Wealth Formula Podcast

Financial Education and Entrepreneurship for High Paid Professionals

509: What’s in the One Big Beautiful (Tax) Bill? 06/01/2025

509: What’s in the One Big Beautiful (Tax) Bill? When I was a young surgeon just coming out of residency and finally started making some money, I had to do something I’d never done before: find someone to do my taxes. Naturally, I asked around. I went to the older, more experienced surgeons in my group and said, “Who do you guys use?” A few names came up, but one firm kept coming up over and over. So, I figured it was probably a good idea to go with them. One of the main things people said about this firm was that they were “conservative.” At the time, that sounded like a good thing. In hindsight, it absolutely wasn’t. You see, the problem with how high-paid professionals—especially physicians—choose tax professionals is that we confuse what “conservative” means in different contexts. As a surgeon, being conservative is a virtue. You don’t operate unless you absolutely need to. You’re cautious. That kind of conservatism saves lives. But taxes? That’s a whole different game. The vast majority of the tax code isn’t about when you have to pay taxes. It’s about when you don’t have to. It’s about the legal strategies and frameworks that allow you to keep more of what you earn. It’s not black and white—it’s grey. And to navigate the grey, you need someone who understands how to interpret the code, not just read it like a rulebook. A “conservative” CPA, in that world, is someone who avoids the grey entirely. They stick to the simplest interpretations, ignore all the nuance, and frankly, don’t work that hard to save you money. And that’s not what you want in a CPA. I learned that the hard way. The first couple of years, I basically paid more than I should have because I didn’t know any better. Eventually, I figured it out. Now, to be clear—there are CPAs out there who work hard, understand the tax code deeply, and can make a huge difference in your tax liability. But chances are, you don’t know them. Because you’re asking your colleagues. Or you’re using the same firm your parents used. If that sounds like you, I’d encourage you to reconsider before you waste another year failing to optimize your taxes. One of the guys I think does get it—who really understands how to interpret tax law and save people money—is Casey Meyeres. And he’ll be my guest on this week’s Wealth Formula Podcast and we will discuss the latest tax bill put out by congressional republicans. /episode/index/show/wealthformula/id/36804425

508: The Road to 2030 - Are We Headed for Another Great Depression? 05/25/2025

508: The Road to 2030 - Are We Headed for Another Great Depression? ITR Economics has been predicting a “Great Depression” beginning around 2030. Over the past seven years, I’ve had multiple representatives from their firm on the show, and they’ve never wavered from that forecast. That might not sound so alarming—until you realize that their long-term predictive track record is 94% accurate over the last 70 years. To understand why their conviction is so strong, tune into this week’s episode of Wealth Formula Podcast. Once you hear the reasoning, it’ll all make sense. The major drivers of this projected economic downturn are debt and demographics. We’re spending unsustainably on entitlement programs like Medicare and Medicaid—programs that virtually no politician has the appetite to reform. At the same time, the Baby Boomers—who make up a huge chunk of the U.S. population—are moving out of the workforce and into retirement, where they’ll become a significant economic burden. It seems inevitable. But as you listen, I want to introduce one wild card that could change everything: artificial intelligence. I truly believe we’re on the cusp of a technological transformation that could rival the Industrial Revolution. Think back to when Thomas Malthus predicted global famine due to population growth. What he didn’t account for was the invention of the tractor, which revolutionized food production. In the same way, we may be underestimating the impact of the robotic age driven by artificial intelligence. Right now, economic growth is tied closely to the size of a country’s working population. But what if AI allows us to dramatically increase productivity with the same—or even a smaller—workforce? What if robotics drives a low-cost manufacturing renaissance in the U.S., making us competitive again without relying on cheap labor from overseas? In my view, these are the most important questions in American economics over the next decade. And to understand just how critical it is that we get this right, this week’s episode lays it out clearly: the alternative may look a lot like the 1930s. Learn more about ITR and its resources: /episode/index/show/wealthformula/id/36702340

507: How to Sell Your Business or Practice 05/18/2025

506: Mortgages and Reverse Mortgages with Wade Pfau 05/11/2025

506: Mortgages and Reverse Mortgages with Wade Pfau , our online mastermind group, is where we dive into the financial questions that keep us up at night, and one debate that keeps coming up is whether to pay off your mortgage. It’s a complex question, but let’s unpack the math and the emotion so you can decide for yourself. First, think of your mortgage as a lever: with just 20% down, you control 100% of your home’s value. On a $500,000 property, that means your $100,000 down payment magnifies the impact of appreciation. If home values rise 4% in a year, your equity grows by $20,000—an effective 20% return on your original $100K. Had you paid the full $500,000 up front, you’d still make the same $20,000—but that’s only a 4% return on investment. Next, consider opportunity cost. Every extra dollar you funnel into your mortgage is a dollar you can’t deploy elsewhere—whether it’s a diversified stock portfolio, a private deal, or even another rental property. Historically, a balanced investment mix has returned 10% annually, comfortably outpacing most mortgage rates and turning “trapped” home equity into “working” capital. Here’s something else you might not have considered: your mortgage can actually serve as asset protection. Creditors (or an overzealous bank) are far less likely to tap a property that still carries a lien. By keeping a mortgage in place, you make your home less attractive as collateral and shield your equity in other holdings. So, when you run the numbers, the case for holding onto lower cost debt and investing the difference is compelling. But, math isn’t everything. There’s intangible value in the day you write “0.00” next to your mortgage balance: no monthly housing payment, no looming due dates, and a deep sense of security—especially as you head toward retirement. Bottom line—there is no single correct answer. Know the pros and cons, weigh your financial goals against your emotional needs, and choose the path that aligns with both your head and your heart. Make that decision thoughtfully, and you’ll sleep better either way. Speaking of mortgages, have you ever wondered what reverse mortgages are all about? Those late-night commercials often make them seem like a ways to rip-off seniors. Is there something really useful there? Well, I invited an expert onto the show to teach us all about them and was pleasantly surprised. Reverse mortgages can be a smart tool for homeowners nearing retirement and something you might consider for yourself someday even if you’ve got other money. Curious to learn more? Tune in to this week’s episode of Wealth Formula and get the full story. /episode/index/show/wealthformula/id/36509365

