Wealth Formula Podcast

A few conversations I had with investors over the last week got me thinking that we need to talk about some basics again. First of all, let's start with why I generally prefer to own an asset (either in entirety or a fraction) as opposed to simply holding a note. What is a note or promissory note? It's basically a promise to pay the lender a certain amount of interest over a period of time with return of capital. So, let's say you loaned money to someone flipping some houses and they issued you a promissory note for 8 percent. The borrower is then allowed to keep any profits above and beyond payments to you as a lender. Regardless of how well that property does, you get 8 percent at best. I say at best here because understand that a promissory note, while legally binding DOES NOT guarantee that you will make 8 percent. Your promissory note is nothing more than a lien. Hopefully it's a first position lien and hopefully the asset value will cover the amount of debt you as the issuer lent in the first place. After all, if you lend $100K to someone and they default, you better hope that the asset is worth at least $100K so you can sell it off and recover your initial capital. Is that a guarantee? For anyone who thinks it is a guarantee, I refer you to all of the notes that were defaulted on in 2008. A lot of broken promises right? If you think that all those people who made loans got their capital back, you're sorely mistaken. There is no such thing as a guaranteed investment. Even the Securities and Exchange Commission will tell you that. Just google it. The only asset that is considered "guaranteed" is the US Treasury and that's another story entirely. If anyone tells you otherwise, it's a big red flag and you really ought to run the other way. So, if you are not "guaranteed" money and your upside is limited, why invest in debt rather then equity on any given project? I can tell you that I will always invest in equity over debt. You have way more upside, you hedge inflation, and you get tax advantages. Notes have none of these qualities nor are they guaranteed. Now, I'm not against investing in notes. I've done it myself with people I trust. However, I never do it thinking that it is safer than investing for equity. In fact, if I am investing in debt, I sure as hell better be getting more than 8 percent because the potential upside needs to justify the risk. Anyway, hopefully that makes sense. I don't do the weekly wealth widget anymore but I need to make sure I clarify things that I don't think people are quite understanding. We all want cash flow but be smart about your investments and look at them holistically. And, for heavens sake, if someone uses the word "guaranteed" in their offering, short of being the United States government, run the other way. My guest on Wealth Formula Podcast today will attest to everything I've said. And you should take his word for it. After all, they call him the Cash Flow Ninja! Shownotes: [00:07] Introduction [08:53] Buck introduced MC Laubscher [11:22] How does MC balance his workload [12:37] What's new? [20:21] E-commerce [23:27] How to get started? [36:12] Guaranteed money? [52:07] Outro

When I was in high school, I remember taking my first political science course. That was the first time I learned the political meaning of conservative or liberal. Up to this point, I had viewed those words as synonymous with Republican or Democrat. Of course that wasn't quite the same thing. A conservative, I learned, was someone who wanted smaller government, less regulation and emphasized the importance of individual civil liberties. I got the small government part right—that was the Republicans. But the American Civil Liberties Union was, from everything I gathered on the news, an institution of the Democrats Somewhere along the line, conservative in political slang became very different from conservative by political definition. I guess that's not hard to understand now. Look at free trade. It used to be that tariffs and trade wars were loathed by Republicans. Now, Donald Trump is the champion of global isolationism. Regardless of what you think of Donald Trump, his ideology is not that of Ronald Reagan—the quintessential conservative icon of the 1980s. So with ideology in each party being as fluid as it is, it seems odd to me that the politicians aren't switching parties all the time. How could they be part of a party that no longer represents their beliefs? What is stranger to me about American politics these days is that it is becoming more and more polarized. Most of this country is center-right. But the primary system that brings in the candidates caters to the most extreme elements on either side. For those of us standing rationally in the middle, that gives us little in the way of politicians that accurately reflect our collective sentiments as a nation. Personally, I have