Garrett Gunderson, Entrepreneur Secrets to Wealth Building – Killing Sacred Cows

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00:00
welcome to funnel hacker radio podcast
00:03
where we go behind the scenes and
00:05
uncover the tactics and strategies top
00:07
entrepreneurs are using to make more
00:09
sales dominate their markets and how you
00:12
can get those same results here is your
00:14
host dave woodward hey everybody welcome
00:18
to funnel hacker radio i’m your host
00:19
dave woodward and today you guys are in
00:21
for a super super special treat today
00:23
you have the opportunity of hearing from
00:25
a dear friend but most importantly a guy
00:28
that a lot of us over here at click
00:30
files look to for advice and suggestions
00:32
I want to introduce real quick my friend
00:35
Garrett Gunderson Garrett welcome Dave
00:38
good to be with you I think it’s
00:39
hilarious that I had your brother at one
00:41
of our workshops recently and I’m
00:44
speaking right the workshops small like
00:47
40 people we like to keep it at about 40
00:50
42 people and he’s just start yelling
00:52
he’s like why don’t you tell me this
00:54
before like correct Mike what do you
00:57
mean he goes dude I didn’t know you did
00:59
all this kind of stuff and so on the
01:00
break he went off on the brake made a
01:01
few phone calls save 1,500 bucks a month
01:04
and I’ve known him for 10 years so you
01:06
know I think it’s I think it’s funny
01:08
sharing some of these things because
01:10
there’s so much that can be improved in
01:12
someone’s financial life but it’s not
01:15
really a conversation I walk up and
01:16
happens with someone one on one that
01:18
could be I would lose friends I think I
01:20
mean they would like the results but no
01:22
one wants you to just walk up and but
01:23
hey Dave let me ask you some questions
01:26
about your finances so this gives us
01:28
kind of a nice angle to go into it yeah
01:30
woody was a what he was pretty stoked
01:31
about the whole thing I am super excited
01:34
well Todd Dickerson one of our founders
01:36
of co-founders of clickfunnels speaks
01:38
very highly of you I’ve had the
01:39
opportunity meeting you many different
01:40
times to genius Network down with to a
01:42
Polish not too long ago and I get a huge
01:46
thank you to you for your the whole
01:48
reason why Robert Kiyosaki is writing
01:51
the foreword for a Russell’s book so
01:52
before we even get started I want to
01:54
make sure everyone understands you are
01:55
the man highly connected guy but most
01:58
importantly it has a ton of knowledge
01:59
that I can’t wait to kind of get into so
02:01
thank you once again here really super
02:03
excited for all that yeah it seemed
02:05
great cause with Todd I’m really it’s
02:07
been a lot of fun working with him
02:08
uh I remember seeing Russell at that
02:11
last genius network event and you know
02:13
he asked if I wanted to wrestle and I
02:15
said no immediately I was smart with
02:18
that sure well let’s just dive right in
02:21
I mean your best-selling author and
02:23
again you’re a guy who’s done funnels
02:26
for years and years and years online and
02:28
offline but I want to spend more time
02:30
right now really kind of diving into the
02:31
financial aspect of a business
02:33
entrepreneur because that’s really who
02:35
you work with and specialized the most
02:37
in it if that’s okay with you yeah you
02:39
know really what we do is the personal
02:41
finance for entrepreneurs because like
02:43
really highly affluent people get great
02:46
advice people worth a hundred million
02:48
dollars or more they get family offices
02:50
that were designed after the Rockefeller
02:52
style family office so they have
02:54
attorneys and accountants and investment
02:56
advisors and cash flow specialists and
02:57
every type of insurance professional all
03:00
at the same table all working to make
03:02
sure that someone gets good advice but
03:04
entrepreneurs as you know we put our
03:06
money back into our business and our net
03:08
worth is a lot of times tied up in that
03:09
business and we’re always looking to
03:10
increase revenues and grow that business
03:12
so I don’t see a lot of entrepreneurs
03:15
that get access to those people until
03:18
they’ve already made it and most of
03:19
people I run with are more in my
03:21
situation where they have good revenues
03:23
they have good profits but not
03:25
necessarily the type of attention
03:26
financially to get them where they want
03:28
to go and most financial advisors
03:30
unfortunately give really bad advice to
03:32
entrepreneurs by having them separate
03:34
themselves for their money put it into
03:36
some retirement plan that’s ill liquid
03:38
high risk a ton of fees and so I have a
03:40
lot of passion for helping these
03:42
entrepreneurs recognize their their
03:44
