Andrew Brill uncovers top wealth-building and tax-saving strategies with renowned CPA and lawyer Mark Kohler. As the founder and senior partner at KKOS Lawyers, Mark is dedicated to helping people financially achieve their American dream. Kohler shares his expert strategies on how to build and protect wealth through smart tax and legal planning. Some of the key strategies they discuss include:
- How to utilize Roth IRAs from an early age
- The benefits of side hustles and rental properties
- Advanced tax strategies to minimize liabilities
00:00:00:00 - 00:00:03:09 Unknown I just funded my retirement tax free ATM for life. 00:00:03:11 - 00:00:23:07 Unknown So let's pay that tax now. Go self-directed, get a 1015, 20% return numbers off the chart. So I want a chunk at it. And maybe over three, 5 or 6 years I've now converted everything to Roth, but I don't have to take a blood bath in one year and jump into a tax bracket. That doesn't make sense. That's called chunking. 00:00:23:07 - 00:00:24:02 Unknown Roth chunking. 00:00:27:01 - 00:00:37:23 Unknown Welcome to wealthy Anna. I'm your host, Andrew Brill. Setting yourself up on the right path to life financially can be tricky, but we'll explore that path and how to get there right now. 00:00:42:20 - 00:00:55:03 00:00:55:03 - 00:00:55:04 00:00:57:13 - 00:01:12:22 Unknown thanks for having me. It's an honor. Truly. 00:01:13:02 - 00:01:39:19 Unknown it absolutely exists. But let's keep in mind it's a subjective term. What may be one person's American dream could be someone else's. could be far from someone else's American dream. And so I'd like to have a very liberal definition of that in the sense that it could it could be someone just simply owning their own home, being out of debt, having a great job, and and living with freedom. 00:01:40:01 - 00:01:56:09 Unknown You know, just that that alone could be it. Just think about that, how incredible that is in the world to maybe, even comprehend. And then to someone else, it could be like, man, I got an idea. I'm going to build it and grow it and blow it up and go to the next level and do all that, which could be a nightmare for. 00:01:56:11 - 00:02:09:05 Unknown So I don't see it out. But the beauty is we can all choose how we want to live in this incredible country and the tax and legal strategies and structure for America gives you that that latitude and opportunity. 00:02:24:20 - 00:02:32:19 Unknown Well. 00:02:47:12 - 00:03:09:13 Unknown Well, okay. You know, and again, I love this because if I was sitting with your sons, I go, what kind of home are you defining? I'm not talking about a 2.5. You know, coastal, Miami Beach, you know, whatever. here's an example. My son, I've got a son and a daughter who who are already homeowners by age 25. 00:03:09:15 - 00:03:28:22 Unknown And now my son. This now, because it depends on where you're trying to buy and what you're trying to buy. Come on. You know, kids, because here's the example. My son is a wonderful example. He's in college paying rent like 800 bucks a month for a little dorm room, blah, blah, blah. And I was going to buy a rental property for him to manage and do his thing. 00:03:29:04 - 00:03:45:06 Unknown And I was like, hold it, what am I doing, son? You've been helping me with rentals his whole life. He's 23. At this point, I'm like, let's buy you, you're a rental. Let's buy this by your own place and and do a b r r. Let's just, you know, rehab it and and let you live in it while you're in college. 00:03:45:06 - 00:04:04:03 Unknown He's like, all right. So in the state of Idaho, where he was going to school, there was a rule development loan that if your income was low enough, there was a no money down loan and he only had to pay for the appraisal. So he bought an $80,000 single family home in this little town. That was a 20 minute commute to the college. 00:04:04:03 - 00:04:31:20 Unknown Fine. He hated that commute. But for a $500 appraisal fee, he closed on this thing and his mortgage payment with mortgage insurance a whole nine yards was the same, around $800 that he was paying in rent. Two years later, after graduating from college, he sold it for 130 grand tax free. He lived in it the requisite two year, two out of five year of the home, owner's personal residence exemption. 00:04:31:22 - 00:04:37:06 Unknown And he took that and rolled it into a house in Phoenix that cost three times as much. I get it, 00:04:37:07 - 00:04:45:04 Unknown but it's like kids, you don't need to live in a home like your mom and dad live. Wait till you're 50 years old, then you can do that. You can live in a frickin townhome, for crying out loud. 00:04:45:10 - 00:04:54:07 Unknown Anyway. 00:04:54:09 - 00:05:04:17 Unknown Yes. 00:05:04:19 - 00:05:14:11 Unknown Oh! 00:05:14:13 - 00:05:18:17 Unknown Oh, I love it. 00:05:18:19 - 00:05:25:13 Unknown Okay. 00:05:25:15 - 00:05:37:05 Unknown Yes. 00:05:37:06 - 00:05:54:04 Unknown No they don't. And for those that are listening, you, I'm going to correct you just from what you said, 512 a year, 512 a year, everybody. What Andrew meant of course, was 512 a month, which adds up to approximately the annual, contribution of the six grand back in that time. Thanks. I want to make sure, because someone was freaking out. 00:05:54:04 - 00:06:13:15 Unknown What do you mean? 500 bucks a year? But no, I love that Andrew and everybody listening. This is how simple it can be. And I'm thank you for saying I'm an expert. Hey, us parents, we're just trying to not screw up our kids most days, right? So do not I know myself out as a parental expert? L know, but here's the thing. 