Wealth Formula by Buck Joffrey

Learn about the financial and emotional toll of divorces and the importance of prenuptial and postnuptial agreements. Explore the misconceptions surrounding prenups and the significance of financial planning in marriage. Discover the benefits of having a good lawyer negotiate these agreements for high net worth individuals and lower-earning spouses. Gain insight into managing marital finance and consider prenups and postnups for wealth growth strategies.

The financial meltdown of 2008-2009 feels like ancient history. And like tragedies that happened long ago, it feel more historical and less emotional.  I remember going to Pompeii several years ago and seeing people turned to stone from Mount Vesuvius erupting. It must have been horrific. But time has made it more of a museum than the scene of an awful natural disaster. That’s the way most people look at 2008 as well—as ancient history. But for many it was a very emotional time. But those who stuck to their guns and took advantage of blood in the street thrived for more then a decade afterwards.  A very good friend of mine is an incredibly successful entrepreneur in the real estate space. At the time, he was building multimillion dollar houses for celebrities. He was a household name in Los Angeles. Every famous person wanted a house that he designed. But like many successful real estate people, he got hit hard during that time and lost a lot of money. It was also around that time that his focus was turning towards hotels. By 2010 he was seeing incredible opportunities on hotels and was looking to raise capital to take advantage of the market. But no one wanted to invest. Even though things were at a steep discount, people were just too afraid. Fast forward to today, my buddy stopped trying to raise capital and ended up doing everything on his own. And now,  he’s in the middle of a $100 million 1031 exchange. And that’s just one of his hotels. That time for buying is around the corner again. 2010 is coming. Investment real estate is being hit really hard and its important to keep calm and wait for the opportunities that come before you.  My guest today is a new partner that I am going to ride the wave with when there is blood in the street. He’s been here before and has had a stellar record even in these tumultuous times. In this episode you’ll see how he has not only survived but thrived in this market and also how he intends to take advantage of the coming distress. Listen NOW! Buck P.S. Please note, there is an opportunity referenced in this podcast that can be seen at JoffreyCapital.com. This opportunity may not be available by the time this show airs, but check out the webinar for educational purposes at the least.

The podcast discusses the current state of the economy, including the turmoil in the investment real estate market and the potential for bank failures. It also explores the impact of a possible war in the Middle East on energy prices. The importance of understanding taxes and making informed decisions to reduce tax burdens and accumulate wealth is emphasized. The chapter highlights the significance of financial and emotional intelligence and recommends books for personal finance management.

My portfolio is not what most would call diversified. I am about 70-80 percent real estate, 10-15 percent permanent life insurance and about 10-15 percent higher risk stuff. My only stock exposure is only high-risk stuff like mining companies on the Toronto Stock Exchange. To be clear, I am not advocating for this approach. That’s just what has worked for me up to this point in my life. I should add that, unlike ten years ago, I am also far more open minded to expanding my investments into different areas. That’s why our investor club started working with a broker dealer/RIA  better versed in private equity and paper assets. Unlike 10 years ago, I am no longer dogmatic in my “alternative asset or bust” position. In fact, as a general rule, I have softened on many of my more emphatic beliefs. My gray hairs have now convinced me that it just makes sense to have an open mind. I still believe that alternative assets are where the life-changing opportunities are but there are other considerations such as sector diversity, hedging and cash flow. Cash flow is not what you typically think of when you think of paper assets, but it is something that you certainly can create with stocks in very unique ways that don’t involve simple dividends. Andy Tanner wrote a book about this kind of investing in Robert Kiyosaki’s Rich Dad series and there is really no one better at explaining it then him. So, if you want to continue to explore other ways of investing your money, make sure to tune in to my conversation with Andy on this week’s episode of Wealth Formula Podcast. Buck P.S. Here’s the link for the free course Andy mentions in the podcast https://cf.thecashflowacademy.com/tcfa-6sn-wf-reg

