For today’s episode, we will be discussing a reaction to the Top 7 money myths.
We will go over the principles of these myths!
[00:01 – 03:47] Opening Segment
- We introduce our topic for today
- Bad investing tip
[03:48 – 33:13] 7 Money Myths Review
- 1 – You shouldn’t talk about money
- 2 – It is All about Luck
- 3 – Money is Evil
- 4 – All Debt is Bad Debt
- 5 – Cash is King
- 6 – My 401k will make me Wealthy
- 7 – It takes Money to make Money
[33:14 – 36:57] Closing Segment
- Final thoughts
- Book recommendations:
“How is anybody ever going to learn how to be financially literate if talking about money is taboo?” –Dan Kreuger
“And so it’s really interesting to see that that wanting money is somehow automatically lumped into greed.” –Dan Kreuger
“if you really want to win the money game, you got to figure out how to use it to your advantage” – Anthony Vicino
“One of the things that we love about real estate is we can use leverage so we don’t have to come with all the money.” – Anthony Vicino
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Top 7 Money Myths
Anthony Vicino: [00:00:14] And. And welcome to Multifamily Investing Made Simple, the podcast, it’s all about taking the complexity out of real estate investing and you know, you’re not listening to the site too. This is just my normal speaking voice. I was just really excited. I am your host. Anthony Racino of Invictus Capital, joined by Dan. I have a meow and cat in the background. I have nothing I’m sorry I can
Dan Kreuger: [00:00:41] Distract your cat had a name for me. I couldn’t hear that cat.
Anthony Vicino: [00:00:44] I could just I have probably like headphones in and I can still hear him out there meowing. He’s like, Dad, Dad, we love you. You’re our favorite.
Dan Kreuger: [00:00:53] We got fans. I got fans.
Anthony Vicino: [00:00:55] I got to ask you a question. I was going to ask you this before we started recording, but then I was like, let’s just save it for the show because it’s going to tie into my bad investing advice for the week. Have you watched it on Netflix? The Formula One Race to Survive series.
Dan Kreuger: [00:01:14] You know what, honestly, I think I might have started it when Liz was in the room and got very quick complaints and had to switch it off. I’m a car guy and so I love it if I don’t follow Formula One, but I’m just fascinated by how frickin fast it’s made us go.
Anthony Vicino: [00:01:32] It’s amazing. We just finished season three and it was gripping. It was gripping, gripping the entire time. But then the second to last episode is some of the most gripping television I’ve ever seen. It deserves an award that second to the last episode. It’s so
Dan Kreuger: [00:01:45] Good. Well, this is out of town this weekend, so I am.
Anthony Vicino: [00:01:48] There you go. Time to binge watch, baby. They go by so quickly. They’re good. But here’s why I bring this up is because my bad investing advice I was looking it up was like, how much does a Formula One driver make? And some of them make like 30 million dollars a year and there are 20 races a year. There are only 20 Formula One drivers out there. And so, like your chances of becoming one are like very, very small. But if you do make it, then you’re making pretty good money. And so that’s my investing advice for this.
Dan Kreuger: [00:02:11] If you don’t die,
Anthony Vicino: [00:02:12] If you don’t die, but that’s my investing advice, is spend the next 20 years, hone your driving skills, go Formula One, make big bucks and then put it into a 401k.
Dan Kreuger: [00:02:24] That sounds like the most reasonable plan I’ve ever heard.
Anthony Vicino: [00:02:30] And yet most people have a worse plan now. And I say that as long as it leads into the day’s topic of conversation,
Dan Kreuger: [00:02:42] Which we take control,
Anthony Vicino: [00:02:45] Oh, we’re going to e one, the only Brandon Turner of Pickpockets fame who put out a video earlier this week, maybe last week. I can remember when I was there watching this doesn’t matter where it was, the seven moneymaking myths that are stopping you from making millions. And we thought, hey, let’s do one of those reactions to videos where we react to somebody else’s content and we break it down for ourselves. So I have these seven myths here. We’re going to go through them one by one and address them, take our take hot, take our opinions and see if we’re in agreement with the one and only Mr. Beardie Brandon. And in the process, I think we’re gonna have the opportunity to expound on why I think most people’s investing strategy is as bad, if not worse, than the Formula One K-like dream scenario that I proposed. All right. Are you ready to get into this?
