Want a $1,000,000 TAX FREE? Do This...

A million dollar Roth ira. You got to be crazy. Only the rich people can do that with some crazy loophole. The average person isn't going to be able to make that happen. Wrong. I'm going to show you in this video the steps to get there. Even the dollar amounts to put away weekly. What types of structures? Yes. Even if you're over age 50, what are the numbers to do it? Can I put away $20,000 a year? Yes, you can. I'm going to talk about the structure to do it. And the crap Wall street isn't going to tell you going to break it down. So buckle up. Now, be patient. I'm going to try to hit all the topics you're going to want to hear about in this process, but if not, write them down below and I will respond. Okay, now number one, what is a Roth ira? How do. What's so cool about a Roth? Yeah, I heard in the news Peter Thiel had like a billion dollar Roth or 5 billion or whatever it was, right? Crazy stuff. What is a Roth and why are they so special? Okay, we're going to go to the whiteboard here, but before that I want to just say if, be patient, be patient. If there's. If you don't like what I'm saying or I don't cover all the topics that I promised and more, write those comments down below and I'm going to hit it and I will respond. I want to give you the answers you're searching for. So what is a Roth ira? I got an easy way to explain it. Okay, concept number one is you can have a Roth IRA at any age, no matter how much money you make. So we talk about these vehicles. The first point I want you to know is you can have a Roth IRA at any age no matter how much money you make. Right there. That probably flies in the face of half of the things you've heard from your accountant or stockbroker. So the diagram that best explains this are kind of these three quadrants and let's break these down. And I think this is going to help you out in big time. All right? So number one, I'm going to scroll up as we go, so don't worry everybody. Okay? The first one is think of an IRA or a 401k maybe at work you've got a 401. And I know this may be simple to some of you, I'm going to give you complex stuff, so be patient. But let's just get all on the same page. And an IRA or 401k. It's a retirement vehicle. Think of it as this little car in here in the trunk. You can invest in all sorts of things. And if you go to a day job, you might be able to put away some money and the company might match some. Or if you don't have a 401k at work, you can open up what's called this individual Retirement Account, an ira. Now, when you put money in an ira, you get a tax deduction. Or at work, if you, if you put money into an ira, it's not included in your paycheck, so it's like a deduction. So you've got this, get this tax deduction on the way in. Now you can invest it in all sorts of goodies. You can put stocks or mutual funds or things like that. That's what everybody's used to. And I'm going to blow your mind with other options here in a moment. But you can do mutual funds or ETFs or, you know, interest type bearing bonds or whatever, stocks. And you can put those in your trunk of your IRA or 401k. And it grows tax free. No, no, it grows tax deferred. So you can invest it and it might double in value and you don't pay tax until you pull it out and then you pay taxes. And some of you're like, well, there's half the problem. Mark, I'm young, I don't want to leave it there forever. I'll come back to that. Just chill. For some of you that are in your 20s and thinking, I need this money right away, this IRA 401k stuff is crap. I got an answer for you, so be patient. But let's just get the, the tools out on the table here. All right, so we got our IRA or 401k. You pay taxes when you pull it out and you can't P until you're typically 59 and a half. And if you pull it out early, you can, you're going to pay a 10% penalty plus tax. And even when you pull it out at 59 and a half, you're going to pay tax. So it's okay. You get this tax deferred growth. And it's kind of awesome. Even if you invest in real estate, it's going to go up in value. And then when you sell it someday, you're going to generally pay tax unless you do a 1031 exchange or some charitable trust or some other interesting strategies. But let's just stick with the IRAs and 401ks tax deduction, tax deferred growth. All right, now it gets better. The Roth IRA. And you can even have a Roth inside a 401k, which many of you may have not heard of. That's how we're going to be able to put away even more money. I've got a mega backdoor Roth IRA where you can put away over $60,000 into a Roth IRA in any given year. Yeah, I know. It's true. That loophole exists. We'll get there. Okay, so you have a Roth IRA or, or a Roth 401K. Okay, so now here's the same concept. It's a little vehicle. And you can put money in the trunk and invest it the way you want. Same thing. But here's the cool thing about a Roth. You don't get a tax deduction on the way in. You got to use after