Hey everyone Me: Kevin Here this is a message to all investors in my opinion what going forward we should be thinking about to make sure we can maximize our wealth going into 2023. So rather than a financial news update in terms of what's going on today I Believe the information in this video will be quite useful for you for many months in the future. Now keep in mind even though I am a licensed financial advisor, I can I give you personalized Financial advice so we'll call it generic Financial Advice Okay, let's get started. So the first thing that I would consider right now where we are at the end of 2022 is there is a lot of fear and uncertainty and doubt in markets And the very first question you have to ask yourself is do you have the faith that our economic structures will be stronger and better for the rest of the decade than they are here in 2022.? Now of course there's the possibility that things may get worse before they get better. and I think people are 50 50 on that and that's okay. but I I would say probably 90 percent of us watching agree that well you know things will probably end up working out Okay, so we have to position ourselves in such a way that we get to be a part of the rebound. and I think that's the most important thing for us to think about right now is not, uh, what's our net worth today compared to last year? Rather, what can we do today with whatever we have or whatever's left and make the best of it so that when that next upswing comes, you're on the right side of that upswing. Think about this. Let's say you had a really high net worth in 2006 and all of a sudden you're in 2009 going well. Damn this sucks. The worst thing you could have done would have been to give up to stop working hard to get out of markets and sit on the sidelines because you would have missed the run from 2009 to potentially 2021.. in fact, when I started making YouTube videos, well I made my First videos back in in 2010 and 11 and some throughout 13, 14, 15. But when I really started, uh, more full-time working YouTube was around 2017 18, 19.

and boy oh boy, every day there were folks complaining about how terrible things were in the economy and how investing is horrible and of course some of the best investment returns ever were made after that 2019. towards the end 2020 2021, the entire bull market that we've had essentially since 2009 and really the the fact was investing in America was always the best choice and not trying to trade America But investing in America for the long term was the best choice. whether that was through real estate or through stocks or whatever investment you're making into yourself. And so I think as investors. One of the first things that we want to think about as we get towards the end of the year here is okay, practically how can we prepare what should we potentially consider doing next? So one of the first things that frequently is done in the November December season is we start thinking about minimizing our taxes for 2023. and one of the things that I really want to caution against is the desire to spend a lot of money on equipment. or you know, expansion towards the end of this year, where you're going to be hooking yourself into substantial monthly payments for 2023.. I Think you want to go into 2023 with as little overhead as possible. Let me give you a few examples. So sometimes what people do towards the end of the year is they spend a lot of money on solar systems for their home and they calculate a seven year. Break Even Well, you do that, your you're You're potentially tying up a lot of capital towards the end of this year, where markets may be close to their bottom for the sake of a seven year break even. And if you figure we might be on a more upside trajectory sooner rather than later, you might want to have more of that liquid available for other purposes. So I'm not a big fan of at this point in the cycle making big investments in to your home. I Think some of the worst Investments you can make right now are into your home, a new kitchen, a bathroom, remodel, batteries for your home solar panels. Now is not the time for that. Wait for the tax credits to come out over the next few years and wait for some of these companies to start begging for customers rather than us begging for them. You look at Generac and face people are begging them to get these products. Right Now now's not the time to do that. You look at another tax deduction people like to do towards the end of the year, especially businesses is they like to buy boats, planes, and cars. especially cars over six thousand pounds. Uh, planes up to any amount of money and uh, although that's really going to appeal to a very small percentage of people and and boats up to a five hundred thousand dollar deduction in general. When you look at that, it's like, well, wait a minute, those are some big deductions I could get I Mean you could write off 100 percent of a plane on your federal taxes. You spend 10 million dollars on a plane. You you could Offset You could basically save four million dollars in federal income taxes. It's insane. I Mean obviously talk to a CPA about all this stuff. But what you do when you hook yourself into these big expenses cars, boats, planes is you're setting yourself up for a big load of debt in 2023. so you're gonna get a nice tax benefit, but now you're setting up yourself for debt that you're going to carry into 23, 4, 5, 6. And what happens then? Well, now your debt to income ratios are skewed and it's harder to get into real estate in the future. It's harder to finance things that are actually going to make you money in the future, rather than what we call butter purchases. Now, people regularly like to justify butter purchases because of the tax write-offs, but you have to be very, very careful because those tax write-offs help you for one year, even though you might be signing up for 7, 10, 15 30 years of debt. so you have to be very careful with that now. Uh, so I'm not the biggest fan of spending a lot of money at the end of this year because I think this is more of the time where we want to be thinking about positioning ourselves income wise and business-wise And investment wise. So what do I mean by that? Okay, so if you are employed or you're a self-employed entrepreneur, my opinion is you want to be in a situation now where the first thing you do is you solidify your primary source of income. You might not be able to do that. You could be in a business where your income is uncertain. For example: I don't know uh what? YouTube is going to pay in YouTube ad Revenue next year. So I have to be even more careful with decisions like hiring and spending and monthly payments because I can't be certain what my income will be in the years in the future. That's different if you