2020 Advanced Tax Saving Tips w/ Toby Mathis [Part 2 of 2]

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So what if I have an asset, I did a cost segregation. I shipped that all the passive losses and I slide that asset into profit. Do I have to give up those passive losses personally or no? Passive loss is in the year that it’s earned. So the same way you can be a real estate professional in one year and a non real estate professional, just a regular passive investor.

 

Is the same way those losses get locked on your return. There is something called disposition of the asset where you can unlock those losses and they become ordinary losses. So the one thing we would look at is whether that disposition would qualify. If we transferred into a nonprofit, the other reason that deal might be slightly different.

 

Is that while there’s no issues with putting in straight line depreciation property into a nonprofit, as far as the value, when you put in property where you’ve accelerated the depreciation that accelerated depreciation, just the five, seven and 15 year property gets subtracted from the fair market value.

 

So if I bought a property for 500,000 and I wrote off a hundred thousand in year one, And then the property goes up to a million bucks and I transfer it into the nonprofit. I would take the a hundred thousand dollars of accelerated depreciation and I would subtract it from the million. So I’d get a $900,000 deduction.

 

And you’ve mentioned it earlier, but is it essentially you can load assets into the nonprofit just as long as it’s not luxury or what about like class, a office space that don’t work as long as it’s passive? What the nonprofit, the only thing the nonprofit worries about is when I have an asset, whether it’s used for my charitable purpose, for example, I don’t like private foundations where they’re not doing anything.

 

All they do is give money to other nonprofits. We’ve done them, but I much prefer things that are actually doing stuff. And people don’t realize how wide open that is. The example I give people that usually makes them go. Hunt is Ikea and Ikea is a nonprofit. Always has been. The majority owner, the majority control is actually two different charities.

 

And then the kids of Inbar the guides set it up for still control about a third of the board. So they, nobody can get rid of that company in it. He is very, almost no tax. I think it was about 4%. When you operate an ordinary business than a nonprofit, there’s something called UBIT that you have to be worried about unrelated business income tax.

 

And if you’re leveraging the asset, there’s always the possibility of unrelated debt financing, but it’s a misnomer. We don’t really worry about it because there’s still depreciation that we get to use against it. So even if it did make that. You’re probably going to be paying to somebody anyway, like you’re gonna be paying it out as a salary or another expense.

 

Like you’re not more than likely you’re not going to get hit by anything. If you did you pay a little tax on it, but the charity pays it. I must admit, like from an asset protection standpoint, you’re pretty solid there. Nobody could ever take it away. That’s the thing, things, nobody owns it. It’s for the public benefit, you control it.

 

So if you run over a bus load of nuns, you get sued, but lightening suit out of you, they can’t touch it. They could take your, if you start paying yourself out of salary, they can garnish some of those wages. But even that’s 25% of a wage. So it’s not like they could just. Go in there and they can’t touch the asset.

 

And then you control. Usually what people would do under that scenario is they’d pay somebody else, a spouse or a child, and they would take care of that individual, but it just takes the bowl, the bullseye off your forehead. When you have a lot of assets in your walk around with them in your name, I just say you’re attempting fate.

 

There somebody is good inside. They’re going to make their bones on trying to take your stuff. So you, do you like the strategy in new of, or it conjunction with something like a Nevada dynasty trust or like a domestic asset trust or irrevocable trusts? Like even though there’s, everybody’s got their different little, what they think is best, what is your kind of thoughts on how this all works and you use what’s appropriate at the time?

 

And you try not to overthink it. The, uh, Nevada asset protection trust. Yeah. All that is a trust that could last 365 years. Good to cans into another one and keep going on. It just means we’re getting it out of our estate. I don’t own any anymore when, while I’m alive, technically somebody can’t take it from me.

