It’s Unfair, But This Is How The Wealthy Legally Print Money

The US tax code is about 7,000 pages long. And you want to know how much of that actually tells you what you owe? About 2%. The other 98%, though, is incentives. It's the government saying, if you invest in the things that we need built, we're going to give you some tax dollars back. Things like housing, energy, infrastructure, technology. They need it all funded, right? They can't do it on their own.

So they wrote 7,000 pages of instruction that says, do this and we'll pay you for it.

And almost nobody reads this. They just look at the tax bill. But in this video, I'm going to show you 4 plays, 4 specific ways that I've used that the government will literally pay you to invest in 2026. Now, these aren't some theories. I've personally used every single one of these, and I'm going to give you the actual dollar amounts that I got back so you can do the exact same thing. You ready?

Let's go. All right.

Now, before we jump into this full video, let me just kind of explain to you why this happens, because most people think right off the bat like, oh, this is loopholes, this is, uh, what rich people do to get out of paying taxes, or, you know, this is going to be gray or black, illegal, whatever. Okay, here's why. The government, like a business and like other countries, they have their initiatives, they have things they want. So for example, the government prioritizes GDP, gross domestic product, right? The better the economy does, the more jobs it creates, the more things it produces, the better the country does, the more tax receipts the government gets. So the government needs people to produce gross domestic product. They need people to create companies, create technology, build products. They need energy produced.

They need oil, gas.

That's a big initiative for the Trump administration. They need infrastructure, all that funded. They need technology, right? Right now there's the AI race, all of those things. The government can't do those things. The saying I like to say about the government is the government cannot give something it has not taken. The government doesn't create.

You and I do.

So what the government does is says, well, we need this done. We need housing, we need business, we need technology, we need oil and gas from those things, but we can't do them. So what we want is our citizens to do those things. And if they do those things, if they invest into those things, then we'll pay them, or at least we won't charge them for that. Right? So these are incentives. They're incentives that are baked into the code, and they're basically telling you what to invest in. And those things are the things they need. So this isn't a loophole. It's a published policy.

Okay.

Now, before we jump into exactly how you can do this and how much money they'll pay you back to start investing, you have to understand that there's two different tracks here, right? So most of the world wants to make you be a consumer. The consumer path is the one that everybody is sort of on this predetermined track, right? Where you go to school, get good grades, get good jobs, you earn, and then the government takes their tax off the top of that. So you earn, you get taxed, and you live on what's left. Now you save a little bit, hopefully, right? You hope and pray that it's going to be enough, right? That's the default. Okay. But the problem is the tax code wasn't written for that path. You see, the tax code punishes consumers. The tax code was written for owners. The tax code was written specifically for investors.

Why?

Because the government needs people to invest in these things. So the tax code is written for investors. So if you're an investor or an owner, the tax code works for you. The tax code rewards this path, right? Again, the consumer gets punished. That's why most people don't understand this. So everything I'm going to show you right now after this is going to be for the investor-owner path. Okay, let me show you the mechanic that makes all 4 of these plays I'm about to show you work. Okay. Now, in order to get paid back by the government for investing, it's not what most people think, the consumers think. It's not about tax write-offs. Okay. It's about depreciation and tax credits. Most people don't understand what those are. Tax depreciation and tax credits, right? They're not about write-offs. You see, the thing with write-offs is that if my business spends money, if my business has expenses, then of course I deduct those expenses from my income so I don't pay tax on that income. That's obvious, right? But the problem is I still have to spend the money, right? I had to spend a dollar, and then sure, I don't have to pay tax on the dollar I spent, That's fine. It's like a coupon, right? But the government doesn't pay me for that. A lot of times, you know, we'll go out with friends and they're like, you know, oh yeah, just put on the business. You can deduct it. Yeah, but I still had to spend the money. What I want, what we're talking about here is getting paid to invest. What we want is maybe I spend a dollar, but I get back $3. Maybe I get back $5.

I want $10.

I want to write. I want money back without even having to spend my money. That's what I want. So how do we do that? It's not about write-offs. It's about tax depreciation and it's about tax credits. It's a completely different game, but that's how the tax code is working for investors and owners.

All right.

So let's break down how tax depreciation works. So basically it works like this. If I invest into an asset that the government wants, right? So they want me to build technology, they want me to build oil infrastructure, they want to build homes. If I invest into those things, then the government will allow me to depreciate those assets. They know that there's a lifetime of those assets and that over a period of time they're going to have to be maintained, fixed, repaired, or replaced. And so they'll allow me to depreciate those and I can remove that from my taxable income. Right. So things like capital equipment for my business, real estate, homes, rentals, things, energy infrastructure. And when I, when I invest in those things, then the IRS lets me depreciate that. Now, specifically in the United States, we have something also called bonus depreciation, which basically means we can take all the depreciation of the asset for the lifetime, and we can take it all in year 1. There's a little bit more advanced strategy. I'm going to talk about using accelerated depreciation and one more tool that unlocks this. I'll get back to that in a second. Now, for my international viewers, you also have this available to you. Now, maybe you don't have the bonus depreciation, but you also get incentivized. As a matter of fact, this last year, last fall, I went and did a keynote at the Bitcoin Asia Conference in Hong Kong. My first time over there was amazing. My wife and I, we ended up going to Beijing for a little vacation. I wanted to see the Great Wall. And the first time I was in China, and I think about China as communist China, overbearing, steal your money, tell you what to do kind of a thing. And so, you know, I love talking to people there, getting the feel for it. And I was surprised to find out that you can just start a business there and you can just grow that business. And yes, you owe taxes. And so I wanted to find out about the tax code. And I started asking them, you know, how much they pay in taxes personally, business-wise. And then I had to do some research on it, and sure enough, even China needs their people to invest into technology. And even in communist China, if you invest into technology, they give you tax depreciation, tax breaks, and things like that. So it's not always one for one, but it's very similar for my international audience. What happens is, again, I can invest in these things, I can take the depreciation, and a lot of times I can take 100% of that in year one. Now, sometimes Sometimes I get more back than when I invested because not only do I get depreciation, I get tax credits on top of it. Now, where this really starts to become magic, if you put the strategy together, is we add in one more layer and we call that OPM.