greatest asset but they shouldn’t go
03:46
speculate with money unless they’re
03:47
speculating inside of their business
03:49
because speculation outside of their
03:50
business is where a lot of losses and
03:52
heartache comes and before people even
03:54
start saving more money and scrimping
03:57
why don’t they instead of budget find
04:00
more money that’s right there for their
04:01
taking because entrepreneurs over pay
04:03
the IRS they overpay on their investment
04:05
fees typically they overpay on their
04:08
insurance costs and they usually over
04:10
pay on their interest rates and
04:11
everything that they’re dealing with
04:12
institutions so I love putting that
04:14
money back in our life letting them
04:15
investor back in their business and then
04:17
finding automated systems to capture
04:20
that wealth along the way just like what
04:22
you guys have
04:22
funnels I want to do that for capturing
04:24
money I love that awesome well how did
04:27
you even get started in all this kind of
04:29
stuff well i started my first business
04:31
when i was 15 years old uh just
04:35
detailing cars I mean I guess I had some
04:38
business before that which was basically
04:41
you know legal extortion which was going
04:43
to my my family’s house is like my
04:46
grandparents and everything and mowing
04:47
their lawn for money but I eventually
04:49
had this kind of legitimate business
04:51
where there was you know a business
04:54
license and I would detail cars and I 15
04:57
thousand dollars being in the young
04:58
entrepreneur of the year when I won that
05:00
money I wanted to take and invest that I
05:02
guess it shows him a bit of a financial
05:04
nerd but you know the more questions I
05:07
asked the more people I talked to the
05:08
more confusing it became and my mom
05:10
being this Italian that you know her
05:13
money management method was coffee cans
05:15
that you put cash in in the cellar she
05:17
wouldn’t even sign off for me to invest
05:18
so when I finally turned 18 my first
05:21
investment was an investment mistake I
05:23
put it into an investment where they
05:24
promised me eighteen percent returns but
05:27
as a nerd I did at Cana metrics course I
05:29
did a thesis on it I figured out that it
05:31
wasn’t going to get eighteen percent as
05:33
a matter of fact the way it was
05:34
structured the fees were gonna eat it to
05:36
death where it had a 98.7 percent chance
05:38
of not having more than what i put in it
05:40
so that led me down a path of asking
05:43
even more questions getting an
05:44
internship in the world of finance which
05:47
sounds cool but it was like bring your
05:48
friends and family so we can peddle
05:50
products to them and thousand when the
05:53
stock market started going down I did
05:55
the opposite of what most financial
05:56
people did I went to my client stole my
05:59
know what I was doing exactly and they
06:00
should move to cash and either give me
06:02
time to figure out something better or
06:04
find a different advisor and on but my
06:06
one all all clients but one stayed with
06:09
me and that’s how I really started to
06:12
figure out a little bit more about the
06:14
world of finance demystify it simplify
06:16
it and then I really focused on people
06:18
cut more from the cloth that I was which
06:20
was the entrepreneurs because you know
06:23
that just was I didn’t want to go work
06:25
with the people worth a billion dollars
06:27
or you know half a billion or 100
06:29
million because we have some of those
06:31
clients they’re the highest maintenance
06:33
hardest to work with and it takes us 10
06:36
times longer to get results because of
06:37
the huge team that we have to
06:39
communicate what I’d rather work with
06:40
someone like you know Todd that’s
06:42
successful doing really well focused in
06:45
on his business and then say hey let us
06:47
help build a financial team to support
06:49
everything that you’re up to I love that
06:51
I think the thing I love the most about
06:54
what you do is you’re so open and honest
06:56
Garrett and it’s such and you’re so
06:58
passionate about the fact that you know
06:59
personal finances is it is it’s totally
07:02
different for entrepreneurs at where
07:04
you’ve had the opportunity of working
07:06
with guys literally who don’t have much
07:08
money to people have a ton of money what
07:10
are some of things that you’ve learned
07:11
and where should our clickfunnels
07:13
followers what should they be doing with
07:15
their money so before you go invest a
07:18
single dollar here’s the I’m going to
07:21
give you a structure to start
07:22
implementing immediately to improve your
07:24
life first off go to wherever you’re
07:27
currently banking and set up a separate
07:28
account I like to call that account your
07:30
wealth capture account and if you follow
07:32
this you’ll never have to budget again
