Wealth Secrets

Today on The Wealth Secrets Podcast, Sean Adams welcomes Justin Stoddart, author of the international bestseller The Upstream Model. He’s also the host of the Think Bigger Real Estate Show, as well as a coach and consultant to top entrepreneurs. Sean shares his proven strategy for building a network that produces recurring referrals for your business or personal life.

[03:10] Getting to know Justin Stoddart
[05:02] Developing the Upstream Model
[12:37] Win clients and referrals with the Upstream Model
[16:41] Put in the effort to stand out
[22:00] Cultivating long term relationships
[27:25] Identifying opportunities with exponential returns
[39:47] Thinking Bigger Podcast

Justin experienced first-hand the difficulty of finding his next client. Cold calling and networking did not produce fast and consistent results. This gave him the idea to look for partners who could open up doors of opportunity for him¾to go “upstream”.

For the Upstream Model to work, you must be referred by a trusted professional to the person you seek. Introduction through a credible professional will warrant a warmer reception. During the first few appointments with your potential partner, it’s crucial that you build rapport and identify their business problems. Find common ground by talking about your past successes in the industry. Once you know their main concern, find a way to solve it in time for your next meeting. By doing this, you instantly prove your value through immediate action.

How do you know which relationships to seek out? Choose an upstream partner whose customers can possibly become your own customers in the future. It’s better to have a handful of contacts with warm referrals rather than hundreds of contacts with cold referrals. Focus on the relationships that give you repeated value. This also prevents overwhelm from managing large databases of referrals and frees up your time for other things that matter.

Links and Resources:

Today on The Wealth Secrets Podcast, Sean Adams welcomes Zachary Miller from Private Wealth Academy, a group of experts that empower individuals to take control over their wealth. They discuss how to use bulletproof trusts to protect any asset while reducing liability.

[03:10] Getting to know Zachary Miller
[07:58] What is a trust fund?
[10:53] Benefits of a trust
[15:04] Build a trust web to protect assets and businesses
[20:59] When to build a trust fund account
[25:42] Why billionaires don’t want you to create trust funds
[31:28] Save on taxes with trusts
[33:04] Trusts protect you from law suits and divorce
[39:21] Setting up trusts worldwide
[40:49] Private Wealth Academy

A trust fund is created to hold an asset for the benefit of another. The assets in the trust are neither owned by the grantor nor the beneficiary because ownership is determined at a later date. Assets that are not in a trust are taxed heavily by the government. Wills are not exempted from probate but trusts are.

Aside from the inheritance benefit of trusts, other advantages include protection and tax savings. Cars, real estate, and registered businesses can have their own trusts – thereby protecting your assets from litigations. You can set up trusts in whichever way you like, building a “trust web” that’s best suited for your unique position. Whether you have a statutory or a private trust, you are able to reap tax savings.

You don’t have to be a billionaire to start a trust. Trusts have always been advertised as accounts for the wealthy but that is simply untrue. Start your own trust fund for your own protection and use it to your advantage.

Links and Resources:

Today on The Wealth Secrets Podcast, Sean Adams welcomes back David Barnett, business consultant for small to medium-sized enterprises and the bestselling author of Invest Local and other titles. His decades-long of combined experience at Yellow Pages, American Express, and business brokerages have made him an expert in business buy and sell, business valuation, and deal-making. David shares his tips for how to invest in cash-flowing businesses and how to add value as an investor.

[03:26] Getting to know David Barnett
[08:01] Buying a business VS starting a business
[11:41] What to consider before buying an existing business
[16:12] Delegate responsibilities, not tasks
[22:42] Goodwill and how it affects business valuation
[34:02] A cash flowing business is an active investment
[37:34] Opportunities to improve a business’ underutilized assets
[44:39] Where to find investment opportunities

The biggest risk in starting a business is the uncertainty of reaching your breakeven point. It’s even more challenging to make a profit. Acquiring a business that has a secure cash flow may be a safer investment decision depending on your financial situation.

Before buying an existing business, ask yourself these two questions: What is the cash flow? Will I be able to generate the same cash flow under my stewardship? Answer these questions to determine the returns and risks. An enterprise that doesn’t have standardized processes, manuals, and tools in place will be much harder to take on. On the bright side, you may also view this as an opportunity to acquire the business at a lower cost. Evaluate what other areas of the business are underutilized. Use your skills, knowledge, and resources to make further improvements.

Looking for investment opportunities starts with introspection. Create a list of your strengths and expertise. You’ll get an idea of which businesses and industries will match your skillset. Search for business listings and online databases for the niche you’re interested in. Reach out to the owners of the businesses and build relationships with them and other industry specialists. In time, you’ll find a cash-flowing business to invest in that will be a good fit for you.

Links and Resources:

Today on The Wealth Secrets Podcast, Sean Adams talks to Neil Twa, who is the founder and CEO of Voltage Digital Marketing. He has been launching, operating, and growing private label e-commerce businesses since 2012. As of date, he has sold over $100 million in physical products primarily through the Amazon FBA sales channel. Neil shares his blueprint for how to build an online business that can generate a passive six-figure income in just 12 months.

[03:03] Getting to know Neil Twa
[06:37] Why build brands on Amazon?
[10:56] Fulfillment by Amazon
[14:45] Criteria for physical products
[19:20] Sourcing and manufacturing of goods
[23:33] White label VS private label products
[25:36] “Found money” on Amazon
[28:41] Voltage Business Builders
[33:25] Pay as you profit model
[39:11] Voltage Management Services
[44:34] Opportunities and the future of e-commerce

Neil’s interest in building e-commerce private label businesses started in 2010. At that same time, Amazon was an up-and-coming platform that showed a lot of promise. He realized that Amazon was a giant search engine for products, with lots of consumers using it as their go-to shopping website. The platform attracted a lot of organic traffic and product listings were easily visible. Neil and his partner Reed Larson, found a lot of success in building businesses with brands on Amazon. His company, Voltage Digital Marketing, grows brands with or even for sellers.

The success of an e-commerce-based business will depend on its product. A product must provide unique value to the buyer. The ideal consumer is someone who is solution-oriented, rather than someone who is just looking for the cheapest option. For these reasons, the optimal products to sell are usually high-end goods that customers are passionate about. Another criterion is that products must have at least a 40% profit margin.

