How to Make Your Money Make Even More Money: Creating an Income Snowball with Tanisha Souza

Out because people do this and sometimes they do it wrong and sometimes they're like, wait, what? But you know, most of the people I know that my, my audience understands passive income. I think your audience does too. So this is kind of a little bit of review for you. Or maybe you don't know what that Wall street number is. So the bigger your, your living expenses are, the bigger that number, the bigger the Wall street number you, you need. Okay. Or that you, that you would need. So after you've done that, and hopefully you have that number, what you're going to do is take your income from your paycheck or any other income sources that you currently have, subtract out your monthly expenses, and that'll be your monthly cash flow. So take your monthly income, subtract out your monthly living expenses, including your rent or your mortgage, your groceries, your dining out, your whatever you spend on your credit card and pay off on a monthly basis, your fund money, whatever, and then your cash flow is what's left. That would even include your vacations and all that. So if you do that math, right, let's say that your take home income is 10,000amonth and your expenses are 7,000amonth, right? That would leave you with $3,000 in cash flow. If your expenses were 7,000amonth, that's $84,000 a year. And if you divide that by point 05, that's 1.68 million. Okay? So that was the Wall street number and the cash flow again was 3000 in my example. But your monthly cash flow is kind of key here. And so I want to show you what you do with that number again, your monthly income. Just general, you don't have to be specific. It doesn't have to be accurate. You're not going to turn this in, right? This isn't like a test. A graded test is for you minus your monthly expenses, kind of, again, general, you know, what you take home, minus what you use, and then whatever you have left. So let's take that number, that monthly cash flow number. In the example I just gave, 10,000 minus 7,000 in expenses equals 3,000, that monthly cash flow. And then take your Wall street retirement number and divide that by your monthly cash flow. So if your Wall street number was 1.68 million, like I just said, you would divide that by $3,000 and that would, and that's your, that's your monthly, the monthly cash flow. So I got 560 with that number, right? If you divide that by 12, that's going to give you the number of years you would be able to retire using that Wall street number. So. And that's usually an astronomical number of years, right? Something that's completely unattainable. Really? Okay, yeah. I mean, like, I, you know, I mean, I'm. I'm not that old, but 46 years is way too long. You know what I mean? You know, and so I think for most people, they probably feel that way. So, you know, I want you to think about that for a minute. Right. I don't know what your number is. If you want to share it, go ahead and put it in the chat. But what was your Wall street number and what was the number of years that it, that it, you know, according to Wall street that will take you to retire? Why do they use it? 5%. They're trying to be conservative based on many of the recessions we've had in the past after the 2008 recession. Actually, they're using a smaller percentage than that. But I'm just trying to be a little bit more, you know, fair saying 5%, but some, sometimes they say 2 and a half percent if you can live on that, just in case there's a recession that kind of eats up a lot of your principal. So how does that make you feel? Right. That you might need 1.6 or 2.5. Right. I'm not sure what some of the numbers are that you guys are putting in the chat, but usually people have pretty big numbers that they would need from their Wall street number in order to be able to stop working. Right. That's what I mean by retirement. I don't mean like, you know, the traditional 65 years, because that's not even 45 years from now, is way over 65. Right, but how do you feel about that? The average American needs $5,000 a month or 60 grand per year in passive income to retire. And, and Sarah, we were talking about this before. That's not Hawaii. Right. That's not California. Right. The average American that living in California or Hawaii needs a lot more than 5,000 per month or $60,000 per year passive income to retire. But that's what the average family across the United States, when you kind of average everything out, that's what they would need. That means they need $1.2 million in some investment earning 5% in order to live on $5,000 per month or $60,000 per year. So, you know, if you need more and you're thinking, you know, Social Security will, you know, will supplement that or whatever it is, okay, that's One thing. But wouldn't it just be easier to create passive income instead? I mean, what sounds easier? 