Valuetainment

00:00:00.000 It's great to have you guys on. Get your paper and pen ready. I'd probably say we've put 400 hours

00:00:06.420 of research into today's webinar. You're going to want to get the webinar today. We'll give it,

00:00:12.240 we'll give access to people that stick around till the very end. There's going to be a bunch

00:00:15.840 of different things you'll get. We're going to cover a lot of different families. I've called

00:00:20.200 multiple state planners, some that I'm dealing with myself, some of state planners that deal

00:00:25.720 with billionaires where they have, you know, 31 families of $13 billion in net worth that we're

00:00:30.880 dealing with my own setup. And, uh, I just can't wait to share this with you. I know we've been

00:00:35.300 getting a lot of commentary on people that want to learn about this at a time like this. So let's

00:00:39.780 get right into it. Look, if you follow by Tame's content, I know a few different things about you.

00:00:43.420 Number one, you work very hard for your money. Number two, you're an entrepreneur. Number three,

00:00:47.320 you're an intrapreneur. Number four, you want to constantly figure out ways to improve. And when

00:00:51.400 we see the economy today with the direction inflation is going or the market being as volatile

00:00:55.460 as it is, you got to figure out a way to protect yourself because the value dollar keeps going

00:00:59.960 lower. And that doesn't sit well with me. A long time ago, I decided to invest into gold

00:01:05.340 and precious metals. This is real kilo of gold. I'm holding three kilos of it right here in my hands.

00:01:10.480 One of the ways to go about protecting yourself against what's happening with the market and

00:01:14.800 inflation is to buy silver or gold. And I'm happy to announce that we have decided to partner with

00:01:19.980 Goldco. So give Goldco a call today to learn more about protecting your savings. And as a value

00:01:25.380 retainer viewer, you could get up to $10,000 in free silver. Yes, that's $10,000 in free silver.

00:01:31.880 When it comes down to buying precious metals, reputation matters. That's why I've partnered

00:01:36.440 with Goldco. Call them today at 855-598-2758 or click the link below to learn more about goldco.com.

00:01:44.280 Once again, that's 855-598-2758. Okay. So a few things. Number one, how to get the most out of today's

00:01:52.380 webinar. Number one, close out all your tabs that you have. Take notes. Engage in the chat. You're

00:01:58.620 going to see a lot of commentary in this one here. This is a quote, and you'll see why we're going to

00:02:04.000 talk about Vanderbilt's a lot in today's webinar. He once said, any fool can make a fortune. It takes 0.97

00:02:11.280 a man of brains to hold on to it. We'll see if he was able to maintain to a lot of his fortune in his

00:02:17.440 family. But again, turn off your computers. I mean, turn off your tabs, set your phones aside.

00:02:23.800 This could be one of those types of messages that can get you to think about your family legacy in

00:02:30.260 a complete different way. I remember years ago when I sat there and I said, what kind of a life

00:02:35.940 do you want to build, Pat, when it comes down to generational wealth? I was dating a girl and I

00:02:40.680 was asking myself, would you let your daughter marry you? I was 23 or 24 years old at the time. I said,

00:02:46.160 I wouldn't let your daughter marry a guy like you today. We got to get our act together.

00:02:51.180 And then I started thinking about, you know, trying to adjust to the American culture where,

00:02:56.360 you know, kids do sleepover and all this other stuff. I said, later on in life, when they want

00:03:01.440 to do sleepover, are you comfortable with kids sleeping over other people's house? Are you

00:03:05.960 comfortable later on when your grandfather, which your grandkids wanted to go to your kids

00:03:11.960 in-laws house instead of your house? What are you going to do for them to come to you 1.00

00:03:15.880 one day? What kind of kids do you want to raise? What kind of a family do you want to

00:03:19.480 build? These are thoughts that I had very, very early on when I was coming up to see

00:03:24.520 what was important to me or what wasn't important to me. And I'm sure many of you that are on

00:03:28.940 this webinar, you probably thought about those things as well. I'm probably not alone on that

00:03:32.540 subject. So why this topic? A few different things. Why now? Number one, how I make content.

00:03:38.460 I make content based on whatever I'm learning today or going through today. So if I'm doing

00:03:44.360 a video on how to raise money, I'm raising money or I just raised tens of millions of

00:03:48.220 dollars. If I'm going through selling a company or hiring or firing or investments or anything

00:03:54.360 that I'm teaching you is because I just went through or I'm currently learning because it's

00:04:00.180 a topic that I think about a lot. So how it's evolved. So why generational wealth? I was talking

00:04:07.540 to my kids the other day and it was a very interesting conversation. This is about a month ago,

00:04:11.220 a month and a half ago, because this has been the content that I've been thinking about

00:04:14.740 a lot. We were sitting there and I said, Hey, Tico, Dylan, I got a question for you.

00:04:18.960 They said, what? I said, what happens to daddy's money if he dies? And Tico and Dylan, they both

00:04:25.680 say, well, daddy, the money goes to mommy. I said, okay, you're smart. So I didn't say mommy 0.84

00:04:29.400 and daddy. I said, so what happens if mommy and daddy's die and what should happen with the

00:04:33.560 money? And my oldest said, well, the money should go to me. I'm the oldest. And you see my

00:04:39.020 youngest son. He's like, well, that's not fair. How about me? I should get some of the money.

00:04:43.340 So then Tico and Dylan, they say, well, daddy, I think half of us should go to Tico. Half

00:04:47.900 of us should go to me. And my oldest says, I think that's fair. 50, 50. Then my daughter

00:04:54.000 is eavesdropping in the conversation. She says, well, how about me? I should get some of the

00:04:59.800 money. And you see the brother, it's so interesting while they're going through it. You see the brother

00:05:04.080 say, well, son, we would take care of you. She says, that's not fair. Do I get any money

00:05:08.460 myself? And she's like, well, I think we should probably give some money to her. Then I say,

00:05:13.140 I said, how about Brooklyn, the fourth baby? She's 17 months. Well, daddy, she's too young

00:05:16.940 right now. So what if she's not young later on? Well, we'll take care of it. Should she

00:05:20.240 get some of the money? I think she should. And then eventually I said, well, what if one

00:05:23.700 of you guys decides to do bad things in your life? You go to jail, you do drugs, you do

00:05:27.380 alcohol and you over, you're not responsible with money. You're making a mess with your life.

00:05:31.740 You're not setting a good example. And you see all of them say, I don't think that kid

00:05:36.820 should get anything. And I said, interesting that you guys are saying it now, because that's

00:05:42.140 what's in the trust where you have to make certain decisions the proper way or else you're not going

00:05:47.760 to be participating in any of that stuff. And the reason why I'm saying this is because if you do

00:05:52.040 the generational wealth the right way, not only can you keep your family closer, if you don't do it

00:05:57.660 the right way, there's so much infighting that they don't want to be around each other. And you're going

00:06:02.560 to see some of the families, those that did it right and kept the families together and those

00:06:07.200 that didn't do it right. So some of the things that we'll be covering today is a few different

00:06:14.540 things. We're going to talk about six components of generational wealth and how these guys did it.

00:06:19.860 The generational wealth cycle, how generational wealth is made, how generational wealth is lost,

00:06:25.400 five generational wealth killers, 14 wealth creating habits, and 11 rules of investing.

00:06:32.420 So get your papers and pens out. We're going to go through this and we're going to spend probably

00:06:36.240 another hour or about hour and 15 minutes together. So let's get right into it. Who are we going to

00:06:42.560 learn from? This is the Medici family. If you haven't heard about the Medici family, there's a lot to

00:06:47.380 learn from this family. And then we're going to learn from the Carnegies. We'll learn from the 1.00

00:06:51.680 Vanderbilt family. We will learn from the Ford family. And then we'll also cover a little bit

00:06:56.820 of Rothschild dynasty, obviously Rockefellers. And those will be the families that we'll focus

00:07:02.780 on here today. So who's on the webinar today? Three types of people. Those who want to learn how

00:07:07.380 to create generational wealth, that may be you. Those have a little bit of wealth and want to get

00:07:12.160 more. And some of you that are already wealthy and you want to learn how to preserve the wealth

00:07:17.200 that you currently have. So either if you're one, two, or three, we're going to cover all three

00:07:21.300 here together. So Andrew Carnegie said, with access to books or educational content like this,

00:07:29.160 back then they didn't have courses, but I'm sure if they did, he would have said courses as well.

00:07:33.000 And the desire to learn could educate him or herself and be as successful as he had been. One more time.

00:07:40.440 Anyone with access to books and the desire to learn, like yourself that you're on right now,

00:07:45.340 could educate him or herself and be as successful as he had been. So here's what's taking place right

00:07:53.440 now. A few different things. Amazon is the first company ever to lose a trillion dollar in value.