00:06:13:21 - 00:06:35:08 Unknown Kids can have a brothy array as early as one year old. They just have to have earned income. No, I don't have a Gerber baby that was getting a 1099, you know, for modeling. They were sitting in a michelin tire or whatever. But but kids by age 5 or 6 were helping out in the family business. Empty and trash cleaning the office, shredding paper, blah, blah, blah. 00:06:35:13 - 00:06:51:06 Unknown So the point is, once your kids have earned income, they can start contributing to a Roth IRA. That's point number one. Number two, when you pay them out of your business when they're under age 18, you get a tax deduction and they don't even have to pay federal tax up to their standard deduction. You don't have to withhold it. 00:06:51:06 - 00:07:12:16 Unknown You don't have to issue a W-2. There's no workers comp. You can slave labor. Your own kids love it. It's awesome. Okay. So so we're talking this year. That's almost 14 grand. Now. You're not going to pay a four year old 14 grand. But we might pay a teenager that. Who knows. So that's point number two. You're getting a write off to pay your kids so they can pay for their own school lunch or school clothes, or soccer or baseball or whatever. 00:07:12:19 - 00:07:39:09 Unknown So you're getting a write off and not paying taxes at your bracket. You're shifted into your kid's bracket. Number three, now that they have the earned income, just I love what you said. 500 bucks a frickin month. That's six grand a year. You put that in a Roth IRA. Even on a crappy 8% return. We're talking millions us, 20, 30 years from now, and we're teaching fiscal responsibility, and we're talking about around the dinner table. 00:07:39:14 - 00:07:55:09 Unknown Parents are afraid to talk about money because they don't feel like they have the skill set either to talk about it. But the Roth IRA is a fun conversation. And I'll just say, number four, we have contests around the family. I've done it before. I'll say, okay, whoever puts the most in their Roth IRA this year, I'll match it. 00:07:55:09 - 00:08:05:02 Unknown The first year I did it, I had one kid pay attention at Christmas. I said, all right, show me your acorns account. Who's got the Roth IRA and all the three other kids? Right. You were serious about that. 00:08:05:03 - 00:08:16:17 Unknown And so I was like the little employer doing a match, and, but it's it's been fun. It can be fun. 00:08:26:03 - 00:08:27:08 Unknown Oh, 00:08:27:09 - 00:08:49:20 Unknown yeah. Well, after Covid or during Covid, we had the big formation, the great formation. It was called. We now have over 40 million side hustles in America. 40 million because people are are struggling out there. They got to make ends meet. They're picking up a second job. They're driving a little Uber, doing a little bit on Upwork or thumbtack or StubHub. 00:08:49:21 - 00:09:10:20 Unknown I mean, they're just like selling whatever they can to make a few extra bucks. Can we change our mindset a little and say, all right, I'm going to get out of some debt. I'm going to pick up the side hustle, but maybe I could then turn that side hustle into a wealth building machine where I can just put away an extra 5 or 10 grand a year, 15 grand a year, and I can do it tax free. 00:09:10:21 - 00:09:31:04 Unknown Most side hustles. You're not paying tax on that first 15 K I got plenty of write offs. We can chew that up. So now you're building more wealth tax free putting it away and a side hustle. It's a gateway drug people that that is a small business. If you're driving Uber that's a small business. Get over it. It's a schedule C, it's a frickin awesome little ride off. 00:09:31:06 - 00:09:49:07 Unknown And that's that again, opens the door. And people, if they just realize they're sitting on a goldmine, they see their side hustle as a burden, as a as a problem, as an inferior inferiority complex. Sorry, that's a tongue twister. But it's really an opportunity. 00:10:06:09 - 00:10:23:07 Unknown Yeah, well, a rental property is a side hustle. Where are we buying rentals? I want clients, I put it in my books. Look at buying one rental year or part thereof. You might call me up and you go, hey, where's your kid going to college this year? Hey, my kids go in there too. Let's buy a rental in that town and split it in our LLC. 00:10:23:09 - 00:10:45:00 Unknown Okay? And so you can partner with others, buy rentals where you travel by a rental by grandma. I owned a rental property for ten years next to my mother in law. And so I was I didn't go for Thanksgiving. I went to check on my rental. Thanksgiving was a write off every year, and so we got to think bigger rental properties and also online businesses. 00:10:45:04 - 00:10:56:05 Unknown Ooh. Now if we can start building some sort of online presence and making money while we sleep chatting, that's as sweet as side hustle. 