Aug 12, 2022
Leverage - Get More with Less Effort – How to Scale Wealth
- BRT S03 EP37 (136) 8-12-2022 – Wealth for Life
Things We Learned This Week
- Scaling Wealth - need new strategies that apply financial innovation like Leverage to finance retirement / ex. - Mortgage allows you to buy a house w/ 10% down, now you to own the whole house
- Systems Multiply Efforts - Leverage allows you to get more effort with less effort – Financial (Loans $), Business (Team), Digital (Product – build 1x, sell 100X)
- Control Assets - 4:1 Leverage, Control $4 w/ $1, Wealthy use OPM w/ safe asset for lower ROI vs average person uses own $ to chase risky high ROI
- Kevin Bacon Effect – Six Degrees of Separation – connections, networking & Network Effects of scaling, Knowledge Effect of spreading info
- Archimedes – give me a lever and I will move the world / Dominos – knock 1 over & the rest will fall
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:
WFL – Leverage
Leverage – more with less. Get More with Less Effort.
Ex: job with W2 income – no leverage, all based on single effort, cannot multiply.
Sole proprietor – limited leverage, one person can do so much.
Systems to multiply efforts – can be digital, team, finances
Financial leverage – mortgage. Buy house ($250K) for cash, or buy $1 million dollar house, put down same $250K at 25% , now control $1 million asset house.
75% leverage or 3 to 1. What plan will earn you more money? $1 million house appreciates more.
Digital Product – create 1 time, sell 100 times
Average invest $1 and have $1 earning, wealthy invest $1, borrow $3 and have $4 earning interest
Use OPM and deploy in safe ways.
Safer return on larger investment will win every time
Average using own money and risky, chase rate of return. Wealthy take more money and put in safer return instead of chasing 12% ROI on $250K, get 6% ROI on $1 million using leverage.
Leverage of 25 to 1 or 50 to 1 with high interest rate = dangerous.
Leverage of 3 to 1 on safe asset.
Leverage is a financial tool. Done right, it is very powerful – 3:1 leverage can be safe, have protections – risk reducing.
Digital / Social Media – leverage connections with digital connection, network effects amplify a message on social media.
Kevin Bacon – effect.
Six degrees of separation
Ex: change tire on car, jack uses leverage to raise car. It’s a tool.
Tough to save on your own
Less than 4% get to $3 million assets
Knowledge Effect – spread knowledge via leverage of interest.
Archimedes – give me a lever and I will move the world.
Dominos – knock over one domino and the rest fall.
3 to 1 Tax Free Matching – use leverage to finance retirement.
Increase savings, and use of $, Gives back time.
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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