00:07:58.480 That happened this year. We got FTX, files bankruptcy, bankman freed, steps down. We know

00:08:05.160 the story about this. You're seeing it everywhere. They're talking about this. Who's tied to it? Who's

00:08:10.020 not? Celebrities, those who endorsed them. It's a messy situation. How Insight was a part of it.

00:08:16.380 BlackRock, Sequoia, so many big names. A $32 billion company got $2 billion at a $32 billion

00:08:21.960 valuation. Boom. Like this, it's gone. Okay. Meta lays off more than 11,000 employees and the layoffs

00:08:28.440 keep coming left and right. Homeowners have lost a trillion and a half dollars in equity since May

00:08:34.460 as housing market continues to decline. And I can give you 50 other things on what's going on.

00:08:41.480 I can talk gas prices. I can talk the direction they're predicting, you know,

00:08:46.100 unemployment to go next year, interest rate, inflation. There's so many things we can talk

00:08:51.580 about, but if you consume the content, you've already seen a lot of that. So the six components

00:08:56.340 to generating, creating generational wealth. Number one, mindset. Number two, timing. Number

00:09:04.620 three, habits. Number four, compounding. Five strategy, six relationships. So let's go through

00:09:11.900 them. Mindset. Creating generational wealth, you have to have the right mindset. If you don't have

00:09:17.080 the right mindset, it's not going to happen. And that's not going to happen overnight. So how do you

00:09:20.920 get the right mindset? By being on the right webinars, the right courses, the right books. You're

00:09:25.760 constantly trying to see how those who created a ton of generational wealth think and how different

00:09:31.580 it is than yours. I remember years ago, 21 years ago, I had one of my affirmations that said the

00:09:36.560 following, you know, you are where you are because of the way you think. And if you're not happy with

00:09:41.760 where you are, you have to change the way you think. So if you're not happy financially where you

00:09:47.060 are, it's because the way you think. If you're not happy with your personal life, it's because the way

00:09:51.040 you think. That's part of the mindset. Number two is timing. This is a very important season,

00:09:55.560 right now of timing. There's a lot of uncertainty, a lot of fear. We just came out of midterms,

00:10:01.100 elections in two years, presidential. You just saw Trump coming out. He's running. Is it going

00:10:05.380 to be DeSantis? Is it going to be Newsom? Your people are worried on what's going to happen with

00:10:09.460 the economy. The Dow is up, but is it real? Credit cards are up. People are spending more money on

00:10:14.260 credit cards right now than ever before. What does that mean? Why are people getting home equity line

00:10:19.460 of credits today? And Home Depot stock is up and Walmart stock is up. Does that mean people are

00:10:24.640 using their credit cards to go spend money where they're doing okay? But at the same time,

00:10:28.880 the savings in America from Q1, we had $2.3 trillion in savings. We collectively were trillionaires

00:10:36.500 and that's gone from $2.3 trillion to every quarter losing $300 billion. We're down to $1.6 trillion

00:10:44.120 in savings. That's like you going from $23,000 in the bank in cash to now $16,000. You think that's

00:10:51.720 something you'd be talking about to your husband or your wife at night? We're saying,

00:10:54.540 babe, just six months ago, we had $23,000 in our savings. We're at $16,000. That means we can only

00:10:59.560 do this for three or four more quarters. Then we're running out of savings. How are we going to

00:11:03.600 handle this in 2023? People are thinking, which means timing matters on how you react when the

00:11:09.100 market is afraid. Number three, habits. We're going to talk a lot about some of their habits and what

00:11:14.600 they did. Number four, compounding, which requires a lot of patience. You'll see what their strategy of

00:11:19.780 patience means to them and then some of the strategies will cover that and then obviously

00:11:23.840 relationship, the types of people you meet, the types of contacts you make, the types of people

00:11:28.080 you go into business with. All of that matters a lot. That's the six components of generational

00:11:33.520 wealth. Now, the family cycle. We've read this before. This is not the first time you're seeing

00:11:39.400 this. This isn't my quote. This was said by somebody else, but we've heard it. Hard times create

00:11:44.600 strong men. Strong men create good times. Good times create weak men, and weak men create hard

00:11:51.060 times. I saw Aaron McKee, who played for John Chaney, said, John Chaney once told me the following.

00:11:57.060 He said, my grandfather walked 10 miles to work every day. My father walked five miles. I drive a

00:12:03.080 Cadillac. My son drives a Mercedes. Most likely, my grandson will be in a Ferrari, but my great-grandson

00:12:09.980 will be walking again. Okay? And so what does he mean by this when he says, my great-grandson will

00:12:14.660 be walking again? It says talking, but it's will be walking again. What does it mean? That means

00:12:18.740 most people don't prepare generational wealth and generational habits. What needs to transfer

00:12:26.320 are the habits, not just the money. Too often, all we think about is, man, I hope I get the money

00:12:31.320 passed down to my kids. No, you hope the right habits gets passed down to your kids because that's

00:12:35.860 what keeps it within the family. So now, the Medici family fortune starts through a few

00:12:40.580 different things. Banking and commerce. They rose to become one of the most important families

00:12:44.980 in Florence. Some estimate that they put their net worth at $129 billion adjusted for inflation.

00:12:52.080 A few other things you need to know about this family. Their family influence lasted 500 years,

00:12:57.800 producing four popes, two queens of France. They were the bank for the Vatican. Think about it.

00:13:04.260 They were the bank for the Vatican. Their art patronage earned them the nickname Godfathers

00:13:11.100 of the Renaissance. They sponsored Michelangelo, Don Antello, Leonardo da Vinci, and Raphael. And

00:13:17.220 this is not the Ninja Turtles, by the way. We're talking about the legit ones, not the stuff that

00:13:20.860 you and I saw as kids growing up. The book, The Prince by Machiavelli was offered to Piero de

00:13:26.740 Medici. Okay? So you already see their resume. They ruled Tuscany from 1437 to 1737. They had the

00:13:34.860 right network, kings, queens, popes, and royalty. They were more efficient than others. They adopted

00:13:40.980 systems and structured a bank like a corporation. They let ego be their downfall. The lineage started

00:13:49.060 crumbling when the success got to their head and they stopped focusing on the bank. So that's the

00:13:54.920 Medici. Now the next one is the Carnegie family. He grew up poor in Scotland and was making $1.20

00:14:02.240 at his first job in the U.S. Andrew Carnegie's fortune peaked at around $309 billion. He was the

00:14:09.460 richest man in America after selling his company in 1901. Carnegie entered the steel industry in 1873

00:14:15.240 and started his first company that evolved into the Carnegie Steel Company. A few things about their

00:14:21.100 family legacy. At his death, Carnegie donated most of his money to build over 2,509 libraries and schools

00:14:29.740 like the Carnegie Mellon University. He's referred to as the patron saint of libraries. That was a big

00:14:36.240 part of his mission on what he wanted to do with his life. He left his wife and nine children with a

00:14:41.640 trust of about $10 million each and the properties he owned. By the second generation, they began donating

00:14:48.280 their land to the National Park Service in the 1970s due to expensive upkeep. So what can we learn

00:14:55.140 from these guys? He was an early pioneer by bringing in Bessemer's process of making steel to the U.S.

00:15:01.020 and created a fortune in the process. Carnegie grew up poor and believed the way to wealth was through

00:15:06.760 self-education. This is something that I've applied myself. You hear about this on Valuetainment and many

00:15:12.240 other people who are self-educated folks. This is one way he created his mind and his wealth as well.

00:15:18.320 His legacy involved giving back to the schools and libraries so that people just like him could access

00:15:24.160 the resources he had that allowed him to build his wealth. You can create a legacy by helping more than

00:15:30.620 just your family. So what's the point here with Carnegie? What is your legacy? What do you want to leave

00:15:35.880 behind? You know, you hear me talk about capitalism all the time in books and business and entrepreneurship

00:15:40.900 and entrepreneurship. What is it for you that gets you excited about it? Is it orphanage? Maybe that's

00:15:45.860 something that is part of your passion. Is it kids? Is it, you know, women, men? Is it businesses?

00:15:53.920 What is it that you want to leave behind that's part of your cause and your crusade? This was a big

00:15:58.440 part of Carnegie's DNA. Next, we have the Vanderbilts. When Cornelius Vanderbilt was 16 years old, he turned

00:16:05.580 $100 into $100 million, which is $200 billion adjusted for today's money. His mom gave him

00:16:12.000 $100 million and he turned into what it is, $200 billion today. It was roughly equivalent to 50%

00:16:18.380 of U.S. Treasury at the time. Think about that right there. 50% of the U.S. Treasury at the time.

