100% Death Tax? – Episode 530  

This transcript was auto-generated and may contain errors.

[00:01] Welcome to the Prosperity Podcast. Listeners, welcome to the podcast. This is going to be an interesting one. I don’t know if you’re going to agree on this one or push back really hard. It is the title, 100% Death Tax. I need to give you context, but when you hear that at first, what do you think before I give you context? I think it’s a marketing gimmick that somebody’s used because they’ve created some kind of solution to the problem. Okay, so let me give you context. I saw this video a while back, like, I don’t know, a few days ago, and I thought this is one that we have to do a topic on because it was a stop yourself in the tracks kind of topic. So to give you context, this comes from a gentleman named Alex Hormozi.

[00:52] He’s a brilliant business owner and marketer. He’s completely self-funded, self-started, and he’s been able to build an empire somewhere in the neighborhood of, I don’t know, 150, 200 million dollars. So it’s pretty decent, and he says he would love to see a 100% death tax for entrepreneurs because, and there’s the piece, he goes, because they would then be willing to spend their money, they’d be willing to be all in on their business, knowing that they’re not leaving anything on the table. Now, from that context, what do you think? Well, it’s so funny. As soon as you said 100% death tax for entrepreneurs, I was in. And here’s why. If you look at some of today’s very wealthy entrepreneurs and I’ll name names

[01:50] because they’re in the public and this information is very well known. Warren Buffett, Jeff Bezos, Bill Gates, and I know there’s another one that I’m thinking of, but I can’t think of the name right now. They have shifted their thinking from the true entrepreneurial thinking that got them where they are today into a more, I’m just going to say opposite of entrepreneurial thinking that is where they are today. And here’s the distinction. What got them where they are today is investing. It is spending money. It is experimenting. It is trying and failing and trying again. It is winning and learning. It is all of the things that our society typically knows is entrepreneurial, but now they’re in this weird space of wanting to control

[02:49] politics, wanting to control their wealth in a way that is very generous because of the whole giving pledge thing that they are involved with, but it’s not in a growth orientation. It’s more in a governmental control orientation, whereby those that have, quote, deserved it, got the wealth as opposed to those that have earned it. And we’ve talked before about the distinction between those two words. And it’s very sad to me. And so if there was a hundred percent death tax for entrepreneurs, what you indicated there would occur, which is keep learning, keep failing, keep experimenting, keep trying things, keep solving problems. That’s the definition of an entrepreneur. I know one definition is to take lower resources and get it to higher

[03:47] resources, but entrepreneurs solve problems. And we mentioned Peter DiMandis on our last podcast. It’s one of the things that I love what he’s doing with his X prize work and the hero prize now that is also available is they are creating money to solve problems so that people will try to solve the problem. And what’s so cool about it is sometimes people outside of the industry solve the problem and win the prize. And people tend to spend more money winning the prize in the experimentation than they do actually in getting the prize money. And it’s so cool because then a business is created and then the solution is there. So I’m actually pretty for the idea of creating an environment, whether

[04:34] it’s a hundred percent death tax or something else, where entrepreneurs will keep experimenting. Yeah, you touched on the piece because when you were mentioning Warren Buffett, Warren Buffett and Bill Gates and these other people, a part of me as like, oh, like it just hurt because I see, and this is my own judgment. I see what they’re doing. And I think, okay, you’re playing politics. Like it’s because that’s what the world wants to hear or they see or whatever it is and it’s positioning. And so, yeah, we’re on the same page that these entrepreneurs, you know, we should never, and I love your language of retire be taken out of service. However, the same piece we’ve built tools and we’ve based our work on

[05:28] principles so that it sets up better for the next generation. So, you know, having a proper strategy in place and having plans, meaning insurance plans in place to be able to help the next generation, instead of having to struggle as long, they’re able to get momentum faster. That’s great. Yeah. So how do you take this and how do we create a win, win, win situation of a hundred percent death tax knowing we’re not going to change that. But what do we do? Well, this is what we have written about extensively in the perpetual wealth book and the workbook and the family legacy game that all go with it because we’re trying to help families create an environment where that is occurring. And so if you have a family that has, let’s call it small means,

[06:28] they need to focus on their legacy being values, learnings, really not money at all. There might be a little bit of money. The thinking process that helped them as an adult, that needs to be their legacy. If you step up a notch to somebody of, you know, let’s say medium mean, so I might be thinking like maybe one to 5 million kind of thing. That person does have an opportunity to create an actual family bank. And we have the actual steps listed in the perpetual wealth book, whereby the family members, the younger family members can come to the family bank with ideas, typically business ideas, then borrow against that family bank and use that money to create the idea and then pay the family bank back so that it can be done again and again, and also for

