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122: Cash Talk with the Cash Flow Ninja

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A few conversations I had with investors over the last week got me thinking that we need to talk about some basics again.

First of all, let’s start with why I generally prefer to own an asset (either in entirety or a fraction) as opposed to simply holding a note.

What is a note or promissory note? It’s basically a promise to pay the lender a certain amount of interest over a period of time with return of capital.

So, let’s say you loaned money to someone flipping some houses and they issued you a promissory note for 8 percent. The borrower is then allowed to keep any profits above and beyond payments to you as a lender.

Regardless of how well that property does, you get 8 percent at best.

I say at best here because understand that a promissory note, while legally binding DOES NOT guarantee that you will make 8 percent. Your promissory note is nothing more than a lien.

Hopefully it’s a first position lien and hopefully the asset value will cover the amount of debt you as the issuer lent in the first place.

After all, if you lend $100K to someone and they default, you better hope that the asset is worth at least $100K so you can sell it off and recover your initial capital.

Is that a guarantee? For anyone who thinks it is a guarantee, I refer you to all of the notes that were defaulted on in 2008.

A lot of broken promises right? If you think that all those people who made loans got their capital back, you’re sorely mistaken. There is no such thing as a guaranteed investment. Even the Securities and Exchange Commission will tell you that. Just google it. 

The only asset that is considered “guaranteed” is the US Treasury and that’s another story entirely. If anyone tells you otherwise, it’s a big red flag and you really ought to run the other way.

So, if you are not “guaranteed” money and your upside is limited, why invest in debt rather then equity on any given project? 

I can tell you that I will always invest in equity over debt. You have way more upside, you hedge inflation, and you get tax advantages.

Notes have none of these qualities nor are they guaranteed.

Now, I’m not against investing in notes. I’ve done it myself with people I trust. However, I never do it thinking that it is safer than investing for equity.

In fact, if I am investing in debt, I sure as hell better be getting more than 8 percent because the potential upside needs to justify the risk.

Anyway, hopefully that makes sense. I don’t do the weekly wealth widget anymore but I need to make sure I clarify things that I don’t think people are quite understanding.

We all want cash flow but be smart about your investments and look at them holistically. And, for heavens sake, if someone uses the word “guaranteed” in their offering, short of being the United States government, run the other way.

My guest on Wealth Formula Podcast today will attest to everything I’ve said. And you should take his word for it. After all, they call him the Cash Flow Ninja!

M.C. Laubscher is a wealth strategist, educator, and financial freedom fighter.  He is the President and CEO of Producers Wealth and creator and the host of the popular and top-rated business and investing podcast, Cashflow Ninja.

His purpose and mission is to help producers and creators create, protect and multiply their wealth in ANY Economy without getting ripped off by Wall Street & their governments.

M.C. challenges existing societal belief systems and misinformation around concepts such as money, saving, investing, wealth and retirement.

Shownotes:

[00:07] Introduction

[08:53] Buck introduced MC Laubscher

[11:22] How does MC balance his workload

[12:37] What’s new?

[20:21] E-commerce

[23:27] How to get started?

[36:12] Guaranteed money?

[52:07] Outro

 

Interview transcript:

Buck: Welcome back to the show everyone today my guest is familiar to you if you’ve been listening the show for a while. His name is MC Laubscher, a wealth strategist, educator, and a financial freedom fighter. He’s also the founder and president of Producers Wealth and probably I’m guessing you may know him best for his podcast. He is the Cashflow Ninja, and his mission is to help as many people as possible to eliminate the control of banks and financial institutions, sounds familiar right? And have their lives, take their lives back basically from Wall Street. He believes the best way to achieve this in the information age is by reclaiming the banking function in your own financial life through structuring an efficient cash flow management systems and creating and building assets that provide multiple streams of income. Without further ado, welcome back to the show MC Laubscher.

MC: Thank you so much for having me on. Honored to be back on.

Buck: So it’s been it’s been a while what have you been up to you, man? What’s what’s the latest from the Ninja there?

MC: Yeah it’s been quite an exciting year. So many things going on on the Cashflow a ninja front, we’re growing, we’ve got we’ve had over 350 episodes now so…

Buck: Yeah you are nuts!

