Valuetainment - Episode 194： Why The Rich Get Richer

00:00:00.000 I'm Pat Trebedev, your host of Alutainment.

00:00:19.080 Today we're going to talk about why the rich keep getting richer.

00:00:22.120 So listen, the topic of rich getting richer is something you hear about on CNN, on Fox,

00:00:26.320 on MSNBC, in schools, teachers, professors, parents, business, everywhere.

00:00:30.000 These rich people, they control all the wealth, they're so greedy, all they want is power,

00:00:36.040 cars, Lambos, Ferraris, castles, mansions.

00:00:39.260 I mean, how much more can you have?

00:00:41.280 Why has Bezos got $145 billion?

00:00:44.420 He can live off of $100,000 of your income.

00:00:46.640 And then on the other side, this is why the poor doesn't have money, because they don't

00:00:51.220 study and they don't read books.

00:00:52.380 And why don't you pick up a business book and find out how money works?

00:00:55.200 Why do you blame the rich?

00:00:56.300 Why don't you pick up some of their habits that they have?

00:00:58.140 Why don't you work more than 40 hours a week?

00:01:00.200 And so this thing goes back and forth, right?

00:01:02.240 And so before I get into the 10 reasons why the rich keep getting rich, I'm going to give

00:01:05.260 you some data.

00:01:05.840 I'm going to give you some data for you to be looking at.

00:01:07.740 And hopefully this will help out with the argument, because in my opinion, I believe the gap

00:01:13.020 of rich getting richer is just going to get wider and wider and wider.

00:01:16.760 And you'll find the widest as I go through some of these numbers.

00:01:18.800 So if we were to take the top 1% richest people in the world, not America, in the world,

00:01:24.340 top 1%, you would need to have somewhere around $753,000 to your name.

00:01:30.300 Now having said that, data came out breaking down which country has the most people with

00:01:35.800 $753,000 to their name.

00:01:38.160 And here's what the top 10 countries looks like.

00:01:40.600 At number 10, Korea has 1 million people with $753,000 to their name.

00:01:45.780 Canada, 1.6 million.

00:01:47.340 Australia, 1.7 million.

00:01:49.640 Italy, 1.9 million.

00:01:51.120 China, with 1.4 billion people living there, they only have 2.7 million.

00:01:56.060 Germany, 2.8 million.

00:01:57.560 France, 2.8 million.

00:01:59.060 UK, 3.3 million.

00:02:00.520 Japan, at number 2, with 4.5 million.

00:02:03.920 And you ready?

00:02:04.560 Number 1, America, 19.1 million Americans have a minimum of $753,000 to their name.

00:02:14.420 Which, by the way, here's an interesting stat.

00:02:16.260 If you take the rest of the countries on the top 10 list, and you add them up, they still

00:02:22.640 don't have as many people that have $753,000 to their name as America does.

00:02:28.200 And so the question becomes, why is that?

00:02:30.140 By the way, most of the other countries run a socialistic economy.

00:02:34.560 America still, till today, runs a capitalistic economy, which gives the average guy like

00:02:40.340 me to go out there and make money, and hey, all of a sudden you have $753,000 to your name

00:02:45.180 because the market allows people who bring value to go get that kind of money for themselves.

00:02:50.300 If our wealth was divided based on U.S. land, here's what it would look like.

00:02:54.380 1% of America would own this part of the land.

00:02:58.320 9% would own this.

00:03:01.260 30% would own this on the bottom.

00:03:04.100 20% would own that bottom part you see right there, it looks like Texas.

00:03:07.500 And 40% of America would own that little red dot you look at the bottom.

00:03:13.660 So you know how you look at that red dot?

00:03:15.020 That red dot, my family, my mother, my sister, my dad, we were a dot of the red dot.

00:03:19.820 Let me explain.

00:03:20.920 We came to America with barely $5,000 to our name.

00:03:25.120 I mean, literally, we were living with family, and then finally we found a place to live that

00:03:29.760 was one bedroom.

00:03:30.760 We had nothing to our name.

00:03:32.320 We didn't own a car.

00:03:33.400 We had nothing.