 

So they’re an asset protection tool and in all living trusts end up becoming. If you draft them right. Dynasty trust anyway, you know, unless you want to give all your stuff to your kids right away. So I would say don’t do that. My experience is that you’re better off having instead sit in trust for their benefit during their lifetime, and then going to another generation and you can have them go for a long period of time and you can pick whatever state you want.

 

So Nevada is the number one state for asset protection for us. The reason being is a, they last a long period of time, 365 years. You can make that go longer. But also if you have a creditor of a beneficiary, all creditors are protected. Whether it’s child support, alimony, personal injury, there’s no exceptions and most States have exceptions.

 

So Nevada does not. So we tend to. Put the Situs of our trust in Nevada for that reason. So that’s why you see you here in Nevada asset protection trusts. It’s a fancy way of saying credit shelter trust set up in Nevada. You know, it stuff, but stuff. I think we’ll talk about, bring you to the mastermind and cut Bobby, talk more specifics with the folks there at a future date, but let’s get back to the crystal ball here.

 

So the big thing is the $400,000 threshold. To me, if you’re able to lower your AGI below 400 grand or even less, does it not even matter still on 32% tax bracket, if you’re over 400,000, that 39.6 plus your state. So it’s going to be painful. If you’re below the 400,000, you’re going to get a deduction.

 

That’s going to come back. So that may help some people out. You’re a state and local taxes. You’d be at a write off right now. It’s capped at 10,000. So for some people it might actually be better. We always look at what’s bad about it, but what’s good about it is you make less than 400 grand. You’re going to protect protected class.

 

If you make over a million bucks, you’re completely you’re on the endangered species list. You got to do something, you got survive. Some, there are some ridiculous ways, by the way, to lower your income, you’re doing one late in your real estate professional. That’s not available to everybody. There are things called defined benefit plans that have become more and more powerful over the years with savvy.

 

Advisers where you’re able to put in some cases, upwards of a million dollars a year tax deferred, there’s other vehicles, if you want to get there. And it’s just recognizing that, which category you’re in, if you’re making 200 grand or in below you’re okay. There’s some things you can still do to lower your taxes.

 

Absolutely. There’s still some things you can do to make sure that you’re. Taking advantage of, of opportunities that are available to you to minimize your tax about you’re not, you don’t have the bullseye on your forehead. You’re making 1.5, 1.6 million a year. Got a goals eye on both were asset projection by the government.

 

They want to take a big chunk out of that. And there’s some things we can do to lower that so that you’re not sitting there feeling like you’re just opinion getting hit and all the canvas. So let’s talk about that a little bit. Maybe not for example, like land conservation, easements, not, let’s not really get into whether that’s.

 

It’s going away or right now it’s being fought around a little bit, but what’s what do you think with the new administration new things might be coming? I think that would actually be kind of a greater incentive lane. And I would, the only thing that I would say is the administration right now is looking at it saying that there’s been abuse in the conservation area where they’re overvaluing the conservation easement itself.

 

So it’s something called a listed transaction. If you go over 250% of your investment in an English, it means I give a doll. And I get a deduction of more than $5. They’re going to look at the transaction. That’s all. They’re going to make sure that it’s legitimate because there’s people out there pitching 15 and 20 times.

 

Yeah. Those are the boneheads, right. Taking advantage of it. There’s no way that the value holding up. So I got, we have one right now that we’ve been looking at and these are legitimate. So it’s a developer. Developer is developing a big chunk of Vail, Colorado. So they have an area that they’re willing to conserve.

 

What it does to their other developments is makes that land more valuable. So they’re willing to put restrictions on an area that’s already been approved for the development. All the plans are up like you literally, they built sections of it. And they said, this land is worth $40 million with the developments 42.9 or whatever, but we bought it for 9 million.

 

So we’ll give away all the development rights. And they get a deduction for it. And what is what it is. They say here’s an area that would be perfect if it was never altered. And it’s where two rivers come together. It’s about, that’s going to make everything else. The whole area is going to be better off.

