Mark Kohler breaks down a three-part structure for managing money: a revocable living trust as your foundation, operational income sources like jobs and LLCs in the middle, and wealth-building assets like rental properties and retirement accounts on top. Connecting these pieces can cut taxes and build wealth faster.
Chapters
No matter where you're at on your stage of your American dream, the trifecta becomes your framework. It becomes something that's super easy and simple to start with and then expand and build upon. So let's look at it here. This is what the basics are. Three part system. So we're going to start with a foundation of a revocable living trust. And I'll explain a little bit more of what that entails. And on the left side we're going to have our operations. And then on the right side we're going to put our assets. The operations side creates ordinary income, the type of income that's taxed at the highest rate. And the assets we want to create passive income. We get some different types of tax strategy and money that we can make while we're sleeping. On the operations side, we might have a side hustle, a little llc. We might have a full time business, might be an S corporation. We might even have a day job or in a married relationship or two people with two W2s. All of this is going to flow down into your trust or your 1040 tax return. Just like water flows downhill, that's the left side. So part one is our foundation or our legacy. And part two is our operational income. What are we doing to pay the bills? And then part is our wealth building. It could be an LLC with some rental property. It could be our IRA. It could be a 401k that we're funding through a day job or a small business. It could be a health savings account. But we're going to start to build wealth in part three. These three parts, when they're all connected, build a tapestry of what the wealthy use to live their American dream. And you can do it too.