MC: …footprint globally I think it was over a hundred and seventy countries at one stage that we’ve reached, so we’ve grown grown our footprint internationally so that’s been very exciting on the producers wealthfront. We’re also growing he ability to service clients virtually in all 50 states so we’ve checked 39 of those states so we’re growing in footprint there. And that really pleases me coz our mission was to provide an service and education to as many people as possible. It’s going really really well doing that. And then on the personal front, you know I had a son that has been born since the last time we spoke. So yeah, and then we are expecting our second due in December. So can’t complain. A lot a lot of things on my plate.

Buck: Right. you got a rugby team going there right?

MC: That’s right, that’s right. so a lot of lot of stuff to be grateful for and a lot of stuff to be excited about.

Buck: yeah good for you man. I gotta just ask you, you do three shows a week, and that to me is mind-blowing, because you know I do I do this one Wealth Formula podcast, and as we talked about I have another podcast that’s gonna be coming up. But it’s a lot of work I mean, how do you, how do you do three podcasts? How do you find three quality guests, and have this business on top of that?

MC: Yeah I think one of the things that I firmly believe in from an athletic background is systems, right? Systems, processes and procedures. And I can kind of combine that with the philosophy that I’ve picked up actually where you don’t manage your time, you control it. So you put these systems and processes in place and then control your time and then you know once you have things systematized and and and scheduled out in your controlling it you’ll be able to do that and you’re bringing the right people to help you right the right team members the right right people. And also I love to time block. You know, I like to do things when I’m in flow so with podcast when I put my, you know, my ninja outfit on, and get my purple background behind me I’m ready to go. And then when we focus on the other stuff as far as strategy-wise helping our clients, we do that too, but yeah, it’s been a lot of fun, but you know, we keep busy.

Buck: Yeah I was gonna comment that I am so impressed with the your background, you know if anybody’s watching this on video. And you’ve got a cash-flow ninja t-shirt and a cash-flow ninja hat I mean, I can’t tell you I’m just like green with envy, I just got like pictures of my kids back there somewhere. But listen this is this is great to have you on, you know obviously you know one of the advantages of having a podcast that you are so prolific on is talking to a lot of people and learning a lot of different strategies I’m curious, in the last year or two, let’s just take the last year for example. Tell me a couple of examples of things that you learned that you had no idea existed.

MC: There’s been quite a yeah there’s been quite a number of them. One of the one of the central theme, if we just look at the approach of a lot of the people that I’ve interviewed so I’ve interviewed over 350 people I think right now and we’ve got more in the hopper. But one of the big, big takeaways for me too and this is all with a mindset of where we are currently right in the world market cycles all that kind of stuff is the amount and the emphasis that they place on relationships the emphasis that they place on developing themselves and then obviously their network and then what is important to them. Concepts, ideas, creativity, philosophy, core beliefs, principles and values, right. So as opposed to things. Because I think a lot of these, and I like to refer to them as the cashflow ninjas, right? That I get to learn from because a lot of these people know that and we’ve seen this with billionaires , when they lose everything and you you almost feel sorry for them, and then within the nick of time they’re back, they’re there, they’re flourishing, they’re successful again and they’ve started up another business. And the reason why in my opinion that it happens is because of that emphasis on the building those relationships, the network, and all the intangibles that they that they place importance on right? and of course the self development because if you’re building your relationships and your network, those folks truly believe that they have to provide and produce and create value for those relationships, and that network. So that’s the intangible stuff. Some of the other stuff that I’ve learned, I mean I’ve seen pretty, pretty interesting stuff within the real estate space and of course time kind of into, that is the crypto and blockchain which which you talk about quite a bit, and have guests on of how that will affect the real estate space, right? That’s some of the stuff that I had no idea of how to look, even look at it how would it affect for instance tokenization, you know? How would tokenization? Disrupt the real estate space, how would it disrupt all the other industries potentially and blockchain technology and I think of of all the things that I’ve seen and I’ve seen cash flow and interest within niches now especially you know within the real estate we see mobile home parks and cell storage being pretty popular. You know, five six years ago when I started looking at this and somebody said what are you looking at and I said mobile home parks, they go, trailer parks? Seriously, trailer parks? And now of course everybody’s on board with that especially with the recession. And then you know we look at the businesses online businesses ecommerce. This is one thing that’s blowing me away. If you the opportunity to start an eCommerce business or have someone in your family start an e-commerce because if you think about it we haven’t even scratched the surface when it comes to e-commerce. More than ninety percent around about 90 percent of things are still being sold in brick-and-mortar stores so we’re around 10 percent or less that’s online and a lot of people think that they’ve already missed the boat. This is a massive opportunity. I think it’s just going to grow and this is a huge opportunity for folks just to create an additional stream of income. So that shocked me and surprised me and then yeah I mean I think a lot of these things are again to back to the philosophy, vehicles, and there’s opportunities in every single niche, but there’s these are some of the things that just stand out to me and whack me in the face and say wow unbelievable!

