Speaker 1: If you're a baby boomer or even someone planning to
Speaker 1: retire within the next few years, then you need to
Speaker 1: be watching this now. As somebody who built an eight
Speaker 1: figure real estate portfolio, had two high value business exits,
Speaker 1: and was retired before the age of thirty, I thought
Speaker 1: I had it all figured out until I got completely
Speaker 1: wiped out in the two thousand and eight financial crisis.
Speaker 1: Now I've had to learn some important lessons the hard way,
Speaker 1: but those lessons made it easier for me to build
Speaker 1: and protect my wealth the second time around. So in
Speaker 1: this video, I'm gonna explain exactly what you need to
Speaker 1: be paying attention to if you plan to retire in
Speaker 1: the next few years. So let's get into it, all right.
Speaker 1: Welcome to the channel. If you're new, my name is
Speaker 1: Mark Moss. I make these videos to change the way
Speaker 1: you think about money. And you know, as I say,
Speaker 1: everything you've learned is wrong and unfortunately, I want to
Speaker 1: put things into perspective for you real quick before we
Speaker 1: get into the lesson, because things are looking pretty bad
Speaker 1: going into twenty twenty. So let me give you a
Speaker 1: couple of reasons why you need to be paying attention
Speaker 1: to this. First number one, baby boomers, the boomers. Maybe
Speaker 1: you looking to retire in the next few years. Now,
Speaker 1: you've been told to get a good job, save for retirement,
Speaker 1: and one day you'd live your dream. Right. Well, unfortunately
Speaker 1: that dream is not coming true. As a matter of fact,
Speaker 1: today fifty percent of baby boomers looking to retire have
Speaker 1: zero savings, so that's not going to work out too
Speaker 1: well for them. Fifty percent have zero savings. Of the
Speaker 1: ones who do have savings, the average amount saved is
Speaker 1: about one hundred thousand dollars. Now that might sound a lot,
Speaker 1: maybe if you live in a foreign country. In the
Speaker 1: United States, the average amount needed by a baby boomer
Speaker 1: is about fifty seven thousand, So that's not going to
Speaker 1: get you too far. Now, this leads to a massive problem,
Speaker 1: one of which is that, as I said, because they
Speaker 1: have no savings, what are they going to do? Now
Speaker 1: what we can see this is a big problem. As
Speaker 1: a matter of fact, baby boomers in America are becoming homeless.
Speaker 1: They're not just becoming homeless, they're becoming homeless at the
Speaker 1: fastest pace in history. We can see right here the
Speaker 1: staggering numbers behind this that single adults in the ninety
Speaker 1: these homeless single adultsa nineties was only eleven percent, but
Speaker 1: by two thousand and three it grew to thirty seven percent.
Speaker 1: That's a big deal from eleven to thirty seven. But
Speaker 1: now it says that half of the homeless people are
Speaker 1: boomers half fifty percent. So this is a big problem.
Speaker 1: If you're not being prepared for this, you're going to
Speaker 1: be caught off guard. That's number one, no savings. Number
Speaker 1: two social security. A lot of boomers and just people
Speaker 1: in general maybe think they didn't need the savings because
Speaker 1: they'd have Social Security to take care of them. Of Course,
Speaker 1: social Security is the government, and the government doesn't have
Speaker 1: any money. Now, the government put the Social Security Act
Speaker 1: in place. FDR did that in nineteen thirty five. Now,
Speaker 1: it was originally created in a way that was pay
Speaker 1: as you go, meaning you put money in, they invest
Speaker 1: that money for you, and one day, when you're old,
Speaker 1: hopefully they give you the money back. However, something changed
Speaker 1: before we get to that. Let me just tell you
Speaker 1: it worked really well. At that point. In nineteen fifty nine,
Speaker 1: the poverty rate in elderly people was thirty five percent.
Speaker 1: By putting the Social Security program into place, that poverty
Speaker 1: dropped from thirty five percent down to eleven percent. It
Speaker 1: worked really well, but something changed in the nineteen eighties.
Speaker 1: President Ronald Reagan decided that maybe we'll just borrow from
Speaker 1: that piggy bank a little bit. Maybe we'll take some
Speaker 1: of that money put aside for SOCD Security because they
Speaker 1: don't need it right now, and we'll use it for
Speaker 1: things like wars, other government pet projects, things like that.
