CEO Explains: The Fastest Way To $1,000,000 Net Worth

We got to show people how they can make a million dollars for themselves or their families as fast as possible. It's getting out of Wall street, people. You've got to say, you know what? 8% is not good enough. It's not. So if you think you have to have money to make money in alternative assets, that's not true either. It's just getting educated on this. I love the example of having multiple irons in the fire. One's going to fail once in a while, but you got eight others in there that are going to blow up. Just take over. Welcome, everybody, to the Main street podcast today. So excited to have you. My name is Mark Kohler. I'm here with the amazing Matt Sorenson, and we're here to make you rich. We're here, Matt. We're here to tell everybody what our wealthy clients do. And we're not going to hold back. We're going to just tell you. We see it every day. How people build millions of dollars using tax strategies, good investments. We're doing these consults on our tax law firm, and we want to pull back the curtain. I mean, we got to show people how they can make $1 million for themselves or their families as fast as possible.

Yeah, it is a secret, but it's not complicated. That's the funny thing here. Some people think it's super complicated. This is not a get rich quick scheme or any weird thing like that. But there are seven things, approximately, we're going to go over that when you bring them together, is the fastest way to have a million dollars in investments.

Yeah.

Net worth.

Totally. And you know what's funny when you say it's a secret. You know why it's a secret, people? Is with several reasons. It's always not one thing. One is Wall street doesn't want you to know this. The reason why is because you're not going to do this fast as possible. Investing in freaking Wall Street. Now, it doesn't mean you might have some liquidity there and some. So you got a 401 gate work, you got to play in the game, get your mask, blah, blah, blah. But if you want to make a million dollars, first thing you're gonna do is change the mindset. I'm not gonna be having it all on Wall Street. Number two, our parents didn't teach us this stuff. You gotta be out on the streets learning this. It's like street. How do you win in a fight on the streets outside a bar? I don't know. You don't learn that in school. I don't really know either. I'm not that tough guy.

But anyway, like some boxing lessons, Krav Maga. What is it? Yeah, you know, you got, you know.

Yeah, yeah, you gotta learn the street smart strategy. Okay, we got an analogy. Matt, you tell them.

Yes. Yeah. Let's start out with, guys, we're just out in the ocean here, all right? And we're going to bring in some storms here.

Who's George Clooney and who's Matt Damon?

You know what, I could be either in this example because usually it's Mark's Brad Pitt and I'm Jonah Hill. Okay, so between Matt Damon and George Clooney, I could. I'll take either. All right.

Okay. Is that the young George Clooney or the old George Clooney?

You know what, if it's George Clooney, it doesn't matter. That's right.

All right, so some of you may have seen the movie the Storm, which is a fantastic movie. And the theory there, of course, is that perfect storm was a disaster. We actually think this perfect storm can take you out in the ocean to that dream location. Like if you just got a little sailboat, you may never get there. And Matt's going to start with analogy point, point number one here. But we got to get a storm that's going to push us to where we want to be. And we're going to end up on this island sipping, you know, margaritas or daiquiris, looking at beautiful sand, whatever that perfect island is. Yeah.

And by the way, storms are good in this example here, so don't get confused.

Okay?

The storms are good. We want storms. We're going to bring up these storms that come together. That's going to get you where you want to go. But before the storms come, I just want to say there's a lot of you out in the ocean going nowhere.

Millions.

You haven't set a sail. You have no idea where you're going. You're just floating around out there hoping that the Coast Guard Social Security is going to come and save you. At the end of the day, the government is not going to save you. Whether it's the Coast Guard floating around, not knowing where you're going, not doing anything, or it's you with your retirement and investment savings. So that's the first point I want to make.

Yeah. And this last week we held our alt asset summit in Costa Mesa two day event. We have brought in experts from around the country on what they're seeing, getting rates of return of 10 to 20%. What can you do? And this is where people, the rich people invest. That's the secret. You may have heard the term family offices. If you have $100 million or more, the far majority of those assets are deployed in all assets. It's a term you get to know once you start having money. And so, but, but the sad part was at the beginning of the summit, we're going to tell you some things we learned from there and our examples to get you there. This is real content, is that millions, millions of Americans don't even have a thousand dollars in savings. They are literally out in the ocean in this little, you know, rowboat. I'm thinking of Tommy Boy out in the lake, you know, with no wind, just sitting there. That's it. And they're, and they think something's going to come along, a cruise ship and just, you know, pull them up to the promised land buffet, you know, but it's not going to happen. You're just, they're just floundering.

