28.880 --> 0:03:31.760 after that. The problem is today is the SoC Security 0:03:31.840 --> 0:03:34.120 is no longer a piggy bank. It's no longer a 0:03:34.120 --> 0:03:35.800 pay as you go. It's now what we call a 0:03:35.840 --> 0:03:39.160 Ponzi scheme. The problem is that with a Ponzi scheme, 0:03:39.280 --> 0:03:41.320 if you have a lot of people paying in and 0:03:41.320 --> 0:03:43.960 a few people pulling out, that's okay. But when those 0:03:44.040 --> 0:03:47.560 numbers reverse, it becomes a big problem. And that's exactly 0:03:47.640 --> 0:03:49.920 what we've seen happening. You can see here's a chart 0:03:49.960 --> 0:03:52.800 of the birth rates, and so here is nineteen fifty, 0:03:53.040 --> 0:03:56.840 we were having about almost three point seventy five kids 0:03:56.840 --> 0:04:00.440 per couple, but the birth rate has completely lapsed. As 0:04:00.440 --> 0:04:02.920 a matter of fact, right here at two point one 0:04:03.400 --> 0:04:06.800 is the level that a civilization needs to sustain itself 0:04:06.880 --> 0:04:10.240 two point one kids per couple, and as you can see, 0:04:10.240 --> 0:04:12.240 we are well below that level. As a matter of fact, 0:04:12.280 --> 0:04:15.400 we are at one point six today. We're not sustaining 0:04:15.440 --> 0:04:17.839 our own civilization, which is why you see Elon Musk 0:04:17.880 --> 0:04:22.040 saying that depopulation is probably the number one problem we're 0:04:22.040 --> 0:04:23.800 facing in the world today. This is all over the West, 0:04:23.839 --> 0:04:25.960 this is happening. Now, that's a whole another topic for 0:04:25.960 --> 0:04:28.039 another video. If you want that, leave me a comment 0:04:28.080 --> 0:04:30.479 down below. But the point that we're talking about here 0:04:30.800 --> 0:04:33.280 is back here in the fifties, when social security was 0:04:33.320 --> 0:04:35.640 working really well, you had a lot of people paying in. 0:04:36.160 --> 0:04:38.480 Today you have the largest segment of the population, the 0:04:38.520 --> 0:04:42.039 baby boomers, and you have almost no not even enough 0:04:42.040 --> 0:04:45.240 birth to sustain a civilization, much less pay into that 0:04:45.240 --> 0:04:48.320 social security. That's a big problem. Another problem that we 0:04:48.400 --> 0:04:52.080 have is massive immigration, as you're aware of, of course, 0:04:52.520 --> 0:04:55.880 millions of people coming into the country, and you know, 0:04:56.040 --> 0:04:58.760 they've decided that these immigrants that come into the country 0:04:58.760 --> 0:05:01.000 that haven't worked their whole life to pay into the 0:05:01.080 --> 0:05:03.720 Ponzi scheme, are able to get money out. As a 0:05:03.760 --> 0:05:05.880 matter of fact, from this working paper, right here. You 0:05:05.920 --> 0:05:08.279 can google that if you want. Under the current rules, 0:05:08.279 --> 0:05:12.560 immigrant workers realize a higher rate of return on their 0:05:12.600 --> 0:05:16.359 Social Security than natural born citizens. And so now we 0:05:16.480 --> 0:05:19.479 have increased amount of people pulling from it, not just 0:05:19.520 --> 0:05:23.120 the boomers, now immigrants, and we don't have enough people 0:05:23.160 --> 0:05:27.320 pulling in paying into the program, which is why it's negative. 0:05:27.600 --> 0:05:30.279 And it's scheduled to run out in less than ten 0:05:30.360 --> 0:05:32.719 years now that's what the government says. It is probably 0:05:32.760 --> 0:05:35.320 going to run out even faster. So I wouldn't be 0:05:35.360 --> 0:05:38.000 counting on that if that was your retirement plan. All right, 0:05:38.040 --> 0:05:39.360 I want to take a break real quick just to 0:05:39.440 --> 0:05:41.120 let you know that if you're sick of the global 0:05:41.120 --> 0:05:44.280 elites robbing you blind through frivolous money printing like I am, 0:05:44.400 --> 0:05:46.520 then you should be at the Bitcoin twenty twenty four 0:05:46.560 --> 0:05:50.039 conference in Nashville, Tennessee, to Lie twenty fifth through twenty seventh. 