Aside from the ease of marketing, Amazon also smoothens a business’ operations through its Fulfilment by Amazon (FBA) program. From storage, delivery, to customer service, the FBA program handles all the logistical concerns for the seller. Business owners have more time and energy to get to know their customers. Revenue can be doubled if you have a good understanding of your target market.

Links and Resources:

Neil’s Mobile: 4174134209

Today on The Wealth Secrets Podcast, Sean Adams talks to Mikkel Thorup, the bestselling author of Expat Secrets and the host of The Expat Money Show podcast. He has lived in 9 different countries and has been constantly travelling the world for over 20 years now. Mikkel shares his experiences in living abroad with zero taxes and why you need to diversify your portfolio with off shore investments.

[02:53] What is an Expat?
[05:51] Getting to know Mikkel
[10:58] Why live as an expat?
[14:43] Remote work is more viable now than ever
[19:01] Eliminate tax using the FEIE Rule
[26:46] Off shore asset protection and diversification
[37:56] Protection from litigations and politics
[42:31] Foreign investment opportunities
[45:38] Work with experts you trust

Mikkel started travelling since he was 16 years old. Formal education didn’t suit him so he decided to drop out of school from a young age. Instead of learning inside the classroom, he was learning through his own exploration of the world.

Due to COVID-19 pandemic, majority of the workforce has shifted to remote work. This change has prompted people to re-design their life not by society’s standards but by their personal goals. There are many advantages to living overseas as an expat. You have the freedom to seek out exciting experiences, to live healthier, to learn new languages, and much more. Living abroad also allows you to reduce tax bills to zero. You can do this by moving to a low-income tax state and by qualifying for the foreign earned income exclusion (FEIE) program. Without the burden of tax, you can live a more comfortable life abroad.

Another way to build wealth is to diversify your portfolio with foreign investment opportunities. You can buy real estate and precious metals, open off shore bank accounts, or even incorporate a company overseas. Litigators and creditors are discouraged to come after foreign assets because of the differences in language, currency, and laws. Before attempting to move or invest, consult with trusted specialists because mistakes can have severe consequences.

Links and Resources:

Today on The Wealth Secrets Podcast, Sean Adams talks to Adam Zach, the co-founder of Set Your Rent, a creative homeownership and real estate investment company specializing in rent-to-own programs. They talk about why most mortgage applications get denied, rent-to-own-lease agreements, and business loans versus conventional loans.

[03:01] Getting to know Adam Zach

[05:30] Adam's first encounter with real estate investing

[07:00] How to invest in real estate

[10:28] Why would a mortgage get denied?

[14:25] Risks of quitting your job and jumping into entrepreneurship

[16:49] All you need to know about private mortgages

[19:34] Owner financing and the prequalification process

[21:33] Rent-to-own-own lease agreements

[25:28] Risks and realities of the contract for deed

[31:40] Business loans versus conventional loans

[36:10] Real estate investment and creating value

[39:05] Passive real estate investing

[42:50] Investing in the rent-to-own space

Picture this scenario, you've found your dream home and applied for a mortgage, only for your application to be denied. A mortgage application denial is the one thing most would-be homeowners dread. Interestingly, most employed people assume that everyone can get their mortgage applications approved. Yet, one in every nine loan applications to buy or refinance a home is denied. Adam explains that denial can be due to various reasons, including insufficient down payment, no credit history, a poor credit score, or too much existing debt. 

With this in mind, Adam came up with a brilliant idea to make money off mortgage denials. The fact that banks will willingly finance him puts him in a prime position to owner-finance a property. Owner financing is a transaction in which an investor finances the purchase of a house for a third-party entity/person. Adam explains that owner financing can be advantageous for sellers and buyers since it eliminates bank interruptions. Moreover, the financier gets to make a profit that would have otherwise gone to the bank.

However, this type of transaction packs much higher risks and responsibilities for the financer. First, there is the probability that the homeowner can default. The first red flag is that the buyer can't qualify for a traditional mortgage. This is why Adam and his team perform in-depth background checks on potential clients to assess their incomes, down payment situation, rental history, and credit score. He further adds that although credit scores are considered during background checks, they rarely decide based on a client's credit score.

Links and Resources

Today on The Wealth Secrets Podcast, Sean Adams talks to Tony Frischknecht, a forward-thinking cannabis entrepreneur and the founder of Plant Problems-- a renowned company in the cannabis growing, distribution, processing, and investing space. We talk about the many different ways an investor can get involved in the cannabis industry, regulations in different states, and the negative stigma around cannabis production and use.

[02:43] Tony’s entrepreneurial journey

[11:15] Tony’s transition from medical to commercial cannabis production

[14:30] Business opportunities in the cannabis industry

[17:23] Cannabis wholesale and retail opportunities

[19:40] How to build a vertically-integrated marijuana business

[21:40] Pros, cons, and opportunities after cannabis legalization

[34:31] Breaking the stigma around cannabis use and production

[37:50] The different forms and uses of marijuana

[42:13] What you need to know about cannabis real estate

[47:15] Hands-off investing in the cannabis industry

[52:39] Regulations on cannabis production, research, and recreational use

[54:01] How to invest in cannabis stocks

Tony’s Transition from Medical to Legal Commercial Cannabis

A few years after delving into the world of medical cannabis production, Tony saw an opportunity to scale his business and dive into wholesaling. Several of his clients could plant cannabis for medicinal purposes but lacked the skills, knowledge, and space. With that, he expanded his business to sell to his ever-growing number of clients and also supply local stores. Furthermore, the recent wave of legalization of recreational marijuana use in several states supercharged the growth of his business.

According to Tony, gone are the days when cannabis growers were associated with disorganized underground economies. Today, marijuana production is all about state-of-the-art agricultural facilities that can produce safe, regulated, and high-quality products for the lucrative and fast-growing American market.

Tony goes on to add that hands-off business opportunities in marijuana production are also on the rise. Professional service providers such as lawyers, digital marketers, and accountants can easily pivot into the cannabis space. These service providers are crucial for the marijuana industry, given the diverse regulations and preferences from state to state.

Links and Resources

Today on The Wealth Secrets Podcast, Sean Adams talks about the different dimensions to consider before making an investment. Focusing solely on the rate of return is not enough to help you build real wealth. Sean discusses in further detail other investment metrics that will help you make better financial decisions and strategies.