Buck: Yeah yeah I would just make a couple comments there on why the billionaire’s come back as billionaires. I am convinced, and this is where I start, you know it becomes, you know, Wealth Formuna the numbers meets Buck Joffrey of the metaphysical world. And this is this is something I really believe, that there is each and each one of us there’s a little bit of a wealth thermostat, right? And we will generally, if we’re not cognizant of it and try to change the thermostat, we will generally regress back to the mean. So if in your world you’re used to being somebody who makes $200,000 a year, that’s probably what you’re gonna keep doing unless you can change that thermostat. And it takes a little bit of work, even I’m finding this, and I’m being very conscious about it. I’ve done you know pretty well. And you know, so me, you know making a certain amount of money, at this point, which I think a lot of people, most people would consider a lot of money, to me I’m looking at my neighbors because I live in Montecito and saying, well that that guy does, that guy’s worth about 200 million dollars. You know I don’t have two hundred million dollars. So a lot of money is taking different meanings and so the thermostat is important. you gotta keep that in your head because the power of what we believe of ourselves is strong. I will say the other thing in this of course is going off and do a tangent that you probably had no intention of really going into but I think it’s interesting. Tell me more about the eCommerce thing because the funny thing is, you know, this is something that I’ve talked about on the show is that you know of course cash flow is great, and the problem with real estate or anything else is that we get you know it’s a slow burn, right? It’s it’s hard to sometimes it’s hard I mean we certainly have you know infinite return models that we we like to use to try to increase the velocity of money in our in my accredited investor group. But you know one of the beauties of businesses is that businesses, you don’t expect them to do 10%, you expect them to be explosive in terms of the growth and the beauty of an online business if you can be successful on it, is that the overhead is pretty low, so if you fail okay you failed, right? It’s a tremendous way to create a stream of cash flow, right? I mean have you had any personal experience with that? I’m actually thinking about starting something with my 9 year old daughter that’s why I’m asking.

MC: yeah no we’re, so this is on on the the menu for myself and my wife to really dive into next year so we’ve got a couple of goals that we’re heading, but I have to tell you and I’ve interviewed Ezra Firestone which is one of the top ecommerce experts globally on my show, and you know, the stuff that that’s available to you right now in the ease of getting into it, and again, this is one of those things where just like a lot of other things while podcasting is one of them, a lot of folks can get into it, but it’s the consistency, it’s the education, it’s the continual growth, it will drive you and separate you from the back because you can get into e-commerce but to be successful that that’s another kind of level and that’s where education and that kind of stuff comes in, but I see it as an enormous opportunity, enormous. Because if you think about it in the old days just think of the daunting task of starting an Amazon business, you’re like, how do I start this, where do I find the stuff, what do I call someone in China? It’s all basically streamlined and there’s been some trailblazers that went down that path first that kind of open it up so I see enormous opportunity there. I think it’s a used missed opportunity to if you don’t, because that’s it’s just going to be an error with their significant growth you and I’ve spoken about you know Kryptos two of there’s a it’s a train right? You see certain trains evolve and you can see it kind of take off that the network kind of growing around it. eCommerce is exactly the same I think it’s a very strong train just as crypto and online education is another one of them too because the school system you know in generally is so broken as far as learning skill sets, it’s very limited to some of the skill sets that you can learn, that these three are just three trends that I’ve identified that are just massive opportunity.