Dan Kreuger: [00:03:46] Let’s dive in.
Anthony Vicino: [00:03:48] Ok, so money-making myth number one that is costing you or stopping you from making millions, that’s a mouthful. So from now on, they’re just money-making this, number one. You shouldn’t talk about money
Dan Kreuger: [00:03:59] And yes, it’s about money in this country. The US is a taboo thing to talk about. And from what I gather, that’s not the case in other places around the world. I think it might be the case in Europe to some degree. But from what I gather, it’s a very much us American Western culture kind of thing to be hush-hush about money.
Anthony Vicino: [00:04:25] I have no idea if that’s true or not, but it is interesting to me that in our country, money is simultaneously worshipped and taboo is like crazy how we look up to the people. Think of who, you know, off the top your head celebrities. They are making a ton of money and like these big business people that we’re aware of and like we put, we put money on a pedestal. When we look at Instagram, everybody has a jet in the Lamborghini and likes just sipping Cristal out of sippy cups all day, like there’s this fascination with having all the money in the world. But then simultaneously, when it comes to being in a family-like. No, no talking about that, no talking about finances, no talking about investing, that’s awkward and uncomfortable. Like thinking about my family wasn’t so much like this. And I think I’m really fortunate that my dad was very open in talking about business and finance with me. But my mom definitely wasn’t. My siblings definitely aren’t like they did not adopt this. And so talking about money is very uncomfortable because it’s either like it’s only OK to talk about it if you’re complaining about not having it. I feel like that’s the only scenario.
Dan Kreuger: [00:05:35] Yeah, I think that’s accurate. And it’s really interesting if you kind of unpack the logic behind that perception that people have the talk about money is bad because it’s like you think about it. If you want to get something, you have to learn about it. If you have to learn about something, how can you learn about it if you don’t talk? I feel like that’s impossible. So I think that just sets so many people up for failure. If we kind of put this concept, this topic in the corner and say we don’t talk about that, that’s a hush. How is anybody ever going to learn how to be financially literate if talking about money is taboo?
Anthony Vicino: [00:06:08] It’s a shame that we didn’t really cover this in school, high school, college. Even if you’re going to get a finance degree, which you did like, it’s still not really talked about in the same way. And it’s really interesting that I read a lot of books on finance and on money and like books that are labeled things like How to Get Rich like. And even when I’m reading that like a book of that title, I still kind of go, it feels dirty, feels Clixby. It feels like something feels gross about it, but the content is really good. And so I enjoy those books. But there’s even within me, there’s this push and pull of like. Still dirty?
Dan Kreuger: [00:06:43] Yeah, it was really interesting, I was at an event a couple of weeks ago and there was an individual there, a younger guy, I think it was about twenty-five years old. And he was from Ojito. It was right. Oh. It was either Puerto Rico, Costa Rica is from Costa Rica, I believe, I apologize if I get this wrong. OK, so listen, you’re listening to
Anthony Vicino: [00:07:06] This Mr. Puerto Rican, maybe not a Puerto Rican man. The let us know.
Dan Kreuger: [00:07:10] Yeah, I mean, I’m blanking because. Because we’re recording. But the long and short of it is is he was from another country. And one of the things he was talking about at this event was that wanting money, desiring money was perceived as bad in the country that he was from. So a little bit different than the way it is here, where we look at people who have money, as is the man and the bad guy. You know, in our country, I think desiring money and trying to get rich is a little bit more accepted. But we still like to hate the guy on top, even though we glorify people making that claim. As soon as they get up there, they’re chastised for it. And so it’s really interesting to see that that wanting money is somehow automatically lumped into greed. Whereas at the end of the day, there’s a big difference between being greedy and wanting money. If you want money so that you can spend time with your family or give money to organizations or people that need it and help them, kind of like Bill Gates and Warren Buffett and some of these guys do, that’s a perfectly moral cause. And so I think that a lot of people get just confused about the difference between wanting to acquire capital or assets and being greedy for their own.