grown further in the direction of libertarian ideology. My intent is never to be very political on this show but I have probably leaked out some of my sentiments in the past. But rather than keep them a dirty little secret, I thought that the better approach might be to educate you on something in which I believe: libertarianism. Now you may agree or disagree with the opinions in this week's show, but you probably should listen to it. After all, everyone in Silicon Valley claims to be libertarian these days. You might as well know what the heck they mean by it. To educate you on the matter, in true Wealth Formula fashion, I went out and got a someone with some street credibility to teach you. Make sure to listen to this week's Wealth Formula Podcast with Harvard economics professor, Jeffrey Miron. Shownotes: [00:07] Intro [09:51] Buck introduces Professor Jeff Miron [11:27] Economic Libertarianism [12:56] Social Libertarianism [14:09] Why is Libertarianism drifting away from us? [21:49] Capitalism without bankruptcy is like a religion without hell [29:31] Professor Jeff Miron's policy change suggestions [32:18] Learn more about Professor Jeff Miron Cato.org Libertarianism, from A to Z [33:53]Outro

The prefrontal cortex is the CEO part of the brain. It is involved with personality, decision making, and moderating social behavior including impulse control and risk taking. You may not be surprised to learn, therefore, that this structure matures late in life. One study found that the prefrontal cortex may continue maturing late into your 40s. The brain of a teenager typically has a poorly developed prefrontal cortex—this is reflected in behaviors that you might have experienced yourself back in the day. I know I look back and think about some of the things I did and wonder how I made it out alive. It's curious to me that it takes so long for this part of the brain to develop—after all… it's where all the wisdom resides. Wouldn't it be useful as a teenager? Part of me thinks that prefrontal cortex development into our late thirties and early forties is designed to compensate for our relative physical decline. In other words, we find other ways to be useful to the tribe since we can't hunt or reproduce with the same efficiency. The tribal elders have wisdom in the form of a well-developed prefrontal cortex and it gives the rest of the tribe a reason to keep them around rather then pushing them off a cliff. Whatever the evolutionary purpose for this late development of wisdom in our lives, I can say with some certainty that I have felt that prefrontal phenomenon palpably in my own life. I have become wiser in the last 10 years and I actually feel smarter today at 44 than I ever have in my life. And to be clear, I'm not sure if I could study with the same intensity that I did in 20 years ago in medical school and I'm not sure if my recall would be quite as acute. When I say that I am smarter, I mean that in very broad terms. I see the world with far more clarity than I did in my 20s. I am a very different person. For me, the most profound change in my thinking has been the recognition of traditional paradigms and conventional wisdom. It used to be the case that I never really questioned anything—it never occurred to me to do so. These days, I like to examine my own belief systems and am not afraid to challenge them. That is very liberating. It does take some courage to do so. Our belief systems are shaped throughout our life and are so deeply ingrained in us that sometimes, when we start doubting them, it feels like we are doing something wrong. Of course belief systems permeate all facets of our life and Wealth Formula is a show about wealth so let me use a relevant example in the investing world. I talk to accredited investors every day and I often hear them talk about being "conservative investors." What does conservative investing mean? Well, conventional wisdom has drilled it into us that conservative investing is to maximize your 401K or IRA and let a wealth advisor put you in a portfolio of mutual funds. That is, after all, what we are taught is the conservative thing to do, right? But ask yourself the question, why is this conservative? Mutual funds have yielded an average of about 3 percent yield over the past 3 decades. With inflation moving at around 2 percent, that gives you about 1 percent real growth in your money every year. It would therefore take you about 72 years to double your money. What makes that conservative? Of course you could also just keep your money in the bank and make less than 1 percent. Is that conservative? Well, with inflation, you would then guarantee that you would lose money over time. What makes that conservative? Meanwhile, Wall Street has labelled real estate and other tangible investments as "alternative". What comes to your mind when you think of "alternative". Blue hair? Pierced body