The biggest wealth transfer in US history is happening right now...

Hey there, real quick, before we jump into the episode, listen, if your earnings treadmill hasn't set you free yet, running faster won't either. Listen, hustle without principles just going to burn you out. So here's what I want for you. I want you to join me for my money machine experience live. It is three free trainings. Deep dive into how to escape the treadmill and build a money machine that actually works for you. All right, grab your spot here by going to moneymachinelive.com and I'll see you in the free training. What if I told you the biggest wealth transfer in the US and in history is happening right now and that most people will miss out on it? If you've ever wondered how to build real wealth or if you feel like you're being left behind, this episode's for you. Here's why. I'm about to reveal how you can take advantage of this 84 trillion with a T dollar wealth transfer even if you're not getting an inheritance. Listen, it's about positioning yourself to build lasting financial freedom the right way, based on the opportunities that present themselves.

Right now, we're in the middle of the largest wealth transfer in US history, with literally $84 trillion set to be passed down over the next 20 years. Now, for many, this wealth will come from inheritances, but even if you're not expecting to inherit any money, there's still huge opportunities that, that are there for you to build your wealth. And today I'm going to explain what's happening, what types of assets that might be transferred are, and how you can take advantage of this shift, whether you're inheriting them or not. All right, so here's the deal. When talking about this transfer of wealth of $84 trillion by 2045, 53 trillion.

Are expected to go to heirs, and 31 trillion are expected to go to charities. And so this is a massive shift, but it isn't a shift of just money. It's a shift of homes, businesses, farms, and other investments. And this kind of financial movement will literally reshape the economy.

And there's room for everyone to benefit from it if you're prepared. So I want to make sure that you know what to do, the kinds of assets that are being transferred, and how to prepare yourself for it, to be positioned to take advantage of it. All right, listen, the wealth that that's being transferred, it's not cash. It's spread across a lot of different assets. And, and I'm going to, I'm going to jump to My iPad here and we'll write them out. And the first one is, number one is real estate. And in. So look, when you start to look at it, boomers own 44 million okay, homes. Real estate's a major part of this transfer. Homes are going to be passed down to heirs or soldiers, creating the opportunities in the, in the housing. Listen, if all of a sudden there's a, there's a bunch of homes that come on the marketplace, what does that do to, to prices? Prices start to decline because supply goes up and in. The fact is that depending on the kinds of homes they are, people might inherit the homes. They don't want it. And given the current status of our estate tax law, which could change, I mean, we got an administration coming in, it's a change either way. No matter who wins, they may change it. But right now when you inherit an asset, you get what's called a step up in basis. So literally they could inherit a home. And let me just run some numbers so you understand how this happens. I'm going to make them extreme. So, so you look at it from that perspective is that, let's say that the home was purchased by the parents for $100,000, but now when they pass away and they pass it on, it's worth $1 million. If the parents sold the home before they died for $1 million, they would have a gain of 900,000 to pay tax on. Okay, the 100,000, what they paid the million that they sold it for. But when you inherit it, you get something called a step up in basis. That means that at the date of inheritance, you go to the value that existed. So if the value of the house is a million dollars when you inherit it, that's what you have as the so called basis. That means that you could literally turn around and sell the house for a million dollars. The basis is the stepped up basis of a million dollars and you pay zero tax. So why, this is why I think that there's some opportunities here is because even if boomers are handing down these, their homes, 44 million homes, and they're being inherited, if the heirs don't want to keep them, they could literally sell them effectively tax free, and they put them on the market and you have the opportunity to probably negotiate and everything in a much stronger position. So real estate's one of the opportunities that are out there. And whether you're inheriting it or not, the influx of properties, we're going to create an opportunity for you that will help you out and everything. So it's important for you to be prepared for that now. We'll talk about how to prepare for that in a moment. I just want to walk through the assets here in, and break, break them down for you. So the second, the second asset that I think you're going to see is farms. Okay? Farms and an ag, okay, Agricultural land. Okay. Over 40% of the farmland are owned in the US are owned by people age 65 or older. So these assets are ultimately going to be transferred also and there'll be changes in ownership that brings new investment opportunities. If the kids or the people that are inheriting it don't want to run a farm, which is not an easy thing to do, then there may be an opportunity to take it over. There may be an opportunity to decide you want to be in the farming business, you want to be in the ranching business or you want to be, you know.