tax money. So you pay taxes first. Now, if you have a day job, they're going to put the money on your paycheck as if you received it. You're going to, you're going to pay tax. But it goes into this Roth account. And that Roth account grows tax free. That's right. It's like a tax free atm. It grows tax free no matter what the hell you invested in. Could be crypto, it could be real estate, it could be stocks, bonds, mutual funds, ETFs, bonds, blah, blah, blah. But we're going to come to, you can invest in all those goodies and you don't pay tax. You never pay tax. When you pull it out in the future, there is no tax. You still have to wait till you're 59 and a half. And that's okay. I'll come back to that concept of waiting. That's all right. But this, it grows tax free forever. Now, wouldn't it be sweet if you could get all three back? Three boxes? I get tax deduction, I get tax free growth and I can pull it out tax free. What kind of vehicle is that? That's like a supercharged whatever. That'd be amazing. Guess what? It's is called a health savings account. And you can pull out money tomorrow at any age for any medical expense. Now that's another video for another day. Well, we're. But it's crazy, people. Now what we're focused on here is how do I build up a million dollar Roth? And I know, and let's go off the whiteboard for a moment. Now look in my eyes, people. Now, I just got chills about this. Now, I know some of you are Older and you're freaking out. I've got retirement in 10 years or 15 years, Mark, I just turned 50 and I'm looking down the barrel here and I'm scared to death. I get those calls, I talk to people. And then I got some of you. Some of my own kids are 20, 25 years old and they're going, this is ridiculous. I'm not going to. You want me to put money away till I'm 59 and a half? I'm going to live forever. I've been there. You think that. But the day will come and it comes faster than you realize where you're going to need money in the future and you're going to pray, pray to God above that I would have listened to Mark Kohler and just put away freaking $12 a week. That's right. That's maybe all it takes to have a million dollars tax free down the road. I promise you someday when you turn 40, 50 or 60 years old, you're going to pray. You would have started a little Roth IRA somewhere and put a little bit of money away every week. Out of sight, out of mind. So that money's there in the future. Okay, next naysayer. Well, Mark, a million dollars isn't enough. I can even retire in a million dollars right now if I wanted to. Maybe depends on, you know, how you spend your money. Is $1 million 30 years from now going to be worth less? Sure. So let's get started now and I promise you with these strategies I'll teach, that might be two or three million dollars Roth IRA if we get started now and we do it right and I can show you, and I'm going to show you right now. So I know $1 million may not seem what it's worth, but let's get started. We can get started. Okay, so let's just, let's jump into some numbers because some of you are like, Mark, get to it. So let me show you some numbers. Let's go back to the whiteboard. Now I've done the homework, I've done the math. You can go to my website, markj.kohler.com. i've got a, if you go to Tools, there's a little IRA calculator and you can put in your age and how much money and da, da, da. But let me, let's go through the table. I've got it. I've done the homework here. And you're going to love this. Now let's say you're in your 20s, you're in your 30s, you're in your 40s or you're in your 50s. Okay? Now you want $1 million. Here's our goal. I want $1 million when I turn 67, okay? Even if you're 50 years old, how am I going to have a million by the time I turn 67? And for those you're in 20s going, I'm never going to be 67. Oh, yes, you will. Be patient. Trust me, you're going to want to. And if your parents are making you watch this video or an uncle or someone, and you watch this, okay, all right. Here's all it takes to have a million dollars when you turn age 67. And I'm going to do the rates of return here in a minute. And so hang tight. Okay? But first, here's all you have to have in a week. All you have to put away is $12 a week or $45 a month. It's $45 a month or $540 a year. Right? Now, if you're in your 20s, you start doing that right now, you're going to have a million dollars when you turn age 67. $12 a week, people. Okay? Now if you're age 30, that's $36 a week, 1:45amonth, or $1,740 a year. Now, if you're somewhere in between, if you're 25 years old, you're going to find the average of these two numbers. If you're somewhere in between, okay, this is exactly when you're 20 and exactly when you're 30. So this is a table. You're going to find your right spot and try to figure out where those numbers are. You might be putting away, you know, $25 a week if you're somewhere in the middle. Okay? Now age 40, it's going to be $115 a week, 450amonth. That's car