[00:41] Four factors to consider before investing
[02:33] Investing in the S&P 500 VS cash value life insurance
[06:19] Liquidity, leverage, and investment opportunities
[10:13] Minimizing tax on investment returns
[11:54] Protection and legacy planning

The rate of return is an eye-catching metric for most people. Factors like guaranteed rate of return, tax advantages, liquidity, and protection are just as important to consider. Let’s compare a long-term investment in cash value whole life insurance against a long-term investment in the S&P 500. In this example, we have annually invested $19,500 in both life insurance and the stock market from 1990 to 2020.

Over a span of 30 years, the stock market investment will significantly outperform the life insurance investment with a yearly growth rate of 11.5% and 4% respectively. The S&P 500’s annual return rates are very volatile, with some years showing growth and other years showing losses. However, this isn’t the case with cash value life insurance. Instead, there is a 4% guaranteed return since it isn’t affected by the stock market.

Although the returns from the stock market are great, you do not have immediate access to your money. Cash value life insurance policies are not the end investments but are more often used as storage tools. You can take a policy loan against the insurance balance and use the money for other investment opportunities. Meanwhile, the cash value will keep earning interest in its full amount. In a way, you’re growing your money in two places at once.

Another important factor to consider is the tax bills on your investment returns. The interest earned in insurance policies are not categorized as income so it’s tax-free. Insurance policies are private contracts between the company and the policy owners. As such, they are not declarable assets. Storing your money in policies will keep it safe from litigations, bankruptcy, and divorce. Should you face an untimely death, insurance policies pay out a death benefit to your family.

Connect With Sean:

Today on The Wealth Secrets Podcast, Sean Adams talks to Michael Morawski, a multi-family real estate coach with 30 years of industry experience. Mike is also an author, entrepreneur, trainer, public speaker, and personal coach. He shares the story of how he built several successful businesses, how he lost it all during the recession, and how he bounced back from the lowest point in his life.

[01:55] Getting to know Mike Morawski

[05:50] People are more than willing to help

[09:33] We don’t need to know everything

[14:06] How Mike handled The Great Recession

[22:29] Don’t let pride, ego, and greed control you

[24:29] Pay attention to the details

[29:39] Screen the people you work with

[35:28] 10 years in prison: “Do the time or let the time do you”

[39:18] Bouncing back with gratitude and a new mindset

Mike got his start in real estate after meeting a successful agent who became his mentor. He taught him the ropes and had a very successful first year, selling 78 houses in total. Eventually Mike built his own team that specialized in selling residential property. In 2005, Mike saw a shift towards apartment syndicate investing and did the same. He built a property management company that handled thousands of units. In the process of scaling his company, he made the mistake of not paying enough attention to the details.

When the recession hit in 2008, some of his businesses were greatly affected. In an effort to try and save it, he inadvertently committed fraud by moving money between his companies. This landed him in federal prison for 10 years. He admits letting his pride get the better of him. Instead of coming clean to his investors about the companies’ state, he tried to find a solution that did not work in his favor.

During the early days of his sentence, Mike felt lost and defeated. But through the encouragement of a trainer, he changed his perspective. While serving time, he exercised, wrote a book, attained a bachelor’s degree, and taught ethics among other endeavors. He maximized his time in prison and has come out as a better man, with a renewed sense of gratitude and purpose.

The key takeaways to Mike story are: don’t be afraid to ask for help, pay attention to tiny details, screen the people you work with, and show more gratitude.

Links and Resources

Today on The Wealth Secrets Podcast, Sean Adams talks to Adam Kol, a couples financial coach with over a decade of experience as a certified mediator, communication coach, and financial advisor. Adam helps couples make sure the money conversation doesn't get in the way, leading to more financial security, clarity, and peace of mind. They discuss financial disparity in relationships, having the money conversation with your partner, and emotional attachment to finances.

[02:30] Getting to know Adam Kol

[06:04] How to Start a Conversation About Finances

[09:42] Defining your Money Relationship Story

[16:50] How to Have the Money Conversation with your Partner

[21:56] Spenders Versus Savers in Relationships

[26:09] Building Financial Equality in a Relationship

[29:20] Tackling Financial Disparity in Relationships

[38:50] Why your Need to Respect Your Partner's Financial Opinions

How to Have the Money Conversation with Your Partner

Most couples never know the appropriate time to start talking about finances. But, when your partner's finances become intertwined with yours, then it's time. Whether you're moving in together, getting married, or getting serious about the relationship, there will come a time when you will need to have the money talk.

Spenders Versus Savers in Relationships

When you go out on a first date with someone, things like their credit scores or how much debt they have often never cross your mind. You probably want to know a little about their personality, their likes, and pay attention to how they treat you. However, when things get a little serious, their financial situation starts getting the much-needed attention. So, what happens when you find out that your partner is a spender and you are a saver, or worse, they are deep in debt? First, statistics have proven time and time again that money can dent any relationship; thus, it would be best to talk about finances as early as possible. Second, opposites tend to attract, and you're likely to marry a spender if you're a saver. The good news is that spenders and savers can coexist quite happily by complementing each other to create a balance in their financial management.

Links and References

Today on The Wealth Secrets Podcast, Sean Adams talks to Lane Kawaoka, real estate syndicator and host of the Simple Passive Cashflow Podcast. Previously, he worked as a licensed engineer for 12 years. During that time, Lane started investing in real estate. As he grew his network, he eventually transitioned to multi-family real estate and syndicate investing. Now as a financial mentor, he helps his clients generate more passive income through high level investing.

[02:22] Getting to know Lane Kawoaka

[03:47] Residential Real Estate is Not Scalable

[07:06] Grow Your Net Worth Through a Larger Network

[10:14] Getting Started with Syndicate Investing

[16:28] Where to Invest and What Markets to Focus on

[19:51] Why Invest in Multi-Family Real Estate?

[25:02] The Government Incentivizes us to Invest in Certain Places

[27:18] Cash Value Life Insurance as Opportunity Funds

[34:28] Returns and Appreciation from Syndicate Investing

When Lane had a full-time job as an engineer, he invested in residential real estate for another source of cash flow. With the additional income, he started investing in more property. Eventually, he realized that investing in single family housing would be hard to scale due to the attention required to manage both the properties and the tenants.

