This post is part of a series:
Part I Part II Part III Part IV Part V Part VI Part VII Part VIII Part IX
When we left off yesterday, we came to the realization that the “nest egg” approach to retirement was a scam. That’s because it puts us in a fragile situation unnecessarily.
Plus, it takes a really long time… with no guarantees.
Fortunately, there is a better way. It’s an approach that puts us in a much stronger financial position. And it does so in a far shorter period of time.
It’s the monthly cash flow approach. Instead of focusing on capital gains, we focus on building monthly income streams.
But wait a minute.
Readers may be wondering, what does any of this have to do with debt and taxes? Isn’t that what we are supposed to be talking about?
Well, dear reader. Stay with me. We’re building up to that crescendo right now.
If you recall from Part I, I learned a single overarching principle from my experiences as an investor. Focusing on monthly cash flow is part of it. But only part.
The secret is much more nuanced. I’ll explain by getting back to my Bitcoin conundrum.
So I’m sitting there looking at my Bitcoin stash, and it’s a large number. At least large for me.
And my problem was – how do I access this value without getting hammered in taxes? It’s a big number now, but after taxes it will be substantially smaller.
Then I discovered the solution. It was debt.
Specifically, I began collateralizing my bitcoins to borrow dollars against them.
Then I used the funds to acquire rental real estate in top-tier U.S. markets. Essentially, I used the value I had accrued in Bitcoin to build passive income streams.
And here’s the beauty of this approach…
Going into debt is not a taxable event. The money I borrowed was completely tax-free.
Sure, I had to pay interest on the loan. But that interest paled in comparison to what I would have paid in capital gains taxes had I sold the Bitcoin.
Plus, the real estate income paid for the Bitcoin debt.
So instead of selling my Bitcoin, paying taxes, and buying the real estate… I kept the Bitcoin, paid no taxes, and got the real estate. And the monthly cash flow that comes with it.
The lesson: debt is a powerful financial tool if used wisely.
And it doesn’t stop there. Real estate happens to be an asset that can eradicate our tax bill. We’ll talk about that more tomorrow.
In the meantime, don’t forget to set aside some time for our Finance for Freedom video workshop this week. It details a step-by-step process for building $10,000 a month in extra income using rental real estate.
What’s more, we are building an investment membership around this system. The membership will get investors plugged into existing real estate networks. These networks do two things for us.
First, they provide us with deal flow. They give us access to vetted rental properties in a handful of top-tier U.S. markets. And these properties generate anywhere from $300 to $900 a month in cash flow.
Second, these networks connect us with all the professionals we need to build a business around rental real estate.
Brokers… lenders… insurance agents… property managers… CPAs… asset protection attorneys… Working up to $10,000 a month in passive income requires us to develop relationships with trustworthy people in each of these areas.
And that’s where our real estate networks come in. They get us matched up with fantastic professionals who can help accelerate our journey to financial independence.
We’re calling our new membership The Phoenician League. And it’s designed to provide members with both the knowledge and the connections they need to make it all happen.
And we are building a community inside the membership as well. It’s a place for like-minded people to discuss ideas, strategies, and insights. And of course, members can get specific answers to any financial questions they may have on our training program.
For more information on the membership, check out our video workshop at: https://phoenicianleague.com/workshop
Our program is open to Founding Members through Saturday, October 8th.