 

So there’s about $30 million of deduction. So if you put in a dollar, let’s say you were one of the 9 million. Then you’re getting a deduction worth. In this particular case, it ends up being more as about $4.70 for every dollar. So you’re going to get to write off, you’re going to have a charitable deduction of $4.70 for every dollar you put in what’s that board at all at 4.7 words, it depends on your tax bracket.

 

If you’re in the 20% tax bracket, it’s going to be 20% of 4.7 is what it’s worth. And it’s what is that like a dollar for whatever it is. See if I can actually do math in my head, a dollar 40 or something around there, a buck it’s you paid a dollar to get just over a dollar. You’re probably not doing that for tax purposes.

 

You’re in the highest tax bracket probably worth it. It’s probably going to be, Hey, you know what? I get a buck 60, a buck, 70. For every dollar I put in, I’m saving a dollar 70. Okay. That’s worth it. Saving an extra 60 cents and that’s conservation stuff. And Biden is showing that he wants more solar and he wants more conservation.

 

So I would say that the opposite is going to hold true on that area, that you could actually see more incentives and there’s a crazier one land. You and I have never spoken of, which is the solar credits that are still floating around out there for business use, for example. What’s going to become a big incentive.

 

And I can almost tell you that this is going to be a reality. So I’m going to get my crystal ball out and say, you’re going to watch this. And then we’re going to listen to this in three or four years and say we were predicting it right now. If I put a solar array on a building and let’s say it costs me a million dollars.

 

I get a tax credit of $260,000, 26%. Even if I finance the whole thing, that’s a credit. I get a credit. That’s not a deduction. That’s a dollar for dollar credit. So if I owe a hundred thousand dollars in taxes and I have a $270,000 tax credit, I don’t pay any tax that year. I use 100,000 of it and I carry it forward into future years.

 

But I also get to depreciate the solar and I depreciate 87% of it. So a million bucks, I’m going to get an $870,000 deduction in year one, plus a $260,000 tax credit. That’s not bad. So there’s, and I think they’re going to increase those incentives. It used to be 30, 30%. And then this year went down next year.

 

It goes to 22%. So that solar panel, you can deduct it all in that first year. You can deduct 87% of it and you get a tax credit for 26% of it. So maybe I actually go around Hawaii and find a contractor. It makes deals with some people, put some solar panels have to sell off the credits to invest in them a year.

 

Is that you’re already there. Yep. That’s exactly what they’re doing. So I have a client. That’s what he does. He, he installed solar, but it gets interesting. What he does. He goes to a utilities, public exempt organizations, five Oh one C3 churches. And he’ll go find a wealthy parishioner and say, Hey, would you, would you put the solar array on?

 

And then do it five-year contract on the energy because there’s going to be energy independent. And so they’ll sell it to the charity and say, Hey, after five years, the array is yours. And so he’s taken the big tax credit. They have a little tiny bit of income on the, on the revenue that’s coming in because they’re technically, they’re selling them the electricity.

 

Although, usually they just give it right to the charity. So that washes itself. There’s a deduction. And then, so you have a little bit of income with a deduction that equals it, but you get that first year. It’s a ridiculous deduction, but where that’s really going to be important later is next year, if the taxes do increase, guess who’s going to be really incentivized to do stuff like that.

 

Yeah, that’d be cool. Like investors bring in the capital, they get the tax incentives and the plan owner gets get some cheaper energy. Yeah, what they do is they lock it in and they’ll say your energy, won’t go up for five years and then you have the right to buy it at some peppercorn price. So you’ve already depreciated it.

 

So you don’t really care and you just don’t want to have a E you would recognize all the income as ordinary income. If you sold it for more, more than your basis. You have a really tiny basis. So that’s what you sell it to them for you like, Hey, 13% basis, whatever that is. So it’s, I just want to not pay anything.