Buck: And the challenge I found with identifying eCommerce opportunities is that you know if you look at it the internet courses on that kind of thing, a lot of them are you know I mean listen you’re basically creating revenue for somebody else’s online business, which is to market and sell you a course, and that course may or may not have any value at all. So that that that’s certainly one of the challenges actually something we talked a little bit in my private Wealth Formula Network Group we call it side hustles. When we’re just trying to discover some of these. Let’s switch a little bit gears, because obviously you’ve got the Producers Wealth which is you know which is ultimately a financial firm and you help people structure and create wealth, wealth creation systems. If I came to you and I said, hey MC I make right now a hundred thousand dollars a year. I don’t have a lot in the savings, but guess what, I just inherited five million dollars. Where do you start?

MC: Yeah I think the three reasons why a lot of folks fail when it comes to money and when they when they start is the first thing, you know, a lot of folks invest in themselves, right? They do the education, they read the books, you know they take the courses ,they go to all of these very high ticket items, they you know, and so forth. And then they get stuck. Then they go well I’ve read all of Robert Kiyosaki’s books, now what? Right? What do I do now? And the first thing is that it ties into the strategy because it’s a completely different mindset shift to products, vehicles. Because in a lot of those those those educational stuff that’s that’s out there too it’s very specific become a real estate investor so I’m gonna invest in real estate become you know we used ecommerce honestly set up an e-commerce store right? So it’s these are all just this vehicles, but it’s the the whole thing that that we’re looking into, that we will look at is this the strategy. What strategy suits you? Every person is different. Every person has different strengths. We look at your mental capital your relationship capital because that will contribute your financial capital eventually, right? That those combines so from a strategic standpoint. The second part of that is to have a power team that helps you implement a strategy, having the right people in place. This as you know takes a while so that’s one thing that we bring. I mean trust me it’s taken me two decades to do it. I’ve kissed a lot of frogs, I’ve had a lot of those so I understand that that comes into play right? Asset protection guys, estate planning guys, folks that are gonna do it at a high level. Because just as, you know not all CPAs are the same, not as all estate planning guys are the same. If you want to do it at a high level especially if you just inherited a ton of money using your example. And then they say the third leg of it is accountability. Because a lot of people get all excited, there’s a lot of woowoo. trust me I love woowoo, but woowoo only gets you so far. Taking action in the step with a strategy and a power team now you’re going to be held accountable to do the certain things. So once we break that down we look at first, we look at the person as I mentioned we look at what they’re trying to accomplish with it, right? And then we look at the systems that we bring in to create. So for instance if somebody inherits a large sum of money and we haven’t quite, and we actually have now it’s a great question because we have a couple of clients right now, they are in the exact same boat right now, they have that scenario. So we look at the system, so we can bring on and we keep it very simple, you know, as you mentioned production is the first system. You have to be able to increase production and creation, and then you know the three steps you have to make money if to protect money you have to multiply with the protection of money comes a liquidity system and the multiplications are part of it is the income system. So from a liquidity standpoint we look at how we can efficiently position that money in savings right there, and then how we can efficiently create income from those. So you and I’ve spoken about this before and I’ve mentioned this on your show so we use cash flow banking, Wealth Formula Banking to do that. That’s where we we park the majority of our money right there, because of all of the advantages the guarantees that it has of the principal and then also the growth the dividends that it has, the tax favorable treatment that it has, the privacy, the asset protection, I mean we can go on and on and on and it does it does play into the dollar maximization kind of element to it too where the same dollars doing many different functions. Then we take that and for instance we would look at some of the investments that we could put it in right so we could for instance put it into certain cash flow in producing assets depending on what their goals are. Immediate cash flow, if there’s an income goal we could look at certain syndications. If it’s more long-term growth we could look at other vehicles such as life settlements which i’ve known you’ve you’ve covered on it as well. And it’s all dependent on that person’s strength to let’s just say that person was making a hundred thousand using your example and inherited a lot of money maybe maybe their passion isn’t, you know, maybe their passion is in real estate and that’s what we would look at to help them with. But the first thing is they have a windfall. We want to protect that windfall. We want to position that windfall as efficiently as possible and then we want to create efficient income from that windfall meaning using the Robert Kiyosaki cashflow quadrant on the right hand side as an eye, as in be the eyes more text efficient and more efficient as opposed to the Enso wholistic, you know? I love what you when you talk about the wholistic approach because we’ve taken an overview of the person, we’ve identified inefficiencies, maybe these other habits or are the things that they’re doing that are very very inefficient that’s going to provide some challenges along the line for this money that they just inherited right? So we have to look at the efficiencies we have to look at it all as a whole, but that’s kind of what we what we do, to give you a quick example of that person for instance, wanted to relate to say for instance, they inherited around five million dollars or so, right? Well or 4.5, let’s be more specific and an example and they wanted a generate passive income, well you could generate three hundred and sixty thousand dollars of passive income a year and an eight percent consistent return off that money, you know? You don’t have to put it into Wealth Formula banking or cash flow banking. You don’t have to put it in there, but if you put it into there we’ve run some scenarios this is a significant opportunity cost because of the inefficiencies. So you have to be efficient in all areas so that’s that’s all we would help them and in position that.