Buying the land and maybe changing the use of the land. But point being is that 40% of our farmland is owned by people that are in the group that are, you know, gonna be letting things go. So they're age 65 and older, that might be coming down the pipe. So if it is something, something you've thought about, either a farm, ag, property, ranch, then what you want to do is make sure that you're in that space having those conversations so you can see what's coming up, what's, what's transpiring. Because now you have an opportunity to, to possibly step in as these things come up. And there's the other thing to really start to get really clear on is being clear on what the government programs are. USA USDA loans and other investment accessible programs are for farming, ranching, agriculture. Because there are some of those that if you're buying a residence, you don't get them. But as a farm, there are some subsidies and some special programs there. So this is a time to get educated. This is a time to understand how to use that those to your advantage. Okay, that leads me to asset class number three. Number three is businesses. There is approximately 2.3 million boomer owned businesses that will change hands either through inheritance or sale or through shut down. Okay? There, there are, there are those out there that are sitting back saying I have no one to take it over so they're just going to walk away and shut it down. Well, what would happen if you took it over? Buying an existing business that is, has a proven profitable history is a wonderful way to create an additional income stream. If you buy it right, get it valued, do your due diligence all that stuff to make sure that you step in to a cash flowing machine. In fact, I'm helping someone negotiate right now on the purchase of business that's a cash flowing machine that's generating $300,000 cash flow a year. This is a huge opportunity for someone that wants to be an entrepreneur, is an entrepreneur. But if you want to be an entrepreneur, instead of starting at the ground floor, how about getting into a business that you would love to be in and that's existing, that has a track record and so even if you're not inheriting the business, you can purchase it. And again, when you start to look at these types of businesses, depending on your demographic, there may be some special financing available through the sba, Small Business Administration loans, minority financing, those kinds of things. Because an established business that comes with a customer base, brand recognition, processes and systems in place is far more valuable and higher probability of success and continued cash flow than saying, I'm just going to do it on my own. And if this person that is aging out, let's call it, and wants to get out and has know where to go, is going to shut it down. It's a win win. You can get in the business at a, probably at a decent price because they were going to walk away from it and they get a little cash out of the business to move on. In fact, I did this when I purchased the martial arts studio that I ended up having for 11 years. The person was retiring, he wanted out. Okay, he was just going to shut it down. I didn't want to shut it down more for community reasons because we did so much good for the kids and everything in the community. I said, I, I'll buy it from you. So he got a bit of cash. I got, I got a business that was working in addition to all the other stuff I was doing. But more importantly, I had a vehicle to serve the community and make a difference in children's lives. And that's what I wanted to do. Okay, and then the fourth asset, asset class is just portfolios. Okay? Now most of these will, this is stocks, bonds, retirement, most of these will be inherited because you're going to put beneficiary designations on, on it and everything. So the boomers hold, they literally hold trillions in investments in the stock market in these things that are going to pay pass down to the heirs. Now is there a way for you to take advantage of it? Well, what's going to happen is as these heirs get these portfolios, the question is what are they going to do with it. If they start to sell or buy or do things and shift the way that they're holding the portfolio, they may, we may see a liquidation of a lot of assets. That change the pricing in the stock market. That change the pricing if people are dumping, dumping assets and all that stuff because it, the stock market's built on supply and demand. So there, there is a possibility that we will see shifts. Now, am I. Do I really think that we're going to move the market? No, you got to be huge to move the market. But when you talk about trillions of assets at a short period of time that might come available and the heirs deciding, hey, I want out, is it possible? Yeah, it's possible. We may get some. A wave of shifts. They might shift out of asset class. They might go from technology.

To green types of investments. And you might see that coming about. And so the, there is something to be said for that. And then I think the last asset class is what I would call alternatives. And.