 

Yeah. So during the, during those five years, I have a little bit of energy money coming in and I haven’t payments on the loan on the solar, but it’s basically washing itself. So I, again, I’m getting a huge tax credit. I get a huge deduction. I have very little income that’s coming in off of it. So I’m getting a big first-year benefit and yes, there’s a lot of people starting to do those now.

 

And I think that creative syndicators are going to get into that arena. I think going back to the land conservation easement, I think Democrats are typically more than farm mental sides. So I think that’ll continue to be a little bit, but I, what I’m looking for is then to create some kind of safe Harbor instead of us speculating backroom floor.

 

That they just make it more black and white. So mr. I need to file an April. Doesn’t get all for doubt, but they did, they did make a safe Harbor. It’s 250% and they made everybody list it so that, so the it’s the syndicator that gets audited in those situations, not the individual. So usually what they’re doing is they’re trying to figure out who these promoters are and whether they actually gave away the interest.

 

And so what oftentimes will happen is somebody thinking. I’ll pretend to give away something and we’ll revert back to me in 20 years. So I’ll get a deduction, but it has to be a complete gift and perpetuity. Somebody who, who doesn’t, obviously that’s a syndicator who’s running fast and loose and it’s not.

 

Doesn’t hire competent professionals to look at the situation and say, Hey, you actually have to get your way. And I’ll use the example of our president right now. Trump. Mar-a-Lago is a good example. I think it’s six parcels. Mar-a-Lago the golf course. And he gave away the development rights. I think it was on two or three of them, but also the clubhouse.

 

And so there’s a bunch of cultural antiques in the clubhouse. They have to have a non-profit gala every year, so people can see it. But on the parcels that had the golf course, you gave away the development rights to an outside the conservation RT. And the reason that you do that is so that nobody’s tempted to sell the golf course and build a bunch of houses.

 

It does a couple things, Hey, that will always be open space. It’ll never be developed. They’re not going to build buildings on it. They’re not going to put houses on it. Number two is if there are houses on a golf course, you want to know that they’re not going to sell the golf course. And all of a sudden your house it’s on the fairway on the ninth hole is.

 

All of a sudden in a very dense pack of houses that are on postage stamps, that just happened in a community. That’s literally about a mile away from me here called Queensbridge, where they saw the golf course and they’re going to develop it. And it’s a lawsuit in the making that’s where Snoop Dogg that, by the way, it was in Queens Queensbury, I think it was one of the condos that’s in there, but it was like a super high end area of Summerlin.

 

And yeah, the golf course wasn’t profitable. So the guy just let it go Brown and selling it to a developer. And so all these people that lived on the golf course, all of a sudden, they’re on a Brown golf course. That’s gonna, you know, they’re gonna have neighbors in their backyard. And they thought they were going to be living on a golf course.

 

So there is some benefit to it of saying, Hey, I have a golf course, worst case scenario. It’s going to be open area and you guys can decide, maybe it won’t be a golf course someday, but it’ll be open green area. Maybe it’ll be. Maybe we’ll plant a bunch of trees. And if you give it to like ducks unlimited, maybe there’ll be a wildlife habitat that’s in your backyard.

 

So that’s actually one that people give a lot of land to, but it’s, that’s that world, the people that live in that world land they’re true believers. Like these are the folks that are like, Hey, we need, we need these open spaces, please. Don’t. Put asphalt over everything, especially on why I’d imagine you guys would have an appetite for that.

 

So wrapping things up. The last thing I wanted to go over was the corporate tax rate going from 21 to more of a 28. Do you guys finally got me on a C Corp system after takes me a long time to figure these things out? I don’t have a home office. I have an administrative office because I have a SQL or now I’m getting it.

 

I’m practicing. I’m practicing for that audit, but I’ll probably have you guys talk, but the audit rate is they just came out with the audit rates from 2019, your little, uh, little companies, little S a little seeds, little partnerships were below 0.0, zero five. They didn’t even register. It’s first year, I’ve seen an asterix as the audit rate, as escorts were 0.01, a C Corp syrup when you’re small you’re minuscule, but the people that get audited or the individuals in big companies, companies, the, yeah, the LLC sole proprietors, they still there about it’s still, what would it be about a hundred 1500% more likely to get audited right now?