Speaker 1: And it wasn't just Reagan, it was every other president
Speaker 1: after that. The problem is today is the SoC Security
Speaker 1: is no longer a piggy bank. It's no longer a
Speaker 1: pay as you go. It's now what we call a
Speaker 1: Ponzi scheme. The problem is that with a Ponzi scheme,
Speaker 1: if you have a lot of people paying in and
Speaker 1: a few people pulling out, that's okay. But when those
Speaker 1: numbers reverse, it becomes a big problem. And that's exactly
Speaker 1: what we've seen happening. You can see here's a chart
Speaker 1: of the birth rates, and so here is nineteen fifty,
Speaker 1: we were having about almost three point seventy five kids
Speaker 1: per couple, but the birth rate has completely lapsed. As
Speaker 1: a matter of fact, right here at two point one
Speaker 1: is the level that a civilization needs to sustain itself
Speaker 1: two point one kids per couple, and as you can see,
Speaker 1: we are well below that level. As a matter of fact,
Speaker 1: we are at one point six today. We're not sustaining
Speaker 1: our own civilization, which is why you see Elon Musk
Speaker 1: saying that depopulation is probably the number one problem we're
Speaker 1: facing in the world today. This is all over the West,
Speaker 1: this is happening. Now, that's a whole another topic for
Speaker 1: another video. If you want that, leave me a comment
Speaker 1: down below. But the point that we're talking about here
Speaker 1: is back here in the fifties, when social security was
Speaker 1: working really well, you had a lot of people paying in.
Speaker 1: Today you have the largest segment of the population, the
Speaker 1: baby boomers, and you have almost no not even enough
Speaker 1: birth to sustain a civilization, much less pay into that
Speaker 1: social security. That's a big problem. Another problem that we
Speaker 1: have is massive immigration, as you're aware of, of course,
Speaker 1: millions of people coming into the country, and you know,
Speaker 1: they've decided that these immigrants that come into the country
Speaker 1: that haven't worked their whole life to pay into the
Speaker 1: Ponzi scheme, are able to get money out. As a
Speaker 1: matter of fact, from this working paper, right here. You
Speaker 1: can google that if you want. Under the current rules,
Speaker 1: immigrant workers realize a higher rate of return on their
Speaker 1: Social Security than natural born citizens. And so now we
Speaker 1: have increased amount of people pulling from it, not just
Speaker 1: the boomers, now immigrants, and we don't have enough people
Speaker 1: pulling in paying into the program, which is why it's negative.
Speaker 1: And it's scheduled to run out in less than ten
Speaker 1: years now that's what the government says. It is probably
Speaker 1: going to run out even faster. So I wouldn't be
Speaker 1: counting on that if that was your retirement plan. All right,
Speaker 1: I want to take a break real quick just to
Speaker 1: let you know that if you're sick of the global
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Speaker 1: and I hope to see you there. Okay. Next we
Speaker 1: have the four oh one K and the pensions. Now,
Speaker 1: back in the day, big businesses used to save your
Speaker 1: money for you and they'd pay you back later. Of course,
Speaker 1: those days are long gone, and so we introduce what's
Speaker 1: called a four oh one K or now your own
Speaker 1: pension plan, where you're supposed to invest for yourself. In
Speaker 1: some cases your employer matches those whatever, but basically that
Speaker 1: money goes into Wall Street, into mutual funds four one
Speaker 1: ks and they invest that for you. Now, this really
Speaker 1: took off in about the early eighties, and when all
Speaker 1: these boomers, when all these people started investing into the
Speaker 1: stock market through their four one k's in the eighties
Speaker 1: and the nineties, the stock market took off supply and demand,
Speaker 1: more people buying stocks. Of course, the prices go up.
Speaker 1: We saw four h one k adoption go from eight
Speaker 1: percent to thirty one percent in that time. Now, we
Speaker 1: saw the market completely taking off during that period, as
Speaker 1: you can see right here. From the eighties into the nineties,
Speaker 1: the markets exploded as all of these new investors came
Speaker 1: into the market. Here's the problem though, Now all of
Speaker 1: these new investors who don't really know what they're doing
Speaker 1: and shouldn't probably have their money in the market, got in,
Speaker 1: but when the market dropped down, all their wealth was lost.
Speaker 1: We saw their wealth drop down here into the two thousands,
Speaker 1: and then again in the two thousand and eight financial crash. Now,
Speaker 1: if you were one of those people that had your
Speaker 1: while your wealth, your assets in the stock market, hoping
Speaker 1: to retire from that, you were met with a bad surprise.