payment, let's say. And this is $5,400 a year. Now, some of you are like, well, that makes sense, Mark, because this year you can put away $6,000 in a Roth. I could do that. Okay, so that's about 450amonth or $500 a month. Okay? Now if I'm age 50, you got to put away 412 a week or 1650amonth, or $20,000. It's $19,800 a year. Now, some of you are going to go, how do I put away $19,000 a year in a Roth IRA? I will show you. Do not go anywhere this, this is legally. I could do three times that legally with loopholes. That's what tax lawyer, tax lawyers are for. That's what you pay me for. Okay. All right, now, now here's the big question. Mark, what's your. I'm going to talk about investing here and getting the maximum rate of return in a secret weapon. I'm going to share the secret weapon here in a moment. But right now these numbers, that's a 12% rate of return to get, to get that million dollars. Now already some of you are like, that's not possible. Mark, what are you smoking? There's no way s and P500, maybe 8% ETFs on average that we're not going to invest our money maybe in Wall Street. I'm going to give you the secret weapon here in a moment. Now some of you are like, well, hold it. There's no way you're going to get 12% on average every year to get there. Chill. I'll run some another set of numbers here. Let's go, I'll change it to red. Let's go. 10% rate of return. Okay, you say, Mark, what would it take with a 10% rate of return to do this? Okay, you're looking at about in a given month with getting an average of 10%, you're looking at $90 or $250. So that's this number. Okay, or $650 or right here, $2,000 a month. Now some of you, I have clients that are 50 years older. 50 years or older, and they're saying I'm starting a business right now to make $2,000 a month so I can put it towards a Roth and have a tax free million dollars 17 years from now. Yes, it's doable. And I'll show you how to put away $2,000 a month in a Roth. Okay, so if you say, Mark, what's your roll I your rate of return on Investment or your ROI return on rate of return is going to be 10% in an OR. It could be 12% in this scenario. Now. Okay, so let me address this rate of return or APR or ROI, all those little metrics. How do I get 10 or 12%? You know how you do it is you may not use Wall street to get there. It's called self directing. Now you're like, well TD Ameritrade said I can self direct, I can buy the stocks I want to buy. No, it's better than that. So when you've got your vehicle here, so here's our little vehicle and we talked about what you're going to put in the trunk. You know, what am I going to invest in? Self directing is the concept that you can invest in real estate. You can invest in small business so you could buy a rental property in your Roth, you could invest in your sister's cupcake business down the street, you can invest in your brother in law's landscaping business down the street. You could invest in crypto, you could buy directly, not a fund. We're more away from Wall Street. We're going to go out and self direct and invest in what we know best. Now the example of this is when you hear in the news that Peter thiel had a $5 billion Roth IRA is because when his buddies called up and said, hey, you want to invest in PayPal or Facebook, he's like, yeah, let's do it. He put his Roth IRA in the deal. You're saying, well Mark, he got lucky, he was able to do it. Well, the way he did it is he didn't call up a stockbroker at Merrill lynch. He took his Roth IRA at a self directed trust company or custodian and said invest in that LLC that Zuckerberg just set up. That's the theory. That's the possibility. For 20 years in our law firm, we have been creating LLC that go out and do business in real estate and all these different types of money making operations. And I have clients with multimillion dollar Roth IRAs because their Roth IRA is a partner in the deal. This is what Mitt Romney did at Bain Capital in Boston. He went and did fixer uppers in business. They would. He bought staples and resold it and made money. His Roth IRA was a partner. You can do that. You don't have to be rich to do this. If you want to learn more about this, we hold webinars, free webinars every month are all recorded on our website. Go to directed ira.com okay, now this whole video is not about self directed. I've got tons of other videos on that you can go to Directed ira. I have a podcast called the Directed IRA Podcast. Thousands of thousands of downloads. Go check it out. But this is the concept. My self directed IRA clients get 10, 20% and more rates of return. APR, ROR, ROI, APR, whatever you want to call it. They're investing in what they know. I am doing crypto mining in my Roth. I own a rental property in my Roth. I do this. It's not illegal. It's possible, but you can't do it at TD Ameritrade or Merrill lynch or Oppenheimer or Smith Barney. You've got to get your money into a Roth IRA that lets you do that. So you take your Roth and