0:05:50.160 --> 0:05:53.560 It's the largest bitcoin gathering fintech conference in the world, 0:05:53.600 --> 0:05:55.960 and twenty twenty four Bitcoin stands as a beacon of 0:05:55.960 --> 0:05:59.920 monetary freedom, a glimmer of hope amongst the darkening macroeconomic backdrop. 0:06:00.080 --> 0:06:02.960 Come hang out with me and other top speakers, companies, 0:06:03.000 --> 0:06:05.880 thought leaders from across the industry will all be in 0:06:05.960 --> 0:06:08.640 Nashville looking ahead to the next year and beyond. Now, 0:06:08.760 --> 0:06:10.800 ticket prices are on sale right now, and you can 0:06:10.800 --> 0:06:13.159 get an extra ten percent off if you use my 0:06:13.240 --> 0:06:16.080 code Mark Moss. But make sure you're secure your spot 0:06:16.160 --> 0:06:18.640 right now. It's gonna sell out and ticket prices go 0:06:18.720 --> 0:06:21.440 up over time. Use Mark Moss for a ten percent 0:06:21.520 --> 0:06:24.760 off discount. And if you do, send me your code 0:06:24.760 --> 0:06:26.839 that you used my code to buy your ticket. And 0:06:26.880 --> 0:06:28.760 I'm going to invite you to a special event that 0:06:28.839 --> 0:06:31.080 I'm having, So make sure you get your ticket. Bitcoin 0:06:31.120 --> 0:06:33.600 twenty twenty four, use Mark Moss for ten percent off 0:06:33.720 --> 0:06:35.680 and I hope to see you there. Okay. Next we 0:06:35.760 --> 0:06:38.280 have the four oh one K and the pensions. Now, 0:06:38.600 --> 0:06:41.240 back in the day, big businesses used to save your 0:06:41.279 --> 0:06:43.240 money for you and they'd pay you back later. Of course, 0:06:43.240 --> 0:06:46.000 those days are long gone, and so we introduce what's 0:06:46.000 --> 0:06:48.240 called a four oh one K or now your own 0:06:48.320 --> 0:06:50.880 pension plan, where you're supposed to invest for yourself. In 0:06:50.920 --> 0:06:54.000 some cases your employer matches those whatever, but basically that 0:06:54.040 --> 0:06:57.240 money goes into Wall Street, into mutual funds four one 0:06:57.320 --> 0:07:00.000 ks and they invest that for you. Now, this really 0:07:00.120 --> 0:07:03.599 took off in about the early eighties, and when all 0:07:03.760 --> 0:07:06.240 these boomers, when all these people started investing into the 0:07:06.240 --> 0:07:08.159 stock market through their four one k's in the eighties 0:07:08.160 --> 0:07:11.600 and the nineties, the stock market took off supply and demand, 0:07:11.840 --> 0:07:14.840 more people buying stocks. Of course, the prices go up. 0:07:15.000 --> 0:07:17.320 We saw four h one k adoption go from eight 0:07:17.360 --> 0:07:21.160 percent to thirty one percent in that time. Now, we 0:07:21.240 --> 0:07:25.200 saw the market completely taking off during that period, as 0:07:25.240 --> 0:07:28.280 you can see right here. From the eighties into the nineties, 0:07:28.560 --> 0:07:32.840 the markets exploded as all of these new investors came 0:07:32.880 --> 0:07:35.520 into the market. Here's the problem though, Now all of 0:07:35.520 --> 0:07:38.000 these new investors who don't really know what they're doing 0:07:38.000 --> 0:07:40.760 and shouldn't probably have their money in the market, got in, 0:07:40.960 --> 0:07:44.119 but when the market dropped down, all their wealth was lost. 0:07:44.360 --> 0:07:48.080 We saw their wealth drop down here into the two thousands, 0:07:48.080 --> 0:07:50.760 and then again in the two thousand and eight financial crash. Now, 0:07:50.840 --> 0:07:53.560 if you were one of those people that had your 0:07:53.800 --> 0:07:56.440 while your wealth, your assets in the stock market, hoping 0:07:56.440 --> 0:07:58.800 to retire from that, you were met with a bad surprise. 