Order of Man - What the Successful Know About Wealth, When to Invest, Why Own Rentals ｜ ASK ME ANYTHING

00:00:00.000 One of the things he talked about is knowledge.

00:00:02.120 The purpose of knowledge is action.

00:00:03.620 That's the difference between knowledge and wisdom.

00:00:05.860 I really don't care how much you know.

00:00:07.540 I care about what you do with that information.

00:00:10.120 And that's the difference between knowledge and wisdom.

00:00:13.440 And we should all be moving towards wisdom,

00:00:15.220 which is practical application of the knowledge at hand.

00:00:18.960 Kip, what's up, man?

00:00:19.980 Great to see you.

00:00:21.700 We're still having some technical difficulties with the audio,

00:00:25.020 but we'll get it figured out.

00:00:26.320 Dude, yeah.

00:00:27.220 Sorry about that.

00:00:28.140 I prepped.

00:00:28.840 I thought I prepped.

00:00:29.640 It's hard to tell, right?

00:00:30.940 If I don't have the listening ear of Ryan Mickler to clarify audio quality,

00:00:36.700 I have no other way to test.

00:00:40.160 Well, I don't understand why technology is the way it is.

00:00:45.040 You know, you – like I could leave.

00:00:47.280 I could just leave my desk right now exactly the way it is and not touch anything

00:00:52.960 and then come back three hours, fire it up, and all of a sudden it's not working.

00:00:58.980 I did nothing.

00:01:00.100 I changed nothing.

00:01:01.140 I bumped nothing.

00:01:02.300 I didn't unplug anything.

00:01:04.740 And everybody says, you know, oh, if technology is not working, it's user error.

00:01:09.240 I'm like, I don't know.

00:01:09.960 Maybe AI is getting into it and it has its own mind or something.

00:01:13.460 Or something's going on.

00:01:15.160 Memory leaks, updates to software we don't know about.

00:01:19.000 I mean, you know what I mean?

00:01:20.480 Yeah, true.

00:01:21.400 There's so many variables, right?

00:01:23.460 But, yeah, in our minds, right, it should be simple.

00:01:27.700 So how are you doing, man?

00:01:29.400 Wild week to say the least.

00:01:33.560 Yeah.

00:01:34.520 You know, last time we record, a lot has happened since last week.

00:01:39.200 And it's just – I don't know.

00:01:40.860 It's crazy.

00:01:41.480 How are you feeling?

00:01:43.180 Yeah, well, very, very on edge, very on alert, you know, and it's just disturbing the amount of people who are celebrating Charlie Kirk's death.

00:01:55.520 Unreal to me.

00:01:56.840 I'm not saying you have to agree with the guy.

00:01:58.780 I'm not saying you have to like the guy.

00:02:00.260 You know, and there's also this other side of it where people say political violence is never acceptable.

00:02:08.500 I don't know if that's true either.

00:02:11.340 You know, if – take, for example, Hitler. 0.58

00:02:14.160 If you or I had the chance to go back in time and take out Hitler for his political stances and a cultural viewpoint, would we do it? 0.85

00:02:21.780 I think 99% of people would say yes.

00:02:24.420 Yeah.

00:02:24.820 And I think it might be justified.

00:02:26.820 Now, here's where it gets tricky.

00:02:28.300 If people villainize others for being fascist or Hitlerian or promoting tyranny, even if they're not, then they can justify violence, not words, actual violence against another party.

00:02:48.400 And that's the biggest issue is you have to convince yourself that this is an evil person and the world is better off without them in it in order for you to rationalize shooting somebody.

00:03:02.160 It's insane to me.

00:03:04.060 Yeah.

00:03:04.700 Yes.

00:03:05.320 Totally agree.

00:03:06.440 And same, right?

00:03:07.940 Like, as I – the disturbing part is the celebration of it, the loss of humanity from people's point of view and the connection of this idea that what someone says – that someone's words ultimately affect me, that there's a lack of ownership in my response to something.

00:03:36.500 And through that way of thinking that I can justify violence or even justify the celebration of violence of taking another human's life because I disagreed with them.

00:03:48.800 It is – and I know this is a stretch, and maybe it's my play from a leadership perspective, but this is victim mentality.

00:03:57.800 This is a prime example of people believing that what other people think, what other people say ultimately determines their level of happiness in their life, and they've relinquished that control to other people.

00:04:16.700 And it helps them justify the lack of their humanity towards others.

00:04:22.340 It is – man, it is sad to say the least.

00:04:26.980 Well –

00:04:27.140 It's been gnarly.

00:04:28.380 It is sad, but you know, the other thing that people who are celebrating the death of Charlie Kirk, what they don't realize yet, and they will, is the same attitude of celebration towards somebody they don't agree with will eventually be aimed at them.

00:04:47.680 And when that sort of – and when that sort of vitriol and hostility and potential violence is aimed at them, all of a sudden they'll be singing a different tune.

00:04:59.100 So we have to be very careful on the type of precedent that we set because it will be redirected.

00:05:06.680 I promise you.

00:05:07.620 It will – it always comes around.

00:05:09.240 It's a pendulum.

00:05:09.740 And what goes one way definitely ends up going the other way.

00:05:13.060 What goes up must come down.

00:05:15.340 So be careful what you promote.

00:05:19.240 Be careful what you celebrate.

00:05:20.920 And ask yourself, would I celebrate this behavior or this set of circumstances or this action if it was directed at me or people I love?

00:05:30.860 And if it's not, then be careful because it will come back to you.

00:05:34.380 Totally.

00:05:34.880 I mean there's evidence of this already.

00:05:36.320 You saw the guy that literally like moments after the shooting like was caught celebrating.

00:05:43.180 Did you see that guy, long hair, curly hair?

00:05:46.160 I've seen a bunch of them.

00:05:49.140 Yeah.

00:05:49.400 Literally right there, right, with Charlie Kirk in the background where he was.

00:05:54.700 Hands up celebrating, right?

00:05:56.220 On his shoulder, on somebody's shoulders or something.

00:05:58.080 No, no, no.

00:05:58.380 I think he was just standing there celebrating with his smile.

00:06:00.880 Oh, everybody was crutched down and he stood up.

00:06:03.160 Yeah.

00:06:03.300 Yeah.

00:06:03.600 Yeah.

00:06:04.060 And, you know, look at this guy's tune.

00:06:06.840 Online.

00:06:08.720 I'm worried about my family.

00:06:10.660 You know, all of a sudden, like, he's like, oh, please have some humanity towards me, right?

00:06:17.280 And you're like, easy.

00:06:19.360 To your point, you were so quick to throw the rock, right?

00:06:24.780 But once those stones started being tossed at you, it's like, oh, wait, wait, hold on.

00:06:29.000 Have some empathy, right?

00:06:30.620 And some grace.

00:06:31.300 So, yeah, that's good advice.

00:06:33.300 I think there's some time for some critical conversation around what's happening.

00:06:38.300 And maybe this is the catalyst for that.

00:06:41.680 It really is unfortunate.

00:06:43.660 Obviously, I re-released an episode with Charlie Kirk last week.

00:06:48.140 I think it was Wednesday or Thursday of last week that I, it was Thursday of last week that I re-released that episode.

00:06:54.720 And this is somebody who I've had on the podcast.

00:06:57.320 You know, one of the things I struggle with is the misrepresentation or mischaracterization of Charlie Kirk.

00:07:04.320 You know, people say he spread hate and hostility.

00:07:07.280 I've watched a lot of videos over the past three to four days.

00:07:11.360 And I see a lot that can be misconstrued as hate or vitriol or hostility by people who are looking to be offended by something.

00:07:20.080 But just speaking plainly and disagreeing about something, whether it's homosexuality, transgenderism, open borders, Israel, you name it.

00:07:32.040 I have yet to have seen a video that I would call hatred towards somebody else that wasn't just taken completely out of context.

00:07:41.000 And if somebody has something that they can show me, DEI is another one, women and men's sports, or excuse me, men and women's sports.

00:07:50.300 If you can show me something, then I will stand corrected and I would like to see that.

00:07:55.940 But as of yet, I've seen a lot of things that would offend very soft people, not people with some common sense and the ability to use some nuance and exercise some discernment.

00:08:08.400 Yeah, absolutely.

00:08:08.960 I mean, let's be frank.

00:08:10.140 Most of these people that are demonizing him, they probably never even heard of Charlie Kirk until last week.

00:08:16.180 I've never, like the same thing, I was saying the same thing to my wife last week.

00:08:20.340 I was like, it's fascinating to me how many times I've heard that he is racist.

00:08:25.420 I follow, I have followed Charlie Kirk for years.

00:08:28.400 I've never, ever heard anything slightly racist come out of his mouth.

00:08:34.560 Not once.

00:08:35.780 So I'm like, what are you guys talking about?

00:08:38.240 What are these sound bites, supposedly, of him being racist?

00:08:43.960 And I would probably argue you probably can't find them because they don't exist.