Through networking, he discovered the world of private placements and syndications. Syndications pool together investors in order to fund an investment. A general partner (GP) oversees the whole investment while limited partners (LP) are passive stakeholders. LPs do not have any risk of debt since the GP signs his/her name on the contracts.

If you’d like to start investing as a limited partner, you need to know how to identify legitimate from bogus deals. A background in real estate is helpful but ultimately, your network will be your source for reliable information. Lane also advises LPs to invest no more than 5-10% of their net worth in a single deal.

Links and Resources

Carter Malloy is the founder and CEO of AcreTrader, a proprietary online investment platform that enables investors to purchase shares of farmland online while managing all aspects of farm management, reporting, and administration. Over the past 12 months, AcreTrader has doubled its employee count, more than tripled its investor pool, and increased the total funds raised on the platform by almost 12 times.

Carter grew up in a farming family and has a lifelong passion for investing and agriculture. Before AcreTrader, he spent five years as a partner at a $1 billion equity investment firm.

[02:29] Getting to Know Carter Malloy

[04:08] The Future of Farmlands in the U.S.

[06:28] Portfolio Diversification Through Farmlands

[09:00] The Advantages of Investing in Farmland

[11:31] How the AcreTrader Platform Links Farmers to Investors

[13:55] Who is an Accredited Investor?

[15:49] How Carter and his Company Source Farmland Investments

[17:44] Characteristics of an Exceptional Piece of Farmland

[20:32] Leasing Farmland in the U.S.

[22:18] Typical Returns on Farmland Investing

[25:10] How the Pandemic Positively Affected the Agriculture Space

Future of Farmlands and AgriTech in the U.S.

Increased market volatility and the unexpected Covid-19 pandemic have forced investors to look for alternative investment opportunities that can be resilient throughout an economic cycle. With the number of unexpected market events seemingly on the rise, farmlands are gaining more mainstream acceptance by guaranteeing attractive long-term annualized returns. Interestingly, farmland returns have historically been highly resilient throughout challenging economic periods.

Advantages of Investing in Farmland

With growing urbanization, there are fewer and fewer acres available in the U.S. for farmland. However, the global population is growing, which comes back to our earlier point on supply and demand. There’s less land but more demand for the food from that land. No investment is without risk, though. The good news is that farmland is mostly not correlated with the stock market and only ever benefits from inflation.

During asset allocation, investors are always on the hunt for opportunities that have a low correlation. From an investment standpoint, correlation refers to how often the returns on two investments can be affected by the same market movements, either up or down. Farmland typically exhibits no correlation with the more famous asset classes such as stock and bond markets.

Links and Resources

Today on The Wealth Secrets Podcast, Sean Adams talks to Peter Lount of Ascendant Financial. They discuss the importance of asserting control over one’s financial future by adopting good habits and effective systems.

Peter experienced firsthand how conventional financial tools have failed to achieve his desired results. By becoming his own banker, he now leverages his own cash for maximum returns.

[02:37] Exchanging Time for Money
[05:26] The Problem with Conventional Wisdom
[09:51] Take Control of Your Financial Future
[16:07] Become Your Own Banker
[22:57] Paying Ourselves Back
[26:17] Estate Planning & Generational Wealth

Exchanging Time for Money

At his old job, Peter was earning a six-figure salary. Even with a large income, he and his peers felt like they couldn’t escape the proverbial rat race. Most of them, including Peter, started side hustles in order to make multiple streams of income. In a sense, they were exchanging hours for dollars. However, adding more revenue didn’t necessarily solve their problems. Within such a high paced work environment, they had little time or energy to look into alternative solutions to grow their savings.

The Problem with Conventional Wisdom

As an employee at a big corporation, Peter had to sign up for government benefits. When he moved jobs, the same thing happened. It didn’t feel right to him because it felt like he was losing control over his money. When he finally found a way to get out of the system, he felt empowered.

Government qualified plans are marketed as financial programs that help us get ahead. But if you think about it, the way it works doesn’t seem to work in our favor. You provide them capital but the government sets all the rules and leaves you with very little gains and control.

Take Control of Your Financial Future

The education system lacks courses on financial literacy. As a result, most of us grow up to believe that we are bad with numbers. When we are presented with simple financial products, we buy into it out of convenience. This is exactly what big corporations want.

To stop this cycle, you must learn the basics of personal finance. Take control of your financial future by doing your own research. If you outsource decisions, you won’t get the results that you want. Know what your goals are and take a closer look at the processes behind products or investments. By learning about how money works, you can make decisions that will be in your best interests.

Mark Podolsky is the CEO and founder of The Land Geek, the foremost authority on buying and selling raw land in the US. As an investment banker, Mark dreaded work. He found himself miserable and micromanaged in the reality of his solo economic dependency. So. with $3000, in the early 2000s, he bought his first parcels of raw land. Now, in addition to The Land Geek, Mark owns Frontier Properties, a firm that has created a unique asset class of investing in raw land. He is also the founder of geekpay.io, the author of Dirt Rich: How One Ambitiously Lazy Geek Created Passive Income in Real Estate Without Renters, Renovations, and Rehabs, and the host of The Art of Passive Income podcast.

[00:40] Introducing Mark Podolsky

[02:54] Mark’s Background and How He Found Raw Land Investment

[08:18] The Raw Land Investment Model

[13:15] Raw Land and Neighbours as Buyers

[18:49] Land Investment, Scalability and Economic Downturns

[23:50] Initial Impediments to Structuring Your Loans

[27:55] Outsourcing, Building Systems and Scaling

[29:09] The Sustainability of Land Investment

[30:30] The Effect of the Pandemic on Land Investment

[32:58] The Future of Land Investment

According to Mark, land is an inefficient market. No one really knows what the value is, and it is determined only by what the buyer and seller agree on at any given time. His investment model begins with taking the lowest estimated value of a plot of land and dividing that number by four. The quotient becomes his initial offer amount to the potential seller.

Mark believes that any model of creating wealth should be scalable. Following advice from a particularly successful entrepreneur, Mark learned to make his business self-sufficient through building systems and teams that kept the gears turning when he couldn't. This scalability allowed Mark the freedom and time that he had searched for, for decades. After 21 years, Mark is happy to work in a niche that meets all his needs. Land investing solved his money and time problems and released him from the clutches of solo economic dependency.

Links and Resources

Sarry Ibrahim is an expert in using life insurance as an asset class and protecting all your assets. He is a financial advisor and helps high-net-worth individuals, real estate investors, business owners, and retirees grow and protect their wealth predictably and safely.

