Associating With The Right People – Episode 265

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[00:04] Welcome to the Prosperity Podcast, fresh alternative personal finance talk for independent thinkers who prosper outside of Wall Street. Here’s your host, bestselling author, Kim D.H. Butler. Welcome to the Prosperity Podcast. Today, we’re going to be talking about putting yourself in the right conversations where money works, where it thinks, where it acts, where it lives. I’ve got my co-host here with me. Kim, are you there? Yes, Spencer. Looking forward to this. Yes. This is a fun conversation and I’m secretly going to say, I hope my wife isn’t listening to this episode because I’m going to give something away. So we had our anniversary a couple of weeks ago and we decided to go out for a lunch

[00:56] date on our anniversary and we picked arguably the nicest fish and seafood steakhouse in town. And it’s nothing out of this world expensive, but it’s definitely not a run-of-the-mill restaurant. So we go in, we take our table and right next to us were three gentlemen speaking. And I’m doing my best to look my wife in the eyes and pay attention and have her not realize I’m actually listening to the guys next to us. And here this older gentleman, he must have been a CFO or an accountant because they were in deep conversation talking about creating different types of corporations and setting up trusts and foundations. And I just was hanging on to every single word and my wife didn’t realize, but I

[01:57] conversations and one, I was amazed because it’s a different conversation that you hear on most podcasts or what you read in books because this was unfiltered. And two, they were actually saying a lot of things that are very similar to what are being taught in the prosperity movement. So our conversation between Kim and I, before we hit that record button was, we need to talk to listeners and let them realize that they need to put themselves in the right place to hear conversation, to hear this truth. And this podcast is one of those places where they can get it. Kim’s books is another place, but also hanging around with the right people. Did I sum that up pretty well, Kim? Absolutely. And it is interesting because I have known for a long time that prosperity economics

[02:53] was nothing that I created. It was just basic, good thinking around money that wealthy people have done for centuries. And it has some basic economics behind it. So tell us a little bit more about what you picked up on as you were multitasking and you’re listening. So here it was in this conversation. One, they were talking about different corporate structures and the accountant was saying, OK, so as you set up this entity, he said, here’s what you need to do with your entity. And he said, you’re going to have a cap on how much money you’re able to move every single year within that. So he said, you need to be very prudent and leave enough operating capital in there or you’re going to be flagged.

[03:38] And he goes, then what we’re going to do is there’s a separate type of corporation. And with this corporation, we’re going to need to bring in my friend to set this up. And he mentioned his friend was one of the hires up at PwC, which is called PricewaterhouseCooper, and it’s a leading accounting firm. And so he said, we’re going to bring him in to set this up so that you’re not audited and things are worked over. And he goes, then with additional capital that we’re managing, said, we’re going to put that capital into these investments. And it was so eye-opening because he started talking about where he was putting his personal capital and then where he’s putting clients capital or I should say, advising them on that.

[04:27] And it was very much in line with the movement. And it was just insightful because what happens is when we go on Google or read a newspaper or a magazine, we’re hearing all of the wrong information. We’ll hear about stock market. Stock picks or a mutual fund or maybe a bubble real estate market. And nothing they said was around any of those topics. Well, I also picked up on, as I’m sure you did as well, a couple of the verbs that got used. And that’s the idea of moving money. And move is the sixth of seven principles of prosperity. And other than typical advisors talking about moving money from one account to another, which is not what we mean when we talk about the word move, it is amazing to me how rare we hear this as an idea and

[05:25] what move means inside the prosperity economics movement, not the movement word, but the movement of money, not the movement as in the nonprofit 501 C3 that we’ve set up to run the prosperity economics movement, but the actual movement of money is something that you can get to automatically happen by a simple check of a box on many accounts. And so, yes, sometimes you have to move principle from one place to another, but the concept of moving money through an asset or through an entity, which, you know, of course we don’t know exactly what these gentlemen were talking about, but we can surmise that they were talking about moving money through an entity and picking up some benefits by doing that.

[06:13] And so that concept, the ability to move money through, again, can be done automatically by the simple checking of a box and is such an important aspect of getting our dollars to work more effectively and efficiently for us. And yet most financial advisors don’t bring it up. So I can imagine this was hugely gratifying for you, you know, here you are as a supporter and a player inside the prosperity economics movement. And yet all of us sometimes question our principles. Like, am I really doing the right thing with my money? And what a nice way to get confirmation of it. You know, it really was. And it’s so fascinating because this isn’t the type of conversation you hear at your typical fast food joint.

[06:59] It’s not going to be the conversation that you hear inside of maybe the beauty salon or something like that. This was higher level. And absolutely, it was rewarding to hear those principles. Now, in a moment, maybe I’ll share a couple of the things that the specifics of what they were talking about. But I want to get back to the principle of associating with the right people to get the right information at the right time. Is that what you would say has helped you out with the prosperity and movement? Absolutely. Anytime we want to grow, we want to be seeking conversations with either people that are also looking to grow. And I don’t mean just grow our money. I mean, grow in all kinds of ways.