00:16:24.320 This is how rich Vanderbilt was during his time. He created a fortune for himself through his ferry and

00:16:31.560 railroad companies. He was known to be a harsh man who rarely trusted his family with his business

00:16:37.620 and money. With 13 kids, he only left one of his sons with the skills to handle his money and his

00:16:44.120 business. Okay, so think about that. I think he had eight daughters. I don't think he left a penny for

00:16:48.680 any one of them because he didn't think there's any benefit to leaving women or his girls any money.

00:16:54.040 Very interesting guy. Vanderbilt was. Well, let's see if this philosophy worked or not.

00:16:57.920 So here's his legacy. When Vanderbilt died, his son William took over his fortune and doubled it

00:17:03.880 to $200 million by the time he died in 1885. However, within 50 years of Cornelius' death,

00:17:11.160 the fortune was completely gone. So think about it. In 50 years, $200 billion, gone. There's no money.

00:17:18.940 Anderson Cooper's mom said, we may be part of the Vanderbilt's family, but there's no trust fund

00:17:24.040 to your kid. Not going to give you nothing. You've got to go make your own money. So whatever money

00:17:27.660 Anderson Cooper's made, he's made on his own. The third and fourth generation grew up ridiculously

00:17:32.060 lavishly and spend their fortunes like crazy. The descendants were prone to family competition,

00:17:38.360 building huge mansions to rival each other. And this is one of them, by the way. When you see this

00:17:43.340 mansion, you think this is a hotel. This is not a hotel. This was built as a vacation home. Finished

00:17:48.500 in 1895, 30,000 acre estate, 250 room French Renaissance castle took six years and cost nearly

00:17:59.460 $6 million to build, which in today's money, you ready? $1.6 billion by today's standards.

00:18:06.900 Why does somebody need a 250 room French Renaissance castle for vacation? Well, that's what these guys

00:18:15.300 did. And what happened to that money? It disappeared. Biltmore House is considered the

00:18:20.900 largest privately owned home in the entire country and is still operated by the Vanderbilt descendants

00:18:26.060 today. 179,000 square feet, give or take, with 35 bedrooms for family and guests, 43 bathrooms,

00:18:33.540 65 fireplaces, and three kitchens in this place. Okay. So what can we learn here? Don't bring family

00:18:40.040 into business and teaching them the trade. They didn't do that. He didn't want to do it. He said,

00:18:43.820 I'm just going to do one of my kids out of the 13, but I don't want to teach the kids how I made

00:18:48.280 the money. Lack of wealth habits led to poor money management and entitlement. Wasted the wealth on

00:18:53.880 crazy, lavish lifestyle. Don't be like the Vanderbilt's. That's pretty much the story of

00:18:57.880 Vanderbilt's. If there's one family you don't want to be like, it is a Vanderbilt. Okay.

00:19:01.900 Specifically in generational wealth to creating wealth, be like Vanderbilt's to pass on the wealth.

00:19:06.800 You do not want to be like the Vanderbilt's. Here's a Rothschilds. Mayor Rothschild returned to 0.83

00:19:11.280 Frankfurt in 1763 at the age of 19, joined his brothers in the trading business started by their

00:19:16.940 father. Okay. Mayor Rothschild returned to Frank. Then Rothschild banking empire grew rapidly during

00:19:23.540 the French revolution. Before he died, he left strict instructions for his heirs on how they should

00:19:29.760 handle family finances. So there's strict instructions being left behind. So he was progressive.

00:19:35.080 He was prepared. He knew he wanted to get these guys to think the right way. In the early 1800s,

00:19:40.860 Rothschild sent his sons to live in Naples, Vienna, Paris, and London in addition to keeping a son in

00:19:47.440 Frankfurt. The five linked branches became in effect the first bank to transcend borders. Lending to

00:19:56.600 governments to finance war operations over several centuries provided the Rothschild family with ample

00:20:02.300 opportunity to accumulate bonds and build additional wealth in a range of different industries.

00:20:07.800 The family's network peaked at around $500 billion after the Napoleonic wars when they were financing

00:20:14.660 both sides. So what can we learn from these guys? Traditionally, the Rothschild's fortune is

00:20:20.840 invested in closely held corporations. Today, the Rothschild corporation have continued to see success.

00:20:27.920 Most family members are employed by these corporations directly or are invested in operations

00:20:33.620 that generate family wealth. The remarkable success of the family has largely been due to a strong

00:20:40.720 interest in corporations being entrepreneurs and the practice of smart business principles.

00:20:46.880 The family motto is Concordia, Integritas, Industria, which means harmony, integrity, and industry.

00:20:53.200 So the family had a certain set of values and principles that they keep teaching. Therefore,

00:20:59.280 the family still has been able to keep the money. Next, this one's also an interesting one. The Ford

00:21:05.560 fortune. Henry Ford's fortune peaked at around $200 billion. His wealth was almost 3% of the US GDP

00:21:12.520 in 1913. Started Ford Motor Company in 1903 and quickly became the largest automotive manufacturer in the

00:21:21.160 world. Their legacy. Upon his death, Ford left most of his vast wealth to Ford Foundation and arranged for

00:21:27.960 his family to control the company permanently. Ford's collectively are worth around $2 billion.

00:21:34.400 It is the fifth generation of Ford's sons, grandsons, and cousins to own the company.

00:21:39.060 The family owns nearly 40% of voting power in Ford Company. So now what can we learn from these guys?

00:21:46.420 Upon his death, trusts were in place in order to protect most of his wealth from excess taxes and

00:21:56.040 transfer of wealth. By the way, this is something that most people don't realize when it comes down

00:22:00.020 to estate planning. Elvis died with nothing being passed down to his family, his kids. So did MLK.

00:22:06.220 So did Abraham Lincoln. There are a lot of families that were not prepared for this and they didn't do

00:22:12.060 proper estate planning. A lot of celebrities, a lot of athletes. Babe Ruth left nothing pretty much for

00:22:17.460 his family just because they didn't take the time to think about generational wealth. They were just

00:22:22.240 looking at the money in themselves in their lifetime. They didn't say, well, one day I'm going to die.

00:22:26.200 I'm sure that day is going to come. I'll be ready when that day comes. And they never get prepared.

00:22:29.740 Most people don't get prepared for this. The fact that you're on this webinar right now tells me this

00:22:33.720 is something that's important to you. And kudos to you to do what most are not willing to do.

00:22:38.120 This gives you an advantage over other people. And obviously everything will come down to execution,

00:22:43.700 but you do have an edge. The fact that you want to learn how to do these things.

00:22:46.760 So they managed to keep the business within the family and each generation took the company and

00:22:51.560 moved it forward. The transfer of wealth was swift and the business acumen and wealth habits were left

00:22:57.920 intact. Okay. So whatever they learned, he passed it down and the kids and grandkids kept using those

00:23:05.740 skill sets to grow the company to the next level. Rockefeller started out as an assistant bookkeeper

00:23:11.780 making 50 cents a day. His fortune peaked at around $418 billion. Again, another 3% of US GDP around the

00:23:19.860 same time as a Ford started standard oil in 1870 and grew to control 91% of oil production and 85% of oil

00:23:29.600 sales in the United States. Upon his death, all the money went into trust controlled by male heirs of

00:23:36.660 the fortune that were designated designed to maintain the wealth. There are over 150 direct

00:23:41.920 descendants of Rockefeller and their net worth is estimated to be $8.4 billion. The fifth and sixth

00:23:48.440 generation aren't likely to be able to live off of their family trust according to people close

00:23:52.800 to the family. They currently hold no money making family businesses. It's purely investments.

00:23:58.840 The family members individually donate $50 million each year and the foundation donates $170 million

00:24:04.560 every year. Generational skipping trusts were in place, which is a beneficial thing to have in place. 0.90

00:24:10.560 Rockefeller had trusts in place to make sure that the money was evenly distributed. So this isn't

00:24:16.820 something where one got more than the other. The approach he took, he wanted to be evenly distributed.

00:24:21.240 The family had developed a system of values, traditions, and institutions that have helped the family

00:24:27.420 stay together and preserve the wealth. Think about that one right there. What set of values and traditions

00:24:33.520 do you want to pass down to your kids? Think about a person sitting there to think about that and say,

00:24:40.140 hey, babe, this is what I want to pass down to my kids. Here's what I want them to be doing.

00:24:45.600 These are our values. One of the things we talk about a lot in our family is lead, respect, improve, love.

00:24:51.240 Those are four things we do as a family. We don't bully. We don't get bullied. And there's four

00:24:55.960 things we pray for. Courage, wisdom, tolerance, understanding. Obviously, there's a lot of other

00:25:01.920 values. I'm giving you the basic of what we teach. You can tell these families, think about these

00:25:07.640 things, and it's repetitive. And they keep talking about it over and over and over again. I'll never

00:25:11.720 forget a story. Arnold told the first time he met, when he married Maria Shriver, he said,

00:25:18.700 the first time I met one of the Kennedys, he said, so what's your favorite color? And he said,

00:25:23.540 we like red. He says, no, no, what's your favorite color? He says, yeah, we like the color red.