0:07:58.880 --> 0:08:01.000 You saw the market crash times in a row, and 0:08:01.080 --> 0:08:05.320 it took sixteen years just to get back to even Now, 0:08:05.320 --> 0:08:07.880 if you were trying to retire in that sixteen year period. 0:08:08.000 --> 0:08:10.440 It was pretty bad for you, which is why millions 0:08:10.480 --> 0:08:13.480 of Americans had to go back to work during this 0:08:13.600 --> 0:08:15.480 time period. The same time, I lost a lot of 0:08:15.480 --> 0:08:17.800 my wealth as well. All right, so this is what happened. Now. 0:08:17.840 --> 0:08:21.080 The other problem is that these are not really sophisticated investors, 0:08:21.080 --> 0:08:23.360 which of course why they give their money to Wall Street. 0:08:23.600 --> 0:08:26.280 The problem with that is, to part one, they don't 0:08:26.360 --> 0:08:30.040 understand the risk that they're taking. Number two, those Wall 0:08:30.040 --> 0:08:33.440 Street fund managers take a massive part of their wealth. 0:08:33.480 --> 0:08:35.880 It's a big deal, and it creates wealth in bubbles 0:08:36.160 --> 0:08:39.319 and not real assets. That's a big problem, part of 0:08:39.360 --> 0:08:40.880 the problem that got me into trouble as well. And 0:08:40.920 --> 0:08:45.000 then finally, your favorite subject of all, taxes, the two 0:08:45.040 --> 0:08:47.720 things in life that are unavoidable death and taxes, and 0:08:47.760 --> 0:08:49.800 of course we have taxes. Now. Part of this four 0:08:49.920 --> 0:08:53.319 h one K mutual fund scheme is that you can 0:08:53.400 --> 0:08:56.280 put your money into these and it can be tax deferred. 0:08:56.520 --> 0:08:58.839 A lot of your so called tax strategists think they're 0:08:58.880 --> 0:09:02.120 saving you money by having you divert money into a 0:09:02.160 --> 0:09:04.120 four one K so you don't have to pay tax 0:09:04.160 --> 0:09:07.559 on today lowering your taxable income, which seems like an 0:09:07.559 --> 0:09:10.760 OK plan on the surface level, except for there's a problem. 0:09:11.120 --> 0:09:14.400 The problem is that taxes have been at some of 0:09:14.440 --> 0:09:16.880 the lowest rates in history. As a matter of fact, 0:09:16.960 --> 0:09:18.640 we can take a look at this right here, and 0:09:18.720 --> 0:09:21.600 you can see from nineteen forty five where taxes were 0:09:21.880 --> 0:09:25.199 and they've been trending down ever since. And so if 0:09:25.240 --> 0:09:28.480 you had really high taxes and you thought maybe they'd 0:09:28.480 --> 0:09:31.320 be lower in the future, it might make sense to 0:09:31.400 --> 0:09:33.640 actually defer them till when they were lower in the future. 0:09:33.760 --> 0:09:36.760 The problem is, when we're already in the lowest part 0:09:36.800 --> 0:09:40.240 of taxes in history, most likely taxes are going up, 0:09:40.720 --> 0:09:43.200 why would you want to defer those taxes. And let's 0:09:43.240 --> 0:09:45.000 just take a look. Do you think taxes will be 0:09:45.040 --> 0:09:47.520 going up or down? What we can see here? This 0:09:47.600 --> 0:09:50.760 is in Canada. Trudeau says that he wants to increase 0:09:50.760 --> 0:09:55.880 capital gains taxes to sixty six percent. So now you've 0:09:55.880 --> 0:09:57.760 worked your whole life, you've put all your money into 0:09:57.800 --> 0:10:00.000 the four oh one k, now you're ready to get 0:10:00.120 --> 0:10:02.600 it out, and they want to take sixty six percent 0:10:02.600 --> 0:10:05.040 of your wealth and you probably haven't saved up enough already, 0:10:05.040 --> 0:10:07.319 And now that's Canada, of course, but what about the 0:10:07.400 --> 0:10:09.520 United States. Well, the Biden administration