Oct, 2024

Top 5 Expenses That Are DRAINING Your Wealth Bucket

These wealth draining expenses are essentially holes in your investing income bucket! Multifamily investing success Rob Rowsell advises how YOU can cut expenses and keep filling your wealth bucket!

Five Wealth Draining Expenses You Should Know About!

Rob lists his top five wealth draining expenses in this video. Here they are, in order:

Expense #1: Ignorance

This may be the easiest trap to fall into for investors. When you have succeeded in one field with minimal effort, you likely will become overconfident. Remember, just because other past endeavors came easy to you, that does not mean that multifamily real estate investing will. This path is a lifelong pursuit, and you will find it to be both complex and competitive.

Expense #2: Taxes

Next to ignorance, nothing can cost you more as an investor than taxes can. “Tax Drag” as Rob refers to it as, can really poke holes in your wealth bucket. Conversely, you can plug those holes legally with the help of your accountant. When you employ the strategies your CPA recommends, the money you save in taxes will count as a big income stream! Remember, the US government has placed many tax incentives in place for real estate investors. Maximizing your wealth depends on finding and employing those incentives.

More Wealth Draining Expenses – Expense #3: Vitality Number

How could your vitality number be one of these wealth draining expenses? If your vitality number (cost of living) is too large, you are flushing cash down the drain. Your parents told you to live within your means, but Rob says live within your values! The alternative is just vanity. Get out of the habit of spending too much today, so you will have a comfortable lifestyle after you retire.

Expense #4: Fee Drag

Accountants, financial advisors, and coaches are crucial to our wealth building journey. However, it is important to periodically audit their services. Are you paying your wealth strategy team too much in fees for what they bring to the table? Keep your eye on the ball, because what you are paying them in fees could be taking a huge chunk out of your wealth bucket. Rob’s tip: insist on meeting with your financial team members via your own Zoom account. Record every meeting, and make sure you integrate the Fireflies AI note taking service with your Zoom app. This way, every piece of advice they give you is both on video and in writing, saved in folders for you to review later.

Expense #5: Inflation

In today’s economy, inflation is on everyone’s minds. The cost of goods and services has gone through the roof lately. With that said, make sure you add 10% to your Vitality Number. Don’t get caught lacking when it’s time to cash out and retire, because this trend will likely continue.

Don’t Fall To Wealth Draining Expenses! Join Our Multifamily Real Estate Investing Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Inner Circle Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!

Sep, 2024

4 Principles To Reduce Tax Drag

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Successful Multifamily Real Estate Investor Rob Rowsell is here to explain the answer to a burning question. How can YOU can cut tax drag that is sapping the returns from your investment portfolio. Do you want to invest your money wisely? Then you need to take the time to reduce your tax expenses. That is a key component in any multifamily real estate investment strategy. Watch, learn, and then apply this knowledge. Then, you’ll start saving on your precious investment taxes!

Cut Tax Drag On Your Investments Safely And Legally

Rob starts out by explaining that there are a few major expenses that we all want to avoid as investors. Tax drag is way up there on top of that list. There are just four key ways that our favorite multifamily magnate Rob Rowsell recommends for all investors to cut tax drag:

Choose Structure Over Deduction

First of all, you must make sure that you will always pay yourself tax efficiently on payday. Do you earn a W2 income working for a business that you own? Then your CPA will tell you that you must pay yourself a typical salary range for that position. However, you will want to pay yourself based on the low end of that salary range. That way, you will pay much less in both your income and your payroll taxes. If you are a smart business owner, then you should be able to afford to live on that smaller salary amount.

This practice of paying one’s self tax efficiently is a key component of tax rate arbitrage. The concept of tax rate arbitrage means you use different types tax rates within your business in order to lower your overall tax bill.

Finally, you will need to make sure that you will plan your exit before you go in. This means that you will decide the proper legal entity for your business, such as an LLC, S-Corp, or C-Corp. None of these corporate entity designations are wrong in and of themselves. You must decide which one is the right choice for your specific industry and your intended pursuits.

Cut Tax Drag By Investing All Of Your Taxes Efficiently

Without a shadow of a doubt, savvy tax planning is the lowest risk way for you to immediately boost your investment returns. Rob repeats this important mantra often: saving on your taxes will create another income stream! Rob has saved well over $250,000 in a single year, all because of his CPA’s savvy tax planning strategies.

Most of the time, you will want to put your long term capital growth investments in your taxable accounts. Your ordinary income cash flow investments, on the other hand, should all go in your tax advantaged accounts. A Roth IRA account is one example of such a tax advantaged account.

Last of all, in order to invest tax efficiently, you should leverage your unrealized gains so that they will compound tax free. Your unrealized gains might include the value of your property increasing after you purchase it. Perhaps you bought a business and then you increased the income that it is generating. You are not taxed on that business income. That way, you could take out some low interest loans from your lender against those numbers. You could use that money in order to scale your business, so you can realize even greater success!