00:11:17:08 - 00:11:31:11 Unknown Yeah, yeah. Oh, this is fun. Where's your son going? To medical school. Can I ask, do you know yet? 00:11:31:13 - 00:11:40:01 Unknown okay. I'm kind of. Okay. And. All right. Is that in Lansing, am I right? No. Ann Arbor. Okay, 00:11:40:02 - 00:11:53:06 Unknown so let's just think about that, okay? Now, does a kid need to live down the street so they can ride their scooter or bike to the university? Maybe they could live in a small town 30 minutes away. And so we start to look at perimeter. 00:11:53:06 - 00:12:07:06 Unknown That's the first thing we got to choose our location. Where do we want to buy a rental? Where do I go? Where it makes sense for me. My son's going to medical school. I know he's going to increase his student debt, or they're going to work their butts off, or I'm going to have to help him. It's one of the three. 00:12:07:11 - 00:12:30:08 Unknown Or why don't we create some cash flow or even break even cash flow by buying a little place 30 minutes away of smaller town? Could be a duplex, could be a townhome, could be a condo. And we start looking for off market deals, call a realtor, start shopping, and all of a sudden you could be looking at a property that could break even cash flow. 00:12:30:08 - 00:12:47:22 Unknown Or instead of paying rent, it's paying down a mortgage. Three years later, I'm ready to head off to residency. I might sell it for a profit, probably, or at least cash in on my equity because I was paying rent to myself and or I might keep it as a rental, I love that, so we kind of choose an area that makes sense. 00:12:48:04 - 00:13:07:00 Unknown Then we choose that that type of real estate. For some people out there though, like, I don't, I'm a kid, a college, maybe it's storage units, maybe it's low income housing. It could be commercial strip malls, triple net leases. Some people. I don't want to plunge toilets. Great. Let's look at something that's, you know, totally commercial. So you. 00:13:07:02 - 00:13:20:22 Unknown It's a scary thought. And I want to connect with any of you listening, like. Yeah. Mark, you make it sound easier said than done. No, it's not easy. It's not a get rich quick scheme. It's a get rich, slow scheme. And it works. 00:13:37:11 - 00:13:55:00 Unknown Yeah, yeah. 00:13:55:08 - 00:14:27:15 Unknown Well, I think there's that. That's a great question. And let's look at it in two different ways. One is starting a business or buying real estate because you said mortgage in there as well. So let's stay with real estate for just a moment. Do we have to go out and get a loan a maybe we again partner we call it mom brother, sister and we say, hey, when you got sitting in that crappy IRA over there that you don't know what its rate of return is, or this old 401 K that's languishing on a statement you get every month and throw in the garbage. 00:14:27:21 - 00:14:49:11 Unknown Let's grab that retirement account and self-directed so we can take our retirement accounts, pool them in an LLC, and buy real estate. We could partner with others that have great credit, but no cash, and then we might have great credit and no cash. And we go out and find, you know, it's your it's easier to find money and it's Andrew, this is the crazy part. 00:14:49:13 - 00:15:09:12 Unknown It's easier to find money than deals. I know that sounds weird, but once you figure out your niche and you're like, I can find deals, money comes because there's wealthy people that have no time that want to invest their damn money. And if you can partner with them and be careful and do it right legally, it's a huge win win. 00:15:09:12 - 00:15:14:11 Unknown You don't. I'd rather have 20% of a deal where I didn't put money in the no deal at all. 00:15:41:07 - 00:15:47:17 Unknown Yeah. 00:15:47:17 - 00:16:16:15 Unknown You bet. And. And I love that you posed the question at the very end. Because we want to. I want to make sure everybody knows you are not taking money out of your. For when k you're reading, playing it, investing in something, you know. Now, this is the secret Wall Street does not want you to know. Whenever you hear about Peter Thiel having a $6 billion Roth or Mitt Romney having a $200 million Roth, it's because they took their retirement accounts and invested in syndications and startups that they were working on. 00:16:16:17 - 00:16:40:11 Unknown People. I've got real estate developed developers with $50 million Roth IRAs that started with ten grand ten years ago. You can take your Roth IRA and make it a part of many, many different types of projects. Real estate is what we're talking about. Syndications, oil and gas, promissory notes, lending, small business. And so it's called Self-directed buy podcast. 00:16:40:12 - 00:17:02:08 Unknown The directed IRA podcast. I know that you put some of this down in your show notes, directed IRA podcast. We've been doing it for four years now, and there's billions of dollars in self-directed accounts where you get to invest in what you drive the car. That's the best analogy for when K is simply a car. You just happen to have a stockbroker or a job that says you're in the back seat. 00:17:02:09 - 00:17:11:01 Unknown Your money is in the trunk. Well, when you're self-directed, you're like, get out of the front seat. I'm going to drive this car. It's still A41K. You just get to choose what's in the trunk. 