have a salary though. If you have a salary, you have the risk of potentially getting fired, so you've got to evaluate. Okay, what happens if my income suddenly plummets, You don't want to be stuck. Uh, you know, drowning in debt up to your eyeballs. Because now it's going to be very, very difficult for you to actually be a winner on the upcycle, right? And we want to be winners on the the upcycle. So securing your income, securing your number one primary source of income is probably the most important thing to consider. Now and ask yourself, how can you increase that form of income if you are someone who is a salary. one thing that you could consider doing is starting a side hustle. This is actually something we talk a lot about in the Elite Hustlers course which comes out on Black Friday Of course all the programs I'm building your wealth link down below are having a 60 off sale for Black Friday This is the best pricing you're going to get. The pricing will never be lower and we're adding a bunch of new lectures. Not only is the Elite Hustler's course coming out on Black Friday, but uh, the existing courses are also getting free updates so if you're already a member, you'll get the benefit of that. always increasing book of content. But we have to think, if you are on a salary, something you might consider actually doing is starting a side hustle that is actually going to produce income for you. You don't have to spend a lot of money on a side hustle A lot of people. The first thing they do when they think side hustle is they think, oh, okay, I need to go out there and I need to start spending money on attorneys and I need to get CPAs and Llc's going and I got to do all this crazy stuff. Look, when you start a side hustle, you go to Hiscox, you get some insurance. Stop worrying so much about the liability, Do the right thing, but focus on making money when you focus on making money, uh, and actually increasing your income on the side. Now, you can also take advantage of, uh, tax benefits that might only be applicable to entrepreneurs rather than, uh, someone who's salaried, right? You'll be able to offset, uh, some of your expenses for things like, uh, whether it's phones, whether it's computers or whatever. You can take many more tax benefits as an entrepreneur than as you can if you're on a salary, so consider that. That doesn't mean you want to lose your primary source of income. In fact, the most important thing you want to do is strengthen that number one source of income. Remember that a lot of folks when they get excited about something new like a side hustle, they forget that. Wait a minute. My first income is paying me. Let's say, eight thousand dollars a month. But I Really love my side hustle. It pays me 500 a month? Yeah, But how much harder is it for you to go from 500 a month from your side hustle to two thousand dollars a month, which is an extra fifteen hundred dollars? Then how much harder would it be to go from eight thousand dollars to maybe ten thousand or eleven thousand dollars of income, right? Usually it's easier to increase that first line of income, and I'm a big fan of focusing on increasing that Top Line of income. And one of the things to remember is many, many, many jobs will pay you. Oh, it's loud over here. many many jobs will pay you over six figures. If you just have a license that nobody else is willing, capable, or able to get, think about it. You go get a Series 65 license since you could immediately start working for a registered investment advisor. and you'll get educated by them, right? But you start learning how to sell investment products and managing other people's money. Of course, you'll work under somebody else like you're working for a broker like a real estate agent. If you, uh, get yourself not only a Series 65 license, but you become a CFA all of a sudden. Now your your next level on on finance or Wall Street uh but that's not even so necessary I mean there are people who, uh, become. you know they go to nursing school for a couple years and they get into anesthesiology and these uh, nursing anesthesiologists they make. Sometimes they start out at 200k a year and then they're going to three 400k. So personally, I always think now is the time where you want to be thinking to yourself, wow, how can I expand my income now? Uh, and in these dark times, how can I increase my value to my employee or employer or to myself And I think Oftentimes we forget that it's not just about asking for more money, it's about providing more value to your boss or to your own company and having more certifications or licenses to justify more income. So so that's something I would consider next. I Believe as an investor, Once you've secured your income, you've lowered your expenses. You're not going crazy with with, uh, you know, trying to spend money on assets that are depreciating assets. you know, butter as we call them things that Melt Away over time. Once you get away from that, you really want to be thinking in my opinion of investing where it makes sense for you. if you're an older individual that might be investing in treasury bonds, take the guaranteed four and a half percent you can get right now on some of these treasury bonds ladder a portfolio. it's very simple to do go to Treasury Direct.gov and you can learn a lot about investing in treasuries and getting a risk-free return. You could lock in a 10-year bond that consistently pays you a 3.75 right now. It's absolutely remarkable. Uh, and the cool thing is, you don't even have to worry about Market risk if you're willing to hold those bonds to duration. which just means until the bond is done right, then you get fully paid out. It's really, really incredible. So I'm a big fan of. If you're looking for some kind of passive income right now that's secured and you don't want to be subject to the market Madness treasury bonds. And you know what? if inflation comes down and these bond yields plummet, then you can actually probably go to the market and dump these treasury bonds for a profit. You know, now you're trading bonds. Uh, which is really incredible now. Uh, if you have a longer term Horizon Five plus years? Not a bad idea to spread yourself into what I Like to do index funds I'm the biggest fan of of people investing in index funds because of the tax benefits of rebalancing and I think a lot of folks forget this, but ETFs have a really, really unique Advantage Where if an ETF sells a stock that has gone overweight like let's say, Apple's gone overweight and the ETF sells that they can trade that for a different stock and not pass on as many or potentially any at all capital gains to the individual investor. So if you find an ETF that somebody manages that you really trust, it's actively managed, or you just find a passive