You see them on TV. You see them on the internet. You read about them in the paper.
But are those people truly wealthy?
Answer: Most of the time they are not.
Old Money, and those beginning wealth builders (LIKE YOU) that are focused on creating lasting and enduring wealth know better. Michael Milken used to say that no publicity is good. The louder and more obnoxious you are in your personal dealings or business dealings the higher the chance you have of losing that money.
One reason is TAXES. 13% in California right off the bat. Make a Million per year as a W2 earner? Tack on another 50%. You are left with about $400,000 per year. Not chump change….but when you think you are making a Million – you spend like you are making a million.
The reason why a small business and or a few Group Homes can literally change your life is due to a number of reasons. Let’s chat about a few of them:
- Inflation and Taxes. The two silent killers. These are the two killers that took away the earned fortunes of the guys above. And so many others.
- Income. If you are personally overseeing 4 small Group Home, you will be making at least $2,500 per home. Yes, you have to work, but it is not a full time job. $10,000 Per month is AMPLE money for 98% of my subscribers. It is especially TAX Efficient Money
- Personal Expenses. Travel. Food. Utilities. Phone. Internet. Cable TV. Gas. Guess What? The $2,500 PER GROUP HOME is the amount you will make AFTER you pay for the above. THIS IS HOW YOU GET RICH.
- $120,00 PER YEAR. NET INCOME TO SPEND. Assuming you had $5M liquid (in stocks or bonds) and you generated 4% you still must pay your taxes. Assuming an avg tax rate of 30% AND then factoring in your other living expenses listed above, your $5,000,000 Nest Egg generates $200,000 before taxes, $140,000 AFTER TAXES and about $80,000 after rent (i.e. your office), food, water, gas, utilities etc are paid
- Policies and procedures
- Finding and locating clients (disabled vets, MH, MR etc)
- Video interviews with house managers
- How to hire
- How to fire
- P&L percentages (i.e. expenses as a % of revenue)
- Favorable tax treatment methods
- LLC structure and entity formation
- Much Much More