There’s nothing like it! And it’s something you’ll start using immediately.
Plus, there are more ways to take money off the table and use it to grow your wealth ... You can invest in long term, consistent growth stocks that have performed well over time. These will easily get you 4-6% returns year after year.
You can also invest in gold and silver ... These proven commodities fluctuate, and are a good investment for your portfolio.
You can invest in art ... Something that many wealthy people do to park their money somewhere safe. And art typically appreciates very well over time. You can get 10%, 50%, 200% returns.
You can put your money in money market accounts ... This is a great places to put your money because you get a better return than a savings account. Plus, they’re liquid and accessible. These types of accounts can earn 1%-2% returns.
Finally, you can invest in tax liens ... This is a little more advanced, but it’s a great way to get a 10-20% return.
Again, these are for slow consistent, predictable growth. To sum up, this pillar helps you take money you already have, and invest it, so it can safely grow to be used later to buy cash flowing assets.
Now pillar 3 is an important one, It’s the Protection Pillar. The goal is to keep what you make. Because as you start to TAKE ACTION on Pillar one and two, you’ll have plenty to protect. More than you can imagine right now.
And to be clear, this pillar isn’t just about asset protection, it’s also about your taxes. One thing I noticed about the wealthy is that taxes are always on their mind. They’re always planning so they don’t overpay. Everything they do financially is to get the BEST possible tax advantages.
And if you want to be rich, you need to start thinking like the rich. And for most people, taxes are the LARGEST expense you have ... 20-40% of your income goes to taxes! So like the wealthy, you must reduce this expense and keep as much as you can of what you make. Which basically becomes free money.
And as we go through this, you’ll see that this shift in mindset makes a world of difference! The rich are proactive. The poor are reactive. The rich plan. The poor have NO plans. They live paycheck to paycheck, and are usually just one crisis away from being wiped out. Now ...
When you get to pillar #3 ... You’ll learn how to create an LLC, a very easy thing to set up in most states, and it opens the door to the best tax strategies!
So as you start your side business, your real estate business etc, an LLC will help reduce your tax liability and funnel profits or income to your bank account instead of the IRS.
This can mean an additional $1,000 a month of income for you! And there are hundreds of LLC gems you can take advantage of.
And as part of your asset protection planning, you can also create a family trust. This puts a security net around your personal assets. And is a huge deal for probate protection. When you create a family trust, you add a layer of protection because the trust controls your assets and it protects your privacy.
Now, pillar #4 is one most people are really excited about ... Because it’s all about cash flow assets. This is where you get to create serious wealth! I simply call it Investments and assets.
This is different from the investments we talked about in pillar 2. Those don’t bring in passive cashflow ... but the assets and investments in Pillar 4 do. This is where you take money you set aside, and have grown, to create passive income streams. Pillar 4 investments include: