Where To Invest For Cash Flow And Wealth

hey guys welcome back to the second video and the perfectly passive income preview series just a reminder I'm doing this series and an upcoming training class as a way of testing some new content I'm thinking about putting together a workshop in Austin Texas in 2016 and I'm kind of working through some of the content and I'm testing some of it at a free training class on August 9th you can sign up for that over at perfectly passive income com it's just a way for me to kind of run through some of the content with you and get your feedback and hear how I can kind of refine it for for for future use so I could charge one hundred bunch of money for it hit the Horde shop in 2016 alright in this video I'm gonna walk you through my wealth triad strategy now my wealth triad strategy is the way that I allocate the money that I make in a business for a long-term wealth and cash flow so if I was advising a new person on how to be successful and how to get rich I would advise them on three things step one you start a business step two you invest or you pay yourself a salary and you take 10% of that salary and put that into long-term wealth investments and I'll go through what that is okay and then step three is to put the profits of your business either quarterly or at the end of every year into short-term and by short I mean one two three years short-term high-yield low-risk investments now step one is starting a business now if you're watching this video you probably either want to have a business we already have a business but businesses are both the place where you control the income because if you simply do this better you make more money whether it's by attracting higher level clients or it's by promoting an affiliate program or it's doing a promotion to your list or it's releasing a new product or whatever it is you can always generate new cash in a business because you control it so in video one where I talked about how to get how I got a free Tesla I said very matter-of-factly if you will just put a hundred grand and into an account where the hell did the the hundred grand come from it comes from releasing a new product or doing a promotion doing something in the business so for me that was a hundred thousand dollars in new money and I'll go into the strategy I use for tapping my business for cash on the live class and in the the perfectly passive income training series but for me it was a hundred grand that I needed for the Tesla and I raised that from from the business now if you were to make a hundred grand in a job this would be taxed so the money that you would make to put into a toy would be half of it would go to the government but if you spend this on a legitimate expense like a company car all of a sudden you get to keep all of this and it becomes half paid for for did I did I just draw that off the camera again I did that again so so the hundred grand when kept business is now fully usable so for me it just went right into the Tesla I tell you all of this because businesses are probably the best legitimate tax shelter assuming that you're going to spend the money so you get to keep more of the money that you're going to eventually spend if you have a business plus you impact the amount of money that you make if you want to make more money you just do something better in your business for me right now that's attracting higher level clients and it's doing it's it's not changing Who I am or what the products are but just taking the same products and services that I have and going to the people are willing to pay the most I found out that some people are willing to pay a thousand dollars and other people are willing to pay a hundred thousand dollars for the exact same thing so I get to work a lot less make more money if I just focus on the people who are willing to pay more that was a mouthful but that's part one of the wealth triad the question often comes up in business how do you pay yourself what do you do about taxes how do you make sure that you're living a consistent lifestyle without spending all the money in the bank what I recommend for people is that they put themselves on salary from their companies that are paying themselves the same amount every month and then taking 10% of that and putting that into long-term wealth investments in my opinion this is my opinion this is not investment advice I really don't even know what I'm doing they probably shouldn't even listen to me at all but in my opinion the best place to put your money in fact the only reason to invest at all is for cash flow I have have you ever worried about putting your money into the stock market or or someplace where it could go down in value overnight to me that's a nightmare scenario and I want to be a part of that I don't want to be invested in things where all my money could go away so the most predictable thing in my opinion for you to do is to buy on cash flow to buy on passive income and one of the most proven places for this is increasing dividend stock now what the heck is increasing dividend paying stock well there is a collection of stocks out there there's actually several hundred of them that for every year for at least the last 10 15 even 20 25 years have increased the dividend that they paid to their investors every year no matter if the market is up or the market is down or the market is sideways if it's crashing or it's booming no matter what they have increased the dividend that they've paid to their investors so if it's $1 per share this year next year it's a dollar and a quarter and the year after that it's a dollar 50 in the year after that it's $2 and then 250 and $3 and it goes up every year consistently companies include coca-cola Verizon Chevron there's several hundred of them and a lot of them are blue chip stocks Walmart is one of these McDonald's is one of these so they're recognizable companies and when you look at them on the surface the dividend yields are fairly modest my target is about 4% if you can get 4% right away that's an in that's a buy signal for me a really good story and my favorite example is Target a couple of years ago Target had a big credit-card fiasco where the I think it was the Visa credit cards got got leaked and there's a big target Fiasco and the company stock fell like 35% so the stock was doing this and then the visa scare happened and it fell and it felt pretty substantially well at the same time over the last 25 years the dividend of target was doing this it just kept going up so when it fell and it hit the 4% mark that was a buy signal for me that means go all-in on target this is a really good stock to hold for a long time and even though it may have come down a little bit further after that it of course recover and is now here and the dividend continues to go up so if I bought it here and the dividend is now here the return on investment is like we'll just say it's you know six and a half percent per year which is really really healthy for a dividend paying stock that you're going to want to hold for a long time because this is going to continue going up so in five years the ROI and my original money just got marker on my hands there are why on my original money is going to be ten twelve fifteen percent on my original money I'm not putting more money into that it's just what I purchased and over time the return on that is going to keep going up and keep going up and keep going up and if I mean all things stay the same and on the same pace that they are right now the value of the underlying stock is also going to go up and of course there's no guarantee it's going to go up it might drop off a cliff tomorrow but even if it