Yeah, you're just floundering. You're finding. And you're not even, you're not investing in anything. You're not saving, you're just, you're just wandering around the ocean.

Okay, now, before storm two, I mean, or storm one that's coming, let me just say this last thing. Some of you may be good investors, but we could be talking about also your children. They could be at college, they could be teenagers and you haven't given them a rudder, you haven't given them a sale. We need to start teaching our kids to save sooner and faster because the time value money, they will pass you up, they will blow your mind. So we don't want to be hard on, just, hey, there's this group out there, they don't invest, they don't save, they don't, they're losers, whatever. And some of you may feel like that, well, we're going to change that. But also many of you need to take ownership of the fact I got to get my kids, my mom, dad, my brother, sister saving as well. Because they don't know. They don't know what they don't know. So that first column, we don't want to just be totally derogatory about it, but this is a wake up call. That's, that's point number one before the storm comes, you know, storm number one. But Matt, I just wanted to get that out there too.

Yeah, but let's hit storm one. That's going to come. And this is Wall street, all right, Some of you need to start just getting in the game and saving and the power of investing and compound growth. Even Dave Ramsey calls compounding interest and combating investment the eighth wonder of the world, or something like that. And there's such power in growing and having your assets and money working for you. Now, you can do that on Wall Street. Wall Street's convinced us you got to go there. We got to invest. We agree we're going to get to better ideas here. But let's say, Mark, you can get 8%. You can do that in the S&P 500 fund. Let's say I can at least get 8%. How valuable is that to me?

Well, if we start doing the math, some of you may have heard the rule of 72, where if you take your annual rate of return and divide it, or take 72 and divide it by your annual rate of return, that'll tell you how long it takes to double the money. So If I have $100,000 and everybody, we can easily do this and pull out a calculator for fun. If you want to play along is you take 72 divided by eight, and that'll take you nine years to double your 100,000. Okay, but is it really 8%, Matt?

Yeah, well, I like at least doubling my money, Right? And I remember this rule of 72, because we're going to come back to it. So at that rule of 72, take 72 divided by the rate of return you're going to get. Now, that's nine years at 8% that we had or was 12.

No, that was it nine years, but nine years. What I'm saying is it's probably not really 8%, because. And I was teeing that up for you.

I know, but before we get to that, though, I just want to say I want to make sure we're all on this point here of how this. This grows. We're talking about doubling our money. We're not talking about more money putting more money in.

Mm.

We're just talking about that money you've invested. It's growing. And some people hear 8%. That's just a hundred thousand. That's only $8,000 a year. No, no, no. You will double in nine, guys, that 100,000, 200,000. And then at that same rate of return, that 200,000 is 400,000. You're not even putting more money in. This is your money working for it for you. Okay, so that. That is powerful, but it's really not a caveat. This 8%. Someone's getting some money out of this. Besides you, that 8% might only be six and a half.

Yeah. You have two.

Tax man cometh.

Yeah. Well, you have two evil partners. First of all, you have Wall Street. They're not doing this for free. And so their fees, buried in 401ks even Warren Buffett talks about, are just astronomical. They're hidden, they're devious, they're evil. And so you at best are going to have a one and a half percent fee out of that 401k, even though everybody's telling you, oh, you're making 8%. Yeah. Is that after fees and after taxes? Because you got two evil partners. You got Wall street taking their one and a half, and then you got to take your taxes off of this. And I know we're going to talk about retirement accounts. Hang tight. But just starting to save. I've opened a basic investment account. 1.5% in fees and maybe 20 to 30% in taxes. That 8% turns into 5.5% real quick. Now, if I go back to my rule of 72 and I divide that by 5.5 now takes 13 years. Very painful. We're not getting to a million fast. We told you, we want to get you to a million dollars fast. So level two or just starting? Level one is no one's doing anything. Level two is I'm going to be out there at least saving, which is not bad. Yeah, definitely not. It's not bad.

Your money's working for you. It's growing. But like you said, you have Wall street with their fees and that one, that the average 401k fee, that is one and a half percent annual fees you were starting, you're really at six and a half percent. Okay. Then mark said you got the tax man at least taking a, you know, another percent down to five and a half. So we're left now doing 13 years because. Because everybody else is, you know, grabbing some money out of. Out of what you're doing here.

Yep.