00:17:11:01 - 00:17:33:01 Unknown And I don't want junk in your trunk. Let's go, let's go invest in what you know. 00:17:33:03 - 00:17:38:03 Unknown Yes. 00:17:38:07 - 00:17:57:04 Unknown You bet. The goal here is no tax consequences at all. There's no penalties. You're not pulling money out of retirement accounts. Again, I'll say this on our podcast. We go through the first 20 episodes that we recorded. Oh my gosh, 2 or 3 years ago, walking through step by step all the basics. So I'd recommend anyone just go listen to those first ten episodes to 20 episodes and you'll freaking love it. 00:17:57:09 - 00:18:18:01 Unknown Well, so I have my partner has the bestselling book on this, The Directed IRA Handbook, now in its second edition Directed IRA Handbook. Matt Sorensen now. Yeah. He didn't give me any money to plug that. I'm just want to help your listeners here. So let's go through I'll go through it very simply and briefly here. Let's say you have an old 401 K from a prior job. 00:18:18:03 - 00:18:38:03 Unknown You're not working there anymore. If you're currently employed with A41K, you got to leave it in that plan that the HR department set up for you because you're currently employed, but its estimates are around 70% of Americans have an old 41K from a prior job, anywhere ranging from 5000 to $100,000. Just sitting there and they don't know what the hell it's in. 00:18:38:05 - 00:19:00:07 Unknown And sometimes it's just languishing back at the old employer. So the step one is to take that for A1K and roll it to an IRA. So we want to roll it to a self-directed IRA at our trust company directed ira.com. You roll the money, there's no penalty, there's no tax. You just moved it from essentially Merrill Lynch to Fidelity. 00:19:00:07 - 00:19:24:04 Unknown You moved it from fidelity to directed IRA. On day three we call you up or email and go, what do you want invested in? So you got this IRA, and you, you we have the stock platform, but if you have a stock platform, just go over to fidelity. But if you're like, no, I want to loan it to my sister's small business, or I want to do a promissory note on a first trust deed to a contractor down the street, or I want to buy a rental property. 00:19:24:06 - 00:19:51:06 Unknown Then you fill out a buy direction letter and you would tell us, I created this new LLC. I want you to put that money in. Is the 100% owner of the LLC. You're a 20% owner. And by the way, my kids are Roth IRAs coming in. whatever. My mom's my blah, blah, blah. So you set up this LLC or law firm's been doing this for 20 years, and the LLC has created your IRA funds, the LLC in exchange for a membership certificate. 00:19:51:08 - 00:20:08:08 Unknown This is like on day 4 or 5. Most of these, we turn around in ten days, and then the LLC has its bank account. With your IRA now funded in there, and what other pool of partners you bring together. And you're the manager of that LLC. No one else. That's not prohibited. Now, you can't give yourself a paycheck. 00:20:08:08 - 00:20:29:14 Unknown You can't buy yourself a new cell phone or go to Hawaii and look for rentals. But you're going to manage that LLC and you can start directing it self, directing it into what you know best. We take no fee. That's your money. And so you get to Self-directed in that LLC and build it up. Peter Thiel started In truth in 1999 with 6 or $5000 in a Roth IRA. 00:20:29:15 - 00:20:52:11 Unknown I think it's now worth 6 billion. And every time you pass, go every year he put five grand in six grand in whatever, whatever the annual contribution was. But the rate but your return is unlimited. And so that's how you self direct. Is that easy? I have a health savings account with an LLC, and I own this cute little low income housing. 00:20:52:13 - 00:21:12:14 Unknown deal in South Chicago. It's the cutest little meth lab and, my health savings account on that. So I've got rent from a rental property going tax free into a health savings account that paid for my daughter's braces. Tax free. You can you can direct your HSA, your kid's college savings account, the ESR, Roths for one case. 00:21:12:14 - 00:21:14:06 Unknown As simple as that. A lot of that. 00:21:14:06 - 00:21:28:23 Unknown So fun. Yep. 00:21:41:12 - 00:22:04:01 Unknown It is. And there's so much misinformation out there in the industry on this. There's a lot of wolves in sheep's clothing that are overselling elaborate trusts, irrevocable trust that are completely unnecessary. So let me say this to everybody listening. And if I say something here that conflicts with the advice you've received, anyone listening, please get a second opinion. 00:22:04:03 - 00:22:28:20 Unknown Because I stand behind this 25 years as a lawyer helping small business owners all over America. I've done my 10,000 consults. I've got five books out there. I write for entrepreneur, I've got the credentials for this people. I am standing behind us. 99% of Americans. All they need is a revocable living trust. It's a trust that you control during your lifetime, with or without your spouse, single, married, whatever. 00:22:28:22 - 00:22:48:06 Unknown No kids, kids, young or old in that trust becomes the owner of all of your assets your home, your two homes, your LLCs, your S Corp beneficiary retirement accounts. That trust can be modified at any time. It can have all sorts of rules. My kids get a third when they turn 25, a third when they turn 30, a third when they're 35. 