In today’s episode, host Joe Pantozzi shares invaluable insights on the significance of financial literacy, the discipline of managing expenditures, and the power of multiplying your wealth.
Discover why every decision comes with a cost and why having a growing pool of capital is crucial. This episode promises practical advice even for late starters, and a fresh perspective to redefine your approach to wealth management.
Tune in and find out how the right strategies can make wealth your greatest ally.
Show Highlights
Is it too late to take the first step towards financial growth? [00:22]
You must go back to these fundamentals [00:41]
Learn the key to preserving wealth across generations [02:16]
This is how you can build an increasing pool of capital [03:24]
Are you seeking wealth accumulation or multiplication? [04:01]
What does it mean to rent your lifestyle? [04:54]
Can life insurance be a good investment? [05:55]
Discover why it’s important to understand life insurance first [06:16]
Welcome to make youe Wealth Work, the podcast where wealth becomes your greatest ally in achieving your dreams.
Joe Pantozzi:
It all starts with fundamentals. Whenever but anybody asks me, how are we going to start? How are we going to put a plan together? What can I do? I'm five years late.
I'm 10 years late, I'm 20 years late. I should have done this long time ago. We have to start with the same basics. We have to follow the fundamentals, we have to take inventory.
We have to know where you're at before we can proceed to where you might want to go. I go back and I look at the basics. I read newspapers and I say, access to the books is the key to control. Access to the books is the key to control.
As a sprouting economics nerd, I look at headlines, I look at opinion pieces, and I say, control. If you don't have control, you're not going to create wealth. If you're not going to control your wealth, you're not going to have freedom.
It all starts with control. You need to know what your books look like. And I don't refer only to business owners. I mean every single person who works for a living.
You need to know what you owe, what you own, who you owe money to, where it goes. You need to understand that everything has a cost. There is a cost to taking action. There is a cost to not taking action.
There is a cost to buying investment A or asset B, or paying cash or financing or using the infinite banking concept. Everything has a cost because everything can be compared hypothetically to something other than that. You can compare it to another alternative.
What if I had done this? You have to choose the road that you're gonna walk on and then follow that road diligently and understand what you're doing.
My goal in life is to get my clients to apprehend financial literacy so that they can teach it to their kids, so that their kids can teach it to their kids. There's no point in building up wealth.
So you can leave your kids 5 million, 10 million, $100 million only to have them blow it before the third or fourth generation is gone. With respect, you need to understand the principles of control and you need to keep track in inventory.
If you go to the richest man in Babylon, he makes a few key statements. He says, start your purse to fattening. You need to build capital. This is an old saw.
I keep on beating this dead horse, and I'm going to keep on beating this dead horse with every single client I work with. I cannot work with 300 million Americans and 300 million Americans would not want to work with me.
But there are a select few who kind of resonate with what we're talking about when we say you must have an increasing pool of capital at every step along your financial path.
If you think you need $100,000 in ready cash today, five years from now, you're going to need three times that much because you're going to look for and you're going to find more opportunities. Bigger opportunities. More opportunities will have bigger price tags. The richest man in Babylon. He says start your purse to fattening.
He says control your expenditures. That's a really boring thing. We're talking about discipline. He says make your gold multiply.
You don't want to have money accumulating in an accumulation vehicle. You want to look for opportunities to make your wealth multiply. There's a big difference between addition and multiplication.
He says guard your treasures from loss. You don't want to be making more money tomorrow only to have a lost out the back door.
To have somebody sue you, to have your inventory burned down, to have it stolen from you, to lose it in a lawsuit. You need to do things to put those protections in place. You need to own your own home.
Maybe it's owning a rental property as opposed to renting everything in your life. Speaking of which, most Americans are, are renting their lifestyle. Think about it.
Most Americans are sending a third of their take home to some lender, very often a toxic lender. So you need to own your assets. You need to figure out where your cash flowing assets are going to be best positioned.
You need to insure a future income, protect your income, increase your ability to earn. No one lives in a straight line. Inflation is always going to be with us in some way, shape or form.
We can help you discover the kinds of solutions that will be comfortable for you based on your values, based on your intrinsic risk tolerance or your loss tolerance. We'll help you create a plan.
And the first thing I want to assure you is that you are in a very large boat with a lot of other people who are behind the curve. We've all started late. I could have started when I was 18 building up wealth. I did not. Somebody asks about the place of life insurance.
Well, if you don't have an estate, life insurance will create an estate. If you do have an estate, life insurance will protect the estate.
Life insurance has a role and I'm a life insurance professional advisor in that sense. And there may be a place for life insurance.
And if there is you need to understand how it works, why it works that way, the track record, the history, the way it plays out in a platform of economics.
And you need to understand that virtually every rich person in the US virtually every Fortune 500 company in the US, virtually every leading bank in the US all have access to huge amounts of equity building cash value life insurance. And so life insurance may have a role in your financial path. So creating an estate, protecting an estate, and then finally distributing an estate.
So we're not going to go into the how to. We're never going to go into the how to.
In a generic podcast or conversation over the airwaves, solutions come when we sit down and go through an inventory with you and ask you lots and lots and lots of questions pertaining to where you want to go, how you want to take your family down a financial path, and what you want to provide for your future, whether it's a lot or a little, whether you want to include charities and causes and so forth. So there's a lot of pieces, parts. The how to will always come later.
What I want to do is encourage you to start thinking about how you'd like to approach it and start to get your brain wrapped around the fact that you must continue to build an increasing pool of capital that you will control throughout your lifetime. Hope we can help you with that and I hope you'll Follow us Make youe Wealth Work Podcast.