 

Yeah. It’s not even close. And so I always chocolate because we just don’t see audits here. We actually had seven years that we had zero audits of any of the companies that we set up and we do more than 6,000 returns a year. So like we should be seeing lots of audits because the audit rates traditionally around a percent it’s been dropping, the IRS is understaffed overworked, and they’re focusing on the people that are actually bad doers when you’re a small company.

 

Truly not much that they can get. If you have a lot of different options, you can’t take it one way. You could probably deduct it. And three other different ways as an individual, you have really no options. And so they, when they audit sole proprietors, they win 94 to 95% of the time. It’s a slam dunk. They went about 64% of the audits against companies, corporations.

 

It’s not even close, like when you actually start doing math on it. And you’re like, Oh man, who should I audit is audit sole proprietors all day long out of the modern pause. People are playing games when they’re sole proprietors, you know, they’re more apt to do stupid things. Like you’re not allowed to sell phone.

 

I can’t write off myself on it. And sole proprietorship. I can just go down the email lists and say, who has all the Yahoo or Gmail accounts that have skull audit those guys? They don’t know what they’re doing. If I was the IRS, I would just audit them all. They actually, they do have algorithms and they were auditing all the earned income tax credit.

 

So they were auditing all the poor people that were taking the earned income tax credit because none of them would respond and they’d win. Every audit was the most disgusting thing I ever met. I talked to the programmer who said, I felt dirty after writing the algorithm and it’s stupid stuff like that.

 

You’re just looking at it. And government going guys, I can tell you who the screwballs are. Like we already know who they are. They’re the ones doing everything cheap and fast. So that’s why I do the C Corp guys. But with the taxes going up, Toby is that we’re going to keep it C Corp or we’re going to change it.

 

S-corps what do we do? What’s the plan here calculation to see. So I can tell you the numbers. If you make over a million bucks and you have a C Corp and the C Corp makes its money, pays tax pays it out to you. You’re looking at an aggregate tax bracket of about 59%. That’s going to be painful. So if you’re a high income owner, it’s going to hurt for you lane.

 

If we paid out the profits of the seed Corp, you’re in the 0% tax bracket, your long-term capital gains is the dividend rate. Well, what about like a lot of my clients, like, Hey, The C Corp to them, or S are a little complicated to them. And th they just think of themselves as lowly little passive investor got a few deals that still makes sense.

 

You just do the math. And so I’ll use a stock trader. As an example, we don’t have a miscellaneous itemized deductions, stock traders. It’s really hard for them to qualify as a business or something called trader status, which is not even in the code. It’s just made up. It gets audited almost every time, or you just use a corporation and you haven’t managed a partnership that has the brokerage account and it sounds complicated, but what it does is it allows you to write off all your expenses that you otherwise wouldn’t get.

 

So you just get a pencil out and you say, all right, how much are those expenses? In my experience, the average expense of an individual who’s doing any sort of investing is between 20 and $25,000 a year. If I can write that off, I just look at your tax bracket and say, is it worth it? So if it’s somebody who’s in the 12% tax bracket and they don’t really care, I look at it and say, it’s going to put an extra, let’s say $2,500 in your pocket.

 

Is it worth it to do an extra tax return and deal with a little complexity? And their answer may be no for somebody else. They may be looking at it and they go, Whoa. Yeah, that’s going to save me about $10,000 a year. I need that extra money because it takes me from making 7% to making 13% a year. That’s a huge, like they’re in the 20 to 24% tax bracket.

 

Exactly. And they start all of a sudden it starts those deductions start to mean something. I don’t want to ever put my, my wallet in somebody else’s back pocket. So I just do the calculation and say, Here’s what it means to you. Is it worth it? Technically it’s the same bookkeeping, no matter what you do, you’re required to keep books and records.