Anthony Vicino: [00:08:26] And this ties into Brendan Turner’s myth number three. So we’re going to skip number two for a second. We’ll come back to that. But myth number three is that money is evil. And, you know, I don’t even think that you need to justify your desire or want or in need of money and the terms of greedy or not greedy, because it’s your life. You get one life, you get one go at it as you live it on your terms. If that’s the thing that you want. If you want a lot of money so you can go do the things that you want to do and like more power to you, like not going to judge you. But the thing with money being evil is it’s not it’s just a tool. And what you use it for is what really matters at the end of the day. Like and there’s some pretty egregious spending out there on things that are just silly. And there’s a lot of suffering in the world. There’s a lot that you could do with your money. The most important thing for me, the most important function of money is that that allows you to buy back your time. It’s like I was using this analogy the other day, money as a tool. And it’s like somebody coming up to you and saying, I want to collect all the tools in the world. And you’re like, what are you going to build with it? No, like nothing. I just want to keep all my tools in the shed. And that’s like what a lot of people do when it comes to, like, just accumulating money is they just want to have the money. And it’s like, well, what are you going to use it for? What kind of impact are you going to have? That’s the bigger question for me.
Dan Kreuger: [00:09:46] Yeah. It’s really, really interesting to me as well. I mean, just the statements that I wrote while Butcher was money is evil, as evil as a concept is, is so strange to me because really it’s implying that if you are getting money, that means that you are taking it from somebody else. Yep. Which is not true. So I think people need to dispel that thought process and that myth that it’s a zero-sum game where if you acquire a dollar that means it came directly out of somebody else’s pocket. It’s not true at all. If you create value in some way, you get compensated for that. You’re not extracting value from somebody else in order to to take it. If you’re doing it the right way, what you’re doing is you’re creating some sort of value that wasn’t there before that you’re going to reward for. So even though you might have acquired some money and in a deal that you were doing, you probably created a job which created an income for somebody else that gave them money to go spend somewhere else and end up in somebody else’s pockets. So this exponential spread of wealth is created when you’re actually creating value. And if you get compensated for that nine times out of ten, you created more value than dollars. You are rewarded for it.
Anthony Vicino: [00:10:56] The people this is interesting. The people that you will hear say money is evil or that money is scarce in that like you, earning money is taking away from my chances for making money. Those people tend to be poor. And the people who have a lot of money, tend to be very abundantly mindset where they like. There’s plenty to go around like me. That guy having a billion dollars isn’t stopping me from getting a billion dollars. And so right there, if when you think about money, if you immediately go towards the scarcity side, you need to start there on that because that is holding you back and you will never achieve the life of your dreams if that’s your starting point. So you need to pivot to the abundant mindset which gets us into myth number two. So we’re cycling back now to that one because we skipped it before. It’s all about luck. What do you think about that, do you think, you know, making money is all about luck?
Dan Kreuger: [00:11:48] Yeah, I can’t remember who said this. It’s a very common quote. And I apologize if you were going to use this and I’m stealing from you, but I’m going to keep doing it and do it right now.
Anthony Vicino: [00:11:57] I’m sorry.
Dan Kreuger: [00:11:58] I’m you said
Anthony Vicino: [00:12:00] I’m going to come back with a better
Dan Kreuger: [00:12:01] Quote that you have them. But there is a good quote out there. I’m sure you’ll know who said this funny thing about luck. The harder I work, the luckier I get. Who said that?
Anthony Vicino: [00:12:13] I don’t know. I mean, so many people have said that.
Dan Kreuger: [00:12:15] Yeah, I think it’s one of those where someone said it once and everyone’s there’s a lot of people taking credit.
Anthony Vicino: [00:12:19] So the concept is the same, though.
Dan Kreuger: [00:12:21] Yeah, yeah. Yeah. And basically, it’s just that, you know, the others there’s luck involved in just about everything. But it really always comes down to effort and work. And then the more time and the more effort you put into things, the more they seem to start working out. And that could be perceived as luck to somebody from the outside who doesn’t really see all of the work and effort and all the failures that came before the success. But that that whole luck thing is, you know, it’s a component. There’s a little bit of luck involved in just about everything. But it’s, you know, a small couple, maybe five percent of the equation. The vast majority of it is all how hard you work. How effectively are you working and how long have you been at it? Are you putting in the effort on a consistent basis for a very long period of time?