505: Andy Tanner on Cash Flowing Stocks for Double Digit Returns 05/04/2025

504: Maximizing Profits by Paying Less Tax: Deferred Sales Trusts 04/27/2025

504: Maximizing Profits by Paying Less Tax: Deferred Sales Trusts The last couple of weeks, we’ve been deep in the world of buying businesses. But what happens when it’s time to cash out? Maybe you’re ready to sell your business, that investment property you’ve managed for years, or another major asset you’ve poured your energy into. If you’re like most people, the thrill of a big sale is quickly followed by a less-exciting thought: “Wait, how much am I going to owe in taxes?” It’s the classic one-two punch—first the celebration, then the sinking feeling as you picture Uncle Sam’s hand reaching for a chunk of your hard-earned gains. But here’s the good news: you actually have options. Real, legal, IRS-approved options. And the right strategy can mean the difference between watching your profits shrink and putting your money to work for you—sometimes for years to come. Of course, things get a little trickier if you have a mortgage or other debt on the property, but don’t worry—we’ll break that down too. Let’s start with one of the oldest tricks in the book: the 1031 Exchange. If you own investment real estate, you’ve probably heard about this one. The idea is simple: sell your property, buy another “like-kind” property, and—if you follow the rules—kick that tax bill down the road. But here’s the twist: if you’ve got a mortgage, you’ll need to replace that debt with equal or greater debt on your next property, or pony up the difference in cash. Otherwise, the IRS will want a piece of the action right away. So yes, leverage matters! Now, maybe you’re tired of being a landlord but still want those tax perks. Enter the Delaware Statutory Trust, or DST. This is essentially 1031 exchanging into a syndication that is designed for this type of thing. You sell your property and, instead of buying another one yourself, you buy a slice of a big, professionally managed property—like an apartment complex or shopping center. DSTs often come with their own loans, so you can match your old mortgage and keep the tax deferral going. The upside? No more midnight calls about leaky faucets. The downside? You’re trusting someone else to run the show and they need to be good at it (just like any syndication operator). And, there are some rules and restrictions that can affect your returns negatively. But what if you’re selling a business? That’s where Employee Stock Ownership Plans, or ESOPs, come in. Imagine selling your company to the people who helped you build it—your employees—and deferring a big chunk of your capital gains tax in the process. It’s a win-win, but if your business has debt, things can get complicated fast. This is definitely a strategy where you’ll want a seasoned advisor in your corner. Now, let’s talk about installment sales and structured sales. In this scenario, instead of getting paid all at once for your asset, you spread out the payments—and the taxes—over several years. Structured sales even bring in a third party to guarantee those payments, adding an extra layer of security. But—and this is a big but—if you have a mortgage, the IRS treats the amount the buyer pays off as if you got that money in cash on day one. So, you’ll pay taxes on that portion right away. For example, if you sell for $1 million but owe $600,000, you can only defer taxes on the $400,000 you actually receive over time. The more debt you have, the less you can defer. And finally, we have the Deferred Sales Trust—the topic of this week’s Wealth Formula Episode. Think of this as the “supercharged” version of a structured sale. Instead of waiting on the buyer for payments, you transfer your asset to a trust, which sells it and invests the proceeds. You get to choose how and when you receive your money, and the trust can invest in all kinds of assets while your taxes stay deferred. It’s flexible, it’s powerful, and it gives you the chance to grow your money while you wait. Which of these strategies is right for your situation depends on your goals, your assets, and whether you have debt on the property. The key is knowing your options and working with someone who can guide you through the maze. That said, for assets that have no debt, I really do think the deferred sales trust is something that everyone should know about, and that’s what my guest on this week’s episode of Wealth Formula Podcast is an expert on. /episode/index/show/wealthformula/id/36316410

503: How to Fund Your Commercial Real Estate or Business Acquisition 04/20/2025

502: Should You Buy a Business? 04/13/2025

502: Should You Buy a Business? Lately, I've been thinking about starting a new business. I know the market seems like it's crashing around us, and we're probably headed into a recession. But hey—I started my first business back in 2009, and it doesn’t get much worse than that, right? Well, maybe it can. And that's exactly why I've been considering buying a business instead of starting one from scratch, particularly because of the SBA loan options available right now. Here's how an SBA 7(a) loan breaks down for a $1,000,000 business purchase: Total Loan Amount: $1,000,000 Typical Down Payment (10%): $100,000 Amount Financed: $900,000 Loan Term: 25 years Estimated Monthly Payment (at 10.25% annually): $8,200 Now, that monthly payment isn’t exactly cheap. But consider this: a business selling for $1 million typically goes for about three times its annual earnings. For those of you from the real estate world, that translates to what we’d call a cap rate of about 33.33%. And remember—anytime your cap rate exceeds your interest rate, leverage works in your favor. Let's break down the numbers clearly. With annual earnings of $333,333 ($1,000,000 divided by 3), and an annual debt service of about $98,400 ($8,200 x 12 months), your annual cash flow comes out to around $234,933. Since you only invested $100,000 to get this cash flow, you're looking at a cash-on-cash return of about 235%. Pretty impressive, right? Of course, the devil is always in the details. One reason I've never pulled the trigger on buying a small business like this is because, as someone who's started businesses myself, I know firsthand just how volatile small businesses can be. Often, their success hinges on key factors that don’t necessarily transfer smoothly to a new owner. Think about it—if small businesses were all this easy, why would anyone ever bother buying anything else? That said, my guest on this week's Wealth Formula Podcast strongly advocates for buying existing small businesses and believes most people are overlooking a fantastic opportunity. He makes a compelling case—one that might just have you checking out business listings yourself. Curious? Make sure you tune into this week’s Wealth Formula Podcast and see if buying a business might be the right move for you! /episode/index/show/wealthformula/id/36099665