00:25:29.880 He says, I don't think, why are you saying we? What do you like? He says, we, the Kennedys,

00:25:35.080 like the color red. Why would somebody say something like that? Because the family talks about,

00:25:39.960 we like the color red. So how detailed is that to say, this is our color of what we like?

00:25:47.300 Something, again, to be thinking about. I'm not saying go pick your favorite color and say,

00:25:50.480 in our family, we like the color purple. But the point is, they're thinking about details like this.

00:25:56.860 So, and the last one, even Rockefeller made mistakes when he came down to planning.

00:26:00.300 There's a certain number that, I think he had a $1.4 billion of estate when he died. At the time,

00:26:08.560 obviously today's money, it's $400 billion. But $1.4 billion at the time, 70% of it got taxed,

00:26:14.200 just so you know. Only $400 million ended up going to the family. 70% because there was no will in

00:26:21.760 place. Rockefeller had no will in place. A basic will costs you a couple hundred dollars to put

00:26:28.280 together. There was no will. Cost of family, 70% of $1.4 billion. Think about that. Just taking the

00:26:37.640 time to put together will. Again, our job is to learn from what people did right and learn from

00:26:42.940 what they did wrong and do what they did right and don't do what they did wrong. So what did they have

00:26:48.020 in common? A few different things. Number one, they all chose a growing industry and were early

00:26:53.300 adopters. Number two, they found a problem and created a solution. Three, they had equity,

00:26:58.280 equity, and businesses that grew. And last but not least, this is a tough one for many people.

00:27:03.160 It took them 20 to 40 years to amass their wealth. Do you have that kind of patience?

00:27:09.420 20 to 40 years to amass that kind of wealth. A lot of times people talk about, well, Elon Musk is

00:27:14.620 worth a few hundred billion dollars in today's money, et cetera, et cetera. Well, I mean, Elon Musk has been

00:27:20.020 doing this for a long time, nearly 30 years. He's been doing what he's doing with business. When they sold

00:27:25.660 PayPal for one and a half billion dollars, his share was $180 million. You know what he did with

00:27:30.260 his $180 million? He put $100 million into SpaceX. He put $70 million in Tesla, and I think he put $10

00:27:37.280 million in the solar company. And that $180 million turned into $250 billion today, give or take,

00:27:43.840 depending on how the economy is, because he's a long-term thinker. Warren Buffett today is worth

00:27:48.240 $109 billion. You know how long he's been at it? A long time. He's also a long-term thinker.

00:27:53.180 This is very common when you look at people who create a ton of wealth. So getting rich is different

00:27:59.800 from staying rich, okay? Slow money, long money. The longer it takes, it eventually takes to

00:28:06.940 accumulate, the longer you hold onto it. They all spend 20 to 30 years building their wealth. Fast

00:28:12.080 money, quick money, therefore 70% of lottery winners end up broke within a few years. Think about

00:28:19.240 this. This is a study that MIT did. Didn't somebody just win $2 billion right now with the lottery?

00:28:23.740 What do you think is going to happen with this regular person that gets $2 billion?

00:28:26.900 You think they know how to manage $2 billion? If the person's never had a million dollars,

00:28:30.880 their identity, if their job is $52,000 a year, they get $2 billion. What do you think you're going

00:28:35.500 to be doing with that money? How quickly do you think that goes away? Even though you may say,

00:28:39.280 come on, Pat, you think a person can run through $1.9 billion in no time? Yes, absolutely. Because if you

00:28:44.880 don't know how to manage it, and if your identity doesn't believe you're worth $1.9 billion, and you

00:28:49.580 think you're only worth $22,000 of savings in a bank, somehow, someway, either someone's going to

00:28:54.260 rob you of that money, someone's going to take that money from you, you're going to break the law,

00:28:58.560 you're going to pick up bad habits like drugs, alcohol, and then boom, the money disappears,

00:29:02.520 most of the time, according to MIT. The people who get rich quick lack something crucial to

00:29:08.820 generational wealth. Generational wealth habits. This is exactly what we're talking about. So number

00:29:14.040 one, they invest in sure bets. So something that these guys did. Number two, investing in appreciating

00:29:20.200 assets. Three, structuring it generational. They think about, how am I going to get this money to

00:29:27.000 go to the kids and to grandkids? It is something they think about. Practicing apprenticeship. What can

00:29:33.080 I do to develop these leaders? What can I do to teach my habits to them? They come to work. They

00:29:40.000 see how mommy's working. They see how daddy's working. They see how you're growing your business.

00:29:44.100 Whenever I'm doing a conference call, I like my kids to listen to many of these conference calls.

00:29:47.880 So they see how I'm negotiating. They see how I'm talking. And then afterwards, they'll ask me

00:29:51.960 questions. That is a form of apprenticeship. My six-year-old daughter, I went home right now to pick up a

00:29:58.740 few of these kilo of gold because I was doing a video for gold. My daughter immediately,

00:30:04.000 Daddy, can I come back to the office? Can I come back? She just wants to be here. And I'm like,

00:30:07.780 absolutely, you can come here. Today, she had to do homework and she had some things she had to do

00:30:12.080 or she would have been here. Think everything about duplicating good habits to your kids.

00:30:16.760 Most of the time, kids will only see the bad habits, but think about what good habits we can

00:30:20.720 duplicate to the kids. Being pioneers and trendsetters. So some of you guys may say, well, Pat,

00:30:26.440 what do you want me to do with oil? That's already done. Railroad, who the hell is going on? I've

00:30:30.040 never been on a train before. I'm not going to get on a train. Planes, what can I do that's going

00:30:33.620 to be revolutionary? Either be revolutionary or join a revolutionary. Either be a pioneer or jump

00:30:40.840 on a pioneer's ship, plane, and say, I'm going with you. Wherever you're going, I'm going on this

00:30:44.980 rocket. We're going places. I'm going to bring my value to you. But either way, either be a pioneer

00:30:50.160 and trendsetter or join a pioneer and trendsetter. Changing the business with the changing times,

00:30:56.440 they know how to pivot and adjust. Recognizing and capitalizing opportunities. That's something

00:31:02.240 you got to be thinking about and you got to be looking at. Teaching the family early, not waiting

00:31:07.440 till later on to teach them the right habits. Staying away from the spotlight. Very interesting

00:31:12.100 to say, stay away from the spotlight. This is interesting where this was a big part of philosophy

00:31:17.220 where they want to be a little low key. Even if you think about the Koch brothers or Rothschild,

00:31:22.260 you don't hear a lot from them. You may even not be able to say that you hear a lot from many of

00:31:27.360 these people who made their wealth then. It's very different today. It's hard for Bezos or Musk or a

00:31:33.780 lot of these guys to stay away from the spotlight today because we have something called social media

00:31:38.380 and whether you like it or not, the media is going to somehow pull you in. But do your best to stay

00:31:43.260 away from the spotlight. This is what some of these guys did. Leadership and family is based on merit,

00:31:47.640 which means you got to earn it. Kind of like how I talk to my kids when I said, hey, what if one of

00:31:52.040 you guys does something bad? Should that person still get the money? No, you should. Okay, great.

00:31:56.280 Perfect. No problem. So families have certain set of values in place to get that wealth. You talk

00:32:02.000 about that early. Very simple. The other day I was walking with one of my neighbors. This guy's family,

00:32:07.920 they have 7,000 employees. Classy guy. We always talk. I give him value. Stayed up till God knows what time

00:32:12.660 for him to create content. And we are like, oh my God, I can't believe how to do this, how to do this. You're going to be

00:32:17.080 great. But while we're walking, and this is Halloween and we're doing trick-or-treating.

00:32:23.060 While we're walking, his son walks by and he says, oh, how are you doing? Great. His son's playing

00:32:29.640 football. And he says, yeah, he lost his technology privileges for seven weeks. I said, what do you

00:32:35.800 mean technology privileges? He says, yeah, he lost his technology privileges. What do you mean by that?

00:32:39.900 Well, you know, iPhone, video games, stuff like that. I said, why did he lose it? He says, oh, in our

00:32:45.420 family, very basic, in our family, if you don't have straight A's, you lose technology privileges.

00:32:52.200 I said, really? He said, yeah. If you don't have straight A's, you lose technology privileges.