00:03:33.920 I mean, I walked to school every single day from Broadway all the way up Chevy Chase to

00:03:39.040 Wilson Jr. High School because nobody dropped us off.

00:03:41.640 Everybody's kids, their parents would drop us off.

00:03:44.000 I never got, as a matter of fact, I've never been dropped off to school.

00:03:48.380 Let me say this again.

00:03:49.140 I've never been dropped off to school in America, ever.

00:03:52.200 From seventh grade on, I've never been dropped off to school.

00:03:54.760 We didn't have that kind of money.

00:03:56.560 And so I worked at Burger King.

00:03:57.640 I worked at Bob's Big Boy.

00:03:58.480 I worked at Haagen-Dazs.

00:03:59.360 I went to the military.

00:04:00.240 I had, at one point, a GPA.

00:04:01.580 I stayed in the Army.

00:04:02.540 I was going to stay 20 years.

00:04:03.860 I got out.

00:04:04.420 A friend called me.

00:04:05.520 Hey, come and try something out.

00:04:06.680 I got into sales.

00:04:07.580 And I'm looking at all these things.

00:04:08.740 I see these nice cars on movies with Tom Cruise.

00:04:11.880 And they're stealing this Ferrari.

00:04:13.440 Or I'm watching, you know, Gordon Gekko, Buttbox, and all these cars, and these homes.

00:04:17.660 And man, what if one day we can live in a big house?

00:04:20.500 What if one day we can have a Ferrari, a Lambo?

00:04:22.780 Man, we were dreaming on all this other stuff.

00:04:24.700 And there'd be two different sides, friends.

00:04:26.180 By the way, in a military at our barracks, one group would say, well, you know, these rich people,

00:04:30.420 man, they're greedy.

00:04:31.200 They abuse the system.

00:04:32.140 They do this.

00:04:32.580 They do that.

00:04:32.920 Why did they do this?

00:04:33.740 And this other side, there was a group of us.

00:04:35.420 Me, Bradford, a couple of us.

00:04:36.780 Yeah, but what if we could do this?

00:04:38.120 Well, who cares?

00:04:39.000 We should go do this one.

00:04:39.820 We were dreaming, right?

00:04:40.720 We were dreaming.

00:04:41.180 What if this could take place?

00:04:42.480 I realize the big 1% of America, the top 1% of America, they're curious.

00:04:48.000 They want to find out how to get there.

00:04:49.420 So just like I said earlier that the gap is going to get wider and wider, I am telling you

00:04:53.400 that $90 trillion very soon is going to be $200 trillion, $500 trillion.

00:04:57.920 And the only question you've got to be asking yourself in the next 5, 10, 15, 20 years,

00:05:01.720 what piece of that's going to be yours?

00:05:03.020 You'll see why I'm saying this as I go through these 10 points.

00:05:05.580 Point number one is exponential growth.

00:05:07.960 By the way, this point alone is the reason why the gap's going to get wider and wider and

00:05:11.880 wider.

00:05:12.180 You can skip everything else.

00:05:14.080 This one point alone I've talked about in another video called 20 Rules of Money.

00:05:17.960 This is why the gap's going to keep getting wider and wider and wider.

00:05:21.500 Look, very simple.

00:05:23.360 Say I have $10,000.

00:05:24.860 Say you have $10,000, okay?

00:05:26.980 We are both 25 years old.

00:05:28.940 Both of us have $10,000.

00:05:30.320 I choose to put my $10,000 in an account that gives me 3%.

00:05:34.400 You choose to put $10,000 in an account that gives you 12%.

00:05:38.440 It's only four times more.

00:05:40.640 So meaning whatever you get, you should only be four times more than I should be, right?

00:05:44.180 So let's take a look at what our money looks like 24 years later.

00:05:47.100 24 years later, my $10,000 barely becomes $20,000.

00:05:52.820 You ready?

00:05:53.580 Your $10,000 is officially $160,000.

00:05:58.380 That's eight times more, even though the interest is four times more.

00:06:01.540 Now let's continue to go 48 years and see what happens.

00:06:04.580 24 years after that, my $20,000 becomes $40,000.

00:06:08.840 You ready to see what happens to $160,000?