You know what OPM is?

We call that other people's money. You see, again, tax write-offs. I spent the dollar and sure, I don't pay tax on it, but I don't have it. I can buy an asset and get tax depreciation, but I still have to spend the money. What I want is to get paid without having to spend the money. And I do that by using other people's money, right? I don't have to use my own money for this. So there's multiple ways I'm going to go through some real examples for you. But typically I can finance the asset. There's, there's financing available. I get a loan, a line of credit. I could borrow against some other assets I already own. The key here is that I still get full depreciation on the total purchase price, whether I spent the money or not. Let me break this down. So if I, if I bought an asset, let's say it was $150,000 in assets, but I didn't spend it. I borrowed the $150,000, but I still get the whole $150,000 to write off anyway, even though I didn't spend the money. I borrowed the money. Now the tax refund, it comes back. In many cases, I could get a refund. Maybe I can go back and apply it to previous years. I could carry it forward into other years. There's a bunch of ways, and it depends on what the actual depreciation play that we have. But the way that I like to do this the most is I like to borrow against other assets. I always want to borrow to invest, right? That way I can get all the money back. I get the full tax break. And a lot of times the money that I get back pays for the asset itself. It could pay all the loan payments that are due on that loan, and it can pay for itself just on its own. Okay, so now exactly how do you do this? Right. We're using tax depreciation and tax credits. Now, this is not an exhaustive list. There's more ways that you can do this than I could sit here and talk about. You wouldn't want to sit here and watch me talk about that long, nor am I an expert in all of them. But here's 4 that I'm going to give you that are examples that I've personally used. Okay, so these are ones that I've personally used. It's not an exhaustive list. Now, the reason why I've chosen these 4 is, again, I've personally used them, but these can also all work even if you're a full-time W-2 employee. Okay, so not all depreciation works as a W-2 employee, but these can. So the first one, I'm going to start with my favorite. Play number 1 is, of course, if you already watch my channel, you know what I like. I like Bitcoin. Specifically, I want Bitcoin miners, and I want the government to buy my Bitcoin for me. I like that. And then I want my Bitcoin to buy me more Bitcoin every year. So here's how it works, okay? This is, this is the one I use personally. It's the one I'm using the most. So when I use, when I do Bitcoin mining, I'm basically investing in technology, right? I'm buying equipment. I'm buying physical computers, ASIC hardware, and that hardware produces Bitcoin. It classifies as equipment by the IRS Section 168, and it qualifies for 100% bonus depreciation in year 1. So here's how this works. Let's say that you have $150,000 of taxable income this year. Taxable, meaning your income minus your expenses, which your taxable income is, could be $150,000, could be $1.5 million. What's my taxable income? What have I whittled down off my deductions? and then I have a million dollars left that's going to be taxed. Well, I could go acquire the depreciation I need, so I could go get $150,000 of Bitcoin miners. I get a million dollars of Bitcoin miners. When I do that, the million dollars taxable income is offset by the million dollars depreciation, and it's written off. Now, you don't have to do 100%. It could be a partial or whatever you can afford. I like to do 100%. Now, the key for me is I want finance the whole thing. So if I make $1 million of income, I want $1 million of depreciation, but I don't want to spend $1 million to get it. So I'll borrow $1 million against other assets of lines of credit or financing that I have to buy that, and then no money out of my pocket, and I can cancel that out. Then it gets even better because now I own the asset. I own the Bitcoin mining equipment, and the miners are now producing Bitcoin every single day. So not only did I save the money right up front, Now I have an asset that's producing Bitcoin every single day. Now, how much Bitcoin does it produce? Well, it depends. The price of Bitcoin goes up and down, and the difficulty rate of the mining network, the hash rate, goes up and down as well. As of right now, time of this reporting, I think I'm mining a Bitcoin for about $50,000 or $55,000-ish, and Bitcoin's at $70,000. So I'm making about $20,000 on every Bitcoin that I mine right now today. It looks like the mining, the difficulty rating is coming down. Some of the hash power is dropping off, some of it switching over to AI. I'm expecting the price of Bitcoin to go back up and maybe I'll be making way more than that. It doesn't matter. The asset is paying me more than any other asset, more than real estate, more than whatever. And then the beautiful part is next year I take that new Bitcoin that I mined, I can borrow against it to buy more Bitcoin miners to wipe out more taxes. And it becomes a self-fulfilling prophecy, a flywheel, if you will. Okay, so that's my favorite one for now. If you don't like Bitcoin, that's fine. But I like it because the government's literally paying me to mine Bitcoin, right? And the asset becomes this perpetual machine. Okay. Now, the second play is one that I still use today. It's been one of my favorite forever. It's most people's favorite, and it's real estate. Now, the standard way that this is done is pretty boring, right? You're going to buy a rental property and then the IRS is going to allow you to depreciate that building over 27.5 years for, for residential property. Right. That's a slow drip. It's fine. It's the way that the billionaires have done it for years because they can buy enough real estate for that 27.5-year drip to really make, make a difference. For most of us, we don't have enough. We don't have a billion dollars. So what I want to do is I want to use real estate. I want to use the bonus depreciation, take that in year 1. But we need to do something called a cost segregation study. Now, just a real quick side note here. If you are a W-2 employee, you may not be able to use real estate depreciation to write off your earned income. So maybe your spouse could qualify as a full-time real estate professional, or there's an exclusion if you do a short-term rental. That's what I like to do. I own short-term rentals. You guys have probably seen some of my properties, my beach properties, my ranch properties. I like trophy properties. I like unique properties that I like to look at. I like to say I own that property. I like to go visit it. I call them experiential assets. I like experiential assets better than some S&P 500 on a spreadsheet. Assets I can go to, I can hold events at, I can have friends over to, and they go up faster because they're more scarce. They're scarce assets and they make more revenue because I rent them out when I'm not there. And they make a lot of money because they're desirable assets. And again, they qualify if you're a W-2 employee. So I can buy this trophy asset, I can do a cost segregation study. You have to hire a specialist to do this, but they basically reclassify the building components. Carpet, appliances, fixtures, landscaping, things like that. And then they bring them into a shorter schedule or a short timeframe. And then I can take all that depreciation in year 1. Now, the key thing to understand in this is, is the numbers. What you're depreciating is the property, not the land. So you want to buy properties where the value is in the property, not the land. So for example, a $300,000 property in San Antonio, Texas is typically going to be about 85% of the building allocation. And so with that, I could probably take about $70,000 in year 1 deductions. And let's say my tax rate was, say, 35%. I'd get about $25,000, $30,000 back. My payment, my down payment was $30,000. So basically what I saved in taxes made the down payment. Let me say this another way. The amount of money I would have given to the government, instead of going to the government, I can now put it down on a property. Yes. At the end of the day, my net difference is the same out of pocket except for one, money went to the government. Now I have a $300,000 property that's a rental property that's going up, compounding, whatever, 5% a year, plus it's making me rental income at the same time. So the tax refund paid for the payment they paid for me to invest. Plus, like I said, the property produces rent every month and it's going up in value. I can borrow against it later. Now, again, the detail for this one is that only the building is depreciated, right? So you want to make sure that you're doing you know, the part of the tax strategy is to buy it where the property value is the most. So San Antonio, Texas, like 85% building allocation, maybe California, San Francisco might have a 50% building allocation. So making, making sure you buy it in the right place, the right market is a key piece for this hack. Okay. Now play number 3 is one that I've done extensively over the years. It's one I'm not currently doing right now. It's not my favorite right now, but with what's going on over in Iran and the oil crisis, it might be a good time to get back in. Like I said, I've done this many, many times. And basically what you can do is invest into oil and gas. You can invest into a drilling program. And when you do that, about 75 to 90% of the money that you've invested is classified as intangible drilling costs. So that's like labor, fuel, site prep, things like that. What the IRS allows us to do is it allows us to deduct all of that in year 1. It's amazing, right? So not only did I deduct all of that in year 1, but then I have the asset, right?