00:32:58.280 Think about that. So I sat there and I came back and I said, I've been thinking about a way to talk

00:33:02.980 to my kids about getting a phone because a lot of people are having phones. They say, oh, how am I

00:33:08.540 going to get these guys the phones? Now there's a system. So the point is, leadership in family is

00:33:13.840 based on merit. That's a merit. You want technology? You want technology? You got to

00:33:20.040 make sure you have straight A's. So these are some of the things that you borrow to create

00:33:23.940 in your own family. Next, maintaining strong family connections, keeping people together,

00:33:30.700 reunions, traveling together. I remember I was dealing with this one insurance guy, very,

00:33:34.580 very successful guy, and who had had a massive exit and he had started an annuity company out of

00:33:41.060 Kansas City. And one day I'm sitting down with him, talking to him. I said, so tell me some of

00:33:44.880 your family traditions. The guy was in his seventies. So I like to learn a lot from people

00:33:48.360 that are super successful. He says, every year I take 89 of my family members on a vacation and I

00:33:56.760 pay for the whole thing. I said, what? Really? He said, absolutely. Two weeks. I take him. I said,

00:34:02.840 are you joking? He says, no. He said, let me show you some pictures. He shows me, this is a cruise.

00:34:06.960 This is 89 of us. And he starts telling me, I started doing this 20 years ago. First one we

00:34:12.280 did was only 11 of us. Then it went to 15. Then it went to 20. Imagine the pictures he's shown every

00:34:17.020 year. He says, now it's 89. All these grandkids, all these boyfriends and girlfriends. He says, 89.

00:34:23.380 We go together. I said, why do you do this? He says, believe it or not, it keeps the family united.

00:34:28.140 We're all together. I'm like, wow. Very interesting. He told me this in 2009 when I started the insurance

00:34:34.260 company, 14, 13 years ago, this Christmas, I tell my wife, when it comes down to one thing that I

00:34:40.980 don't hold back is experiences with the kids. This Christmas, we're probably going to spend four to

00:34:45.300 $500,000 on our Christmas. Last year was $300,000. There's one thing that I'm going to do to bring the

00:34:52.620 family together is something like this. You get to use your resources to create the family to come

00:34:58.760 together. When I was thinking about as a 23 year old, one day I want my grandkids to choose to come to

00:35:03.380 my place. I want to build an estate where kids can get to play, swim, do whatever they want. And

00:35:10.160 the in-laws can be in a complete separate house. So Christmas, Thanksgiving, summer vacations,

00:35:15.900 all my grandkids want to come to me because I want to stay close to my kids and my grandkids.

00:35:21.980 Those are some of the things you do to keep the family connections together. Again,

00:35:25.140 some people may say, Pat, you're out of your mind. That's important to me. What's important to you?

00:35:29.240 This doesn't apply to everybody, but that's what I think about. What do you think about

00:35:33.120 in finding ways to maintain strong family connections? Next, build strong business networks.

00:35:39.560 You know, connections is a very big thing. Today, I just get a call out of nowhere and this guy says,

00:35:45.020 hey, Pat, one of our guys here that we work with, he says, hey, you know, there's this guy I just talked

00:35:50.720 to and he just came up to me and he's been following by team for a while and he wants to be our contact

00:35:57.300 for Hollywood, for Grammys, for all this stuff. And there are people that want to be the agent

00:36:01.800 because they want to, you know, they're seeing what's going on here where we have a lot of

00:36:04.820 exposure on social media and the internet, but we don't have it on mainstream media.

00:36:08.580 And they want to talk to you. This is a connection of a connection of a connection.

00:36:12.380 When you build strong relationships, you know, I remember the first time I read a book about

00:36:16.020 Bill Clinton running for office when he was a governor in Arkansas and he became the president,

00:36:20.360 beating George Bush Sr. He said he wrote 20,000 handwritten notes that he gathered on this roller,

00:36:27.180 Rolodex. Forget about all the bad things you may think about with Bill Clinton. The man was an

00:36:30.900 incredible networker. He took his 20,000 contacts that he had gathered, Rolodex, wrote everybody a

00:36:37.720 note. I am running for office. Here's the reason. I would love to get your support. And then boom,

00:36:44.720 all these connections helped him eventually become a president. It doesn't matter what it is.

00:36:50.180 Your contacts may want to be your kids' contact. Very important to build strong business networks.

00:36:55.440 Being cautious of who you bring into the fold. Very, very interesting. You talk about who dates

00:37:01.200 you, who dates your kids and saying and breaking it down to find out who the family of the kid

00:37:06.840 that's dating you, you know, kind of being a little bit more proactive. Hey, hey daddy, I love this guy.

00:37:11.660 Great. Let me meet his family. You know, Hey mom, I love this girl. Great. Let's meet her family.

00:37:16.900 It doesn't matter what it is. You want to keep them close to see who they're getting close to

00:37:20.780 friends. Hey, I hang out with this guy named Joey. Great. Bring them over for a pool party. And then

00:37:25.040 you look, Oh, Joey was smoking weed over there at 13 years old. Yeah. We're going to have a problem

00:37:29.360 here. We got to figure this thing out. Now. I know I talked to the family. We're being proactive.

00:37:33.820 You got to be proactive. You have to stay paranoid. Ray Dalio said something very interesting

00:37:38.180 this last week. I watched a clip of his and he said, you know, if you worry, you won't have to worry.

00:37:45.200 But if you don't worry, you will have to worry. What does that mean? If you worry about the economy,

00:37:51.600 you're probably not going to take a massive hit because you'll be overly prepared. He says,

00:37:56.640 but if you don't worry about economy, your kids, how you raise them finances, rates, you know,

00:38:02.260 politics, if you don't worry about it, guess what? You're going to have a lot to worry because it's

00:38:06.640 all going to impact you. The whole concept is to be a little bit cautious of who you bring into the

00:38:11.980 fold. Very, very important. By the way, this applies to lawyers, estate planners, accountants,

00:38:18.460 firms, consultants, very, very careful who you bring on the inside. 14 capitalizing of certain

00:38:25.820 aspects of the law. They talk about loopholes, but this is the benefit of having the right

00:38:30.500 accountants overpaying for accountants to protect you against laws that change. I've had lazy

00:38:37.060 accountants before. If you got lazy accountants, just because they're a friend or family and they're

00:38:41.320 working independently, they're by themselves and you're starting to do very well, maybe it's time

00:38:45.380 to fire your account. As much as you love them, you got to move on. My recommendation is always to go

00:38:49.520 to a top 50 accounting firm because a top 50 accounting firm, they have responsibilities and

00:38:56.320 if God forbid one of their accountants does something bad to you, they're held responsible

00:39:00.760 to have another team come and fix it and they typically have tax planning, you know, laws changing.

00:39:07.060 They'll tell you, I'll talk to my accountant. They'll say, hey, let me tell you for the state of Texas,

00:39:10.480 this change. For Florida, that change. For California, this is what's going on. So we may

00:39:14.560 be able to do this for this state, but not the other state. So again, very, very important to

00:39:18.200 know what's going on with tax laws and the laws of your industry, period. So that's that. Now,

00:39:23.000 generational wealth killers. Number one, lack of wealth habits. Very simple. If you have lack of

00:39:28.840 wealth habits, sudden wealth syndrome. You all of a sudden get money, you don't know what to do with

00:39:34.340 it. Your identity didn't match your money. You may all of a sudden get $10 million, but you're only

00:39:40.420 used to making 60K. Man, you better change your identity up to upgrade thinking like a $10 million

00:39:45.200 person, which means don't do anything with the money anytime soon until you start thinking what

00:39:49.920 it is to have $10 million. So sudden wealth syndrome is very, very problematic. This happens

00:39:54.860 in sales. You'll see somebody that's making $4,000 a month, $10,000 a month, and all of a sudden they

00:39:59.480 sell a $4 million home and they get $150,000 check or $100,000 check. And they buy four Rolexes,

00:40:05.640 a Ferrari and a Lambo thinking this is going to happen forever. Boom. Six months later,

00:40:09.240 they lose the Ferrari. They lose the Lambo. They sell their watch that I bought for $20,000

00:40:13.360 for $2,000 to you or $5,000 to you. This is called a sudden wealth syndrome. I lean towards

00:40:19.560 buying things that I can't afford today. Typically you're two years later. Ah, not yet. Ah, not yet.

00:40:25.640 Not yet. Not yet. At $250,000 in the bank at 27, 28 years old. And I was driving a Ford Focus

00:40:31.420 and everybody was saying, Pat, are you broke? I'm like, no, I'm not ready to buy an exotic yet.

00:40:35.600 And my friends were like, well, let's buy a million dollar home. Let's buy this. Because

00:40:38.700 this was the ninja side. No income, no assets, no jobs. I'm like, I'm not buying nothing yet.

00:40:43.220 Eventually I had a half a million dollars. I took that to finance by an insurance company.