00:06:11.080 It is now $2.56 million.

00:06:15.200 That's $2.52 million more than me.

00:06:18.140 By the way, let me say this number.

00:06:19.960 So I was getting 3%.

00:06:21.180 You're getting 12%.

00:06:22.460 You're only getting four times more interest than I am.

00:06:25.540 You realize how much your money is going to be more than mine by 48 years from now?

00:06:30.140 64 times more money.

00:06:32.340 64 times more money.

00:06:34.000 So think about it this way.

00:06:35.060 If I continue with the same habit of getting 3% for another 24 years, look what happens.

00:06:40.060 And another 24 years, what happens?

00:06:41.940 And another 24, this is why the rich keeps getting richer.

00:06:44.700 So unless education in high schools and junior high schools and colleges change and start

00:06:51.660 teaching these kids about the basics of money, the disparity ain't stopping.

00:06:56.400 And there is nothing anybody can do about it, including CNN, MSNBC, and half the professors

00:07:01.560 at these universities, because they keep bitching about this stuff, but no one's talking about

00:07:05.260 money.

00:07:05.800 No one is talking about, let me teach you how to get 12%.

00:07:08.520 Let me teach you how to get 8%.

00:07:10.020 Everybody just complaining, whining, without any solutions.

00:07:12.820 Point number two.

00:07:13.480 This one's very easy.

00:07:14.400 It's positioning.

00:07:15.180 Once you get out of college, once you get out of high school, you have a choice on what

00:07:18.580 you want to do.

00:07:18.920 You can go get a regular job.

00:07:20.080 You change your, you trade your work for hours.

00:07:22.340 I make 15 bucks an hour, 20 bucks an hour, $30 an hour, and that's fine.

00:07:25.040 And a lot of America's just chasing that.

00:07:27.280 They were paying me $16 here.

00:07:28.760 Guess what I got?

00:07:29.320 I got $22 here.

00:07:30.780 And they were paying me $22.

00:07:31.800 I got a better job and I quit.

00:07:33.000 I'm making $24 here.

00:07:34.300 I was making $24.

00:07:35.160 I'm making $32.

00:07:35.760 They're chasing this, right?

00:07:37.760 And what they don't realize is that's not how you create wealth.

00:07:40.640 There's got to be an element of you saying, I know for a fact if I position myself here

00:07:45.720 and if I can become an entrepreneur or if I can get equity or if I can get ownership

00:07:49.780 and how do I get that part, this can lead into something bigger for myself.

00:07:53.720 That's why I say positioning.

00:07:55.340 If you keep trading hours for a dollar that you're getting paid, you're going to be limited.

00:07:59.200 There's got to be a part where you go out and position yourself properly.

00:08:01.700 I've said this story many times.

00:08:03.020 I live in wealthy communities.

00:08:04.300 And in these wealthy communities, everybody I talk to, I ask them, how did you make your

00:08:08.400 money?

00:08:08.720 You know, I made my money because I started a business.

00:08:10.680 Great.

00:08:10.980 I made my money because I was part of a startup.

00:08:13.420 And guess what happened to this startup?

00:08:14.760 I was there for five years.

00:08:15.980 I ended up getting peace to the company.

00:08:17.520 Five years that the company was bought by this company for a billion dollars, I got my

00:08:21.060 $6 million.

00:08:21.800 I got my $800,000.

00:08:23.080 I got my $2.2 million.

00:08:24.320 It's positioning.

00:08:25.320 So wherever you're working at, ask yourself, the positioning of the environment you're in,

00:08:30.280 is it constantly going up where there's a possibility for a bigger upside, or is it linear?

00:08:34.900 Hurry up and change it.

00:08:36.720 And if you choose not to change it, then don't be surprised if you don't have $753,000 because

00:08:41.560 you chose the position you're currently in.

00:08:43.400 Point number three is long-term thinking.

00:08:44.840 The best example of long-term thinking is one of the richest men in the world, and that's

00:08:48.320 Warren Buffett.

00:08:48.940 I want you to look at this chart that I'm going to put up, and the part I want to look

00:08:52.640 at is how his wealth grew from 18 years old to his $81 billion today that doesn't include

00:09:00.180 the billions of dollars that he's given away to charity.