So again, we're getting paid to invest.

If you notice, follow along, right? I got paid to get Bitcoin miners and now I have those computers as the asset that produce Bitcoin. I got paid to buy the rental property. Now I own the rental property going up in value and give me rental income. I got paid to buy an oil field or gas field and now I own the asset that makes me money. So let's say that I put in $50,000. I'm going to be able to deduct $42,000 immediately. Now let's say your rate's like 35%. That's like $15,000 back in your pocket, plus you have the asset. So you're getting royalty distributions whenever the well starts producing, when it starts making money. Now, again, my honest take here, full transparency, is that I've done this a lot. I still have some interest in some oil fields as of today. But again, I've shifted most of my focus over to Bitcoin. That's my favorite. And of course, real estate like this house that I'm in right here, because I love trophy real estate. I love the experiential side of it.

Maybe it's because I'm getting older and I want to go see my stuff.

But oil and gas, I think, like I said, the prices of oil and gas look like they're going higher with inflation. And so when you invest into oil and gas, you're betting on the price of gas, you're betting on the operator and the duration of where that's going. But it's been, it's been one of the oldest ways to get tax depreciation for a long time. It's been around for decades. The Trump administration is so pro-energy. I don't see it going, going away anytime soon. So for the right person, with enough income that you need to worry about it, this works, right? And yes, you can finance these. There are programs where you can finance this.

Okay.

Play number 4, the last one I give you for right now is solar. All right. Now, fun fact you may not know about me. I spent several years in the solar industry in a previous life. I was doing lead generation marketing online, and my partner and I were the largest solar residential solar lead generators in the nation at one point. And then I actually started a sales company. I worked with some of the biggest solar companies out there. Um, anyway, side note, uh, but today you can invest into solar. Of course, the government wants you to do that, part of the clean initiative. And if you invest in the solar, you get two types of payments. You get both tax depreciation and you get tax credits. You can get a 30% tax credit. Now, the thing about a tax credit is a tax credit is not a deduction. It's literally like a one-for-one coupon. So if you owe a dollar of taxes, you can apply one of your tax credits directly against it. So it's even better than a tax deduction or a tax depreciation. So for example, if you have a $100,000 system, you can get $30,000 straight off of your taxes. Okay? Then you can also depreciate the remaining 70% of the system. It's amazing, right? And you want a solar system that's an asset that's producing revenue. So think about it, right?

In a combined 1-year benefit, you get $60,000 back on $100,000 invested.