Sarry founded Financial Asset Protection after learning about the Infinite Banking Concept (also known as the Bank On Yourself Concept). He saw this as an opportunity to save retirement accounts, real estate properties, and businesses from market failures and other risks. He earned his MBA from Keller Graduate School of Management in Chicago, IL, and has consulted companies like Blue Cross Blue Shield, Allstate Insurance, Humana, and Cigna Healthspring.

[01:03] Introducing Sarry Ibrahim

[02:09] Sarry's Background and

[03:53] Life Insurance as a Financial Strategy

[08:39] Integrating Life Insurance into a Financial Plan

[11:19] Protection and the Accelerated Death Benefit Rider

[14:30] Tax-Free Death Benefits and Building Generational Wealth

[15:32] Life Insurance and Protecting Your Assets

[18:38] Financial Asset Protection

[29:10] The Drawbacks of Misappropriating Life Insurance Policies

Life insurance as a part of the plan

For the most part, long-term care insurance is a costly product, but clients over the age of 55 can and should get long-term care insurance. Life insurance allows you to use your death benefit for long-term care expenses. Clients can then use their death benefit to cover life insurance and leverage some of it for their long-term care needs through the accelerated death benefit rider.

If you develop a chronic or critical illness, you can draw from your life insurance policy's death benefit an amount greater than the value of your policy. This is a particularly attractive option when you consider that you are far more likely to develop an illness or disability than you are to pass away.

Links and Resources

Bridger Pennington is the founder and managing director of Black Bridge Holdings, a privately run debt fund with over 290 deals in 38 states over the last two years. He also runs Investment Fund Secrets, where he helps everyday people without Wall Street experience start and scale their own funds. We talk about why you need to start or invest in a fund, funds as alternative investment opportunities, and how to raise fund capital.

[02:43] Getting to Know Bridger Pennington

[04:23] How Bridger Broke into the Funds Space

[17:01] Why you Need to Start Investing in Funds

[20:35] Funds as Alternative Investment Opportunities

[23:15] How Fund Managers Structure and Run Funds

[28:25] How to Manage Other People's Money

[37:20] How to Raise Fund Capital

[44:50] The Future of Funding

What is an Investment Fund?

Unfortunately, not many people talk about funds and how lucrative managing funds can be. First, a fund is a pool of money where investors put money into the pool, and fund managers take that money to make investments. Once the assets make money, it flows back to the pot and is split between the investors and the fund manager. Compared to other investment opportunities, investing in funds is less complicated. You deposit your money, wait three to ten years, and get a cheque every quarter for the entire period. Funds are one of the most passive investment opportunities in the market right now.

Funds as Alternative Investment Opportunities

The first thing that comes to mind when people think about investing is real estate or stocks. While these forms can be lucrative, the best deals are struck, say in real estate, when the investors go big. What do we mean by that? When investing in real estate, most people don't have the cash to go after 100-unit properties and are therefore forced to focus on 2 to 3-unit options, which is often never lucrative. In contrast, fund managers pull together different investors and go after the big 100-unit properties with better deals and less competition.

Links and Resources

David C. Barnett is a business valuation and acquisition specialist whose primary focus is on small businesses and local investing. He is also the author of three best-selling business books, one of which will be the basis of today’s discussion. We talk about local investing, why small businesses struggle with financing, and the future of local investing.

[03:30] Getting to Know David C. Barnett

[07:40] Why Small Businesses Struggle to Get Financing

[11:16] The Downside to Business Loans

[12:40] Local Investment Opportunities

[17:30] David’s First Encounter With Profitable Local Investment Opportunities

[22:37] Local Investment as an Alternative Investment Option

[24:09] Vetting Process before Closing a Deal

[29:20] Importance of the Human Element During Deal Making

[32:30] Risks Associated With Local Investments

[38:10] Creative Strategies to Grow Your Wealth

[43:18] Unique Local Investment Opportunities in a Post-Pandemic World

[48:56] The Future of Local Investing

Why Small Business Struggle to get financing

Over 95% of all businesses in the country are small businesses, yet banks and financial institutions are often unwilling to finance them. Why is this the case? Most small businesses are owner-dependent, which means if something were to happen to the owner, the business would practically crumble. The other thing is that small businesses are often built upon traditional business models that don’t cushion them during tough times.

Local Investment Opportunities

With small businesses struggling to secure loans, investors can take advantage of this financial gap by financing these businesses at an interest. Mind you, we’re not talking about loaning people with poor credit or exposing yourself to high-risk situations. We’re only after great deals that have higher growth potential and low risks. These businesses can include specialists who need expensive equipment to perfect their crafts. Nonetheless, you need to create a win-win situation where the borrower saves money on interests and gets quality equipment while guaranteeing your security. The more successful a borrower is, the lower your risks and the more transactions you can pull off together

Links and Resources

Today on The Wealth Secrets Podcast, Sean Adams talks about life insurance. Well known financial advisors like Suze Orman and Dave Ramsey have deemed all life insurance products to be bad investments. But are they wrong?

Sean debunks their blanket statements by going into detail about the different types of policies and insurance companies. More importantly, he explains how the wealthy use life insurance as strategic investment tools.

[03:58] Types of Life Insurance
[07:40] Why is There an Aversion to Whole Life Insurance?
[10:34] Find the Right Advocate for You
[13:13] Cash Value and Loans from a Leveraged Life Account
[17:05] Stock VS Mutual Insurance Company
[21:40] Look for Tailored Advice and Tips

Types of Life Insurance

Term life insurance provides protection for a set number of years from unexpected death. It is very affordable and easy to put in place. The caveat is that it does not have a large death benefit. Financial gurus often advocate for term life insurance as a low cost, convenient safety net. It’s worth stating that less than 1% of term policies are ever paid out. Premature death is unlikely to happen. Once the term is over, the premiums you paid will not be returned and you are no longer covered by the policy. Getting a term life insurance is like renting a house. It’s an expense that you pay every month but there is no earning potential.

The Aversion to Whole Life Insurance

It’s understandable why experts like Suze Orman or Dave Ramsey dislike whole life insurance. There are lots of stories about clients getting ripped off by inflated premiums. Unfortunately, this usually happens with traditional whole life insurance policies. On average, it takes about 10-20 years before you can reap the equity from such policies. With cash value whole life insurance policies, 10% of your payments go to the premium while 90% of it goes to the cash value.

