Buck: Welcome back to the show everyone and with that said I’m just gonna get into this and all these questions here today that I’m doing they’re all ones that I need to read rather than recordings. I do want to remind you for future reference, I would love it if you’d submit questions to Ask Buck. You can do it as written questions but even better if you go to wealthformula.com there’s a little speaker function I think it’s like ask a question or whatever and you record it and that’s really exciting for everybody involved including myself so go ahead and do that and in the meantime let’s start with the current questions.
The first one’s from Chris. Chris says I have a question about business ownership and its effect on taxes. I have two businesses that I am actively involved in as an owner. For personal tax returns we use married filing jointly if I make my wife a passive partial owner in these businesses would we save on taxes since she would not materially participate in the businesses. If so is there a percentage that would be considered too high to give to her? So Chris these are actually very sophisticated questions to ask and even if I thought I knew legally I should not do so because I’m not a tax professional cannot give you tax advice however knowing what I know this is something structurally that potentially you could work on you could do something similar to this and get it done but you’re going to need a lot of layers of you know sophistication and tax planning here this is definitely not something what I would you know that that you you know you do do it yourself you know do you know do it at home kind of thing otherwise you’re going to get yourself into some trouble you’re going to need a really good CPA I would suggest maybe a tax professional if you don’t have one you can look at wealthability.com, Tom Wheelwright’s group let them know you’re with us because that’s always helpful they know that people who are coming from our group are really need top-notch support but listen here’s the thing, what you’re trying to do in concept is really I think valid and I think there’s something there so you should pursue it. It may not be exactly in the form that you are thinking about but I think it’s worth doing. Now for everyone out there who’s wondering what the heck that Chris is even thinking about and why he would do it what he’s referring to are some concepts that we covered in episode 233 with Tom Wheelwright. Now the take home on that show was that creating passive income and you know really changing your facts usually we called it if you want to change your tax you have to change your facts because that’s Tom Wheelwright’s mantra and part of the changing of facts is cr making it so that more of your income is in the passive income bucket because what we discussed on that show is that in many ways that passive income bucket and putting more money in there is you know one of the holy grails maybe not the holy grail per se of tax mitigation of course you know we all love the idea of mailbox money and that’s what people think of when they think of you know passive income obviously and of course that’s great you know you get passive income how much better than that right it’s passive you don’t have to do anything but you know more sophisticated people more sophisticated investors know that you’re also able to a lot more with it in terms of applying various deductions such as depreciation from your real estate to it so it’s really important stuff. So on that show again I think again what did I say episode 233 I marked it down here what Tom discusses is is really important he says that for business owners like Chris here generating passive income might be possible just from potentially changing ownership structures with the potential help of you know some of these other strategies like trusts etc so Chris I would suggest highly that you go back and listen to that episode because what you’re suggesting may be very well possible if structured properly maybe it involves your children maybe it involves trust in your children but it’s not simple it’s not a do it at home proposition so make sure you get someone who’s sophisticated and knowledgeable in that area the good news is that in principle I’ve seen people do similar things to what you’re suggesting so you know it’s definitely worth looking into.