00:08:48.740 Now, I might be wrong.

00:08:49.620 Well, it's interesting because…

00:08:50.220 Maybe there's moments or something.

00:08:51.280 I don't know.

00:08:51.760 But I haven't seen anything. 0.99

00:08:52.700 Well, look, you put a camera and a microphone on you as often as somebody like that did, you're bound to say something dumb. 0.98

00:08:59.920 And if it was dumb and it was said, then let's address it. 0.98

00:09:03.300 But if somebody says, oh, he's a racist because he said X, Y, and Z, I'm like, can you show me? 0.98

00:09:07.820 Can you point?

00:09:09.260 I would like to see that.

00:09:10.420 Genuinely, let me see that.

00:09:11.840 And their answer is, well, it's just, it's everywhere.

00:09:14.120 It's everywhere.

00:09:15.020 Google it.

00:09:15.500 It's everywhere.

00:09:15.920 If it's everywhere, it should be really easy to prove, but it doesn't seem to be.

00:09:22.080 Yeah, absolutely.

00:09:23.760 Go on, man.

00:09:24.480 Well, I don't know if you had another headline or other thoughts that you want to cover before we jump into questions today.

00:09:29.780 Okay.

00:09:30.180 That's it.

00:09:31.000 The only other thing I would say is, you know, in moments like these, we really need to consider what we ought to do in our lives.

00:09:38.280 And people say all the time, oh, well, we need to stop talking and start doing something.

00:09:43.180 They'll even tell me that.

00:09:44.260 It's like, yeah, I've, I've poured 10 years of my life into building up the cause of good and righteous masculinity.

00:09:53.380 And when people say, well, you should do something.

00:09:55.560 We are.

00:09:56.160 I believe that when we band men together, when we talk for thousands and thousands of hours at this point between ourselves and having other great men and women on the podcast, discussing what it means to be a man, figuring out how we can better serve our families and our communities, how we can start businesses, how we can make more money, how we can get in shape, how we can be situationally aware, how we can get closer to our walk with God and spirituality.

00:10:24.020 That is me doing something.

00:10:26.160 That is us doing something.

00:10:28.140 And here's what I would say.

00:10:29.140 If you come to me with an idea and you say, Ryan, and you start pointing your finger at me and you tell me what I should do, I'm going to point my finger back at you and say, you should do that.

00:10:38.960 That's what we need.

00:10:40.460 I'm, I'm in my thing.

00:10:42.120 I'm doing the thing that is important to me.

00:10:44.280 This is that important.

00:10:45.480 I feel like this is the cause that we need to embrace, which is why I'm doing it.

00:10:49.920 But there's surveys, and you could attest to this with your leadership work, Kip, that upwards of 70%, it's probably even higher, of people in the workforce are dissatisfied with their job.

00:11:02.520 That means hundreds of millions of people are going to work every day doing something they aren't passionate about.

00:11:09.460 So don't come to me and tell me what I should do.

00:11:12.280 Look in the mirror and ask yourself what you should do because you're not happy with your life.

00:11:16.580 You're not satisfied with your work.

00:11:18.300 You're finding no meaning, purpose, and significance from it.

00:11:21.120 So when you think I or somebody else should do something, let that be a reminder that you should be speaking to yourself, that you should be saying, I should do this.

00:11:31.740 This is important to me.

00:11:33.320 Here's a cause I care about.

00:11:34.980 Here's an injustice I see in the world.

00:11:36.680 And get in the game.

00:11:39.600 That's on you.

00:11:40.960 And I'll keep doing what I can do.

00:11:42.680 And I'm not saying I'm not open to suggestions and ideas.

00:11:45.120 That's not what I'm saying.

00:11:46.240 But if you think that I should be the one or somebody else should be the one, no, you should be the one.

00:11:52.540 And I'll help you do it.

00:11:54.660 Yeah.

00:11:55.420 Amen.

00:11:56.600 All right.

00:11:57.220 So for this week, we have questions.

00:11:59.220 All thing money, right?

00:12:00.240 That's our theme from the questions that we pose to the Iron Council.

00:12:05.800 We'll just jump right into these if that works for you, Ryan.

00:12:09.100 Let's get after it.

00:12:10.200 All right.

00:12:10.620 Karen Gill, you have more wealth.

00:12:13.340 Oh, go ahead.

00:12:13.980 First, let me say one thing.

00:12:15.740 I am not a financial advisor.

00:12:17.660 I am no longer a financial advisor.

00:12:19.680 I was at one point in my life.

00:12:21.920 Rules and laws and tax codes have changed.

00:12:25.020 Please don't message me and ask if I can help you with your 401k because I can't and I don't want to.

00:12:30.160 But I can send you in some different places.

00:12:32.720 We're going to do the best we can with the information we have.

00:12:35.180 And if I don't know something, I will just say I don't know.

00:12:38.020 Look to so and so to figure that out.

00:12:40.240 Perfect.

00:12:40.820 I love the disclaimer.

00:12:41.740 All right.

00:12:42.760 Karen Gill, you have more wealth or high six-figure, seven-figure earners in your network than most men.

00:12:50.460 What's something you see that's wealthy people you know do that everyday men don't?

00:12:56.060 Mindsets, habits, investing, financial instruments, priorities, and et cetera, whatever you deem worthy to share.

00:13:04.920 I saw this question.

00:13:06.240 I haven't seen all the questions, but I did see this one.

00:13:08.420 And I really wanted to give a thoughtful answer, so I spent some time thinking about it.

00:13:13.280 You know, there's the investments and there's the discipline and budgeting and tracking your money and having access to good investments because you're what they would call a credited investor, which means you have net worth or you have a certain amount of assets.

00:13:26.420 And I don't know, again, this is where I don't know what the exact numbers are because they've changed since the time that I was in the business.

00:13:33.880 But there's two things that really stand out to me with all of our high-profile guests who are very, very successful.

00:13:39.940 They do two things.

00:13:41.440 Number one, they invest in themselves.

00:13:44.240 Now, none of this is exclusive.

00:13:46.000 That's not all they're doing, but this is a trend.

00:13:48.680 Trends.

00:13:49.240 Yeah.

00:13:49.360 They invest in themselves.

00:13:51.100 They're typically investing in their body, their fit.

00:13:55.240 Maybe they hire chefs or nutritional coaches, coaches at the gym, but they're willing to invest money into improving their performance, mental, physical, emotional, public speaking, career skill sets.

00:14:11.100 They are just willing to put money into themselves, and I don't think a lot of people do that.

00:14:16.400 I don't think average income earners do that.

00:14:18.480 I don't think those with a moderate level of success or wealth, I don't think they do that to the degree.

00:14:25.220 And I believe that because I've seen it time and time again, that the individuals who have high levels of wealth, they invest heavily in themselves, and they look for deficiencies, and they pour money into it.

00:14:35.540 That's number one.

00:14:36.900 Number two is they invest in their people, and they know how to network really, really well.

00:14:44.860 We've all heard the phrase, your network is your net worth.

00:14:48.480 That to me is completely accurate, and the people who are movers and shakers, they are always the most connected.

00:14:56.360 They know the most successful people.

00:14:58.560 They know the people with the most amount of wealth.

00:15:02.760 Those are the people they know, and they rub shoulders with.

00:15:05.340 They break bread with.

00:15:06.620 They engage in other activities, you know, hunting and vacations and trips with those individuals.

00:15:12.100 And on the surface, you might say, well, you know, it's easier to be around wealthy people when you're wealthy.

00:15:19.100 That isn't always the case.

00:15:20.980 I've been around some very, very successful people long before I was a success at their caliber.

00:15:27.120 And what I did is I invested in being around them.

00:15:30.480 So I would go to conferences.

00:15:32.900 I would buy programs.

00:15:34.400 I would buy courses.

00:15:35.520 I would share their material.

00:15:37.220 I would promote their courses and their books.

00:15:39.300 I would go and try to be around these people and add value to their lives because I noticed that if I did that, not only would I be served because I'm consuming this great content and applying it in my life, other people will be served.

00:15:52.420 Because they're getting the benefit of having me invest and then bringing that information to them, but also those individuals will be served because now they have somebody who's going to promote them and somebody who wants to see them win and somebody who wants to see them succeed.

00:16:06.320 And in turn, the law of reciprocity states that essentially if somebody feels like they owe you something, then they're going to feel inclined to pay it forward and pay it back to you.

00:16:17.820 So those two things stand out.

00:16:19.780 They invest in themselves and they invest in their people.

00:16:23.280 Other things, sure.

00:16:24.700 But those two really stand out.

00:16:26.600 I love it.

00:16:27.360 You know, one thing that comes to mind is they're not, and it goes back to kind of your soundbite there around the events from last week with Charlie Kirk, right?

00:16:37.440 And people pointing the finger and saying, oh, no, Ryan, maybe you should, or other people need to, or I wish we had politicians that would do this.

00:16:44.760 I mean, it doesn't take, how's this?