Speaker 1: You saw the market crash times in a row, and
Speaker 1: it took sixteen years just to get back to even Now,
Speaker 1: if you were trying to retire in that sixteen year period.
Speaker 1: It was pretty bad for you, which is why millions
Speaker 1: of Americans had to go back to work during this
Speaker 1: time period. The same time, I lost a lot of
Speaker 1: my wealth as well. All right, so this is what happened. Now.
Speaker 1: The other problem is that these are not really sophisticated investors,
Speaker 1: which of course why they give their money to Wall Street.
Speaker 1: The problem with that is, to part one, they don't
Speaker 1: understand the risk that they're taking. Number two, those Wall
Speaker 1: Street fund managers take a massive part of their wealth.
Speaker 1: It's a big deal, and it creates wealth in bubbles
Speaker 1: and not real assets. That's a big problem, part of
Speaker 1: the problem that got me into trouble as well. And
Speaker 1: then finally, your favorite subject of all, taxes, the two
Speaker 1: things in life that are unavoidable death and taxes, and
Speaker 1: of course we have taxes. Now. Part of this four
Speaker 1: h one K mutual fund scheme is that you can
Speaker 1: put your money into these and it can be tax deferred.
Speaker 1: A lot of your so called tax strategists think they're
Speaker 1: saving you money by having you divert money into a
Speaker 1: four one K so you don't have to pay tax
Speaker 1: on today lowering your taxable income, which seems like an
Speaker 1: OK plan on the surface level, except for there's a problem.
Speaker 1: The problem is that taxes have been at some of
Speaker 1: the lowest rates in history. As a matter of fact,
Speaker 1: we can take a look at this right here, and
Speaker 1: you can see from nineteen forty five where taxes were
Speaker 1: and they've been trending down ever since. And so if
Speaker 1: you had really high taxes and you thought maybe they'd
Speaker 1: be lower in the future, it might make sense to
Speaker 1: actually defer them till when they were lower in the future.
Speaker 1: The problem is, when we're already in the lowest part
Speaker 1: of taxes in history, most likely taxes are going up,
Speaker 1: why would you want to defer those taxes. And let's
Speaker 1: just take a look. Do you think taxes will be
Speaker 1: going up or down? What we can see here? This
Speaker 1: is in Canada. Trudeau says that he wants to increase
Speaker 1: capital gains taxes to sixty six percent. So now you've
Speaker 1: worked your whole life, you've put all your money into
Speaker 1: the four oh one k, now you're ready to get
Speaker 1: it out, and they want to take sixty six percent
Speaker 1: of your wealth and you probably haven't saved up enough already,
Speaker 1: And now that's Canada, of course, but what about the
Speaker 1: United States. Well, the Biden administration wants to do the
Speaker 1: same thing. He wants to height capital gains tax as well.
Speaker 1: Not quite as bad as Canada here only forty four
Speaker 1: point six percent, So you were deferring taxes that you
Speaker 1: could have paid when they were lower. And now when
Speaker 1: these boomers want to pull money out, they're going to
Speaker 1: be giving half of that back to the government. Half
Speaker 1: of the money that's already not enough. So that sounds bad, right,
Speaker 1: and it is, But it's not all doom and gloom
Speaker 1: because we have a plan. Question is what should we
Speaker 1: do about this? That's the question. Now there's the general information.
Speaker 1: Of course, you should make more money, and maybe you
Speaker 1: should save some money, and maybe you should save money
Speaker 1: at a faster rate. Sure we can talk about that,
Speaker 1: but that's not really going to help you out. Now.
Speaker 1: The key that you need to understand in this is
Speaker 1: that where I went wrong and where most of the
Speaker 1: boomers are going wrong in two thousand and eight and
Speaker 1: today as well, is in three core areas. I had
Speaker 1: to learn my life in the hard way, and I
Speaker 1: want to help you get it the easy way. So
Speaker 1: number one, the first way that I messed up and
Speaker 1: I had to learn. My lesson is that income is
Speaker 1: greater than assets. All right, This is where I messed up.