parts? Indeed, the language is there for a purpose. It's their to guide your thinking. After all, owning real estate and other tangible assets is what the richest families in the world have been doing for centuries—far before there was every an equity market like the New York Stock Exchange. So why are we supposed to be scared of it? Why do wealth advisors, and your own family, tell you that you are doing something wrong when you start talking about investing in anything outside of Wall Street? There is no good reason. It's just conventional wisdom and it's wrong. Your mature prefrontal cortex should recognize that. My guest on Wealth formula Podcast this week is full of wisdom in the financial realm. He also started out as a dentist and, like me, has no formal financial training. His name is Dr. David Phelps, DDS. He's a smart guy and worth listening so don't miss this episode! hose dreams into freedom. He authors a monthly newsletter, "Path to Freedom" and hosts "The Dentist Freedom Blueprint" podcast. Freedom Founders Mastermind Community grows exponentially, year by year, providing the pathway to freedom for many professional practice owners. "The greatest risk in life is doing nothing." Shownotes: [00:07] introduction [18:21] buck introduces David Phelps [19:59] David Phelps' background [25:03] The gap [28:10] The accumulation theory [32:20] How am I going to outlive my money [35:42] Freedom blueprint [42:02] Why is Wall Street considered "conservative investing" [45:14] Freedom Founders [51:12] learn more about David Phelps Dentist Freedom Blueprint Podcast [52:02] Outro

I remember being a kid in the back of my parents' car on long driving trips to Wisconsin—we used to go to a place called Wisconsin Dells which is kind of a "Las Vegas for children"—lots of water parks, go-karts, and stuff like that. We'd stay in a cheap hotel with a swimming pool and my brother, sister and I would have a great time. The only thing I didn't like about those trips is the drive. It took about 3 or 4 hours to get there from my home in suburban Minneapolis. You see, back then, we didn't have iPads on which we could watch movies. Hell, we didn't even have iPods. We pretty much had each other and the view of the nondescript, flat farmland that made up our view for most of that car ride. Now, I look at my kids and their life is so different. We take them out with us to restaurants all the time. Usually, it's only the three-year old that gives us trouble these days. And when she does, I just flip out my iPhone and find Peppa Pig on YouTube. That pretty much pacifies her for the rest of the evening. For those of you who are old enough to remember life before the internet and smartphones, just step back for a moment and compare your childhood reality to those of your children. Your children know no reality without the internet. They may not be able to talk on the phone with the demise of landlines, but they know how to text and email and that has always been part of their reality. So, in considering this, we have to understand that our entire sense of reality is actually a bit different then the younger generations. I remember hearing Randi Zuckerberg, Mark's sister, say that her son thought that his grandfather lived in a computer for the first few years of his life because he primarily saw him on Skype. Our lives are becoming increasingly connected with the internet and the line between what is real and what is not real is actually changing. You've probably heard of people buying virtual items online like crypto kitties for example. They live only on-line so why in the world would you buy one? Well, what if you spend several hours per day on the internet. Is your cyber-bling any less important than the ones we consider "real"? I have a picture of vintage Ferrari in my office that I'd like to get someday—in real life. But the generations that are coming up don't see the difference between owning that and owning something unique that only exists in this 4th dimension of cyber-reality. If you spend most of your downtime there, that's probably where you want your version of that vintage Ferrari parked—not in the "real world". I know this sounds like science fiction. But remember, just a few decades back the "Jetsons" showed video phone calls and it seemed so futuristic, didn't it? A new generation is on the rise and their perception of reality is different from ours. If you start to understand this, you will see very quickly an entire world that is unfolding quickly. Some of this is being aided by the rise of distributed ledger technology. One of these projects that I am very excited about as an investor is Worldwide Asset eXchange™ (AKA WAX). When these kinds of seismic changes occur in the technological world, there is money to be made. WAX is a project that I am convinced will become a major player in a $50 billion industry. In other words, I think holders