This is like artwork and collectibles and jewelry and antiques and that kind of thing. Now, I don't deal in that. I don't know much about that, frankly, but I just think about some of the stuff that we had with, with my mom, I didn't know what some of that stuff is worth and that the. As people start to pass away and, and there's inheritances that. What do you do with them? So all of a sudden, if you happen to be an art collector or antique collector or a classic or a car collector, there may be opportunities for you to take these off of the beneficiary's hands, the, the heirs hands, because they don't want it, they don't know what to do with it and everything. So things like that will get sold and transferred in estate sales and all that. So this is a time for you to start looking at and say, hey, where, you know, these things that I want to, I want to be involved with are these things that I might want to, I might have an opportunity to, to get into vintage cars and that kind of thing. But you got to start small. You got to do your research. You got to look for the hidden gems, you got to look for the deal. They're just not going to come knocking on your door. You have to get in the game, which, which really gets you to look at it from the perspective of, well, what are really the opportunities if you're not inheriting it and how to prepare for them. So I think that there's a lot of different ways to Capitalize on one is like I said with the real estate, if there's a flood of real estate, you may see that there's an impact on pricing. And when a, an heir inherits a piece of real estate with a step up in basis and they know they don't have to pay tax on it, they might be willing to take a different kind of deal from you to buy it because they don't have to worry about the tax bite that's going to happen. Okay, so, so there may be times for you to look at buying real estate in a way with creative financing where the owner take the, the current owner takes back the paper and you're paying, paying them for it. Or crowdfunding platforms where you're, we're taking on real estate and that kind of thing. But here's the key, the pro tip for the, for you on this is you got to identify the markets where you may want to be and where there may be a glut of homes for sale due to the wealth transfer. You're going to do some research because it could be there, it could be in suburban areas, it could be vacation home areas, it could be rural properties, it could be anywhere. But start doing some investigation of the demographics in these areas. If you really want to get into real estate, do the research, do the work, follow the, the trends of the market, create connections with the real estate professionals there. So you become the reason we got into this home right on the, basically right on the water, right on the beach is because we had connections in the people here and we were able to buy the home before it ever went on the market. These are, this is the way that you can buy, buy things in an effective way, but you've got to prepare for it. And like I said, it's between now and 2045. So getting in the game, even if you don't have the cash yet, getting informed, understand the market, all that stuff is hugely important. Now when it comes to the businesses, a lot of businesses, like I said, do not have successors there. There are in the boomers.

Generation, which is where this transfer is really coming from. A lot of them are in construction, they're in services and they're in retail. Okay. The businesses that they hold. So if these are areas of your expertise or areas where you want to focus, this is your time to get involved. Like my brother's in the construction and homebuilding business and he's part of organizations, he's a part of associations and he's in with these folks that have these construction Companies and the home building companies. And so when someone is deciding, hey, I want to retire, I got no one to take it over. They, he has an opportunity to take that over and integrate it into his current business or if he didn't have a current business, to just take it over and start running it. And you don't have to have the funds to buy the business, you don't have to have all the funds. You probably have to have enough of a down payment to make the owner comfortable with doing the deal. But you can get the owner to finance it, you can get earn out options. There's a lot of creative financing, SBA loans, um, working with partners to acquire the business. But partnerships are very unique and you have to be really, really careful because it's another marriage in your life. And you have to be really careful because most partnerships in the long term don't work out if you don't do it right at the beginning. So, so that's, that's how I would prepare for that. Then when it comes to.