Speaker 1: In two thousand and eight. I had businesses that made
Speaker 1: a lot of cash flow. I had rental properties that
Speaker 1: made a lot of cash flow. And I sold my
Speaker 1: businesses and I sold my rental properties and I bought
Speaker 1: a bunch of assets. The problem is, it's cool having
Speaker 1: a bunch of assets, but turns out you need income
Speaker 1: to live off of. And when the real estate market
Speaker 1: turned down, when the markets crashed in two thousand and eight,
Speaker 1: my assets became worth less. But I had no cash
Speaker 1: flow to live off of. And I had no cash
Speaker 1: flow to pay for the debt service on the assets
Speaker 1: that I had. And because I had no cash flow,
Speaker 1: because I had no businesses anymore, the assets lost their value.
Speaker 1: I couldn't afford to keep them, and I got wiped out.
Speaker 1: What I learned is that income is what we need,
Speaker 1: not assets. Now baby omers are making the same problem.
Speaker 1: What they tell you is to get a good job
Speaker 1: and save for retirement. You're supposed to save your wealth
Speaker 1: and one day maybe your stock retirement account is worth
Speaker 1: one million dollars or three million dollars, whatever that is.
Speaker 1: There's all types of calculators that you can find online
Speaker 1: that will help you calculate the number that you need. However,
Speaker 1: the problem is that number is based off of an asset, okay,
Speaker 1: And the problem is they say, well, if you get
Speaker 1: one million dollars, you can withdraw up to four percent
Speaker 1: of that number per year. So the goal is that
Speaker 1: you're going to live off your savings. You're going to
Speaker 1: be draining your assets to live. But the problem is
Speaker 1: what happens if those assets become worth less money like
Speaker 1: I've just demonstrated, like I experienced in two thousand and eight,
Speaker 1: Like there's a very high probability of that happening. So
Speaker 1: the problem is the entire scheme that you've been sold
Speaker 1: of saving and living off of savings. Is broken income
Speaker 1: better than assets? Number two, we want to increase and
Speaker 1: not decrease. So the goal is that our assets should
Speaker 1: be increasing. The amount of wealth that we have is
Speaker 1: not currency, it's not money in the bank, it's a
Speaker 1: sets that we own. We want our assets to be increasing,
Speaker 1: not decreasing. So if you build up your assets your
Speaker 1: stock retirement account, and then you continually sell it off,
Speaker 1: live off of it, drain that piggybank. Your assets are
Speaker 1: decreasing now maybe hopefully it's enough for you to live
Speaker 1: off for the rest of your life, and then you
Speaker 1: die broke. We have nothing to pass on to your kids,
Speaker 1: your grandkids, whatever. Now a better way to do it.
Speaker 1: If I had cash flow, if I had assets a
Speaker 1: cash fload, those assets would continue to go up in value.
Speaker 1: I'm spending the cash flow being produced off of those
Speaker 1: while the assets are going higher. That way, when I die,
Speaker 1: my assets are worth even more, and my grandkids or
Speaker 1: kids get those. And this is the way that we
Speaker 1: create generational wealth and not just life span wealth. You see,
Speaker 1: the communists wants you to own nothing, Carl Mark said
Speaker 1: in the Communist Manifesto to summarize communism in one statement,
Speaker 1: is the abolition of private property. I just showed you
Speaker 1: the quote from Trudeau. He wants to stop this intergenerational
Speaker 1: transfer of wealth. Right. That's why death axes are so high.
Speaker 1: And so the entire scheme they've sold you of save
Speaker 1: for retirement and then spend your savings down is for
Speaker 1: you for your lifespan. Hopefully maybe you'll have enough money
Speaker 1: for your life span, whereas If you build cash flow,
Speaker 1: you're building it generationally because those assets will continue to
Speaker 1: increase in value and will pass on to your kids.
Speaker 1: Does that sound good? How exactly do we do that?
Speaker 1: Don't worry, I'm going to break it all down for
Speaker 1: you right here. Cash flow is basically income, right, We
Speaker 1: need cash flow to live. You got to pay your
Speaker 1: monthly bills, you've got to eat, et cetera. And so
Speaker 1: what we're really trying to do is we're trying to
Speaker 1: invest not just for assets, but assets that produce cash flow.
Speaker 1: And I got a very easy way you can do this.
Speaker 1: So it all starts with intention. What is it that
Speaker 1: I'm trying to achieve? How much income do I need?
Speaker 1: That's the first question. Now I just ask yourself to
Speaker 1: think about that. How much cashflow do you need? Now?