of WAX token have a good chance of doing quite well over the next few years if they get in early. To help you understand my enthusiasm for the project, this week on Wealth Formula podcast, I have invited Malcolm CasSelle, president of WAX, to explain this strange new world and why it might make sense to invest in it. Make sure to tune in! Shownotes: [00:07] Introduction [13:00] Buck Introduces Malcolm CasSelle [14:08] What is OPSkins?? [16:40] Virtual Items have REAL value [21:46] Uniqueness and desirability determine the value [25:04] The inefficiency in trading online [28:15] Evolution of WAX token [33:55] An intersection between the real world and the virtual [37:04] The advantage of WAX over its competitors [41:48] Where is WAX headed? [48:52] Outro

The other day, I was listening to the radio and heard that protesters were outside of JP Morgan Chase Manhattan CEO Jamie Dimon's house protesting the bank's investment into facilities that were used to separate children from their parents at the border. Of course that story of separation has been all over the news and, regardless of your stance on immigration, you probably agree that it is not nice to keep young children from their parents. Why would Chase make such an investment, anyway? Is it because they don't like immigrant children? After all, we know the big banks are all evil. Of course not. Chase made that investment because they thought it was an attractive investment. And, as a publicly traded company with a board of directors that is most concerned with the bottom line, they probably didn't think twice about it. Furthermore, now that this investment is getting negative PR, I wouldn't be surprised if Chase made attempts at divesting from those separation program facilities. Again…bad PR could affect bottom line so that would be the reason to divest rather than a "change of heart". As individuals rather than institutions, we have the opportunity to invest our money not only with our minds, but with our hearts. Some of us might even accept a little smaller return if we could do a good deed and make a descent yield. But… we have to take a step back and look at things a little differently if we are going to change our investing habits. Let me give you an example from my personal experience. I have invested in oil and gas drilling in the past despite my over-all concern about climate change and the effects of fossil fuels on the environment. Why? Well, at the time I really liked the tax write-offs and I let my financial instincts prevail over my moral compass. And to be clear, I don't begrudge those of you who invest in oil and gas. I'm not hear to judge you. I'm just telling you about my personal conflicts with investing in things that are not compatible with my personal beliefs. I have not invested in oil and gas for years, in part, because I didn't need the tax benefits or found them elsewhere. I also realized that, for me, there is fundamentally something wrong with investing is something I think could be detrimental to the lives of my children. Listen, I love making money as much as anyone else. But what I have realized is that, if you really want to, you can invest in such a way that it is indeed congruent with your values. And the good news is that, if you look hard enough, you can often find investments that make a positive impact on the world and have a financial ROI that is even more attractive. My friend Gordy Bal of Conscious Thought Revolution not only believes that idea, but has shown it to be true. He measures investments not only in financial ROI, but also by return on impact. Gordy is a very smart young guy and someone with whom I'm happy to be friends and you should definitely check out my interview with him on this week's episode of Wealth Formula Podcast. [00:07] Introduction [10:19] Buck introduces Gordy Bal [13:53] Gordy's story [17:26] Conscious Capital [27:52] Gordy's crypto favorites [38:45] Learn more about Gordy Ctr.com ctr.ai [43:41] Outro

One thing I've learned in life is that someone is always ready to tell you why something can't be done and usually they are wrong. I had that happen with my first accountant. Years ago, I was reading some of Kiyosaki's and Tom Wheelwright's stuff and told him what I wanted to do. He told me it couldn't be done. So…instead of listening to him, I fired him and found someone who said it could. Now most people probably would have listened to the first accountant. After all, he was known as the conservative guy that all the doctors used. I found out later what that what "conservative" meant is that you might as well use turbotax and save the money. You see, everyone wants to tell you their own version of the truth—and I'm not talking about the Trump administration here. What I'm talking about is people who legitimately believe they are right. But often they aren't and it may cost you money. I've learned this many times over. So now, if someone tells me something can't be done, I take it with a grain of salt and look for someone with solutions. Most of the time, I eventually find them. Finding solutions to problems is what entrepreneurs do and so it does not surprise me that my guest on this week's Wealth Formula Podcast has found a way to give you even more freedom and make you more money with your retirement funds than you can with a self-directed IRA or solo 401K. For those of you interested in efficiently using your retirement funds and NOT paying UBIT taxes on leverage, you are not going to want to miss this discussion with Damian Lupo. Buck P.S. If I had known about this earlier, I would have told you. Sorry :(