Anthony Vicino: [00:13:08] Yeah, I would say a quantity of plus the quality of work plus time is the most important fact is if you’re listening to this right now, we’ll pull a page right out of Gary V’s book where he says, your odds of being a human are four hundred trillion to one. You are already just by by fact of being a human and not an amoeba. You’re the luckiest thing in the universe. Like you’ve already won the luck award. Good job you’re there. So now the question is like, what are you going to do with this, like, incredibly fortuitous sequence of events that have led to you being here? And yes, on this planet, there are seven billion people and there is a person who is ranked last who has a really, really bad life. And the man the cards have really not, like, stacked well for them. They are unfortunately very, very unlucky. But if you’re listening to this, if you have the means to hear our voice right now, that means that you are not that person. You are far better off than you even suspect you are. And that’s the thing that I see all the time, is the people who cry about luck. Ah, I don’t know. If you look at their life, they’re still driving the car to work every day and they have a home and they have a cell phone and they have Internet. And it’s like you have everything that you need to make your own luck. You just you’re just not seeing it yet.
Dan Kreuger: [00:14:21] Yeah. So to reiterate, look. Yeah, look, there’s always a little bit of luck involved in things and we’ll take it when it pops up. But it is not what’s going to get you rich.
Anthony Vicino: [00:14:33] It’s not unless you want to win the lottery. Good luck. OK, now myth number four, that’s come straight out of our boy Dave Ramsay’s book, All Debt is Bad Debt. We just harped on this one so much. So if you’ve listened to any of our one hundred episodes, you know, Dave Ramsay’s advice is good for people at a very particular point in their life. If they can’t manage credit card debt if they are just so in debt like they have horrible spending habits and all debts. Pretty bad for you, but there’s a difference between, you know, constructive debt and destructive debt, constructive debt being the type that you take on to go and acquire assets that put money back into your pocket, that, you know, gain value over time and compare that to the destructive debt which you use to go and buy things that you can’t afford. And then the interest is just burying you like, no, not all debt is bad debt. There’s really good debt. And if you really want to win the money game, you got to figure out how to use it to your advantage, because here’s the dirty little secret. Everybody else that is like making big money that is successful. They figured it out. That’s how they’re doing it. They’re leveraging it. And that’s the keyword. There is leverage.
Dan Kreuger: [00:15:45] And yeah, I think this one is very important, especially for us in the real estate space. This is a big component of our business. And, you know, you’ve heard us harp on this concept over and over and over again. So we’re not going to bore you with the usual explanations of why debt is not bad when used properly. Kind of like Anthony was alluding to there. If you are acquiring assets to produce cash flow and produce wealth for you, then the debt could be a useful tool. But if you’re buying TVs and cars and just consumer products that just depreciate rapidly and you’re paying high interest rates to get those things because you don’t have the money to afford them, that’s a different story. We don’t need to with that. We all know that’s silliness. But these days, especially, this conversation is especially applicable because right now you can get debt for an apartment building at three percent or even a little bit under that. And inflation is a lot more than that. And so what that means is you are getting paid to borrow money to buy a cash-flowing asset that puts money in your pocket. So going out and buying an asset like that, without any doubt in my mind, is a bit silly.
Dan Kreuger: [00:16:56] Even if you don’t technically need the debt and you could buy it and just cash. I think it’s silly not to borrow at least some money in that process to essentially get paid to borrow it, especially if you have the means to pay it back. And there are really zero risks to you in that department. You know, the inflation rate that’s published is is just ridiculous. They don’t count energy, they don’t count food, and they don’t count living costs like rent and house prices in that calculation. So when you see the Fed, we’re in this in June of twenty twenty-one. When you see the Fed talking about them trying to get up to just over two percent inflation, they’re not counting the things that really matter to most people. And the inflation story right now is insane. So being able to borrow money at three percent or even lower is what I would call it once a once in a lifetime opportunity. And if you wield that sword correctly, that could have tremendous benefit to your wealth accumulation over the next several years.
Anthony Vicino: [00:17:53] Absolutely. Absolutely. Which then kind of ties in a little bit to Brandon’s myth number five, which is Cash is King. And this is an interesting one to me because in some cases, cash is king. Cash can be a really great thing. It’s great to have dry powder sitting in the stocks that you can deploy when you have the opportunity. It’s nice to have cash reserves when things go bad. So like cash, cash is pretty great. I’m not entirely sure what his perspective is here. I have a theory, but I’m going to let you go first.
