Wealth Formula

Wealth Formula

By Buck JoffreyBusinessInvesting
Download on the App Store

Wealth Formula episodes

  • 154: The Separation of Money from State
    It’s funny how long lasting paradigms perpetuate without question for centuries without being questioned.
    It used to be in most places, specific religions were mandated by the government to its people and heretics were persecuted. Of course that still exists in many parts of the world but the point is that a large part of the world does not see that as simply status quo anymore.
    If you live in the United States, for example, you would likely feel very uncomfortable with the idea that government chose your place of worship, what you ate or drank, and what you wore. Why is that?
    The answer to that, again, is that we tend to let outdated paradigms perpetuate without questioning them. They become part of conventional collective reality that few even think about questioning. Then, one day there is an awakening. The separation of church and state was one of those awakenings that has occurred gradually over time.
    Similarly, while this may sound like a bit of a leap, I believe that bitcoin represents the first modern step in separating money from state. I have been watching and studying this space closely and I have come to the conclusion that bitcoin is real and it’s not going anywhere.
    And when you look around and see the infrastructure that is being built around bitcoin at the institutional level, that belief is no longer outlandish. A lot of smart money believes it’s here for the long term as well. I’m talking about university endowments and even some pension plans. Bitcoin is not a fad. It’s a movement that is unstoppable.
    It doesn’t matter what the price of bitcoin is today. Its value is in what it’s going to do to the world tomorrow and, in that sense, is grossly undervalued. In my opinion, you will regret it if you don’t take time to understand bitcoin and its implications now.
    For that reason, I have invited a former Wall Street guy turned bitcoin purist for an interview on Wealth Formula Podcast today. His name is Tone Vays and you are going to want to listen to this week’s show so you can start the process of learning what will, in our lifetimes, become a new reality in our economy.
    1 hr 6 min
  • 154: The Separation of Money from State
    It’s funny how long lasting paradigms perpetuate without question for centuries without being questioned.
    It used to be in most places, specific religions were mandated by the government to its people and heretics were persecuted. Of course that still exists in many parts of the world but the point is that a large part of the world does not see that as simply status quo anymore.
    If you live in the United States, for example, you would likely feel very uncomfortable with the idea that government chose your place of worship, what you ate or drank, and what you wore. Why is that?
    The answer to that, again, is that we tend to let outdated paradigms perpetuate without questioning them. They become part of conventional collective reality that few even think about questioning. Then, one day there is an awakening. The separation of church and state was one of those awakenings that has occurred gradually over time.
    Similarly, while this may sound like a bit of a leap, I believe that bitcoin represents the first modern step in separating money from state. I have been watching and studying this space closely and I have come to the conclusion that bitcoin is real and it’s not going anywhere.
    And when you look around and see the infrastructure that is being built around bitcoin at the institutional level, that belief is no longer outlandish. A lot of smart money believes it’s here for the long term as well. I’m talking about university endowments and even some pension plans. Bitcoin is not a fad. It’s a movement that is unstoppable.
    It doesn’t matter what the price of bitcoin is today. Its value is in what it’s going to do to the world tomorrow and, in that sense, is grossly undervalued. In my opinion, you will regret it if you don’t take time to understand bitcoin and its implications now.
    For that reason, I have invited a former Wall Street guy turned bitcoin purist for an interview on Wealth Formula Podcast today. His name is Tone Vays and you are going to want to listen to this week’s show so you can start the process of learning what will, in our lifetimes, become a new reality in our economy.
    1 hr 6 min
  • 153: Should You Buy an Online Business?
    Sometimes in this “alternative investment” podcast world in which we live, I hear about great “investments” that are yielding 20 percent or more. On the surface, they sound great. In fact, the yield part might actually be real. However, because we are so ingrained in the “investment” world, we often fail to see an obvious distinction that may not be so obviously disclosed.
    You see, there is a difference between investing and buying (or starting) a business. A business is inherently riskier than investing in something like real estate. Why? Well, businesses tend to have a finite life to them and often get phased out over time or just flat out fail. I’ve got a couple of those failures under my belt. And it’s not just the little guys like me.
    For example, getting phased out by technology like the internet is happening left and right—blockbusters anyone? How about Sears. For some reason that catalog just stopped coming a few years after Amazon started.