The central theme of Wealth Formula Podcast is that there are two investing worlds. One is for the poor, middle class, and the upper middle class. The other is for the ultra-wealthy. Now the funny thing is, that many of those in the middle and upper middle classes could be investing like the ultra-wealthy but one thing gets in the way—knowledge. The world of the ultra-wealthy is hidden behind a veil that you have to actively pursue to access. That is the purpose of this show…to illuminate the secrets of the ultra wealthy and make them accessible to anyone who cares to use them to their own advantage. When I started down this path, I had no idea how little I knew and that's probably still the case. In fact, the more I learn, the less I realize I know. In 2008, when the financial crisis happened, I was just finishing my surgical residency. I was broke so I didn't lose any money. But I had no idea what was going on in the world. Meanwhile, the global elites were colluding to save the entire economy from collapsing. I didn't even realize that I should be panicking. Did you? I guess sometimes ignorance, indeed, is bliss. Now, when I read about what led up to the crisis and the inner workings of those deals, it is like reading a gory post-mortem report. Why do I read this stuff anyway? Well, I am a firm believer that history repeats itself and that knowledge is power. I also like to feel in control as much as possible. There is a lot of activity in the world that is the underbelly of the global elite and if you don't try to keep up with it, you're not going to know what hit you when the next financial crisis comes along. No one knows this more than my guest on this week's Wealth Formula Podcast, Nomi Prins. A former Wall Street insider, Nomi Prins left the dark side and now she writes about it. On this week's show, Nomi tells us about the role of the federal reserve and banks that led up to 2008 and the new world order that has ensued since then. It's a world that you and I have little access to and it's something you should not miss! Shownotes: [00:07] Introduction [06:56] Buck introduces Nomi Prins [12:56] Formation of the FED [27:38] Collusion: How Central Bankers Rigged the World [36:54] Nomi's thought on our current economy [43:50] Where does cryptocurrency fit? [48:59] Outro

It's no secret… Bitcoin and cryptocurrencies were the biggest investment story of 2017… Stories appeared daily on CNBC, and in the Wall Street Journal, and New York Times, about people becoming millionaires practically overnight… However, since January, the price of Bitcoin has fallen 63%... And today, if you believe what you read in the press, many people think the opportunity has passed… That the cryptocurrency bull market is over… But anyone who tells you you're too late to make big money in cryptocurrencies, has no idea what's about to happen next… Remember when JP Morgan CEO Jamie Dimon called Bitcoin a fraud? He said any JP Morgan traders caught trading Bitcoin would be fired "in a second" for their "stupidity." The price of Bitcoin fell as much as 24% in the few days that followed. And in that period, JP Morgan and Morgan Stanley emerged as some of the most active buyers of a fund that tracks the price of Bitcoin. After slamming Bitcoin at the World Economic Forum in Davos, Switzerland, in January, calling it a "bubble," hedge fund titan George Soros gave the greenlight to his $26 billion family office to begin buying cryptocurrencies just 8 weeks later. It's interesting that Soros attributes part of his success to his understanding of what he calls "reflexivity." In simple terms, this theory states that investors base their decisions not on reality, but on their "perception" of reality. Soros once wrote: "The degree of distortion may vary from time to time… Sometimes it's quite insignificant, at other times it is quite pronounced. Every bubble has two components: an underlying trend that prevails and a misconception relating to that trend." Now, I'm not saying this is a conspiracy. But have you stopped to wonder why some of the biggest critics of cryptocurrencies – including JPMorgan, George Soros, Goldman Sachs and Bloomberg – are now investing