That's 60 cents on the dollar in year 1, and that's before the system even generates a single penny. So a lot of times these will go into commercial buildings, these could go into like standalone off-grid sites, things like that, and people will be paying for this. There's a long-term asset you might own for, say, 20 years that's going to continue to pay you. But the key piece here is that the government is so desperate to fund solar right? They're returning literally 60% of your investment in year 1, right? And that's not a loophole, that's part of what they're trying to accomplish. Um, so that's why I like solar. It's a pretty good, pretty good opportunity right now. Now again, personal transparency on this one, this is one that I'm actively researching for my own portfolio. I've been doing a lot of research. I have a couple companies that I'm talking to about, uh, personally I have not deployed into this from a depreciation standpoint yet. Yes, in this house we're off-grid. I have solar. My, my main residence, I have solar. I sold it. I believe in it, but I haven't been using it for depreciation just yet. Okay. If you do own a commercial property, then maybe you want to put this on your radar immediately. Okay. Now I do want to say something else just real quick. I'm not going to go deep into this. If you want me to make another video, I can. But what happens when I take the money that I was going to give to the government and instead I invest it, right? So I get that tax refund, that tax rebate, I reinvest it. I don't spend it. I don't go on a vacation. So I get $52,000 back from Bitcoin And I buy more assets and then those more assets create more income and that more income maybe creates a little bit of a bigger tax bill next year. But that bigger tax bill gives me more depreciation available. That cycle repeats. The refund gets bigger every year. The asset base gets bigger every year and you never sell anything. The assets start to create this flywheel and they start to grow faster and faster and faster with the kerosene, with the, with the supercharger of getting that tax rebate and putting it right back in there. Now, personally, this is how I've built most of my wealth. I've watched my balance sheet grow for years on this cycle. Same income, just rinsing, repeating. But, you know, same income, dramatically different outcome. And yes, I try to get my income to go higher, but you can do this without having to make more income because you're running the money through a different system. The loop that we want to run this through is a compounding system, right? It's a system I built my entire financial life around. Now, if you want to go deeper into the full system, what we do, what the 4, 5, 6, 7 steps are, I'll put a link down below. But for today, just understand these 4 plays, they're not isolated tricks. They connect into something much, much bigger here. Now, everything I showed you, the miners, the real estate, the oil, the gas, the solar, none of it's hidden, right? All of this is published. Like I said, 90, 90% of the code is there. The tax code, it's been there for decades. The only difference is the identity. You see, consumers see a bill. Owners and investors, they see a roadmap. So the code doesn't change. It's the person reading the code. They change. They, they read it through a different lens. So look, here's the action. Take one of these plays and you'll be ahead of 95% of the people already, right? Just sit down for a second and write down what is your taxable income this year?

How much do I expect to send to the government this year?

Then ask yourself, if I took that amount of money and I was able to invest it into like a layered wealth strategy that could compound at, say, 20%, what would that be worth in 20 years? What would it be worth in 30 years? Now, if you want to see how all 4 of these connect into one system, again, I'll put a link down below and you can go check that out. But look, the government is trying to pay people to invest in 2026.

They want to pay you.

To invest, but most people just never read the instructions. Don't let that be you. Read the instructions.

Something's broken. College degrees now cost more than ever and return less than ever. Houses are priced out of reach for an entire generation. Jobs can't keep pace with inflation. And yet right now, it's never been easier to build real wealth. A 22-year-old with a laptop and no degree is out-earning doctors. People are using credit to buy assets instead of going broke. AI just collapsed the cost of starting a business to almost zero. Both of those things are true simultaneously. And if that feels like a contradiction, that's because it is. That tension, it has a name. And once you understand it, you're not going to be able to unsee it. Now, in order to really understand this, we have to go back in time. So let's jump in a time machine. Let's go back about 50-some years ago to 1971. Now, for most of modern history, The dollar, the US dollar, it was backed by gold. In that gold standard, money had a fixed relationship with something real. We call this an equity-based system. Gold had been money for 5,000 years. Gold is a commodity. When I have the gold, I have the gold. When you have the gold, you have the gold. But when we ended that relationship, August 15th, 1971, then President Richard Nixon, he closed the gold window. Basically what that means is that he made it where the dollar is no longer redeemable for gold. He severed the ties. And so we went from a gold-based system, an equity-based system, and we became a dollar-based, a fiat-based, a debt-based monetary system. The dollar now is pure debt. What that means is that governments can now create money without limit. There's no restraint. Now, it's true for some of you that are going to leave the comments down below. It's true that from the creation of the Federal Reserve in 1913, They did print money and they did continue to print more dollars than they had gold in the bank, which led to 1933 seizure in gold, 1944 Bretton Woods Agreement. But in 1971, all bets were off. It was a now free-floating fiat debt-based system. But what happened next is the most important part. What happened was that asset prices completely detached from wages as well, and they did this permanently. The cost of a house in 1971 versus today in real terms is crazy. Now, what happened next? Well, of course, if the dollar's detached from, uh, gold, there's no restraint, we print unlimited amounts of dollars, then asset prices also detach. And they detach from wages permanently, which means the cost of a house, um, the cost of a college degree, and the S&P 500 all rocketed higher while median income started lagging behind. So this is what really caused the path. You see, Pre-1971, when we were still in a gold-based system, an equity-based system, the conventional path to wealth worked. In that path, we would go to school, we'd get good grades, we'd go to college, we'd get a degree, we'd get a good job, and we'd save money. You see, in that equity-based system, in that gold-based system, we could save. Things were cheaper. But that system was designed for a pre-1971 world, a world where a single income could still buy a house. This is a world where savings held their value. Most people didn't even invest in the stock market for another decade after that. At that point, one person could work. You could have the house, you could have the car. One person could stay home. We could save our money and we could retire.

Savings held value.

That's when pensions existed. But the thing is, is that world is gone. You see, the problem is the rulebook that's being handed down to kids, the, the rulebook they're supposed to follow, the blueprint to wealth, you know, the one that they get all through 12 years of going to school plus through college. Well, the problem is that rulebook, it hasn't changed. It didn't change in 1971. They didn't update the instructions, but they just kept handing out the same map. But the problem is they hand— they were handing out a map for a city that just no longer exists anymore. And to really understand this, we have to understand two different games. You see, there was the game we were supposed to play, and then there's the game we should be playing now. But most people haven't figured this out. And the reason why is you have to understand human nature. You see, Humans are natural game readers.

We love games, which is why we create game theory around things.