Find the Right Advocate for You

Choose an agency that will be transparent with you. In this way, you can protect your best interests. The wealthy have the best lawyers, agents, and professionals that help them understand financial products. With the expertise they have, they are able to structure policies in a way that benefits them the most. Similarly, you should look to partner with the right people that can help you take advantage of financial tools.

Look for Tailored Advice and Tips

Financial gurus have a large following, most of which are average earning Americans. Their main goal is to help people get out of debt and to provide them with cost effective solutions. Bear in mind that such advice is not applicable to individuals who have above average earnings. Instead of heeding general counsel, look for tips that are suited to your specific circumstance. Always do your own research and take everything you read or hear with a grain of salt.

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Today on The Wealth Secrets Podcast, Sean Adams talks to Jorge Newbery, Founder and CEO of AHP Servicing, a crowdfunded company that purchases non-performing mortgages from banks at huge discounts. We discuss how he runs a successful for-profit business, the rise and fall of his real-estate empire, and how the average investor can invest in companies through crowdfunding.

[04:06] How Jorge got into Entrepreneurship

[06:30] How Jorge Built a Multi-Million business and Lost it in 18 months

[24:43] The Pivotal Moments in Jorge's Entrepreneurial Journey

[34:13] Why Banks Detest Helping Homeowners

[46:30] How the Average Investor can Utilize Crowdfunding to Grow Their Portfolio

How Jorge Built his Real-Estate Business and Lost it in 18 Months

Unlike other kids his age, Jorge was already selling ice cream to kids in his neighborhood at age 12. By the time he was 16, he had a recording studio but hit his first jackpot when he ventured into real estate. He started out with 4 units and eventually bought an 1100-unit flat that was one of the country's largest apartment complexes.

His downward spiral started when an ice storm rendered his building powerless and therefore not fit for human occupation. HUD terminated all his contracts, took over the property, and left him with a $26 million debt. He spent 13 years building his empire, yet it took only 18 months to lose everything and be stuck in debt.

The Pivotal Moments in Jorge's Entrepreneurial Journey

By this time, Jorge was practically financially crippled and spent most of his time battling creditors. Fortunately, he never filed for bankruptcy and came out of the experience with a wealth of knowledge on dealing with overwhelming debt. He realized that many creditors make mistakes that can be used when faced with foreclosure. And that's how he started his business. Jorge helps homeowners keep their homes by offering alternatives that protect them from foreclosures and gives them adequate time to settle their debts.

How The Average Investor can get Into the Non-Performing Mortgages Space

For the longest time, the average investor has been blocked from lucrative investment opportunities because of their shallow pockets. That was until the early 2010s when crowdfunding started taking root. With crowdfunding, a low-income investor can invest money in a business and get guaranteed returns over a specified period of time. In Jorge's case, his company allows people to invest in the company with as little as $100.

Links and Resources

Today on The Wealth Secrets Podcast, Sean Adams talks to Denzel Rodriguez, a finance geek who's passionate about helping people get their finances right. They talk about velocity banking, replacing bad debt with good debt, and how to use velocity banking to grow your wealth.

[03:34] Getting to know Denzel Rodriguez

[06:44] How Denzel Transitioned from Sales into the YouTube Space

[11:55] Denzel's Experience with Personal Finance

[18:20] What is Velocity Banking

[25:45] Misconceptions Surrounding credit and debt

[35:06] Real-life Examples of Velocity Banking

[47:50] Why Velocity Banking is More Efficient Than Traditional Debt Repayment Strategies

[53:50] How Debt-free People Can Utilize Velocity Banking

How Denzel Transitioned from Sales into The YouTube Space

After high school, Denzel got into the sales and marketing space. Unfortunately, he lost his job and his primary source of income in 2018. This is when it hit him that he had spent five years of his life working for money instead of the opposite. His friends had in the past told him that he had an excellent voice, and so he used that plus his sales experience to launch a YouTube channel. Selling is all about explaining, and that's how he managed to attract followers to his space. He explains financial literacy topics to the average person in the easiest possible way.

What is Velocity Banking

Velocity banking is how banks use money to accelerate wealth. Think of it this way, 10 years ago, a dollar could get you a slice of pizza. Fast forward to today, the same slice of pizza costs two dollars or more. We're buying the same commodity, using the same dollar, but the pizza's value has changed. Thus, you need to retain the value of your dollar or make your dollar work for you while spending it. And the way to do that is by utilizing credit and debt. 

How Debt-Free People Can Utilize Velocity Banking

Banks love giving debt-free people money because they, most of the time, don't need it. On the other hand, once they realize you're in desperate need of money, they see it as an opportunity to make money off your predicament. That's why you find the same bank offering two different people the same amount of money at different interest rates.

Links and Resources

Today on the Wealth Secrets Podcast, Sean Adams talks to Scott Sciberras, the co-founder and CEO of Whiskey and Wealth Club, a company aiming to bridge the financial gap between distillers and the public. They talk about investing in rare Scotch and Irish whiskeys, why whiskey is a unique asset class, and why you should consider investing in the whiskey market.

[03:19] Scott’s Journey into Entrepreneurship

[06:32] Why Scott Decided to Focus on Alternative Investing

[08:50] How Whiskey and Wealth Club Conducts its Business

[15:23] Why Whiskey is a Unique Asset Class

[18:20] Knight Frank’s Luxury Investment Index

[22:38] Why the Whiskey Market Attracted Massive Interest in 2020

[29:07] How COVID-19 Affected the Whiskey Market

[32:20] Whiskey Investment Exit Strategies

[35:40] How to Invest in Whiskey

Why Scott Decided to Concentrate on Alternative Investing

From a very young age, Scott’s father instilled in him a passion and understanding of investing. However, he decided to pursue electrical engineering in college, a path he later realized was a mistake. As time went by, he settled in marketing and customer service, which later helped him launch his first telecommunications company. The sale of the company provided the needed capital to venture into forex trading and whiskey investing.

How Whiskey and Wealth Club Conducts Its Business

Whiskey distillation is a risky business. The hard work, preparation, and patience required throughout the process can be a little overwhelming. For example, Irish and Scottish whiskey has to stay in wood for a minimum of three years. Moreover, it would require an additional six to ten years before a cask can attract significant returns on investments. Although investing in whiskey has been around for centuries, it has, for the longest time, been for the select few. With that, Scott and his company saw an opportunity to bridge the gap between distillers and the public, opening doors for private investors to get in on the market.