Last week I did a back-to-school episode for you on asymmetric risk. I told you that my primary asymmetric risk related investments are in cryptocurrency. As a reminder, asymmetric risk investing means you throw in some money that, if you lose it, isn’t going to kill you. But on the other hand, if things go well, could make you rich. Cryptocurrency has done both for a lot of people. In fact, in many cases it has done both to the same people at different times (yours truly included). Let’s take a step back and review this whole crypto thing a little bit for those who haven’t been involved in the rollercoaster ride for the past decade and a half. It all started back in 2009 with a white paper circulating amongst computer scientists authored by someone calling themself Satoshi Nakamoto. The idea was a digital currency with no central authority like the US government or some big company. This currency would be tracked not by one ledger but thousands. In keeping a “distributed ledger”, there would be no need central authority. This currency would also be immutable and something that no one could simply confiscate like a bank putting a lien on your cash. This is a massive oversimplification of bitcoin and purists are sure to correct me, but that was the essence of the original bitcoin thesis. It was simply a way to exchange value without a middleman. Bitcoin has interesting parallels to gold. It requires “mining” to make it. Mining in this case requires computational power to solve math problems. Back in 2009 nerdy computer types were mining thousands of bitcoins on their desktop computers. Now it takes serious expensive hardware and warehouses to mine bitcoin. Very few people thought it would be worth anything anyway. In fact, the first commercial bitcoin transaction was made on May 22nd, 2010—almost as a joke. 10,000 bitcoin were accepted as payment for two supreme pizzas from Papa John’s. Last year, the cost of a single bitcoin had exceeded $70K. So, I hope that was a good pizza. Anyway, over the next few years, bitcoin saw its ups and downs but the regression line was clearly positive and extremely steep. Within the last 5 years or so, there have been bitcoin futures and publicly traded financial products as well. It has clearly been adopted by the mainstream. And, in my humble opinion, the chances of it going to zero are about…zero. Now despite its volatility, bitcoin has been recognized largely as a storage of value. This is another parallel with gold. And also like gold, it’s a little bit difficult to use in everyday transactions. You see, the bitcoin network is extremely secure but very slow (in part because it is extremely secure). It would make your morning stop at Starbuck’s unbearable. Other technologies like the lightening network have offered potential solutions to the speed issue, but for now, bitcoin really is a gold-like commodity. In the meantime, tech entrepreneurs have recognized that distributed ledger technology could be used for more than just money. Distributed ledgers are now being used to create a different kind of internet—the so called Web 3.0. Web 3.0 is owned by the user. So think about internet businesses like google and Facebook now. You use them but they are being monetized by a single company that you don’t own. Web 3.0, in theory, creates online businesses with similar functionality but now, instead of there being a separate owner, the platform is owned by anyone who owns a token to that business. So…no more big brother like Facebook or Twitter telling you what you can or cannot post. And you aren’t making money for corporate America by using these platforms. Anyway, so all these “crypto” projects outside of bitcoin really aren’t about exchanging value. They aren’t really meant to be money. Instead, the tokens in these alt coins (anything but bitcoin) are more like owning stock in software companies. Some software companies like Ethereum build infrastructure. Others are more specific and build functional businesses or games using the infrastructure software. Anyway, hopefully you get the idea. Web 3.0 is coming for sure. It’s just a matter of time where it just infiltrates everything you do on the internet. You may not even know you are using software built on one of these tech platforms. It will just be one more thing that makes our lives easier that we take for granted. Anyway, a lot of these new programs and services require infrastructure that is not only on a distributed ledger and safe like bitcoin. But they also need to be fast. Hedera (aka Hedera Hashgraph) was a project that I learned about and invested in about 6 years ago in a presale. It is arguably the fastest and most secure distributed ledger network in the world. It also currently has the most transactions. In all transparency, I own a fair amount of its native token, HBAR. And, I have been praying for it to explode like many lesser cryptos have for the last 5-6 years. At one point it had gone up about 5X from where I bought it but I never sold. Its technology is so good that I thought it had a lot more upside. And I still do despite it being half the price I bought it for a few years back. Bottom line is that I have not lost faith. The project has met every goal on its timeline. It just hasn’t seen the kind of price action that you might expect from what it has accomplished. To be clear, this podcast is not an endorsement to buy HBAR but it’s an example of one of my asymmetric bets that I thought I would share with you. Cofounder Mance Harmon has been on the show before and was kind enough to join me again to tell you about the project and give us some insights into the crypto world today. So if you’re curious what kinds of asymmetric bets I’m making, make sure to tune in! Buck P.S. If HBAR goes $30 I probably won’t be doing this show anymore LOL!

Other Types of Asymmetric Investing Example of Asymmetric Investing: Cryptocurrency Considering Asymmetric Investing Examples of Successful Asymmetric Investing Personal Experiences with Asymmetric Investing

In this podcast, Buck Joffrey discusses the choice between term life insurance and permanent life insurance, exploring personal experiences and contrasting advice from different sources. He also delves into the importance and debate surrounding life insurance, as well as strategies for amplified returns using premium finance and leverage. The podcast touches on comparing retirement plan options, using life insurance as an asset for asset protection and estate planning, and exploring strategies for the future.

Asset Allocation Diversification and Leverage Permanent Life Insurance and the Wealth Accelerator Multi-Family Real Estate Asymmetric Investing: Taking a Risk How to Avoid Single-Point of Failure?