Buck: Yeah I think the take away from what I’m getting and I think I agree with it is I think having something like a Wealth Formula Banking or you know that kind of thing is a centerpiece from which to you know sort of quarterback, your investments is good, is certainly a sound strategy. One of the challenges though is that if you have a big lump of cash of course you can’t dump that first year into a policy. It’s difficult you’re gonna have to properly layer that over several years. What did you tell the person who with the four and a half million dollars about that?

MC: Yeah so for instance over those years we look at what they need and what they’re currently doing and look at ways to improve it. So using that example, about a hundred thousand dollars, they’re living comfortably already right? So this is something that’s going to be outside of it. And to your point this is the foundational asset, this is the centerpiece, this is, you know what folks also refer to as the Rockefeller method. Kind of the centerpiece of their entire trust. So we’re gonna put that money in there. There’s ways I mean that’s very very tactical you can you can stagger it through through certain other products that you bring in, there’s uh there’s many different ways of how you could do that efficiently and you review all of those different options but I would say the first thing is we have to protect that. Sometimes when people get into a lot of money you you have to protect them from themselves.

Buck: Balance their wealth thermostat again, right? I mean yeah you can a hundred grand a year and all sudden you got also you’ve got four and a half five million bucks sitting there the regression in the mean, you’re gonna, your your brain is gonna try to get you back to under a hundred thousand dollars per year basically if you’re not careful. So that’s where you have to, that’s where you have to be really careful. I think the the interesting thing that happens in the higher levels that, and you know I certainly see this with a number of people in our investor group is is you you know I think a big part of what you’re talking about which i think is important is the majority of your capital at some point and you really have to start looking at wealth preservation rather than your pure ELFA, right? I mean if you’re young and you don’t have a lot of money, I mean you’re gonna do things, I would recommend you do different things than if you’re, you know, if you’re 50 years old and you know you never made a bunch of money and you’re not an entrepreneur or sophisticated investor and all of a sudden you came into five million bucks. Totally different situation and, but it is an interesting one. Tell me about some of the you know non banking strategies that you’ve come to like. I mean you talked about you know a percent growth and things like that. I think that the challenge again and the Devils in the details I feel like one of the reasons for the most part that I’ve stopped having many people on my show who raise capital is that it’s unless I have personally invested with that person, it’s gonna be a tricky thing because there’s just, you know, I had a guy and you’ll love this MC, this is, we had a recent opportunity which, with a group in the investor group that I think is an incredible performing group and just tremendous track record. And one of our guys pulled out because he said that he was looking for something with a guarantee. I said well there’s no such thing as a guarantee. He said, I have a promissory note from another group and it says I’m guaranteed so it’s legal, it’s a binding document. So I mean I and and I get it, I mean I understand why that can be alluring and that can be something that people believe, but first of all it’s pretty much, if anybody’s calling it a guarantee, it’s pretty much, you know, it’s illegal. The SEC does not allow you to call something a guarantee. Second of all there’s no such thing as a guarantee because at best you have a lien and you don’t know if you have a first lien, you don’t know if you have a first position lien, you don’t know if you have a second position lean, what do you have? So when you when you’re competing with a lot of BS out there, when people, and I shouldn’t use the word competing but when you’re wading through the BS, right? To give you a better visual of what I think the vast majority of offerings are. I mean, how would how do you direct people through that?

