The Wealth Formula Podcast - Episodes

Robert Kiyosaki opened my eyes to the notion of passive multiple income streams 9 years ago and it changed my life. Of course, my dad had been talking about “cash flow investing” since I was born but for some reason I was too dense to figure out what he meant.

In the context of Kiyosaki, multiple streams of income has generally been interpreted as investing in real estate. After Rich Dad Poor Dad was published in 1997, a generation of real estate groupies was born! You couldn’t help but get excited. You get a few houses or apartment buildings cash flowing, and before you know it, you are financially free, right?

For those of you out there actively trying to make this happen, it is a little bit harder than it sounds, isn’t it? For one, finding properties that cash flow and won’t end up costing you money in the end is actually a lot of work and takes some level of expertise.

That’s why we have the Wealth Formula Accredited Investor Club– to help facilitate opportunities and to help you deploy your capital. Beyond finding deals, however, there is also the challenge of not having enough capital to deploy to get you to your financial goals in a time frame that you might find acceptable.

A good cash on cash rate of return on real estate is 10-12 percent. Let’s break that down. You save $100K and deploy it in an opportunity that yields 12 percent cash on cash. In exchange for your $100K, you get $1K per month. If you are a $100K level investor, that extra $1K per month is probably not going to be enough to free you of your golden handcuffs. You’re going to need a lot more capital over time.

OR–you could find something that makes you A LOT MORE return on investment than owning real estate. You could invest in a business. Truth be told, I own four cash flowing businesses that account for the majority of my income. I certainly do own plenty of real estate and other assets, but the businesses I own are the assets that throw off the most income by far.

To be clear, I consider my businesses cash flowing assets just like my real estate–multiple streams of income does not mean it all has to come from rental homes, or owning notes.

Of course, owning businesses is far more volatile and risky than owning apartment building as a general rule. The key to making this strategy work, in my humble opinion, is to have a portfolio of assets with different risk/reward profiles that includes high cash flowing businesses.

The problem for most people is that they do not have enough time or the expertise to start a business. There is also an initial capital cost to start or purchase a business that, if you fall flat on your face as an entrepreneur, could result in a painful financial outcome.

So, as your Wealth Formula sherpa, I’ve been on the lookout for ways that you too might be able to participate in business ownership with relatively low financial risk and I think I may have found one.

I know a handful of people who have done really well on Amazon over the years so I wanted to present this option to you–one that I might be looking into myself at some point with my eight year old daughter.

To discuss the Amazon option, I invited Dylan Frost on this week’s Wealth Formula Podcast. Dylan is behind thewholesaleformula.com and will tell you how to create streams of income on amazon that you can automate. Make sure to check it out!

Buck

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What do the Rothchilds, the Romneys, and billionaire hedge funds know that you don’t about growing and protecting Wealth?

A LOT!!

On Wealth Formula Podcast, we cover some of the principles that they use like leverage and velocity.

But, as you might imagine, the wealthy have a few tricks up their sleeves to help them achieve these objectives in very efficient ways.

I have been studying these tricks tenaciously over the last few years but there is still one concept that I just can’t get over. I just can’t believe I didn’t know about it until recently. It is a concept that I have been calling Wealth Formula Banking.

I have been talking about this a lot lately and there is a reason for that.

Imagine that you could put money into an account and grow it at the tax equivalent of 9-10 percent compounding interest TAX FREE with NO VOLATILITY. That’s what I call the magic of compounding interest!

Imagine that money was bulletproof not only to the tax man but to creditors as well.

Now—imagine that you could borrow that money in your account and invest it in something else WHILE CONTINUING TO GROW IT IN THE ORIGINAL ACCOUNT AT A COMPOUNDING RATE!!!

In other words, invest your money in two different places at the same time—I call that double dipping and—somehow it is totally legal!

Now, I will go as far as to say that if you do nothing else that I talk about on this show but you do get involved with Wealth Formula Banking, I will be ecstatic.

Why? Well…you see my mission on this program and with everything I am doing with my brand is to help you secure your financial future.

If you get out of the equity markets and start using Wealth Formula Banking instead of your financial advisor, I will know that I have protected you against the wolves of Wall Street. Above all else, that is my mission!