1.2 million or $5,000 a month? Like what's easier to achieve? Right. You heard both of our stories. We were able to create passive income, monthly income fairly quickly. I mean, we did, we, my husband and I became financially free in less than two years from when we got married. Okay. And so, and that was we created an extra hundred thousand dollars a year in passive cash flow, like money usable income in two years. Right. So what we're going to share with you today is going to help you do that. So let me just tell you a little bit about the income snowball first. This is just a quick overview. So before I received the patent, we spent about six, six plus years in research and development. It, it's a calculator, patented calculator forecast the financial freedom date. The average person, this is somebody without a lot of assets, with or without any assets, but has anywhere from 1,000 to 2,500 or more in excess cash flow. Right. After they pay their expenses, their monthly expenses, what they have left over, they can typically retire, stop working in five to 10 years and have that income continue roll in for the rest of their lives. And it was patented in 2014. Okay, so I'm going to give you a quick overview of that. I've got plenty of videos and information on my website. They give you more detailed information on this. But I'm going to try to explain this as simply as possible so that we can incorporate some examples in here. So I'm going to review an example of income stumble at work and my patent calculator. Okay, so let's assume your monthly cash flow is $2500 per month. Okay. You obtain a $10,000 line of credit, also known as leverage. And I have a credit card here just so that for those of you who are not familiar with lines of credit, we don't use credit cards to make this work. You can use cash value life insurance, you can use a heloc, you can use a business line of credit, use a personalized line of credit. And those are different than credit cards. But just so that you understand that it works revolving, right? You borrow against it, you can use it and then you can reuse it once it's paid off. So that's really the key here is the type of leverage we're using and use it to buy short term amortized income investments. And this is what we also call fast burning fuel, right? Also known as fast burning fuel. Now this is a term we use at tardis. Short term amortized income investments are fast burning fuel. And basically those are investments that are short term, two years, three years, five years, maybe seven years. And they are principal and interest. So you're getting back both principal and interest in amortized over that five or three or two year period. Okay, why is this important? Because you, it actually produces a lot more income. 40% typically, or more in some cases cash on cash return. And so with a 40% cash on cash return, you're able to quickly turn that money over and over again. Now I want you to think of it like this. Think about a race car, right? A race car. If you put a race car on a track with a Honda, right, and you're trying to see who can go two laps fastest, which car is going to win the race, right? It's going to be the race car. Why? Well, the race car goes faster and it uses a different type of fuel. So you've got two things, the vehicle and the fuel that it uses that makes it go faster than the Honda. Now if you were to put racing fuel in the Honda, which we want to view that as a traditional investment system, right? The traditional investment system, you put racing fuel or these short term amortized income investments in that Honda, it's not going to work efficiently, right? The racing fuel is what's, what's needed to make the race car go fast, not the Honda. You put racing fuel inside of a Honda, what happens, right? The engine will start knocking and the engine will actually fail, right? You will destroy the engine if you do that. So it just doesn't work. It's not going to produce the same result as putting the racing fuel in the right vehicle. And by vehicle we're talking about the investments system of the income snowball. Okay, so, so I want to kind of walk you through this process again. Okay? We don't want to put racing fuel in the Honda. We don't want to put the short term amortized income investments in traditional investment in a traditional investment environment or investment system. Okay, so let's talk about how this works. So the fast burning fuel asset you bought produces $320 per month, right? You invest, you take 10,000 from your leverage, right? Your line of credit and you purchase the asset and it produces $320 per month for three years principal and interest, right? Normally you wouldn't get $320 a month from a small investment of 10 grand. But the reason why is because it's basically a 40 cash on cash return. Because you're getting principal and interest back. And this really blows people's mind. And the reason why it does is because people are thinking traditionally, and they're thinking, well, I'm just getting my money back. Well, first of all, it's not your money, it's leverage, right? That's number one. Number two, when you get that back, it actually helps you repay the leverage much faster than you could with your own cash flow alone. Okay? So that $320 that you get on a monthly basis for three years in this case, right? Let's say it's a fast burning fuel that's three years long is the term and it's amortized over those three years. You're going to use that $320 you get per month, along with your $2,500 in extra cash flow to pay down that line of credit. So then the next question is, how long does it take, right, to pay down that line of credit? Right? With the extra cash