07:34
and yet you’ll end up with more money so
07:36
I think budgeting sucks that’s why one
07:38
of my book titles is called budgeting
07:40
sucks I think it’s all about restriction
07:42
and reduction but the real game of
07:44
wealth is yeah obviously people should
07:47
live within their means but realize
07:48
there’s other ways to live within your
07:49
means other than budgeting you can
07:51
expand your means which is finding ways
07:53
to grow your business grow your revenue
07:56
grow your profitability and your ability
07:58
to know what you do to leverage your
07:59
abilities and then there’s also being
08:01
more efficient with your money which is
08:03
keeping more of every dollar that you
08:04
make and who doesn’t want to keep more
08:06
of every dollar they make if that means
08:07
they don’t have to scrimp or sacrifice
08:09
or save or delay so setting up this
08:11
separate account is a very simplistic
08:13
action that leads to profound results
08:15
because the separate account will
08:17
prevent you from commingling your funds
08:19
and it helps to combat Parkinson’s Law
08:22
Parkinson’s Law if we apply it to
08:24
finance says when your income goes up
08:26
your expenses rise to meet or exceed
08:28
that increase within three to six months
08:31
so if that’s the case and you go make
08:34
more money have you ever met Dave people
08:35
that are making more money now than they
08:37
ever have but there are more financial
08:38
trouble now than they’ve ever been in I
08:40
mean people like that all the time Ryan
08:42
part of it’s a luxury once enjoyed
08:44
becomes a necessity so that’s one piece
08:46
of it
08:47
I love that saying yeah so so what I
08:50
think that if you just set up a separate
08:51
account and then you just go back to
08:53
what George S Class and taught in the
08:55
1920s with this book richest man in
08:57
babylon is you pay yourself first you
09:00
just every time you go to make a payment
09:02
from your business to you personally a
09:04
certain percentage comes off the top and
09:06
goes in your wealth capture account and
09:08
here’s the key you automate your savings
09:11
you don’t automate your investing you
09:14
want to automate savings and be
09:15
deliberately you’re investing I mean
09:17
think about it in marketing if you’re
09:18
putting money into a marketing campaign
09:20
and it’s not working and you haven’t and
09:22
you never split test it you don’t see if
09:25
there’s any conversion on it but you
09:27
just keep adding trafficking to putting
09:29
money into it you’re going to eventually
09:31
go out of business in the same thing
09:33
happens when people automatically invest
09:35
they invest without any notion of is
09:37
this improving my life is this creating
09:39
economic independence is this growing or
09:42
is it simply growing because I’m adding
09:43
money to it what are the fees involved
09:45
in it so if we separate this and start
09:47
automating our savings once there’s
09:49
enough money in that well capture
09:50
account you can deliberately allocate it
09:53
to choose what you want to do so that’s
09:55
the first thing set up well capture
09:56
account but the second thing is you
09:58
figure out the difference between a cash
10:00
flow index and an investment index and
10:02
this is profound because if you want to
10:04
shave off the time it takes to pay off
10:05
loans this will cut it this will cut it
10:08
in two maybe two-thirds you know you cut
10:11
a third off the time you’re getting pay
10:12
it off in two thirds of the time without
10:14
having to add more money it’s just a
10:16
structure so cash flow index is where
10:18
you take every loan that you have you
10:20
take the balance and divide it by its
10:22
minimum monthly payment it’s going to
10:24
spit out a number so loan balance /
10:27
minimum monthly payment credit cards car
10:29
loans business loans you name it
10:32
anything that way you’re just basically
10:35
going to figure out what the number
10:37
spits out and it’s not about the
10:38
interest rate that’ll be taking a
10:40
consideration it’s about efficiency here
10:42
so when a number is less than 50 you
10:45
have a cash hog on your hands a cash hog
10:48
means you have a relatively low amount
10:50
of money that’s been given to you by the
10:51
institution or that you owe them at this
10:53
point with a pretty high payment that is
10:56
an inefficient loan so what you do is
10:59
you pay the minimum to every single loan
11:01
that you
11:01
have and if you are going to pay extra
11:03
you only pay extra to the one with the
11:05
lowest cash flow index the lowest cash
11:08
flow index is bad we’re not playing golf
11:10
here we’re playing basketball you want a
11:12
high score in the hundreds is good less
11:14
than 50 that’s a pretty bad game right
11:16
so the second thing though and this is
11:20