Now, we got some ways to minimize that. We want to get rid of Wall street and we want to get rid of the tax man.

Yeah. And we want the perfect storm. You know, we want the storm to push us in that direction because there's a lot of intangibles here, and we need it. So what's that first storm cloud on the horizon? We really are looking for that.

Let's just talk about alternative assets.

Okay.

Let's talk about doing Main street instead of Wall Street. Now, there's a number of reasons why to do that. One, we can get lower fees. But really the primary reason we're doing that is we can get better returns. We can beat 8%. We're not starting at 8. We can maybe start at 12 or better. And at the Alternative Asset Summit, we saw clients going from 10% to 20% and they're all doing different assets. There's not just one thing you do. We had speaker after speaker after speaker talking about the things that they're doing. And I just want to give two examples. I'll give two examples because they gave hard numbers on what they're doing.

I'll give five examples too. I'm going to, I'm going to double yours. I'm turning the corner. We're going, we're going Texas holding, coming around to the turn. I'm going to try to do more uk. You go first.

I'll just give you two examples. This is one of them, is the first one I'm doing. John Shakarchi talked about that. He does a lot of private money lending secured on real estate. You got a lien on the property, 12% and 2 points. That's what I'm doing right now. I can get 12% annual return secured on real estate. Amy Maguri talked about it too, and raising private money. She's got private money lenders all across the country.

That's.

They're getting. And I'm getting 2% points. That's really a 14% annual return. And sometimes I get a loan that money twice, which gives me four points during the year. I'm about a 16% annual return. All right, that's double what I could be getting in Wall Street. And guys, this is secured on real estate. Now, sure, there's risk in these things. There's risk in Wall street.

There's risk.

And investing in a stock that goes to absolutely zero. And so, so that's one I want to give the next was Lisa Walker. She was from Tech Coast Angels. She went over how investing in venture, their venture, their Techcoast Venture fund has a 20% plus annualized return. Now investing in venture, she talked about how it takes 10 investments. You have to at least make 10 investments into venture companies because we're going to have half of those go to zero. You're going to have three or four of them kind of do average, maybe double their money, maybe make half, maybe 50% return. But you're going to have one that could be the next uber that does 1,000 returns. And they've had those, they've had some of those successes. But see, this is A new way of investing that we were teaching that people were learning the Alternative Asset Summit, but overall they're beating Wall Street. Yeah.

And what Amy's saying too with Ventures, she doesn't have a fund called Ventures. What we're saying is she says get out and look for ventures. It's kind of angel investing. It's looking well.

Ted, Coast Angels has a venture fund themselves as an example. They do, but you may not do that. You might make the 10 investments.

Exactly. And that's what I meant, sorry, is that she wasn't just promoting her fund, although it was there. And she's like, hey, we're averaging 20 plus and that's with fees and everything we're doing to help you. If you want to go out and find 10 businesses, you're going to have your losers and your home runs and your average is going to well exceed 20%. But you've got to get educated, you've got to play. Now, what are other alt assets? Buying a rental property is an old asset. Doing a trust deed note workaround, doing some non performing or a performing note and you're getting that working wholesaling, real estate, investing in a small business down the street. Some of them wants to open a flower shop or a restaurant. You're investing in Main street, you're investing in things. You know, you might be getting together with three or four people and saying, hey, we're going to develop some software, we're going to develop this. Some of it can be very passive. You're just going to say, I'm going to, I see people doing things and I want to invest in a certain type of industry. It could be multifamily, it could be hospitality, it could be in a crypto metaverse, NFT realm, it could be precious metals. It's getting out of Wall street people. Anything that's not freaking Wall street is an old asset and they're going to poo poo it and scare the hell out of you. And you got to say, you know what? 8% is not good enough. It's not. And I'm going to go to this next level. Level three is what we're calling it where I'm going to bring this whole storm together. I want to get to a million dollars. Well, guess what? You better get out of fricking Wall street if you're going to get.