00:16:47.620 We can self-evaluate this fairly easily.

00:16:49.980 Sit back, look at the people in your life that that's their typical messaging.

00:16:56.980 Oh, I sure wish that we had a different politician. 0.55

00:17:00.260 I sure wish that my boss, I sure wish, wait, hope, hope, other people sitting back, victim mentality.

00:17:08.380 Those people, most of those people are not successful in life.

00:17:14.460 Why?

00:17:15.020 Because they're waiting and hoping for someone else to do something.

00:17:18.040 And I think we can all just self-evaluate, right?

00:17:23.760 And look at the people that are getting after it are usually the individuals that deal in reality.

00:17:29.460 They accept and look at a situation for what it is logically, and they move to action.

00:17:36.180 They do something about it.

00:17:38.640 And they take responsibility and a role in the circumstance or the situation.

00:17:45.360 And I would probably argue, and maybe you can agree or not, Ryan, on this, is most successful people that you've been around are doing that.

00:17:55.100 If I look at my circle, the most successful people, they're not waiting and hoping for someone else to figure something out.

00:18:01.520 They are driven.

00:18:03.120 They see an issue and they move towards it.

00:18:05.900 They're not bitching and moaning about circumstances.

00:18:09.580 A hundred percent.

00:18:14.220 I mean, this movement is a great example of that.

00:18:18.300 And I'm not wanting to toot my own horn here other than to reaffirm what you're saying.

00:18:23.920 I had such a struggle trying to find the caliber and quality of men that I wanted to band with.

00:18:30.700 And I had a hard time finding material that wasn't just theoretical, but that was practical and applicable in my life.

00:18:37.680 And so we created Order of Man to put myself in proximity to men like you.

00:18:44.040 You and I would not be friends if this weren't the case.

00:18:47.180 Yeah.

00:18:47.500 And literally thousands of other people.

00:18:50.240 And then my goal has always been to bridge the gap between what we know and what we do.

00:18:55.720 Because I think every man I've ever talked with has an idea of what it means to be a man.

00:19:00.460 Now, some of it is a little misguided, I would say.

00:19:03.700 And some of it is more accurate based on from where I sit.

00:19:07.680 But everybody already knows in their own mind what that means.

00:19:11.800 Okay, well, great.

00:19:12.640 Why aren't we doing it?

00:19:14.320 Yeah.

00:19:14.700 Or if I were to say, how do you get in shape?

00:19:16.800 Everybody knows.

00:19:17.820 Well, I got to exercise.

00:19:19.240 I've got to train.

00:19:20.100 And I've got to feel my body correctly.

00:19:22.060 Great.

00:19:23.020 Why are we so obese as a society?

00:19:26.500 Is it because we don't know?

00:19:27.500 No, it's because we don't do it.

00:19:29.980 And so I needed to find something that was built for men to take information, break it 0.90

00:19:36.680 all down, deconstruct it, then reconstruct it in a way that was consumable and applicable.

00:19:42.140 And that was order of men.

00:19:43.940 I could have sat around and pondered and pontificated and talked about why being a good man is important.

00:19:51.320 And I do.

00:19:51.980 But unless we're moving towards action, that's the solution I needed.

00:19:55.400 Yeah.

00:19:55.920 That's what I wanted.

00:19:57.760 And that's what, fortunately, we've been able to create.

00:20:01.280 Yeah.

00:20:01.540 Move towards action, man.

00:20:03.160 I was thinking about this last week.

00:20:05.980 Here's a thought that I had.

00:20:07.620 The purpose of knowledge is what?

00:20:10.120 Action.

00:20:11.720 Purpose of faith.

00:20:13.260 Have faith.

00:20:14.580 But what's the purpose of it?

00:20:16.900 Action.

00:20:17.820 Action.

00:20:18.520 Faith about words.

00:20:19.200 Purpose of motivation.

00:20:20.740 Action.

00:20:21.760 Right?

00:20:21.940 But yet, so many of us, and that's why even the educational system bothers me sometimes,

00:20:28.000 right?

00:20:28.180 Because it's like, oh, we learn these things.

00:20:29.720 Awesome.

00:20:30.200 Great.

00:20:31.600 Right.

00:20:31.860 So you have a sound bite and you can tell people you know something.

00:20:35.040 Awesome.

00:20:35.780 Way to use that knowledge.

00:20:37.880 Man, if you're not applying it, then you're not doing anything.

00:20:43.220 And by the way, everyone that thinks they're like warriors and they're standing for something

00:20:47.600 by regurgitating social media posts, that's not taking action.

00:20:51.940 It's a little bit more than that.

00:20:53.860 Right?

00:20:54.140 That's not taking action.

00:20:54.800 It's a lot more than that.

00:20:55.700 Yeah.

00:20:56.260 That doesn't count.

00:20:57.960 Anyhow, all right.

00:20:58.480 Well, and one of the things he talked about is knowledge.

00:21:01.480 The purpose of knowledge is action.

00:21:02.960 That's the difference between knowledge and wisdom.

00:21:05.600 Yeah.

00:21:05.780 I was, I heard from somebody on social media the other day.

00:21:09.000 We got into DEI a little bit and they were saying how some of these women were so smart 0.99

00:21:17.380 and because they were intelligent, they had degrees, then that's their credentialing.

00:21:21.520 That's why they're put into positions of power. 0.99

00:21:23.640 I'm like, I know plenty of really dumb people that have college degrees. 0.99

00:21:27.500 Me too. 0.99

00:21:29.020 It's, it's knowledge.

00:21:30.480 Sure.

00:21:30.920 They could give, they could recite something out of the textbook.

00:21:33.880 Absolutely.

00:21:34.360 But until they can take that information and they can go apply it practically for the betterment

00:21:40.200 of their lives and the betterment of those they're purporting to serve, I don't really

00:21:44.900 care.

00:21:45.640 I really don't care how much, you know, I care about what you do with that information.

00:21:50.140 And that's the difference between knowledge and wisdom.

00:21:53.300 And we should all be moving towards wisdom, which is practical application of the knowledge

00:21:57.200 at hand.

00:21:57.840 Yeah, absolutely.

00:21:58.920 All right.

00:22:00.120 Trevor Burrow.

00:22:01.980 This is interesting question mostly because I'm like, I have no idea what he's talking

00:22:05.180 about.

00:22:05.420 Cause he's like, even most people don't understand this.

00:22:07.420 I'm like, man.

00:22:07.980 And that includes me.

00:22:09.340 What's the difference between real and normal gains?

00:22:14.960 Real and normal gains.

00:22:17.100 Normal.

00:22:17.640 I think he actually said.

00:22:18.880 Oh, nominal.

00:22:19.740 I'm sorry.

00:22:20.280 Jeez.

00:22:20.620 I read that too quick.

00:22:21.740 Yeah.

00:22:22.160 Real and nominal gains.

00:22:23.400 I still don't know what it means.

00:22:25.220 Yeah.

00:22:25.480 Well, this is the, I'm glad he brought that up because there is a big distinction between

00:22:30.780 real and nominal gains and it's very important individuals know this.

00:22:34.180 And he said, most people don't.

00:22:35.340 He's right.

00:22:35.740 Yeah.

00:22:36.440 So a nominal gain is, let's say that I was going to invest a thousand dollars into something.

00:22:44.720 It doesn't matter.

00:22:46.540 And, um, I, over the course of a year, I made a hundred dollars off the thousand.

00:22:54.920 So off the thousand.

00:22:56.720 So my nominal gain is a hundred dollars.

00:22:59.840 Yeah.

00:23:00.380 So we would say 10% was my nominal gain for the year.

00:23:04.000 Got it.

00:23:04.680 Okay.

00:23:05.140 A real gain calculates inflation and maybe taxation.

00:23:10.600 If you want to include some calculations as well.

00:23:13.780 Got it.

00:23:14.080 So let's take the cost as well.

00:23:15.880 Maybe.

00:23:16.660 Sure.

00:23:17.240 Absolutely.

00:23:18.000 Yeah.

00:23:18.560 Typically it's just, it's just adjusted for inflation, but I think taking into consideration

00:23:23.780 cost, taking into consideration taxation is important, but when it comes to real gains,

00:23:28.040 it's typically just inflation.

00:23:29.240 So let's take the same thousand dollars and then I'll tell you why it's important.

00:23:33.260 People know this.

00:23:34.000 So I invest a thousand dollars in the same vehicle.

00:23:36.880 I make a hundred.

00:23:37.960 And so that's a 10% return in a year, but if inflation's 4%, then my real return, or excuse

00:23:45.940 me, yes, my real return is 6%.

00:23:48.700 Got it.

00:23:50.020 The reason it's important to know that is because if you're getting 2% on your money

00:23:55.520 in a money market or a CD or at the bank, you're actually losing purchasing power.

00:24:02.420 You're not losing money per se, but you're losing purchasing power.

00:24:06.640 And because you're losing purchasing power, your, your 2% return is completely wiped out

00:24:13.760 by inflation.