flow, you got $2820 coming in now to pay off that line of credit. The credit line is paid off in three and a half months, right? So if you can pay it off that quickly and because it's a revolving line like a credit card, you're able to use it again to do your next investment. And this is when we start stacking, right? So it's not just $10,000 and 320, right? You have $10,000 that you invest in that second investment. And now you have $320 times two coming in or $640 to pay down that line coupled with your 2500. Now what's key here is that the cash flow you're contributing to your investment or to your income snowball doesn't change that change. What's changing and changing dramatically and quickly is the stacking and the income that you're receiving from the fast burning fuel, right? So now you have, you know, over $3,000 a month coming in to pay down that line of credit. And now it takes you just over three months to pay it down. Every time you do this, it gets faster and faster and faster until the time when it, when you need to increase that line of credit, the amount that you use and the amount that you invest, okay? So you rinse and repeat stacking the fast burning fuel income and your personal cash flow pays off the leverage faster and then you increase the leverage. Here's what's great about it. You don't have to think about or figure out, how much do I increase what Do I do? When do I do it? Will it actually work? The calculator takes care of all that for you so you don't have to figure it out. Okay, so it's great done for you, shows you step by step. So the first investment, right? Let's say you start this in January. You're getting 320 in January, February, March, in April. And because you paid off that first investment, you're able to make the second, but you're still getting the first, the 320 from for the first investment. So now you've got 640 coming in because the second investment is stacked on top of the first. And because you have that more in that additional income coming in, you do the next investment even faster than that. So now you have the third investment coming in for $960 a month. And then before even the end of the year, you're on your fourth investment, where now you're getting 1280, which is more than. It's about half, almost more than half of what you're contributing to this investment. As you continue to go, it goes faster and faster, you increase the leverage and it really, really picks up steam. That's why we call it the income snowball. It's like taking a snowball, putting it at the top of a mountain, rolling it downhill. I don't know if this is true or not because I've never tried it, but. And I don't live in snow, but it's supposed to increase in size and pick up steam, pick up more snow and just keep rolling down and getting bigger and bigger and bigger until it's like this huge giant snowball. And that's what we're doing here. We're just picking up more and more and more income, stacking it, using that leverage, going faster and faster. It you're able to make more investments quicker. And that's what helps you to create enough passive income to be able to live on. So what happens is you increase it to these large amounts and you're able to peel off what you need to live and allow that income to continue to grow. That's what we call financial freedom. And that's when it self sustains. In other words, the income snowball sustains itself by continually continuing to, you know, create more income for you without you having to put anything in. Okay, so in the example I just gave you, right, after six years, the income still while self sustaining, so you no longer contribute your own money, you could actually use what you need to live, right? In this case, withdrawing $5,000 per month to live while your income snowball keeps growing and you still have the value of your income snowball assets as well. So if you wanted to liquidate, you could, you wanted to, you know, roll that into some other types of investments like real estate or whatever you could, like if, you know, if you weren't afraid of tenants or whatever what Sarah was talking about, if you're really good at it or whatnot. So there's, there's lots of options here, but this is how it works and this is how we're able to help the average person that doesn't have any savings at all. Not, not any money set aside, just, and just a little bit of extra cash flow per month to be able to basically have the equivalent of $1.2 million. Right. That's what they would need using the traditional system of investing, the Wall street system. Okay. So again, this is a, this is a breakthrough. And the reason why I was able to get the patent is because of the vehicle and the fuel and how it works with the calculator being able to plug in various investments and see if it works. Now again, I'm, I'm investment agnostic and we are investment agnostic. We don't get any, you know, we don't receive anything. And whatever you invest in, that's not, that's not how we do business. We're just in the business of teaching you this system, laying it out for you and helping you get to that, that next stage. Right. So if you, I mean, I'd love for you to share a little bit about this, Sarah, so I can show them what this does to the income snowball when you add this type of investment.

