Jun 10, 2022
Beware Taxes! Defense is What You Need vs Offense in Your Investment Gameplan
- BRT S03 EP24 (123) 6-10-2022 – Wealth for Life
Things We Learned This Week
- Balance in a Financial Plan – Combo of Offense & Defense, Synergy of the Mix
- Offense – Stocks, and other growth Assets, Real Estate rental property, owning a business, etc.
- Defense – Tax Protection (moving $ to a Tax Free Position)
- “One Thing” Retirement Plan – 401K & stocks, hope it goes up and no volatility (market risk), 90% of people are on this plan
- Tax Buckets, broken into 3 categories of Taxed (income), Tax Deferred (401K), Tax Free (Roth)
Co-Host: Denver Nowicz, President - Wealth For Life
https://wealthforlife.net/brt/
https://twitter.com/denvernowicz
Denver is an advisor with nearly 20 years experience working with clients in investments and insurance, designing retirement plans with a combo of both. He takes us through different strategies for clients to get the best allocations for their money over the long term. It is the Combo Strategy of both Offense and Defense, the synergy of the mix, not ‘All or Nothing’.
Notes:
Synergy of Offense / Defense – diversification of income streams, lessen market risk
Offense – stocks, crypto, real estate
Defense - IUL, Cash Flowing Business, Real estate, bonds, dividend stocks
Offense – tactical – hold 15-20 stocks – aka ‘best houses on the block’
Tactical Investment Strategy – goal of growth, shift with market sentiment, value to growth or growth to cyclical – active management. 15% beat market, 85% do not.
Secular trends – housing, building or energy
Index – safe but will not out perform market, just bought off shelf.
Index has Market risk and Zombie Co. problem.
Cash = bad, gets eaten up by inflation = Inflation risk
Stock market – good at growth, but inefficient on income, hard to capture the gains
“One Thing” Retirement Plan – 401K and stocks, hope it goes up and no volatility (market risk). 90% of people are on this plan.
Build Assets – or create assets, like a digital brand
Never go back to Vegas with scared money. Lose $, then chasing losses
Combine offensive and defensive strategies
Defense – wins championships, stable. Finances are stable, allows you to take risks IUL, CF business. During bad market, wait for stocks to rebound and pull money from IUL or business.
Visual – what is needed income or expenses – cover basics, then invest other money. Defense = 40%
More wealth created, less money in market – money from business or real estate, move money to index strategies. Use financial leverage to increase wealth.
Average worker – salary and money in market (401 K). All money is offensive strategy and subject to disruption and market risk.
Defense – Tax Protection and Tax Buckets 3 taxed, tax free, tax deferred
Tax brackets – progressive tax system. Tax income in tiered system
Taxes highest expenses, eats away at wealth - IRS – puts target on wealthy people
Takes time to move people to tax free position.
Government/IRS is your silent partner –they will get their cut
Taxes – permanent loss of 25-50% every year
401 K / Tax Deferred – pay taxes later and do not know rate
Tax brackets – max out tax position and use 401 K
Segment defense money out – Secure future income with 20% of capitol. Frees up capitol for offensive strategy
Capital Control – no losses, principal protection, Lock in Gains .
Wealthy has less money in 401 K retirement income or home equity. Instead own assets – business or real-estate that have tax shielding qualities or private foundation
Leverage OPM – wealthy use other people’s money to invest, eran ROI on bigger sum of money, then take $ via loans, does not count as income on taxes
Business owner – advantages with LLCs, Trusts, Insurance and expense write offs
More Info on WFL and Tax Free Matching: HERE
Wealth For Life Topic: https://brt-show.libsyn.com/category/Wealth+For+Life
Link to Taxes Show on 10/31/2021 w/ Denver: Here
Link to Offense / Defense Show on 6/6/2021 w/ Denver: Here
Link to Shows, Denver was a Guest: Here
Investing Topic: https://brt-show.libsyn.com/category/investing
More - BRT Best of: https://brt-show.libsyn.com/category/Best+Of
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