there's no penalty and there's no taxes. You're going to transfer your Roth to a self directed Roth and do that or a self directed 401k. That's how you get the bigger rates of return that we're talking about here. Okay, so all you naysayers, and I've gotten the emails and the messages in my YouTube channel. There's no way you can get 10% or 12%. Yes, you can go learn what Peter Thiel did. Go learn what Mitt Romney did. And thousands and thousands of millions of Americans out there that self direct their IRAs. And we do it all day long. And you can go to directed ira.com and learn more. Okay, now, all right, the other naysayers are out there going, how in the hell do you put $20,000 into a Roth IRA? Okay, let's go to our next little principle here. And I love teaching this. I call it the Mega Backdoor Roth where you can get up to $60,000 or more. We won't go all the way into that. If you want Google that, type in the magic of the Mega Backdoor Roth. And I've got articles and other videos you can just. They're right there. In fact, we've got them down there in the description. So go read those articles. They're legit. I'm a real cpa, a real attorney and a real law firm and accounting firm doing this and teaching it. Okay, so here's how it works. If we were to look at a cylinder here. So let's put this in kind of a cylinder type format to build up a Roth ira. You can do it in different ways. The first cylinder is you can say, you know what, I'm going to have a regular Roth IRA. And a regular Roth IRA. You can put in $6,000 if you're under age 50 or you can put in $7,000. Not under age 15 or 50 or older. I can put in $7,000. Okay, so that's a regular Roth IRA. Now some of you said, well Mark, I make too much money. I can't do a Roth. That's where you use the backdoor method. I've got articles on this. It's very common. What you do is you set up a regular ira and step one, and you don't get a tax deduction because you make too Much money. And then on day two, step two, you convert to a Roth. Anybody can convert to a Roth at any age or any income level. So it's called the backdoor Roth strategy. And we help clients do this every day. We've got a whole product@directed ira.com where you can pay one account setup fee to do this. So I don't care how much money you make, you can do step one. Now, here's what's cool. You can have a 401k at work and have a Roth IRA at home. Again, no matter what income level or age I have, I started my kids with Roth Iras when they were under age 10. They started working in my business and. And I got them a Roth ira. I have teenage girls of clients that are babysitting that fund their Roth ira. You can do that. Okay, so this is very doable. I have clients that are like, well, I'm too old. I'm 70 years old. Nope. I have clients that are 70, still building their Roth IRA because it's tax free when the money comes out. Is this crazy, people? It's real. It's doable. You can call my tax lawyers at our law firm and make an appointment and set this stuff up and do it affordably. You don't have to be super rich to access tax lawyers to help you do this, to start listening to my freaking podcast, watch my videos, and I will help you do this. This is the real McCoy. This is it. I don't even know who McCoy is, but is this is a real McCoy. Okay, now stage two is you do your 401k at work. Now, for a 1k is like a honeycomb. It can be part Roth and it can be part traditional, which is the match. So if a company doesn't match, I call it match it out. So at work, you. You're going to set up a 401k and then you can put in money. That's Roth. And guess how much you can put into a Roth in a given year? This year, 19,500 if you're under age 50, or $27,000 if you're 50 or older. So you can have a Roth, not a Roth IRA, a Roth 401K on top of your Roth. You can do both. So if you're 50 or older, you can have a 401k and put in $27,000 and put in $7,000 in your personal Roth. You just put away $34,000 into a Roth in one year. Yes, you can do that. Now you say well, Mark, I don't have a day job with a 401. I got a solution for you. What we do is the trifecta. And if you want to go Google the trifecta, oh, this is my baby. You're gonna have your trust at the foundation. You're going to have your rental properties over here in an llc. You're going to have your operational. Maybe a day job, okay? Or your operational llc. Or maybe it's graduated into an S corp and you have your small business. Well, guess what your small business does is sponsors a solo 401k, so you can have a 401k in your small consulting business, your side business, even if you have a day job or with a 401k, you can have two 4:1ks. You can have a 401k at work where they're doing a match and you play in it just up to the match, and then you get the hell out. And then you contribute the rest of your 401k contribution down here, which is part Roth. So you can have a solo 401k that's part Roth. You can have your personal Roth down here, and then you can have