    In the meantime, take a drive around Chicago or Boston and look at how many multifamily apartment buildings you see that are over one hundred years old. They are a dime a dozen! Needing a place to live seems like a problem we can’t solve with technology yet.
    So, when someone comes on a podcast and makes a comparison between owning a business and investing without disclosing that they aren’t exactly the same, they aren’t being completely honest. Businesses are inherently riskier to own than assets like multifamily real estate.
    Now don’t get me wrong—I made all of my initial money by starting businesses NOT by buying real estate. Like Robert Kiyosaki says, “My businesses buy my real estate”. The idea is to take explosive earnings and lock them in to slow burning stable assets that create long term wealth.
    The entrepreneur’s trap is to take that money and dump all of it back into his business. I’ve been guilty of that and gotten burned before and I see other business owners do it all the time. Knowing what I know now, it pains me to see them do it.
    On the other hand, if you have never owned a business, you might consider giving it a shot. Starting businesses from scratch is a little harder then buying established businesses for the non-business inclined. However, be aware that buying a business can be risky too. That’s why instead of getting 8-10 percent like you might with leveraged real estate, you should be looking at getting 30-40 percent cash on cash returns. Beyond the higher returns, you also have a number of tax advantages when you own a business.
    Now, if you are one of those people tempted by the idea of getting into business ownership but don’t really want to bet the farm on it, this week’s Wealth Formula Podcast will be of great interest to you.
    My guest is from a business called Empire Flippers which brokers on-line businesses. Remember, brick and mortar is expensive but on-line businesses can have minimal to zero overhead with substantial upside. That should pique your interest!
    48 min
  • 153: Should You Buy an Online Business?
    Sometimes in this “alternative investment” podcast world in which we live, I hear about great “investments” that are yielding 20 percent or more. On the surface, they sound great. In fact, the yield part might actually be real. However, because we are so ingrained in the “investment” world, we often fail to see an obvious distinction that may not be so obviously disclosed.
    You see, there is a difference between investing and buying (or starting) a business. A business is inherently riskier than investing in something like real estate. Why? Well, businesses tend to have a finite life to them and often get phased out over time or just flat out fail. I’ve got a couple of those failures under my belt. And it’s not just the little guys like me.
    For example, getting phased out by technology like the internet is happening left and right—blockbusters anyone? How about Sears. For some reason that catalog just stopped coming a few years after Amazon started.
    In the meantime, take a drive around Chicago or Boston and look at how many multifamily apartment buildings you see that are over one hundred years old. They are a dime a dozen! Needing a place to live seems like a problem we can’t solve with technology yet.
    So, when someone comes on a podcast and makes a comparison between owning a business and investing without disclosing that they aren’t exactly the same, they aren’t being completely honest. Businesses are inherently riskier to own than assets like multifamily real estate.
    Now don’t get me wrong—I made all of my initial money by starting businesses NOT by buying real estate. Like Robert Kiyosaki says, “My businesses buy my real estate”. The idea is to take explosive earnings and lock them in to slow burning stable assets that create long term wealth.
    The entrepreneur’s trap is to take that money and dump all of it back into his business. I’ve been guilty of that and gotten burned before and I see other business owners do it all the time. Knowing what I know now, it pains me to see them do it.
    On the other hand, if you have never owned a business, you might consider giving it a shot. Starting businesses from scratch is a little harder then buying established businesses for the non-business inclined. However, be aware that buying a business can be risky too. That’s why instead of getting 8-10 percent like you might with leveraged real estate, you should be looking at getting 30-40 percent cash on cash returns. Beyond the higher returns, you also have a number of tax advantages when you own a business.
    Now, if you are one of those people tempted by the idea of getting into business ownership but don’t really want to bet the farm on it, this week’s Wealth Formula Podcast will be of great interest to you.
    My guest is from a business called Empire Flippers which brokers on-line businesses. Remember, brick and mortar is expensive but on-line businesses can have minimal to zero overhead with substantial upside. That should pique your interest!
    48 min
  • 152: History of Money, Gold and Crypto
    I was just interviewed on a podcast earlier today and we got on the topic of gold. You know that I’m not a huge advocate for precious metals right now.
    Anyway, the argument became a little familiar. Ie. The global economy is going to melt down, there will be a zombie apocalypse and the the only thing that zombies accept is gold and silver.