Yeah, definitely. So this is a fund that we have, and so we have a whole bunch of different kinds of investments. And Tanisha and I were talking about, you know, some of them support the snowball, some of them don't because it needs that cash flow element. And so this one, I was like, look, this one might fit in. It was really exciting. So what this investment is, it's a diversified energy fund. So energy, oil and gas. And it's diversified because there are over 200 sites that have been pre qualified and identified in order to start producing product that's going to be sold immediately. So that's how it produces a monthly cash flow. And so we started investing in this personally, my husband and I. And then as the real estate markets shifted, you know, I have this large investor base and I didn't want to offer them some skinny real estate deals. So I said, hey, I talked to this group, they invited me to join the advisory board. And so that allows me to share it with my investment, my investor community, which I'm really excited about. So basically what it is, you know, 2200 different sites, it's going to be a three to five year project where, you know, it's extracting commodities out of, out of the different sites selling them. And then what's unique about this? There's two things that are unique about this fund because you might say, oh, there's a lot of oil and gas funds out there. And there are. And so often they give cash flow to the investors and then the management team keeps the upside at the exit. And so in this fund, the management team is sharing the upside with the investors. So you make money two ways, actually three ways, but you get the monthly cash flow. So we get a check into our bank account every week and then at the end when we exit, then we get an appreciation check and our principal returns on the back end at the exit as well. Now, the third way that people make money on this investment is the tax write off. So if you invest $100,000, there's a 75% write off that you can take in the year you invest. So for instance, if you invest 100K in 2023, then you have a $75,000 deduction you can take in 2023 that comes on your K1. Now, it's a total of 100% write off. It's taken over the life of the investment, but 75% of it is given in year one and it scales. So if you invest 2000-003000-00400,000, it's 75% of the amount that you invest. So that's three ways that investors make money in this fund. And it's risk adjusted because it is a fund. So it has those 200 different sites. And the team that I'm working with and partnering with, they've been doing this for 30 years and have a great track record. So I feel very confident with, with them. So that's the investment. And I'll put a link in the chat if you guys take a look at how Tanisha is going to put it into the snowball and see the results. And if you're an accredited investor, this is for accredited investors only. You can sign up. We're doing a webinar on Monday where the team is going to join me. We're going to go through actually what it is beyond one slide so you can evaluate and see if it's something that's right for you. Is that enough information, you think? Tanisha?