Yeah, let me give one closing example here. Jameson Manwaring, who is founder of Neighborhood Ventures, was a Goldman Sachs tech analyst. He was analyzing tech stocks. That was his job literally on Wall street, he left it to go do real estate. I mean, this guy was in the lion's den learning all the strategies, all the resources, all the people, all the connections. And he's like, eh, I'm going to do better doing real estate. And you know why he said that? He said, in Wall Street, I feel like I got to be the smartest guy to beat the other guy on the other side of the trade. And Wall street, that's all they're doing. They gotta be the smartest guy. You gotta, gotta outsmart them. He's like, I went to real estate because one, I liked it, but because there was more creativity in it. There was unique deals I could find, I could outwork and just put in my hard work and creativity to make a deal more valuable than what I could get in Wall Street. And that's why he went to it. And so a lot of us are like, I believe in these assets outside of Wall street anyways, but our money's still sitting in Wall Street. And we're just like either not paying attention to it, counting on Wall street to do it, or being active, trying to be the smart guy beating the other person on the other end of the trade. Well, I'm just telling you, and the numbers prove this. You don't do it, you can't beat Wall Street. Read even Warren Buffett's book, He's in Wall Street. They tell you Tony Robbins book is all about that. If you want to be in Wall street, cool, go to an s and P500. This is all the advice that people say, you're not going to beat it. Even all the hedge funds can't beat it. So we're looking over alternative assets. And that was, and I have one other point on this. Sorry, I got one other point. Okay, sorry. One other point is good. I had a stat from, this is from Ernst and Young CPA firm. But they looked at alternative assets based on the wealthy. And they went from what they call the mass affluent, those with 100,000 to a million to invest to those to high net worth to ultra high net worth. The mass affluent invests about 8% of their money in alternative assets. The ultra high net worth, Those that have 50 million or more invest 80% of their assets of their money into alternative assets. Now a lot of people think, oh, the more money you make, the more money you should put into alternative assets. I'm like, maybe the more money you put in alternative assets means the more money you make and the more wealth you'll have. There's another Way to look at that stat. And so that was super interesting because, you know, a lot of people say, if you want to be in shape or be in fit, do what the fit people do. If you want to be smart or learn or educate, go do what they're doing. You want to be wealthy, do what the wealthy are doing.

Yeah. And I'm going to add to it, too, is that I taught a class at the Alt Asset Summit because people are like, well, I don't even have 50 grand to start with, or I'm trying to help my kids with their $20,000 in a Roth IRA or whatever. So I did my class at the, at the All Asset Summit. So you guys can get recordings and all that was 15 ways to invest less than 20 grand and get a better than 10% ROI. That, that was, that was my whole spiel. So if you think you have to have money to make money in alternative assets, that's not true either. It's just getting educated on this. Okay? And I, and I rambled off some of those ideas and strategies. The lending and the real estate and the wholesaling and small business and partnering. Okay, now I want to, I want to bring up number four. Number four, Step four or storm four, whatever. This next piece is critical because we just took Wall street out. Remember the two bad partners? We had Wall street taking fees. We want to get rid of those fees and we want to open the door to better investments. The second partner in that, remember who that was? That's Uncle Sam. We want to kick them to the curb. Because if I want to get to a million dollars, if I want to get there as fast as possible, I can't have Uncle Sam driving the car. I got to get him out. So I'm going to pull over. You're out. Because if I'm going to build a million dollars, this is not what you're living on, people. This is not paying your car payment or your house payment or your rent. This is. I want to live a better life 10 years from now, 15 years from now. And I want to be able to travel a little bit more. I want to have a bank account I could rely on so I'm not scared to death at night sleeping. What am I going to have in the future? That's what we're trying to build a million dollars for. So why not use the perfect vehicle for this, that can grow tax free. And you're going to have that money when you absolutely need it. And that, my friends, starts with even just a basic 401. K or IRA and self directing it. Meaning you've got to get that 401k vehicle or IRA out of the machine of Wall street and say, I'm going to self direct. And so when you start self directing, you're adding this component of real of alternative assets and retirement accounts. By the way, we got more is going to get better. This is just level 4, but 401ks that you control, called a solo 401k. You can have multiple 401ks people. We teach this and an IRA with that self directing component. What do you think? I mean, I think it's just next level.

Yeah, I mean that, that is marrying the two concepts in that we love of alternative assets, opportunity to make better returns and being able to keep it all. Because you look at this, these the rule of 72 as we talk about it, you're like, oh, I got an 8% return. It's doubling. No, you got, you actually got six and a half after fees. Nope, you actually got 5% when we took into taxes. Let me give a quick example. Let's just say you bought a piece of property, a piece of real estate for 100 for 100 grand.

Okay.

And I'm doing this so I can make the math easy. Let's say you flip this house, all right, in six months for 150. Okay. Now let's say you had. Let me just keep it easy on myself. Again, let's say you had 40,000 in expenses. Okay?