00:22:48:11 - 00:23:09:20 Unknown Money to start a business, money to buy their first home. And if I'm still alive, I'm in control. It's a revocable living trust. 50% of Americans don't even have a will. Why should we have a whole billion dollar industry called probate court and probate lawyers, probate judges? Because people don't plan, they think they're going to live forever. If everybody had a willing to trust, there'd be no probate, they said. 00:23:09:22 - 00:23:38:14 Unknown And so the revocable living trust is a wonderful trust to stay organized, create some privacy. I love privacy and there's no asset protection with it. It's about a legacy. It's about privacy, and it's about being organized. Now, that other 1% sure we might do a domestic asset protection trust or an irrevocable, a charitable remainder trust, a life insurance trust islet in unique, very unique situations. 00:23:38:14 - 00:23:56:05 Unknown So if anybody listening is getting pitched a five, ten, $20,000 stupid asset protection trust structure two LLC in Wyoming and one in Nevada and one in people, I have never, ever, ever done that in my practice. And it's it's it's a waste of time. 00:24:17:21 - 00:24:41:16 Unknown Yes. Now we're making a big assumption. states across the country are continuing to crack down on this because state unemployment, federal unemployment, workers comp FICA. The government, federal and states do not like it when we try to convert an employee to a sub, unless they really are a sub. So we want to make sure and the risk is on the pay or not the recipient. 00:24:41:18 - 00:25:00:21 Unknown If your employer shows up and says, hey, I'm going to give you a 1099 and not a W-2, say, okay, take it and run if anybody gets in trouble as them. So but so employers have to be very, very careful if it looks like a duck, quack like a duck walks like a duck, it's a freaking duck. And that's the same way it is with employees now. 00:25:00:21 - 00:25:25:00 Unknown So let's assume you can qualify as a subcontractor. And an employer's previous employer can now treat you like a subcontractor, and you have a client. So we're not going to say paycheck or employer ever again. You have a client that's going to pay you as a subcontractor. If you're making more than 50 grand a year, you absolutely have to be an S corporation. 00:25:25:02 - 00:25:44:06 Unknown Now, you may take an LLC and convert it to an S, you may just come right out of the gate as a PC or an Inc I, but an LLC does not say taxes LLC. You do not save taxes. There's for protection, for structure, for organization, for branding S corporations, S's and small. 00:25:44:06 - 00:25:46:22 Unknown That's not escorts for those that are going to Vegas this weekend. 00:25:46:22 - 00:26:12:16 Unknown There's Corp's S Corp's save taxes. And you just take an LLC and make an S election. It's super expensive. We charge 200 bucks. So you make that selection and you're off to the races. So yes, if you can get that, relationship set up, hell yeah. All day long. 00:26:48:17 - 00:26:58:21 Unknown Yeah. Yeah. 00:26:58:23 - 00:27:17:11 Unknown Oh, absolutely. And let's even back up here further. I know there's listeners out there that have already checked out on this topic. They're saying, my accountant said I make too much money. I can't have a Roth. Okay, let me repeat that. There are people listening right now that have been told by a dumb ass that, excuse my French. 00:27:17:11 - 00:27:35:01 Unknown people out there have told you you can't have a Roth or contribute to a Roth because you make too much money. It is out, right? Misinformation, wrong ly stupidity. You can fund a Roth at any age with earned income at any income level. 00:27:35:03 - 00:27:52:11 Unknown You use the back door. Now, if you want to go to the Roth party and walk in the front door, your income can't exceed 200 grand ish, single or married. There's all the levels. I could read them off here, but you can go to the back door. What you do is set up a nondeductible traditional IRA. Make your contribution. 00:27:52:12 - 00:28:17:15 Unknown Convert to Roth on the next day tax free. It's called a Roth conversion. Backdoor Roth. Google it people. I've got articles out for you on this. So that backdoor Roth non income limit procedure is what allows anybody to convert a traditional old for A1K or traditional IRA to Roth as well. I could convert $1 million tomorrow to Roth any income level. 00:28:17:17 - 00:28:37:14 Unknown Now I got to be ready to pay the tax on it. So what we teach is Roth chunking. I want to if you came to me and said, hey, Mark, I've got a $500,000 traditional, I want it to be a Roth. You will always win in the long run. Being a Roth, especially, the higher your rate of return, especially if you're self-directed, the higher your rate of return, the more the Roth wins. 00:28:37:16 - 00:28:56:12 Unknown Because even with the naysayers are saying as well, you get a tax deduction now and then when you know, when you pull the money out, yeah, you're going to be taxed, but you're going to be in a lower, lower bracket. Oh really? You've got a crystal ball. And you do you know what. My rate of return is going to be two because I'm going to have so much more money in this self-directed that when I pay tax on it, it's going to hurt. 00:28:56:16 - 00:29:16:11 Unknown No deduction up front is going to pay for that crap. And so oh yeah, well if you change that well yes. Because I'm not in Wall Street I control my own damn money. So I'm going to and I hey, I've got money in Wall Street too. But I also self-directed and I have real estate. We want to be diversified and that doesn't mean multiple types of stock. 