[07:25] the next generation. And then when you take it a step further, let’s say 5 million and above, now you’re in a situation and I love this quote, and I do believe that I have heard this from one of the previously mentioned gentlemen, whose things I do not 100% agree with, but this particular thing I like, which is I gave the next generation enough to do something, but not enough to do nothing or something to the effect of maybe it’s I gave the next generation enough to do anything they want, but not nothing. So in other words, how I take that is there’s money there to pay maybe the bare necessities of life, bare bare necessities. In other words, not enough money to do nothing because doing nothing

[08:13] is the death of a human. If it’s not the actual literal death, it is the psychological and social death of a human. It’s the saddest thing in the whole wide world. And so these families that do have money to pass on from generation to generation, making sure that the values and the thinking and the learnings get passed on with that is a paramount importance. And so this brings us full circle to some of the other podcasts that we’ve done recently about the app and bank account called gravy stack about the app and bank account called currents. And I view currents for adults, like gravy stack is to kids and all three generations. So that’s where we can really get that. When, when, when can be involved in those two environments in such a

[09:08] way that values get passed down, learnings get passed down, and either a little bit or a lot of money gets passed down, but again, with the values and the learnings and that’s the critical part. Yeah, absolutely. So what’s really interesting here is that, uh, if we take the a hundred percent, uh, and we’re just going to assume that that happens, we can today set up our values, set up the way that we think we can set up the way that we interact and the things that we pass down, then we can also come to the other side and we could start as small with the kids on gravy or ourselves with currents. And then as we tie into the previous episode, we can have someone help us transform our thinking. So it’s not just us sitting there and thinking logically, like what

[10:08] that typically logically looks like. I would assume you, you’ve kind of seen it with people that maybe it’s a family that’s making 80 grand a year and then they say, well, we can work more and next year we can make a hundred and then in five years we’ll be at two 50 and we’ll put a little bit in here or something like that for a, I’m talking normal middle class. Is that kind of the logical thinking versus transformation? I’m thinking, could you maybe give us two different tracks really quick? Because my goal is, is so that listeners can say, oh, I get it. Like I have assets right now and I can take action right now. And I can get someone to help me transform as well. Absolutely. Emma’s wanting to weigh in on the thought.

[10:55] So the idea of being transformative with dollars and thinking is the space that we want to land in. And the beautiful thing about using life insurance to make the transformation with dollars is that it’s a little bit of money every month. So whatever a little bit is to you, it’s not some big, Oh, I have to create a half a million dollar minimum in order to do this thing. I only have to contribute a little bit every month and I can make this space start to build. I think the harder part frankly, is getting clear on the values and the learnings that you want to transfer. And so one of the things that may help you is I have one YouTube channel where I’ve done about 20 different values, videos, and they’re just

[11:50] little two, three minute, here’s my value, here’s why, here’s a story that supports it. And so you might turn to that as an example of a way for you to share with your family, what your values are, because that is an incredibly helpful thing to pass on to the next generation and the next generation, especially grandparents to grandchildren. Because once you’re a grandparent, your adult children are maybe not as open-minded to learning from you. You know, that’s just a thing that’s in our society. When, when our children get out in the marketplace, they have their friends that they’re learning from and their coworkers, but the grandparent to grandchild learning space is incredibly alive. And so gravy stack actually has some fabulous brain gigs that can

[12:50] support that and, or you could do values videos or anything like that. So that’s a track you asked for two tracks, but I really believe that that’s a track that any family of any means can do. And then to circle back to the first track, which is the monetary track is just start learning about the life insurance arena, figure out what amount of money you could contribute to it monthly. We’ll figure out the rest because the third aspect that you mentioned is to have a guide come alongside you and support the structure and help you create the legal environment. I’m not talking to an attorney. I’m just talking about a guy that’s been there, gone through that and provide some of the more helpful tools like these apps that we’re

[13:38] referring to and the lists in our book and other things like the family legacy game that facilitate the moving of values and money from generation to generation to generation. So good, so good. I am going to make sure that we put the link to those YouTube videos inside of the show notes of this episode. And one thing from my insight is that you’re making this a lot more simple. You know, it can tend to be overcomplicated and you’re making this simple. So thank you for doing that for all of you listeners out there, rather if you’re entrepreneurial or not, this thinking can be applied anywhere and be absolutely transformational. Thank you, Kim. Thank you for listening to the Prosperity Podcast.

[14:39] To take control of your money and have it work for you, visit ProsperityThinkers.com.