Okay. So it's a $10,000 gain.

10,000 bucks. Okay. You're like cool, I made 10 grand in six months on 100,000. I've got a 10% return, right?

Nope.

Because who you paying? 30% is going to the IRS. This is a short term capital gain. All right? That 10% went to 7%. There might have been some fees in the transaction and such, and we got Wall street out of the mix, but we still got the tax man in there. Maybe the state, you know, but let's just say 30% federal and state, which is actually generous. That's meaning you're in a lower tax bracket on the fed side. And if you're in California, this would have been worse. So I really only made 7%. But if I did that in my retirement account, I actually had a 10% return. The difference of compounding at the rule of 72 of 7 to 10. I just want to say how much?

Well, here, let's go to our, let's say go 8 to 12 because we did our 8% was a nine year deal. If we take 72 and divide it by 12, taking out the fees, taking out Uncle Sam AM, we're now at a six year scenario. So if I take, do it in six years of double my money. So if you want to get to a million dollars fast, without tax and without Wall street, we have to say, we're going to work into, let's say you start with 250 grand, in six years you've doubled it, that's 500. In 12 years you've doubled again. 12 years you have your million dollars. People, this can be passive. This is not you starting a new business. Now for some of you out there, I don't have 250 grand. Mark, we got some other examples here. You're going to start contributing immediately. And the younger you are, the more power you have on your side. But some of you that might be in your 30s, 40s or 50s, and you're like, I got a little 401k laying around at 250 grand, or I've got this equity in a home, I'm not doing anything with it or whatever. If you can start with 250 within 12 years, it's a million dollars. Is that crazy? That's again the power of compound interest in a tax preferred vehicle. So you pay no tax along the way. So you're getting that money really traction, really working for you.

Yeah. And if you think I love six years, you know, because if you think of that, that 12% return, we're gonna do it in six years. That is not very far ago. Like think of the stuff you were doing six years ago. Like I think I'm wearing shoes I bought six years ago. That was not that long ago, not that bad of shoes. But you know what I mean? Like that is not that long ago. We're not talking 10, 20 years. Oh, how long does it take to double my money, guys? Six years, not that long ago. And the excitement of it comes when you realize, oh, that 250 is a half a million. And remember, we're not even saying you're

putting more money in.

If you're making more contributions, this accelerates even faster. If you're still putting money in. We're just saying you down to that 250 and you're just investing. And that's, that's the, that's how you get to a million. 12 years, you can do it. 12%.

Okay, now we're going to add level five or storm number five. So we've got, we were out there not floundering, we're starting to save Wall Street. We're getting a little bit of wind. We got our sail up, we're making our 8%. Then we got taxes and fees now. But, oh, now some storm clouds come to help us out, pushing us to that beautiful tropical island we want to get to. We've got our all assets strategy. We've got a retirement account strategy. Okay, that's pretty cool, guys. I just did in six years. Now the thunder and lightning comes. Start seeing some swell in the water because now we're going to add the Roth IRA to the mix. And that Roth is incredible because now you'll never pay tax. And you can get the traction of as much money as you want with the reverse, the backdoor Roth 401k strategy, the mega backdoor Roth, the regular backdoor Roth. We have so many strategies that we use for our wealthy clients. So they'll never pay tax. There was people at the Alt Asset Summit last week, that $10 million sitting in a Roth. And 10 years ago they had 20 grand. They, they did it in 10 years because they caught the vision of what the power was.

Yeah. And I think, remember when we were at that back of that past sale and Mark says the storms and thunder comes here, the lightning and thunder, sorry, is when you pull that money out of your traditional account, when you're self checking your traditional IRA or 401k, the tax man cometh back. Tax man was gone for a while. As you were building and investing. Taxman says, hey, you don't need to pay me. I'm not coming in holding my hand out. Keep going. You keep building this thing and you're like, I'm loving it. Because you know that, that 12% can really stay 12%. It's not 10, nine or eight because you're paying the taxman. All right, it's really 12%. But taxman pops back up when you start pulling money out of that traditional account and puts their hand out and says, now you need to pay. The tax man cometh back. But what Mark's saying there with the Roth, and that's the beauty of the Roth tax free. Tax man comes back, you're retired, you're starting to pull the money out. You got like a skip card or something? I don't know, you got a piece. You don't get this. Okay. That's the beauty of the Roth account. It's growing. You get to keep it all what you're investing. And when you hit retirement, you don't have to pay the IRS or the state. And that is the power of the Roth account while at directed ira. Why it's the most popular account here. Whether it's a Roth IRA or Roth 401k, we have more Roth accounts than any other account type because our clients know this is the best way to save to build $1 million. It is using these tax free accounts, the Roth accounts, and investing in alternative assets. Not being beholden to Wall Street.