Yeah, that's perfect. That's perfect. I need you to explain that so that when I show them this, they understand what we're doing. Okay, so the first thing, remember when I was explaining the income snowball and the fast burning fuel, is that it relies on your cash flow, right? Partially on your cash flow and also on the investment. And so I'm going to give you an example of a person who uses a fast burning fuel. We'll show you the cash flow, all the details, we'll go through that, and then I'll show you what happens with the oil and gas. And again, you know, this is all hypothetical. You, you do need to do your due diligence, of course, but it's, it's pretty powerful. So here's, here's what I want to show you. So suppose your adjusted gross income is $140,000. That's after you get your typical deductions, right? That would mean that your taxes would be if you're just federal, right? Let's pretend that you live in a state that has no income tax, right? No state income tax. Okay. Let's pretend to make this really simple, right? We're just going to pretend $33,600 would be your typical federal tax burden. That might change a little bit in 2023. But my understanding is, is this is just general. I meant remember, go talk to your tax professional for specifics in your situation. But if your adjusted GROSS Income is 140 and then you had a 33,000 DOL tax bill, basically you would have $107,000 left to deal with your living expenses and then your cash flow. So what that boils down to is your income would be after tax income, your take home, which is what we were sharing with you just a little bit ago, where your take home pay minus your living expenses is your cash flow. So that's a $47,000 a year cash flow, which is about $3,916 a month that you could use for your income snowball. So if you were doing this system, you were using this system using my calculator, having somebody walk you through on a regular basis to make sure you're doing everything right, a coach, you would be only able to put in $3,916 a month from your cash flow if you use all your cash flow into your snowball. Now, let's look at it differently. If you got the tax benefit behind the oil and gas that the service is sharing with you. Let's suppose your income is 140. I just want to kind of show you the difference here and, and what a tax benefit like this could do for you. So if you have, if you have $140,000 after your regular deductions, you take the, the $75,000 deduction because you take, you invest $100,000 into the investment. Now your adjusted gross income is only 65,000. Doesn't mean that you only got 65,000. But that's your adjusted gross income that you're going to be taxed on, which puts you in a lower tax bracket as well as, so now your tax is only $14,300, which is half of what it was before. So that leaves you with $125,700 that you could then use before living expenses. So your take home is, is different, right? Because you get this huge deduction, you have more cash to invest. So if your living expenses, assuming they're the same, 5,000amonth or $60,000 a year, that leaves you with $65,700 in annual cash flow that you could then invest, okay, that is $5,475 per month for your income snowball. That's a huge difference, 3,916 versus 5,475. And I'm going to show you the difference in the tax and then when you add in the cash flow from the investment, it even gets better. Okay, so I'm going to show you the first example and I might have to like pause this video as we go through, but I'm going to show you. Okay, so we're looking at a client whose income is 8,916. That's the first example that I gave you. The person that has a cash flow of the smaller cash flow, right? So that's their monthly income from their job, that's their take home pay because they're taxed at that very high tax bracket. Right? And then their living expenses are $5,000 per month. And they're going to start, let's say they start their income snowball in January of this year. Okay. What that looks like is their financial freedom date is April 1, 2031. And the just the behind the scenes is we're using fast burning fuel of three years. Oh no, I'm sorry, five years. Five years amortized at 9% principal and interest. Okay. So the withdrawal amount that they will be taking out is 5,000 from a $23,000 monthly income and that net cash flow is 3,916 that we talked about. Now if you look at how the cash flow grows, right, in this case, they're putting in about, you know, 30 $900 a month. But then they don't have to put anything more in. They are generating 24, 25, $26,000 a month and they have $5,000 available for expenses. In addition to that, every one of those investments stacks on top of each other. So the asset value, although each one goes down, right. Every five years, the asset total grows. Okay, now let's take a look at what happened. So this, remember that date, April 1st, 2031, okay, that is eight years from now. Okay, that's an eight year financial freedom date. Now we're going to look at someone with that tax benefit who's actually able to take home more money, 10,475, because remember, they were taxed at a lower tax bracket, $5,000 in living expenses. The same living expenses, the same start date. January of 2023. The financial freedom date is two years earlier. So instead of eight years to financial freedom, we're now at six with just a tax benefit. Now you can get tax benefits in other ways too, but that's the power of additional cash flow. And what it will do. Didn't have to work anymore, do anything extra, right? It's the same income. It's just taking advantage of that tax benefit. Now the assets continue to grow and everything else. Total monthly income of 23,000 and they were drawing over five grand a month. Now I'm going to add the investment, the oil and gas, right? We want to, we want to show the interest only. And we're going to, we're going to be conservative here. We're going to say we're not going to do the, the high end, which was, I believe it was 21%, was the, was the high end expectation or hope that the investment produces. We're going to say $100,000, right? Taken from your savings or whatnot, 14% interest rate, term of three years. And at the end of that three years, hopefully you'll get back that, you know, triple principal. But even if you don't, I want to show you, we always want to look at worst case scenario when we enter things into this calculator. I want to show you what that does to this whole thing. Same scenario we did, all we did was add that investment. Now we're going to go originally, remember it was 2029. We're going to recalculate the financial freedom date. And now it's 2027, which is four years from now. So we've literally chopped the financial freedom date from 8 years down to 4. Utilizing tax strategies and also the additional cash flow on the low end, you can even lower the amount to say, 10% if you want to be even more conservative, because you always want to have a plan for if any investment doesn't perform as expected. And this is part of what we coach you on. We do coach you on how to evaluate and how to analyze investments as well as to have a plan A, B and C. But the income snowball itself actually reduces the risk of investments that you do as long as they work in the snowball. And, and it, and it does. It does. Great. Now you can see you don't even need as much monthly income to be able to draw what you need. And the other 12,000 keeps on rolling into your snowball to keep it growing. Isn't that powerful? Is that cool or what? I mean, that's like so cool to me. I mean, when I saw it, I was like, I have to show this to Sarah. When she told me about the investment, I was like, I just want people to see what's possible. Right. There's so many types of things you can put in here, and clients come to us all the time with different investments. Again, we're agnostic. We just want to make sure that it works with the income snowball and, and it propels you so much faster. Can you imagine in four years being able to stop doing whatever it is that you're doing, or continue doing it if you love it, but doing it because you want to, not because you have to? That's a huge, huge change. All right, so any comments on that, Sarah?