wants to do the 0:10:09.559 --> 0:10:13.160 same thing. He wants to height capital gains tax as well. 0:10:13.320 --> 0:10:16.760 Not quite as bad as Canada here only forty four 0:10:16.760 --> 0:10:20.640 point six percent, So you were deferring taxes that you 0:10:20.679 --> 0:10:23.280 could have paid when they were lower. And now when 0:10:23.280 --> 0:10:25.160 these boomers want to pull money out, they're going to 0:10:25.160 --> 0:10:27.440 be giving half of that back to the government. Half 0:10:27.520 --> 0:10:31.600 of the money that's already not enough. So that sounds bad, right, 0:10:31.840 --> 0:10:34.200 and it is, But it's not all doom and gloom 0:10:34.280 --> 0:10:37.560 because we have a plan. Question is what should we 0:10:37.640 --> 0:10:41.160 do about this? That's the question. Now there's the general information. 0:10:41.280 --> 0:10:43.000 Of course, you should make more money, and maybe you 0:10:43.000 --> 0:10:44.800 should save some money, and maybe you should save money 0:10:44.800 --> 0:10:46.719 at a faster rate. Sure we can talk about that, 0:10:47.040 --> 0:10:48.920 but that's not really going to help you out. Now. 0:10:49.000 --> 0:10:51.320 The key that you need to understand in this is 0:10:51.360 --> 0:10:54.199 that where I went wrong and where most of the 0:10:54.200 --> 0:10:55.920 boomers are going wrong in two thousand and eight and 0:10:56.000 --> 0:10:59.400 today as well, is in three core areas. I had 0:10:59.440 --> 0:11:00.880 to learn my life in the hard way, and I 0:11:00.920 --> 0:11:03.240 want to help you get it the easy way. So 0:11:03.600 --> 0:11:06.800 number one, the first way that I messed up and 0:11:06.840 --> 0:11:10.120 I had to learn. My lesson is that income is 0:11:10.280 --> 0:11:12.600 greater than assets. All right, This is where I messed up. 0:11:12.600 --> 0:11:14.880 In two thousand and eight. I had businesses that made 0:11:14.920 --> 0:11:17.440 a lot of cash flow. I had rental properties that 0:11:17.520 --> 0:11:19.720 made a lot of cash flow. And I sold my 0:11:19.800 --> 0:11:22.520 businesses and I sold my rental properties and I bought 0:11:22.520 --> 0:11:25.600 a bunch of assets. The problem is, it's cool having 0:11:25.600 --> 0:11:28.880 a bunch of assets, but turns out you need income 0:11:28.920 --> 0:11:31.640 to live off of. And when the real estate market 0:11:31.640 --> 0:11:34.080 turned down, when the markets crashed in two thousand and eight, 0:11:34.200 --> 0:11:37.400 my assets became worth less. But I had no cash 0:11:37.400 --> 0:11:39.760 flow to live off of. And I had no cash 0:11:39.840 --> 0:11:42.679 flow to pay for the debt service on the assets 0:11:42.679 --> 0:11:44.480 that I had. And because I had no cash flow, 0:11:44.520 --> 0:11:47.440 because I had no businesses anymore, the assets lost their value. 0:11:47.440 --> 0:11:49.520 I couldn't afford to keep them, and I got wiped out. 0:11:49.880 --> 0:11:52.680 What I learned is that income is what we need, 0:11:52.960 --> 0:11:55.640 not assets. Now baby omers are making the same problem. 0:11:55.920 --> 0:11:58.000 What they tell you is to get a good job 0:11:58.080 --> 0:12:02.800 and save for retirement. You're supposed to save your wealth 0:12:03.040 --> 0:12:05.920 and one day maybe your stock retirement account is worth 0:12:05.960 --> 0:12:08.760 one million dollars or three million dollars, whatever that is. 0:12:09.040 --> 0:12:11.480 There's all types of calculators that you can find online 0:12:11.480 --> 0:12:15.439 that will help you calculate the number that you need. However, 0:12:15.800 --> 0:12:20.079 the problem is that number is based off of an asset, okay, 0:12:20.200 --> 0:12:21.920 And the problem is they say, well, if you get 0:12:21.920 --> 0:12:25.080 one million dollars, you can withdraw