00:09:03.860 So let's take a look at this guy named Warren Buffett, one of the richest, wisest, smartest

00:09:07.860 investors in the world.

00:09:09.400 How did he amass his wealth?

00:09:10.620 So at the age of 19, he had $10,000 to his name.

00:09:13.480 The first million dollars he made, he was 32 years old, give or take.

00:09:16.380 Fast forward to the age of 40 years old, you'll notice he had a $34 million net worth, right?

00:09:21.440 Now watch what happens here from $34 million.

00:09:23.500 The next year or two, it goes from $34 million to $19 million.

00:09:27.860 I think as much as we spend time talking about how rich this man is, we forget to talk about

00:09:32.940 this moment in his career.

00:09:34.480 Let me explain to you why.

00:09:35.420 Do you know how many people in the world, when they drop from $34 million to $19 million,

00:09:40.640 that's 50% of the wealth that's gone, what do you think most people do?

00:09:43.580 They cash out, they take their money out, they listen to news.

00:09:46.700 The news is saying the world's coming to an end, war is coming through, this is what's

00:09:51.480 going to happen, that's what's going to happen.

00:09:52.900 Price of oil, oh my gosh, panic, panic, panic, panic, panic.

00:09:56.160 Everyone reacts.

00:09:57.200 This guy says, I trust my discipline because I'm a long-term thinker.

00:10:00.740 And watch what happens here.

00:10:02.280 He goes from $19 million to $67 million to $1 billion at 56 to $81 billion today.

00:10:11.720 Let me compare his net worth to some of the countries in the world.

00:10:14.660 Watch this here.

00:10:15.480 Guatemala, he's got more than Guatemala.

00:10:18.100 Costa Rica, Luxembourg, Slovenia, Serbia, Tunisia, Ghana, Uruguay, Kenya, Ethiopia, Lebanon,

00:10:24.240 Bulgaria, Uzbekistan, Croatia, Lithuania, Warren Buffett is beating those countries.

00:10:30.500 One human being is beating countries.

00:10:33.680 I wanted to go back to Forbes 400 list back in 1982 when it first got started.

00:10:38.440 Here's what it looked like.

00:10:39.420 So the total net worth back in 1982 of Forbes 400 was $93 billion.

00:10:46.160 You took all the 400, added it up, it was $93 billion.

00:10:50.080 And the richest man on that list, Daniel Keith Ludwig, he had a net worth of $2 billion.

00:10:56.860 By the way, here's the kicker.

00:10:58.440 You ready?

00:10:58.980 Daniel Ludwig wouldn't be on today's Forbes 400 list.

00:11:03.500 And out of the 400 names back in 1982, only 36 names are still on the list today, 35 years

00:11:09.060 later.

00:11:09.400 So now, let's take a look at what the total net worth of today's Forbes 400 is.

00:11:13.280 You ready?

00:11:14.000 From $93 billion to today, $2.5 trillion.

00:11:19.760 That's five doubles.

00:11:21.440 Not just 500%, that's five doubles.

00:11:25.020 93 billion times 2 times 2 times 2 times 2.

00:11:28.960 It gives you $2.5 trillion, which tells us 35 years from now, by 2053, the Forbes 400 list

00:11:38.100 total net worth is going to be $80 trillion.

00:11:41.520 So the only thing you ought to be thinking about is the following thing.

00:11:43.740 If 35 years from now, that number's going to be $80 trillion, what piece of that $80 trillion

00:11:48.580 is going to be yours?

00:11:49.560 What piece?

00:11:50.040 Because think about it, if that $80 trillion is only 400 people in America, what do you

00:11:54.500 think the entire net worth, the entire wealth of America, 330 million people, is going to

00:11:58.520 be in the next 35 years?

00:11:59.860 You know how big the opportunity is?

00:12:01.500 For the right person watching this, if you listen to point number three and you say,

00:12:05.020 look, exponential growth was number one.

00:12:07.040 Got it.

00:12:08.060 Positioning was number two.

00:12:09.560 Got it.

00:12:10.360 Long-term thinking was number three.