00:24:14.980 So if inflation's 4% hypothetically, let's say, and it's, that's a whole other argument because

00:24:21.540 the government will pick what the CPI consumer price index is based off of and they'll cherry

00:24:27.880 pick.

00:24:28.280 So they'll, they'll take gas out of it.

00:24:30.960 They'll take milk out of it. 0.99

00:24:32.380 They'll usually take the things with the highest, uh, inflationary rate to calculate that.

00:24:37.700 So if they say inflation's 4, it's probably 6.

00:24:40.960 So if you're not getting at least 6% return on your money, you're actually losing for all

00:24:45.760 intents and purposes, spending power each and every year.

00:24:49.300 So that's why putting your money under the mattress, it has its reasons, but you're paying

00:24:54.420 for that.

00:24:55.140 Yeah.

00:24:55.680 You're losing money more likely.

00:24:58.180 Yes.

00:24:58.780 Lost opportunity cost.

00:25:00.080 So that's why it's important.

00:25:02.320 People know that.

00:25:03.480 Got it.

00:25:03.880 Got it.

00:25:04.300 I like it.

00:25:04.940 Thanks for asking that question.

00:25:06.580 I learned actually.

00:25:07.660 Thank you.

00:25:08.700 Uh, Peter Battencourt.

00:25:10.380 Hey brother.

00:25:11.040 Great questions this week and perfect timing.

00:25:13.380 We're selling our house.

00:25:14.660 And instead of buying again, right away, we'll be renting.

00:25:18.460 That means we'll have a decent amount of cash on hand in the very near future.

00:25:23.100 We have a little bit of debt to knock out.

00:25:25.340 So what is the wisest move?

00:25:28.020 Um, sorry, I had to expand it and I lost my spot.

00:25:31.720 Jeez.

00:25:32.300 Seriously.

00:25:34.260 Um, these are my, uh, near, uh, in the near future, we have a little debt to knock out.

00:25:39.000 So what's the wisest move with my funds?

00:25:41.600 Keep it liquid, flexible with earnings of the rent, put a portion into investments or

00:25:46.940 hold it aside for the right property.

00:25:49.080 When the timing makes sense, if it were your money, how would you steward it?

00:25:53.380 All right.

00:25:55.160 So there's a lot, there's a lot to go into this.

00:25:58.400 And this is one of those questions where you have to say it depends.

00:26:02.320 Yeah.

00:26:02.760 And I hate when people say it depends.

00:26:04.520 So let me just give some factors to consider because there are.

00:26:08.960 All right.

00:26:09.440 So number one, you said you have a little bit of debt.

00:26:12.860 Let's just hypothetically say for the sake of argument, he's got a hundred thousand dollars.

00:26:17.500 Okay.

00:26:17.860 I don't know if it's 10,000.

00:26:19.400 I don't know if it's a hundred thousand.

00:26:20.400 I don't know if it's less or more.

00:26:21.300 I don't know.

00:26:21.740 A hundred thousand dollars for easy math.

00:26:24.000 Um, I would consider what interest rate is, is on my debt.

00:26:29.420 So if my debt is, if it's 18% credit card debt, then where am I going to put that?

00:26:35.620 I'm going to get a better rate of return than 18%.

00:26:37.740 And if I pay the credit card off and let's say my, my cost of servicing that debt, meaning

00:26:44.180 the monthly payment is significant.

00:26:46.160 Then can I take that thousand dollars a month, let's say, and then invest that at a decent

00:26:52.620 rate of return that over the course of two years will, we'll make up for it.

00:26:56.460 At least put a dent into what I use to pay it off.

00:26:59.260 Then you also have to consider when are you going to buy a house?

00:27:02.420 If it's in 12 months, I would want more liquidity to that money because I wouldn't want to put

00:27:09.760 a hundred thousand dollars into the market, lose 20%, which is possible.

00:27:14.080 And then in 12 months, now you've got 80,000 and you got to pull all that money out.

00:27:19.660 So you're never going to recoup what you lost in the first place.

00:27:23.240 So that's a consideration.

00:27:24.700 The other consideration is how many investments do you already have?

00:27:28.820 If you've got another a hundred thousand or 150,000 in, in investments based on Peter's

00:27:34.900 age, that's has the potential to grow at a nominal rate of return, then you might have

00:27:41.760 that department checked off a little bit.

00:27:44.300 Right.

00:27:45.200 Yeah.

00:27:45.820 And, and so you, you don't need to invest because you're hedging against this money that

00:27:50.900 would be in a safe money market account or CD because you've got these other investments

00:27:55.520 performing over here correctly.

00:27:58.000 So really when you look at any investment, you have to look at four things.

00:28:01.740 You have to look at potential rate of return.

00:28:04.800 Okay.

00:28:05.200 You have to look at liquidity.

00:28:07.480 You have to look at safety and then you have to look at taxation.

00:28:11.660 I was going to say the things you're going to look at.

00:28:13.920 Yeah.

00:28:14.300 I was going to say the taxation is critical, right?

00:28:16.280 Especially on our property because correct.

00:28:18.200 I don't know.

00:28:18.800 I don't know what it's called.

00:28:19.700 I've, I've ran into this though, where if we didn't invest the, the capital off of

00:28:26.040 the sell of the home within a period of time into another property, we ended up having to

00:28:30.960 pay a huge amount of tax.

00:28:32.880 You know what I mean?

00:28:33.660 On that home.

00:28:34.680 Right.

00:28:35.160 So it, it actually served us to, to turn it around fairly quickly and make an another,

00:28:41.780 another purchase.

00:28:44.240 Yeah.

00:28:44.800 And it really just talking about, yeah, it's called a 1031 exchange is what it's called.

00:28:49.360 And, and really what it is, is usually on a home, if you own the property for, and please

00:28:55.620 do not quote me on this guys, because these rules, again, they may change, but if you own

00:29:00.880 the property for a certain amount of time, let's say two years, for example, then you're

00:29:06.940 able to, you don't have to roll that money over.

00:29:10.100 Um, if you, if it's before two years, again, don't quote me on this, then you have to roll

00:29:17.280 that money over or you'll end up facing taxation on it.

00:29:21.660 And that's typically on a tap capital gains scenario.

00:29:24.980 I think there is a nuance there, Ryan, where if it's a second property, then, then that

00:29:32.000 exchange, that taxation comes into play.

00:29:34.220 Cause we, we had a house for probably over 10 years, but it was a second property.

00:29:40.420 And we, we ended up getting taxed on that if we didn't exchange it.

00:29:44.820 Yeah.

00:29:46.260 Yeah.

00:29:46.920 It, it has to be, I'm pretty sure that it's a personal residence.

00:29:51.960 I, again, look at it, but it's important to know that you might have to face some tax

00:29:57.560 consequences on this money.

00:29:58.900 So I would talk with your CPA on that one.

00:30:02.440 If it, if it were me, if I was looking at purchasing a, cause he asked me if it was me,

00:30:07.260 if it was me and my situation, I would look at, if I was going to purchase a home within

00:30:13.300 a two-year timeframe, I would be more apt to put that money aside and have it be safe,

00:30:20.460 have it be liquid and available taxed every year, just so it's available.

00:30:25.780 Um, that that's what I would personally do, especially if my debt and my debt load is zero.

00:30:31.460 So if I don't have any debt, then there's nothing really to pay off.

00:30:36.160 If I have debt, that's at two to 3%, I'm probably not going to hammer that down.

00:30:40.020 If it's at 18 to 20%, I might take some of that money and hammer that down and take whatever

00:30:45.120 my cashflow that I freed up from paying that debt off.

00:30:48.360 And I would, I would put that into, uh, in back into that fund that we'll call it your,

00:30:54.240 your down payment fund, we'll call it.

00:30:57.200 Um, I mean, there's just, there's so many different factors in here, but for me, if it

00:31:01.740 was under two years, I'd be more likely to have it safe and liquid, meaning that it's going

00:31:06.240 to be taxed every year and it's not going to get a very good rate of return, but that's

00:31:10.620 okay because that's not the purpose of it.

00:31:12.560 We obviously don't know the reason why Peter would want to rent for a period of time, right?

00:31:17.540 And purchase in a couple of years.

00:31:19.200 Um, I'm just curious, would you intentionally wait to, for a purchase or would you be buying

00:31:27.400 a home now?

00:31:27.960 Why would you, what, what are the factors by which you would say, I'm not going to, I'm

00:31:32.440 going to do a purchase two years from now and I, and I specifically, right?

00:31:36.900 Because I've been in the scenario where, you know, we, we've wanted to purchase and we're

00:31:41.980 like, oh, should we wait?

00:31:43.780 Uh, luckily we didn't, right?

00:31:45.540 Because if I did wait, uh, costs end up being way higher than they were when we purchased,

00:31:51.820 right?

00:31:52.100 And I was kind of guessing like, oh, the market's gonna, you know what I mean?

