Give Me 7 Minutes And You Will Never Sell Anything Ever Again

The top 2%, they don't save the way you save. They don't invest the way you invest, and they don't retire the way you retire. The real difference, it's not really a secret asset though. It's not a hedge fund and it isn't an offshore account. It's one move, one single repeatable, deeply, I don't know, unsexy move that the wealthy make and you don't. They never spend their assets ever. They issue credit against their assets. And today I'm gonna show you what that actually looks like, what that means, why it changes everything, and why almost nobody outside of the top fraction of a percent are doing it. You ready? Let's go. Now, before we can get into how they do this and maybe why you might want to copy them, other than why copying success is always a good thing to do, let's talk about what— let's talk about what they're trying to save themselves from. So what happens is assets are hopefully growing if you make the right investment assets, and they have what's called compound annual growth. So they're compounding. Compounding means that it's growth on top of growth. Now, most people don't understand this. The human brain really is, uh, makes it difficult to even comprehend what this means. Now, Einstein called the compounding the 8th wonder of the world. He said that those who know it earn it, and those who don't know it, they pay it. So what that means is there's no standing still in this life. That means that you're either growing your wealth or you're giving your wealth up. You're either earning it or you're paying it. And again, the human mind can't understand this. And the reason why is because the human mind thinks linear like this. So if I continue to save and if I continue to invest, I start with $100,000 and maybe I end up with $1 million over here, but that's not how the law of compounding works. The law of compounding can be summed up pretty simply, and we use something called the rule of 72. So we take the yield that we earn and we divide it by 72. So let's just say hypothetically Bitcoin's 200 moving day average is about a 30% CAGR, compound annual growth rate, somewhere between 30 to 50%. Let's just call it 20 just for easy numbers. So I have a 20% compound annual growth rate divided by 72 equals 3.5 years. So what that means is my wealth doubles every 3.5 years. So if I start with $1 million, in 3.5 years, it's $2 million. And then it's $4 million. And then it's $8 million. And then it's $16 million. And then it's $32 million. And then it's $64 million. And then it's $128 million. And my wealth starts going parabolic. What this means is at the same time it took me to go 3 years here, also took me 3 years here. That means in 3 years, I made $64 million in only 3 3 years. That's what the law of compounding does. And so the reason why the wealthy never sell their assets is, let's say that I was able to turn $1 million into $2 million and I sell it and I take this money and I go on vacation and I send my daughter to college and I buy a new house and I buy a new car. Well, that's cool. I take that extra million I made and I buy these things that I wanted, but what I gave up is $64 million if I just would have waited another decade. That is the cost of you selling your assets. And that's what the wealthy know. So what we want to do instead is if I want this million dollars right here, what I could do is I could take a loan out for the $1 million. Now, of course, I have to pay back this loan. This could cost me 7 to 10%. But again, we've established this is going up by 20%. So if this is going up at 20%, but I have a loan at 10%, I'll take that deal every day. As long as this asset continues compounding faster than the rate of the debt that I have to pay, I'll want to do that forever. Now, one question that people would typically ask me, which is the same thing, at what point do I pay that loan off? And again, I'll reiterate, As long as the asset is continuing to go up faster than the rate of debt, why would I ever want to do that? Now, while this may sound foreign to you, that might just be because of the people that you hang out with or the advisors that you have. This is not an underground tactic that people don't know about. It's just a tactic that the wealthy use, the billionaires use, and you maybe don't hang out with that many billionaires. But let me point to the fact— here's a Forbes article that I was recently reading where it shows that the richest people in the world can access billions without selling their stock. As a matter of fact, 50% of Fortune 500 CEOs, not a small number, half of Fortune 500 CEOs issue credit against their stock rather than selling it. Why is that? No, I've already told you why. Number one, we break the compounding, but it gets even worse. On top of the breaking the compounding, which could cost me $64 million in 10 years, I'm also paying tax. So when I sell an asset, it's a taxable event, meaning if I sell an asset, it's taxable. If I make a profit, I pay the tax. If I take a loss, I could claim that back on my taxes. It's a taxable event. Debt is never a taxable event. So if I'm one of the wealthiest CEOs in the world and I want to have money to buy a new house or buy a new company like Elon Musk did when he borrowed against SpaceX to buy Twitter, for example, I want to buy a company, I want to buy a house, I could sell the stock. But the problem is, let's say that I need $1 million. I might have to sell $1.5 million worth of stock to get the million I need versus what I could do is I could issue credit against the asset that I have so I could take a million-dollar credit line against my stock portfolio. Now I pay zero tax on that because of course debt is not taxed. Debt is not a taxable event. So I can access what I call renting the liquidity. I can rent the liquidity against the asset without giving the asset up. It allows me to save on the taxes and it allows me to hold the asset to continue to compound forever. All right. Now, just a quick warning here. Sure. While 50% of Fortune 500 CEOs do this and the fact that other people can do it means that you can as well. The truth is that they have a system, they have a team, they have advisors that understand this and can put all types of risk mitigation strategies in place to make sure they don't blow themselves up. The problem is when you are smart enough to understand the problem, but not smart enough to keep yourself out of danger, things can turn south for you. So for example, you're watching TV and you're watching some guys in Hawaii surfing these waves and you're like, shoot, I'd like to go surf those waves. But you're from the Midwest. You've never been in the ocean before. It's probably not the best thing. Now you might go, but they're doing it. I don't see anybody dying out there. But they've had to work their way up there over time. So before you just go jump in and do these dangerous strategies, make sure that you're mitigating your risk properly, making sure that you have the proper liquidity, making sure that you have your treasury doctrine in place and you understand what your parameters are, your risk leverage policies are, your LTV ratios. Make sure that you understand how you can protect yourself. The wealthy do another thing differently. They never think about how much money they can make on a winning investment. They always think about how much they could lose and how they protect themselves from it. That's why Warren Buffett said the number one rule to investing is don't lose money. Number 2 rule is don't forget number 1. And so a hedge fund is literally called a hedge fund because they hedge every single position they make. And so while we certainly want to plan for growth and shoot for the moon, we make sure to hedge our position. So certainly do what the successful do, take a strategy like the successful do, but make sure you also put the risk mitigation strategies in that the successful do as well. So there's only one piece of the puzzle. If you want to learn the entire system, or how you can apply this system to yourself, then you might want to go watch this video that I have right here, which breaks it down into even more detail. And I'll see you over there.