going to help you identify how good of
11:21
an investor you are and more the best
11:23
place to allocate your money is is you
11:25
want to figure out your investment index
11:26
your investment index is you take the
11:28
amount of money you put into an
11:30
investment so what’s that total amount
11:32
you put and then you divide it by the
11:33
minimum or by the cash flow that’s
11:36
coming out monthly so here’s a spoiler
11:38
if you have a retirement climates
11:39
probably zero it’s probably not
11:41
providing any cash flow but maybe you
11:43
put some money down on a piece of real
11:45
estate it’s kicking off some cash flow
11:46
how much did you put down how much cash
11:48
flows coming in and you just take the
11:50
loan balance or the amount you put in
11:52
divide it by the monthly income that’s
11:54
coming in and now you want that number
11:57
to be low because if it’s a low number
11:59
it means you put in a relatively low
12:01
amount of money in relationship to a
12:04
pretty high cash payment just like what
12:06
the bank wants with the cash flow index
12:08
is they want a low number you want a
12:09
high number one near the investor you’re
12:11
like the bait so investment index you
12:13
want a really low number because the
12:15
lower the number it means the more cash
12:16
flow is coming in for you and look I
12:18
guess I got to get a little bit of
12:19
background here Dave I’m in the belief
12:21
that most people can get economically
12:25
independent where they have enough
12:26
recurring revenue that comes in from
12:28
their investment income or even
12:29
entrepreneurial income that doesn’t
12:31
require their daily involvement or
12:33
management to cover their expenses so
12:36
that gives them a level of foundation
12:38
built that economic independence is that
12:40
income coming in to cover the expenses
12:42
whether you show up to work the next day
12:43
or whether you’re managing your
12:45
investments that day it doesn’t mean
12:46
that it’s totally passive you still
12:48
monitor it but when that happens you
12:51
create something that ninety eight
12:52
percent of entrepreneurs don’t have at
12:54
age 65 which is financial and economic
12:56
independence so I believe that you can
12:59
get there between three and seven years
13:00
the first thing is you set up that
13:02
wealth capture account the second thing
13:04
is you figure out your cash flow index
13:05
you stop paying extra debt all the loans
13:07
at once pay the minimum to every loan
13:09
other than one though the one with the
13:11
lowest cash flow index and then you
13:13
translate this over to your investment
13:14
index and if you find
13:15
out that your cash flow indexes are
13:17
really low and your investment index is
13:19
really high then stop putting money in
13:22
those investments that aren’t creating
13:23
cash flow and start paying off the loans
13:26
even quicker to free up cash flow here’s
13:28
the easier way to look at it what if
13:30
you’re getting three percent interest on
13:32
a certificate of deposit you’re paying
13:34
six percent interest on a business loan
13:35
maybe cash out that certificate of
13:38
deposit because it’s a it’s an automatic
13:40
hundred percent return and savings by
13:43
paying off that higher interest rate
13:44
loan most people don’t look at that
13:46
because advisors can’t get paid unless
13:49
you got your money in with them I’m not
13:51
here to make money by selling products
13:53
i’m here to give you the knowledge in
13:55
the insight to improve your cash flow so
13:57
I know I just covered a ton of
13:58
information in a short period of time
13:59
dude I’ve got like pages of notes here
14:02
so I love absolutely love that I mean
14:06
that I think that you know the party
14:08
isle of the most of their gears you know
14:10
people always talk about paying yourself
14:11
first but no one really knows exactly
14:13
how to do it and I think you’re what you
14:15
just went through was fantastic and I
14:17
again Parkinson’s Law I’ve seen that
14:19
happen in so many people’s lives my my
14:21
own included at one time and it is
14:23
there’s nothing worse than then having a
14:26
whole bunch of cash coming in and it all
14:28
goes out fast and it can come in so well
14:30
absolute love we get it as entrepreneurs
14:34
are answered almost everything is I’ll
14:35
make more money Wuerffel cred millwright
14:39
that treadmill is I’m gonna run faster
14:41
but you’re not getting for their head my
14:43
job is to help you plug the leaks in the
14:45
bucket because when you pay yourself
14:47
first the ideal amount to pay yourself
14:49
first on is eighteen percent now that’s
14:51
personal income not business revenue but
14:54
eighteen percent that might put a few
14:56
people in a shock but there’s a reason
14:58
for it three percent just to handle the
15:00
taxes that are probably going up to the