Investments and portfolios and that kind of thing, you just, you want to start to get acclimated from an understanding of what it is to manage a portfolio. Understand the, the rules, the tools, the, the, the frameworks and processes that are in my book, building your money machine. Because if all of a sudden you're going to get a bunch of wealth in the form of a stock portfolio and you're not, you're not skilled up enough. I've watched portfolios completely get dissipated, completely get destroyed because they weren't skilled up enough. I've even watched them get, get destroyed because they had the wrong advisors and other advisors took advantage of them. So I don't want that to happen for you in, in that case. And then, then you start to look at something else. When it's looking for advantages in this wealth transfer is to ask yourself what industries are going to benefit from this transfer. Because there's going to be a demand due to this wealth transfer. There's going to be a demand in financial planning and estate planning. There's going to be demand for elder care, there's going to be demand for real estate services. If you're looking at something and saying, I want to do a career change, I want to look at these other sectors, start to look at like what, you know, Wayne Gretzky says, I skate to where the puck is going, start to look at where the industries are going, where the attention's going and where the dynamics go, you know, in elder care and all that stuff. Is that a place you want to play? Trust me, y'. All. I look back at how much we paid the assisted living facility where we had my mom, and it was like multiples, multiples of hundreds of thousands of dollars, like ridiculous amounts. Okay? And so there's money to be made, and you got to look at where. Where this is happening. So. So the last thing is really for us to do this. How do you prepare regardless of whether you're getting the inheritance? And if you're getting an inheritance, you need to prepare. In fact, I have a chapter in my book that says skill sets before assets. No one should get the assets if they don't have the skill sets to. To steward the assets. Even though you are blood, I'm sorry, you don't deserve it just because you're blood. You deserve it because you are a good steward of the things that you're your parents or wherever you're inheriting it from created so that they're respected. So there are some things that you need to focus on, and the first thing I think that we really need to focus on is your financial understanding. So number one is financial literacy. So if you're going to inherit or not going to inherit, um, but you're trying to get investing, increasing your financial literacy is huge. Your financial knowledge, reading books on investing, personal finance, real estate, business acquisition, online courses, all those things are going to prepare you for when the opportunity comes to you. Because most of the time, we don't even know the opportunity because we don't notice it. We're not trained. So here's what, what I would invite you to do. Dedicate 30 minutes a day to learning about financial topics. You know, whether it's podcasts, you know, like mine, or shows like mine, whether it's books like mine, or articles or trainings or watching a program. 30 minutes a day, that's all. Do it even not five days a week, do it three days a week. There's an hour and a half dedicated to your financial knowledge a week. That will make a huge difference. The second thing that you need to do is get your own finances in order. If you are not managing your own money, if you are not controlling it, and on a plan, if you're not following something like the wealth priority ladder, if you don't have an emergency fund, if you're not paying down your debt and you have destructive debt, if you're not doing that, now's the time to do it. Because if you are in desperate straits financially, none of these opportunities are going to be good. For you because you can't take advantage of it. But if you know that you're running from, you have a cash resource plan like I do, Money machine master plans for a lot of our clients where we build out this plan and we test everything we, the portfolios, the, the assumptions, whether they want, they have kids going to college, what college, we do all of that financially to see where they are and the probability of success. They have an emergency fund, a peace of mind fund, are they investing? They have a 401k, do they have a pension plan? What are they doing? If you have those things in place, great. If you don't, now's the time to do that. Now's the time to get your finances in order. Because when your finances in order, you have the ability to take advantage of these opportunities in a much easier way. Plus, if you're going to need financing either from, from the seller, maybe you're buying a business or you're buying a piece of real estate, or from a bank, if your finances are in order, you're going to look a lot better to the seller of the bank and they're willing to help you. Okay? And, and do that. And then the, the third thing is to sit back and start to understand and leverage, if you will, financial planning, the right kind of financial planning and knowing how you can move some things around in a way that minimize tax. Just like I said about inheriting a piece of real estate and then being able to sell it without a tax because of the step up in basis, you can do that same with a portfolio. If I have a million dollar stock portfolio that I inherit, you get a step up in basis, you could literally sell the whole portfolio. I don't recommend it and pay no tax on it. So.

Whether you are inheriting assets during this $84 trillion transfer or you're not, I think that there's plenty of opportunities for you to jump start your financial future. If you're willing to invest some time and some effort to educate yourself to skill up to get your finances in order to investigate the industry sectors or the geographic sectors you might want to invest in and, and make it happen. Because here's what we know. Like it or not, the boomer generation, which I am part of, is getting older. Okay? It is the largest wealth transfer in US history and it is here it is upon us. And, and whether it's real estate, businesses, investments or other types of assets, those people that are prepared are the ones that can benefit from what's about to happen. And I want you to be prepared and be in a position to take advantage of what might be happening. And listen, this is about you understanding where you want to go, what is possible that's in front of you and taking the steps to make it happen. And I want to, I want to help you on that journey. I want to educate you on that journey, and I want you to equip you and empower you to take control of it. Okay? I hope that this helps. I hope that you get a chance to look at and say, wow, there's, there's $84 trillion that are moving and, and yes, a bunch of it's going to be inherited. Some of it's going to be donated to charities, but a lot of it's going to be transacted. And if you're in the middle of that transaction and you position yourself properly, be in the middle of transaction, you. You may benefit from the whole transfer also. All right, Again, I hope you found this of value. I can't wait to see what you do with this. But at the same time, if you have any questions, any comments, do me a favor, leave them below. And better yet, if you're not following my show, make sure you subscribe and share it out with people. All right, let's get everyone on this train to financial freedom. I am on a crusade to light the path to financial freedom for a million families, and I want one of them to be you. All right, Until I see you on the road to financial freedom or out there, as I'm speaking, as I always say, always, always strive to live a life that I'll lose you. See you. Thank you for listening to the affluent entrepreneurship with me, your host, Mel Abraham. If you want to achieve financial liberation to create an affluent lifestyle, join me in the affluent entrepreneur Facebook group now by going to melabraham.com group and I'll see you there.

And that's it for this episode of building your money machine where we help you learn how to master your money, eliminate financial stress, and live a life of choice. If you found this valuable or helpful to you, here's what I'd love for you to do. If you do me a favor, go to Apple, Apple Podcast or wherever you're listening to this podcast and rate and review the show. It helps us tremendously to keep us at the top of the list so we can continue to get this information and this message out to people. Because I truly believe that financial freedom is your birthright, and I want to help each and every one of you claim it. Thanks so much.