Now next question is from Corrine and she says we have averaged three hundred thousand dollars for the last eight years of which 2020 was 417000 however we dropped below the 300,000 mark in 2019 and 2018 due to change in our business really want to be part of the Investor Club what can I do to expedite this? For example, can I get an investor’s license of some sort? How do you qualify for a sophisticated investor? So these are all great questions so I want to sort of start broadly so that we make sure that we get everybody on board. So to start out you know most private placements you see out there come in two forms: one is the old-fashioned one called Regulation D 506B this is the one that in our accredited investor group we typically use for real estate for our accredited investor club for anybody who’s in that. Now in order for that, you have to essentially be part of you know of a community like ours and then you know we no person outside of that group necessarily can see an offering from us so no specific opportunities can be presented to an investor until they they fill out our paperwork saying they’re accredited after they approach us about investing and then there’s an additional requirement of points you know with me or our team so technically this kind of offering allows for what you alluded to as well it’s for accredited and so-called sophisticated investors. So what is a sophisticated investor? Well that’s the problem what is a sophisticated investor now listen this where there is ambiguity there is plenty of opportunity for abuse and now the real estate guru camps take advantage of this nebulous label and suggest that as soon as you pay them money that you become sophisticated and you can participate in these reg d506b offerings. Now hey who am I to you know define that since the law was left with such you know nebulous definition so I’m not gonna really say more than that you can probably see from my tone what I think of that however I will point out that most high level syndicators you know quality sponsors out there that are putting together good opportunities and private equity they’re really not interested in playing around with the law so when it comes to this idea of sophisticated investors they’re just going to say yeah that’s no good yeah you’re right we’re doing a 506 b and it says you can be accredited or sophisticated but we are really not interested in sophisticated investors because we don’t know exactly how to define it and all of a sudden one day you lose money in a deal and you say hey but I was not accredited and we say you know but you did say you were sophisticated and you say but I’m not sophisticated right because if I’d known I would have not invested. Anyway it becomes that kind of thing and so most you know high level you know professionals out there professional groups are not going to let you participate if you are the so-called sophisticated investor you know by the way I should point out in our our investor club our credit investor club our reg d group here yeah we don’t do sophisticated investors either so we have to be you know black and white about that and it’s for the same reason we just don’t want to play with anything that’s not very clear okay so going back to this definition of of what an accredited investor is well it used to be and that well it still is that an individual used to do you have to make 200,000 per year for two consecutive years with a reasonable expectation of doing the same in the future and then this number goes up to three hundred thousand dollars per year if filing jointly and that of course is why Corrine mentions three hundred thousand in her question and presumably it’s because she’s filing jointly now you could also be accredited if you have a net worth of a million dollars outside of your personal residence and the outside of the personal residence part is important because that is addressing something you know on the coast like in California, New York people many people became millionaires because the prices of their homes went up so much and the legislation specifically addresses that and says nope that doesn’t count just because you’re rich because your house doesn’t tell us that you’re sophisticated enough and you know just to be clear this whole idea this whole notion is predicated on this idea that you know if you’re rich you must be you must or if you make more money you probably know more you’re probably more sophisticated and take care of your own money but the idea of these laws is also that private placements are less regulated which is true and therefore more risky and that people with money again are more sophisticated potentially and less likely to be hurt by losing money in an investment that goes south so you know take it for what it’s worth I’m just telling you the facts of what’s out there now the challenge is for most people that I will tell you that I truly believe that the best investment opportunities out there you know make to make money really are in the private space you know private equity private equity real estate other types of private equity anyway the world of private equity is where money is made big returns are made and it’s not available up until now I guess not really available to you know non-accredited types so the good news is that recently there the laws did change to expand the definition of accredited investors a little bit and so here ultimately kareen is the answer to your question because in addition to those financial ways of qualifying as an accredited investor the law has now been expanded to include people who have passed either the series 7 series 65 or series 82 licenses now it’s also allowed for knowledgeable employees of the fund that’s a quote to participate so if it’s somebody who is you know working at a fund and they know it well but they’re not accredited they can participate they’re considered accredited for that particular opportunity now so long winded answer to your question but hopefully now that that’s something everybody understands if you are not accredited by the standards of you know of of the two hundred thousand three hundred thousand million you know stuff that we talked about before you could take the series 65 series 65 I understand is not terribly difficult so if you want to study and hey you know it’s financial education it’s probably worth it to to do it anyway if you’re really interested in being in private private investments just remember that of course once you start getting into private investments you know the investment minimums are frequently gonna be you know a little bit higher right I mean it’s it’s it’s pretty typical to be at least fifty thousand dollars in opportunity et cetera so you need to be able to also deploy capital you know it’s it’s one thing to be accredited but you also have to be able to actually invest so that’s basically the deal there now just to be complete because I’ve talked exclusively about what I said here which is this regulation d506b there is another kind of offering that you will see out there this one for example our WF Velocity ATM Fund uses and this is called a Regulation D506C not D the C and this offering does allow for sponsors to do general solicitation so if you’re on facebook and someone’s advertising an investment and it shows some pro formas on there and projected returns that kind of thing that has to be a rig d506c because the law there is that in exchange for general solicitation right so that you can the you know people are doing this can advertise they can you know run a you know radio ad on my show or something like that the sponsor must use a third-party verification of accredited investor status and so a third-party verification letter usually means you know like a CPA letter or a letter verify invest you know or go to verifyinvestor.com that’s a very common platform you know listen the Reg D506C it is a lot more cumbersome because of this but you do see that a lot these days and again the only offering that we do like that is one that you know you see us actually advertise for that reason which is the WF Velocity ATM Fund.