00:29:16:13 - 00:29:37:14 Unknown Okay. So anyway, converting to Roth wins every time. And I look at a client's tax bracket. So Andrew you say I want to go Roth okay. What bracket are you in right now. Oh in those seven brackets right now there's two break points where it's an 8%. jump on to the next bracket. We never want to convert too much Roth. 00:29:37:18 - 00:29:53:11 Unknown That pushes us over one of those two break points. So if I'm going to only go up a 2% bracket or a 3% bracket, I'll say I'll convert 100 K this year, 150 K. Hell, I'll even take out a mortgage on my house to pay the tax on that because I'll never pay tax again. Done. 00:29:53:11 - 00:29:56:20 Unknown I just funded my retirement tax free ATM for life. 00:29:56:22 - 00:30:16:18 Unknown So let's pay that tax now. Go self-directed, get a 1015, 20% return numbers off the chart. So I want a chunk at it. And maybe over three, 5 or 6 years I've now converted everything to Roth, but I don't have to take a blood bath in one year and jump into a tax bracket. That doesn't make sense. That's called chunking. 00:30:16:18 - 00:30:18:03 Unknown Roth chunking. 00:30:18:03 - 00:30:44:18 Unknown I got it from chunk in the, movie Goonies. 1984 Steven Spielberg. Thank you. Okay. 00:30:44:18 - 00:31:03:09 Unknown okay. Well, first of all, I can put the money in my Roth and buy real estate. Now and grow it. Flip properties, buy rentals, whatever the hell. Double my money, triple my money. Do developments, commercial developments, whatever. Inside my Roth right now. I'm not pulling it out. I'm not paying penalty. I'm not paying tax. I'm building it tax free. 00:31:03:13 - 00:31:27:08 Unknown Then when I've had the Roth at least five years or 59.5, whichever is longer. So if I start at age 50, getting this going by age 59.5, whatever's in that Roth, I can walk to the ATM and take it out tax free anytime I want. There's no RMDs, there's no penalty, there's no tax. And I love Dave Ramsey celebrates debt free day. 00:31:27:10 - 00:31:48:05 Unknown You know, when people finally pay off all their debt, they like this video and ride debt free day. We celebrate 59.5 over here because clients are now tax free, because we've been building a Roth. We want to build that Roth. So at 59.5, I could go grab money any time I want and I can keep investing. I can keep putting more money in it. 00:31:48:07 - 00:31:49:11 Unknown Boom, boom, boom. 00:31:57:15 - 00:32:07:01 Unknown That's right. Yeah. 00:32:07:04 - 00:32:30:16 Unknown Yeah. Well, maybe what your Roth IRA really own. Let's go back to our example. If I'm going to go do this, does my Roth IRA really go on title? The LLC does see remember, we're going to create an LLC owned by multiple Roth's. My wife's Roth, my kids Roth. I love kid Rock, by the way. And so we're going to set up any of these Roth IRAs form an LLC. 00:32:30:20 - 00:32:50:18 Unknown And the LLC is the owner. The LLC is on title, the LLC has the nonrecourse mortgage. You can borrow money, go borrow. If there's banks that loan to erase. They have entire departments to do this. Wall Street doesn't tell you this. And so I can go buy real estate inside my Roth IRA, LLC. The rent checks go to the LLC. 00:32:50:18 - 00:32:58:09 Unknown The LLC pays the property taxes. The HOA Dada dada. And when I'm ready, I sell the property tax free. 00:33:17:20 - 00:33:38:22 Unknown Oh, well, I think that's a wonderful concern because you're already over the threshold when you ask that question. If someone you know were to ask that they're already over the threshold, that they're looking for something. See, they've already made the mindset, okay, I can't do single family home rentals. I don't want to plunge toilets. It's too much for me. 00:33:38:22 - 00:34:08:11 Unknown It's too much headache. But what they're really saying is, what are what other options do I have? And there are people that let's just get started there. There's entire industries of just carrying paper. So many people that are hard money lenders. I've got a hard money lending deal going right now, 12% per annum interest, two points. I'm making 14% on this money, 12% per annum, two points. 00:34:08:13 - 00:34:26:02 Unknown And there's hard money lenders. They can't turn their money fast enough. They're turning at twice a year, making 16% on their money because they're averaging 12% every month. They're making 1% on their money. And then every time they deploy the loan, they get one. When they pay off the loan, they get a second point and then they redeploy. 