00:40:46.960 And obviously we just were able to sell the company for a few hundred. It was a very good

00:40:50.520 experience when that took place, but it's sudden wealth syndrome. Okay. Three, lack of concentrated

00:40:56.320 wealth. Okay. Lack of concentrated wealth. You know, it's, it's all over the place. You know,

00:41:02.180 you don't have it too focused. Yes. You want to make sure you have a, uh, you know, diversification

00:41:07.000 may be a good thing, but if you want to create true wealth, typically it's better to have it more

00:41:11.800 focused in certain sectors and too many different places. Some may disagree with me and say, Pat,

00:41:16.340 what are you talking about? You got to diversify. I get it. Totally understand. It's all about your risk

00:41:20.120 tolerance and your time horizon. But if you want to create true, true wealth, you got to be a little bit

00:41:25.560 concentrated in industries you're looking at. I went insurance industry, one industry, 20 some years

00:41:30.840 I've been in it till today, 21 years, one industry, Pat, try loans. Nope. Guys call me, Pat, what if we

00:41:36.920 team up to do real estate? Nope. Hey, what if we team up to do? Nope. I'm insurance. Well, that's a boring

00:41:41.560 industry. Really? Not so boring for me. I love this industry. Look what we did to it. There was a problem

00:41:47.640 in the insurance industry. What was it? Only 17% of agents were women. We build an insurance company, 1.00

00:41:53.760 54% were women. Hispanics, nobody was selling them insurance. We're 51% Hispanic. The average agent

00:42:01.100 was a 56-year-old white male. Our average agent became a 34-year-old Hispanic female. Everybody was

00:42:08.740 stodgy and boring when he would go to conventions. Our conventions are wild. A Kevin Hart will be doing

00:42:14.260 a one-hour irresponsible tour and make 6,000 people laugh. We brought a President Bush to talk about what

00:42:21.000 happened with his life, how he became a president. We'll bring the late Kobe Bryant. We'll bring people

00:42:26.600 like Billy Bean and entertainment and, hey, you know, Sebastian Maniscalco, come and give a performance.

00:42:32.160 Make everybody laugh. We'll have Shaq come up, Mike Tyson come up. We'll put up a concert with Nicky Jam.

00:42:37.860 We'll put a concert with Nelly. But we saw a leak in an industry that was traditionally known as being

00:42:43.760 boring. We made it exciting and we changed it up. So that's something you got to be thinking about.

00:42:49.800 So breakdown in trust and communication. Next, parents not preparing children and not talking

00:42:55.920 to them. Jamie Johnson, an heir to the Johnson & Johnson healthcare fortune, says in his documentary

00:43:01.480 Born Rich that he was clueless about the extent of his family wealth until a young schoolmate read

00:43:08.160 his father's listing in the Forbes 400 out loud to the entire class. Let me read this one more time

00:43:15.000 to you in case you missed it. Jamie Johnson had no clue. She just thought, I'm just Jamie Johnson.

00:43:21.500 She had no idea. She was an heir to the Johnson & Johnson family in the documentary Born Rich,

00:43:26.920 which is a good documentary to watch, that he was clueless about the extent of his family's wealth

00:43:31.260 until a young classmate read his father's listing in Forbes 400. He's like, wait, that's my dad?

00:43:37.840 Wow, my dad's a billionaire. This kid never knew his dad was a billionaire. Think about how those

00:43:42.940 parents raised the kids, right? Preparing parents, not preparing kids, right? So now here's a few

00:43:50.060 different things. 11 Ps when it comes down to investing. These are my 11 Ps on what I look at

00:43:54.620 when I invest into different things. Some of it you can borrow. Some of it you may say, no, it's not for me.

00:43:59.300 Number one, I invest in people, meaning operators. I feel Musk is a good operator. So if I had a chance

00:44:07.420 to invest into Twitter, I would have risked a few million dollars to invest into Twitter because I

00:44:13.620 trust in him as an operator. Is there risk there? Of course there is. He's been targeted, but I like to

00:44:20.300 invest in great operators, okay? Like there's a story on Business Insider. This one guy who was friends

00:44:26.720 with Warren Buffett. I don't know what year this was, by the way, Tyler, if you can look it up, 1950s

00:44:30.480 or 60s. Early on, maybe even 74, 72. And this guy says, look, I was friends with Warren Buffett.

00:44:36.240 He told me to put $10,000 on Berkshire Hathaway. I did. And I never looked at it. I went back to my

00:44:40.840 regular job. He makes 80 grand a year, by the way. But he put $10,000 on Berkshire Hathaway. He said,

00:44:45.840 why did you? So I really believed in the person, Warren Buffett. You know how much that $10,000

00:44:50.440 worth today? You ready? A billion dollars. $10,000 he put. Never touch the money. The guy's a

00:44:56.680 billionaire because he invested in the right person. He said, this guy's going places. And

00:45:03.240 he was right, okay? So first P, invest in people. Second P, invest in perpetual things. I like

00:45:10.460 perpetual things that money keeps coming in. Netflix, you're paying $12.99 per month, okay?

00:45:15.460 Different types of services where the money is being paid on a regular basis. It's a membership

00:45:20.160 model, which is perpetual. Number three is phenomenons or phenomena. Phenomena right now,

00:45:26.680 I just bought a few massive cards. I bought a, you know, I bought the Pat Mahomes, his second

00:45:31.820 best card. It's a one-of-one RPA, beautiful card. I'm a Joe Burrow fan. I bought his card.

00:45:37.820 I bought Pat Mahomes' card. One-of-one as well. I think it's his second best card as well. Both

00:45:41.880 of them second best card. I just bought Mbappe's best card. If you guys know the soccer player

00:45:46.560 Mbappe, I own Mbappe's best card. Spend a couple hundred thousand dollars on it. World Cup's coming

00:45:52.480 up. If France wins and he's a superstar, I think they're third right now in the odds

00:45:56.420 to win. That's a phenomena. Now, it's a risk, but it's a risk I'm willing to take, right?

00:46:00.780 Some people did Netflix, did NFTs. That was a phenomena that a lot of people invest some

00:46:05.540 money into it. Phenomenons are not something you invest a big portion of your money into.

00:46:09.640 Every once in a while, you look at phenomenons. Number three, number four, problems. Uber Eats

00:46:14.480 solves a problem. Lyft solves a problem. Number five, preventative. This is gold, okay? I got

00:46:19.940 three kilos of gold sitting here. This is purely preventative. I'm not expecting this gold to help

00:46:26.160 me become a billionaire. Not at all, but it's preventative. I own some gold in case something

00:46:31.360 happens. This is not going to make you super wealthy, but it is preventative. By the way,

00:46:36.000 insurance is also preventative. I own a lot of life insurance. It's preventative. Number six,

00:46:41.240 patents. Someone's got a good patent. They're typically not good operators, but if there's a real

00:46:45.780 good patent and a good team behind it, I'll consider it. Number seven is product. What product

00:46:50.700 it is. Sometimes you see a product where you're like, I just really like that product, and I use

00:46:54.480 that product. I want to invest into that product. Great. It is a product I personally use. Number

00:46:59.580 eight, predictable. You just know it's a very predictable ETF or EFT or mutual fund, something

00:47:05.780 very predictable that people put their money in. Property, depending on commercial or residential.

00:47:11.540 Ten, priceless. This is me and my family last Christmas. This is us in Whitefish, Montana.

00:47:18.420 Had a great time. We flew in on a private jet, stayed there for a week at a 20-some thousand

00:47:24.200 square foot home. Right behind us, do you see right behind us is where they're skiing. I don't know if

00:47:28.780 you see that now or not to the top left, right behind my nanny. Right there. People are skiing,

00:47:33.140 so you look out the window, you see skiers, snowboarders. We had a couple of our guys. I think even

00:47:38.920 Mario tried to go out there and ski. It was a very bad situation. We're just happy he's

00:47:42.400 okay alive here with us. We had a couple of our friends, Matt and Rodolfo, try to ski.

00:47:47.020 They both, no joke, couldn't stop skiing. You can tell that some people don't know how to

00:47:50.760 ski. They went into a community because they didn't know how to stop. Funny story, but they're 0.92

00:47:54.440 all healthy. Nobody broke any legs. These are priceless memories that we'll talk about

00:47:58.480 forever. It's an incredible time. We watched a Christmas movie. Can you guess what Christmas

00:48:03.280 movie we watched? Tyler, I guarantee you, you can't guess what Christmas movie we watched.

00:48:08.540 There is nothing about this movie that has to do with Christmas.

00:48:13.920 Now, you know what we watched? We watched Primal Fear. Who the hell watches Primal Fear for Christmas?

00:48:19.460 The Bed David family. We sat there in the movie theater and we sat there and we watched Primal Fear.

00:48:23.820 Why? Because I just love the scene when, you know, Edward Norton goes like this to Richard Gere.