up to four percent 0:12:25.200 --> 0:12:27.760 of that number per year. So the goal is that 0:12:27.760 --> 0:12:30.040 you're going to live off your savings. You're going to 0:12:30.080 --> 0:12:33.640 be draining your assets to live. But the problem is 0:12:33.720 --> 0:12:37.040 what happens if those assets become worth less money like 0:12:37.080 --> 0:12:40.240 I've just demonstrated, like I experienced in two thousand and eight, 0:12:40.320 --> 0:12:42.360 Like there's a very high probability of that happening. So 0:12:42.400 --> 0:12:45.560 the problem is the entire scheme that you've been sold 0:12:45.559 --> 0:12:49.120 of saving and living off of savings. Is broken income 0:12:49.280 --> 0:12:52.600 better than assets? Number two, we want to increase and 0:12:52.679 --> 0:12:55.360 not decrease. So the goal is that our assets should 0:12:55.360 --> 0:12:57.800 be increasing. The amount of wealth that we have is 0:12:57.880 --> 0:12:59.719 not currency, it's not money in the bank, it's a 0:13:00.000 --> 0:13:03.400 sets that we own. We want our assets to be increasing, 0:13:03.440 --> 0:13:06.360 not decreasing. So if you build up your assets your 0:13:06.400 --> 0:13:10.240 stock retirement account, and then you continually sell it off, 0:13:10.520 --> 0:13:13.480 live off of it, drain that piggybank. Your assets are 0:13:13.520 --> 0:13:17.160 decreasing now maybe hopefully it's enough for you to live 0:13:17.160 --> 0:13:18.720 off for the rest of your life, and then you 0:13:18.800 --> 0:13:21.280 die broke. We have nothing to pass on to your kids, 0:13:21.559 --> 0:13:24.079 your grandkids, whatever. Now a better way to do it. 0:13:24.120 --> 0:13:25.679 If I had cash flow, if I had assets a 0:13:25.760 --> 0:13:28.959 cash fload, those assets would continue to go up in value. 0:13:29.040 --> 0:13:31.440 I'm spending the cash flow being produced off of those 0:13:31.600 --> 0:13:34.240 while the assets are going higher. That way, when I die, 0:13:34.400 --> 0:13:37.040 my assets are worth even more, and my grandkids or 0:13:37.120 --> 0:13:38.800 kids get those. And this is the way that we 0:13:38.880 --> 0:13:42.920 create generational wealth and not just life span wealth. You see, 0:13:43.200 --> 0:13:46.400 the communists wants you to own nothing, Carl Mark said 0:13:46.440 --> 0:13:49.480 in the Communist Manifesto to summarize communism in one statement, 0:13:49.520 --> 0:13:52.840 is the abolition of private property. I just showed you 0:13:52.840 --> 0:13:56.800 the quote from Trudeau. He wants to stop this intergenerational 0:13:57.600 --> 0:14:01.000 transfer of wealth. Right. That's why death axes are so high. 0:14:01.280 --> 0:14:04.400 And so the entire scheme they've sold you of save 0:14:04.520 --> 0:14:07.520 for retirement and then spend your savings down is for 0:14:07.640 --> 0:14:11.120 you for your lifespan. Hopefully maybe you'll have enough money 0:14:11.200 --> 0:14:14.840 for your life span, whereas If you build cash flow, 0:14:14.960 --> 0:14:17.960 you're building it generationally because those assets will continue to 0:14:18.000 --> 0:14:20.800 increase in value and will pass on to your kids. 0:14:20.960 --> 0:14:25.120 Does that sound good? How exactly do we do that? 0:14:25.240 --> 0:14:27.040 Don't worry, I'm going to break it all down for 0:14:27.120 --> 0:14:31.080 you right here. Cash flow is basically income, right, We 0:14:31.200 --> 0:14:32.720 need cash flow to live. You got to pay your 0:14:32.760 --> 0:14:34.920 monthly bills, you've got to eat, et cetera. And so 0:14:35.040 --> 0:14:37.680 what we're really trying to do is we're trying to 0:14:37.800 --> 0:14:41.640 invest not just for assets, but assets that produce cash flow. 0:14:41.920 --> 0:14:44.000 And I got a very easy way you can do this. 0:14:44.400 --> 0:14:48.360 So it all starts with intention. What is it that 0:14:48.360 --> 0:14:52.160 I'm trying to achieve? How much income do I need? 0:14:52.200 --> 0:14:54.760 That's the first question. Now I just ask yourself to 0:14:54.800 --> 0:14:56.880 think about that. How much cashflow do you need? Now? 0:14:56.920 --> 0:14:58.640 Some people say I want a million dollars, I want 0:14:58.640 --> 0:15:00.920 ten million dollars, I want ten thousand a month, but 0:15:00.960 --> 0:15:03.200 they haven't really actually thought through what that is. Now, 0:15:03.560 --> 0:15:06.280 what I recommend is you need to figure out exactly 0:15:06.360 --> 0:15:08.400 what that is. If you wanted to go somewhere, if 0:15:08.440 --> 0:15:10.520 you want to go to dinner or go to your 0:15:10.520 --> 0:15:13.040 friend's house, you would need to know an address to 0:15:13.040 --> 0:15:15.600 put into your GPS. You don't say take me somewhere 0:15:15.600 --> 0:15:18.080 cool or take me to my friend's house. You need 0:15:18.120 --> 0:15:21.600 to put in an exact street number, an exact location. 0:15:21.720 --> 0:15:23.800 So we want to know our exact location. Now, you 0:15:23.840 --> 0:15:26.520 can just use an Excel spreadsheet or a Google doc 0:15:26.560 --> 0:15:28.600 if you want, and you can just kind of follow along. 0:15:28.640 --> 0:15:31.240 I'd recommend that you do this exercise if you want 0:15:31.320 --> 0:15:33.120 this has I have a calculator and stuff. You can 0:15:33.160 --> 0:15:34.960 get it for free right here. You can just scan 0:15:35.040 --> 0:15:37.000 this with your phone, download it for free, or you 0:15:37.000 --> 0:15:39.560 can build your own. Take you ten to fifteen minutes. Okay, 0:15:39.680 --> 0:15:41.840 So the first thing is there's two numbers that we 0:15:41.880 --> 0:15:43.880 want to get. The first number that we want to 0:15:43.920 --> 0:15:48.280 get is what is our minimum monthly expenses? So how 0:15:48.400 --> 0:15:51.120 much does it take for you to not be homeless? 0:15:51.600 --> 0:15:55.400 What's your rent or house payment, your basic bills, electricity bill, 0:15:55.400 --> 0:15:57.800 gas bill, water bill, et cetera, and like a minimum 0:15:57.840 --> 0:15:59.480 amount of like food, what does it take for you 0:15:59.520 --> 0:16:02.960 to not be homeless like the fifty percent of elderly people, 0:16:02.960 --> 0:16:05.120 because that's the goal number one, don't be homeless? So 0:16:05.160 --> 0:16:07.120 how much is that? Is it? Two thousand a month? 0:16:07.200 --> 0:16:09.560 Five thousand a month, ten thousand a month. Add that up. 0:16:09.640 --> 0:16:13.200 Here's my rent, here's my electricity bill, here's my gas, 0:16:13.480 --> 0:16:17.000 my cell phone, et cetera. What is that number? That 0:16:17.120 --> 0:16:20.080 number is probably going to be lower than the next 0:16:20.160 --> 0:16:22.720 number that I want to get is what's my ideal number? 0:16:22.760 --> 0:16:25.360 Because for me, just being homeless isn't enough, right. I 0:16:25.400 --> 0:16:27.440 want to be able to continue to live my life. 0:16:27.520 --> 0:16:30.600 And so what's that second number. What's my ideal number? Well, 0:16:31.040 --> 0:16:34.200 I'd like to be able to take two vacations a year. Okay, great, 0:16:34.200 --> 0:16:37.400 how much are those five thousand each? Okay, ten thousand dollars? Okay, 0:16:37.400 --> 0:16:39.080 So then break that down eight hundred bucks a month. 