 

So I always say that’s a misnomer. What it really comes down to is the little complexity of running a court. And yeah, maybe it’s an extra hour or two a year that you have to deal with it. It’s not, you do syndications. It’s not like it’s earth shattering. It’s not like it’s a ton of stuff. You just, you have to keep track of your books no matter what, that’s the hardest part for anything is keeping track of the books.

 

So all you’re doing is you’re still doing the bookkeeping. It’s just, I have one other mouse over here that has its own tax bracket. And I like to feed that mouse because unlike me it doesn’t have to pay tax on some of those things. Yeah. Okay. So yeah, wrapping up here will be any other thoughts and feelings or anything else in that crystal ball you don’t want to predict.

 

Yeah. Relax. I would say go slow. Don’t make wild moves. Don’t freak out. If we can’t do things one way, we’ll find some other way. It’s rare that you have catastrophic tax changes. Usually they give us things. And so even in the biggest tax changes that we’ve had, whether it be the 86, whether it be 2003, a tax cut and jobs act individually at axes, actually we’re not.

 

Business taxes went down no matter what those are, which by the way, one 99, eight is also on the chopping block. The 20% deduction, I would just look at it and say, talk to somebody who actually understands how these things work. What are the silver linings they’re giving us tax laws always have silver linings, and it’s just, let’s go find what they are and see if actually your situation benefit.

 

It’s weird, but like usually with a little bit of complexity, those that are willing to embrace it, do better almost all the time, because it’s not like Biden wants to hammer people. What he wants to do is he wants to hand hammer the people that are just doing thing mindlessly or don’t have advisers. And so he sets up traps and if he it’s like you’re catching, I don’t know.

 

Let’s say they’re putting a bunch of hooks in the water and they’re waiting to see who will come up and bite it. So don’t buy it. Yeah. It’s like the heads I win tails. I win complexity helps because in the complexity you can find a path forward and stop complaining, try and find those ways to get her up off.

 

I just wish that Trump hadn’t used the carryback and hadn’t used the accelerated depreciation and use the costs or the conservation easements. Because they used it. They hit him over the head. When really realistically they should have been saying here’s huge tax incentives that we want everybody to participate in.

 

We’d love to see more development. We’d love to see more conservation instead. They said, Oh, look at him. He’s not paying any taxes. Yeah. Like here’s the guy that. He saved billions of dollars on his taxes because there’s incentives to do X, Y, and Z. And he took advantage of those incentives kind of like shut up.

 

You emphasize it. Just why bring all this attention to this stuff, right? They didn’t do it say, Hey, and you saved tens of thousands of dollars a year running your business as an escort. You never heard him say there was one or two articles where they actually pointed out. Hey, you set up a structure where you’re able to reduce your own age disability and survivor’s benefits and Medicare payments.

 

You save yourself. I think it was like 150,000. It was a pretty large amount and yeah, they didn’t beat him over the head for it. Thank God, because we want these things. There’s incentives to do things the appropriate way. We want people to, we want charitable donations. We want conservations and it’s we want development.

 

We want people to. Want to build more housing cause God knows we’re going to need it. And the poor being left behind everywhere on your Island. I know that there’s people that could really use low income housing. Why are they making it so hard? Give us incentives to do it and we’ll take care of it. I actually think maybe with Biden and everything, maybe my taxes might go up 5% overall, but with all the money that they put into the economy and they spend money, like drunken sailors, especially on the low income housing stuff.

 

I think if you’re like before they would put a bunch of housing in projects, right? Like they, they would densify all the low income stuff. Now the push is to spread it out to more suburban apartments here and there amongst nice houses in these neighborhoods. I see that as opportunity for investors to go like apartments, or I know you guys see that stuff too.