I love it. And again, we get, we'll unpack some more alternative assets here. But it's, but people, it's not just, I hope you're not listening to this podcast or watching on YouTube going, okay, tell me what to invest in tomorrow. Okay, bye. No, this is a mindset change of getting involved, getting engaged, getting into a different world where you're associating with the people that are getting rich. You've got to change what you're looking at for investments and you've got to captain your ship. This is not just set the sail and go down below and sleep and think you're going to end up on that island. You have to take control. You got to navigate through these storms that will help you. If you know what you're doing, it's going to push you in the right direction. Now let me give you a few numbers to kind of excite you. For those of you like Mark, I don't have 250 grand, but I got 50 grand and I'm committed to get out of debt. I think if I work hard at the second job or I could create some extra income with my side hustle, we're going to cut some of our expenses in our life. If you say if you have 50,000 and you could start saving 3,600amonth, I know that sounds like a lot, but some of you like, well, I could put away another 40 grand a year if I really work hard. Now 12%, you've got a million dollars in 10 years. Let me repeat that. The 250,000 person can lock and load and in 12 years they'll have their million. But if you say, well, I'm willing to do some additional contributions because I have a lower starting point. I'm at 50 grand to start with, but I can really try to put two, three or four grand away a month out of my side hustle, out of a second job or something, I'll create that income. So put that money away because I'm scared to death. I'm in my 40s or I'm in my 50s. How quick can I have $1 million tax free 10 years. All right. Another number. Let's say you're in your 20s. Hopefully some of you, I have some followers, Matt's followers that are 25 years old. Let's say you're 25 years old, you put in just 6,500 a year. That's just a basic Roth IRA. You have zero right now, zero right now. And you're 25 years old. You just start putting in 6,500 a year. You do all the asset, you're getting your 12%. Within 25 years you'll have a million dollars. So at age 50, you've got a million dollars tax free. And that's just doing 6,500 bucks. The one that's exciting you parents. If you take a 15 year old, you say, hey, let me teach you what I'm doing. Let's start a Roth IRA for you. You're going to take write offs in your business to fund it. La la la la. 6500 year with a 15 year old for 40 years. You say, we're going to, we're going to push this, we're going to do this till you're age 55. That 6500 year turns into 5 million people. The younger your family is, the younger you are. And just starting to do some basic contributions using all assets, using the Roth ira. That storm turns into this perfect storm where you're on a tidal wave. Just head to this island that you want to get to. It's just powerful.

Yeah. And that island is the promised land. And I think all of us want to have this retirement we're actually looking forward to. Not a retirement we're dreading. And Mark and I have spent years as a tax attorneys and business lawyers talking to clients in their 50s and 60s who are terrified they have nothing. They haven't set anything aside or they put a little bit into Wall street and they're like, how is it only this much and they haven't gotten engaged in it? And the point you want to make here is there's not a just invest in X and you'll be rich. That doesn't work. When you look. We look at our accounts at Directed IRA, we have over 1.5 billion in assets, 13,000 clients. We look at them, the ones that have the big accounts are all doing different things, but they're engaged with their money. They're not just setting it and forgetting it. Like Wall Street. Sure. You want to, you know, make some beef jerky or something. Set it and forget it. Okay. But if you want to Build a retirement that you're looking forward to. It takes some active engagement. Learn these assets that you want to invest into. Understand the strategy. And we're talking about self directing by the way. We're talking about you might have money at Fidelity. Fidelity doesn't let you buy in your IRA or 401k. They don't let you to buy real estate. They don't let you invest in a private note. They don't let you invest in a startup or a private equity fund. But you can@directed IRA. Our accounts let you invest in that stuff, but you choose those investments. We don't restrict your account to just stocks, bonds and mutual funds like most broker dealers that do IRA accounts. We let you invest in these alternative assets so you can unlock this opportunity so you can get these better returns so you can have the million dollar account.