Pay With Your Pre-Tax Dollars

Rob’s third principle to cut tax drag is that you should pay your expenses with your pre-tax dollars. What does that mean for all of us investors? Make sure that you will push all of your legitimate business expenses into your business. When you do that, then you will earn your business an automatic discount. Unlike your employees who are paid and then taxed, an LLC business owner can pay their expenses before they are taxed on their earned income.

Plan BEFORE You Play

Finally, you will need to plan what the tax impact will be of each and every potential investment that you intend on making. Once you reach Rob Rowsell’s high level of real estate investment savvy, you might just know by June what you will pay in taxes at the end of the year! That is one of the many advantages of regularly consulting with an experienced, hard nosed CPA on your investment plans.

Just make sure that you meet with your CPA in order to plan your tax strategies regularly. Keep them in the loop as early in your planning process as possible. When your CPA knows all the machinations of your plans, they can stop you from making costly mistakes. Many plans can change when you are drawing up investment strategies. Whenever your plans take a left turn, call your accountant immediately, so you can make the necessary adjustments.

Join Our Multifamily Real Estate Investing Community

Do you own your own multifamily rental properties? If not, do you plan to do so one day? Then you need to consider joining our online discussion group, the ATL Inner Circle Community! Each month, Rob Rowsell will teach you what you must do in order to build your wealth in the multifamily real estate business. It’s not as easy as it looks from the outside! Property taxes, liens, and costly legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! So sign up today!

Feb, 2024

Shocking: Why The Wealth Bucket Model Retirement Plan FAILS!

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What you don’t know about your own Retirement Plan might just shock you! Most American workers invest in a traditional 401k Wealth Bucket Model. However, that just may not be right for you, the savvy investor. Think about it. What if your bucket of money runs out before your retirement years are over? When you rely solely on that bucket of money, the ensuing expenses can drain it over time. Those funds could dry up before you pass away, and then you may have to go back to work. Definitely not what anyone wants in their twilight years. Read on for further explanation and a much better way for you to save for retirement!

The Wealth Bucket Model Retirement Plan is Broken.

Just like Steven Covey’s book The Seven Habits of Highly Effective People outlines, we will begin this essay with the end in mind. Although small details will vary between us, we all want the same thing out of life. We want freedom! More specifically, we want the time to do all the things that will fulfill us. Hopefully, we can make that time before we are too old to actually enjoy them to the fullest.

Rob outlines the means to this system as your Wealth Operating System, also known as your CORE Fund. This fund will form the base of your financial freedom. Eventually, your CORE Fund should start to generate Horizontal Income, totaling 1.3-1.5 times the amount of your Vitality Number.

This is how Rob Rowsell encourages the members of his financial community to approach their retirement planning. However, almost every American will foolishly lean on a Wealth Bucket Model. We will explain that model next.

What Is The Wealth Bucket Model, And Why Should We Not Use It Exclusively?

What is the big picture that we want to paint about the Wealth Bucket Model? Most of us American citizens will contribute regularly to a 401k retirement fund throughout their career. There is absolutely nothing wrong when you use a 401k fund as a nest egg. However, when we rely on it exclusively, then we run the risk of running out of money before we are ready. We may have to go back to work in order to pay our bills. Rob outlines more below on the biggest expenses that are holes in the wealth bucket model.

Ignorance Is The Number One Leak In The Wealth Bucket Model

When we move on from our businesses, most of us will inevitably want to try new endeavors. We often make the mistake of thinking that our new ventures will come just as naturally as our pre-retirement ones. Many a successful investor has fallen prey to this trap. If you insist on investing funds in a new business or property, then you have to do your homework! Make sure that you partner up with some trusted experts in those fields.

Taxes – How Tax Drag Drains Your Wealth Bucket Model

When you reduce your personal Tax Drag, it can create a huge income stream! Rob preaches this point again and again to our community, and with good reason. Does your CPA recommend ways that you can legally reduce your tax burden? Well then, do it! Then, you can invest the difference in assets in accounts which will return compound interest.

Find Out What Your Vitality Number Is

Your Vitality Number refers to the annual cost of living which you want to live within. You should always live within your values, and not within your vanity! This is the biggest number that you can possibly get wrong! You want that trip around the world that your favorite billionaire influencer took on Youtube so badly. Geat real! You are not at their level yet. Unless you wait until you absolutely are, then you will blow your Vitality Number right out of the water.

Avoid Fee Drag By Consulting With Wise Financial Advisors

The task of employing wise advisors is mission critical. However, you need to keep a close eye on what they are charging you. You should also keep evaluating it annually. At some point, the value may not be there anymore from their side. Maybe they are not working as hard as they did in the past in order to achieve the results you need. It is so important to shop around, so you can avoid suffering Fee Drag from these providers.

Inflation – The Silent Killer of Your Wealth Bucket Model Investments

You do not need a wealth expert’s advice in order to know that inflation is bad. In fact, it can be a real wealth killer! Keep this in mind as you are calculating your personal Vitality Number. Create a written or printed report of your own Personal P and L. Then, you must examine it in order to find out what that number is. When you stick to that number, then you can never go wrong.

Join Our Community

Do you own multi-family properties? If not, do you aspire to do so one day? Then you should consider joining our online discussion group, the ATL Inner Circle Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!

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