If you've ever watched a child, a small child in preschool, for example, if you have kids, maybe you've seen this, and the child could walk into preschool, into daycare, whatever, they could walk into almost any situation. They go to the park where kids are playing, maybe even video games or sports, and they could just sort of watch the other kids and see what they're doing. And within minutes, they've figured out what the rules are. They figured out in their creative mind what game is probably being played. They can jump in, start playing the game. They can start testing out the boundaries of the game. They can find the edges. All right? That instinct is hardwired. As a matter of fact, there's a school called Synthesis. It's a school that Elon Musk helped pioneer, and I had my daughter go to it. It was like extracurriculum. And so after regular school, she would jump on— it was online school. And this is exactly what would happen. They would basically jump on, and the instructors wouldn't really instruct.

They would just say, hey, everyone's playing a game.

Jump in, it'd be like a video game. And then my daughter would just have to like watch, see what's going on, learn how to start playing the game and try to figure it out with no instructions at all. The same thing. And the thing is, is because we're trying to keep that recognition of the game, game theory, learning how to observe a game and play a game and win a game intact. Because the problem is over the 12 years of institutional education, it's been trained out of you. You see, school isn't designed to teach you to read the game. It's not designed to allow you to use your creativity. It's designed to teach you to follow a set of instructions. You know, come here, uh, do this assignment, get it done by this time, sit down, uh, wait for the bell to ring.

When the bell rings, move over here, wait your turn, right?

All of those things here, you know, they, they tell you what you're supposed to do, what you're supposed to do next. But then what happens? Well, I continue that in college. And then by the time I'm done, most people enter their adult life. But the most important game, the most important game they'll ever play in their entire life, they're forced to play it, but they're playing that game without ever asking, what are the actual rules here? Like, what game are we playing? What are the rules? Uh, who wrote the rules? Who benefits from these rules? You see, in the old game, the one that was pre-1971, we would earn income, we'd pay taxes first, we'd save what's left. We'd buy a house, we invest in our 401, our pension, we'd wait 40 years, and that was great. This game was designed for a monetary system that ended in 1971. That was designed for a sound money system that was designed for a gold-based system that was designed for an equity-based system. But in 1971, we went into a debt-based fiat system. So the problem is trying to play the old game in today's rules. Playing today is like showing up to play chess, but you find out that everyone else probably switched to poker or something like that. But there's a new game and you can learn how to play the new game. And the new game is similar but different. In the new game, you acquire assets and you acquire assets before liabilities. You use credit as a tool, but not a threat. You reclaim your tax capital instead of giving it to the government. And I use the incentives and I invest that, I redeploy it, I invest it, and then I use leverage to control more than what I own. Doing this, then I can build income. And these are streams of income that don't require my time. And how do I do all this? Well, there's a unique set of tools that we have today. The tools for this game is AI. It's accessible credit, it's fractional asset ownership, and it's global markets that we have access to. Now, none of this existed 20 years ago. Right? And that's why the paradox. That's why, while for most people playing the old game, it's never been harder to get ahead, but at the same time, it's never been easier because of these tools that we have. The barrier to entry has never been lower. You see, the tragedy isn't that people are losing, it's that they're losing a game they didn't even know they were playing. Now it's not because of laziness and it's not because they're stupid.

Right?

The old game, it just doesn't work anymore. The old game had visible proof that it did work, right?

It worked for decades.

It worked for a long time. Your grandparents, your parents' generation, they, they made it work, right?

But that's—

and that social proof is powerful, but it doesn't work anymore. We just haven't caught onto it. You see, the system also actively defends itself. What do I mean by that? I mean that every institution, the school, the media, your financial advisors who went to the same school, by the way, the banks, They all have an incentive to keep you in the old game. Like for example, your advisor, they get paid to put you in a 401. They're sales reps. Your bank, it profits when you keep your savings account open. The whole infrastructure, right? The whole conventional financial infrastructure, all that advice is built on the old game. And there's a psychological cost to admitting the game changed because if the game changed, then it means that everything you were told was wrong. It's called cognitive dissonance. If everything I've been told is wrong, then everything I know must change. Everything I know is up in question, and that's very hard to accept. But if you look around you, right, if you just take a look around, the evidence is everywhere. The people getting rich right now aren't climbing the old ladder. They're building service-based businesses in 90 days. They're using tax efficiency to reclaim $0.40 or $0.50 of every single dollar. They're borrowing against assets instead of selling them. They're playing an entirely different game. I mean, the biggest financial risk that you can take right now isn't starting a business. It's not buying Bitcoin. It's continuing to play a game that was designed for a world that no longer exists.

Okay, so now let me lay it out for you.

There's 5 levels that you need to go through in this new game. I'm going to walk you through each layer one by one so you can understand the structural difference between the 2 games, right? We're going to go through the 5 levels of capital. That's what we're gonna use as our reference point. All right, so we start with level number 1. Now this, this level didn't change. This level number 1 is labor. In this, in this part, we're working, right? We have a job, we're trading our time for money, and in this role, typically we're fully taxed, right? So I'm working, I'm earning money, the government takes their cut off the top, I have whatever's left, and then I pay for my life and maybe I save a couple bucks. The problem with that is, of course, it's not scalable, right? This is where most people spend their entire career. They're stuck at level 1. Think of it like a video game, but the goal would be then to climb up to level 5. But let's go to level 2. So hopefully after the government's taken their cut, I've spent my life, you know, for my lifestyle, and then I save a little bit. That's level 2 savings. So hopefully I'm investing whatever's left after taxes right now.

This is better.

At least now I have a future. I have some assets that are growing, but it's still very slow.

Okay.

But this is where almost all conventional financial advice lives.

As I said, go to school, get good grades, save for a time, 40 years.