00:34:26:03 - 00:34:50:02 Unknown In the same year, there's another one, there's another. So if I can turn that loan twice in one year, I'm making 16%. I'm not collecting rent, I'm not plunging a toilet. I'm just a hard money lender. And you find contractors and fix and flippers and, and real estate investors that use hard money and you're doing your due diligence and you understand first trust deeds and, all the goes into that. 00:34:50:04 - 00:35:11:21 Unknown We've got clients with ten, $20 million Roth IRAs, and they've done it all through lending. They don't even want to own rentals. Now, you could talk oil and gas. I've got clients doing oil and gas all day long. Syndications. smart. private equity. This is what private equity is. I'm going to use that money and go invest in some dream thing, you know, whatever. 00:35:11:21 - 00:35:21:19 Unknown And so it's just we've got to get off the Wall Street wagon with a little bit of our money and just invest in what we know. 00:35:21:19 - 00:35:31:02 Unknown That's the trick. 00:35:31:04 - 00:35:36:10 Unknown Oh my gosh. 00:35:36:13 - 00:35:59:11 Unknown Well darn it, I am almost embarrassed that I didn't bring that up. I right here on my phone I'm going to just pull up my app. I have my Roth IRA completely deployed into, cryptocurrency right here. And I can look at my rate of return, on my, 2 or 3 tokens I'm in right now, or coins. 00:35:59:11 - 00:36:24:01 Unknown And I've got some Bitcoin, I've got some Solana and Brethren chew up time here, but it directed IRA, you can have a crypto Roth. You can have a 401 K Roth AGI and you can have I'm going to repeat that a 401 K Roth crypto account with an app on your phone. You're now trading your Roth 401 K in crypto daily whatever you want to do. 00:36:24:03 - 00:36:49:01 Unknown so we worked with our company, partnered with Gemini years ago, one of the most reputable trading platforms out there for crypto. And your IRA can be trading crypto in two days. And so I love it. I think crypto is, cryptocurrency and everything metaverse and NFTs, it every day there's more and more progress in this area of our lives. 00:36:49:01 - 00:37:11:17 Unknown And it's not going away. I think it's a that's me. Everybody. You find your own risk tolerance for whatever you want to invest in. But we've got, thousands of clients with, crypto. I have a crypto mine in my Roth IRA, so I own seven cards on a CPU. It's an an LLC with my five kids. 00:37:11:19 - 00:37:32:18 Unknown One's married, so it's four kids, one of them in married when we formed this LLC. So there's six partners in this LLC. And we bought into a CPU and were crypto mining. We went into the project for ten grand. I just pulled a thousand from everybody's Roth IRA, maybe 1500 bucks, went out, bought our CPU, our graphics cards were crypto mining with nice hash. 00:37:32:18 - 00:37:53:19 Unknown Anyway, nice hash happ. And so every four hours my Roth IRA makes money. I'm getting paid in bitcoin to mine Solana right here. I can watch right here on my nice hash app. And so at our crypto tax summit conference here in a couple months I will be showing a diagram of how you crypto mine inside your Roth IRA. 00:37:53:21 - 00:37:55:05 Unknown Anybody can do it. 00:37:55:16 - 00:37:59:19 Unknown It's crazy. 00:37:59:21 - 00:38:10:01 Unknown Yes. 00:38:10:03 - 00:38:31:05 Unknown You bet. It's so it's, in Anaheim, California, just around the corner from Disneyland. Make it 3 or 4 day trip out of it. It's going to be two days in Anaheim at the Sheraton. And it's the crypto tax summit, where for two days for crypto investors, tax professionals, legal advisors, financial advisors. We're going to answer any question you have via tax. 00:38:31:06 - 00:38:52:06 Unknown Like how is my trading taxed? How is mining taxed? How is staking tax? How is DeFi taxed? What about NFTs, utility NFTs, collectible NFTs, digital assets, the metaverse. How is that all taxed? It's the number one question on the 1040 right now. People, if you haven't noticed it, open up your 1040 tax returns the last three years, started three years ago. 00:38:52:08 - 00:39:15:15 Unknown It's your name, your social, your status as you're filing the first question under penalty of perjury. Did you buy, sell trade on any sort of cryptocurrency this year? They changed the verbiage just a tad to make sure they grab everybody, yes or no. People are afraid to say, well, and over 50% of Americans now own some form of cryptocurrency, so they've got to hit. 00:39:15:15 - 00:39:38:03 Unknown Yes. What does that mean? Am I going to see a schedule D? How am I going to see a schedule. See what are you doing with your crypto? Have you reported it? Have you downloaded your transactions off the, blockchain? Oh well, Mark, I'm not taxed till I turn it to dollars. Oh. Think twice. You trade that Bitcoin for Solana taxed. 00:39:38:05 - 00:39:53:15 Unknown Well, I didn't touch it. Taxed. So you got to know that you know and don't hate the player. Just hate the game. Come know the rules. Know the rules of the game if you're going to play. And so crypto tax it's going to be awesome. And we're going to be answering a lot of those all those questions. 00:39:53:15 - 00:39:58:12 Unknown You will walk away crypto tax certified. You will know how it's taxed. 00:40:04:07 - 00:40:25:10 Unknown Oh yeah. And I you know, I, I'm not going to be bashful about it. I mean, I can just talk policy. I don't need to throw out epithets or, you know, personal attacks. The Tax Cuts and Jobs Act that Donald Trump passed when he was first in office was the most comprehensive tax reform since Ronald Reagan. And it was incredible. 