your part Roth up here at your day job. So you can be building. I'll put it in red. You can build. Be building a Roth up here, right here. And right here, you're building three pieces of an overall Roth. So when we get back here and you're saying, mark, I want to build a super mega Roth package. There's not one Roth, Ira. It's made up of several Roths. So you have your personal Roth down here. You have your 401k Roth at work, at the day job. Then you have a second 401k maybe that's funded by your small business. I've got to ask my guys in the studio. Is this resonating? Is this rocking? Is it? Okay, all right, I want to make sure this is making sense. So you got Your small business 401k, maybe you got your day job, work, 401k maybe, and then you've got your personal Roth down here. Now we're stacking, we're stacking. And this year you're allowed in your day job, 401k or personal 401k at work to put into it up to $61,000 if you're under age 50 or 70, 4,000. Oh, I've got to pull it up on my laptop here. And you can put in even more if you're 50 or older. And I've Got it right here on my laptop. So this is the cool stuff that we're helping clients do every day. And I was just talking to my. I've got an article right now on the web. I want to show you this. This is real live crap here. Go off the whiteboard. I'm going to just show this right now, Jack. So let's go off the whiteboard right now, here on my website, marchacoler.com it's called the magic of the Mega Backdoor Roth. And I build these little cylinders right here and stand behind it as a CPA and attorney. Okay, you can do, if you're 50 or over $74,500 in a Roth this year right here. Go look it right on my website. I stand behind it. I'm the right. All the tax articles for Entrepreneur magazine, you go, this is legit. And you can do 67,000, not 61, $67,000 if you're under age 50. Okay? So people, this is legit. This is how you build it. And if we go back to the whiteboard, Jack, please. Okay, so this trifecta, this is what I call it, is the trifecta. Even if you're age 22 or age 72, your mindset about money is what matters. And I just got a ting of emotion here. You can build your own trifecta. A trifecta is built on a small business, an LLC for your rental properties or investments. A small business or a side hustle. And it all comes down and you've got your day job over here. The trifecta is bringing together your ops, your assets and your, your trust. And I have clients that are age 22 doing this and clients that are 72 doing this because they believe, they know, they control the money. Your thoughts about your money is what matters most. I want you to know you can do this. I want you to know that these numbers are real. You can build a retirement account and put money away right now, today, in a Roth IRA. Look at this. This is just a basic Roth IRA here, or we put it on steroids with a 401K down here. And the sooner you get this and the sooner you're doing it, the numbers get off the chart. In fact, I'm going to, we're going to cut right now and I'm going to show you the numbers here of just what more you could even do. In my entire career, I have never seen a two day workshop dedicated to, to real estate taxation. Now that may sound very boring, but no, it's totally exciting. Because if you're investing in real estate, if you're selling real estate, if you're involved in the real estate industry at all, this workshop is going to give you every tax tool known to man to help you better succeed and make more money. Now maybe you're just thinking about investing in real estate. Short term, long term rentals, commercial storage units. Okay, that's cool. Let me just tell you, you're onto something. You're thinking wisely because real estate is an incredible tax preferred investment tool. I've been teaching for years and there's so many cool tax strategies that go along with rental real estate. 1031 exchanges, opportunity zone, passive losses, short term capital gains, long term capital gains, installment sales, charitable remainder trust, the list go on and on. So whether you're experienced in real estate or just getting started in real estate, knowing the tax strategies are going to make you a better real estate investor. They're going to make you more successful. Successful. Now we got two days, 10 speakers plus I'm still looking for great speakers. We're gonna have a lot of fun. An after tax party at the end of the two day event. We're gonna be networking, learning from others and talking real estate taxation for two freaking days straight. I just get hot and bothered thinking about it. You gotta be there. You're gonna love it. So look at the information below, look at the agenda, look at the speakers and get there. You want to make more money in real estate, you got to know the tax strategies. See you there. Okay, with that quick break, we're going to scroll up here. I want to just show you what I did on my calculator and I just, I just got chills. And I'm