Most people never get past level 2, but we're going to get to level 5. So level 3 is ownership. We want to be owners. We want to own property. But more importantly than that, we want to be owners because in ownership, the entire business system, the entire tax code was written for owners. If you're not an owner, if you're in level 1 or 2, you're punished. If you're in level 3, 4, or 5, It's written for you. So I wanna own productive assets. These are businesses. This might be real estate, rental real estate. I have equity in other businesses, equity in private, private equity or venture capital, right? This is where wealth starts appearing. Of course, Bitcoin is one of my favorite assets to own, and things like that. This is where the wealth really starts appearing because now your wealth is compounding every single year. Compounding means growing on top of growing on top of growing 5%, 8%, 20%, 30%. Per year without you having to work any harder, any longer. So that is real wealth growth. Okay, then we get to level 4. Most people have never thought about level 4 or gotten here, and that is now collateral. In level 4, we wanna use collateral. We want to use assets to acquire more assets, but we do it without selling them. You see, most people, in order to acquire assets, I want to get a little bit in my S&P 500, so I'm gonna work some hours, and then I'd like to get a rental property, so I have to work more hours to get the rental property, and then I'd like to get some Bitcoin, so I have to work more hours to get my Bitcoin. But at level 4, we use our assets as collateral, and that collateral allows us to use assets to get more assets. And again, we do that without selling them. How do we do that without selling them? Well, we borrow against the asset. We borrow against the appreciation instead of triggering taxes. I call it harvested appreciation. What do I mean by that? Bitcoin has been going up at 50% a year.

Uh, obviously not last year.

Um, the S&P 500 is going up at 15% a year. Uh, so you have some growth. That's the appreciation of the asset. It's compounding on top of that. But if my Bitcoin went up by 20% or 50%, or my stocks went up 20%, there's some appreciation. And what I can do is I can harvest that appreciation using debt.

And I do that because two reasons.

Number one, I don't trigger taxes. If I trigger taxes, a big chunk of it, 20 to 50% goes to taxes, but I also no longer have the asset to compound and I no longer have the asset to be used as collateral for more assets. Okay. Finally, we get to level 5. This is when you win the game. This is where we have engineered capital. What do I mean by engineered capital? I mean, we design a system where the balance sheet, your assets on the balance sheet compound itself.

All right.

This is where tax savings— I can take all my earned income and write it off against tax depreciation, and all of that income now goes into assets and it starts compounding like a flywheel. The capital builds assets. The assets are collateral. The collateral buys more assets, and it starts to have a loop, a flywheel loop that goes faster and faster and faster. You see, most people spend their entire lives at level 1 and level 2, not because level 3, 4, and 5 are inaccessible. They never get to 3, 4, and 5 because nobody told them that the ladder even existed, right? They didn't step in and look at the world and realize there's a completely different game that's being played. They're just playing the game of being— of doing what they were told to do. And so the key piece that you need to take away from this is that right now is the best time to do this. So you're not too late. You can still move into 3, 4, and 5.

Why?

Well, AI has collapsed the cost of starting a business to near zero.

All right.

Level 3 is more accessible than it's ever been in any time in history. Credit is available right now to you today.

Credit's a tool.

Now, it's always been available to the wealthy, right? But the knowledge of how to use it correctly is now democratized. We can now use tax-efficient strategies that used to require a team of lawyers that are now teachable frameworks that you can just use. You can just follow. There's a new game, and the new game is the paradox. Again, the paradox is it's never been harder to get by, but if you learn the new game, it's easier. And it's not easier because the world got more generous. It's easier because the tools and the information have finally caught up.

So Let's go ahead and close this out, right?

Let's go back to what we talked about in the beginning, right? As I said, it's never been harder and it's never been easier at the same time. And both of those are true. The old game is harder than it's ever been. The new game, it's more accessible than it's ever been. But the difference between the people winning right now and the people that are working harder, the people that are falling behind, it's not intelligence. It's not work ethic. It's not luck. It's which game they're playing.

It's game theory.

Can you spot a game? Can you join the game?

Can you play the right game?

Now, the good news is that games can be learned, right? That instinct that you had when you were a kid, remember watching, like observing the rules, finding the edges? It's still inside you. It just needs to be cultivated. It needs to be dusted off a little bit. It needs to be aimed at the right game. Most people spend their entire lives building wealth and they never once think about what happens to it. When they're gone. You know, they just assume that their kids are going to figure it out. They assume that the lawyer is going to handle it. They assume that the money just transfers, but it doesn't. 90% of wealthy families lose everything by the third generation. And it's not because the money wasn't there. It's not because they picked the wrong investments. It's because they passed down the assets, but they didn't pass down the operating system. So in this video, I'm going to change that. I'm going to show you the exact system I've I built to make sure that my wealth doesn't die with me. I want to show you how you can do the exact same thing, and it starts with something most people have never heard of. Are you ready? Let's go. All right, now to start this off, I want to kick it off with just a personal story. Uh, if you follow along, if you watch me on Instagram— uh, by the way, if you don't, there's a link down below— uh, but you'll see like I travel around the world, I do a lot of crazy things. Last week I was, uh, jumping out of helicopters in Canada, and this week coming up I am riding my dirt bike across the desert of Baja down to Cabo San Lucas. And so my wife, she's like, man, you know, like, I'm worried. Like, what happens if you disappear? Like, what happens if something happens to you, right? What happens if I don't come back? What does my family know about the wealth? How do they know what to do? How do they manage everything that we've built? So of course, like, we have life insurance and we have money and we have assets, but like, where's the instructions? Is there a document? More importantly, are there a set of rules or do they just get the money and they don't know what to do with it? They spend it and then it's gone. There's a saying, shirt sleeves to shirt sleeves in 3 generations. What this means is that we have the first generation that they earn it, right? They build all that wealth, they build the machinery, right? The second generation typically a lot of times hopefully can maintain that. But by the time it gets to the third generation, they completely destroy the wealth. And the thing is, is it's not a money problem. It's not that the money runs out. It's an instruction problem. It's an operating system problem. It's a values problem. Now there's 3 reasons why wealth dies.

All right.