Well, there were a lot of questions about the investment, so I can answer them at the end, though.

Okay.

You know, as you were doing, people were asking things, so I'll do that at the end to not interrupt the flow.

Okay. Awesome. All right, so now what, what's next? Right, so we, we will be happy to provide you with a strategy session. Right. They're always free. A coach reviews your goals, your current situation so they can create your plan. Right. We just need to plug those numbers in, your income, your expenses, whatever your goal is. And, and we can show you what your financial freedom date would be. And then if there's other investments you'd like to layer onto your fast burning fuel, like we just did in this situation, we can plug those in and see how they can accelerate it. But you're really not going to be able to find a system that really works this fast. And when you, when you put the right type of fuel in this system, it really, it really turbocharges the whole thing. So you'll get a personalized plan complete with how you'll reach your goals and your personal financial freedom date. And as you can see, you can have the exact same income, the exact same cash flow and have a different result. I showed you two examples, actually three. Right. I showed you the first one that was purely fast burning fuel, 9% investment, five year term amortized over five years. And, and then the second one, same, all same investments in income, but the, the cash flow changed because of the tax. And then on the third one we added another investment. So you can have totally different results in your financial freedom. That's why it's personalized. Right? You can't, you know, if you said, hey, if I have this income in this expense you and this is my cash flow, what's my financial freedom date going to be? It might be different for you as than someone else depending on what you put in, right? What the investments that you use. And then we provide you with one on one coaching on a monthly basis and group coaching on a weekly basis. And so we're holding your hand throughout the whole process, making sure you're on track or ahead of schedule every single month to ensure you do this right. And then what's really nice, a nice bonus is that my clients at the end of this month are actually getting access to the calculator themselves so the coach doesn't have to write run the numbers for you. You actually have the access to be able to run scenarios yourself in the calculator. So that personal plan will tell you your investment size and amount based on your individual cash flow situation. You don't have to figure it out. It will figure out the best plan to get you to where you want to go the fastest. Your debt freedom date, if that's one thing that you want to do. I didn't even share that in this situation and they had no debt. But if you have, you know, car loans or mortgages or things that you want to pay off, it can do both at the same time. You can create income and do and pay off debt simultaneously. And so that's. And then your financial freedom date is a date where you can stop putting contributing any money and draw what you need. Now could you draw money early? Yes, you can, you know, and keep your snowball rolling. There's so many things you can do with this what if one month you need more than 5,000? What if you need 10,000 out of your 20 grand income that you have coming in? You can do that as well and just keep going back into your snowball the next month. It's not going to destroy your snowball. I mean, it's, it's a really great system. So your coach is going to help you increase your cash flow. Even if you have little cash flow, they can help you with that. Know when to increase your leverage and investment amounts. Learn how to evaluate and choose investments, stay accountable and give you clear action steps, and invest and pay off debt at the same time using your investments and other debt strategies. So lots of help. And that's, that's, that's what we do. So be sure to request a complimentary strategy session with a wealth coach, and that includes your own personalized plan and a demo of the income stonewall calculator. No obligation. What I will do for the first, you know, maybe 10 people who request a strategy session, I will actually personally review the plan for you, you know, with a coach, and I will create a video that explains what we're going to do for you. So for the first 10 people that request a complimentary strategy session, if you've never requested one before, if you've requested one before, then you probably don't need me to do that, but I will do that for the first 10 people that do request a strategy session as well. Okay. And Sarah, before we answer questions.

Yeah, thank you. So you guys first past action. Look at those strategy sessions. Actually, Tanisha, I didn't tell you this, but part of, you know, checking out your program is that I signed up months ago and one of your coaches called me and we chatted. And so I just wanted to see, like, what the experience was like, you know, before I kind of started sending people your way. And it's really fabulous. So I see you guys are saying, I'd like a strategy session, but I believe you have to click on the link and, and that will get you the strategy session. Not putting the words in here.

Okay, yeah, and I'll, I'll try to put it in the chat, the link. If it's not.

Lindsey did put it in the chat.

Oh, she did. Okay, great.

Yeah, perfect. So I do want to say for those of you who are not familiar with Sugo Capital, if you're like, hey, this seems really interesting, something that usually people don't know is that there's a lot of ways to invest in private investments. And so a lot of people Think, oh, just cash, like, do I have enough in my savings account? But, and I don't know how these would fit into a snowball, but I wanted to mention them in case, you know, people are using these different things in their snowball or outside of the snowball that we have a number of private investments, meaning they're not traded on a public market. You can obviously use cash that you have from your snowball or from, you know, in your savings account, but you can also use your IRAs and your 401ks. And so if you have money, I always encourage people to do this as part of their wealth planning and retirement planning. And your financial free number is go take a look at your old 401ks. With previous employers and your IRAs. We even, I can't believe it, but this was like a month ago. My husband was like, I just found two IRAs we opened. And it was like we opened them when our first daughter was born and we totally forgot about them. And so they each had $5,000 in them. So there's not that much. That's why we forgot about them. There was just 5,000. But if you go out there and look, people do this all the time and you find them and then you pool it together into one account. Now you have a bundle and you're going to pay attention to it. So you might have, you know, a 401k worth 40k and 100k and 2k or whatever it is, put it all together, roll it into, if you can, a Solo 401k or an IRA and then you can use that to invest in private investments or whatever you want really. And you know, all of you who are on here, you're fast to take action and your diy, you're going to learn and you're going to be the best steward of your money. So having your retirement money in a self directed account, you're likely, as long as you learn how to do due diligence and all this kind of stuff, you're likely to get much better returns in those accounts than you've been seeing. Now if you're selling a business or you're selling property, you can also roll those capital gains into vehicles that can invest in private investments. So if you say, oh yeah, I'm selling my business, oh, I'm selling my piece of property and you want to roll that money into a vehicle and not pay capital gains, talk to me. I don't supply the vehicles, but I know how to connect you so that you can make the investments without Paying capital gains tax. Put more of that into your snowball. You know, we saw how tax can really amplify that snowball. And then lines of credit. So just what Tanisha was talking about, and our investors do this all the time, that if they have a cash value life insurance policy, they borrow against that. If they have stocks, they borrow against that. Anything where they can get a line of credit, they borrow against that and invest in something else. Much like, you know, the details of the snowball. So I wanted to lay that out there. And then if you guys are interested in the investment that we talked about Today, go to sugocapital.com backslash freedom. And Cynthia, if you would put that in the chat again, you guys can click on that. The webinar is on Monday the 20th. If you can't come because you're on holiday or whatever it is, you'll still get the recording. So sign up for that and then you can see all the details of that investment and see if it's right for you. And if it's not, at least you're starting to learn about private investments. And these are really the investments that are going to help you, you know, in the long term. I was talking to a CFO friend of mine this morning and she has a client and they make, it was like 800-850K per year. But they know nothing about investing. And I think so many Americans do that where they hyper, hyper focus on getting that income in. But then how much do they keep? How much do they invest, how much do they grow? And so I told my CFO friend, I said, tell them, tell them, tell them that their second job has to be to become a wise investor and learn how to pick things. You know, that has to be our second job is learning all this stuff that we learned today. Otherwise we're going to be stuck trying to make the money till we're 75, which.