00:12:12.920 If you turned off the video today and you didn't watch the rest, those three principles

00:12:17.620 is what makes these guys the kind of money that they make.

00:12:21.140 So can you really think long-term or immediately something that goes wrong, you disappear and

00:12:25.720 you go panic and you go back to your corner and say, oh my gosh, I can't believe this is

00:12:28.740 happening to me.

00:12:29.780 But for those of you that are watching this that are saying, I'm going to be disciplined

00:12:32.720 to be a long-term thinker, you're going to put up numbers, experience certain things

00:12:37.020 in life that you thought were fantasies.

00:12:39.180 But it's going to happen to a few of you.

00:12:40.660 Number four.

00:12:41.560 This one I'm not going to spend a lot of time on because it's very self-explanatory.

00:12:44.740 Regret minimization.

00:12:45.800 I've spoken about it in a couple other videos.

00:12:48.100 Minimize the number of regrets.

00:12:49.460 When you look back, you don't want to be able to say, I messed up here with drugs.

00:12:52.440 I did this here.

00:12:53.100 I did the divorce.

00:12:53.800 I did that.

00:12:54.260 Oh my gosh, I got to do that.

00:12:55.620 So many dumb mistakes I made that you could have prevented yourself from making.

00:12:59.800 For some of you that are saying, I feel bad because I just went through a divorce three

00:13:02.760 years later.

00:13:03.440 You make me feel bad.

00:13:04.880 Our current president is on his third marriage.

00:13:07.460 You're okay.

00:13:08.300 Just minimize the amount of regrets that you're going to have because it doesn't stunt the momentum

00:13:12.840 that you have.

00:13:13.440 Your best friend in accumulating wealth is momentum.

00:13:16.860 Don't get in the way of momentum.

00:13:19.140 Water it so it gets bigger and bigger and bigger.

00:13:22.020 Number five.

00:13:23.320 Specialized skill.

00:13:24.320 Very simple.

00:13:25.280 Most people generalize.

00:13:26.580 This is specialized skill.

00:13:27.620 You got to figure out something that you specialize in.

00:13:30.020 What is it?

00:13:30.440 Communications, selling, finance, real estate, hedge funds, stocks, bonds.

00:13:34.520 What do you specialize in?

00:13:36.240 Specialize in a skill.

00:13:37.240 Most of the guys that we talk about, they specialize in a skill.

00:13:40.760 Warren Buffet investing, Trump, wealth, real estate.

00:13:43.720 You know, you look at Zuckerberg, social media.

00:13:46.140 He understands the concept of the internet.

00:13:47.860 He understands what he's doing with that.

00:13:49.380 Everybody has something they specialize in.

00:13:51.940 What's your specialization?

00:13:53.280 Number six.

00:13:54.180 Anybody can learn this concept here.

00:13:56.040 And this concept here is your contact.

00:13:58.180 Networking.

00:13:58.580 Look, I can take my business back to 1999 when I went to a man's house who was a millionaire.

00:14:03.740 And he had a big party and I made a lot of relationships.

00:14:05.980 After the relationship, two years later, he introduced me to a guy that introduced me

00:14:09.460 to a guy in 2003.

00:14:11.340 That contact is what led me to making $30 million just off of one sale.

00:14:15.260 You know, I went to an insurance conference a few years ago.

00:14:17.360 Met a guy.

00:14:18.200 We didn't hit it off.

00:14:18.980 We had a terrible call together one time.

00:14:20.800 I'm talking a five-minute call that was horrible, horrible call.

00:14:24.160 I said, we'll never do business with this guy.

00:14:26.060 He came back saying, I still want your business.

00:14:27.580 What can we do to make this work?

00:14:29.180 We made it work.

00:14:30.120 Fast forward, he's the one that ended up putting me in contact with De La Hoya and a couple

00:14:34.280 other guys that raised $10 million for a business.

00:14:36.520 These were contacts.

00:14:37.640 We networked.

00:14:38.460 We went through it.

00:14:39.180 You look at Zuckerberg.

00:14:39.980 He goes to Harvard, meets a kid named Edward, meets the Winklevoss brothers that leads to

00:14:44.320 Facebook.