First, there's no rules. So every decision that they get is just emotional. They get the money, they don't know what to do with it. They didn't earn it. They don't respect it. And so there's no written principles about that. The second reason is there's no structure, right? So the person didn't earn the wealth. They didn't build the system that generated the wealth. And everything that lives in the person's head just died. And so what happens is when they die, then things go a lot of times into probate court, maybe into legal battles. Taxes start destroying it. All of those things. Another true personal story here. My sister, unfortunately, her husband died when her kids were just very young. And I had to watch her go through this firsthand. It was terrible. It's a nightmare that you don't want to have to go through. It's crazy how much the state will fight you. You over assets that you basically own, right? You're, you're married, right? You should have those assets. It's a complete nightmare. And so you don't want that to happen. Now, the third one might be the most dangerous one, and it's not because there's not enough money and it's not because of probate. Maybe you have the will, you have the trust, whatever. But the most important one is the identity transfer. You see, what happens is I have built a system for my assets to continue to multiply. I have built a system where my taxes don't get paid to the government. They buy me more assets and my assets pay for my life. And that can go on in perpetuity. And in the second generation or the third generation, those assets will be worth so much money. But if my heirs don't know about that system, they just see the money. They don't have the identity. They get the balance sheet, but they don't get the operating system. That's the problem. We need to make sure that identity gets passed down. And don't worry, there's an exact step-by-step process. I'll walk you through how to do that. But real quickly, if you just think about this for a second, think about your kids, think about how well you've trained your kids, but more importantly, think about this. Think about your grandkids. I've heard that the sign of a good father isn't how well their kids behave, it's how well their grandkids behave. Think about that, right? Did I teach my own kids good enough to teach their kids? That's the real question. And how do we do that? Well, we give them a set of instructions, which we'll come back to. You see, most people think about estate planning and again, they think about the wills and they think about the trusts and like, yeah, I wrote something down, it's in my safe. Yes, I have an attorney, right? That's, that's the asset transfer. But again, what we want to talk about is the legacy transfer. And what is the legacy? The legacy is me. It's my values. It's my vision, it's my principles, it's my rules. And I don't want to say my, my, my, but like, I'm the one that had those values, vision. I'm the one that had those principles. I'm the one that had those rules that created the wealth in the first place. So it only makes sense that those values should be passed down to the next generation if they're going to manage it. Okay, so let's break down exactly how we do this. And I do it through something I call a family constitution. Now, the family constitution can be very simple. It can also be much more complex. As a matter of fact, I'll give you a tool if you want to do this on your own at the end. But a family constitution is basically a written document. Think of it like the American Constitution, the greatest constitution ever made. But it's a, it's a document and it codifies your family's values. All right. It basically spells out what your values are, what your long-term vision is, all the different rules that you have about how you've built the wealth, how you use the wealth, how the wealth should be transferred, all of those things. All right. Now, what are some of these rules that should be there? What are some of these principles? Well, it comes down to what you want your values to be. How should you pass those down? More importantly, like, how do you view the world? So for example, do you value, um, health? Well, maybe you want to make sure that your heirs value health. Do you want to value giving? Well, then maybe you should value giving. Do you value education? Do you value faith? What are these values that help guide your decisions? And then we can write those things down. How did I build the wealth? What do I think about wealth? For me, it's not just about money. The reason why I only— the only reason why I care about money is I want to give my family more options and I want to help more people. So I wouldn't want to give money that would contradict those things. I wouldn't want to give money to my heirs that doesn't give them more options and doesn't help more people. I don't want them to be lazy, sitting on the couch getting paid to do nothing. That would be contradictory to all the values that I have. I want them to prioritize health. I don't want them sitting on the couch drinking soda, watching Netflix. That would be against my values. How can I make sure that a certain percentage of that wealth gets donated to the charities of my choice? For example, I told you one of the things I'm going to be doing is riding my dirt bike across the, the desert down to Mexico. And over the years I've been doing that, over 2 decades now, I, I give back to many charities along the peninsula. That's been my life. Well, I kind of want my money to continue to give to those, and so maybe that should be in the constitution. You're starting to get the idea. Okay, so that is the structure. First of all, I want to make sure that I've built the system and I don't just pass down assets, but I pass down the system. And the system has a constitution or set of rules. One of the families that you hear about the most, they've been able to pass wealth down from generation to generation longer than any other family in history. I'm talking about the Rockefellers. You've probably heard of them. And they didn't just they passed down capital, right? That's not how it worked. All the other families, the Carnegies, whatever, they lost their money. But the Rockefellers, they passed down frameworks, they passed down rules, they passed down the operating system. As a matter of fact, J.D. Rockefeller, the, the, the founder of them, he wrote 38 letters to his son. It's amazing to read. You should check it out. Each one of those life lessons was education and contribution, contribution requirements, structural rules. Now, again, other families like the Vanderbilts, they had more money at the same time, but they lost it all. All right. Now, in order to do this, in order to pass this down, there's 3 layers that you want to think through and there's 3 layers in there. So the first one is going to be your vision and your values. All right. So this answers who we are. Who is the Moss family? What does the Moss family stand for? What are the values that we have? We're, we're, you know, we're adventurers, we're caregivers, we're truth tellers, we're a family of faith, right? All of those things. Who are we as a family? Why do we build wealth? What do we believe about money? What do we believe about stewardship? What do we believe about creating value? What do we believe about giving back to the world? Why do we build wealth? So I want to build all of that into the vision part, who we are, why we want to build wealth. Think of it like I'm leaving a letter to my heirs, right? I'm going to give this to my kids, but I'm going to give it to my kids, which will give to my grandkids or my great-grandkids who may never even know me. So it's like, these are the things that I believe made me who I am today. These are the things that I hold important in the world. These are the things that I want you to know. And if you don't live up to those values, then like the Soup Nazi in Seinfeld, no money for you. So those core values, they should be codified. They should be written down, right? They're written down in code. They're written down so everybody can see those. Okay, so now this layer becomes the lens. So when someone wants to start a business again, if they want to take a risk, they want to spend family capital, we're not going to argue about their opinions, right? They're going to reference what the values are. Okay, then the next layer we want to go through is the rules of the wealth around the stewardship of the money. And kind of more importantly, like How is the wealth supposed to be used? So this would be principles on the wealth stewardship. So my investment philosophy, how I think about spending and consumption rules. So, for example, we never sell assets to pay for consumption, right? That's one of my core rules. We only sell assets to buy more assets. For example, a charitable giving. How much of that wealth should be given to charities? What type of charity should we do that for? Now, there's 3 never break rules that I like I like to think about in my own personal, uh, constitution. This is for me, doesn't have to be for you. But again, as I said, we never sell assets, right? If we need liquidity, we borrow against our assets. If an asset's sold, then we rotate it into another, another asset. We never consume it. As a matter of fact, as I wrote out instructions for my wife and my kids— I have one set of instructions for my wife, I have another set of instructions for my kids— if my wife and I were to die, it's like, open this, call this phone number, here's a set of instructions. But it's like Here's how much cash flow is coming in. You can take this money and create more cash flow here. If you need more cash flow, you could borrow against this asset and put it here for even more cash flow. And then if you need even more cash flow, which they never would, then you can take these assets and borrow against that. So I've laid out this whole set of instructions for them to follow if they want to do that. But we never consume the assets again. Uh, use life insurance. Use your, use your assets, build more life insurance if you need to, whatever you can do to get that done. All right. Then we want to have the declaration. And there's a difference with the declaration and articles, right? So the vision is like a Declaration of Independence. But what are the specific articles that will make it true? So like, we pursue our goals with persistence and discipline, right?