Another specific takeaway, there is no tax, there is no penalty to move your money from a Fidelity IRA or an old 401K or Merrill lynch or Smith Barty or wherever TD Ameritrade. You can move that money to direct@ira.com tomorrow. Be investing it in all assets next week. May again have a friend starting a business down the street. Let me give a couple other examples. Somebody like, man, how can I make 10 or 20% rate of return? One of my examples was if you only have 10 or 20 grand, partner with a food truck. Find someone that's trying to do a little restaurant business. They don't have the capital to get started. You're like, I'm in for 50%, I'm in for 40%. I'll pay for the food truck. With the My Roth ira, you run the show. We teach other classes on this at the directed ira, podcast and podcast and shows and all these on what rules to follow. But it's much, much easier than you think. So partner with the landscaping company. Say I'll buy another trailer for your landscaping business, But I get 20% of the returns on that truck. Or maybe you again partner in a well established business that's looking to expand. They want to go to a new location, they want to put in a new pizza oven. They want to do this. They want to find people that are in the industry that you're passionate about. Maybe you go to an auto body shop and say, hey, I'll help expand. Let's get some more bays. Let's get this going. Let's go buy some of those computers you want. So that's all assets. That's venture capital. You're becoming a venture Investor, you're finding ventures around you that you believe in. And even if it's just 20 grand or 50 grand or 100 grand, you're rolling the dice. Yes, risky. But I loved the example of having multiple irons in the fire. One's going to fail once in a while, but you got eight others in there that are going to freaking could blow up, just take over.

Yeah. And even within the alternative assets, there's different type of stuff. You know, startups or small businesses that are existing, those can have much higher returns, carry a little bit greater risk. You have other stuff that's pretty simple and straightforward. Buying a rental property. Okay, I know it doesn't, it's not that alternative. Right. It seems pretty standard and regular, just owning a rental property. But you can do it in these taxes, preferred tax deferred or tax free accounts like we're talking about, where you get to keep all the money, where you don't have to cut in Uncle Sam. And so even the simple rental property that can appreciate that has good cash flow and you got to look and analyze these assets. Just like there's crappy stocks you can own or stocks don't perform well, there's crappy rentals. So you got to know that. But Mark and I talked to so many clients who are very successful real estate investors or real estate professionals and their IRAs invested in a mutual fund like, what are you doing? They're like, I didn't even know I could buy real estate in my retirement account. I happen to be a real estate industry investor or professional. I didn't even know I could do this. And so what we're saying is invest in what you know, if you know, small business or you get opportunities like that. If you're in the real estate industry, if you, if you have notes or things you want to invest in, that's secured by real estate. There's a lot of different things here and options you can do. And like I said, it's different for everyone. But I want to give one tip that, that also John Shakarchi gave at the ALTAT SET summit. This is someone who does secured lending primarily in real estate deals. And a lot of people were asking him because he gave a lot of examples on where he's made tremendous millions on single transactions with the Roth ira. And one, a lot of people were asking him, why do you find these deals? How do you, you know, guys, this is like not the grocery store where you just go in and it's aisle three, you know, and you just go pull it off the shelf and check out at the checkout. That's Wall Street. Pick a mutual fund, pick a stock, go check out, go click buy on your button. Just, you know, that's what it is. You got to hunt a little bit, right? You got to go find these deals. But how does he find them? Every real estate professional in his local market knows him as a guy that likes to do those deals. It took time. He networked and his advice to everyone was go find the highest producing professionals, whether it's a real estate agent, a mortgage professional, a title escrow officer company, and let them know that you're a solution for deals that go bad, deals that need funding, deals that need some creative finance. Let them know they have deals that fall apart. They need someone to come in. They see opportunities they can't, they can't solve. Let them know you can be a resource to help solve those problems and then eventually deals start coming to you.