All right on to the next question Jeff asked the question, Buck, do you still see life settlements as a viable part of a diversified well-rounded portfolio you have life settlement investments you have listed them before but I haven’t heard you speak about it on the podcast in a long time so wondering if you still thought it held a place an overall investment strategy obviously a fund once obviously a fund once weight growth approach he says thank you for not only learning and vetting everything you do but for sharing it with us here as mere mortals so we can grow our wealth and enrich our families lives please keep the great content thank you thank you that’s very nice of you to say Jeff and I proved pre proved through covid that I am actually mortal myself so anyway that what is a life sum let’s start with that okay let’s start out with that because that’s really I think you know the purpose of having these shows is going broad and making sure that everybody’s learning so people who have permanent life insurance so we’re talking about whole life not term typically you know they have them for years and years maybe they accrued a little bit of cash value over the years as well if they want to typically you know if they want to they can sell their life insurance policies to a third party and when they do that let life insurance policies is considered a life settlement so that’s what a life settlement is the supreme court had actually established the legality of this whole thing about a hundred years ago and the story was basically there was a guy who needed some surgical procedure and this he didn’t have any money the surgeon said well you know what do you got maybe we can barter something and I said well you know I got this life insurance policy so the surgeon did the did the policy and sure enough later on the the guy died and and then the surgeon tried to collect and then the insurance company said no you can’t do that and then I went to the supreme court and sure enough it it the supreme court determined that a life insurance policy is indeed an asset and can be sold to somebody else so anyway so that’s that’s the back end of the story there I will say that in my opinion if you’re going to have an operation or put yourself in the hands of somebody and then you trade something it might not be a good idea to trade your life insurance policy and then go under the knife with the person that benefits if you die I think that that’s probably generally not a very good idea to do now I’m sure this is this this surgeon had good intentions and and he certainly the story is not that the patient died at surgery but that certainly would make it a lot more interesting supreme court case I think don’t you anyway like I said a life insurance policy has been established as an asset that you can sell right so so how does this work then so say you’re 80 years old you’re in good health you’re you know you’re running out of your retirement money right because you you know you listen to people who told you to buy a bunch of mutual funds and they said you know there was something called a four percent rule that was invented back in the 50s and 60s and you thought hey I’m as long as I do this I’m going to use my four percent rule and then you’re 80 years old and you’re like hey I’ve already lived longer than I’m supposed to according to the information what’s up with this four percent rule and you realize that you may end up living a lot longer because you’re pretty healthy and but you’re running out of money and the good news is that all your kids are successful and you don’t need to really leave them you know all the life insurance stuff that you’re gonna leave them anymore and so you’re figuring okay well maybe you can sell your life insurance policy to somebody for a good price and and then use this as part of your your retirement now typically this is a very good deal for the seller of a life insurance policy because you know there’s a reimbursement the reimbursement that they get is quite a bit more than the surrender value of a policy that is the any cash value or whatever certain policy includes there it’s quite a bit more than that so it’s a good deal for somebody who’s in that position they want to sell their policy and helps with retirement and you’re seeing these commercials pop up all the time right you see you know you can sell your life insurance poll you know like that stuff and those those essentially are brokers that are buying those and then people invest in them bid for these policies so that’s how that works so again it’s also a pretty good deal for the investor because they’re typically buying these things for 50 cents on the dollar compared to the death benefit now the payout is guaranteed because death is guaranteed and it’s just a matter of when so at the end of the day the tricky thing is trying to figure out how much you’ll actually makes longer a person lives the this you know the shorter or the smaller value of that return on investment so if you go to hedge the economy.com you can see how you can potentially turn something like this into an interesting you know theoretical fun structure and how it works you know so death is really the only guarantee in life so it’s you know it’s a pretty solid investment now what’s the downside of something like this in my opinion well you know the returns are not going to be as explosive as you’re seeing in you know some of the things that we talk about like real estate or you know the WF Velocity ATM Fund for example for for atms and also profits from owning life settlements are not tax-free like the benefits someone receives the weight receives like when a beneficiary like when somebody somebody gets when it when you know if you die and you leave your kids money that’s tax free to them but if it’s a life settlement that tax benefit goes away so it is taxed right so while I do like the stability of the asset I’m not I’m definitely not you know throwing it away or anything it has it has a place like perhaps in your your qualified funds maybe in something that’s you know as a tax shelter anyway hopefully that answers your question but you know quite frankly for me you know I’ve gotten pretty from my investments in general like I’m really kind of focused on a lot of growth right now and so heavy you know what am I doing I’m doing you know last year if you look at last year I’m doing lots of real estate lots of atm stuff that I did and then you know and then there’s there’s some stuff you know obviously I’m involved with that’s asymmetric in nature as well so so those are smaller investments but you know I so yeah I’m i’m certainly not saying that it’s not a good investment I just think it’s different and it has a different role and it’s not nearly as you know explosive as some of the other things we talk about but that’s okay not everything should be or needs to be right.