dropped off a cliff guess what would happen the dividend keeps going up according to the last 25 years of history so if it ever dips again I'm just going to bind more because 4% is that is that buy signal so this is how you can identify where to put the money the 10% of your salary that you're putting into some sort of investment every single month you just follow the cash flow you follow the companies that have a history of paying you more paying you more dividend no matter what the market is doing even during the 2007 crashes and Fiasco's they were still paying more to their investors than the previous year so if you plan on putting these into long-term wealth stocks then it doesn't matter what the markets doing you don't have to guess you just follow the cash flow you let the cash flow be an indicator of these so you could simply Google companies with increasing dividends for 25 years or ten years or whatever you know you want to follow and you'll come up with a list of these this is where I recommend people put their put the the percentage of their paycheck they're getting every month so that is step two if you were to do only these two things how do I look from this angle this is my good side my right there's the better better half of my face if you only did these two things you'd be better than about 80% of entrepreneurs a because you control your income in a business and B because you're putting into a proven investment model where you're not guessing it's not sexy it's not exciting four percent on the surface looks really boring like who gives a hoot about four percent but given five to ten years this starts to get really exciting you're looking at sometimes ten percent plus on your original money sometimes of course everything is going to be different and past performance is no indicator of what's going to happen in the future but if you've got a long track record this is set to go up a lot over time so this is just there's no guessing in here you leave follow the money where it gets a little bit more exciting is in stage three of the wealth triad where we take our profits at the end of the year what's left over from paying ourselves and running our company expenses and we put them into short-term high-yield low-risk investments and actually you know I shouldn't even call this short-term we're just going to say high-yield low-risk investments because there are some places here that I'll hold for a long time including real estate like single-family homes apartment buildings and we'll talk about some of this more in video number three this also includes business funding this is notes there's private lending and there are some other ones as well but let me run through some of these pretty quickly real estate we'll talk about pretty pretty thoroughly in video number three but I personally now I don't start a lot of new businesses I now will fund businesses that I'm able to impact so if I'm familiar with an industry if I if I know how a certain type of business works and I have a client or a student that has a similar business that I know that I can impact I will buy into that type of a business and very quickly get an ROI on it it's the shark tank model it's the kevin O'Leary model so Robert Herjavec model on on Shark Tank who will invest in this knowing they can quickly impact the business and get their money back with friends really really quickly why invest in notes notes are basically buying debt it's it's buying mortgages its buying sometimes student loan debt and that sounds really complex but we're going to distill this and make it really really simple in upcoming trainings in fact there's actually some places that will automate it for you for returns of eight ten twelve percent fairly easily this is one of the places as I go when I wanted to fund the Tesla I put some money into notes and got that used that money to pay for to pay for the Tesla payment and then a private lending I you I actually fund some some real estate deals i fund some investment firms that will pay a fixed amount every month and the returns are often 11 12 13 % and they're paid out monthly which gets me pretty close to my target of this which is 1% per month that was slick right that is supposed to say month and i know i'm nerding out on you a bit but i promise you as we work together a longer this will become really really clear so my target for these high-yield low-risk which mean when I say low-risk I mean we have protected downside meaning there's there's a way to limit any downside loss so if we put money into real estate we haven't really lost any money we're putting it into an asset that we could in theory borrow against meaning we could immediately pull our cash back out so we could put money into this pull the cash right back out and keep it and still have the asset that's paying is cash flow a lot of people don't see that part of the investment side where you can keep your principal and it continues to pay you cash there's a I have a large selection in notes right now that are paying me about one and a half percent per month which is 50% higher than 1% which is my target I picked this number by the way because my uncle said to me when I was like 15 if you can just get 1% per month on your money you could you would own the world as basically what he said for some reason that stuck with me and I found out that it's not that hard to get 1% per month on your money I feel like I'm rambling to you so let me simplify this a little bit alright so step one start a business control the income that's coming in be able to tap tap it for cash whenever you need more put yourself on salary pay ten percent into increasing dividend paying stock blue chip stocks that have proven to increase the dividend year after year after year then take the profits from your business at the end of the year end of the quarter put them into high-yield low-risk investments here are some examples of places that you could put them we'll dive more into this inside of the perfectly passive income training class and into the actual training and inside of that alright so that is the wealth triad this is the three steps to building long-term wealth and cash flow this is if you do this you're doing better than 99% of people who ever try to invest without a plan and they just guess and they put it into stock that they think is going to go up in value or they buy a house if I hope appreciates that's gambling that is not investing when you follow the cash flow you have a much more dick table model and you're in more control of the process so after several years you break out of the rat race faster than you knew possible you increase your cash flow and you increase your long-term wealth now in video 3 I'm going to be walking you through some tax shelter strategies and we're also going to talk about some investments that grow tax-free and allow you to build up wealth very quickly and give you guaranteed passive income well into retirement I hope you'll join me for that video and remember you can sign up for the perfectly passive income training class at perfectly passive income comm and that's how I'm kind of testing some more of this content and see if people want to learn more so I hope you join me for that the rest of this free series and I hope you enjoyed this video as much as I enjoyed making it for you take care

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Views: 78,598

Rating: 4.7924089 out of 5

Keywords: Cash Flow, Wealth, Passive Income, Marketing, Investing, Buffett, Tony Robbins, Whiteboard, How To, Financial Freedom, Real Estate, Business, eCommerce, Amazon

Id: pThbF3el_GE

Length: 18min 0sec (1080 seconds)

Published: Tue Aug 04 2015