MC: Yeah we we I couldn’t agree with you more. You make such an important point especially right now. The tides are High everybody’s swimming it looks like it’s a lot of fun right? And as Warren Buffett talks about, you know, you find out you are swimming naked when the tide goes out. It’s very sexy or very, you know, everybody’s getting into syndications and running around and have websites up and I actually had an expert on my show, this is all he does is he vets businesses and people. And he has an entire business based out of it because there’s so much nonsense online and there’s so many people raising capital right now. So you make a great point that we have to continually go through all of this nonsense that’s out there and misinformation and so forth so how we direct people is we have partners you know I’m a very big believer in relationships the same as you people that we’ve personally invested with and do business with that have a track record that’s been in this one that have seen the last downturn and it came out of that you know that they went through that. So yeah we have, we also have, we have a group that we shared certain things with and our clients. Sometimes not doing anything is also the good the right thing to do right? That’s Warren Buffett said that’s also doing something, you’re building a cash position. So now especially for folks that are starting, out now’s as better as ever to build a nice cash position and not do anything so we only look at the opportunities that are available through through as I mentioned our relationships and many of our folks they don’t, they haven’t had one in a while. Quite a little bit because they’re very diligent, they do their due diligence so I would just say to folks do your due diligence especially online because right now the tide is I there’s a lot of misinformation out there, there’s a lot of folks coming into the space. It’s very easy to start a podcast, it’s very easy to start a YouTube channel, it’s very easy to get a website up and running. Do your homework.

Buck: Yeal look at us, right MC?

MC: Exactly! Look at us? Look at me? It’s very easy, you know? So it’s, I mean I would just I would just have people caution, I would just have people caution and make sure that yeah make sure that they do their due diligence and just be cautious because, you know, it’s it seems a little frothy from where I’m sitting and looking at it.

Buck: And and I couldn’t agree more with that and again you know I’ve got people contacting me to be on the show all the time who want to raise capital and it’s like the last thing on earth and they’re offering me money to do it, you know? I just I won’t do it. I mean it’s, and and what you’re finding too, and it’s just to me it’s just a scary thing, is you’ve got a lot of you know people who’ve got full-time jobs who are the quote unquote “asset manager” of literally 20–30 million dollar assets, you know. And and they’re not doing much with them they’re kind of just riding the wave and as we discussed before all it’s going to take is a little bit of cap rate compression and one or two violations of a loan covenant and there’s gonna be some buildings that go on discount pretty quickly for for buyers who are being aware of that. One of the things that you mentioned I think is a useful too. You and I are both a big fan of this, you know, Wealth Formula Banking, what we call Wealth Formula Banking, and it’s a great time to build that cash position particularly with a vehicle like that because you could be in cash but you’re gonna make less than one percent on your money, whereas I mean really with Wealth Formula Banking you’re talking about five, five and a half percent that’s compounding and that’s certainly much more favorable and that as far as guarantees go, well I mean that’s about as close as you’re gonna get outside of a US Treasury for real guaranteed money. So I mean I think if you’re for those of you out there who are telling me that you got guaranteed money coming in this might be something that you might want to look at in particular.