Or 46 years from now, whatever.

46 years from now, you may not even make it. So.

Yes. Okay. So someone said they're still waiting for a text to book a strategy session. Oh, okay. Okay, I see. Okay. So there's some people that some, for some reason, there's some technical difficulties. So Lindsay will try to help you guys with that. But some people had a few questions about the income snowball. I'll try to answer those real quick. So somebody said, what? What? Fast Burning fuel investments paid 35 to 40% for three years. Now, remember, that's 40% cash on cash return. So if you're getting $320. That's principal and interest. In the example that I gave, that was a three year amortized investment. A simple easy example of that is Prosper. Okay, so that's, that is, I mean you can go Google that or go in there and look at it yourself. But again, there's tons of people that are using Prosperity, but they're using it in the traditional way. They're not putting it into the income snowball system, which means they're not getting very far. So if you were to take $10,000 and invest that in Prosper, for example, which is there, that this is a form of short term amortized income investments and it's peer to peer lending, right? So you're basically giving a thousand different credit worthy borrowers $25 each or whatever to make up that 10,000. You know, you're, you're not, you're only making a thousand dollars in interest over three years. But if you stack that income and you use our system, you're making so much more. I mean you're actually getting, you know, 1200, $1500 a month in less than a year. That continues to grow exponentially. It's really that second or third year that you see this, this trajectory go from here to there. So, so it's really, it's really great. So that's just one example. But there are a lot of companies that have actually created investments for the income snowball. And, and so if I explained them to you wouldn't really know what they were. And, but they're designed for the income snowball themselves. But that one was not designed for the income snowball. For example, Prosper. And I mean you can just find it online. What investments are starting at only 10,000? That's another example. But every company that creates an investment for us, they usually have their investments start at 10,000 or sometimes, sometimes it's 20, but usually as low as, sometimes it's even lower, 5,000. So, and someone said what if you just had the cash, would you use it rather than, would you use it rather than debt? I would not. You could use it, but you're always going to make more money when you use other people's money. It's similar with real estate, right? If you were to take $30,000 and use that as a down payment on a rental property and you borrowed 70,000, say it was a hundred thousand dollar rental property, you might get $300 a month in cash flow on that $30,000. Or you could take a hundred thousand in cash and buy one and maybe get 900 or $800. You could, with that same hundred thousand dollars, buy three rentals and get more cash flow, actually for rentals and get more cash flow than you would just getting one. Because the leverage, it all has to work out. If the properties don't cash flow, then none of it works. But, but the idea is, you know, if you have the right investments and you know how to use leverage, which we teach our clients how the smart. And the smart use of leverage. Right. Don't use too much. You don't want to grab a $500,000 home equity line and throw it into some investment. Your cash flow most likely doesn't support it. So that would be too large. But again, you don't have to figure that out. The calculator will tell you based on your cash flow, your. Your, you know, income and assets and what you're trying to do, the amount of leverage to use and when to increase it and by how much. So we'll have all that planned out. You know, you'll have a plan laid out for you so you can implement it with a coach, too. Okay, so hopefully that answered all those questions.

All right, I'm going to summarize a bunch of other questions that I saw, Tanisha.

Sure.

So on the thread of credit, so is there a limit to how much credit people can get, and do you connect them to those resources?