00:14:44.820 You look at Warren Buffett who networks and meets a guy named Charlie Munger who he thinks

00:14:49.120 is smarter than he is and that bring those two together to build the empire that they

00:14:52.960 built.

00:14:53.400 Everything's about networking in your contacts, especially if you want to increase your wealth.

00:14:56.920 Let me put it to you this way.

00:14:58.100 It is very difficult for a billionaire to befriend somebody that's worth $20,000.

00:15:02.200 Very difficult.

00:15:02.860 You know why?

00:15:03.360 Because the experiences are different and the level of thinking is different.

00:15:06.560 If you hang with a billionaire, you're $20,000, somehow, someway, it's going to get higher.

00:15:10.460 Somehow, someway, this thing gets higher because you're borrowing their thinking.

00:15:13.200 You're borrowing who they know.

00:15:14.200 You're borrowing their association.

00:15:15.260 So, if networking is an area you struggle with, I made a video titled, How to Network

00:15:19.620 Like Casanova.

00:15:20.580 Go click on the link below and watch that video, How to Network Like Casanova.

00:15:24.640 Number seven, leverage.

00:15:26.160 Everybody watching this leverages other people.

00:15:28.280 Let me explain to you what I mean by this.

00:15:29.480 A father watching TV or football on a Sunday leverages son and says, son, get me a beer.

00:15:34.180 That's leverage.

00:15:34.740 A person who goes to a restaurant and sits to have food with another friend leverages

00:15:38.840 the waiter or the waitress and says, can you please give me a Diet Coke and a bone and

00:15:42.280 ribeye and lobster mac and cheese and that's for me.

00:15:44.860 Thank you so much.

00:15:45.480 You leverage the waiter or the waitress and in return for the leverage, you pay 20 points,

00:15:49.860 20% of the bill to that waitress. 0.98

00:15:51.660 That's leverage.

00:15:52.560 Everybody leverages.

00:15:53.640 Except the wealthy and the rich.

00:15:55.340 Do it at the highest levels.

00:15:56.500 Let me explain to you.

00:15:57.280 You can only work 20 hours in a day.

00:15:58.840 The hardest working person in the world is limited to 24 hours in a day.

00:16:02.020 You can't work more than 24 hours in a day.

00:16:03.800 But they realize, if you really want to leverage time, if I want to work 2,000 hours in a day,

00:16:09.000 I need 250 people who work 8 hours in a day.

00:16:12.320 It's basic math.

00:16:13.580 20,000 hours in a day, I need 2,500 employees.

00:16:17.080 200,000 hours in a day, I need 25,000 employees.

00:16:19.820 And they keep leveraging over and over and over and over again and it gives them an unfair

00:16:25.180 advantage over everybody else.

00:16:27.340 However, there's not a single person watching this that can't apply that concept idea because

00:16:30.740 you're already doing it at the lower level.

00:16:32.520 Why not do it at a higher level?

00:16:33.600 Number eight, this next one is about reinvesting their money.

00:16:36.580 Meaning, they make their money work for them 24-7.

00:16:39.120 I did a video titled, How to Double Your Money.

00:16:41.580 This is the area where they master on how to double their money constantly over and over

00:16:45.800 and again.

00:16:46.280 Money doesn't sit for too long for them.

00:16:47.920 And if it is, it's intentional because they believe a downturn is coming around the corner

00:16:51.560 or they buy puts because they believe the market's about to go down.

00:16:54.780 But money's always working for these guys.

00:16:56.600 It doesn't just sit around, you know, allowing the bank to use that money to make money.

00:17:00.700 They make that money work for them. 0.51

00:17:02.580 Number nine, Sam Walton had four kids.

00:17:04.740 You know, his poorest kid today is worth $39 billion.

00:17:08.080 Struggling financially.

00:17:09.520 Poorest kid today is worth $39 billion.

00:17:11.580 So, is this something where, you know, the media comes back and politicians come out and say,

00:17:16.740 it is not fair for a kid to get all the money from his daddy or his mommy.

00:17:21.280 Wait a minute.

00:17:21.980 Let me ask you this question.