Time to Invest! 04/08/2025

501: Real Estate Postmortem - Lessons from the Crash and the Opportunity Ahead 04/06/2025

501: Real Estate Postmortem - Lessons from the Crash and the Opportunity Ahead Charlie Munger, the late sage of value investing and Warren Buffett’s right-hand man, once said there are only three ways a smart man can go broke: “liquor, ladies, and leverage.” Now, of the three, leverage is the sneakiest. It shows up dressed like opportunity, whispers promises of scale and speed, and before you know it—you’re in a capital call or margin call. But let’s be clear: leverage isn’t the enemy. In fact, if your goal is to become truly wealthy—if you want to build lasting, generational wealth—you’re going to need it. Unless you’re one of the lucky few who can throw a football 70 yards or sell out Madison Square Garden, leverage is your ticket to the big leagues. At its core, leverage is simply using other people’s money—or time—to amplify your results. It’s a mortgage on a cash-flowing property, a business line of credit, or a . When used properly, it’s the financial version of driving a car instead of walking. It gets you there faster. Leverage magnifies everything—the gains, yes, but also the losses. It’s the volume knob on your financial life. And in the last few years, when interest rates skyrocketed at the fastest pace in modern history, that volume went from background music to full-blown chaos. And here's the thing: it wasn’t just the rookies who got caught. This cycle humbled everyone—developers with decades of experience, funds with billions under management, and institutional players with Ivy League MBAs. When the tide went out, even the smart money found itself swimming without trunks. Some were caught overleveraged. Others had short-term debt in long-term projects. And a whole lot of people made the fatal assumption that the low-rate environment would last forever. It didn’t. But…just like the last financial crisis, this kind of wreckage creates extraordinary opportunity—if you know how to navigate it. Because as painful as the last couple years have been for real estate investors, they’ve also opened the door to a once-in-a-decade setup. Distressed assets. Motivated sellers. And amidst all the carnage, leverage—used carefully, conservatively, and respectfully—can once again become the powerful tool it was meant to be. This is not a time for fear. It’s a time for strategy. For discipline. For underwriting with humility and deploying capital. This week’s episode of Wealth Formula Podcast is a postmortem on what went wrong in real estate over the past few years as interest rates surged and markets shifted. We break down the hard lessons learned—even by seasoned pros—and explore why today’s environment is starting to resemble the rare window of opportunity we saw in 2010–2011, in the wake of the mortgage meltdown. /episode/index/show/wealthformula/id/36023170

500: What Is the Big Deal about Private Equity? 03/30/2025

500: What Is the Big Deal about Private Equity? When it comes to building wealth, the allure of exotic investment products can be hard to resist. From cryptocurrencies to rare collectibles, these options promise excitement, exclusivity, and the potential for big returns. But are they truly superior to buying the market or some rental real estate? Let’s take a look at a few popular exotic investments. 1. Cryptocurrency: High Risk, High Reward? The upside is real—early adopters have seen life-changing gains, and blockchain technology offers genuine innovation. However, the volatility is intense; prices can crash as fast as they soar, and risks like hacks or regulatory shifts loom large. Compared to the stock market’s historical 7-10% average annual return (adjusted for inflation), crypto offers a wild ride that can pay off—but only if you time it right. In my opinion, if you want to jump on the ride, there is no better time than now. 2. Rare Collectibles: Passion Meets Profit Investing in art, fine wine, or vintage cars blends enjoyment with potential gains. A well-chosen piece can appreciate significantly. For enthusiasts, the emotional reward is a big draw. On the flip side, these markets are illiquid (selling takes time and effort), and costs like storage, insurance, and commissions add up. Unlike real estate, which generates rental income, or stocks with dividends, collectibles don’t pay you while you hold them. 3. Private Notes: High Yields with a Catch Private notes involve lending money directly to individuals or businesses—often real estate developers or small companies—in exchange for interest payments, typically offering yields above traditional bonds or savings accounts. It’s a chance to earn solid returns, sometimes 8-12%, while supporting specific projects or borrowers. The appeal lies in the potential for steady income and the ability to negotiate terms. However, defaults can spike during economic downturns, and your money is often locked in until the note matures. Compared to real estate, which offers rental income and appreciation, or stocks with liquidity and diversification, private notes are a niche play that requires careful vetting of borrowers to make sense. 4. Private Equity: The Elite Investment That’s Not Always Golden Speaking of niche plays, private equity (PE) often comes up as the ultimate exotic investment, especially for the wealthy. It’s frequently billed as a special opportunity reserved for the elite, where funds pool big money to buy, revamp, and sell companies for hefty profits. The perception is that PE is a gold mine, delivering returns that leave the stock market in the dust. But is it really the wealth-building powerhouse people think it is? This week’s guest on the Wealth Formula Podcast argues that private equity might not be the golden ticket it’s cracked up to be. /episode/index/show/wealthformula/id/35922205