Furthemore, if you take FULL advantage of this glorious financial tool, it will also help you AMPLIFY your returns—literally cutting years off of the time it takes you to become financially free.

Now that may sound like a bold statement but I’m willing to go out on a limb and say it because I believe it to be true.

To help you understand why, I have invited the guy from whom I first learned about this concept, Chris Miles, to discuss it on this week’s Wealth Formula Podcast.

Do yourself a big favor, don’t miss this episode. Listen now!

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I have said on a number of occasions that Wealth Formula Podcast is NOT a Real Estate Show. So why do we talk so much about real estate?

Well, for people who want to grow their wealth, there simply is no other asset class with a better track record and more upside than real estate.

The Wealth Formula Principles for Wealth Creation are:

1. Invest in tangible things, not paper.
2. Invest in cash flowing assets preferentially.
3. Invest in things you can understand. Complexity is a tool used by Wall Street to siphon away your profits.
4. Utilize the concepts of velocity (ie. Re-invest quickly) and leverage to increase and amplify your returns.
5. Invest in financial education.

If you are reading this, you are already working on principle #5. You can easily put in to play principles #1-4 by investing in real estate.

On the other hand, if you are investing in gold, it is hard to cash flow and it is hard to use leverage.

That doesn’t mean you shouldn’t invest in anything that does not follow these five principles. As long as you know the rules, by all means, break them.

I break them all the time. I own gold. I own life settlements. There’s a reason for them all. But the majority of my investments outside of my businesses are in real estate.

And, if you want my opinion, that’s what anyone wanting to build wealth over time should have as their PRIMARY investment focus.

Of course, it is very important to learn about real estate if you are going to use it as a primary investment vehicle and we certainly talk about it on this show.

That said, who better to learn more from about real estate, than the Real Estate Guys themselves!

Of course the Real Estate Guys are also known as Robert Helms and Russell Gray—a couple of good friends of mine. Robert was on the show a while back ago talking about a luxury resort in Ambergris Caye, Belize that many of you, through investor club, know about and may even be invested in already.

Russ is the other half of that dynamic duo and is our guest on Wealth Formula Podcast this week. Make sure you tune in to learn why Russ thinks you should be investing in real estate now!

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I have arrived to Southern California and I am now writing to you from my new office which, for the first time in Wealth Formula Podcast History, is NOT a part of my home.
 
This time away from the show has given me some time to reflect. I do have a lot to say to you myself and sometimes the interview format does not allow me to do that.
 
So, I have made a decision that I will do more podcasts in a format where you can hear from me a bit more.
 
During these episodes, I hope to share with you some of my thoughts not only on financial matters but on mindset.
One of the biggest barriers to financial and holistic wealth is mindset. Our mindset, in turn is influenced heavily by what we believe.
 
In this episode of Wealth Formula podcast, I talk to you about how our educational system and conventional wisdom may have created artificial “truths” in our lives and how that might actually be destructive to the way we deal with money.
 
Let me know what you think of the show!

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When I was in high school, I used to BLAST Led Zeppelin on my drive to school. My favorite album was Led Zeppelin IV.

My music tastes haven’t changed much since then. In fact, my music repertoire pretty much ends 1992–the year I graduated high school. Even ’92 is a bit late for most of my favorite music though.

My wife, on the other hand, generally likes the newer stuff. But last month, I converted her. I had her watch a documentary on Led Zeppelin and she was hooked. Our theme song for the month became “Going to California” because of our impending move to Santa Barbara.

By the time you get this message, I will already have moved. This is the last Wealth Formula Podcast episode recorded in Chicago.

For those of you who have been listening to my show from the beginning, you can hear the seeds planted for this move in episode 14–almost exactly one year from today!

This week’s episode of Wealth Formula Podcast is reflective. If you listen to this episode and episode 14, you will see the power of goal setting in action.

I feel very strongly in the idea that you must practice what you preach. If I tell you to take action and ask you why you are not living the life you want, I have to ask myself the same thing.

That’s exactly what I did and now I am seeing the results of that vision. How about you? What’s your ideal life? How are you going to make it happen?

Remember, you have to know where you’re going before you make a plan to get there. Start by listening to this discussion with Zed Williamson.

Buck

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