going to give you a real life example and bring this all together. Okay, I just went to my calculator@markj Kohler.com I put in age 25. Now for you that are 50. We're going to, we're going to. I'm going to do a second example here because I know we got both, you know, categories here if you will, and young and old. Okay. Age 25, I want to retire. Age 67. This is going to blow your mind, Jack. I have zero saved right now and I'm going to put in $500 a month and I'm going to get a 12% rate of return and I'm going to give practical example of how you can do that here. We're going to talk about the LLC and a real estate project. I'm going to do two of them. I'm going to do real estate and I'm going to do some crypto just for fun. I know crypto is down right now, but it's not going away. Everybody you know, there's, it's, it's out there. So be patient, okay? We could even do a small business. I could do three of them, but this concept's the same, okay? I did 500amonth. Annual return of 12%, which I don't think is crazy at all. Guess what you have at age 67? $7 million. That's right, 7 million. You can go do the calculator yourself. That's tax free. Seven million is tax free. Dollars. Does that rock your world? That's at 500amonth you can do. Okay, now here's a real life example, okay? What you do is you create. Let's say you find a cute, adorable little rental property, okay? But what you're going to do is find this rental property and let's say, let's say it's 100 grand. Now I know you're like, mark, I live in Southern California. You can't buy anything for a million dollars or less. Chill. Buy around the country. The country is smaller than you think. Get on a freaking Southwest flight and stay in a Hampton Inn and go look at a rental property near your grandma in Duluth, Minnesota. Shop around the country, Learn about rental property. Learn about real estate. My wealthy clients own real estate. That's what they buy. I buy rental property. This studio is a rental property. I built this last year. I've got all sorts of videos on real estate. And we're holding the Real Estate Tax Summit in Austin, Texas in three months. Register for it. The links down below. Come learn how to freakin buy real estate. Now we're going to come over to crypto too. If you hate real estate. We held the crypto tax summit in Miami two months ago. We love crypto too. We help our clients make money. That's what tax lawyers do. We don't go to court and fight piss battles. We help you avoid IRS audits and build wealth. Okay, so you found a rental property for 100 grand and let's say you're. You need a down payment of 20 grand. 10 grand. We have, I have people. Chris Albin comes on my podcast, the Main Street Business Podcast. I have two podcasts, the Directed IRA podcast and the Main Street Business Podcast. It's down below there. Click on it. Subscribe. I have Chris Albon. Come on. Every year how to buy rental property with zero down five ways to buy rental property with zero down. But let's say you're going to put down 20% here and you're going to put down 20,000 to go buy this rental property. And you're like mark, I don't have 20 grand in my Roth IRA. Okay, so you form an LLC and maybe you and your mom and your dad and your brother, we all put in five grand from a Roth ira. Roth, Roth, Roth. And we go raise money with my family and we say we're going to put together enough money to go buy this little rental property. This is what our law firm's been doing for 20 years. We set up a frickin LLC here for around 1500 bucks. It's going to have all the provisions you need for IRA ownership. We walk you through it and this is just one example. We do this with millions of dollars. We do it with 100 grand, whatever. We set up the LLC and you can be the manager of the llc. You're not going to get paid to manage it. But let's just say this 100 grand little LLC kicks out, maybe a 10% cash on cash return is making $2,000 a year from rental income on this little rental property. And let's say you're doing that on a regular basis and you're buying rental properties and LLC and you're all that cash flow is going tax free down into your Roth IRAs and you start generating a 12% rate of return, a 10 to 20% rate of return because the property is going up in value as well as creating cash flow. And I've got other videos out there on why buy rental property, but this is a very common example. I can't guarantee what you're going to get in rental properties, but I have many clients that are doing 30 to 40% in rental property. When they look at appreciation and they look at mortgage reduction and then they look at cash flow. I have what I call the four quadrants to rental property. And it's beyond the scope of this video, but I'm teaching it constantly. It's out there on YouTube. It's out there, you can learn about it. But, but this is how my clients are getting 12% and more. Because they're buying what they know. They're not buying some stupid ETF with fees buried in