00:31:56.440 Have a downturn and, and, and, and, and it didn't.

00:32:00.220 So what, what variables are you considering, right?

00:32:03.040 On whether you rent purchase later versus purchase now?

00:32:06.440 Yeah.

00:32:06.920 Well, number one is if you're in a bad financial situation, let's say your employment is not

00:32:12.160 real stable, then probably don't buy a home right now.

00:32:15.500 That would be, that would be one reason.

00:32:17.220 Yeah.

00:32:17.840 Um, the other reason that people do is they're, they're timing the market and I'm not a big

00:32:22.420 fan of timing any market because we just don't know.

00:32:26.280 So, and the other thing that people don't consider, and this pertains more to the stock

00:32:30.580 market than, than real estate, but people always say, oh, this stock is underpriced.

00:32:37.400 Okay.

00:32:38.440 If you don't think that 300 billion people, or excuse me, 8 billion, 300 million people in

00:32:45.840 this country and, and all of their spending decisions and all of their income and all of

00:32:52.640 the inflationary factors have been calculated by these people that are largely predicting

00:32:58.580 what markets are going to do.

00:33:00.500 If you don't think that information has already been priced into the cost of your investment, 1.00

00:33:06.700 I'm sorry, you're an idiot. 1.00

00:33:08.440 You just don't know more than the collective you, in this case, you just don't. 1.00

00:33:14.700 And so everything that you know about what the stock market's going to do, or the real

00:33:19.680 estate market's going to do, everybody else already has that information too.

00:33:24.240 And it's been priced into it.

00:33:26.300 Now, could there be something that comes up that people are unaware of that would either

00:33:31.000 cause the market to crash or spike?

00:33:33.480 Yeah, absolutely.

00:33:34.620 But you don't even know what that is, let alone everybody else.

00:33:38.160 So what I suggest, again, we're talking about two different things now, stock market and

00:33:43.180 real estate in the stock market, I invest dollar cost averaging.

00:33:48.040 So what that is, is that on a monthly basis or weekly basis, or however often you can, you're

00:33:53.520 going to put money into a low turnover, highly diversified, low cost portfolio indexes pretty

00:34:01.940 much.

00:34:02.220 And I'm not going to get into the specifics, but you're going to invest in indexes.

00:34:06.220 And then you're going to do that every single month until you're retired, whether the price

00:34:13.160 is high or the price is low, because those people who do dollar cost averaging end up

00:34:17.780 paying less per share than those individuals who are notorious for trying to time and pick

00:34:23.360 the market.

00:34:24.160 They'll pick stocks, they'll time when to put in, time when to pull out, just put it into

00:34:28.580 low cost, low turnover, highly diversified portfolios every month and leave it alone.

00:34:35.480 Now on the real estate market, be prudent, buy a house when it's prudent.

00:34:43.620 And that has more to do with your own personal economy than it does the outside economy.

00:34:49.720 So if you're in a position where you can put 20% down to avoid primary mortgage insurance,

00:34:54.400 property mortgage insurance.

00:34:55.560 Um, if you're in the position to handle very easily, I would say no more than 20% of your

00:35:03.800 income on a monthly basis and handling that mortgage payment, then yeah, maybe you're buying

00:35:09.480 at the peak, maybe you're buying in a dip, but it's prudent regardless.

00:35:13.560 You don't want to gamble with this stuff.

00:35:15.500 So make a prudent decision that has more to do with your economic situation than the market,

00:35:21.300 not the external one.

00:35:22.040 Yeah.

00:35:23.120 Yeah.

00:35:23.420 I love that.

00:35:24.320 All right, Zach, dude, you're breaking the rules here.

00:35:26.580 I asked like 20 questions on here.

00:35:28.800 So I'm going to go with, um, let's go a little bit more.

00:35:32.860 One of his questions around budgeting, um, and, and what's the psychology maybe a little

00:35:39.280 bit around this.

00:35:39.980 So this is from Zach, uh, Holsinger.

00:35:42.520 Why don't we focus more on budgeting?

00:35:44.840 Money issues are leading cause of divorce and can cause major problems in life.

00:35:49.020 If most of us are a biblical man, why are we not teaching and borrow is a slave to the 1.00

00:35:55.740 leader?

00:35:56.040 How much does an average car end up costing at the end of a 60 month alone, 25 K at 70%

00:36:02.560 as an example.

00:36:04.980 Okay.

00:36:05.420 So why, so why are we not?

00:36:07.520 Why don't we budget?

00:36:08.100 I wonder if he's asking about spending iron council or general.

00:36:11.740 Yeah.

00:36:12.040 I think he's looking for general.

00:36:13.620 Right.

00:36:13.940 And I think we go general because of who's listening, right?

00:36:16.680 What, what, why do we keep overspending?

00:36:18.780 Why aren't we budgeting?

00:36:20.380 What's, what's the psychology here?

00:36:22.860 Well, I mean, number one, it's just not sexy.

00:36:25.840 It's not fun to talk about.

00:36:27.300 So it's boring.

00:36:28.820 And because it's boring, people don't really want to address it.

00:36:32.740 And they'll definitely address it when they get themselves into a bad situation.

00:36:36.100 It's like relationships.

00:36:37.320 Nobody wants to work on the relationship until they need to work on the relationship.

00:36:40.900 You know, and, and that's, that's the biggest problem, but also it's not taught in schools.

00:36:47.100 And if it is taught in schools, it's not taught by people who are financially successful.

00:36:51.360 And I'm not saying that's an indictment against our school teachers.

00:36:54.460 It's not, but they're not notorious for making a lot of money and they're not notorious for

00:36:58.940 going out and starting businesses and potentially being bankrupt and having people who work for you

00:37:05.820 and your, your work, they're reliant on your work.

00:37:09.620 You're putting food on other people's table.

00:37:11.720 You're having to worry about how to reduce your tax liability.

00:37:15.040 All of these questions are not things that generally a school teacher, unless they have

00:37:20.160 a business or their spouse is in business that they just don't have to deal with it.

00:37:25.220 So, so you have school teachers, if they're doing it at all, are teaching students things

00:37:30.640 that aren't really going to make you a lot of money.

00:37:33.980 And I know that because those people don't make a lot of money.

00:37:36.540 So it would be like asking somebody who's severely obese to train you to, uh, do a bodybuilding

00:37:45.660 competition.

00:37:47.820 It's just not a good thing to do.

00:37:50.680 And so the advice is very surface level.

00:37:53.740 It's very textbook, but it doesn't get into the nuances.

00:37:57.080 And the other, the other consideration is that money is more than just math, because if it was

00:38:05.220 just math, then everybody would be independently wealthy because we all know two plus two equals

00:38:10.440 four.

00:38:12.420 So there's something greater going on here.

00:38:15.240 And you know what it is?

00:38:16.720 It's your emotional state.

00:38:19.580 Money is highly emotional.

00:38:21.020 Consider, for example, the fact that, um, probably just based on the statistics that your wife is

00:38:28.820 more likely to go make purchases when she is anxious because having things, including nesting

00:38:38.360 and buying those things, alleviates some of that for her.

00:38:42.760 Well, that's not a, that's not a prudent decision.

00:38:45.340 A lot of the times those are emotionally charged decisions.

00:38:48.800 And if that's the case, then there's a lot more behind budgeting than what is

00:38:54.620 two plus two, you know, I'm bringing in 10,000 a month and I'm spending 11,000.

00:39:01.440 It doesn't take a math wizard to know that you're a thousand dollars in the hole every month,

00:39:06.180 which is why your credit card is going up not by a thousand, but by 12, 13, 1400,

00:39:11.180 because you're not calculating the interest to service that debt.

00:39:15.340 So unless we start bringing people in who actually know what they're doing and figure

00:39:21.080 out a way to make this more enticing and enthusiastic for people before they get themselves into

00:39:26.560 a bind, we're probably not going to see that change.

00:39:29.460 There's one other factor here and it's represented by an infinite number of organizations and companies

00:39:35.640 and the government is you're just enticed and bombarded every single day to be a consumer.

00:39:42.900 I mean, I went to the gas station this morning and I got myself a Red Bull and I got my youngest

00:39:50.240 son a donut and I do that just about every day.

00:39:54.380 And I spent, I think it was $6 and I do that every day.

00:39:59.980 So what's that?

00:40:00.860 I got $42.

00:40:02.280 So let's just say $50 a week, $200 a month, $2,400 a year in Red Bull and donuts.

00:40:10.520 Wild.

00:40:12.280 So a hundred years ago, was I enticed to go down to the Maverick and go get a donut and a Red Bull?

00:40:19.380 No, because it didn't exist.

00:40:20.800 So the environment that we live in is amazing because I can go get a Red Bull and a donut

00:40:27.280 or I can go get a new mattress and if I need a new mattress or I can just go to the grocery store

00:40:34.400 and I can get food.

00:40:35.820 But the problem is when I go to the grocery store to get food, I get food, but then I get everything else

00:40:41.380 that's flashing at me and pretty packaging and it's hard.