Speaker 1: Some people say I want a million dollars, I want
Speaker 1: ten million dollars, I want ten thousand a month, but
Speaker 1: they haven't really actually thought through what that is. Now,
Speaker 1: what I recommend is you need to figure out exactly
Speaker 1: what that is. If you wanted to go somewhere, if
Speaker 1: you want to go to dinner or go to your
Speaker 1: friend's house, you would need to know an address to
Speaker 1: put into your GPS. You don't say take me somewhere
Speaker 1: cool or take me to my friend's house. You need
Speaker 1: to put in an exact street number, an exact location.
Speaker 1: So we want to know our exact location. Now, you
Speaker 1: can just use an Excel spreadsheet or a Google doc
Speaker 1: if you want, and you can just kind of follow along.
Speaker 1: I'd recommend that you do this exercise if you want
Speaker 1: this has I have a calculator and stuff. You can
Speaker 1: get it for free right here. You can just scan
Speaker 1: this with your phone, download it for free, or you
Speaker 1: can build your own. Take you ten to fifteen minutes. Okay,
Speaker 1: So the first thing is there's two numbers that we
Speaker 1: want to get. The first number that we want to
Speaker 1: get is what is our minimum monthly expenses? So how
Speaker 1: much does it take for you to not be homeless?
Speaker 1: What's your rent or house payment, your basic bills, electricity bill,
Speaker 1: gas bill, water bill, et cetera, and like a minimum
Speaker 1: amount of like food, what does it take for you
Speaker 1: to not be homeless like the fifty percent of elderly people,
Speaker 1: because that's the goal number one, don't be homeless? So
Speaker 1: how much is that? Is it? Two thousand a month?
Speaker 1: Five thousand a month, ten thousand a month. Add that up.
Speaker 1: Here's my rent, here's my electricity bill, here's my gas,
Speaker 1: my cell phone, et cetera. What is that number? That
Speaker 1: number is probably going to be lower than the next
Speaker 1: number that I want to get is what's my ideal number?
Speaker 1: Because for me, just being homeless isn't enough, right. I
Speaker 1: want to be able to continue to live my life.
Speaker 1: And so what's that second number. What's my ideal number? Well,
Speaker 1: I'd like to be able to take two vacations a year. Okay, great,
Speaker 1: how much are those five thousand each? Okay, ten thousand dollars? Okay,
Speaker 1: So then break that down eight hundred bucks a month.
Speaker 1: I'd like to be able to get a new car
Speaker 1: every three years. Okay, how much is that? Well, I'm
Speaker 1: going to need a ten thousand dollars down payment. Okay,
Speaker 1: divide that by three years. Write that down. So then
Speaker 1: you have your minimum number, and then you have your
Speaker 1: ideal number. Now, if you're a boomer, one thing you
Speaker 1: have to keep into consideration is, as you can see
Speaker 1: from this headline right here, that you can expect to
Speaker 1: spend way more on healthcare and retirement even if you're
Speaker 1: very healthy. According to what this article says, A sixty
Speaker 1: five year old couple retiring this year will need two
Speaker 1: hundred and seventy five thousand dollars just for medical expenses,
Speaker 1: so make sure to add that in. That's going to
Speaker 1: be I don't know, roughly one thousand dollars a month.
Speaker 1: They're going need to add in to whatever your expenses are.
Speaker 1: So step number one is write down what is your
Speaker 1: minimum expenses and then your ideal expenses. Step number two
Speaker 1: is that now that we know how much income, how
Speaker 1: much cashflow, we need our minimum number and our ideal number.
Speaker 1: The next thing is we have to decide how much
Speaker 1: money we're making now and how much of that money
Speaker 1: is coming passively through investments versus I have to work
Speaker 1: for because the goal is to retire and I don't
Speaker 1: have to work anymore. So now I would write down
Speaker 1: what is my monthly earned income. So my main job
Speaker 1: I make this, Maybe my wife works, or I have
Speaker 1: a second job, I write that down. Maybe I have
Speaker 1: a side hustle, maybe I do things on the weekend
Speaker 1: or something like that. So whatever things you're working for,
Speaker 1: whatever earned income is you want, I want to write
Speaker 1: those numbers down right here, and then the next thing
Speaker 1: you want to write down is how much passive income
Speaker 1: do you have coming in? Right, So, if you have
Speaker 1: a rental property, if you have a rate in your
Speaker 1: stock account, if you own bonds that pay you out, coupons,
Speaker 1: anything like that. So you have a rental property, you
Speaker 1: have an ETF that pays you out, you have bonds, treasuries,
Speaker 1: government bonds, anything that you own that's paying you passive income.
