The WEALTHY Never SELL Their Best ASSETS

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2:38Cars.com has the tools and expert advice to help you find your dream car. Their advanced search filters allow you to explore 2 million new and used cars so that you can find the perfect car. Start your search with cars.com. Where to next? I do want to talk about, we made an Instagram post that got a lot of traction. So take a couple of minutes to kind of just explain it. I said this a few times, but I think it's really important for people to understand. One of the things that wealthy people do when you're accumulating your assets, a lot of times people are like, all right, well, what's the point of having wealth and investing?

3:13Because I always said, my personal goal is to never sell an investment. And it's like, well, that's kind of counterproductive because what's the point of having investments if you're not selling it because you're never actually going to benefit from actually needing the money. So one level is that if you never need the money, that's a good thing. But another level is that if you need the money, you don't necessarily have to sell an investment to access the capital. So we put it in a post, just briefly explain it. So talk about HELOC, right? Which is a line of credit from a house. And a refi is a little different because a refi, you're actually refinancing, you're having a new mortgage put on the house, but you're still able to get money out, right?

3:56But the HELOC is a line of credit. So if you have$400 ,000 and you only need 50, then you only need 50, then you can get another 25. So long story short, it allows you, the refi and the HELOC allows you to tap into equity that's inside of the home without selling the home. So you still have the asset, right? Then you have the security back loan, which is when you borrow from your stock portfolio. And once again, similar to the HELOC where you fill out an application and they'll say, okay, you have a million dollars in your stock portfolio and we'll give you $500 ,000. Let's just get a more realistic number.

4:35If you have$500 ,000 in your stock portfolio and they'll say, okay, we'll give you$300 ,000 line of credit. and then that$300 ,000 line of credit is like a loan and like a 6 % interest rate, let's say. And now you can tap into$300 ,000. The benefit of that is that your portfolio still stays at a half a million dollars and it still grows and it's not depleted as opposed to you cashing out$300 ,000. Now your portfolio goes to$200 ,000 and then you pay capital gains tax. So yes, you are paying interest, but most of the time the interest is going to be less than the capital gains tax. Yeah, and it doesn't kill your compounds.

5:13Right, exactly. So loans, that's one of the keys that the rich utilize. 100%. So that's why I'm not a fan of people saying that debt is all bad because when used properly, it can actually be a powerful tool because you don't pay taxes on debt. You don't pay taxes on a loan. You don't pay taxes on a loan. So that's vitally important to understand when you're looking to build wealth is that you can still grow wealth without touching it, taking money from it, paying it back at a relatively lower rate than if you would have taken it, sold it, and then had to pay taxes on it. Then even art, and we talked about this art thing before, the art thing is very important to understand because also what art is that if you put it in the office, you could get a tax benefit.

6:02So what people do sometimes is they'll buy art, crazy art, they'll put it in the office, and then it becomes tax deductible and then you can take a loan from that. So some people will be like, why would somebody have a$100 million art collection? Why would somebody have a$50 million art collection? Why would you have that? Like, that's just a waste. Well, now if you have a$10 million art collection, you could potentially pull$5 million from that tax free. Now you start to look and now you understand why all these guys buy art and collectibles. I'm on that. And even one, even one. Yep. you know, anything like that.

6:38And then of course, life insurance is something that, you know, if you have cash value inside of a policy, whole life, universal life, you can borrow from the cash value and same principles apply. So, finally important to understand this because, you know, that's something that not a lot of people are fully aware of their options and they need money and then they just sell their home or they sell their stocks or they sell the art or they sell, you know, whatever. right? But it's like, you don't necessarily have to go down that pathway. It may not be the most efficient manner for you. And your 401k, you can take a loan from your 401k as well.

7:22That's a lot of game. Yeah. Shout out to Troy Carter. Probably one of the finest collectors of art that I've had the privilege of speaking with on a personal level. And shout out to Rich Paul. They actually put us on game when we went to the Clutch office when we were just looking at the art. We connect nothing but black artists. I'm like, oh, that's fly. But then you understand the business side behind it. It's like, oh, wait. Each office has a painting in it. This is an office space. This is an asset class that I can now, again, use as leverage. But I think more importantly, figure out how many different asset classes you can have.

8:01Like you said, collectibles. I told him the other day, I'm like, yo, I'm collecting cards right now. He's like, wow. I'm like, I'm just trying to find as many assets. It's a hot space, bro. You know what I'm saying? Like I watched a$16 million Pokemon card be sold. I'm like, wait, hold on. Let me go into crates. And I'm like, oh, wait, I got some valuables here. So it's about what you can have in terms of your asset allocation. That's what it's about. Obviously we got stocks. We have some real estate. We have some other things that we're going to announce shortly, but any collectible I can get my hands on that can appreciate over time have value and actually use as leverage you got to do it man especially in times of duress i don't want you guys to do this to go overseas but shout out to my guy zane um in jersey he just went to japan to one of those card shows and he was telling me about the roi like some of those cards you're getting 70 extra turn on crazy like interesting um so playing all asset pools but do this in times of duress or like get with a tax strategist to kind of plan this out don't just do this because you want to go buy a car and put it on instagram i'm begging you because a lot of y 'all gonna be like me i too i had to trade the options and then i got the stocks now i got a loan i'm like bro you didn't need to play bumper cars with two g wagons on ig be responsible please because you know they go shot they're gonna blame you so i gotta make sure and you can't take a loan from your um portfolio if you have options in it so that's why it's good to keep your options separate from your long term because um if you have it co-mingled they won't give you a loan on your portfolio if that portfolio has options in it but if you have two different accounts one for options one for long term then you can take a loan against your long term so that's some game if you're interested in you know just having it but yeah you can do what you want with it but um that's why people because like i said a lot of times people just say things like, look, I'm going to buy this$10 million.

9:54You hear celebrities and it's like, they never really fully explain why they're buying so much art. But it's like, oh, now you're okay. You buy a$10 million art. You put it in your office. It's tax deductible. Now you can take a loan. Now you can pull out 5 million tax-free. Now it starts to make a little bit more sense. Dryness is one of the biggest challenges for curly hair. And many products, they clock out after wash day. The new Ultra Moisture Collection was literally designed with our hair in mind. Curls, coils, all of it. Powered by baton oil and Jamaican black castor oil, which means the science is actually doing the work.

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