[07:47] Yes, we want to grow our money, but we want to grow our brains. We want to grow our physical abilities. We want to grow our capabilities, our emotional capacity, et cetera. So we want to be conversing with people that also are seeking growth because their brains are turned on. They’re interested. They’re reading. They’re listening. They’re watching. They’re seeking this kind of information and, or in other words, both, we want to be talking with people that have already gone that path or are maybe two or three steps ahead of us on that path. And it really is interesting when you pay attention to the conversations that you are having. Sometimes these are literal conversations, like with a lunch

[08:28] partner as you identified. Sometimes they’re conversations you overhear, and sometimes they might just be conversations in your own head with yourself. Seeking good inputs for those conversations is something that we should always be interested in. It’s particularly funny to me that you brought up the beauty salon because one of the reasons I go get my hair done on Mondays is because the particular place that I go is very, very empty on those days. And so I don’t have to listen to the typical conversations that occur in a beauty salon. I have a very entrepreneurial hairdresser and she and I have whatever conversation we’re going to have. And then when I have to sit down under the dryer, I pull out the

[09:13] book that I’m reading on my Kindle and I put my focus there. And so being very intentional about the conversations that we’re having and conversation is not always verbal. Sometimes it might be, are you strolling through Facebook or are you reading a book? You know, that’s a choice around conversation and which one you’re going to have. Absolutely it is. So I think that as we are starting to wrap up the conversational side of things, one of the important phrases that stuck in my head from a mentor I had, which is we become the five people that we spend the most time with. And so it’s important for us to realize where we are investing our time. Now, if you don’t have five people that you’re regularly spending time

[10:04] with, make the podcast, make us one of those, the two of those five people or Kim, one of those five people, or you can make one of your favorite authors, one of those people. So you can change your situation that way. Now I want to get into a couple of the specifics of the things that they were talking about in that conversation. But before I do that, I’m going to ask, and it’s going to lead perfectly. Hopefully my question is poised perfectly, which is Kim, what are some of your favorite alternative investments? Just give us general categories. Sure. So I love life settlements. Those are senior life settlements, not viaticals, important difference. I love bridge loans, which are typically a real estate base where you

[10:51] as the investor are lending money to somebody that has real estate property and you’re getting interest on it. And then you’re getting your principal back. I also like oil and gas and that whole space. There’s land leases, there’s direct investments in oil wells, et cetera. And then there’s also direct real estate ownership, which not everybody can pull off, but the actual owning of a apartment building or a single family home or what have you that you’re going to do is rental real estate. Those are my favorite alternative investments. Perfect. So the reason why I asked, and we didn’t rehearse this before audience, so I just want you to realize that the reason why I asked Kim, what are her favorite alternative investments is because in their conversation, they

[11:37] were addressing the same ones that Kim talks about on the podcast, which is pretty neat. So they were addressing the importance of putting capital into bridge loans and that senior accountant fellow, he was saying these bridge loans, you want to be looking at that because it’s a shorter term investment and it’s got a really good return on your capital and it gives you a lot more control for the short term as you’re setting up these foundations. So I thought, check, okay, that works. Prosperity check plus one. Then he was talking about the other real estate investments and there were two specific sectors for the real estate investments of properties that he was talking about. One, he was talking about the workforce housing being one of those

[12:27] marketplaces to definitely put money. And the second was light industrial. Well, Kim, do you happen to be using an alternative investment person that works with workforce housing? Absolutely. I think in many circles that would be called an apartment building. And we definitely have those as alternative investments. They’re one of our favorites because the workforce needs a place to live and they’re always going to pay their rent for the most part. So we find that to be a very efficient and effective environment. And we also just recently have been exposed to more of the industrial arena for commercial real estate in terms of an ability to do investments there as well, not for every client, without a doubt.

[13:13] This is true of all of these, of course, there’s sometimes accredited qualification that has to occur, but sometimes not, depending on which alternative investment that we’re talking about. And I think the most important thing is that people open their minds and learn and you inadvertently, or maybe you did it on purpose, used one of the other principles of prosperity in sharing this accountant’s recommendation. And that’s control. Control is principle number five. And we’re big believers in people maintaining control that doesn’t always mean a hundred percent, but as much control as possible. And most of these alternative investments certainly have a lot more control over them than the typical stock market environment.

[13:53] So it was so wonderful to one, have lunch with my wife to, to hear the conversation of those gentlemen, three listeners, please don’t tweet me or email and let my wife know I don’t want to get busted. She still doesn’t know. But as a action item for our listeners, Kim and I are having these conversations and we’re staying on top of the most current information. And as Kim mentioned, the different alternative investments, if that’s something that interests you reach out to Kim at helloappartnersforprosperity.com. For me, it was incredibly eye-opening. I’ve been a business owner for my entire working life and to be able to hear gentlemen that are further down the path of age and also experience and

[14:45] success, it was so, let’s just say, rewarding to hear that they’re following the principles that are being taught every single day. So it was, it was a treat for both occasions and I absolutely loved it. So for listeners, if you do have additional questions, please reach out to Kim at helloappartnersforprosperity.com. Thank you for listening to the Prosperity Podcast. To take control of your money and have it work for you, visit us at partnersforprosperity.com. If you liked this episode, make sure you subscribe and leave a review.