Why Whiskey is a Unique Asset Class

Ever since the market crash of 2008, the public got fed up with traditional investment options such as stock markets and real estate. Yet, this hasn’t stopped the media or financial institutions from promoting these conventional investment opportunities. The thing to note here is that since 2000, there have been four significant stock market changes that affected practically every industry worldwide. In contrast, in the same 20-year period, the whiskey market has witnessed a steady incline of about 17.8%, that wasn’t affected by markets or government interference.

Links and Resources

Today on The Wealth Secrets Podcast, Sean Adams talks to Andrew Mastin, the co-founder of @LBI Limited, a rare and exotic car brokerage firm. They talk about why classic cars are a valuable asset, where to find classic cars, and how you can make money by investing in rare and exotic cars.

[02:15] Andrew’s Journey into Entrepreneurship

[14:52] How to Balance Your Passion and Your Profession

[17:44] Why Classic Cars are Considered an Asset

[22:55] Defining an Investment Vehicle

[24:36] Factors That Drive Value in Classic Cars

[29:08] How to Get Into The Classic Cars Business

[34:35] Where to Find Classic Cars

[39:30] How Andrew and His Company Close Deals

[42:50] Andrew’s Take on Where The Market Is Headed

How to Mix Passion and Business

What started as a hobby quickly grew into a passion, and before Andrew knew it, he was living off of classic cars, and that’s where it gets tricky. Balancing between passion and professionalism can be overwhelming because you have to factor in the emotions. The people who know how to integrate their passions into a business almost always end up being successful. And if you can’t, you can always seek counsel from financial advisors before investing in something.

Why Classic Cars Are Considered an Asset

After the market collapse of 2008, many people realized that investing in intangible assets, such as stocks, is a precarious business. With that, investors took to other forms of investment that saw a boom in other asset classes, namely real estate and classic cars. This is because people started seeing the value of tangible assets that can attract value in any part of the world and require little to no expertise.

Where To Find Classic Cars

The easiest way to land classic cars is by being curious. Whenever you’re driving through the neighborhood or on your morning commute, take a look out the window and into driveways and garages. If you see something exciting, knock on the door and ask if you can take a look at it. Car enthusiasts rarely sell, but once in a while, you’ll land deals that are too sweet to resist.

Links and Resources

Today on The Wealth Secrets Podcast, Sean Adams talks to Michelle and Doug Myers, the founders of Pink Callers. Their company provides remote customer service for home service businesses. Michelle and Doug share the story behind Pink Callers and how they’re growing it through affiliate partnerships and networking. They also talk about what it’s like to run a business with your spouse and the importance of setting boundaries.

[01:07] The Evolution of Pink Callers
[12:26] Knowing Your Customers at a Deeper Level
[14:46] Challenges in Scaling Pink Callers
[20:00] Importance of Documentation and Internal Communication
[29:40] Managing a Business as a Married Couple
[39:21] Tips for Working from Home
[43:20] How to Network
[49:13] Growing a Business Through Affiliate Partnerships

The Evolution of Pink Callers

Providing customer service was already a big help to Pink Caller’s clients. As the business grew, more clients requested for additional assistance. The complexity of communication between home service businesses and customers continues to grow. Eventually, Pink Callers branched out to include more services like appointment scheduling, lead organization, payroll management, and more. Pink Callers recognizes that it creates value for clients by helping them solve all sorts of business problems.

Michelle and Doug as Married Business Partners

For Michelle and Doug, their marriage always comes first. They understand each other’s strengths and weaknesses and are not afraid to own up to them. By playing to their strengths, they contribute much more value to the company. They recognize that there is always room for growth and proactively seek ways on how to improve.

You don’t have to beat yourself up over tasks you’re not good at. It’s better to let someone else handle a job you’re not suited for. Business owners fail to realize that they are the ones slowing progress by failing to delegate. If the task cannot be delegated or automated, delete it.

Leveraging Affiliate Partnerships to Grow a Business

Instead of spending on advertising and marketing, Pink Callers leverages different audiences and partnerships to grow. Michelle and Doug find like-minded individuals and organizations who create positive value. Whether it’s speaking at conventions, attending meetings, or entertaining interviews, they prioritize these activities to build connections. Pink Callers gains clients not because of marketing, but because of who they are as a company. Clients often gush about Pink Callers and would make referrals. In a way, they act as brand ambassadors which help drive organic growth. Relationships are the key to Pink Caller’s success.

Links and Resources

Today on The Wealth Secrets Podcast, Sean Adams talks about outsourcing and delegation as means of leveraging our time. The wealthy invest in systems and teams so that they have more time to focus on more important tasks. 

[02:10] Time Management, Productivity, and Outsourcing

[04:47] Why Business Owners Fail to Delegate

[09:55] The E-Myth

[10:31] Sean’s Experience with Delegation

[13:24] All Tasks Can Be Simplified into a Checklist

[15:50] The Difference Between Effectiveness and Efficiency

[19:12] The Four D’s of Creating Systems

Time Management, Productivity, and Outsourcing

Outsourcing work is very common among the vast majority of the rich. They delegate errands so they can give more attention to high value tasks. Being preoccupied with day-to-day responsibilities leaves no room for strategic planning or decision making. Investing in teams and systems that create quality output saves a lot of time.

To know which tasks you can delegate, ascribe a dollar per hour amount to everything you do. This allows you to identify which activities drives results. You should be devoting your time and effort into those important tasks and assign the rest of your routine tasks to someone else. In this way, you are optimizing your time and delivering better value.

Why Business Owners Fail to Delegate

Business owners often fail at delegating work because they do not know how to create an effective system or they simply don’t have the time for it. The absence of a system sets your business up for failure. You don’t need a large team to start outsourcing help.

When you delegate without a working system, two things can happen. The first possibility is that you feel it’s even more difficult to onboard someone else. In effect, you continue doing the work yourself. The second possibility is that responsibilities are turned over without any guidelines leaving the employee at a loss for what to do. 

Creating Systems and Workflows

Creating systems is about defining the who, what, when, why, and how things get done. Write down all of your business’ processes: from the simple to the most complicated tasks. A workflow is a lot like a user manual. Just like how gadgets and cars have manuals, systems must also contain all of the business’ essential information. 