Dan Kreuger: [00:18:25] Yeah, I’m guessing is his theory would or his stance on this would probably be pretty similar to ours just because we’re in the same industry and doing the same thing. So why can’t they just kind of mention I mean, cash is a powerful resource, specifically liquid capital, something that you can just go and access and use immediately without having to turn around and sell something that’s a really powerful tool? With that said, kind of tying back to that inflation stuff I was talking about before, the reason that we’re seeing prices increase so much is that the money supply is being inflated. We’re printing more and more money, which means that there’s the same amount of stuff out there to go out and buy, but there are more dollars. And so everything’s value relative to dollars is going up, which means that the value of each dollar is going down every time they print another one. So I look at cash as a really powerful resource and lets you go out and acquire things whenever you want. But also it is like an ice cream and ice cream cone on a hot day. And the longer you’re sitting there holding it, the quicker it turns into just a worthless pile of nothingness on the ground. So I just powerful. But I also it’s like nails on a chalkboard just having to sit around, not earning yield. So, yeah. And I want
Anthony Vicino: [00:19:46] Another angle to consider here. I wonder if Brandon’s looking at it from this angle as well as cash flow cash. The cash is great to have sitting around, but cash flow is even better because when you have cash flow, it points to healthy, thriving businesses that are self-sustaining. And really, that’s what you’re looking for in your own life, is like healthy, abundant cash flow. I don’t need ten million dollars sitting in the bank if I have, you know, ongoing consistent cash flows in surplus of my expenses. And that’s the idea. You don’t want to be sitting on that cash. You want to be redeploying it so that you can get more cash flow like it’s a beautiful thing.
Dan Kreuger: [00:20:19] Cash flow is the best thing in the world.
Anthony Vicino: [00:20:21] It is like once you have had a little bit of cash flow, you get addicted to it. It’s like a paycheck.
Dan Kreuger: [00:20:25] Yeah. And like you said, then you don’t have to worry about just having money sitting in the bank doing nothing. If you’re continually getting disbursements from something, whether it be dividend-paying equity, real estate investment, a job, you know, if you’re getting consistent cash coming in from something, you don’t need to leave a big balance in the bank. You can continually allocate that capital to places where it can be a hedge against inflation. Meanwhile, keep just enough to keep yourself afloat and then having some stuff that’s in semi-liquid stuff that you can access pretty quickly but is also not doing absolutely nothing, just sitting there.
Anthony Vicino: [00:20:59] So, yeah, think about it. Like, if you’re in retirement and you have two million dollars and you just turn sixty-five and you left your working, you have no residual income cash flow streams coming in, you just have two million dollars sitting there. Like that’s, that’s going to erode really, really quickly.
Dan Kreuger: [00:21:14] That’s a very stressful situation. I know a lot of people that are in that situation say a lot of a large handful of people that are in a situation like that where either they got a windfall or they retired or something happened where they’ve just got a big pile of cash and they have this sense of urgency to do something with it, which they should because of inflation. However, it’s nerve-racking. It’s it’s a tough situation to be in. It’s a good problem to have. You could say first real problem, other than
Anthony Vicino: [00:21:42] The alternatives of having done
Dan Kreuger: [00:21:44] There, are going to be made both ways. Having no money. Yeah, you might be happier never having had money than having had it and then lost it. Well, that’s true.
Anthony Vicino: [00:21:54] The psychology reports do suggest that having money and losing it is way more painful than just never having had it. Yeah, but so myth number six, let’s get into this one. My 401k will make me wealthy, etc. as long as. Article audition’s, this article is put in front of me on the Internet the other day where it was an article from this person who is like, I’m saving a thousand dollars a month and I’m going to have two million dollars saved up by the time I’m sixty-five, all thanks to compound interest in my 401k. And I was like, man, thirty-five years. Like, that’s not all that great. Like that’s something like really to go writing home about the whole thing with the 401k that really gets me is like nobody gets wealthy that way and you get average, you get average results may be that way and it’s going to take a long time and a lot of principles. It’s going to take a lot of working and loading it up because you’re getting seven, 10 percent returns like that takes a while to get that for taxes before taxes. Yeah, that’s the really important thing. There are people, as I said before, taxes. So I don’t know. I like this one. Just silly to me. It’s but it’s I’ve been talking about it a lot recently on social media, and it’s so fascinating the number of people that come out of the woodworks defending to the death, the 401k and like investing in stock markets, like index funds. That’s crazy to me.