00:40:48.140 It's really hard to fight unless you have a strong purpose and reason for keeping yourself in financial check.

00:40:54.220 It's the same thing with food.

00:40:56.260 You know, if you want people all the time, why am I not losing weight?

00:40:59.240 Well, let's look at your diet.

00:41:01.000 Okay.

00:41:01.280 You had three meals.

00:41:02.520 Those three meals equaled, let's say 1800 calories.

00:41:05.520 And you're like, yeah, 1800.

00:41:07.240 That's pretty good.

00:41:08.100 I'm like, yeah, but what about that pack of Skittles that you got?

00:41:11.380 At lunch.

00:41:12.260 And what about the donut that your employees brought?

00:41:16.240 And so you didn't have the eggs and bacon at home.

00:41:18.500 You actually had two donuts at the office because your coworker was celebrating somebody's birthday.

00:41:25.340 Unless you have a really good reason for putting the donut down and not getting the Skittles.

00:41:31.120 I mean, you could blow an 1800 calorie diet like that on a pack of Skittles.

00:41:37.120 Now, all of a sudden you're at 2200.

00:41:38.660 Do that twice.

00:41:39.300 You're at 25, 2600.

00:41:40.700 It doesn't take long.

00:41:42.540 Yeah.

00:41:42.920 I mean, it's instant gratification, right?

00:41:46.620 And when we look at one of the questions, you know, Adam Lewis had around helping our children, you know, towards this idea of saving and investing, I think at the center of it, it's just not learning delayed gratification.

00:41:59.180 This idea that this thing I want right now, I'm not going to do it for some delayed benefit of something else, such as saving my money or not acting on immediate need or desire.

00:42:13.200 And we could use that analogy and just apply it to virtually everything.

00:42:17.960 The consumption of social media, the consumption of social media, entertainment, spending money.

00:42:22.540 I mean, let's be frank, right?

00:42:23.540 And you, you, you talked about this in the emotional side of this.

00:42:26.120 It's like buying things is an emotional reaction.

00:42:30.920 People do that to feel better about their day, just like they watch TV to try to feel better about their circumstance.

00:42:37.780 They're all forms of avoidance of maybe difficulty and or distraction from other scenarios or stresses.

00:42:46.120 It's, it's, it's wild.

00:42:49.180 Yeah.

00:42:49.800 Yeah.

00:42:50.340 I mean, it, it really is.

00:42:52.140 Um, I don't, what, what was the second question about the car payment or something?

00:42:57.920 Yeah.

00:42:58.320 He was just using an example, right?

00:43:00.480 How, you know, we don't budget.

00:43:02.400 And, and the example is like, how much money do we end up paying for a car?

00:43:06.720 That's a 60 month loan.

00:43:09.860 Yeah.

00:43:10.300 Well, I mean, on a $25,000 vehicle, it'd probably be somewhere around $30,000.

00:43:15.240 Yeah.

00:43:16.220 For that $25,000 vehicle.

00:43:17.880 I don't know what the payment on something like that would be, but there's also car loans that'll go for, he's, he said 60 months.

00:43:23.060 That's five years.

00:43:23.840 It could also be seven, eight, nine, 10 years on a car loan.

00:43:27.820 When the average person replaces their car just over four years, I believe four and a half years.

00:43:32.640 And you're going to put that thing on twice a long alone.

00:43:36.120 Man.

00:43:37.160 Yeah.

00:43:37.400 That's crazy.

00:43:38.680 Yeah.

00:43:39.120 Get upside down.

00:43:40.500 Simon Pratt, you know, kind of another question on the, on the social side of this.

00:43:44.960 It says that my wife's high school reunion in rural Pennsylvania, I heard a common belief that wealth can only be gained through dishonesty and exploitation.

00:43:54.700 How do you respond to that type of mindset?

00:43:58.100 Oh, I would just ask question.

00:43:59.880 Number one, ask yourself, do I need to defend financial prosperity?

00:44:05.320 Yeah.

00:44:05.800 Cause that might just be an argument I'm not even interested in getting into.

00:44:09.060 So that that's number one.

00:44:10.480 Yeah.

00:44:10.760 If somebody really believes that the only way to build wealth is by taking advantage of others, that's a person that's been hurt.

00:44:17.340 That's a person who learned to be a pessimist about it.

00:44:19.520 And that's a person who's probably going to be broke. 0.93

00:44:22.120 So unless I have to, I don't really feel the need to get into debates with people about dumb things that they know nothing about.

00:44:30.020 But if you do have to get into it with people, what I would say is, well, what is wealth?

00:44:35.520 What does that mean to you?

00:44:37.560 Yeah.

00:44:37.820 And they might see, they might, I don't know, whatever they come up with and say, well, would you, let's say that it's a, it's a having a million dollars as well.

00:44:45.280 Okay.

00:44:46.780 Would you like to have a million dollars?

00:44:49.380 Well, yeah, I'd love to have a million dollars. 0.71

00:44:51.000 Well, you can't though ever, ever, because if you do, then you just took advantage of everybody else and you're an evil person.

00:45:00.340 Well, well, no, I mean, no, yeah, I get your point.

00:45:03.780 I'm just saying like other people.

00:45:05.620 Yeah.

00:45:06.040 Got it.

00:45:06.500 So you're just putting that on other people, not because you know it to be true, but just because you're using it as an excuse to be broke.

00:45:16.180 And that's what people are doing.

00:45:17.840 When they tell you in one form or the other that something is unobtainable, what they're really saying is, I don't have that, therefore, it must not be possible.

00:45:26.700 Yeah.

00:45:27.940 Or that it's done through devious, deceitful methods.

00:45:31.700 Well, I don't want to be that, so that's why I'm broke.

00:45:33.780 Really, the reason you're broke is because you're a good person.

00:45:38.600 That's what you're saying?

00:45:40.440 So then are all good people broke?

00:45:42.860 This breaks down really quickly when you start asking questions and you just kind of sift through the nuance a little bit, not being accusatory necessarily, but a couple of really well-formulated questions completely dismantles this argument.

00:45:59.220 Yeah.

00:45:59.460 And then another question would be, well, let's say, Kip, you did have that kind of money.

00:46:05.160 What kind of person would you be with that money? 0.85

00:46:07.100 And they'd say, well, I'd be charitable.

00:46:10.520 I'd maybe help my family pay off some debt.

00:46:12.920 Maybe I'd stop working and build this other business or this other movement or this 501c3, or I'd give back to people in poverty.

00:46:22.420 I'm like, that's awesome.

00:46:23.300 Then you should want to be rich.

00:46:24.940 How can we get you to that point?

00:46:26.260 Because what you're saying is so good, what we need is more people being wealthy, like you.

00:46:33.540 So how do we make that work?

00:46:35.500 And then enlist them in the cause.

00:46:38.120 Yeah, I love that.

00:46:39.840 Tyler Morgan, have you ever borrowed against property equity, residential or rental, or market investment accounts to make a down payment on an investment opportunity?

00:46:50.600 Not talking about guys using the HELOC to somehow pay down their mortgage faster.

00:46:56.260 Yeah, a HELOC is the home equity line of credit.

00:47:00.900 And I can't remember, but there was some gimmicks that you'd take out money out of your home equity line of credit and then pay it back to yourself with interest, which means you're just paying more.

00:47:10.220 So you could just pay more to begin with.

00:47:11.600 There's a lot of little hacky things like that.

00:47:13.740 Yeah.

00:47:14.920 I've never directly done that, but you got to consider that money is fungible.

00:47:18.500 So, for example, if I have an investment property, excuse me, an investment property, and let's say I could put an additional $100,000 towards that investment property, but I don't.

00:47:35.080 And I keep it in my bank account or I keep it somewhere where I can access it.

00:47:40.100 And then a business opportunity comes in and I take that $100,000 and I invest in that business opportunity.

00:47:47.080 I'm kind of doing the same thing because I could have taken that $100,000 and applied it towards the investment property.

00:47:54.000 So the reason I bring that up is when you're investing, I think the power of leverage is really important.

00:48:02.000 It's so amazing.

00:48:03.840 There was another question about rental income, I think.

00:48:07.320 Somebody had asked earlier and we can talk a little bit about that.

00:48:10.560 But yeah, when I'm investing, it's nice because there's leveraging opportunities there.

00:48:15.680 So if I buy a piece of property, for example, let's say a rental house, maybe that house is, let's say it's $400,000 and I put down, maybe I put $40,000 or I put $80,000 into that $400,000 property.

00:48:31.960 Well, somebody else now is paying that mortgage for me and then some.

00:48:35.560 I've got one property that I think my mortgage payment on it, and I think I'm less than 10 years left on it, where it's, I want to say it's right around $1,100, that's principal, interest, taxes, and insurance, right around $1,100.

00:48:51.480 And my rental payment on that for the tenants is about $1,700.