Speaker 1: Write that down and total that up as well. Okay,
Speaker 1: so we're trying to get a good picture. Don't worry.
Speaker 1: I'm going to show you how we can close this gap.
Speaker 1: All right. So's that's where goet, But we first have
Speaker 1: to figure out where we want to go. Number one
Speaker 1: the number, and number two where we're at Again. You
Speaker 1: can just do this on any Excel spreadsheet, a piece
Speaker 1: of paper with a pencil, or if you want, you
Speaker 1: can get this free download and the calculator here if
Speaker 1: you want to grab that as well. All right, now,
Speaker 1: once we have those numbers, I like to look at
Speaker 1: it through this calculator again, which is why you can
Speaker 1: get this for free if you want, but if not,
Speaker 1: just do your own math. The reason why I want
Speaker 1: to look at like this is because I want to
Speaker 1: be able to see visually what the delta is, what
Speaker 1: the difference is between where my goal is and where
Speaker 1: I'm at. So once I've put these hypothetical numbers in,
Speaker 1: I can see, here's the total amount of earned income
Speaker 1: that I have twelve five hundred, and here's the total
Speaker 1: amount of passive income I have, let's say six thousand,
Speaker 1: all right, and it shows me the gap. This is
Speaker 1: what I need to close. This will quickly give me
Speaker 1: a summary of those numbers, and it will tell me
Speaker 1: what my surplus is every month. What happens is once
Speaker 1: we've determined our goal and we start to track our goal,
Speaker 1: then it sort of gamifies the situation. Then it's like, ooh,
Speaker 1: I've just added an extra fifty dollars a month. Oh
Speaker 1: I've added an extra one hundred dollars a month. Now
Speaker 1: what seems overwhelming? They say, you know, how do you
Speaker 1: eat an elephant one bite at a time. Well, it
Speaker 1: might seem overwhelming to get that five thousand a month
Speaker 1: or ten thousand a month that you need, and it
Speaker 1: is if you look at that big number. But if
Speaker 1: you just think about it, it's like, can I add
Speaker 1: one hundred bucks? Can I add one hundred bucks a month?
Speaker 1: Can I add an extra two to fifty? As you
Speaker 1: start making progress, you start to pick up momentum and steam,
Speaker 1: and it starts to make it more fun. So it
Speaker 1: gamifies the situation, which is why I like to look
Speaker 1: at it. In some sort of a tracking system like this.
Speaker 1: They say, well gets measure gets managed. And so you
Speaker 1: want to measure your progress to the goal. Okay, So
Speaker 1: now you understand the game. You understand where you want
Speaker 1: to go, but your minimum monthly expenses or your income,
Speaker 1: let's just write that here. Now you understand your target.
Speaker 1: Let's make a target out of this, and you understand
Speaker 1: where you're at here, so you are here. Okay. So
Speaker 1: now we know these two numbers. Now you might go mark.
Speaker 1: You just make me feel more depressed, because holy crap,
Speaker 1: I need a bunch of income and I have none. Okay,
Speaker 1: no worries. Let's make a plan. So now we know
Speaker 1: these two things. The goal is now we just have
Speaker 1: to build the bridge. Okay, So how do we do that?
Speaker 1: That's the next step. So there's three ways that we
Speaker 1: can do this, all right, Three ways we can build
Speaker 1: the bridge and speed up that bridge production. Number one,
Speaker 1: we have to have capital. We have to have money
Speaker 1: because we have to buy the cash flow, all right,
Speaker 1: we have to buy the cash flow. Number two, it's
Speaker 1: the rate of return that we get on that cash flow.
Speaker 1: So if I can make five percent or I make
Speaker 1: twenty five percent, and then the third is I have time.
Speaker 1: These are the three levers that will determine how long
Speaker 1: it takes to build a bridge and will allow us
Speaker 1: to speed up that bridge crossing even if you have
Speaker 1: no passive income. Today, most people that I've worked with
Speaker 1: have been able to achieve this in just a couple
Speaker 1: of years. All right, So these are the three levers, capital,
Speaker 1: returns and time. Let me give you an example again.