Dan Kreuger: [00:23:16] It was the official title of this one-off of Branden’s My
Anthony Vicino: [00:23:19] 401k will make me wealthy.
Dan Kreuger: [00:23:21] Gotcha. Yeah. My response to that is if that’s someone’s game plan, first off, good job for having. A game plan and a goal to accumulate wealth and save, because right there you’re way ahead, way ahead of a lot of people in the US who don’t even start thinking about retirement until they’re like 50 and they realize that they don’t have anything. So even if that is your plan and you’re thirty-five, which I think this individual in this article you were talking about was then that’s great. OK, just doing anything that’s saving, even if it’s in a really inefficient vehicle like I just mentioned, if you’re just doing that, that’s, you know, kudos to you for doing something. But it’s like the least efficient way to do it, in my opinion. And my response to a lot of people that make that four one K retirement plan argument is like how many significantly wealthy people can you find that that used that strategy of just plug in some money into an index fund over 30, 40 years? Like usually those people are able to retire comfortably, but that’s it. That seems to be like the upper threshold of where you’re going to get you’re not going to get wealthy. You’re probably not going to get rich. You’re going to be doing OK, hopefully.
Anthony Vicino: [00:24:37] But you’re not I’m going to say OK, ish. And that’s the big thing is like on these plans, a lot of people are talking about having two million, maybe three million in the bank for retirement. And it’s like that’s not as much as you think. And that can really disappear pretty quickly. A couple of things don’t go quite how you thought they would. And you incur a few more expenses, a few more medical expenses. And like you might be doing OK, but you’re still a far cry away from wealth.
Dan Kreuger: [00:25:04] Yeah. I mean, most people are planning to retire in between maybe 55 and 60 somewhere in there. And so let’s assume you live for like 30 to 40 years after that. Most people who are under the age of 50 or 60 right now, you know, people who are our age, we’re like thirty-five somewhere in that range, like we’re trying to live pretty close to 100. So if you’re retiring at six, you’ve probably got another 30 to 40 years, or if you’ve got two million cash saved up when you’re retiring, that’s effectively 50 grand a year for the rest of your life. Assuming that you don’t have to pay any tax on money withdrawing their support in a Roth IRA, you don’t have to pay tax. We take it out. But if it’s a form for a traditional, then you’re going to be paying income tax when you start taking that money out. So your post-tax income is maybe going to be like 30 or 40 grand. And that is in today’s dollars, not future dollars. And 30 or 40 grand a year is not going to buy that much for you. We just talked about inflation. The buying power of each dollar is going to be significantly less. So this whole two, three, four million dollar goal that people have when they’re looking 30, 40 years in the future is not going to cut it. I know it sounds like a big number, but when we get there, it’s going to be like having, you know, 50 grand a year right now, which is fine, but it does not provide a cushion. And you’re probably going to have a lot of medications to buy when you’re old.
Anthony Vicino: [00:26:18] And unless you take all your money and you pull it out of whatever investment vehicles it’s in and you say, this is my dragon treasure, I’m going to hoard it and this is what’s going to get me through the rest of the life, you’re probably going to keep it in some kind of investment vehicle. And a lot of people keep that in the stock market and. Losses are much harder to come back from than you think they are when you’re no longer contributing to your investments. So if the market takes a little dip, a little correction, it drops and suddenly you’ve lost, I don’t know, in twenty, you could have lost 20 percent of your net worth just right there. And then how long does it take to get that back when you’re no longer working and putting money back in? Well, all of that is to say is that you’re in a high-risk position and most people don’t. They think that it’s going to last a lot longer, but things just go sideways so quickly. And I just want people to, like, recalibrate what’s possible, first of all, and say, hey, it’s possible to retire at 10 million or 12 million. Like, that’s totally doable. Like, there are ways of doing that. Let’s explore that. Like, open up that gate a possibility. And I think it all starts with that and like being more abundantly mindset. Yeah.