Sounds great.

What does that look like? We want to operationalize the world. If I had persistence or if I had discipline, what would I be doing? How would a trustee 2, 3, 4 generations later, how would they know if that's true? Right. So we want to make sure that all those values are measurable, right? We don't want it just to be fluffy words that seem like they're saying something but really don't say anything at all. Okay. Then the third layer is governance and evolution. This answers how does this thing actually get used over time? Right. Governance is, is who manages it. Who gets the voting rights? Who gets to be the trustee or pick the trustee? Who gets the votes? Uh, we want to lay out what succession plans are, like rules that the heirs must use to plan for the next generation succession. We want to think about how the constitution can evolve without being completely gutted, sort of like what's happening to the US Constitution. Uh, but this is not, uh, Moses writing on stone tablets. You can change it. You can change it from time to time as things change. Feel free to change it. It's part of the reason why the inheritance isn't just the assets. The inheritance is passing down the system. So I have a set of rules, as I kind of said, laid out like, hey, turn this into cash flow here. Here's the ways we'd use cash flow, borrow against asset. But shoot, in 5, 10, 15, 20 years, that might not be a good strategy anymore, which is why you don't want to just pass down the assets, not even just the system. I need to pass down the thinking. I need to pass down the values that created that system so it can be fluid. Okay, now if you're watching all this and you're thinking like, hey, this is great, uh, I want to do this, but I don't know where to start, or, um, you know, I'll get to it when I have time, or I'll talk to my attorney about it— well, I built something for you. It's a Family Constitution Planner, and it's an AI bot that I, that I built. And basically it's just going to walk you through each layer, and it's going to interview you. It's going to ask you one question by one question by one question. It'll format whole thing and then give it back to you. I'll give it to you for free. There's a link down in the description down below. But if you want to do this on your own, the first step would be pull out a piece of paper, open up a word processor, Google Docs, whatever. Start with a blank piece of paper, write down just your thoughts, just start brain dumping right now. I might do this without doing this first before I even start with AI. The reason why is sometimes AI puts things in your head that maybe shouldn't be there, sort of like Inception, uh, that it planted in your brain. So I like to start with sort of my own brainstorming first, write down a couple things that I have that are important to me, write those down. All right, then step number 2 is do it with your spouse, do it with your spouse. But what I would do is have them do it separately. So I don't want to influence my wife's thinking or vice versa, have them do it together and separately and then come together with it, right? I want her input, she wants my input, but I don't want them to go together. I don't want to supersede I want to make sure that we're growing together, not apart. And then step number 3, then we can go into the AI tool. All right. So we use AI as a brainstorming partner. The Family Constitution Planner, the AI that I put together, it's going to walk you through it question by question. It's going to walk you through all the layers. It's going to format it all into a clean document. And then finally, step 4, it's important. So put it on your calendar, block out some time. I don't know, give yourself an hour, something like that. It's not a form. It's a conversation. With your future family. Think about how I'm talking to my future heirs. Step number 5, once you get it and it's formatted, read it out loud. Read it because someone else is going to be reading in the future.

Edit it.

Add some stories to it. Add some of your personal stories so they can get to know you. Make it sound like you. It's not a legal document. Okay. Now, the urgency is that life isn't guaranteed. Tomorrow's not guaranteed. Anything can happen to you at any given time. So it's better to have anything. It's better to have something than nothing. Okay, so again, tomorrow's not guaranteed. Get this done. Like, I don't know, get it done on Saturday and then make it real. Okay. The family constitution is completely useless if it just sits in the AI or it sits on your computer. So you want to make it accessible, print it out, bind it, give copies to all the adult family members, store a digital version, reference it whenever big decisions come up, pull it out, ask if I should update my values. If I need to change any of my plans, if I want to change what the family culture is about, anything like that. And then make sure, you know, hopefully you have an attorney. Get it with your attorney. Okay. Make sure it's in your trust. The trust structures, they're tools. A living trust, irrevocable trust. Of course, you can do LLCs, family foundations, whatever, but make sure all of this is with your attorney. So again, if something happens to you, there's a phone number they can call and they can get the whole process going. If you wanna see the most important video of the next piece, then you're probably gonna watch this video right here, and I'll see you over there.