499: Scott Bessent’s 3-Part Playbook for America 03/23/2025

498: What Renewable Energy Looks Like without the Politics 03/16/2025

497: Starting from Scratch as a New High Paid Professional 03/09/2025

496: The Gold Bug Who Got Infected by Bitcoin 03/02/2025

496: The Gold Bug Who Got Infected by Bitcoin I really hope you listened to last week’s episode of Wealth Formula Podcast. If you did, it may have convinced you to get some exposure to Bitcoin in your portfolio. And if you did that last week, all I have to say is… WELCOME TO CRYPTO! As of this writing, Bitcoin is trading at approximately $84,000, a decline of over 20% from its recent high of nearly $107,000. If you’re not used to this kind of volatility, get used to it. And I might also suggest that you embrace it! Why? Well, let's take a brief look at some Bitcoin history: 2013 Cycle: This is ancient history, of course. But Bitcoin reached around $260 in early 2013 before falling to nearly $70 by mid-year—a decline of about 73%. Over the next seven months, the price recovered to approximately $1,200 by November 2013. 2017 Record-Breaking Year: I had the pleasure of being part of this one, having entered the Bitcoin world in 2016 myself. Bitcoin started 2017 at roughly $1,000. Early in the year, it experienced a correction, falling approximately 34% to around $660. However, by December 2017, Bitcoin had risen to nearly $20,000—an increase of nearly 20 times within one year. 2020 Cycle with Institutional Interest: Prior to the May 2020 halving, Bitcoin traded at about $10,000 before a 20% retracement brought it to around $8,000. The recovery following this dip was notable, to say the least, with the price reaching roughly $64,000 by April 2021. The point I am making, of course, is that Bitcoin has historically experienced significant corrections, which have often led to rapid recoveries within defined periods. It is not insignificant that there are some big buyers out there in 2025. The current dip coincides with increased interest from institutional investors: Financial Institutions: Banks and financial services firms are increasingly offering Bitcoin-related products. Corporate Adoption: More companies are adding Bitcoin to their treasuries as a hedge against inflation. Spot Bitcoin ETFs: The approval and launch of spot Bitcoin ETFs in the U.S. have attracted additional institutional capital. This increased involvement has shifted the perception of Bitcoin from a speculative asset to one that is integrated into diversified portfolios. Even in 2017, a lot of smart people truly thought that Bitcoin would crumble to nothing. But now, we even have government entities exploring Bitcoin’s role as a reserve asset. Countries such as El Salvador have adopted Bitcoin as legal tender, and others, including the United States, are evaluating its potential as a reserve asset. Some U.S. states are considering legislation to allocate up to 10% of public funds to digital assets. The point I’m making here is that Bitcoin is not going to zero. In fact, the finite amount of Bitcoin, along with all the new buyers, can mean only one thing over the next few years: Bitcoin is going up in value. What I am trying to say is that you may seriously want to consider buying the dip. This is, of course, not financial advice. You can speak with your wealth advisor—who knows nothing about Bitcoin—to do that, lol! Oh, and by the way, Solana got slaughtered too. So you might want to look into that one as well, since it's better than Ethereum in virtually every way but has a fraction of the current market capitalization. If you’re getting sick of all this crypto talk, I apologize. In fact, this week’s episode of Wealth Formula Podcast was supposed to be about gold and silver. But it turned out even the gold bug I interviewed had gotten infected by Bitcoin, and the conversation moved in that direction pretty quickly! /episode/index/show/wealthformula/id/35485615

495: What You MUST Know about Bitcoin in the Era of Wall Street and Government Adoption! 02/23/2025

495: What You MUST Know about Bitcoin in the Era of Wall Street and Government Adoption! To my credit, I was relatively early in my recognition that Bitcoin was for real and that it wasn't going to zero. It was 2016, and, up to this point, I had the misfortune of hearing only one narrative about Bitcoin—that of Peter Schiff. Peter is a very smart guy and quite convincing if you listen to his podcast. At the time, I was an avid listener and my opinion on bitcoin was shaped only by his view. It wasn't until I went to an entrepreneurs' meeting in the Fall of 2016 that I heard the real narrative behind Bitcoin for the first time. Now's not the time for me to explain it, but for those of you who are interested, I would suggest reading The Bitcoin Standard by Saifedean Ammous. Inspired by this new perspective, I went home from that meeting and bought Bitcoin for the first time—at about $5K. In fact, with bitcoin fluctuating up and down I managed to acquire a decent "bag" of bitcoin by the time "crypto winter" arrived in 2017. Fast forward to today, and that bitcoin would be worth eight figures had I held it. But I did not. You see, in 2019, I had some bills to pay, and the Bitcoin price hadn't moved in a couple of years. Selling my Bitcoin seemed like the easy solution. After all, I reasoned, I could always buy it back. Well, I never did buy it all back. My family acquired some through kids' trust over the years, but nowhere near the amount that I initially had. This decision ended up being one of the most painful financial lessons I've learned over the years (and there has been plenty of pain!). And the lesson is not just about Bitcoin. The lesson is about following your convictions. If you go back to my podcasts on Bitcoin over the past 7-8 years, you can hear it in my voice. Throughout that time, I made predictions over and over—many of which have come to fruition already and others that we seem to be on the verge of. So why, given my convictions, don't I own much Bitcoin? Because I didn't follow through on those convictions. I thought I could get in right before things started taking off. Rather than accumulating bitcoin along the way, I waited for just the right price—which never seemed to be low enough. In hindsight, what difference would it have made if I bought at 3K, 5K, or even $20K at this point? If I believed, as I have predicted that bitcoin would hit $250K within the next 3 years, why would that matter? There's another reason I didn't buy Bitcoin: it provided no tax benefit. I put almost everything into real estate and other tax-efficient investments. That's not a bad strategy in general, but not carving out an allocation for something I believed in so much was just stupid. The key lesson here is about being rational and following your convictions. Don't get greedy and don't always let the tax wag the dog. Now, you might be wondering what I think about Bitcoin today at nearly $100K. Well, my stance hasn't changed. I still believe Bitcoin is going to hit at least $250K within the next 3 years. So, in that regard, it's still something I would buy if I had the liquidity (as real estate investors often do not). The story for Bitcoin is getting better and better every day. And I think it's very important for you to take it seriously if you are not. After all, Wall Street and Governments across the world have adopted it as a truly legitimate asset, and it may very well end up an asset stockpiled by the US treasury in short order. You may or may not decide to invest in it, but not knowing about it as an investor in this day and age, is ill-advised. To understand why, listen to this week's episode of Wealth Formula Podcast. And, I am serious when I say, miss this episode at your own financial peril. /episode/index/show/wealthformula/id/35393115