billions of dollars in cryptocurrencies in 2018? Have you asked yourself why some of the world's richest families – including the Rothschilds, and the venture capital firm founded by the Rockefellers – are dumping other assets (including stocks) and have now committed hundreds of millions to new crypto investments? Here's the thing… Most people have no clue what's really going on in the cryptocurrency market. And most have no idea where the price is about to go next. But if you're interested in achieving true financial independence, it's important you get an understanding of what's really going on now. Which is why I'd like to invite you to attend a free online event called The Great Cryptocurrency Conspiracy… In this event, renowned cryptocurrency trading expert and former Wall Street vice president, Teeka Tiwari will join TV and radio host Glenn Beck in an exclusive live broadcast to reveal what's really going on in the cryptocurrency market today… and show you how you can still make your fortune. This is important for you. Because what they have to share could have a huge impact on your financial future. On top of that, you'll receive some gifts just for attending, including Teeka's new report, The Crypto Manifesto: Why Cryptocurrencies Are The Smartest Speculation You Can Make Today. A week of free online investment training. And on top of that, Teeka will share the name of three cryptocurrencies he believes you should buy today. This is a big deal. Because the last time Teeka publicly recommended a cryptocurrency during a live event, it went from $0.21 to $3.77 in eight weeks – enough to turn a $500 investment into $8,976. And in addition to that, you'll also have the chance to take claim a share of their exclusive $2 Million Dollar Bitcoin Giveaway. This may be the single most important online investment event of the year. I'll be there. And I strongly encourage you to attend. Click here to get all the details, and register for The Great Cryptocurrency Conspiracy of 2018 for free.

It’s no secret… Bitcoin and cryptocurrencies were the biggest investment story of 2017… Stories appeared daily on CNBC, and in the Wall Street Journal, and the New York Times, about people becoming millionaires practically overnight… However, since January, the price of Bitcoin has fallen 63%… And today, if you believe what you read in the […]

I don't know about you, but I love the 4th of July holiday. I love getting together with family and watching fireworks—that's for sure. But the 4th of July, to me, reminds of the greatest advantage with which I was born—the opportunity to grow up an American. I am two generations away from poverty in India. My dad came this country in the late 1960s on an engineering scholarship. Before long, he was possessed by the American spirit—the entrepreneurial spirit—and went on to become a millionaire. And now look at me! A buddy of mine grew up with 6 siblings and a single mother and there was not enough food to go around even with food stamps. Now he's a millionaire entrepreneur. Where else in the world does this happen? Where does such social mobility exist. England still has something called the "House of Lords" as part of their government—you have to be born into that legislative branch. Sure it's not a perfect system but there is no other country in the world that provides the opportunities to it's people the way the United States does. You can bitch all you want about this country—but remember, you CAN bitch about it because you live in this country. And for those trying to flee to other countries because you think the US economy is going down. Well…good riddance. Do you really think that if the world goes into a financial meltdown you will be better off anywhere else in the world than the United States? Do you think hiding in a third world country will serve you better than being in the greatest country in the history of the world? Ladies and gentlemen—I hope you appreciate this country the way I do. We've got it good and being an American is the biggest reason that I believe that no matter where you are today, I know you can be wealthy. Just tap into that inner immigrant and let it flow. Look at the opportunities around you. The only thing stopping you is fear of the unknown. No one is in your way. You control your destiny. That's what it means to be an American. If you disagree, go to wealthformula.com and leave a message telling me why on speak pipe (link). Periodically, we record these comments and questions for the occasional show we call, "Ask Buck". Speaking of "Ask Buck", this week's episode of Wealth Formula Podcast is one of those special shows. Make sure to listen and to record your own questions and comments for the next show. Shownotes: [00:07] Intro [09:43] Buck introduces Lane Kawaoka [12:44] Catching up with Lane [23:04] Question from Ravi [35:00] Question from Chris Eggleston [54:23]Outro