    A few years ago I would have gotten sucked into all of this and drank the cool-aid. But the reality is that I don’t really see zombies headed our way anytime soon. That’s why I’m not terribly interested in gold. Admittedly I do own a monster box of silver coins but I’m not even sure where they are. The zombies will likely find them before me.
    Anyway, the entire conversation got me thinking about what money is in the first place and where gold fits in to that paradigm. It also got me thinking about cryptocurrency and why it seems like gold bugs should be all over bitcoin but they aren’t.
    That curiosity led me to a sight called GoldSilver.com. The site might suggest their primary interest, but I have found their founder, Mike Maloney, to be quite thoughtful in discussions regarding the history money, gold, and cryptocurrency.
    So, I reached out to speak to someone and found Jeff Clark, one of their senior analysts.
    In this episode of Wealth Formula Podcast, we take another peak back into precious metals with a detour into the history of money and cryptocurrency.
    50 min
  • 152: History of Money, Gold and Crypto
    I was just interviewed on a podcast earlier today and we got on the topic of gold. You know that I’m not a huge advocate for precious metals right now.
    Anyway, the argument became a little familiar. Ie. The global economy is going to melt down, there will be a zombie apocalypse and the the only thing that zombies accept is gold and silver.
    A few years ago I would have gotten sucked into all of this and drank the cool-aid. But the reality is that I don’t really see zombies headed our way anytime soon. That’s why I’m not terribly interested in gold. Admittedly I do own a monster box of silver coins but I’m not even sure where they are. The zombies will likely find them before me.
    Anyway, the entire conversation got me thinking about what money is in the first place and where gold fits in to that paradigm. It also got me thinking about cryptocurrency and why it seems like gold bugs should be all over bitcoin but they aren’t.
    That curiosity led me to a sight called GoldSilver.com. The site might suggest their primary interest, but I have found their founder, Mike Maloney, to be quite thoughtful in discussions regarding the history money, gold, and cryptocurrency.
    So, I reached out to speak to someone and found Jeff Clark, one of their senior analysts.
    In this episode of Wealth Formula Podcast, we take another peak back into precious metals with a detour into the history of money and cryptocurrency.
    50 min
  • 151: How to 1031 into a PASSIVE Asset
    You may know that by the end of last tax year, I sold most of the real estate that I held by myself—as owner and operator?
    Why? Well, first of all, I realized that to do real estate right, it really is not ever TRULY passive unless you have a full time operator doing all the work. The other thing that I realized is that for a busy person, finding the right operator with whom to invest passively is often MORE profitable than managing your own property.
    A good example of that is Western Wealth Capital—a group that many of you who are part of Investor Club know well. Cofounder and CEO Janet LePage was on Wealth Formula Podcast a few weeks ago and explained the operation that has produced investors annualized returns exceeding 30 percent on average.
    Let me tell you from being an owner operator of apartment buildings—it ain’t easy doing that by yourself. That’s why I have really focussed on a team approach to my investing and I know a number of you have made that decision as well. After all, you may think that you love real estate when, in reality, you love all the benefits of owning real estate like excellent returns and unbeatable tax benefits. Participating in limited partnerships can give you all the same benefits without the headaches.
    Now, last year I sold a few buildings and ended up with seven figures of capital gains with which to deal. I had to figure out if there was a way around paying the tax man. In my case, for better or worse, a failing business in Chicago provided some significant losses so I didn’t get hammered as badly as I thought I would. But, as a general rule, I would not recommend that as a way to minimize your tax burden. I would have rather paid the tax!
    So, if I didn’t have business losses to offset capital gains, what would my options have been? Before I tell you that, let me be clear that I am not a CPA so this is not official tax advice. However, I do happen to have a brilliant CPA so most of you know where I get this stuff.
    Anyway, one of my options would have been to invest as much of those capital gains into syndications using bonus depreciation as possible. That would have theoretically knocked out well over half the gains right there and actually allowed me to create equity in the process (let’s get Tom Wheelwright on the show to explain that one). That’s the only option I honestly knew about last year and probably the one I would still use at this point in my investing life.
    In recent months, however, I started hearing about another option that I found intriguing called a Delaware Statutory Trust. I had no idea that this was an option for me last year and I’m still not sure I would have used it, but the idea is pretty compelling.
    You see, there are options to doing 1031 exchanges with property that you don’t have to manage yourself—and I’m not just talking about a triple net Walgreens which we usually think of in this scenario.