494: Wealth Formula Community Members Share Their Stories 02/16/2025

493: Tax Strategies for High Paid Professionals 02/09/2025

493: Tax Strategies for High Paid Professionals People have a misconception of what the tax code is. While there are a few pages devoted to telling you when you must pay taxes, the majority of it is about the situations in which you can avoid them. That's why it's important to find a competent tax professional. And that's not as easy as you might expect. You see, most high-paid professionals get their tax professionals from referrals from other professionals. And, most high-paid professionals like doctors are very risk-averse when it comes to anything financial. So they tend to go to the "conservative" CPA—the one who never gets audited. Well, that CPA has the easiest job in the world. He's got all sorts of high-paid clients who want him not to do his job, which, in my opinion, involves trying to find you deductions. Now, let me be clear. I'm not suggesting that you try to find someone who is going to break the law for you. You just need someone who is willing to look at the tax code and find out where there are opportunities to save you on taxes. When you go down that rabbit hole, though, you also need to have your guard up. Some of the strategies used by CPAs can get a little too risky. The last thing you want is to end up paying penalties and end up paying more money than you would have in the first place. In addition, even if the tax code is used appropriately, it may be the case that the end operator is not going to make the theoretical benefit actually happen. Let's take oil and gas for example. The advantages of investing in drilling programs are very clear in the tax code. The problem is finding an opportunity that might actually pay you a return. Of the multiple investments I've made in oil and gas, I've NEVER made money. In fact, I've never even gotten my principal back. My conclusion over the years has been that the best way to save on taxes is actually good planning. As Tom Wheelwright, author of Tax-Free Wealth, says, if you want to change your tax, you have to change your facts. Bottom line: there are plenty of ways to save on taxes if you think bigger and plan smarter. You don't have to do anything crazy or controversial. Just be strategic, understand the rules, and always, always know your risks. Remember, in the world of taxes, pigs get fat, and hogs get slaughtered. So be aggressive, but be smart about it. Your future wealthy self will thank you. This week’s podcast is going to give you some good ideas and, in my opinion, some very bad ones! /episode/index/show/wealthformula/id/35208530

492: What You Need to Know Today about DeepSeek, Quantum Computers, and Blockchain 02/02/2025

492: What You Need to Know Today about DeepSeek, Quantum Computers, and Blockchain When I started this podcast a decade ago, I was completely focused on real estate. I had some pretty dogmatic views back then and didn’t really consider other investment options. That mindset worked for me. I’ve been a real estate investor since 2010, and while the market’s in a tough spot right now, we did enjoy over a decade of a bull market. That’s just how investing goes—ups and downs, and you hope the good times outpace the bad. Regarding real estate, I believe we’re essentially back in 2010. The markets have taken a beating, and if you can stomach it, this is a prime time to buy. History shows that people who act when things look grim often reap big rewards down the line. That said, I’m more open to other types of investments these days. As this cycle eventually recovers, I want to share more than just real estate opportunities with you. There’s a whole world of potential out there, and it’s important for both of us to stay informed. Lately, I’ve been especially interested in tech. I did my surgical residency in San Francisco and knew plenty of Silicon Valley folks about 15 years ago, but I regret not digging deeper into that scene. Back then, I didn’t have the money to invest, so I never thought to learn more. Better late than never, right? Now I’m in a position where I can invite really smart people onto this podcast to chat about fascinating topics. Over the next few years, that’s what I plan to do. I want to make an effort to learn about new things with you that might also help us financially. This week’s podcast is a great example. It was a blast because I learned so much in such a short period of time, and it really sparked my curiosity about opportunities in tech—maybe through angel investing or venture capital. To do anything like that, you need to get educated. And talking to my guest this week was a right step in that direction. In less than one hour, I learned why tech investors panicked last week when China’s AI platform, DeapSeek, revealed its superiority and cost-effectiveness compared to leading American AI platforms. I finally understood what the big deal about quantum computing is. And I became further convinced that Ethereum will eventually get wrecked by Solana. That is a HUGE ROI on time spent! So, expect more episodes like this. I hope you’re up for it. For now, check out my conversation with Arun Krishnakumar—it’s the most interesting conversation I’ve had in a while! /episode/index/show/wealthformula/id/35114910