All right next question John has a couple questions here it says I have a couple questions I think a lot about but no one seems to be talking about them and I would love to hear your thoughts. Okay so the first question is there’s a lot of stimulus on the way for lower income Americans including doubling the minimum wage which it looks like extra that’s not happening, stimulus checks and talk of doubling the child tax credit and paying it out in monthly payments and that’s just in the first couple months of President Biden’s term with more likely to follow this would be a huge windfall for low-income Americans and easily double their disposable income. This seems like it could have a massive impact on c-class apartment buildings being able to push rents and unit upgrades what am I missing why isn’t anyone talking about this how do you see this playing out well yeah I know I think it’s a great point but I think people are talking about this John in an indirect fashion and you know what is that what is exactly what’s happening there when you when you’ve got this money going out for stimulus checks and you know child tax credits and all of this stuff so this is this is you know this is helicopter money you know that’s what ben I think they used to call ben bernanke helicopter ben anyway the idea is that you know in order to stimulate an economy you got to get a bunch of money into into it right and back in the 2008 2009 that crisis there we learned a big lesson the big lesson was that back then what they did is they gave the banks a bunch of money and they said here go lend it out to these businesses and you know and and and you know then that way we’re going to get a we’re going to stimulate the economy because a bunch more money’s going to go into the and gdp will go up the problem was they gave to these banks and the banks didn’t lend it out they just put it on their own balance sheet and they just decided to sit on it so what they’re doing is actually a lot smarter in many ways because the intent the full intent of these kinds of stimulus programs is to get money in the hands of people so they can spend it right and that’s the idea behind calling it helicopter money so you’re just you know the idea is you know you’re in a helicopter and you’re dropping money to people well hey you know if you’re going to stimulate the economy and your intent is to put dollars into the pockets of the people who are going to spend it that is a much better way to do it than to give it to banks so I think that’s what’s happening now when you do that with any stimulus the you know the risk there is and what people are talking about is really inflation right it’s just driving the ideas that we’re gonna drive inflation up although frankly we’re not you know seeing we’re not seeing in you know significant inflation right now so so although some people are talking more bro broadly about that in the sense that they are talking about the result being inflation right so inflation remember helps us as real estate investors not only in the way you just described it which is essentially you know hedging inflation vis-a-vis rent growth but we also benefit from inflation because inflation erodes debt that’s a really really important thing for real estate’s investors to remember it is the use of that big l in the wealth formula leverage inflation erodes debt remember that it is so important inflation erodes debt whatever you borrow today will be worth less when you pay it back in the future so think about that 50 000 mortgage your parents took out 20 years ago to buy a house that was 250 000 really nice house back 20 years ago maybe but now that house is worth a million dollars and guess what that 50 000 mortgage is still being paid off but you know even if it was a pure 50 000 its value is really not very much right so that’s the concept of eroding debt when you when you when you have leverage and there’s inflation you’re your your debt erodes and that’s why smart leverage is very very important to creating wealth now so that debt is eroded and as real as state investors go this concept is extremely important because it allows us to effectively print our own money I mean that’s what we’re doing okay so the next question that John has because those two questions was also I follow a lot of economists via podcasts about 90 of them seem convinced the long-term secular shift from deflation to inflation is about to happen how might this affect the value of class a b and c apartment buildings it seems like there would be a counter balancing effect of rising rents but also raising cap rates how might this all balance out at the end of the day let’s assume sustained four to five percent inflation and equivalent rise in government debt rates what would be the net effect to prices well well let’s definitely start with the idea what we’re not in deflation right if we were in deflation we would be in a hell of a catastrophic economic situation we’re you know we have low we have fairly low inflation we’re trying to rise the