15:01
future three percent because inflation
15:03
exists three percent for something
15:05
called planned obsolescence things break
15:06
down and they have to be replaced I sure
15:09
as hell know that because we’ve got to
15:10
replace our biking dishwasher and washer
15:13
and dryer this year like great and then
15:16
you know you’ve got a in addition to all
15:18
of that you’ve got what i call
15:20
propensity to consume or a luxury once
15:22
enjoyed becomes a necessity right so we
15:25
got inflation taxes planned obsolescence
15:27
propensity to consume and then
15:29
technological change I mean we’re buying
15:31
things now that didn’t even exist 10 20
15:33
years ago who knows what that’s going to
15:35
be like in the future now we’re at
15:36
fifteen percent now the last three
15:38
percent you’re going to like because I
15:40
actually would have you set up one more
15:41
separate account and call it your living
15:43
wealthy account and that means if you’re
15:45
already paying yourself first take one
15:46
sixth of what you’re paying yourself
15:48
first when you hit that eighteen percent
15:49
and spend on whatever you want to spend
15:51
it on the only rule is you just got to
15:53
enjoy it and you could blow it on what
15:55
you want to blow it on you want to fly
15:56
first you know first class lay down
15:58
seats the Europe you want to fly private
15:59
you want to get nice clothes you want to
16:01
be a foodie and go to great restaurants
16:02
you want to buy great wine whatever it
16:04
is for you you just get to spend that on
16:06
what you really enjoy because you should
16:08
be rewarded for paying yourself first
16:09
now what we’re just damn good is we can
16:11
figure out where to find that eighteen
16:14
percent 93% of businesses are overpaying
16:17
on tax by eleven thousand two hundred
16:19
and thirty dollars per half million of
16:21
revenue that’s pretty substantial tons
16:24
of business owners are overpaying on
16:26
their interest if a business is only
16:29
doing between a quarter of a million and
16:30
a half a million bucks the average is
16:33
2400 some dollars per month if the
16:36
business is doing between a half a
16:37
million in a million it’s 4117 dollars
16:40
per month of overpayment on their cash
16:43
flow optimization so that’s over paying
16:45
interest it’s improper loan structure
16:47
it’s the discrepancy was there earning
16:50
versus what they’re paying it’s a whole
16:51
process that we go through so imagine
16:53
eat just taxes and cash flow
16:56
optimization what that means because
16:57
it’s all added to the bottom line that’s
16:59
not revenue where you have to pay
17:01
employees and all that kind of stuff
17:02
this is just bottom line spendable cash
17:05
in your pocket and if you find this
17:07
money like I already give you some of
17:09
the hints with cash flow index versus
17:10
investment index setting up will capture
17:13
account but do you mean even on the tax
17:15
side Dave I mean i know tons of business
17:16
owners that have online businesses and
17:18
they’re not putting their kids up on the
17:20
website and then they can pay their kids
17:22
twenty five hundred dollars a modeling
17:23
fee and that’s completely tax-deductible
17:26
to business but tax free income for the
17:28
kids and if your kids are under 18
17:30
you’re controlling where that money goes
17:31
anyway or I know people that host events
17:34
at their house all the time you know
17:36
whether its employees or customers yet
17:38
they’re not charging their business for
17:39
that access which they could do that 14
17:42
a year write it off but don’t have to
17:44
claim in his personal income I mean I
17:45
can just go all day long on tax credit
17:47
what people do to put less money in the
17:50
government’s pocket and keep it in their
17:52
own I mean just I know you’d ask the
17:54
question but I’ll just give this
17:55
framework you know first of all if you
17:58
want to if you want to know whether
18:00
you’re overpaying tax or not or if
18:01
you’re making tax mistakes because of
18:03
tax traps first off if you’re just
18:05
deferring taxes that isn’t saving taxes
18:08
ask yourself do you think the
18:10
government’s raising or lowering the tax
18:11
bracket and number two do plan on having
18:14
more or less money in the future if you
18:15
plan on having less money in the future
18:17
that’s a pretty dangerous place to be
18:19
just because of inflation and because a
18:21
luxury once enjoyed the necessity like
18:23
we said before the second thing is if
18:25
you’re trying to save tax simply by
18:27
spending money don’t spend money that
18:29
you wouldn’t have otherwise spent just
18:31
in the name of saving tax I know people
18:33
that invest in oil and gas it was a tax
18:35
deduction but they lost their money I
18:37
know people that go buy something
18:38