491: Tom Wheelwright - Tax Changes Coming for 2025! 01/26/2025

491: Tom Wheelwright - Tax Changes Coming for 2025! For most people, taxes are nothing more than a necessary evil—a burden to be minimized and avoided at all costs. But that mindset might not be the most productive one to take. Consider that the tax code might not just be a drain on your resources but a roadmap to creating wealth. The truth is that the tax code is nothing more than a series of incentives. It’s filled with opportunities for those who understand how to use it. As painful as it may be, think of the government as a business partner offering rewards for certain behaviors. Invest in housing, create jobs, or produce energy, and you’re rewarded. These aren’t loopholes or tricks but deliberate strategies to stimulate economic growth. But most people miss the opportunity. Why? Because they treat taxes as a once-a-year obligation rather than a year-round strategy. They react instead of plan. And in doing so, they leave money on the table—money that could be used to fuel their financial future. Every financial decision has tax implications. Whether it’s how you structure your business, where you invest, or how you time your expenses, the choices you make today ripple through your financial future. When you approach taxes strategically, they become more than just a line item on a balance sheet—they become a tool for helping you achieve financial freedom. That’s what separates those who feel trapped by taxes from those who use them as a springboard for wealth. It’s not about avoiding responsibility; it’s about understanding the rules of the game and playing it well. In this week’s episode of Wealth Formula Podcast, I explore the latest incentives with someone who knows the game as well as anyone: Tom Wheelwright. He’s a tax and wealth strategist who has helped countless entrepreneurs and investors transform their approach to taxes, unlocking incredible opportunities in the process. If you’re ready to stop dreading tax season and start leveraging it to your advantage, this is an episode you can’t afford to miss. /episode/index/show/wealthformula/id/35010945

490: Investing Tips with David McKnight 01/19/2025

490: Investing Tips with David McKnight Let’s talk about a fundamental difference in the way traditional investors think versus those of us who invest in alternative assets. The traditional investor sees the stock market, bonds, and mutual funds as the safe and stable way to grow wealth over time. And look, stability is not a bad thing. But here's the problem: how many people do you know who have become truly wealthy by just sticking with traditional investments? Sure, you can retire comfortably if you're disciplined, but are you really changing your socioeconomic place in life with a 6% or 7% annual return? Probably not. Now, alternative asset investors? We play a different game altogether. We know that the big wins in traditional markets are rare. In alternative investments, we aren’t just chasing stability — we’re chasing some level of asymmetry. Yes, we still face risks and sometimes we find ourselves in cycles like the last couple of years where we may lose, but the potential upside of alternative investing can be disproportionate to what you put in. These are the kinds of opportunities that can accelerate wealth creation far beyond what traditional investments can offer. Think about it this way: the traditional investor spends their entire career trying to fill up a big cup of water — a portfolio large enough to sip from in retirement. Their hope is that they won't run out of water before they die. That’s the game plan. Save enough, live conservatively, and pray the cup doesn’t run dry. But for us as alternative investors — especially cash flow investors — the goal is fundamentally different. We’re not looking to hoard a finite supply of water. We’re building streams. Streams of cash flow that keep running no matter what. Streams that don’t dry up. Streams that allow us to live our lives without constantly worrying about running out. It’s a completely different mindset. It’s not about rationing — it’s about abundance. The differences in this type of thinking become pretty clear in this week’s episode of Wealth Formula Podcast. Do me a favor, listen to this show until the very end. I was so baffled by this interview that I asked our own Rod Zabrieski of fame to help me understand my confusion! /episode/index/show/wealthformula/id/34903600

489: The Humble Investor 01/12/2025

489: The Humble Investor As intelligent people, we often overcomplicate things? Whether it’s in business, health, or relationships, we’re constantly seeking advice, following trends, and trying to use complex strategies to optimize our results. As you may know, I am deeply entrenched in the longevity space. As a physician and science person, I am fascinated by this stuff. And while there are all sorts of drugs, supplements and tactics that could incrementally add to our lifespans, right now it is pretty clear that the most impactful principals to live a long healthy life are still pretty boring: Follow a good diet, get lots of exercise and make sure you do what you can to get a good night’s sleep. Of course I have plenty to say when we drill down on each one of those issues but the point is that, right now, focusing on eating, exercising and sleeping are far more impactful than any pill you could take or tactic you could could employ. As is the case for most things in life, the fundamentals are often what really matter and they are not often hard to see. In personal finance, the principals are also pretty basic. For most of your investments, stay disciplined, rely on data, and avoid the allure of the “next big thing.” This week, I talk to someone practices the art of sticking to fundamentals while challenging the status quo in investing. Dan Rasmussen, the founder of Verdad, is a quantitative investor with a knack for cutting through the hype and finding real value. Drawing on his experience at firms like Bridgewater Associates and his own billion-dollar fund, Dan’s approach is all about stripping away emotion, following the data, and learning from history. While his expertise may focus on public markets, the lessons he shares apply to any investor—whether you’re buying rental properties or managing a stock portfolio. So, let’s dive into the conversation and see what we can all learn about investing with humility and discipline. /episode/index/show/wealthformula/id/34822295