    This option that I just became aware of is called a Delaware Statutory Trust. It’s similar to a syndication and limited to accredited investors. However, it is also a very intriguing option for those of you looking to get out of the real estate operating mode who want to avoid taxes and depreciation recapture. I love it when I learn about new things and I can share them with you on this show. That’s exactly what I will be doing on this week’s Wealth Formula Podcast with my guest Leslie Pappas of Archer.
    50 min
  • 151: How to 1031 into a PASSIVE Asset
    You may know that by the end of last tax year, I sold most of the real estate that I held by myself—as owner and operator?
    Why? Well, first of all, I realized that to do real estate right, it really is not ever TRULY passive unless you have a full time operator doing all the work. The other thing that I realized is that for a busy person, finding the right operator with whom to invest passively is often MORE profitable than managing your own property.
    A good example of that is Western Wealth Capital—a group that many of you who are part of Investor Club know well. Cofounder and CEO Janet LePage was on Wealth Formula Podcast a few weeks ago and explained the operation that has produced investors annualized returns exceeding 30 percent on average.
    Let me tell you from being an owner operator of apartment buildings—it ain’t easy doing that by yourself. That’s why I have really focussed on a team approach to my investing and I know a number of you have made that decision as well. After all, you may think that you love real estate when, in reality, you love all the benefits of owning real estate like excellent returns and unbeatable tax benefits. Participating in limited partnerships can give you all the same benefits without the headaches.
    Now, last year I sold a few buildings and ended up with seven figures of capital gains with which to deal. I had to figure out if there was a way around paying the tax man. In my case, for better or worse, a failing business in Chicago provided some significant losses so I didn’t get hammered as badly as I thought I would. But, as a general rule, I would not recommend that as a way to minimize your tax burden. I would have rather paid the tax!
    So, if I didn’t have business losses to offset capital gains, what would my options have been? Before I tell you that, let me be clear that I am not a CPA so this is not official tax advice. However, I do happen to have a brilliant CPA so most of you know where I get this stuff.
    Anyway, one of my options would have been to invest as much of those capital gains into syndications using bonus depreciation as possible. That would have theoretically knocked out well over half the gains right there and actually allowed me to create equity in the process (let’s get Tom Wheelwright on the show to explain that one). That’s the only option I honestly knew about last year and probably the one I would still use at this point in my investing life.
    In recent months, however, I started hearing about another option that I found intriguing called a Delaware Statutory Trust. I had no idea that this was an option for me last year and I’m still not sure I would have used it, but the idea is pretty compelling.
    You see, there are options to doing 1031 exchanges with property that you don’t have to manage yourself—and I’m not just talking about a triple net Walgreens which we usually think of in this scenario.
    This option that I just became aware of is called a Delaware Statutory Trust. It’s similar to a syndication and limited to accredited investors. However, it is also a very intriguing option for those of you looking to get out of the real estate operating mode who want to avoid taxes and depreciation recapture. I love it when I learn about new things and I can share them with you on this show. That’s exactly what I will be doing on this week’s Wealth Formula Podcast with my guest Leslie Pappas of Archer.
    50 min
  • 150: How to Invest in Pain
    Remember when you were a kid and you would go to the doctor? Your parents revered your doctor. The held him in high esteem. They trusted him.
    They would never say things like, “He’s just doing that test so he can make some extra money” or “He’s getting kickbacks from the drug company”. These are the types of things I regularly hear when I’m in the Sauna at the local YMCA.
    Doctors and science are becoming decreasingly popular these days and it’s from both political extremes. There are those on the right who deny climate change. You might be one of them. But…mainstream science disagrees with you. Similarly, you might be an anti-vaccination person most frequently observed on the left in places like Marin County. But…again, mainstream science disagrees with you.
    In fact, it’s not just disagreement. These days, it seems like doctors and scientists often are the object of disdain from all over the place.
    A few months back, I was at a mastermind event for entrepreneurs and the mastermind leader in the room asked how many “functional doctors” we had in the room. I honestly did not know what he meant so I said, “Well, I’m a real doctor. Does that count?”
    You see there were literally twenty people in that room practicing some kind of alternative medicine without any degree at all. So, I just asked if being an MD actually counted as a “functional doctor”.
    I got hissed at from a lot of people and told I was killing people instead of helping them by one person. I finally got off the hook when I announced that I hadn’t practiced medicine in a couple of years and, as far as I could remember, never killed anyone.