00:48:57.440 So not only is somebody else paying the mortgage for me, I'm also pocketing $500 or so, whatever the exact number is, $600,000 every single month.

00:49:13.280 That's the power of leverage is I don't need $400,000 to do it.

00:49:17.660 I only need $80,000 and I'm using other people's money to make it work.

00:49:20.320 And everybody wins in that scenario.

00:49:21.640 The person who's paying me the rent, I win.

00:49:24.000 The bank wins because they're collecting interest.

00:49:26.160 It's a good thing all around.

00:49:28.720 Yeah, I love it.

00:49:29.580 The question that was around rental was, do you think real estate rental properties have done correctly are a better investment than a 401k?

00:49:44.820 Yeah, probably.

00:49:46.160 Because again, if I were to take that scenario, $80,000 into a mortgage or into, yeah, into a mortgage on a $400,000 loan, the cash flow on that alone is going to, for $80,000, I mean a 10% rate of return, which is significant.

00:50:07.900 If I were to get that year in, if I were to get that year in, year out, that's not to consider cost and taxes and everything else, would be $8,000 a year.

00:50:14.360 I mean, on a mortgage, for a $400,000 mortgage, what's the payment?

00:50:20.380 I don't know, let's say $2,200.

00:50:23.920 Let's say $2,000 on the easy side, $2,000, and you rent it out.

00:50:28.920 Now, all of a sudden, on $80,000, you're making, and I'm not calculating fees into this, so just, I know there's some nuance, but you're making, on $80,000, you're making $24,000 a year.

00:50:40.040 You're not making $8,000, you're making $24,000.

00:50:44.020 That seems like a significantly better rate of return than, that's to say, if you got 10% year in and year out on your 401k.

00:50:53.440 I know there's tax ramifications and there's fees.

00:50:56.460 I know that, I'm just giving you an example, that there's got to be a lot of taxes and a lot of interest to turn $24,000 into $8,000.

00:51:05.640 And it's probably more like $6,000, if we're being honest.

00:51:09.720 Yeah.

00:51:10.800 Tony Urzi, how to decide when is the right time to sell real estate investment property versus holding on to it for future growth?

00:51:19.300 What conditions do you look for in local market and timing to best value?

00:51:24.000 I don't, I don't do that.

00:51:26.460 You might talk with somebody else who's an actual real estate investor that might, maybe there's a course available or a program that might tell you how to do that.

00:51:36.560 I've never done that.

00:51:37.500 So anything that I were to tell you, I think would be lying, misguided at best.

00:51:43.900 Your real estate investments are just long-term, right?

00:51:46.540 So that's the idea.

00:51:48.180 You're not planning on flipping things and looking to time things.

00:51:52.040 Again, the most important thing is that people make prudent financial decisions.

00:51:57.140 Yeah.

00:51:57.440 And then if they're prudent, I don't have to worry about timing the market.

00:52:01.580 You know, another one is crypto.

00:52:03.780 You know, I own, I own some, some crypto and I don't check it often because I just put money in there and I just leave it because I, I, I'm in the position where I can do that.

00:52:14.380 And so I put money in there and I just leave it.

00:52:16.620 And I pulled it up the other day.

00:52:17.420 I'm like, oh my goodness, I was blown away with what the value of it, but I don't look at it because I'm making prudent financial decisions.

00:52:24.460 And so I don't need to time it and say, oh, crypto's up, got to sell, crypto's down, I got to buy.

00:52:29.300 Like, I don't, I don't do that.

00:52:30.920 I just dollar cost average it out.

00:52:32.660 I make prudent financial decisions and let the chips fall where they may.

00:52:36.220 Now there is some room for some, a little bit more aggressive investing.

00:52:43.260 Maybe it's a business opportunity or a startup or there's all sorts of things that come up.

00:52:48.640 And if you're in the position, then you can do that.

00:52:50.240 But I'd much rather just be prudent with 80% of my finances and the other 20s to play with.

00:52:56.320 But as far as timing the market of when to sell, when to buy, again, is it prudent for you right now?

00:53:01.940 And what factors go into that?

00:53:03.460 Not external factors, but hey, is there a great opportunity for us to be closer to our kids?

00:53:10.960 And so we're going to move.

00:53:12.360 Well, that's a good reason to move.

00:53:15.460 Or, hey, we don't like this property anymore.

00:53:18.140 You know, maybe we're empty nesters and we're going to downgrade a little bit to a smaller place.

00:53:24.000 That's a legitimate, it's a legitimate reason to do that.

00:53:27.480 But it has more to do with you than, than the market itself.

00:53:30.460 Yeah.

00:53:31.180 Yeah.

00:53:31.420 I love that distinction.

00:53:33.080 One more question.

00:53:34.180 You good with one more?

00:53:35.160 Okay.

00:53:35.720 All right. 0.99

00:53:36.180 Gavin Misserly, is the effort to execute on a backdoor Roth worth the pain in the ass? 1.00

00:53:45.320 LOL. 0.99

00:53:46.040 I've read up on it some.

00:53:48.040 It seems like it's not that bad, but is it worth it?

00:53:51.540 Backdoor Roth.

00:53:52.420 I don't even know what a backdoor Roth is.

00:53:54.760 Yeah.

00:53:55.420 A back, yeah, absolutely.

00:53:57.200 It's worth it.

00:53:58.180 Of course.

00:53:58.680 Can you explain what a backdoor, what, what, why, why it's a way backdoor?

00:54:03.360 I obviously know what a Roth is, but what does he mean by a backdoor Roth?

00:54:07.840 Well, okay.

00:54:08.560 But let's talk about what a Roth is just in case somebody doesn't know what it is.

00:54:11.960 So a Roth IRA, you put money in after you've already paid taxes on it.

00:54:16.120 So if I make $10,000 and I paid 20% taxes, then I'm going to put, this is not exactly how it works.

00:54:23.740 It's just proving the point.

00:54:24.760 But if I make $10,000 and I'm paying 20% on it, then I get to invest $8,000 into a Roth IRA.

00:54:31.980 Now, all of that money as it's growing in the investment is now, the taxes on it is now deferred.

00:54:38.220 And if I pull it out under proper constraints and proper guidelines, then I can use that money tax-free.

00:54:46.540 Not only the money I've put in, because I've already paid taxes on it, but the growth on it is now tax-free.

00:54:51.700 So that's, that's cool.

00:54:53.240 The problem is, is there's rules in place that say, if you make over a certain amount of money, you are not eligible for a Roth IRA.

00:55:00.240 Yeah.

00:55:00.460 For instance, like a, like 200 K, I think even, I don't even know what it is.

00:55:05.140 Again, you're limited on what you can invest.

00:55:07.200 Yeah.

00:55:07.360 Yeah.

00:55:08.060 I don't know what it, what it is.

00:55:09.740 So a lot of high income earners cannot put money into a Roth IRA.

00:55:14.080 So a backdoor Roth IRA is putting your money into a traditional IRA.

00:55:20.380 And unlike a Roth IRA, you can deduct your taxes when you put, when you put money into traditional IRA.

00:55:28.040 So if I make $10,000, I don't have to pay taxes on that 10,000.

00:55:32.220 So I can put 10,000 into it, not just 8,000.

00:55:35.420 Got it.

00:55:35.980 And now all that money grows tax deferred.

00:55:38.400 Now, when I pull it out, everything, including the growth is then taxed at my, whatever my tax bracket is at the time.

00:55:45.720 Now, some people will say, well, that's good because you're going to be in a lower tax bracket because you're going to be retired.

00:55:49.640 I don't know about you.

00:55:50.760 My goal is not to be less financially prosperous in retirement than more, but that's a valid, you can make a case for that.

00:55:58.300 Yeah.

00:55:58.400 So what a backdoor Roth IRA is, you put your money into a traditional IRA with after-tax dollars.

00:56:06.720 That's the key.

00:56:08.060 So you don't deduct it because if you deduct it, there's nothing you can do.

00:56:12.080 You put it in with after-tax dollars, meaning you've already been taxed, so you put the 8,000 in, and then you immediately roll it over to a Roth IRA.

00:56:21.100 And now everything moving forward is tax-free, including the gains in retirement.

00:56:29.400 Interesting.

00:56:30.180 So yeah, it's worth it.

00:56:31.580 You know, there was another question I saw on Facebook about the 401k.

00:56:34.720 Somebody said that they contribute to a Roth 401k, or yes, a Roth 401k, and that their company matches, but the matching is taxed as a traditional IRA, and the individual said, is that worth doing?

00:56:51.100 Of course it's worth doing.

00:56:52.720 Now, people will say, well, you have to pay taxes.

00:56:54.840 Yeah, the company is giving you free money.

00:56:57.140 Yeah, free money, any type of match.

00:56:59.300 So you have to pay taxes in retirement on the money that –

00:57:04.240 That was free.

00:57:05.200 They're contributing.

00:57:06.480 Yeah.