fed in is made it a mandate obviously too to have inflation at at least two percent but deflation is a catastrophic thing right and it would have catastrophic effects on and the fed and the government therefore would do anything and everything to avoid it why okay so this is important again this relates to this idea these ideas about inflation and real estate what I told you before we have bills to pay right we have bills to pay in the form of debt the debt that we have the debt payments that our government has we have to pay all the time and you know again it would be better for us as a nation to pay that debt off theoretically and as as I think the fed would see it as it erodes right because if you have inflation it’s eroding so all the money that you borrowed at one point actually the the you know the actual value of that money is going down every year and that’s why inflation helps pay down that debt it’s like again it is sort of a tax you’ve heard people talk about inflation being the silent tax that’s why it is because the buying and purchasing power of your dollar is going down in order to help pay this debt off that is effectively what’s going on there if on the contrary we did have a true deflationary environment right it’s true deflation happening we would not only get help from inflation in paying off our debt but we would amplify the debt and potentially get into a situation where we would default on our sovereign debt so that’s why I will tell you I think it’s unlikely you will ever see that happen even with deflationary pressures which I think you’re talking about I think there are deflationary pressures you know we don’t have deflation but we have we we’re living in a deflationary environment where you know the pressures are down fiscal and monetary policy you know like these kiwis and and you know continued rates being very very low all this stuff helicopter money fiscal and monetary policy will be directed to prevent deflation like the plague right and that is another reason to think about how you behave if the government and the fed are going to do anything and everything it takes to prevent deflation and help inflation happening well you should probably function on a you know an idea that it’s more likely that inflationary environments will be normal going forward now again with respect to the effect of inflation on real estate we raise rents with inflation and we erode debt now your question about cap rates is also a good one if we have significant inflation we don’t which we don’t really at all right now interest rates will go up because that’s what happens the long-term treasury is that if there’s an anticipation for inflation rates go up the single biggest factor in cap rates is interest rates that’s a single biggest factor in cap rates and that’s why we have historically low cap rates right now because interest rates are historically low and as interest rates go up so will cap rates but remember cap rates are ultimately going up because of inflation which means people who bought at lower rates are in a way being protected because increases in rents hedge that market dynamic changing okay hopefully that makes sense go back and listen to it again because it’s a mouthful but this is all a fairly circular thing and that’s happening.
Okay the next question is from Paresh, oh well he brought this up in our Wealth Formula Network group and so he actually wrote it out so that I could share it with you so thanks for doing that Paresh. So he says why would someone pick a direct versus non-direct recognition cash value whole life policy if the policy is direct recognition within this current low interest rate environment then when would the policyholder consider a policy loan over an outside line of credit are there any long-term risks to the policy holder continuing to use the line of credit okay so this is probably over the head of a lot of people so I actually thought it’d be a good idea to just have Rod record an answer to this Rod of Wealth Formula Banking now as you recall what is Wealth Formula Banking I’m not going to get into it too much but it is a center core of what what I think is a good place to start for a lot of people who are going down this route of alternative investing and you can learn about it wealthformulabanking.com but what Paresh is referring to here is what we’re calling Wealth Formula Banking and the concept is you know essentially get into these policies that allow us to over fund and then grow at a certain rate say it’s like five and a half percent compounding interest rate and then borrow at simple interest rates from the insurance company itself using your cash value to collateralize it and in the process effectively being able to invest in two places at the same time with the same money anyway if it sounds confusing I highly recommend you go to wealthformulabanking.com because it it is something that takes a little bit of an aha moment to have and I think the webinar is quite good there so let’s see what Rod has to say about this.