Today on The Wealth Secrets Podcast, Sean Adams talks about a daily financial activity that we don’t rarely think about banking. He explains the way that banks make money and how we can use the same insider knowledge to increase our funds. Not only that, but this strategy is often used by the rich to protect generational wealth.

[02:24] How Banks Make Money

[05:18] Banks Only Invest in Safe, Convenient Opportunities

[10:01] There are Better Ways of Storing Money

[12:39] Remove Banks as Middlemen

[14:54] Cash Value Life Insurance

[18:31] The Problem with Traditional Whole Life Insurance

[20:01] Unique Advantages of a Cash Value Life Insurance

How Banks Make Money

Banks make a profit by investing in financial opportunities using the pooled assets of their customers. Typically, banks do not like to take on risk so they rely on safe financial tools that guarantee a stable return. Banks get to keep the returns on their investment while the customers’ deposits are returned in full, along with a small interest.

Banks Only Invest in Safe, Convenient Opportunities

Take a look at any bank’s tier 1 assets from their balance sheets. Tier 1 assets are the funds that are allocated to the highest performing investments. Majority of the banks’ resources are invested in bank-owned life insurance (BOLI). This is because life insurance policies have a guaranteed interest rate of 4-6%.

To recap, banks are earning a 4-6% return from customers’ money but are only returning 0.1% back in the form of interest. And yet, account holders keep coming back to banks for other services like loans or credit cards. A long term savings account only helps banks grow their own profit instead of your own.

Alternative to a Savings Account

It’s been ingrained in us that we need to store our money in banks for safe keeping. But if you think about it, customers don’t reap any benefits aside from the financial services that the bank provides. Banks continue to pool customers’ deposits for their own investment.

Today on The Wealth Secrets Podcast, Sean Adams hosts Steve Parisi, president of IBC Global, an insurance policy company that focuses on infinite banking concepts and cash value life insurance. They discuss why life insurance is an asset, the cash value concept, the liquidity of life insurance policies, and how companies use life insurance as an employee retainer.

[01:13] Getting to Know Steve Parisi

[05:44] Life Insurance as an asset and not a Liability

[08:31] Why Cash Value Life Insurance Continues to be Ignored

[12:54] Tax-Free Life Insurance

[17:48] Cash Value Life Insurance Policies and the Stock Market

[21:45] Liquidity of Life Insurance Policies

[31:50] Life Insurance as an Employee Retainment Strategy

[43:20] Perfect Candidates Life Insurance Policies

[46:24] Notable Drawbacks

[54:04] The Bonus Section

Life Insurance as an Asset and not a Liability

The first thing that comes to mind when people hear about life insurance is expenses, liabilities, and sometimes death. The interesting part, however, is when corporates and the ultra-rich position millions of dollars into the cash value component of insurance policies. Which makes us wonder, what is it that they know and we don't? Well, they focus on maximizing cash values by making their products extremely flexible and are not committed to premiums permanently. 

Life Insurance as an Employee Retainer

Other than hiring the right staff, retaining your best employee is what ultimately sets you up for success. While there might be several things that keep an employee loyal to your company, a life insurance package will surely help swing the pendulum in your favor. Furthermore, suppose an employee decides that a life insurance policy is still not worth the stay, depending on how you custom your package, you can still transfer the policy to another of your employees.

Main Drawbacks of Life Insurance Policies

In essence, there are no notable drawbacks of having life insurance other than the initial cash value hit. Since you're buying a life insurance policy, your money will reduce to 80 to 95% in the early years. Although the money will eventually recover as the years go by, some people are still not comfortable with this aspect of the package.

Links and Resources

Today on The Wealth Secrets Podcast, Sean Adams talks about everything there is to know about 401Ks. He dissects the myths, the benefits, the drawbacks, and, most importantly, why the super-rich often shies away from signing up for the 401k.

[01:55] Understanding The 401Ks

[06:50] The Benefits of Having a 401K Account

[07:58] The Reality of the 401Ks

[11:18] The Strict Withdrawal Rules

[17:59] 401Ks Management Fees

[25:02] The Risk Associated With Market Exposure

[27:40] The Contribution Limits

[31:30] Alternatives to 401K Accounts

Understanding 401Ks

Before the 1970s, employers used retirement benefits to hold people hostage to their jobs for an extended period. With this in mind, Ted Benna, the man who invented the 401Ks, wanted something that the government would approve to help combat the disappearing pension plans. The account might have solved several employer-employee issues, but Ted also admitted that he created a monster that has evolved into something more complex than initially envisioned.

The 401k is the most common account prescribed in corporate America and small businesses because it seems fairly straightforward to implement. However, that's usually not the case because there is a lot of stuff going on behind the scenes you should know about.

Benefits of a 401k Account

The accounts let employees contribute pre-tax salary dollars directly from their pay cheques. Employers can also decide to contribute or match what you put in. The fact that employers could match a certain percentage of your contribution towards your retirement was the initial appeal that got most people signing up for the accounts. Other than the tax advantage gained from pre-tax dollars and the matched contributions from employers, we believe that the 401Ks don't offer any added advantage towards your portfolio.

The Reality Of The 401Ks

401Ks enjoy tax benefits through pre-tax contributions. This might seem like a tax haven for most people, but the reality is that this action is only comparable to shooting yourself in the foot. You might not be paying taxes during contributions, but once you retire and get a hold of that money, you'll automatically start paying taxes. We all know that your taxes and tax brackets will change over time and that there is a huge probability of it being higher in retirement than it was during contribution. This means that you're practically deferring your taxes to some date in the future when your tax percentages will be higher.

Another thing you need to note is that you're essentially not allowed to touch the money. In theory, this might be the best approach because it ensures we don't start eating into our retirement savings. 

The Wealth Secrets Podcast is dedicated to sharing the strategies of high net-worth individuals so listeners can emulate these practices in their personal lives. We will discuss a range of financial topics: from savings, investments, taxes, retirement, and more. Look forward to interviews and discussions with Sean and some of the industry’s top experts.

This podcast is for unconventional professionals and entrepreneurs who want to attain financial freedom. It is for anyone who aspires to better themselves and know more about how money really works. Learning the right mindset and foundational strategies is key to creating the lifestyle you want.

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