ETF these are great vehicles for making sure you're not getting overweight and you're not getting in certain stocks and you're not experiencing really heavy capital gains events because those take a lot of money away. Ideally best case scenario: you find an ETF that you can hold forever and you never have to sell the thing and then you never have to pay taxes. The inside of the ETF can be traded for different stocks, but you never pay taxes because you're not selling that ETF Really, really interesting opportunity in uh in preventing taxation of course. Again, we talked about tax loss harvesting a little bit. I think there's definitely an opportunity to do that towards the end of the year here, but ETFs are a great Tool uh personally I'm I'm a little bit uh, you know I invest a little bit differently. but but I think my Horizon is is 20 30 years. my risk tolerance is different and I would never advise what I do personally to anybody else. I'm too heavy and individually chosen stocks and that comes with a lot of risk, a lot of volatility, and I don't think for folks outside of the financial industry, that's actually even within the financial industry I Don't think that's a good idea for anyone. So, but what? I do think is a good idea for almost everyone is after this getting into real estate. So real estate I would say we probably have some patience ahead of us I would likely wait until mortgage rates get back into the four percent range. I Think that's going to be a buying signal for the real estate market and I believe it's critically important that everybody gets started with buying their own home. Now there are a lot of people who make fun of the idea of buying your own home and they say oh, buying your own home is is a terrible investment and they're actually not wrong. It can be. It can be a terrible investment because what a lot of folks do is they buy their own home and then they remodel it like they're going to live there forever. Like it's their forever home and they waste a lot of money. It's very, very stupid to do that. Uh, spending money on your home is is pretty dumb. You should be spending money to fix it up to a rental grade level and then what? My wife and I always learn What we always told ourselves was yeah. If there's something we didn't end up doing in this home, we just say next home we'll just do that on the next home and then you just hop around. You do something known as bank hacking. The way that works is you borrow 95 to 97 of the property that you're buying. As long as you can afford the payment substantially for the payment, buy something much smaller than what you need if you're living. If you're renting a four bedroom, two bath right now, get yourself a two in one. Okay, you and your your girlfriend or boyfriend or whatever and live there for a year, Fix it up, and plan to move after a year to a three-in-one move again to a four and two. you know, or three and two, and then a four and two and keep all of the homes and make your goal over the next 10 years. buying five homes, just move every couple years. It's not that difficult to do, and if you can do it in a way where your payment is lower, decently lower, you know, two, three hundred, four hundred dollars lower. Uh, than what you could get in rent. Now you can cover your expenses for a couple hundred bucks a month for maintenance and repairs, but also for property management. So now you can really focus on building. Equity Now this is what's really important here is that you remember there are two phases to life. There is the cash flow phase of life. This is when you're in payoff mode. When you're in payoff mode is when you're getting ready to retire, right? So you're ready to retire and just go cruise around the world. And you just want passive income. You don't care about speculation, you just want passive income. In that phase of life, it makes sense to to pay off your mortgages as soon as possible, lower your monthly net. But for most people watching this channel I Would say ninety percent of us watching right now I would focus on maximizing the amount of real estate debt that you can get your hands on now. I Know that sounds crazy because people hear oh my gosh that you know that's so terrible you don't want to be in debt. Well, the beautiful thing about maximizing real estate debt is these properties ones that are cash flowing are being paid for by your tenants. And that means every single month you are doing what's known as passively Building Wealth through the power of principal pay down. and if you can get a good deal on top of that, you follow the steps in the zero to millionaire real estate course. you buy a wedge deal. Even better, you get an instant instant boost to your net worth, which is an incredible opportunity with real estate insta boost your net worth. Uh, but you want to be in a situation where every single month your net worth is going up by doing nothing. That is a beautiful thing that you could do with real estate. You do absolutely nothing. Your net worth goes up every single month just because your tenants auto pay their rent and you auto pay down the mortgage. So simple. Now a lot of folks respond to that and say, oh, but Kevin What if your tenant stops paying rent? Look, this is where you have to be prudent with property management. A lot of people aren't. a lot of people suck at Property Management I Hate to say it, but I would say most people 90 plus percent of people just suck at property management. And what I would highly encourage that you do is don't do what most people do. Most people are like, oh, I'll do Property Management myself and then in the future I'll get a property manager. No. Learn from a property manager. First, get a property manager First, learn the ways of the industry, learn about screening folks with credit, learn about making sure that you're getting quality tenants, and then after you found that out, after you've learned how property management works, then maybe consider taking over or not, or just keep a property manager. But screening tenants is the most important thing because they hold a large portion of your net worth and you want to make sure that you're not getting screwed. So this is a long-term perspective, right? My view is very much that as a long-term investor, you want to make sure that at this point, minimize your expenses, Limit those those expenses on, uh, on equipment, on hiring on monthly fees. Educate yourself so do spend money on yourself on licenses, certifications, education, and prepare. increase and secure your income. but also make sure you're ready to get into real estate. If you need passive income treasuries and diversify in stocks especially, use that ETF act. Thanks for watching folks check out the links down below. We'll see you next One bye.