0:16:39.240 --> 0:16:40.640 I'd like to be able to get a new car 0:16:40.680 --> 0:16:42.600 every three years. Okay, how much is that? Well, I'm 0:16:42.600 --> 0:16:44.160 going to need a ten thousand dollars down payment. Okay, 0:16:44.160 --> 0:16:46.240 divide that by three years. Write that down. So then 0:16:46.240 --> 0:16:48.840 you have your minimum number, and then you have your 0:16:48.920 --> 0:16:51.280 ideal number. Now, if you're a boomer, one thing you 0:16:51.280 --> 0:16:53.640 have to keep into consideration is, as you can see 0:16:53.640 --> 0:16:56.640 from this headline right here, that you can expect to 0:16:56.680 --> 0:17:00.640 spend way more on healthcare and retirement even if you're 0:17:01.040 --> 0:17:03.680 very healthy. According to what this article says, A sixty 0:17:03.720 --> 0:17:05.560 five year old couple retiring this year will need two 0:17:05.640 --> 0:17:09.720 hundred and seventy five thousand dollars just for medical expenses, 0:17:09.720 --> 0:17:11.520 so make sure to add that in. That's going to 0:17:11.560 --> 0:17:14.040 be I don't know, roughly one thousand dollars a month. 0:17:14.080 --> 0:17:16.400 They're going need to add in to whatever your expenses are. 0:17:16.440 --> 0:17:18.560 So step number one is write down what is your 0:17:18.600 --> 0:17:22.080 minimum expenses and then your ideal expenses. Step number two 0:17:22.600 --> 0:17:25.000 is that now that we know how much income, how 0:17:25.080 --> 0:17:28.000 much cashflow, we need our minimum number and our ideal number. 0:17:28.240 --> 0:17:31.080 The next thing is we have to decide how much 0:17:31.280 --> 0:17:34.679 money we're making now and how much of that money 0:17:34.720 --> 0:17:38.360 is coming passively through investments versus I have to work 0:17:38.400 --> 0:17:40.000 for because the goal is to retire and I don't 0:17:40.040 --> 0:17:42.320 have to work anymore. So now I would write down 0:17:42.480 --> 0:17:46.520 what is my monthly earned income. So my main job 0:17:47.000 --> 0:17:50.000 I make this, Maybe my wife works, or I have 0:17:50.040 --> 0:17:52.600 a second job, I write that down. Maybe I have 0:17:52.640 --> 0:17:55.560 a side hustle, maybe I do things on the weekend 0:17:55.680 --> 0:17:58.600 or something like that. So whatever things you're working for, 0:17:58.640 --> 0:18:00.480 whatever earned income is you want, I want to write 0:18:00.520 --> 0:18:03.280 those numbers down right here, and then the next thing 0:18:03.320 --> 0:18:06.720 you want to write down is how much passive income 0:18:06.760 --> 0:18:08.960 do you have coming in? Right, So, if you have 0:18:09.000 --> 0:18:11.840 a rental property, if you have a rate in your 0:18:11.840 --> 0:18:15.280 stock account, if you own bonds that pay you out, coupons, 0:18:15.640 --> 0:18:17.760 anything like that. So you have a rental property, you 0:18:17.760 --> 0:18:20.440 have an ETF that pays you out, you have bonds, treasuries, 0:18:20.480 --> 0:18:24.320 government bonds, anything that you own that's paying you passive income. 0:18:24.640 --> 0:18:28.000 Write that down and total that up as well. Okay, 0:18:28.280 --> 0:18:30.480 so we're trying to get a good picture. Don't worry. 0:18:30.480 --> 0:18:33.320 I'm going to show you how we can close this gap. 0:18:33.320 --> 0:18:35.440 All right. So's that's where goet, But we first have 0:18:35.520 --> 0:18:37.440 to figure out where we want to go. Number one 0:18:37.520 --> 0:18:39.760 the number, and number two where we're at Again. You 0:18:39.800 --> 0:18:41.640 can just do this on any Excel spreadsheet, a piece 0:18:41.640 --> 0:18:43.679 of paper with a pencil, or if you want, you 0:18:43.680 --> 0:18:45.919 can get this free download and the calculator here if 0:18:45.920 --> 0:18:48.600 you want to grab that as well. All right, now, 0:18:48.960 --> 0:18:51.880 once we have those numbers, I like to look at 0:18:51.880 --> 0:18:53.959 it through this calculator again, which is why you can 0:18:53.960 --> 0:18:55.560 get this for free if you want, but if not, 0:18:55.640 --> 0:18:57.800 just do your own math. The reason why I want 0:18:57.840 --> 0:18:59.359