Speaker 1: If you want this calculator worksheet, you can download completely
Speaker 1: for free right here. Just scan that QR code. It's
Speaker 1: also linked in the show notes down below, or just
Speaker 1: do it on a piece of paper. But I highly
Speaker 1: recommend you writing this down. Study down by Harvard NBA
Speaker 1: showed that less than three percent of people had written
Speaker 1: down goals when they went into the Harvard NBA program,
Speaker 1: and those three percent of people that had written down
Speaker 1: goals outperformed the ninety seven percent by like ten times.
Speaker 1: Very important to write this stuff down. So even if
Speaker 1: it's a pen and paper, do it. We'll put into
Speaker 1: a spreadsheet you can track it regularly. Okay, So let
Speaker 1: me show you what I'm talking about here. Let's just
Speaker 1: say hypothetically, you need one hundred thousand dollars a year
Speaker 1: of cash low. Right, that's what it takes for you
Speaker 1: to live about eight grand a month. Okay, how do
Speaker 1: you do that? So we have to buy the cash flow? Right,
Speaker 1: So if you have two million dollars and you can
Speaker 1: invest that at a five percent rate of return, like
Speaker 1: buying US treasuries right now, risk free rate about five percent,
Speaker 1: it would take you two million dollars to get the
Speaker 1: one hundred thousand dollars a year of passive income. Now
Speaker 1: you might say, Mark, now you're scaring me even more
Speaker 1: because I need that and I don't have anywhere near
Speaker 1: two hundred thousand dollars. Okay, Well, you can do the
Speaker 1: same thing with five hundred thousand dollars if you're able
Speaker 1: to earn twenty percent. Right. So these are the levers.
Speaker 1: I have the amount of capital requires, I have their
Speaker 1: rate of return, and then I also have the time.
Speaker 1: So what do I mean by the time, Well, the
Speaker 1: time is the rule of seventy two. You take seventy
Speaker 1: two divided by the rate you're able to receive back
Speaker 1: the yield, and that shows you how long it takes
Speaker 1: to double your money. So let's say you need two million,
Speaker 1: but you only have one million, and you can make
Speaker 1: about a seven percent return. Well, you can just wait
Speaker 1: seven ten years and you'll double your money and you'll
Speaker 1: have the two million. We'll get into that a little
Speaker 1: bit greater detail here in a second, but you can
Speaker 1: understand I either need more capital, or I need a
Speaker 1: better rate of return, or I have to wait more time.
Speaker 1: All right, we can spend a lot of time, because
Speaker 1: now the next question is what types of investments can
Speaker 1: I make to earn these types of yields, what other
Speaker 1: risks that I have? And then how do I calculate
Speaker 1: what the timeframe is? Now, what I've found is that
Speaker 1: it's much easier to wait when I know how long
Speaker 1: I have to wait. Lately, at the gym, I've been
Speaker 1: doing this exercise where I just hang from a bar
Speaker 1: for like sixty seconds, which sounds pretty easy, And if
Speaker 1: I can look at the clock and watch it count down,
Speaker 1: I can do it no problem. But when I'm not watching,
Speaker 1: the clock gets very hard to hang on. I don't
Speaker 1: know how long I have to go. And so when
Speaker 1: you build out this plan in detail and you know
Speaker 1: exactly how long it's going to take you to achieve
Speaker 1: these milestones, it becomes much easier. But that's more than
Speaker 1: I can cover in this video. But I got you.
Speaker 1: I have another video, completely free that you can watch
Speaker 1: why I break all this down and greater detail, and
Speaker 1: I'm gonna link it right here. It's not listed on
Speaker 1: my main YouTube channel. It's just for you because you
Speaker 1: made it to the end of this video. There's a
Speaker 1: link in the description down below, or you can watch
Speaker 1: it up there if you want to watch it. And
Speaker 1: that's what we got. Hopefully this makes sense to you.
Speaker 1: You got to do something. You can't rely on the
Speaker 1: government to save you. Social Security is broke. Four to
Speaker 1: one k's are gonna be taxed, assets could crash, You're
Speaker 1: gonna need cash flow. Hopefully that makes sense. Let me
Speaker 1: know what you think in the comment down below. Hopefully
Speaker 1: like this video. If you do give me thumbs up.
Speaker 1: If you don't give me thumb down, that's okay, but
Speaker 1: at least tell me why In the comments down below,
Speaker 1: and that's what I got, all right to your success.