488: On to 2025 01/05/2025

488: On to 2025 Wealth Formula Nation, First and foremost, let me start by wishing you a Happy New Year! It’s 2025, and as we shake off the confetti and champagne from the celebrations, we step into a year full of possibilities—and, let’s be honest, plenty of question marks. Every new year brings its own share of challenges and opportunities, but this one feels particularly charged. We’re looking at a world where the economic landscape is being rewritten in real time. There’s a new administration in Washington, which always stirs up the pot, but this time, it’s not just a change in leadership—it’s a potential sea change in policy. So, what’s ahead? Will we see sweeping tax cuts as promised? And if so, how will those affect deficits, inflation, and interest rates? Can the economy sustain the heat, or are we looking at overheating and runaway inflation? Then there’s the topic of spending cuts—are they realistic, or will they end up being all talk and no action? And tariffs—will they be wielded as an economic weapon, and if so, how much will they impact everyday consumers? These aren’t just academic questions—they have real-world implications for your investments, your business, and your financial future. For example, real estate investors are watching interest rates like hawks. The Fed said they were going to lower them throughout 2025 but then backed off on those statements in the last meeting, taking more of a wait-and-see position. Meanwhile, deregulation could create new opportunities for businesses, but will it go far enough to make a real difference? It’s a lot to unpack, and that’s what this week’s guest on Wealth Formula Podcast will help us do. Joining me is Howard Yaruss, an economist, professor, and author of Understandable Economics, a book that breaks down economic concepts in a way that’s accessible to all of us. Howard has the ability to take complex ideas and make them relatable, and he’s here to share his insights on what we might expect in 2025. /episode/index/show/wealthformula/id/34724505

487: Robert Kiyosaki on the State of the Economy 12/29/2024

487: Robert Kiyosaki on the State of the Economy Like everyone else, as the new year approaches, I become a bit reflective. I'm not really the kind of guy to have heroes nor do I fawn over celebrities. In fact, there is only one person in the world who I credit with fundamentally changing the course of my adult life: Robert Kiyosaki. I've had the privilege of meeting Robert multiple times over the years and have been fortunate enough to have some meaningful private conversations with him. But the real impact he made on me was through his book called "Cashflow Quadrant." Had I not read that book, I doubt I would have ever started this podcast. Honestly, I'd probably be an academic surgeon somewhere with little interest in the economy or investing. What's truly remarkable is the incredible impact his books have had on so many people. Kiyosaki's teachings, especially "Rich Dad Poor Dad," have been a game-changer for countless individuals worldwide, sparking a revolution in financial thinking. His emphasis on building businesses and creating assets has been a wake-up call for many. I've heard numerous stories of people leaving traditional careers to venture into entrepreneurship, building successful real estate portfolios, and overcoming long-held limiting beliefs about money and success. It's astounding how his teachings have ignited a wave of financial literacy and entrepreneurial spirit. Now, as a middle-aged guy, I find something else about Kiyosaki perhaps equally inspirational: The fact that he published "Rich Dad Poor Dad" at age 50. It's a powerful reminder that it's never too late to learn, grow, and achieve financial success. Remember this the next time you think you might have missed your chance. If you haven't already, I urge you to pick up a copy of "Cashflow Quadrant" and experience it for yourself. It might just change your life as it did mine. In the meantime, this week's Wealth Formula Podcast features my latest conversation with Robert Kiyosaki. /episode/index/show/wealthformula/id/34643535

487: Robert Kiyosaki on the State of the Economy 12/29/2024

486: Why Energy Might Be the Smartest Way to Invest in AI 12/22/2024

486: Why Energy Might Be the Smartest Way to Invest in AI Artificial intelligence isn’t just a passing trend—it’s a revolutionary force reshaping industries, driving innovation, and changing the way we live. But as investors, we face a critical challenge: how do we capitalize on this seismic shift without falling into the trap of picking winners and losers in an unpredictable landscape? History has shown us how tough it is to get it right with emerging technologies. The dot-com era gave us Amazon and Google—grandslam investments that transformed early believers into billionaires. But for every Amazon, there was a Pets.com, a tale of overhyped potential that never materialized. With AI, the stakes are even higher. We know the technology is real, and we know it will grow exponentially. But betting on individual AI companies can be like playing the lottery. What we do know with certainty, however, is that AI is an energy beast. The computing power required to train and run large AI models is staggering—and it’s only going to increase. That’s why I believe one of the smartest ways to invest in AI might not be through AI stocks at all. Instead, it could be by focusing on the foundation AI cannot exist without: low-cost energy. While solar, wind, and traditional energy sources will play a role, one energy source stands out as particularly intriguing: uranium. Nuclear energy powered by uranium is not only incredibly efficient but also one of the most consistent and scalable sources of clean energy. As demand for reliable energy surges to support the AI revolution, uranium could become an unsung hero in this story. To explore this idea in more depth, I recently sat down with a uranium expert. We discussed the global energy landscape, why nuclear power is gaining traction as the world looks for low-carbon solutions, and how uranium might play a critical role in fueling the next wave of technological innovation. [00:00] Introduction. [01:19] The challenges of investing in AI’s growth. [02:06] Energy’s critical role in AI development. [04:04] Uranium as a scalable and clean energy source. [05:12] Guest introduction: Ben Feingold from Ocean Wall. [06:46] Uranium market trends and driving factors. [11:05] Public safety concerns and nuclear advancements. [13:06] Overview of small modular nuclear reactors. [16:14] Kazakhstan’s dominance in uranium production. [20:48] Kazakhstan’s underutilized uranium resources. [21:47] Projections for uranium market growth. [24:10] Policy perspectives on nuclear energy. [26:09] Investment considerations for uranium. [27:50] About Ocean Wall’s investment services. [30:02] Closing thoughts on uranium’s potential and energy needs. /episode/index/show/wealthformula/id/34568795