00:48:28.980 Anyway, these are our memories. I invest in priceless memories with my family. We just bought the box

00:48:36.000 seat at the Tampa Bay Bucks playing against Cincinnati Bengals. 36 people. I'm taking a bunch

00:48:40.920 of friends and clients and customers and agents. We're going to go there and I'm taking the kids.

00:48:45.540 We're going to watch Joe Burrow play Tom Brady. Could probably be the last game they're going to play

00:48:49.200 against each other. That's a nice investment. It's priceless for us, right? And then the last one,

00:48:53.540 the last P of investing is planning. Planning. This is the one that's boring to most people,

00:49:00.360 but this is what pays a lot, pays very well if you do planning. So the lack of planning in your

00:49:06.300 life will ruin the financial future of your planning, of your family. Let me explain.

00:49:11.180 What's the one thing you can spend hours and hours building day in and day out? Does anybody know

00:49:16.860 what I'm talking about? It's Legos, okay? You ever seen these Legos? I don't know if you're a Lego person

00:49:21.580 or not. We like to build Legos. Matter of fact, this Lego right here, I'm going to show you.

00:49:25.600 My kids just finished building this last night and I told them I'm going to bring it back so they

00:49:29.740 can see it. They spent so much time building this. I don't know if you guys can see this or not.

00:49:34.220 Can you see it? Just take a look at it. Oh, shoot. Did it break? You got to be kidding me. I dropped

00:49:42.080 that thing. Can you see it real quick? Oh my God. Seriously, that thing broke? Can you take a look at it

00:49:48.940 if it broke? By the way, I did that intentionally, just so you know that. My kids didn't spend time

00:49:55.480 building that last night, okay? This is what I built here. You know, I'm showing you this. Here's

00:50:00.760 what happens if you and I don't plan. This breaks. You spend time putting this thing together.

00:50:08.460 You, your family, you spend time creating your wealth. You spend time working your tail off

00:50:16.600 to make money. Don't you think it makes a little bit of sense to put time in planning?

00:50:23.660 Hours. How hard do you work if you're watching this? How hard do you work? This is obviously

00:50:29.040 a little, the guys wanted me to bring the big, what do you call that big one? The biggest

00:50:33.040 one that Lego has. Do you know the name of it? The Star Wars. There's a, what is it called?

00:50:38.640 I don't know. I think it's, I think it's another one. The Falcon. The massive Falcon.

00:50:42.820 We did one with my kids. Took us five hours to make. But myself, Adam, Mario, we decided

00:50:49.000 to do the biggest piece Lego ever had. Do you know how many hours it took us? We made

00:50:52.180 a YouTube video. We tried to break the German MIT graduates record. We failed miserably.

00:50:57.840 We're not going to bring that to break it. That took a long time for us to build, right?

00:51:01.540 The same way you treat your wealth to not break it, you got to protect it. Comes down to planning.

00:51:06.400 My kids like Legos. Their daddy likes Legos. They sit there. If you want to find a way to

00:51:11.280 irritate my daughter, guess what? Have my sons come and break her Barbie house. If you want to 1.00

00:51:17.640 find a way to upset my son here, he likes to build forts with pillows and blankets. If one of the

00:51:23.660 kids breaks what he built with his forts, fights breaking out in the house. Full-on fights breaking

00:51:29.960 out in the house. Why? Because you spent hours building that. You've spent hours building your

00:51:35.380 current business. Now you ought to protect it, right? That's the whole reason why we're doing this.

00:51:39.760 So if you spent time, then someone breaks it and you weren't prepared for it, it's your

00:51:45.680 responsibility. We ought to figure out a way to prevent people from doing that. It's not going

00:51:49.580 to feel good when that happens. So now what happens to that thing that you are spending your life

00:51:54.180 building when you pass away and you're not prepared for it? Have you planned who is going

00:51:59.160 to take care of it? Some of you may be watching and saying, Pat, I didn't come here because I got

00:52:02.980 generational wealth. I want to find out how to create generational wealth. Well, regardless if you

00:52:06.780 have it or if you don't have it, generational wealth equals planning. FYI, watch what happens

00:52:13.820 when you talk planning with people out there. You and I don't like that topic because we're

00:52:18.980 looking for that special potion to take to create a ton of wealth. We don't like the topic

00:52:22.900 of planning. Just award itself is boring, but this is what these guys do. This is what I've

00:52:29.420 learned to do. My entire life lacked planning until I understood the power of planning. Right now,

00:52:35.180 I'm working on this book I'm writing with Penguin. We're so excited about this book. It's not coming

00:52:42.340 out for another year and a half. We've been putting hours on top of hours. My whole mind

00:52:46.920 is around business planning and life planning right now. Penguin bought the book. We're excited

00:52:51.500 about it, portfolio. The whole concept is 12 building blocks of writing a business plan because

00:52:57.260 most people don't know how to write out a business plan. That's what we're talking about

00:53:00.440 with this book. There's three types of planning. There's business planning. There's financial

00:53:04.340 planning. There's estate planning. This session is not for financial planning or estate planning.

00:53:09.620 Financial planning and estate planning will help you keep your wealth. This whole session

00:53:13.540 was about business planning. Business planning is what will help create wealth. For those of

00:53:20.000 you that want to help create wealth, that's what we're talking about today. By the way, what

00:53:23.540 season are we in? We're going into the third week of November. Thanksgiving is a week from

00:53:28.400 today. I believe today's Thursday. A week from today's Thanksgiving. Like this, Christmas

00:53:32.320 this year. Like this is January 1st. 2023 is here. Are you prepared for it? Have you done

00:53:39.400 a lot of planning? This is my season when I start thinking about next year's planning for

00:53:44.160 2023. A psychology professor in California did a study on goal setting. She found that you

00:53:49.740 are 42% more likely to achieve your goals just by writing them down. So this is the season

00:53:56.740 to think about how you're going to be writing your business plan down. But here's the issue

00:54:01.680 with most business plans. It feels like homework. To most people, if you talk about business plan,

00:54:06.180 they think they're doing homework and it's back to school. And how many of us just love doing

00:54:09.840 homework? If you're like me, you probably don't like doing homework. Starts working on it end

00:54:14.280 of December. It's kind of too late. It's kind of like, I got to get a business plan. Fourth week

00:54:17.940 of December, you put an hour to do it just like as if you got something done. I'm going

00:54:21.620 to lose 20 pounds. I'm going to make this much money. I'm going to get a promotion. Boom.

00:54:25.340 It's rushed. You stop looking at it. By the beginning of February, too logical, not enough

00:54:30.700 emotion. It's over. That's 99% of people's business plan. That's how I wrote business plans

00:54:37.100 and I never looked at the business plan again until I realized what was missing in my business

00:54:42.220 plan. Do you think Rockefeller's treated his business and business planning that way? Do you

00:54:47.240 think any of these guys did it that way? Carnegie, Ford, any of the ones that made the money and

00:54:52.520 kept it with their families? What do you think they did differently? They had a life plan that

00:54:57.960 included the right building blocks. Once I structured my business plan with the 12 building

00:55:02.960 blocks, my life completely changed. Okay. And by the way, these building blocks, when I

00:55:06.940 explain to you, it's going to be different than what you've heard before because too often

00:55:11.920 everybody links a lot of logic to business plan. And most people don't realize that emotion

00:55:17.820 is what makes the business plan work, not the logic making a business plan work. Let

00:55:22.180 me explain to you too often. When you look at these building blocks on the left side, you

00:55:26.780 see the word skill. Many of us sit there and say, Oh my God, I got to learn how to sell.

00:55:30.280 I got to learn how to negotiate. I got to learn how to handle difficult conversations. That's

00:55:34.120 the skill I need. Yeah. But how are you going to improve your willpower? When it's Friday night,

00:55:39.400 you had a bad week. You didn't sell anything. Things didn't go your way, you know, and you're

00:55:43.940 like, wow, you know, whatever. I'm going to do it next week. And you still have that next

00:55:47.660 week mentality instead of let me get it done today. Your willpower is, I said, I'm going

00:55:51.900 to go to the gym this morning. I'm going to do it tomorrow. Every time you say tomorrow,

00:55:55.560 your willpower gets weaker. Every time you do it now, your willpower gets stronger. So yes,

00:56:01.060 you want to figure out a way to improve your skillset, but how are you going to improve your

00:56:04.640 willpower? You tell me anybody who won at the highest level, you'll see somebody that

00:56:10.540 has strong willpower in sports. They'll use the phrase. They will themselves into winning

00:56:15.680 the Superbowl. Hence Patriots against Atlanta Falcons. When they were down 28 to three, it

00:56:21.940 wasn't just skill that got them to win. Both sides of the team were skilled. One side had

00:56:27.800 a leader with willpower. His name is Tom Brady. Who's won seven championships. Can you imagine

00:56:33.700 what he's going through right now and how he's handling the two victories he had back

00:56:36.880 to back? How do you do that with the mess, marriage, personal life, FTX, and you've won

00:56:41.760 two games and you're four and five, but you're first place in your division because there's

00:56:46.360 nobody that's good in your division. Imagine how much willpower it takes to be Tom Brady

00:56:50.280 today. So next one, people, I got to figure out a way to how to write a plan. I need a right

00:56:55.180 plan. That's great. We'll teach you how to write a plan, but what's your mission? What

00:57:00.020 is the mission? You give me somebody on a mission, they'll figure out a way to write

00:57:03.540 the plan out. You give me somebody that's on a serious mission, you can't get in that

00:57:08.600 person's way. So instead of just trying to figure out a way how to write the right plan,

00:57:13.040 what's the mission? Systems. I need the right systems on how to process business. I need

00:57:18.620 the right systems on how to sell. I need the right systems on how to raise money. Great.