it. They park money in Wall street till they find a better deal. I even have a financial advisor who I love. The co author of my book, the Financial Freedom Book. Go throw it in an Amazon Financial Freedom Kohler. Randy Lupke of Licensed financial advisor. I love it. He just said this last month to me on a phone call. Mark, my wealthy clients put money in Wall street until they find a better investment. And it's going to be small business, real estate, private equities, crypto, whatever. Now, in crypto you can do the same thing. Now the guys in the studio said, Mark, can you be more specific? Can you break this down? I'm going to use red here to break this down because I don't want to gloss over this. Okay. You've sometimes heard of cap rates when you go out and invest in real estate. When I invest in single family housing and a lot of my real estate investor clients, they want to see at least a 10% cash on cash return for their investments, meaning they put 20 grand down. And now they want to see at least a 10% return on the cash investment. And now some of you are like, well, that's not possible. Well, they shop around until they find it. Right? You might put some equity, you know, sweat equity into some of these projects. You find a creative deal or an off market project. If you're buying off the mls, it's going to be harder to find a deal that gets a 10% cash on cash. But it's very common. That's the deals I look for. So let's do the math here. So you invested 20 grand is a down payment to buy a property for 100 grand. You might have a bank loan in here, you might have private lenders in here, but you're going to have a loan in here. That's cool. And I invested 20 grand. Now if I get a 10% cash on cash, that means I'm going to make $20,000 to on 20,000, I'm going to make $2,000 in cash flow for the year. You divide that by 12, you're looking at about what, $180 a month or something like that. Okay, so we want to make sure we're going to at least make $2,000 in cash flow. Doesn't count the appreciation. It doesn't count that we're reducing the mortgage every year. My internal rate of return is going to be a lot more than 10%, but at least I got a 10% cash on cash return. Now what does that mean for my little Roth IRA with five grand? Here I am over here. Well, if I invested five grand with my Roth and I get 25% of that, okay, I got to split it up four ways. Okay, what did I get? I got $500. That's what my Roth IRA got out of this. Well, I invested five grand and I made $500. That's a 10% return on my investment just on cash. Now let's. This is where the power of leverage comes in, right? Let's say the property just goes up, you know, 5% in value, okay, a year. Let's say the property appreciates 5%. And let's say we paid down the mortgage with some of that rent throughout the year. And we paid down the mortgage, let's say $2,000, which is very common. I might pay down the mortgage $2,000 over the hit time of the year. And what did we Invest? We invested 20. So I made a 10% return on mortgage reduction. See, what happened is the property went up value 5%. And then the property also the mortgage went down by two grand because we paid down the mortgage throughout the year. So I just increased. The property went up to $105,000. Property went up to 105,000 in fair market value. So I made five grand there, and the mortgage went down by two grand. So I made a 10% return there. See, I invested 20 and the property went up by 5%, which is five grand. And then the mortgage went down by $2,000. So that's a 10% rate of return on there. And so this is, this is adding up. So real quick, if I look at this, I made an extra $2,500 on this property throughout the year. The mortgage went down by two and the property went up by five. You see that? That's called equity. My equity increased on the property and I didn't put any more money in. I still made the cash flow of two grand, but the equity also went up by $2,500. So if I take that $2,500, who benefits from that? So if I do the math here, let's get legit. I'll ask Siri, my favorite friend here. 2,500 divided by four. Okay? That's $625. So look at this. Not only did I make $500 in cash flow, I made $625 in equity. That's tax free. It's just growing out there. Well, wow. If I made. Here's where it comes together, Jack, right? $500 plus 625. There's my. Just my return on investment, just in those three categories. Appreciation, mortgage reduction, and cash flow. I made 10, 25, 11, $25 right there. Now, what is my return on investment? I invested five grand. And I just do the math. 1125 divided by 5000, that's a 22.5% rate of return. And I did it in my Roth. Okay, now that may have been painful for some of you to go through all those numbers, but I want to summarize it with this. I bought a rental property that appreciated the mortgage went down because my tenant paid rent and I made a little bit of cash flow. That's what went into my Roth ira, either in the form of equity in my