00:17:23.280 If your mom or your dad was worth $160 billion, would it be unfair if she gave you $40 billion

00:17:29.460 of it?

00:17:29.700 Would you be upset?

00:17:30.360 Would you say, mom, it's not fair for you to give me $40 billion?

00:17:32.920 It's always unfair if it's the other guy's kid, right? 0.86

00:17:35.220 Why don't we position ourselves better so our kids get the wealth? 1.00

00:17:38.100 Because I watched a video the other day.

00:17:40.140 A guy was in, you know, southern part of Chicago, a bad community, was teaching all these guys

00:17:45.840 that are trying to make their lives better.

00:17:47.420 He was teaching them the fact that life insurance transfers wealth to their families.

00:17:52.020 So rich people buy as much life insurance as they can because when they die, their kids

00:17:55.920 get $10 million, $8 million, $6 million, $5 million.

00:17:59.160 And the kid has an opportunity and advantage against everybody else that he's competing against.

00:18:03.680 What's wrong with that?

00:18:04.460 They understand wealth transfer.

00:18:06.360 This is why you see families that become richer and richer and richer because the wealth keeps

00:18:10.160 transferring to the next generation over and over and over again.

00:18:13.040 Something everybody watching this can do.

00:18:15.020 You just got to be intentional about it.

00:18:16.480 And last but not least, number 10.

00:18:18.100 I've been talking about this word in a lot of videos lately, whether it's with Arthur

00:18:21.600 Laffer, the former economist for Ronald Reagan, George Bush, Jack Kim, Arnold Schwarzenegger.

00:18:25.440 We talk about this topic a lot, whether it was with the mayor of Frisco, how they took

00:18:30.380 the city from 5,000 people back in 1990, 1991 to 180,000 people.

00:18:35.200 Or whether it was Jerry Springer or Dennis Prager, we talked about this topic and that

00:18:39.620 is taxes.

00:18:40.620 I'm going to keep talking about taxes until you pay attention to taxes because it's a

00:18:44.980 big difference.

00:18:45.600 Let me explain to you.

00:18:46.420 In the state of California, if you got a million dollar bonus, they tax you at 50%.

00:18:50.820 Half a million is gone.

00:18:51.900 If you're a realtor, you make a million dollars in the state of California as a realtor, they

00:18:56.360 take 35%.

00:18:57.640 You keep $650,000, they take $350,000.

00:19:03.300 All of these guys in Silicon Valley who say, tax everybody, tax the people, this is in,

00:19:08.140 this is that, all the stuff that they say about raising taxes, they only give tax 22%

00:19:11.920 because it's capital gains.

00:19:13.720 Taxes is about positioning.

00:19:15.800 How you position yourself to pay the lowest amount of taxes possible.

00:19:19.500 To the realtor in California that pays 35%, guess what?

00:19:22.560 If you were in Nevada, you would have saved yourself 13.3%.

00:19:26.340 If you were in Texas, if you were in Florida, you would have saved yourself 13.3%.

00:19:30.760 What's 13.3% on a million dollars?

00:19:33.360 $133,000.

00:19:34.420 Over a 10-year period, $1.33 million.

00:19:36.980 How much is college education?

00:19:38.520 Say $250,000 for the best schools.

00:19:40.320 You can have six kids if you want and you can still afford to send them to that best school

00:19:43.420 because of taxes.

00:19:45.140 They pay attention to taxes.

00:19:47.820 And the rest of the world doesn't.

00:19:50.240 Thanks, everybody, for listening.

00:19:51.580 And by the way, if you haven't already subscribed to Valuetainment on iTunes, please do so.

00:19:56.180 Give us a five-star.

00:19:57.480 Write a review if you haven't already.

00:19:59.080 And if you have any questions for me that you may have, you can always find me on Snapchat,

00:20:03.160 Instagram, Facebook, or YouTube.

00:20:05.120 Just search my name, Patrick MidDavid.

00:20:07.020 And I actually do respond back when you snap me or send me a message on Instagram.

00:20:11.820 With that being said, have a great day today.

00:20:13.760 Take care, everybody.

00:20:14.480 Bye-bye.

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Valuetainment - October 23, 2018

Episode 194： Why The Rich Get Richer

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