00:57:07.200 So yes, of course you should absolutely – and here's what I usually suggest for people who maybe they have a traditional 401k available at work is let's say they're making $100,000 a year, and their company is going to match 4% of whatever they put into their traditional 401k.

00:57:28.340 What I would say is invest the $4,000.

00:57:31.800 That's 4% of $100,000.

00:57:33.140 So invest your own money, $4,000, and then let the company match their $4,000.

00:57:39.340 But let's say you wanted to save 10% of your income.

00:57:42.900 Don't put the extra $6,000 into the traditional.

00:57:46.620 Take the $6,000 and put it into a Roth IRA over here.

00:57:51.300 So you don't typically put in more into a traditional IRA than what the company is matching because there's better options generally outside of the company 401k option.

00:58:05.080 Yeah, you typically want to put in the amount that gets you to match.

00:58:08.400 Yeah, and even if it's 50%, there's still a case to be made for that because sometimes companies will say, well, we'll invest – we'll match 50% of your contributions up to $5,000.

00:58:21.200 Okay, put the $5,000 in, get the $2,500, and then invest the rest somewhere else.

00:58:26.560 Yeah, yeah, got it.

00:58:28.320 Cool.

00:58:29.020 Those are fun.

00:58:29.640 So much to this.

00:58:30.880 Yeah, and there's so many nuance.

00:58:32.840 Like even one of the questions around like real estate and when it acts it, it's like, well, also, I mean, is it possible to make into real estate investment that is a bad investment?

00:58:43.060 Yeah, maybe.

00:58:43.880 Like maybe you buy some land in a really bad place and who knows what, right?

00:58:48.080 Like there's so many little variables.

00:58:50.080 Or fixer-uppers.

00:58:51.160 Like I've seen people buy fixer-uppers, maybe $150,000.

00:58:56.160 They get into it.

00:58:57.200 They're like, oh, my gosh.

00:58:58.680 I thought this was going to cost $50,000, and now we're $150,000 in repairs, and that $100,000 investment is now worth $250,000.

00:59:06.620 It's like, are you going to get that much out of it?

00:59:09.120 Yeah, and even new builds, right?

00:59:11.380 Like, I mean, when we built one of our houses, like that costs us way more than what we planned, right?

00:59:18.960 So it's like, would we have done it the same if we knew the upfront cost, right?

00:59:23.740 That's why it's always important to make prudent financial decisions based on your own personal economy, not the external economy.

00:59:32.460 Yeah.

00:59:32.880 Yeah, I think that's my biggest takeaway today, actually, based upon all of your comments.

00:59:36.800 It's just prudence in your situation, not necessarily reacting, because you see that all the time.

00:59:43.820 People get you, oh, this thing's out here, right?

00:59:46.200 It's like this lost opportunity that they feel emotionally driven to act upon, regardless of whether it will tank their personal life or not.

00:59:54.660 And it's like, well, you get all sideways when you start thinking that way.

00:59:58.460 Absolutely.

00:59:59.360 Yeah, got to be careful.

01:00:00.620 Cool.

01:00:01.240 Well, I mean, what's our big calls to action?

01:00:03.300 I mean, I see.

01:00:04.380 I think it's the big thing.

01:00:06.200 It is.

01:00:06.820 Yeah, I mean, the Iron Council is open right now.

01:00:09.280 And this goes back to what I was saying earlier about recognizing problems and filling them.

01:00:15.740 The cool thing about the Iron Council is you don't need to reinvent the wheel.

01:00:19.260 And I would say over 95% of the men who are listening to this want to be surrounded by other good, righteous, capable, assertive, high-producing, high-value men.

01:00:30.800 Yeah.

01:00:31.040 The problem is it's really, really difficult to find.

01:00:34.160 And so a principle of investing is leverage.

01:00:37.600 If I can leverage my resources to produce an even higher rate of return or yield, that's a better thing to do than the one-to-one effort.

01:00:46.700 And the same thing applies here.

01:00:48.440 You can go out and you can find your own friends.

01:00:52.440 You can absolutely do that.

01:00:53.760 And you should do that.

01:00:54.940 Yeah.

01:00:55.260 But it's a one-to-one effort to return ratio.

01:00:59.120 And it's going to take you a lot of time, money, energy, and resources to go out and build a band of brothers with four guys.

01:01:04.960 And it's going to take you years to do.

01:01:07.720 So do that. 0.56

01:01:09.000 I'm not saying don't.

01:01:10.680 Or, and I should say, you can leverage.

01:01:13.360 And what that means is that you tap into a group of already existing, like-minded, strong, ambitious men who are already using programs and tools and resources that are going to produce the results they desire and happens to be the results that you as a man want to produce.

01:01:29.940 And it's not going to take you four years.

01:01:32.360 And you don't need to go have a bunch of awkward conversations.

01:01:35.480 And you don't need to go through a bunch of guys who aren't actually going to be good friends or good allies of you.

01:01:41.060 It's already done.

01:01:42.720 You don't have to bet.

01:01:43.520 It's already done.

01:01:44.480 Yeah.

01:01:44.880 So that's the Iron Council.

01:01:47.000 And the cool thing about what we're doing, this iteration, and we've never done it before, is that every man who joins is going to get partnered and paired up with an Iron Council coach.

01:01:55.920 That's a program, Kip, that you are heading up.

01:01:58.480 And every man that comes into Iron Council is going to get partnered up with a coach to walk them through what they need to learn in the course of about 30 days to get them up to speed and producing results, paying off debt, losing weight, rekindling relationships,

01:02:14.060 having deeper relationships with their children, starting businesses, asking for a promotion, looking better, feeling better about themselves.

01:02:21.980 That's what the coach is designed to do.

01:02:25.020 So we've got about 10, I think, guys who signed up before we even started this as a pilot run.

01:02:31.620 And all of these guys are having significant, significant success inside of this transition into Iron Council.

01:02:37.820 So if you want to do that, you can go to orderofman.com slash Iron Council and get signed up.

01:02:42.820 If you want to know more about how the coaching stuff works and you're ready for a coach, then email me, ryan at orderofman.com.

01:02:51.620 And in the subject line, just put coach or coaching or whatever, Iron Council, I don't care.

01:02:56.040 And then I'll respond back to you.

01:02:57.720 I'll answer your questions.

01:02:58.660 I'll give you some information and we'll get you enlisted in the brotherhood.

01:03:02.780 It's that simple.

01:03:03.800 And we'll get you paired up with a coach. 0.99

01:03:05.180 And for the next 30 days, you're going to work.

01:03:07.200 We're going to put you to work.

01:03:08.360 We're going to hold you accountable.

01:03:09.340 And we're going to help you get results.

01:03:10.660 Yeah, I love it.

01:03:12.540 And you can also band with us by connecting with Mr. Mickler on the socials, X and Instagram, at Ryan Mickler.

01:03:19.380 And, of course, we have our Facebook group, facebook.com slash group slash order of man as well to stay connected in all things order of man.

01:03:29.380 Love it, man.

01:03:30.460 Great calls.

01:03:31.240 Good questions.

01:03:31.460 I think we have some more for next week.

01:03:36.140 If they're that varied in what we talked about this week, maybe we'll address those or we'll dabble those in with other questions.

01:03:42.560 But I like what we're doing where it's topical driven.

01:03:46.880 So we talked about the last couple of weeks, productivity, daily planning, goal setting, maximum efficiency throughout your day.

01:03:53.100 And this week we talked all things money.

01:03:55.320 I like this.

01:03:56.300 And I like this format's good.

01:03:57.700 And it keeps us on track and on point.

01:03:59.500 And I think it makes it a more meaningful resource for the guys who are tuning in.

01:04:03.340 So I think we'll continue with this for the time being.

01:04:07.660 Excellent.

01:04:08.200 Sounds good, sir.

01:04:09.120 Cool.

01:04:09.940 Kip, I appreciate you, man.

01:04:10.880 And men, I appreciate you guys.

01:04:12.400 Again, order of man dot com slash iron council.

01:04:14.240 We are currently open or you can type coach or coaching in the subject line and send me an email at Ryan at order of man dot com.

01:04:22.500 All right, guys.

01:04:22.960 Appreciate you all.

01:04:23.920 Let's go out there.

01:04:24.320 Take action and become a man we are meant to be.

01:04:31.000 Thank you for listening to the order of man podcast.

01:04:33.860 You're ready to take charge of your life and be more of the man you were meant to be.

01:04:38.000 We invite you to join the order at order of man dot com.

01:04:44.240 We invite you to join the order of man dot com.

Order of Man - September 17, 2025

What the Successful Know About Wealth, When to Invest, Why Own Rentals ｜ ASK ME ANYTHING

Episode Stats

Summary

Transcript

Order of Man - September 17, 2025

What the Successful Know About Wealth, When to Invest, Why&#xA0;Own&#xA0;Rentals ｜ ASK ME ANYTHING

Episode Stats

Summary

Transcript

What the Successful Know About Wealth, When to Invest, Why Own Rentals ｜ ASK ME ANYTHING