ownership in the LLC or with cash flow that stayed in the LLC and just grew. So my little Roth IRA with five grand made $1,125 in equity and cash flow in a given year. That's a 22 plus percent rate of return. That's how the rich get richer. That's how you build a million dollar Roth. So when you see me go out there and say, you can make 10 or 12%, I'm low, that's low. You can build a multi million dollar Roth IRA right now. No matter how old you are, no matter how much money you make by just starting to save even $12 a week, $36 a week, 150,000, $115,000 a week, or $412 a week if you're a 50 year older, you can do it and you can do it in a freaking Roth ira. Game over. Now, I thought that was a great ending to a video, but the guy said you didn't finish your crypto conversation. So let me throw this out. What's easy here is some of you might just take a Roth or a Roth 401K and you can go directly out there and, and start maybe setting up institutional accounts in crypto exchanges. A lot of times we have clients form an LLC and then go form an account like Coinbase and you have a crypto exchange. And then I go out and buy some of those. More like, should we say long shots in cryptocurrency? What would you call them? Yeah, we could do altcoins and we could go out there and buy a coin that maybe is not mainstream, it may not be Bitcoin or, or Ethereum. And you go out and buy some of these that are 10xing, 100xing, guess what? All of that crypto. And I'm not saying crypto, what do they say in the crypto industry? I'm not a financial advisor, I'm saying if you believe in it and you want to go out in the metaverse and buy some altcoins, go do it. But don't do it in your own name. Do it in your Roth. Maybe your Roth has that exchange or that Metamask wallet, or maybe your Roth or is part of an llc, and you go out and open up an exchange and you go out and buy crypto, if that's what you believe in. But if it's not crypto, what is it? Do you believe in gold? You believe them in silver? Do you believe in a small business down the street, a good friend that's opening up a little construction warehouse? You're going to start buying and selling on ebay or some sort of import, export or whatever form an llc. Now, there's prohibited transaction rules on how much of a role you can play in this. You can. You can be the manager of the llc, but you can get over to our podcast, the Directed IRA Podcast, and learn more about how to invest your Roth IRA and what you know. Check that out. And that's kind of the secret weapon of this whole process is opening up the accounts, stacking them so that you're building up Roths in multiple areas and you're investing in what you know and you're getting started. Now. Okay, now I want to finish with a motivational point. Please don't stop this video. This is so important. Your relationship with anything are your thoughts about it. And your thoughts are going to create feelings that are either going to motivate you or discourage you. So, for example, if right now you think of, I don't have any money in a Roth ira, I can't do this. I don't make enough money. Okay, Your thoughts about that just created feelings of guilt, shame, inadequacy, futility. I can't do this. And so what are you going to be motivated to do? Nothing. Because your thoughts about your Roth IRA created feelings that are crappy, and now you're not even going to take action. I'm emotional about this. To say this right now, I want to tell you, you can do this. You can create an account and start investing and saving and learning and empower yourself. That is a thought that maybe you haven't had about your bank account or your Roth ira. Maybe you're learning this for the first time. Take those thoughts and go, ooh, ooh, I felt something there. Maybe Mark Kohler isn't crazy. I can do this. And those thoughts about building a Roth IRA now give you feelings of excitement, empowerment, energy, belief in yourself, trust in yourself. And now you're like, those are pretty damn motivating feelings. I can do this. And what's crazy is you take a little baby step in the into this realm and you go open an account and you start investing even with a little ETF or a little stock or a little mutual fund just to get started until you can open up an LLC and do some other fun things but you get started but let that feeling of excitement and energy and empowerment guide you, motivate you to do this. Change the way you think about your Roth. Change the way you think about your money and I'll be here right along your side telling you you can do it and you can believe in it and know that it's true. I've got clients that have done this. I'm doing it. My kids are doing this. My mom is doing this. Don't give up on yourself. Change your thoughts about it. Get excited about it and let that excitement and that feeling be the energy you need the fuel to run that fire for you inside people. Keep studying, keep learning, keep dreaming. The American dream is real. Thanks.