because it’s December and they’re
18:40
worried about paying tax so they buy a
18:41
car that they weren’t going to buy
18:42
otherwise don’t let the tax tail wag the
18:44
dog it never makes sense to spend a
18:47
dollar to save forty cents you only want
18:50
it you know I’ve bought artwork before
18:52
and donated it for every dollar I spent
18:54
on the artwork it was up in my office in
18:56
my house when I donate it I get it
18:58
donated three years later for full
19:00
appraised value where I got two dollars
19:02
back for every dollar I sped okay there
19:04
are exceptions to these rules but be
19:06
careful those are some of the traps the
19:08
real value for people most business
19:10
owners don’t take enough deductions they
19:12
leave as an expense any time an expense
19:15
in your life can be related to your
19:16
business deducted you know any time you
19:19
can reclassify your income there’s a
19:21
tons of business owners that take salary
19:23
instead of distributions there’s tons of
19:25
business owners that you know own a
19:27
building but they don’t charge
19:28
themselves top rent and they pay
19:29
themself a bigger wage that’s always
19:31
that people are overpaying tax because
19:33
they’re classifying active income that
19:35
could be translated over to more passive
19:38
income and passive income can save you
19:40
up to fifteen point three percent
19:41
because of all the self-employment taxes
19:44
that could be avoided or you know I was
19:46
just on the phone with the client today
19:47
where and this is something that you
19:49
know Russell and I once talked about on
19:51
the phone briefly is we set up an
19:53
insurance company form and when they put
19:55
their money in the
19:56
insurance company its pre-tax if a risk
19:59
happens their business it’s tax free
20:01
when they pay for that but if the risk
20:03
doesn’t happen which happens most the
20:04
time they can pull that money out as a
20:06
capital gain so any time you can take
20:08
ordinary income insurance capital gain
20:10
that’s going to save you tax so I know
20:12
I’m speaking extraordinarily fast but
20:15
you know hopefully you can listen to it
20:16
multiple times or you know we’ll give
20:18
you some cool resources or follow me on
20:20
Forbes I write for them quite a bit
20:22
where I give all these strategies so
20:24
business owners are empowered with them
20:26
Karen I absolutely love every single
20:28
thing you’re saying I don’t even feel
20:29
like I should even be asking a question
20:31
I should just let you talk but again I
20:34
think it’s just amazing as far as the
20:36
whole idea as far as the
20:37
reclassification of expenses is
20:39
something that I’ve been amazed as I
20:42
talked to different business owners and
20:43
things and I’m just an aunt had far as
20:46
how people make the kind of mistakes
20:48
that you’re talking about and I would
20:50
love if you don’t mind just kind of
20:51
continuing on what you were talking
20:53
about stars giving people additional
20:54
ideas I definitely wanna make sure
20:55
obviously I know you’re gonna get some
20:56
resources at the end as well but what
20:59
are some other things I mean you want to
21:00
cross business owners not trapdoors all
21:02
the time what are some other mistakes
21:03
people make and what should I be doing
21:04
differently so ah so do you want me
21:09
first to give maybe a couple more tax
21:11
strategies and then jump into the
21:12
mistakes sure let’s do that well I mean
21:15
just cuz i was thinking that when you’re
21:17
like hey let’s keep going on this so i
21:18
was already starting to think i’ll give
21:20
just a couple in a couple of minutes
21:21
number one if your business and you’re
21:23
not incorporated you’re overpaying tax
21:25
you want to incorporate it helps you
21:28
reclassify your income it also protects
21:30
you from liability and if your
21:31
accountant told you not to incorporate
21:33
accountants shouldn’t be giving you that
21:35
advice that’s an attorney like a tax
21:38
attorney or corporate attorneys job to
21:40
give advice on entities so that’s that’s
21:42
a big piece right there if you’re an LLC
21:44
and you’re single member LLC you’re
21:47
probably over paying tax because LLC’s
21:49
are better taxes partnerships when you
21:51
have at least a one-percent partner in
21:53
that or elected as an S corp which could
21:56
even help out so that’s that’s another
21:57
mistake that could be corrected if
21:59
you’ve overpaid taxes in your
22:01
corporation every every three years get
22:04
a second set of eyes and have another
22:06
account look at your stuff because you
22:07
can go back and amend your
22:08
turns and reclaim cash from the past so
22:12
the IRS would owe you money if you
22:13
missed something rather than you keep
22:14
paying them money we’ve had the biggest
22:16
amount was the guy that got back 457