MC: Yeah especially you make a great point by putting money into something that’s efficient and then also I think this is one of the things that I’m looking at in the next downturn, if there’s a short correction or just a recession, I think from a risk management standpoint you know you have political risk, you have economic risk, you have market risk, but the other risk that folks do not talk about is institutional risk and it’s gonna be very important not just what your money’s in but who it’s with and that’s why again you know the those mutual insurance companies just in my opinion just with their track record and looking at their balance sheets and the excess cash reserves is a great place to put it on. Another thing that I also would would encourage folks to look at and this is a lesson I’ve learned just from having a having a little bit of an insight to some family office setups with relationships in there is it amazes me the amount of time and of an overall just from a time standpoint of how these families in their teams what they’re focusing on is not just the the five to ten or you know twenty percent of their money that’s invested, you know, generating income or business through businesses investments, but the entire other picture of being efficient in all different areas. Plugging cashflow leaks, you know for instance from their standpoint and their philosophy is you know and you see this through a lot of comments from other family offices I think it was David Rockefeller Senior that recently said our our focus has been wealth preservation more actually than expansion. You know and one of the things that they’re doing is they’re they’re looking at foreign efficiencies as foreign cash flow leaks as as far as let’s just take taxes for example. These families and they you know some of the single family offices around two hundred fifty million dollars net worth and up they know that if they reduce and it’s a changing tax environment right now if they can reduce their tax liability by twenty percent. This is why they have CPAs and people working on it. There’s no return out in the marketplace over the course of twenty to thirty to forty years and I’m not even talking about transferring onto the next generation and the next generation after that there’s just no return out there, you know. People could run the numbers all they want that they would have to get you know going out an investment so they know taxes is a massive wealth destroyer they’re super efficient when it comes to that, where they position their savings, you know. We’ve touched on where it where’s a good place for that another position their assets, their their income, other cash flow leaks, inflation is a big one, how they position for the inflation and then all the other inefficiencies that they that they might find in there so they ordered it regularly, they look at different ways, they strategize, they try to be as efficiently as possible from an estate planning from an asset perception standpoint and then also from it from a tax standpoint that’s — they know already that’s going to be the biggest return that they’re going to get any place so I would say this is a great lesson that your listeners can take with them and say now’s a great time not to chase just returns out in the marketplace, but figure out, hey how efficient am I in all these different other areas in my life especially with regards to my personal economy my business economy. I’ll give you an example of a business economy I just did this a couple of months ago. Just looking at the memberships and the subscriptions that you have for software and all these things, there’s so many overlaps, and I mean there’s already a couple of hundred bucks, maybe a thousand in my case per month it was going out that there was things overlapping, right, it could be done more efficiently so there’s just a quick example but figure out how to be efficiently as possible warehouse some some cash to capitalize on opportunities and don’t get keep on chasing all of this, and chasing returns out there.

Buck: Yeah it’s interesting you say that. I just hired a a new in-house accountant and she is she is super sharp and and from a business standpoint, I think she cut out, she eliminated something like $150,000 of insurance that was just fat net. I mean I didn’t realize, I’m, you know, and and she did that. And then on my personal stuff she limited, something like another twenty thousand dollars of personal insurance that I didn’t need that it was overlap. But I was with a company that, you know, I don’t claim to know a lot about liability insurance so you know at which you’re not educated on is usually where you’re going to get burned and so high. I just assumed the people that I had for those things where we’re doing the best for me not just for themselves, but anyway those are just examples of the types of things that you can do. What other, you know you talk a little bit about family offices and you know one thing that they’re always concerned about especially with these multi-generational offices is, you know, the transfer of wealth and what are the some of the things that you’ve learned about well you know the transfer of wealth. And you know presumably you’re talking about people who’ve got big estate planning problems and stuff like that. What kinds of things have you learned about that?