 

It’s huge. It’s huge. I work with the United way Catholic charities and nonprofits that work with terminally ill, autistic adults. There’s no housing for these folks. And like, I don’t want to go down that path right now, but it’s. Serious as a millions of folks are going to be in a really bad situation.

 

There’s almost a million autistic adults that are living with their parents. What happens when the parents pass away, these folks can not live on their own. They’re going to need some sort of assistance. So there’s going to be that the elder population is, but we’re living longer in our older population is growing about 25% faster than every, than any other demographic.

 

We’re going to need to house people, but they’re not going to be able to live on their own where we’re going to just put them in nursing homes. That would be horrible. So we’re going to have living arrangements that work there. And then there’s the last 10 years of all the housing that’s been built about 75% has gone to people making more than $75,000 a year.

 

So you have a section of society, especially the millennials that are being underserved. So, uh, what they ought to do is create incentives for folks like you. Folks like me, who love real estate, like to develop and give incentives to solve that problem. And the accelerated depreciation is one fixing the voucher system right now.

 

Not everybody wants to do HUD housing. But there’s other systems for people, whether it be veterans, whether it be somebody who’s got a short-term need or has a certain type of disease, or again, autistic or whatnot, where there’s groups that, that give incentives to people like you and I to help solve that issue.

 

By giving us tax incentives to do it. And that’s the best thing they could do because the government sucks. That feels strange. It really bad. Anything else going on in Anderson, you want to give a shout out to, you know, what we’ve been going gangbusters. We love working in the tax and asset protection and the estate planning.

 

What I would say if you’ve been part of our infinity group for anybody, we’re going to make that free now. The basic infinity that used to be a hundred dollars a month is going down to free. We lowered it $10 last year. And now down to, to free. If you want people to learn how to invest, I love getting young people into it and they actually learned the principles of money.

 

That’s actually really fun. I’m always doing, am I doing one tomorrow? All day long, but we teach a workshop and then there’s, they can come in and trade in the stock market with, with a fiduciary, like a professional every Wednesday. We just train people on how to be good investors and there’s not a dollar to be had.

 

And if they can just go do it, I spoke to some of your mastermind folks in an infinity group, and it’s kind of cool guys. Like it’s, it’s, I’m not a big fan of the stock market. Sure. But the way they teach it as like more, it’s like cashflow investing, but like investing in dividend type of stocks. So they teach you how to do that.

 

It’s great for like younger guys who. Need to save up some money to go buy a rental property and get started. Or some of you older guys, just looking for that hobby to do it too. It’s casual. We call it being a stock market landlord. Everybody forgot that the stock market used to be a place where you got paid to invest.

 

Then it became, Oh, the is going to go up. No. If I gave lane money and said, Hey, open up a restaurant, I’d expect him to pay me something for it. I wouldn’t wait 10 years and say, Hey, if you ever sell that restaurant, I hope we make some money. That’s stupid. So we cashed, or there’s only about 60 companies that give you good cashflow.

 

And then we show you how to rent the stock. So you could make a good 10, 12% a year, pretty consistently out of the stock market. Just picking those companies and renting them out is a fancy way of saying covered calls. It’s actually fun. And, uh, we do it because if younger people start doing that, they won’t be afraid of it and they won’t get taken advantage of by all these knuckleheads out there in their suits, trying to take your money and put it in an account mutual fund and rip you off.

 

I shouldn’t say rip you off. I always get in trouble. Somebody yells at me for saying that mutual funds have really high fees. ETFs are really cheap. Just take 30% of all your gains, right? 70%, 70% is the average what their fee will end up taking away. 70% of all the growth. You’re a hundred percent at risk.

 

You get less than a third of the benefit. Once people realize that’s how wall street makes its money. If you guys want, because I go to the Anderson advisors.com or Mickey mouse and your lane. Good stuff going over. Toby. Appreciate your time. Hey, it’s always fun. Thanks. Thanks for having me.

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