22:20
thousand the lowest amount was 951 bucks
22:23
now only about half the time can someone
22:26
go back but when you know where they
22:28
actually got that money back it was
22:29
between 951 and 457 thousand just had
22:32
someone that got back two hundred
22:34
thousand by amending the returns simply
22:36
learned about it our workshop did
22:38
exactly said getting a second set of
22:39
eyes not even using our people 200 grand
22:42
back into their life so that was really
22:44
cool you know so amending your returns
22:47
is a big deal if you own a building you
22:50
can learn something called cost
22:51
segregation where this guy Mike that
22:53
when we did it with them it saved him
22:55
eleven thousand dollars a year moving
22:56
forward you know Mike we also got back a
22:59
hundred thousand dollars and amendments
23:01
well I’m thinking about him you know
23:04
this is paying your kids at which I
23:06
mentioned renting out your home to your
23:08
business 14 days or less per year
23:10
there’s another one that I mentioned
23:11
just to review that you know how you pay
23:14
yourself out of the corporation
23:16
absolutely changes how you’re taxed
23:18
overall there’s just so many things but
23:20
if your accountant is telling you
23:21
they’re conservative conservative
23:23
usually means antiquated or missing
23:26
deductions you know I mean I don’t want
23:30
any accountant that’s unethical I mean
23:32
look we’ve been doing this for so long
23:34
and I could think of two instances where
23:37
someone had an audit where there was any
23:40
issue whatsoever one was my stupid
23:42
mistake the day that we didn’t calculate
23:45
something on their state tax so I just
23:47
covered it for another one was someone
23:49
transitioning to work with our team when
23:51
in the middle of when they got audited
23:52
we can tell was that their accountants
23:54
fault our accounts fought twice over you
23:57
know 15 16 years I mean it’s just it’s
24:00
nothing that’s we’re not doing anything
24:01
illegal or unethical it’s all black and
24:03
white strategy but most people aren’t
24:05
proactive and most accountants are so
24:08
reactive or they just get in there ruts
24:10
where they’re not thinking about this or
24:12
they say they’re conservative because
24:13
they know that they haven’t kept up and
24:15
most business owners just bill it’s too
24:16
painful to move or they don’t even know
24:18
what questions to ask so there’s a huge
24:20
opportunity
24:21
everyone since you’re talking about
24:22
mistakes is is to go back a lot of
24:25
entrepreneurs make the mistake of just
24:26
trying to earn more money rather than
24:28
keep more money at the same time where
24:30
they boost only the revenue not thinking
24:31
about how to boost the profit of profits
24:33
where they’re trying to save money and
24:35
they put money into speculative
24:36
investments rather than saving tax which
24:38
is higher guarantee or taking their
24:40
underperforming assets and paying off
24:42
loans so they can improve cash flow
24:44
those are just a few of the mistakes
24:45
we’ve already covered I absolutely love
24:48
that telius as you take a look at as an
24:52
entrepreneur because one of the main
24:53
things a lot of our business owners when
24:54
they first get started is the ID as far
24:56
as they all their money they feel like
24:58
they have to keep for themselves just
25:00
because they don’t know what’s going to
25:01
happen next or they’re out there trying
25:03
to a lot of people get almost
25:05
conservative just as far as feeling like
25:07
I don’t want to not have enough money to
25:09
grow my business how does it how do you
25:11
talk to business owners about the
25:13
ability to expand on things and make
25:14
more money while at the same time being
25:17
smart with the money they currently have
25:18
I think you know we gave a little hint
25:21
with this first thing which is what
25:23
capture account but I do find most
25:26
business owners are too ill liquid so
25:29
before they start funding retirement
25:30
plans we do want to see them have at
25:32
least a little bit of liquidity a little
25:34
bit of money saved up but now what I
25:36
want to have everyone do is examine what
25:38
the financial institutions are doing to
25:39
them people put money in a financial
25:41
institution like a bank and then a bank
25:44
takes and puts a certain percentage of
25:45
that in reserves and over that reserve
25:47
there are certain places where the banks
25:49
are putting their money and they’re
25:50
getting a four and a half percent return
25:51
or five percent return yet they’re
25:53
turning around and giving us at best one
25:55
percent so the more I can teach people
25:58
to cut out the middleman learn how the
26:00
game’s rigged and then start putting it
26:02
in their favor rather than just putting
26:04