Dan Kreuger: [00:27:28] One important thing to note here before we move on to the next one, just on this for one key topic, because, you know, we love bashing for one KS and retirement plans on the show. We realize that it’s it is a decent resource when used effectively as part of a comprehensive strategy that includes other things. And so by no means are we saying that you should not utilize it for work or retirement plans, especially if you’re getting some kind of match from an employer. I think it would be silly not to take advantage of the match, but that’s usually what I tell people, like take advantage of the manager or any other little perks they have and then and then cut it off and then do some other stuff in addition to that 401k do something outside of that on your own with your extra capital, whether it’s just opening up another brokerage account. If you aren’t comfortable with other assets, that’s fine. But do something outside of the forum, OK? Have a few different strategies working here so that just in case the grand plan doesn’t work, that you’ve got three or four grand plans and at least one or two of them should work some.
Anthony Vicino: [00:28:27] Yeah. So I like to hate on these things, but I’ll reiterate that. Do the employee match up to on your four one K. Fund your Roth IRA like that’s one of the best
Dan Kreuger: [00:28:37] Ways, no brainer
Anthony Vicino: [00:28:39] And it’s unbeatable it’s the tax advantages, it’s unbeatable. So do that at a minimum. But just realize that you can subdirectories things. You can put them into other vehicles, real estate, or alpacas. So just so don’t feel like you have to put it all into the stock market.
Dan Kreuger: [00:28:53] Those of you curious about the alpaca reference, I’m sure there’s a
Anthony Vicino: [00:28:56] Man that’s like Episode 12. You’re going to go way back into the.
Dan Kreuger: [00:29:00] Yeah, we did a self-directed episode of Scapa from Advanta. So check it out. It’s an early one. It’s vintage. The audio’s OK. I remember the camera angle that Anthony had that day was not the most flattering.
Anthony Vicino: [00:29:10] Oh, that’s right. It was not good.
Dan Kreuger: [00:29:12] The content was great. So those of you wondering about the whole self-directed everything and using a rather traditional IRA to fund your real estate deals. Definitely check that out.
Anthony Vicino: [00:29:21] All right. So let’s hit myth number seven and then scamper off into the Sunset No.7. It takes money to make money. OK, so here’s the thing. When it comes to investing, like passively investing, yeah, yeah. You can’t passively invest in, say, apartments, an indication you can’t invest in the stock market unless you have money of some sort like that is a prerequisite. One of the things that we love about real estate is we can use leverage so we don’t have to come with all the money. That’s an option. Like there’s a lot of ways that you can get into deals by partnering and finding relationships. But I would say at the core if you’re just a passive investor, that is true. You’re going to need some money to initially invest. Now, how you come by that money, I would say, is there are more options and more than most people realize.
Dan Kreuger: [00:30:16] Yeah. The main problem I have with that statement, I’ve got a lot of problems with that statement or the main one is that what it does is just puts a wall up for people to think the excuse that it takes money to make money and they don’t have money. Then they stop like, oh, I can’t make money because I don’t have money. And so I shouldn’t even think about it or even try until I have money because right now I don’t have that first thing that you need. So it’s even worth me thinking about researching and trying to better me and understand so that right there is ridiculous. But the way I would rephrase it is it takes resourcefulness. To make money, so initially, as Anthony mentioned, like, yeah, if you don’t have any money, you can’t just go and dump 50 grand into syndication and start getting your cash flow checks. That’s not going to work. However, if you’re resourceful, you should be able to start to generate some kind of capital using your resources, whether it’s a skill set that you have some stuff that you’re able to sell, maybe an attic full of stuff. You’ve got some kind of skill set, you’ve got some connections. You can do something to provide value, somewhere to generate some capital. And then all of a sudden you have some money and you’re whole you need money to make money. The thing just goes out the window because now you have capital that you can invest and that can start to pay you. So it’s just getting that initial first little a couple of bucks in the door is the tough one. And so just get rid of the whole you need money to make money thing and think of it as you need resourcefulness to make money. And if you can afford it and you’re going to be good.
Anthony Vicino: [00:31:43] I love that. I love that you put it that way. I wrote an article a couple of weeks ago that was effective that resourcefulness is more important than resources because resources can disappear. Resourcefulness is infinite. It’s all if you have it, you will always find a way back. And at the end of the day, the people that succeed, they they’re not limited by resources. Their infinite resourcefulness allows for them to overcome their circumstances. And that’s the mindset you have to have.