Yeah. And on that note again, for those of you that have 2, 3, 4, 500 grand or more and you're a quick phone call with a real estate agent or broker where you can come in with hard money and still have a tremendous first position lien on real estate just to hold it together for a temporary purpose or something like that. But also for those of you that have only 10, 20 or 30 or 40 grand, it's called transactional lending. Just, just, I had a family member just three weeks ago selling a property and buying a new property. And escrows were so tight that they needed like this transactional funding to close before they had to close on the purchase, before they could close on the sale. And there was this 10 day window where they needed about 30 gr. Oh, the realtor was like, I got transactional lenders lined up ready to go. There'll be one point and a 12% annual and DA, da, da. And they were like, okay. And these transactional lenders are doing these little escrow lending type deals every day and they're averaging this 12, 14 or 16% ROI. They have their procedure down, they know how not to get stung. They go check, check, check, check, check. I'm in. And if they can't check the boxes, they walk away because they don't know there's going to be another person around the corner. Okay, now number six, we, we didn't say it was number six, but we hit it. Invest in what you know. So you're going to number five. Was that storm of the Roth coming? Number six is now that you've been engaged now that you're learning, you go next level, you start saying, okay, now I see other opportunities. They're better than just a syndication. That could be wonderful. Very hands off, making you a 10 to 12 or 13% rate of return. But number seven, this is, I think, that just the final juice of this whole equation. You have to keep saving, keep contributing, stay engaged, stay at the helm. When those storms come, it can be a little scary. It can take a lot of courage to stay there and go, oh, my gosh, I'm going to ride this wave. Oh, my gosh, it's working. And you get more and more confidence while you're up on deck holding the wheel and you're like, okay, I can do this. So stay involved, stay engaged, stay educated, keep saving. And all of a sudden, the universe starts to bless you. Because when you're out looking, things start to happen. When you stay the course and keep your head in the sand, which Wall street wants, you're not going to see deals. You don't even know they exist. You got to get your head up, look at the horizon, where am I going here? And let those storms push you.

I love that. That's such an awesome point. I'll just say it's kind of like making a bigger sale. The more money you start throwing in there, you're making a bigger sale. Not only is the returns growing this and making a bigger sale to catch more wind and push you forward, get you where you're trying to go faster. But another thing I think is really important too is stay educated, keep learning. You're going to be as more seasoned investors. You're out here doing this. You're going to see the things that work. You're going to make more context. You're going to be known as someone that invests. You can become a resource to other people, which brings deals and opportunities to you. And so as you start doing those things, these start things start compounding. And now when you're used to making 12%, you're up to 16. You can do better because you get to pick more of the deals. Your risk goes down. And I think this is just super powerful. And we've just seen it with our clients that become successful. They get all these things working for them, and now they're going, this is why there's the million, $100million, 300million Roth IRAs that we have at our office.

Yeah, and I'm going to finish with that point, too. I like that. What Matt just said is, this is what our successful clients do. That's what I led with. I've done the 10,000 rule. Matt has. We have met with 10,000 clients over our careers. Now we're training our staff, training our attorneys and accountants and my network of accountants around the country that are certified and helping advise people on this. We're, we're now trying to share that knowledge that over these 10,000 consultations, we figured out what works, we figured out what doesn't work. And I mean, in some ways, do we have the silver bullet?

No.

I can't tell you exactly what to invest in, but I can give you a lot of financial advice of what to look for and how to do it. And that is so powerful. For some of you, making a million dollars is not a big deal. You're like, how do I get to 10? How do I take my 10 to get it to 20? Because there's these different breakpoints. You're like, okay, I want to get that next level. The principles are the same. You got these same seven concepts. Same concepts.

Yeah. Love it. All right, we've got tons of resources. Altassetsummit.com is this alternative assets somewhere we're referring to? The recording will be up if it's not already. Depends on when you catch this. Alt assetsummit.com self directing where you can learn more about it. Directra.com just want to give you guys some resources. We have tons of just free content. We're trying to give this out. Make sure you're subscribed to Mark's YouTube channel. My YouTube channel is Matt Sorenson. You can find me pretty easily. We're always giving out this content. Got a new podcast episode and we love doing this. This is like best time of the week for me. Mark and I get to get together and just, just try to teach.

Yeah. Another resource or two is if you're an enrolled agent, a cpa, a tax advisor, accountant, bookkeeper, anywhere in quickbooks world if you're doing any tax advice at all. And I love those young, scrappy enrolled agents. I'd love you get to tax and legal360 tax and legal360.com the end of July, I've got a three day event. 45 sessions, 36 topics, 17 speakers and we're going to be diving deep on all these different things, helping you make more money as a tax advisor. Build wealth yourself and help your clients do it. Also, we're going to North Carolina, Raleigh, North Carolina for our directed IRA summit later this fall. Those tickets are at a great price right now. There'll be an online version, but if you can come out, it's a beautiful time of year and we're going to be networking on how to self direct as well. So you'll see all that and more on our websites and on our newsletter. We're not going anywhere. We want to see you succeed.

Yeah. Thanks everyone. We look forward to seeing you next week on the Main Street Business podcast. Till then, keep living the American dream.