00:40:25:10 - 00:40:47:08 Unknown And it was not just for the rich. You talk to my small business owners. It was a game changer. The tax write offs for bonus depreciation and auto, families, small business. It was incredible. And it's been phasing out for eight years is going to be completely gone by the end of this year. And we've got bonus depreciation legislation. 00:40:47:08 - 00:41:14:20 Unknown Hopefully that'll stick around. You know we got opportunity zones. The list goes on and on. None of that none of that is being offered under the prior Biden administration. I'm sure Kamala Harris is not talking about it. And so I don't care. You you, everybody you go vote how your heart tells you. But if you want to vote with tax legislation in mind and you want to save money and make money and build your business and grow your business, it's it's kind of a no brainer. 00:41:14:22 - 00:41:37:14 Unknown And I'm sorry. And you might have to sacrifice some other things you believe in. I don't know, maybe you don't, but don't think you're going to kid yourself into seeing better economic stimulus and and better tax legislation with the Democrats. It's not going to happen and never has. And I'm not saying bad things about Democrats. They've got there's a lot of great policies that Democrats have, but one of them isn't economics. 00:41:37:20 - 00:41:40:11 Unknown It's not let's be real. 00:41:48:19 - 00:42:09:14 Unknown the directed IRA podcast, directed IRA podcast.com, and then the Main Street Business podcast, main Street Business podcast.com. we just did the Open Forum show today where we answer questions from around the country. We have over 400 shows, I think over 4 million downloads now. And it's just about small business, building wealth, saving taxes, yadda yadda. 00:42:09:14 - 00:42:32:18 Unknown Love it. And you can get to Mark J. Nola.com and that's my landing page that leads to the law firm. All roads lead to Mark George March go. But the law firm directed IRA, our trust company, my network of CPAs around the country. I've got the Main Street tax pro certification program that will have over 1000 enrolled agents and CPAs following. 00:42:32:20 - 00:42:55:12 Unknown I have 80 test, module system of tax advisory strategies. They speak more color. They have to meet with me every week to be on that list. And you can find an advisor near you to get a strategy plan, and it can be affordable. My tax failures are like 15, 1600 bucks. To build an entire trifecta plan for your asset protection and tax strategy and then move forward. 00:42:55:23 - 00:43:01:05 Unknown Plan with. 00:43:01:07 - 00:43:08:11 Unknown yeah. Yeah. You type mark color. I'm I'm green. I know the little blue checkmark. Whatever my social media team talking about. 00:43:08:11 - 00:43:08:15 00:43:08:17 - 00:43:20:09 Unknown verified on all the platforms. I get a million view video here every a few weeks, and, I'm just I'm I'm the leader of the nerds. So if you're a nerd and you like to save money and make money, you know, just follow me. 00:43:20:11 - 00:43:44:22 Unknown My, YouTube platform is huge. We're going to probably hit 500,000 subscribers this year, and the videos just are so clean it makes sense and just use it as a second opinion. People, I'm not saying you got to call and hire me or my firm or whatever. Just consume a little bit more of this content. It is a the number one cost in your life is not a mortgage on your house, it's taxes. 00:43:45:00 - 00:44:01:08 Unknown And you may not see it because you're getting withheld from your paycheck. Some of you that are entrepreneurs see it a lot more in thrown in your face. Taxes are your number one cost and no one else talked about it. It's too boring, too complex. No one can make sense of it. Well guess what Mark colors. Making sense of it. 00:44:01:10 - 00:44:09:01 Unknown Get over to my podcast. Get to my YouTube channel, come check it out and we have fun. You can hopefully sense my style here. We keep it real. 00:44:09:01 - 00:44:28:09 Unknown I'll totally piss you off with some bad jokes some time, but just stay around for the content. 00:44:28:11 - 00:44:38:07 Unknown Yeah, well, thank you so much, Andrew. You've got a great show. Your questions were spot on, and, so such an honor to be here today. Thanks for having me. 00:44:38:07 - 00:44:58:07 Unknown That's a wrap on another discussion here on wealthy. Thank you for joining us. If you need help being financial resilient please head over to Wealthy man.com. Sign up for a free no obligation consultation and portfolio review with one of our registered investment advisors. And remember to follow us on social media for the latest news, information to help you invest wisely. 00:44:58:08 - 00:45:16:02 Unknown If you could like and subscribe to the channel, we would greatly appreciate it. And don't forget to hit that notification bell so you can find out when we post new videos on the channel. Thanks again for watching. And until next time, stay informed, be empowered and may your investments flourish. And if you like this content, please watch this video. 00:45:16:02 - 00:45:20:07 Unknown Next.