in the institution’s favor now you can
26:06
start getting money that’s available
26:07
liquid tax advantage at maybe four and a
26:11
half five percent rather than just
26:12
letting it sit there at one percent now
26:15
when that opportunity comes up in the
26:16
business I have everyone consider having
26:18
what I would call a war chest or
26:20
opportunity fund when you built up
26:22
liquidity now when that opportunity
26:24
comes for expansion for acquisition for
26:27
you know you’re sued because we know
26:29
there’s a success tax out there in the
26:32
world the more successful you become the
26:34
more
26:34
you can potentially be and if you’ve got
26:36
funds available you can handle that
26:39
anyone that gets decimated in business
26:41
is usually because they didn’t have
26:43
enough liquidity when they made a major
26:45
expansion or when they they made a
26:47
mistake or they were redlining a lot of
26:50
businesses red line they’re always
26:51
pushing so hard so fast without taking
26:54
all these other things into
26:55
consideration so we have a structure
26:57
called cash flow banking and you know I
26:59
know we don’t have time to go through
27:00
that whole thing so I’m happy to just
27:03
kind of gift the book that teaches that
27:05
one microcosm of a strategy that the
27:07
Rockefellers have used and that is
27:09
really useful for businesses to build
27:11
liquidity without having to forfeit
27:13
their money till 59 and a half and and
27:15
you know do what i would call premature
27:17
diversification premature
27:19
diversification is when business owners
27:21
haven’t even develop their business
27:22
haven’t even invested in all the people
27:24
that they want to and have the team that
27:25
they want or the right processes or the
27:27
automation and technology like what you
27:29
guys provide and they’re busy shoveling
27:31
it away till 59 and a half well that can
27:34
harm their expansion I want something
27:36
that builds liquidity but they can also
27:38
use for the businesses that opportunity
27:40
fund or war chest when they can’t
27:42
predict everything that’s going to
27:43
happen and so I you know my newest book
27:46
is really written upon that my book
27:49
killing sacred cows is more
27:50
philosophical I drilled down on just one
27:53
strategy but then added a legacy
27:56
component to this other book it’s called
27:57
what would the Rockefellers do and I
27:59
think you know I’m happy to just kind of
28:01
get that people Oh that’d be fantastic
28:03
where do they get it out so uh I know I
28:06
should have a better vanity URL for this
28:08
but uh I I didn’t really think about it
28:10
chelsea’s now it’s it’s well factory com
28:15
ford / Rockefellers plural ford / book
28:19
well factory com4 / Rockefellers forward
28:23
slash book so yeah Rockefellers board /
28:27
book well factory com so just you know I
28:30
feel free to grab it you know you’ll get
28:32
opted in to kind of our our system so
28:35
you can see when we’re doing like our
28:37
webinars on specific topics a lot of our
28:39
webinars are just you know giving
28:41
content and information other webinars
28:43
we’re offering services like you know
28:45
you mentioned Robert Kiyosaki doing
28:47
the forward for Russell’s book we just
28:49
did a webinar with them or then we
28:51
offered a program a video program so I
28:53
mean obviously we’re in wearing business
28:55
to build relationships the best way to
28:57
do that is add value first and if that’s
28:59
valuable then you know hopefully you go
29:01
through our funnel at that point and
29:03
engaged at a higher level I hope
29:05
everyone does again everyone I’m going
29:07
to put that for sure I’ll have that down
29:09
in the show notes so again its wealth
29:10
factory calm ford / Rockefellers ford /
29:14
book and I’ll make sure that’s there
29:16
again I guys you have to understand I
29:18
and I hope just you’d be crazy if you
29:21
listen all the way through this and you
29:22
didn’t understand the expertise that
29:24
Garrett has is just off the charts he
29:27
deals with some of the best people I
29:29
know when it comes to really
29:30
understanding state-of-the-art what it
29:32
takes to build a true business a lot of
29:35
these on it’s so far right across
29:36
entrepreneur’s all the time who are
29:37
working with a CPA or an account who
29:40
doesn’t even deal with small business
29:43
owners they’re primarily a w-2 type of
29:44
account and they think they’re gonna get
29:46
advice that way I’m just I’ve always
29:47
amazed that you’ve the great thing about
29:50
Garrett is this is a guy who has the
29:52
opportunity to see so many different
29:54
avenues of people and businesses and
29:57
what actually it takes to not only grow
29:59
your business but most importantly
30:01
protect your business and have the

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