Defense is what keeps you from jumping off the ledge when markets go the wrong way.

You have other assets. You will be fine.

You still have money coming in and your long term financial picture is secure. It’s not always about what gives you the best return at every given moment.

It’s about whether you can sleep at night.

We are all emotional, so let’s just be realistic and sensible.

Set up defense with 20%-40% of assets.

Using a Retirement Account to Start a Business.

Called the ROBS strategy - Rollovers For Business Startup

7 Steps:

1. A new business is established as a C corporation.

2. That corporation creates a new 401(k) plan that can purchase private stock.

⬇️ 3. Funds from the existing retirement account are rolled into the new 401(k) plan without triggering a taxable distribution.

4. The 401(k) plan purchases stock in the C corp.

5. The C corp. acquires or starts a business using these funds.

⬇️

A job and the stock market. Two things you don’t control.

Once you start hitting (or passing) a certain level of success - $200k-500k, you have the power to put yourself in an unbreakable financial position. Two ideas 🠗 1. Use business, joint ventures and partnerships for exponential wealth. Your odds of a 10x + return are highest here. Build strong relationships and you will never run out of opportunities. You bring skills, expertise, relationships, etc. 🠗

Using Pennies to Control Dollars for Scaling Wealth

With interest rates so low, you can control Other People’s Money for pennies on the dollar.

Used properly, OPM is one of the safest, easiest ways to increase your financial security. For probably 90% of Americans debt is the enemy. For those in the top 5%, trying to get the top 1% it is an essential wealth building tool.

Using OPM - you can create 3x-5x more wealth vs. saving on your own

If you're top 10% trying to get to top 1%...using Other People's Money is the greatest tool available.

For the other 90% of Americans debt is the enemy.

For you, using OPM - you can create 3x-5x more wealth vs. saving on your own.

⬇️ Thread ”Many people still confuse leverage with risk, but the reality is that levering up low-risk assets so you can diversify away from risky investments is risk reducing.” Ray Dalio

In fact, most money created today is actually debt.

Quick example: ⬇️

Overall I think the magic of compound interest is overrated. It requires a long time. If you happen to miss that window of time it’s not going to work that well for you. Leverage of knowledge, expertise, debt, etc. are much more powerful. Leverage creates the X factor. It’s how you have multiples of 3X, 5X, 10X. Most big jumps in wealth come from increases in income, businesses, equity payouts, real estate wins, etc. not 20 years of compound interest

Is a financial advisor nothing more than an investment salesperson?

Most people say "YES". When you talk to a financial advisor, 99% of the advice you're going to get is about one thing. Invest in the stock market. Now, look, I love the market.

We have one of the best investment strategies in the country right now, but there is more to wealth building than just the stock market, right?

The stock market is the tip of the iceberg.

The Tax Bracket Strategy

Understanding tax brackets could be worth $1 million or more if you’re a high income earner.

This thread will show you how to dramatically reduce your taxes over your lifetime.

⬇️ With tax brackets, your income is taxed at different rates based on the brackets published by the IRS.

Each “block” of money is taxed at a certain rate. See chart below:

Example for married couples:

⬇️

The best strategy for creating Tax Free Income Streams:

Works like a no-limit ROTH on steroids.

3 to 1 matching on contributions.

60%-100% larger income streams vs. traditional plans.

Can save you six or seven figures in taxes over your lifetime.

How it works:

⬇️ Combining taxable and tax free income streams during retirement allows you to stay in lower tax brackets.

Example: You are withdrawing at a 32% rate.

You bring in 100k tax free.

Saves you $32,000 in taxes.

Doing this each year creates massive savings.

Asset structure:

⬇️

Is a financial advisor nothing more than an investment salesperson?

Most people say "YES". When you talk to a financial advisor, 99% of the advice you're going to get is about one thing. Invest in the stock market. Now, look, I love the market.

We have one of the best investment strategies in the country right now, but there is more to wealth building than just the stock market, right?

The stock market is the tip of the iceberg.

Using Pennies to Control Dollars for Scaling Wealth

With interest rates so low, you can control Other People’s Money for pennies on the dollar.

Used properly, OPM is one of the safest, easiest ways to increase your financial security. For probably 90% of Americans debt is the enemy. For those in the top 5%, trying to get the top 1% it is an essential wealth building tool.

Using OPM - you can create 3x-5x more wealth vs. saving on your own

How Much You Need to Be Saving

Don't believe it!

The research is flawed.

Forget sacrificing everything for the future by trying to save 30%-50% of your income.

Much more efficient ways to do it!

⬇️ More JP Morgan data uses a 4% withdrawal rate from a stock portfolio.

Stocks are great, but many assets have higher withdrawal rates.

⬇️ More

How Bezos and Musk pay so little in taxes:

First, they don't take a salary. W2 income is punished by the tax code. They are paid in company stock or loans as compensation.

For company stock, they use it as collateral to borrow from a bank. Example: $30 million in stock. A bank loans them $10 million using the stock as collateral. Live off the loans.

In the workplace this is "loan based split dollar compensation." It's how Michigan coach Jim Harbaugh created a $1.2 million tax free income.

Secret #1: Loans are the key to tax free income.

Can we reduce our taxes like these guys?

Somewhat.

Income at the higher levels is punished by the tax code. So...

Loans are the key to tax free income.

How?

Three strategies. ⬇️ 1. For C-Corps and Non Profits: Loan based split dollar compensation.

Starting point: $400,000 income
Adjusted: $200,000 income, $200,000 loan
You pay loan interest to the company.
Using a life policy, loan is repaid at death.
$200,000 reduction in taxable income.

⬇️

You can become financially unbreakable.

It just takes uncommon knowledge.

I'm writing 30 Atomic Essays with #Ship30for30 from @dickiebush and @Nicolascole77

I'll be sharing insights on wealth and taxes from a decade of working with millionaires.

Follow this thread below ⬇️ 30 days of tips. Day 1 of #ship30for30

Becoming Financially Unbreakable.

https://twitter.com/DenverNowicz/status/1393567554266820611?s=20