    Anyway, it’s not a good time to be “real doctor” these days. We are losing respect and we are losing reimbursement. For those of you who are sticking it out—fight for yourselves my friends.
    Now I should say that, while I am a “real doctor” or allopathic physician as we like to call ourselves, I don’t disregard alternative therapies at all. In my view, if it doesn’t hurt then give it a try.
    We don’t always know why things work until later. Aspirin has been used for well over 100 years and comes from tree bark. I guess at some point someone was in pain and chewed on some bark and felt better. Who knows? Anyway, now we know why aspirin works.
    The same thing goes for acupuncture. Acupuncture has proven to be beneficial for variety of ailments for centuries and has only recently been supported through scientific validation.
    For example, for years, people have claimed acupuncture helps with sinus problems. I wouldn’t have believed it frankly but the studies came out and it actually does provide benefit to people with sinus problems.
    That said would I tell you not to try acupuncture if you wanted to give it a shot before the studies came out? Absolutely not! If it’s not going to hurt you, and you think it might actually help, then give it a go.
    Anyway, one of the areas where there are plenty of non-validated treatments that many people swear by is in the area of chronic pain. This week on Wealth Formula Podcast, I will talk to someone who believes he has a novel means of treating chronic pain with greater than 80 percent efficacy.
    And…if you want to, you can even invest in this project. Full disclaimer: I have nothing to do financially or otherwise with this company. It is one more example of ways for you to invest outside of Wall Street.
    46 min
  • 150: How to Invest in Pain
    Remember when you were a kid and you would go to the doctor? Your parents revered your doctor. The held him in high esteem. They trusted him.
    They would never say things like, “He’s just doing that test so he can make some extra money” or “He’s getting kickbacks from the drug company”. These are the types of things I regularly hear when I’m in the Sauna at the local YMCA.
    Doctors and science are becoming decreasingly popular these days and it’s from both political extremes. There are those on the right who deny climate change. You might be one of them. But…mainstream science disagrees with you. Similarly, you might be an anti-vaccination person most frequently observed on the left in places like Marin County. But…again, mainstream science disagrees with you.
    In fact, it’s not just disagreement. These days, it seems like doctors and scientists often are the object of disdain from all over the place.
    A few months back, I was at a mastermind event for entrepreneurs and the mastermind leader in the room asked how many “functional doctors” we had in the room. I honestly did not know what he meant so I said, “Well, I’m a real doctor. Does that count?”
    You see there were literally twenty people in that room practicing some kind of alternative medicine without any degree at all. So, I just asked if being an MD actually counted as a “functional doctor”.
    I got hissed at from a lot of people and told I was killing people instead of helping them by one person. I finally got off the hook when I announced that I hadn’t practiced medicine in a couple of years and, as far as I could remember, never killed anyone.
    Anyway, it’s not a good time to be “real doctor” these days. We are losing respect and we are losing reimbursement. For those of you who are sticking it out—fight for yourselves my friends.
    Now I should say that, while I am a “real doctor” or allopathic physician as we like to call ourselves, I don’t disregard alternative therapies at all. In my view, if it doesn’t hurt then give it a try.
    We don’t always know why things work until later. Aspirin has been used for well over 100 years and comes from tree bark. I guess at some point someone was in pain and chewed on some bark and felt better. Who knows? Anyway, now we know why aspirin works.
    The same thing goes for acupuncture. Acupuncture has proven to be beneficial for variety of ailments for centuries and has only recently been supported through scientific validation.
    For example, for years, people have claimed acupuncture helps with sinus problems. I wouldn’t have believed it frankly but the studies came out and it actually does provide benefit to people with sinus problems.
    That said would I tell you not to try acupuncture if you wanted to give it a shot before the studies came out? Absolutely not! If it’s not going to hurt you, and you think it might actually help, then give it a go.
    Anyway, one of the areas where there are plenty of non-validated treatments that many people swear by is in the area of chronic pain. This week on Wealth Formula Podcast, I will talk to someone who believes he has a novel means of treating chronic pain with greater than 80 percent efficacy.
    And…if you want to, you can even invest in this project. Full disclaimer: I have nothing to do financially or otherwise with this company. It is one more example of ways for you to invest outside of Wall Street.
    46 min

About Wealth Formula

From the publisher's feed

The Wealth Formula - by Buck Joffrey