485: Bitcoin's Journey is Not Over 12/15/2024

485: Bitcoin's Journey is Not Over Bitcoin has been making headlines again as it surged past the $100,000 mark. If you’ve been following this podcast, you’ll know I’ve been talking about Bitcoin since late 2016. Back then, its price hovered around $3,000 to $4,000, and that’s when I truly started to believe in its potential. But what is Bitcoin, anyway? At its core, it’s a type of digital money that doesn’t rely on banks or governments. Instead, it’s powered by blockchain technology—a public ledger that securely and transparently records every Bitcoin transaction. This technology makes Bitcoin decentralized, meaning no single person or entity has control over it. One of Bitcoin’s standout features is its fixed supply. Unlike traditional currencies, which governments can print more of at will, Bitcoin is capped at 21 million coins—ever. This built-in scarcity makes Bitcoin similar to gold, but even more predictable because we know exactly how much exists now and how much will exist in the future. Right now, the total value of all Bitcoin—its market cap—is about $2 trillion. That might seem like a huge number, but it’s small compared to other assets. For example, gold’s total market value exceeds $12 trillion, and the U.S. stock market is worth around $50 trillion. Despite its rapid growth over the last decade, Bitcoin is still relatively small in the financial world. Why does this matter? Bitcoin is still in the early stages of adoption. Large investors, corporations, and even governments are only beginning to see its value. As more people and institutions buy into Bitcoin, its price is likely to rise, thanks to its fixed supply and growing demand. It’s not unrealistic to imagine Bitcoin’s market cap growing tenfold to $20 trillion over the next 5 to 7 years. While this might sound ambitious, consider that Wall Street has only started engaging with Bitcoin in the past year. Institutional exposure is almost certain to expand in the years ahead. But it’s not just institutions. Surveys show that younger investors are more comfortable putting money into Bitcoin than in traditional markets. Think about the long-term implications of younger generations investing Bitcoin into their retirement accounts. So why am I sharing this with you? Back in 2016, I encouraged listeners to take Bitcoin seriously. A handful of you did, buying and holding onto Bitcoin—and you’ve seen $50,000 grow into more than $1 million. Do I think those kinds of returns are still possible? Not really. But I do see the potential for 10x growth in the not-too-distant future. If you’re thinking about long-term investments, it might be worth grabbing some Bitcoin and simply holding onto it for the next five years. It’s unlikely to make you as wealthy as early adopters, but it could be a strong way to grow wealth for a portion of your portfolio. If Bitcoin is new to you, I encourage you to spend time learning about it. This week’s Wealth Formula Podcast is a great place to start. [00:00] Introduction to Bitcoin and Joe Kelly's Journey [18:32] Bitcoin as Digital Gold: Current Perspectives [24:31] Unchained: Securing Bitcoin Holdings [30:45] The Cost of Security: Is It Worth It? [36:26] The Future of Bitcoin Loans and Collateralization /episode/index/show/wealthformula/id/34456300

484: Why More Americans Are Choosing to Move Abroad 12/08/2024

484: Why More Americans Are Choosing to Move Abroad The idea of packing up and moving to another country might sound radical at first. But for many Americans, it’s becoming a logical next step. Whether it’s to stretch the power of the strong U.S. dollar, embrace a different lifestyle, or take advantage of financial perks like tax savings, the appeal of living abroad is growing. Let’s start with the financial benefits. In countries like Mexico, Costa Rica, or Thailand, your money simply goes further. Retirees are finding they can afford things like beachfront living, high-quality healthcare, and even household help—all on a modest budget. And with the U.S. dollar holding its strength, this isn’t just about living cheaply; it’s about living well. Panama, for example, doesn’t tax foreign income and offers retirees major discounts on everything from medical care to transportation. Portugal sweetens the deal with its Non-Habitual Residency program, which reduces or eliminates taxes on certain income for up to a decade. But it’s not just about saving money—it’s also about living differently. Many Americans moving abroad talk about how the experience has opened their eyes to new cultures, new rhythms of life, and, most importantly, new possibilities. In Portugal, life feels slower and more intentional, with days that revolve around community, great food, and the natural beauty of the coastline. Thailand offers a mix of vibrant city life and serene island escapes, all at an affordable price. Financial freedom and a cultural reset are big draws, but there’s more to the story. Some countries actively court expatriates with residency programs, tax incentives, and healthcare systems that are as good as, if not better than, what many Americans are used to. Add in the benefits of the Foreign Earned Income Exclusion, which allows Americans working abroad to exclude up to $120,000 in income from U.S. taxes, and the move becomes even more compelling. If you’re looking for something even more unique, New Zealand might be a place to consider as well. Known for its stunning landscapes, safety, and high quality of life, it offers an appealing combination of natural beauty and modern convenience. New Zealand consistently ranks as one of the happiest and safest countries in the world, with a healthcare system that rivals the best globally. Whether you’re considering retirement or just a major lifestyle shift, New Zealand is a place where you can truly start fresh. This week on The Wealth Formula Podcast, we’re exploring New Zealand as a destination for Americans looking to make the leap abroad. I’ll be talking to an expert on what it takes to move there—from navigating visas to understanding the financial and cultural transition. If you’ve ever thought about trading the familiar for the extraordinary, this conversation might just convince you to take the next step. 00:00 Introduction 09:19 Reasons for Migration to New Zealand 10:26 Living Conditions and Lifestyle in New Zealand 13:42 Real Estate and Cost of Living 14:28 Cultural Diversity in New Zealand 16:38 Healthcare and Professional Opportunities 18:10 Taxation System in New Zealand 19:42 Business Ownership and Taxation 21:42 Investment Opportunities and Capital Gains 24:14 Comparative Analysis with Other Countries 28:55 Cultural Comparison: New Zealand vs Australia 25:56 Property Ownership Regulations for Foreigners 26:48 Visa Options and Immigration Pathways 30:28 Conclusion and Contact Information /episode/index/show/wealthformula/id/34333025

483: Finance and Market News 12/04/24 12/04/2024

Giveaway: $2500 Full-Body MRI 12/02/2024

Wealth Formula Podcast

TOPICS