We do. We connect them with resources to get lines of credit. I mean, the limit really depends on your, I guess, credit worthiness. But we'll give you some tools and tips and things to increase that as well. But we have different, you know, different vehicles and different contacts to be able to put you in touch with no matter what the. The credit history is. So that we can usually do that. Yeah.

And if there are people, you know, who are well into the six figures, high six figures in their income, so say to do the income snowball, they want credit of, you know, 300, 400. Are you able to connect them to that level of resources as well?

Yes, we can. We absolutely can. Yeah. I would say probably maybe half of our clients right now are in that situation. There are real estate investors with, you know, four or five rental properties. They're accredited investors. They have large cash flows from, you know, their professionals with large cash flows. So they need larger lines of credit. But, you know, and so what it boils down to is your specific situation. It's very personalized. You know, there's the person with a thousand dollars cash flow and there's a person with 12 grand cash flow, monthly cash flow. The person with the $12,000 monthly cash flow needs a much bigger line of credit than the person with the thousand dollar cash flow. Yes. Mm.

And I'm going to summarize some other questions that I see, and it's around like, who has access to this and do you have to be accredited? So, so the investment that I showed and that we're talking about on Monday, it's for accredited investors. And what that means is that you have a net worth of a million or more, not including your home, or you have an income of $200,000 a year or more, or jointly with your spouse, you have an income of 300,000 or more per year. So just one of those will qualify you as an accredited investor. And so the minimum investment for the one we were talking about is $100,000. However, you know, Tanisha was showing, if you're not accredited, this doesn't work. You know, my investment doesn't work for you. She still, you can still find other investments that will work for you in this no ball. It just wouldn't be that one. So I hope that answered the question for those people who are asking around, like, who, who is that investment available for? There's another question around the, the tax advantage of this. So, you know, so you have two buckets of income. So if you have a rental property that's categorized as that income from real estate is passive income, and it's taxed differently as your active income or your ordinary income bucket, like your W2, your stock income. So there's two different buckets. And so people are asking, well, how does this reduce, can it reduce your passive income taxes? No. So the energy fund that I'm talking about, it only applies to your ordinary income tax. It doesn't apply to, like, if you're getting rental income, it wouldn't reduce your taxes on your rental income. And so you're going to want to. If in the, in the webinar on Monday, we're going to give out K1s and tax documents. So then you can take them to your CPA and say, here's the investment. Does this work for me? Depending on. Because it depends on. Yeah, like what state you're in, where you're getting your income from. And so you're going to want to review that with your CPA. But it does apply to W2 income tax and, you know, stock income. So your, your ordinary income bucket.

Well, great. It looks like we have reached the top of the hour. Let's see. I think I don't know if we have a lot more. I see a ton of chats here.

I think some of them are pretty detailed and they should be done in a coaching session with Tanisha.

Yeah, well, it's not going to be with me. Okay. Yeah. Right. Okay. I. Like I said, for the first 10 people that request a strategy session, I will do a video explaining your situation, what I. What I suggest based on the plan. And so we'll come up with a plan specific for you that I will personally look at. So it's a little different. So I'm going to work. You're going to make me work hard the next few days. Yeah, we got a lot of people.

Who want to talk to your team. I'll answer one more question. I saw about a 1031 exchange. So, Leah, if you're selling a property, just shoot me an email because it's a bit. It's a bit longer than we have time for today, but basically we have. We do a tick structure, a tenancy and common structure on our properties so that you can exchange into it. And then if. If it's a business you're selling, we have a trust structure for that that we refer people to. So let me know. Just send me an email and we can start talking about how that might work for you. Lots of questions about. Is it recorded? Yep, it's recorded. We're going to send it out to everyone, share it with everyone. You know, it's Valentine's Day, so spread the love.

Whoa.

This was really awesome. I appreciate Sarah and Tanisha for hanging out with me, Zoom, today. You know, spread the love, share it with other people. The more people we can impact, the happier we will be.

That's right. All right, well, thank you so much for having me. I. This was. This was awesome. I knew it was gonna be a lot of fun and. Yeah. And if you guys have any other questions, feel free to ask away at your strategy session and we'll get right back to you. Your coach will be able to answer any questions. A wealth coach is assigned to. You can answer any questions for you.

All right, perfect. Thank you for being here, Tanisha. Thank you for creating the system and sharing the love on Valentine's Day.

Thank you. All right, you guys have a great, awesome rest of your week.