MC: One of the biggest things that I’ve seen is it’s not only the transfer of the assets and the liquidity right that’s the easy part out of all of us when you think of the money that’s being transferred every generation and then looking at the generations that are recipients of this they’re not only good steward of the capital but they grow it every single year and I was fortunate enough you know growing up in South Africa, I went to a very prestigious school and University and I saw some of these families and I can see where they’re now the guys that went to school with me and they not only just took the capital and turned into trust fund babies, they are growing it, they’re hungry, they’re very, very, very driven, because their mission driven and vision driven, so the transfers not only just the assets which technically it’s just done through proper estate planning asset protection you know and trusts and so forth that’s that’s kind of the more the mechanical start, but the most important part and this is a part that I really really like and I’m diving deep into this and studying this, is the intellectual capital and the knowledge that’s transferred to the next generation. And what I mean by that is I have a mentor that talks about this quite a bit as and refers to it as a statement of purpose which is the family Constitution that are set up so it worked for the United States kind of principles and values of the country and kind of the vision, a family should have it too and just think about us as individuals you know personal growth and development yeah we have that for ourselves a vision and a mission for ourselves and for our businesses we should have it as a family. They have that, they know what the stamp the family’s mission is, what the vision of the family is, and then also the philosophy the core beliefs, and then the principles and values of the family. And then there’s rules put in on this document basically of what it what it means to be a part of this family what do we stand for, what is unacceptable behavior, what are things that we covered in value, what are things that we try to stay away from and steer them in their directions, right? You could talk about health, you could talk about relationships, the importance of it, you could talk about certain things with regards to wealth creation, you know we’ve just discussed a lot of holistic things, that’s something that could be in that document, that’s one way. But living and breathing that as well and sharing that with with the children in the family right is another thing in a very big part that plays into that is the family retreat, which if there’s a book the five men from Frankfort based on the Rothschilds. And these guys talked about a family retreat where all the different brothers because they were all in different cities right? One in London, one in Paris, one in Frankfurt and so forth. They would all get together and share best practices, talk about the family, are we aligned with the document for our family, are we living our family’s purpose and what we’re supposed to do, you know, and enjoy each other’s company, share these things within your family and again you don’t have to be a Rothschild to do that. You could do this with your family now, you could take a retreat somewhere and talk about these things with your spouse it aligns and bring spouses on the same page, right? If that’s something that you’re wriggling and struggling with. I’m not a relationship expert and not claiming to be one or give advice, but it’s nice to to have the family and everybody on the same page and have everybody’s input in it. So we’ve we’ve mentioned the Constitution, we’ve mentioned the retreat because it’s all about the soulful experiences to in relationship, the other part that I also mentioned is the the third part which is the family office kind of part which one of my mentors talks about quite a bit and that’s just basic the power team of advisers. You have a document and their two guiding advisors, what type of advisors should you have, what’s the core philosophy of the family when it comes to wealth creation right so for instance it doesn’t have on there that you should max out your 401k because that’s not part of all they offer right so I think having all those things in place and living and breathing it loving it today your legacy sharing these experiences with with your children and with other members and your families what it’s all about and I think that’s gonna make it easier because that’s one thing that I’ve just seen the mentor support of it is also huge and it’s a it’s a it’s a huge opportunity I think for all of your listeners listening to incorporate this within their own families start doing a couple of things because the statistics are frightening. The statistics are a lot of folks even with proper transfer you know mechanically…

Buck: It’s like two generations right?

MC: Yeah it’s crazy. We’ve heard the three generation since some of the folks just inherited some of money, back to our previous example, that’s eighteen months is that average. Standard average normal family where they get up they get a bunch of money and all the money’s gone with spent on Lambos, or watching crypto…taking a lot of Instagram selfies.

Buck: Well this has been great. And by the way if anybody else out there has had success with an online business, because I’ll tell you personally and see one of the things that I think is really important for raising children with money in my opinion, I don’t know if it’s gonna work or not because my kids they’re little they’re nine, five and three, but I think that a lot of is the culture that you have within the house. You know like right now you know I’m starting to teach my nine-year-old a little bit about investing in and she’s super excited because we decided we’re gonna start a business together. We’re just trying to, we’re hunting around for businesses and we’re trying to do something online so I bring that up to ask anybody in the audience who has had some success with some sort of easy sort of in the box online business doesn’t have to make a bunch of money, it’s just you know, if she can make ten bucks a week she’d be happy. Let me know. With that I will turn it to MC. Where can we learn more about you? Obviously we’ve got the show we got Cashflow Ninja. What what else can, what else can you share with us?

MC: Yeah there’s a video course and a webinar that your listeners can check out if they’re interested in some of these things that I talked about at yourownbankingsystem.com. It’s yourownbankingsystem.com. So there’s a there’s a webinar and then I broke it down into a lot of easily digestible sizes a little bit shorter videos just talking about these concepts and different things a little bit more in detail and as you mentioned Producers Wealth is my company they could check it out it ProducersWealth.com and then the show is CashflowNinja.com

Buck: Fantastic. Well thanks again for being on the show MC.

MC: Thank you so much and always as always enjoyed Buck.

Buck: We’ll be right back.