Rod: Hey Paresh I am more than happy to answer this question and I think the best place to start is just to talk about what the difference is between direct recognition versus non-direct recognition and then we can go from there so in inside of a whole life policy when we take a loan against it as we know from talking with this in well from the banking the full account stays there and continues to grow right. So let’s say I have a hundred thousand dollars in my account I take a sixty thousand dollar loan my full hundred thousand dollars stays in the account and continues to grow this difference between direct and non-direct is telling me how my account grows for the portion of the cash value that’s acting as collateral so in the non-direct recognition policy my account continues to grow the full hundred thousand is growing the same way it was previously based on the guaranteed interest in the dividend okay in the direct recognition what happens is the portion of the cash value in this example the 60 000 that’s sitting in the cash value acting as collateral against the loan continues to grow the calculation on how much interest it’s earning is different it’s actually linked it’s directly linked to the interest that I’m paying on the loan so depending on how much interest I’m paying will determine how much interest I’m earning on that portion that’s acting as collateral. Okay so then the next natural question is which one’s better and this is a it’s kind of tricky question because it depends depends on economic conditions in other words if I’m in a low interest rate environment like we have right now or a dropping interest rate environment then I can have a situation where the combined guaranteed interest and dividend that I’m earning is higher than the loan rate that I’m paying and so in that scenario by taking a loan I actually end up earning a little bit less interest in my account than I would have by leaving it there and continuing to earn earned the way it was right however in a rising interest rate environment or a high interest rate environment the direct recognition is better because the interest rate went up on what I’m paying on my loan now I’m paying more therefore I’m earning more on that portion that of the cash value that’s acting as collateral than what I was earning on the other side with the guaranteed interest and dividend so over the course of having a policy and let’s say it’s direct recognition there can be times when I’m grateful because I’m earning more interest because of that there will be times when maybe it would have been better to have the non-direct but the whole point is that over time I only have one or the other but because there’s a more important factor here that actually is is the criteria that we use to decide what company and what product to offer it’s actually the structure of the policy itself so in other words the different companies the different products when you line them up and we say okay with x amount of money going into the policy which one converts that into the best cash value and it turns out that that’s the more important question because if I have less money in the in the policy to begin with then whether it’s direct or non-direct I’m not as happy I don’t have as much money I can be out investing right and so because the difference in the product makes a huge difference in how much is in the cash value that I can loan against that becomes the more important factor determining factor on how we decide on which company to use and another I think really important point here is we often talk about the whole difference between paying simple versus earning compound interest and that’s another factor that kind of bails me out either way whether I’m direct or non-direct I’m good. And then another thing kind of getting to the the second part of your question about as it relates to using a line of credit in conjunction with the policy this is the idea where I can have an a third-party bank where I set up a line of credit and and then the wealth formula banking strategy it works the same right in other words I have my cash value in my policy growing and then I take a loan have a line of credit with an outside bank when I take loans from that from the bank it’s using my cash value as collateral for those loans but my account stays there and continues to grow right so I’ve just switched out the the vehicle that I’m using for the loan and right now you know if I’m paying five percent on a policy loan I could be paying you know three three and a half percent to the bank for this line of credit and so in that case then I don’t doesn’t matter whether I have direct or non-direct I’m better off by having that outside line of credit so now peresh wants to know okay well when would it be better to keep the policy loan instead of using the line of credit and this just goes back to maybe some additional factors that to consider and that would be number one flexibility on the payback of the loan if I have this outside line of credit with the bank then they’re gonna set the terms on how I pay that back right whereas with the policy loan I can I get to decide how I pay that back I can make interest only payments I can take a break and not pay any make any payments at all for a period of time and all of that works with my policy loan where it may not work well wouldn’t work right if I missed payments in my on my line of credit then all of a sudden I start getting deemed penalties and etc so that would be a reason why I might choose a policy loan over an outside line of credit if those factors are more important than the difference in the interest rate another might be that if the cost of setting up the line of credit is higher than then I can justify based on my plan to use use it as as my source of of debt then I it just may not make sense to set it up in the beginning and then and then the final question are there any long-term risks to the policyholder continuing to use the line of credit I don’t think so I mean in based on kind of the current environment then then you would absolutely want to keep paying the three and a half percent or whatever as opposed to the five if there ever came a time when economic conditions changed enough and you’re looking at it saying no I’d actually rather have used a policy loan say for example if it’s a direct recognition policy interest rates are going up and I can earn more on my cash value by having the loan with the policy then I could see where switching back and using the policy loan would make sense and and I can do that right I can just then say okay I’m going to close out my line of credit and instead use the loan from the policy and so I can I can make that switch so hopefully that adds some clarity feel free to reach out to me if if there is anything I can do to add additional clarity for anyone on this question [email protected].
Buck: Clear as mud right? Just kidding Rod did a great job of explaining but this stuff is not super easy right these are fairly sophisticated questions that are being asked from brush you know after kind of understanding the initial part of this but conceptually I think it’s a wise idea this is again one of these things that I really do believe is core. I don’t give you a lot of sort of direction I think ultimately people need to make their own decisions on you know what they feel comfortable investing in but I think that when I get asked where do I start I often tell you wealth formula banking and that’s something check out and you’ll see why if you go to wealthformulabanking.com let’s see that is about it for me this week it looks like we had just we had some questions we got them answered and I think we got some good information out lots of interesting interviews coming up over the next few weeks. Anyway we’ll be right back