00:57:22.960 No problem. You can find all the systems, but what are your dreams? And I'm talking real dreams.

00:57:28.500 I remember being a guy who was broke $49,000 of debt in my Ford Focus at 23 years old,

00:57:35.200 driving around, giving a keynote speech, closing speaker at an event. There's nothing about me

00:57:43.660 that was a closing speaker at an event at 23 years old, but I'm giving the speech and it's

00:57:48.660 like, the next person we're going to bring up is Patrick B. David. I'll go, and I would get up.

00:57:55.340 Hey, thank you, John, for the warm introduction. Folks, it's great to be here with you. And I would

00:58:00.040 go into telling my story and I would play this role of a story I'm telling in my fifties and

00:58:04.400 sixties. I was 23 years old. I had a dream and it would get me so excited. I had a dream about,

00:58:12.040 you know, family, kids, life, America, Iran. I'm a Syrian. I'm Armenian. I got a lot of dreams,

00:58:19.340 your dreams. I was in DC yesterday, Washington, DC, giving a talk to this group of people in Calverton.

00:58:24.520 A small city with 17,000 people there. There's a few hundred people in this room and I'm talking

00:58:30.180 to these folks. I said, do you feel like your dream machines kind of been shut off for the

00:58:34.160 last couple of years? And then if yes, tell me why. When we all dreamers, what happened there?

00:58:39.560 You know, when you, when somebody's got a dream and they're chasing it, their pursuit of their

00:58:42.620 dreams, their eyes have a little twinkle in it. You see the fire. If somebody doesn't happen,

00:58:47.360 doesn't have it. They just look like it's just life, regular life. What are your dreams next?

00:58:51.800 Hey, I need capital. If I only had a million dollars, I would be able to start this business.

00:58:55.380 If I only had a hundred thousand dollars, if I only had $10,000, if I only had, it's the,

00:58:59.920 if I only had money is not hard to find a vision is you give me somebody with a real vision.

00:59:06.040 They're going to find the money. You give me somebody with a real vision with the right team

00:59:10.340 around them that people have bought into this vision. Trust me, money will show up. We had a real

00:59:16.000 vision when we started the insurance company. It was very simple. People thought I was crazy,

00:59:20.620 but the vision was real. All of a sudden, four years later, some guy comes and says,

00:59:24.500 Hey, I'll give you a million dollars. Cool. Four years later, another guy came in. Hey,

00:59:29.840 Oscar De La Hoya, Gabriel Brenner. These guys are interested in investing into the company.

00:59:33.400 No problem. Here's $10 million, 2017. Cause I'm going around telling people my vision

00:59:38.900 and we're growing the company. We've got great leaders in the company and boom. Well, who's this

00:59:43.580 Matt guy? This Sheena guy, this George guy, this Jose guy, this Vargas guy, this hook. Oh,

00:59:47.460 these guys got a real business. These guys got real leaders. This guy's got Tom Ellsworth.

00:59:50.860 This is awesome. This is crazy. 10 million. Hey, 35 million. Hey, few hundred million.

00:59:56.460 Because there's a vision. Capital showed up. Even when I was broke, if the vision was real,

01:00:01.160 money eventually showed up. Too many people just want to study their competition. Well,

01:00:04.960 let me see what the competition is doing in the real estate industry. Yeah, you can go get all the

01:00:09.280 stats. You can get all the data, but who's your real enemy? What do you mean by enemy? Do you have an

01:00:14.760 enemy? Robert Green was a friend of mine. He wrote a book, 40 Laws of Power, wrote another book called

01:00:21.120 33 Strategies of War. When I first got involved in business, I was very naive. I thought everybody

01:00:26.120 wanted to see me win. And I would say good things. And all of a sudden I started beating some of the

01:00:30.160 guys that were telling me I can win. And I noticed some of them turn. I'm like, wait, what happened

01:00:33.720 here? You were nice. Now you're talking behind my back. What happened there? Then I realized not

01:00:38.880 everybody wants to see you win. Okay. There's real enemies out there. So for two years, you know,

01:00:44.520 what's the one book I read every day and listen to the audio on replay for two years, 33 Strategies of

01:00:50.600 War. Because when I started an insurance company, I realized business is a form of war. Sports is a

01:00:57.260 form of war. America right now being number one, you think we have a lot of enemies? There's a form of

01:01:02.040 war. China wants to beat US and be number one. This war is not like a nuclear war we're talking about,

01:01:07.660 but business is war. Competition is okay. Having an enemy produces a different energy. A guy named

01:01:13.640 Michael Jordan knew how to identify his next enemy. You may need an enemy. You're bored out of your

01:01:18.580 mind right now. You don't have an enemy right now. Look, Pat, what's an enemy? An enemy isn't somebody

01:01:22.440 you want to hurt. An enemy could be a father that's no longer in the picture with you. You know, I

01:01:27.440 remember one time reading a story about Tyler Perry. When Tyler Perry made all the money and his dad showed

01:01:32.060 up, he said, man, you're so rich. I'm your father. I'm this, I'm that. He says, dad, here's what I'm

01:01:37.640 going to do. Listen to what Tyler Perry did. It's a very interesting story. I don't know if you know

01:01:40.840 this or not, Tyler. Tyler Perry, he's got a good name, by the way. Tyler Perry ends up buying his

01:01:48.520 dad a nice car, buys him a house, gives him some money with one caveat, never call me ever again.

01:01:55.380 I don't want you in my life. The years I needed you, you weren't there. Now I want you to feel my

01:02:00.360 pain. Think about that. You think a part of Tyler Perry building the place that he's built

01:02:05.520 and being the, I think he's a billionaire already, if not on his way, you think it's

01:02:09.980 just because he wants to make movies or you think there's an enemy where his father wasn't

01:02:14.540 there to support him and tell him, my son, I believe in you. You think a Steve Jobs who

01:02:18.280 was given for adoption doesn't think about the fact that how dare you give me up for

01:02:22.880 adoption? You think, you don't think that's a form of an enemy. What do you have to produce

01:02:27.960 that kind of fire for you? These are the kinds of things that you got to take inventory of.

01:02:31.520 We're going to spend a lot of time talking about this. Supporting cast, man, if I have

01:02:35.300 find the right recruit, the right running mate, it's going to be amazing. That's great. But

01:02:38.480 what kind of a culture you got? Is your culture the kind of place that people want to be around?

01:02:43.200 Do they want to stay late? Do they want to go home? Is it just like, well, clock in,

01:02:47.040 clock out, 459 club. I can't wait to leave. Boom. You're out of here. You're bored out of your

01:02:51.780 mind. Well, maybe we need a better culture where you're at. So these whole 12 building blocks,

01:02:56.340 I can talk about this for days on top of days because there's specific strategies on how to do

01:03:01.240 this year. But these are the 12 building blocks. So you heard three different types of planning,

01:03:05.420 financial planning, estate planning, business planning. Due to popular demand last year,

01:03:09.800 a lot of the businesses I consult said, Pat, can you put a course together for business planning?

01:03:14.600 I said, no problem. We did it last year. A hundred page workbook that gets sent to everybody

01:03:19.860 that registers and buys their tickets. It's on December 16 this year. Last year, we had people

01:03:24.860 from a hundred plus countries. This year will be the same as well. We're expecting a very big

01:03:29.200 turnout because right now I'm working on a book with Penguin Portfolio where we're talking about

01:03:33.680 how to write a business plan. That's going to come out next year. If you want to join me on this

01:03:37.360 webinar on December 16, click here, get registered so we can spend a day together and make 2023 the

01:03:44.540 beginning of the greatest years of your life. Go get registered. I'll see you there December 16th.

01:03:49.120 I'll see you there.

6 Ways to Create Generational Wealth And How To Pass It Down To Your Kids

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