Dan Kreuger: [00:32:12] That’s a really good way of putting that. I like that a lot because what it says is that, you know, having a toolbox of tools and is great, but knowing how to make your own tools or go find tools is infinitely better. So if you’re resourceful, you don’t need to have the tools, but you know how to get them or who to talk to, to get the tools they need to get things done. Exactly. The really important thing,
Anthony Vicino: [00:32:36] And it’s a whole impetus of shows like undercover billionaire where like the green card and go they take away all his money and then all he has is resources, is resourcefulness. And he gets right back to where he was not too long after because, like, you can’t take that away from a person once you have that. So those are the seven moneymaking myths. That was actually a lot of fun. Some of these are like pretty common cliche things that you hear all the time. But and so you might have heard these have been like, yeah, of course, that’s stupid. But some of these maybe have given you a new lens to look at the situation through and hopefully brought you a little bit of value before we let people out of here. Dan, you got any good books that you’ve been reading recently?
Dan Kreuger: [00:33:14] I do. Actually recommended one to me recently that I have probably sold by a million times on Amazon and just disregarded it because the title is silly.
Anthony Vicino: [00:33:24] It’s oh, is this the Cringely one
Dan Kreuger: [00:33:28] Is How to Get Rich.
Anthony Vicino: [00:33:29] Yeah, it so cringes, but it’s also a good
Dan Kreuger: [00:33:32] Little book. And I will tell our listeners that it isn’t something that’s got a bunch of actionable tactical information. It’s really just a guy’s story. I can’t remember his name, but he’s from publisher Felix.
Anthony Vicino: [00:33:43] Felix Dennis. He’s yeah. He’s the guy that started Maxim magazine. It was like a magazine empire mogul
Dan Kreuger: [00:33:49] And he’s from the U.K. So like he started a ton of stuff before that that people in the US probably never heard of. Yeah, but by the time he started that, he was already very much established. But really what it is, is just a story or a long narrative, just kind of going through his life and him essentially disseminating his best practices with respect to business and life. So it’s really it’s just an enjoyable read. It’s kind of fun. You’re not going to, like, put down that book and be like, oh, OK, now I have the blueprint for how to get really rich. It’s OK. No, it’s just kind of helps you, you know, be in the right state of mind and basically just kind of like learn from some of the stuff that he did wrong and he did right. And that’s just a really interesting life story, because he built this really big empire, had some fun along the way. And, you know, the stuff he talks about is not earth-shattering like new information, but it’s good to hear this kind of stories in these best practices kind of reiterated over and over again. And he’s just a really, really good writer. He’s a poet, actually. So his writing style is very enjoyable to read. And I really like to check that one up.
Anthony Vicino: [00:34:55] It’s a fun one. One of the things is you always want to be careful who you’re taking advice from and you always hear people telling you how to get rich and that that isn’t rich or they got they’re getting rich by telling you how to get rich. Right. And so people who make and I’m not just talking about like ten million dollars, but like somebody who’s made a billion dollars, that’s an interesting person to take some feedback from me, like what worked to that person. And that’s why I like listening to Nabal Robert when he talks about how to get rich without getting lucky or Felix Dennis on how to get rich like these are really wealthy people that have practical stories to share. And it’s not a step-by-step guide by any means. But honestly, just by picking up that book, you have all the tools you need necessary to go and employ what you’re going to learn in there. So go check it out. It’s a good one.
Dan Kreuger: [00:35:42] As he has his philosophies are going to be valuable no matter what industry around. So if you’re not in the publishing thing, don’t worry about it, just like paying attention to his philosophy. Perspective on things and you’ll be getting everything you need to the book.
Anthony Vicino: [00:35:57] If anything else, you’ll just be entertained and that’s not a bad thing. So that’s going to do it for us. Guys, we appreciate you taking some time out of your day to listen to the podcast. If your name is let’s go with Darren, Stephen, or Lisa. If you are Darren, Stephen or Lisa, you are up to go leave a review over on iTunes. Let us know what you thought of the show. Everybody else, you’re off for the week. You don’t have to go leave a review unless you really, really want to. But Darren, Steve, and Lisa go step up
Dan Kreuger: [00:36:24] And everyone else too
Anthony Vicino: [00:36:26] Next. And.
