Hidden Assets – Episode 673

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[00:01] Welcome to the prosperity podcast Prosperity thinkers we’re going to be talking about hidden Assets now this one is a little bit of a curve ball So i’m going to set the stage of hidden assets and i’ll have to talk about my 17 year old son So he started a business And it does junk removal. He loves it. I’ve never seen a kid more proud and more happy to put on a t-shirt and go out and haul things and It’s amazing as we’ve talked about the business at the end of that life Meaning maybe he’ll run junk hauling business forever and maybe he’ll only do it for a season But there’s an asset there And so I said there are some hidden assets in this business that you may not recognize and for example Google reviews that’s an asset the website. That’s an asset the systems the processes. Those are all assets kim

[01:00] You meet with people with families and talk about finance you talk about mindset you talk about all of these things There are hidden assets that you see that most people don’t so I want to talk about those because Rarely people get to peek inside your head with something like that Well, you brought up one of them and that is mindset and thinking and so that is an asset that every human being owns and can grow And literally get unlimited returns on That ability to think and apply what you have learned and have your brain on and observe things and be able to provide value and give of your knowledge Is truly an unlimited return asset and it will exist your entire life and it’s completely portable

[01:52] Like you could drop somebody that thinks this way in any city of the world With nothing and they I mean clothes would be helpful, but it would be fine Like they would be able to survive and thrive right? It wouldn’t just be about survival. Maybe the first night and so that’s fun and then I think too the intellectual property space is a little bit more of a Legit line item on a business. I mean not everybody knows how to put this on a business balance sheet But my friend tony does and i’m so grateful for him So tony diangelo, which is the intellectual capitalist that’s his company Taught me how to put my intellectual property On my balance sheet and then how to move it into the cash flow system, right?

[02:40] That’s what we want balance sheets to do our assets to turn into cash flow And that’s not an easy thing in the intellectual property space And right now it’s simple, you know trademarks and that kind of thing. Of course some businesses have You know, they’ve gone all the way and gotten other, you know registered marks and patents and that kind of thing but Intellectual capital or intellectual property is truly and that’s what your son has right? He has systems He has processes those when documented become intellectual property And so they’re a hidden asset too. And then there’s another one and that is our network our relationships, right? So like I have clients in all 50 states if I got dropped off in a city in one of those states and I had

[03:25] My cell phone with me I would just look up who the client is in that state and oh it might be a little far away But they would be closer than you know, somebody in another state Or if I have a client that brings me a problem that I don’t know how to solve My network knows how to solve it. There’s somebody somewhere in my business network That knows how to solve it and then of course we have personal networks too You know, I mean who can I call when the chips are down and I need some pep talks You know, i’m human too Just because I wrote a book called busting scarcity mindset doesn’t mean that i’m never having to bust it myself and so my sister tammy branon of blueprint process, you know, she and I have a

[04:07] conversation every week about all kinds of things that are mindset related And that ability to bring to the table a prosperous mindset a can-do attitude a I’m not going to be afraid of this. I’m going to figure out a way to benefit from it mindset. That is also Priceless so you could call that I guess if you would you know your personal network your personal relationships That help you with that kind of thing and then there’s also the internal you could call it your soul or Your heart if you will your spirit, you know, whatever works for you around that realm That knows how to access your higher power or peace Or whatever it is that you need to be able to solve the problems If your friends or your sister or your you know, whoever that other personal

[05:01] Coach is or your favorite ai, right if they’re not available the internet’s down, you know The cell phone battery’s fried whatever it is what’s going on in here in your heart and in your soul that enables you to pick your chin up and Move forward and take a step and have a can-do attitude and not Fall into what’s the word these days mental? Something you know depression anxiety all of that kind of thing. I get it and you know, there’s people that struggle with that and sometimes there’s some chemical reasons, etc, etc, but The point is they can make a choice around that Mental decision that heart oriented that feeling if you will And they can choose another path That is a hidden asset These are a lot of really good assets that I think that

[05:56] Any of our listeners depending on the age, I mean if you’re in the car And this is grandparents You have something that’s applicable and if you’ve got grandkids listening, this is applicable And too often we think of assets that it can only be in the business world And it goes far Beyond that so let’s touch on a few other Assets that you have seen from some of your clients and You know families friends others like that So for example, and i’m going to use a really simple one and that michael just came across Which was when he did a clean out of a garage. It was an older person’s house There was this old looking washing machine and it was dusty and it was dirty and he goes This thing’s probably worth nothing

[06:50] But let me take a picture of it and find out comes to be An old copper tub that’s worth over a thousand dollars Hidden asset right there That’s great the hidden assets that you’re seeing families and people have Well Always there is something in people’s attics garages basements shops. You name it. I mean when we built our home We had my mother-in-law’s artist and she came and she said well, you got to have some art somewhere I said we have no art. What are you talking about? Well, you’ve got elderly family members. There has to be art I said, there’s no art. I don’t know what you’re talking about. She said well, let’s just ask Pop says oh, yeah, I have art up in my attic And we literally Decorated our home with probably 10 major pieces of art. I mean, they’re not worth anything

[07:40] But at least we had something on the walls, right? Nobody even knew it was there. Nobody cared that it was there that did know so that’s an example I love your copper tub and I mean how many times have we heard somebody takes a painting off a wall and there’s another painting behind it or You know somebody finds a safe that got buried in the backyard and there’s actual cash there. But here’s a fun one for you People’s life insurance policies now a lot of people especially that know me you’re going to think oh, yeah You’re talking about that life settlement thing where you buy somebody else’s policy. I’m not talking about that I’m talking about the fact that if you have whole life insurance and you have a death benefit and it’s guaranteed

[08:21] Because your own death is guaranteed Tying those two things together is an asset and you can utilize that asset while you’re living today if you know how it kind of goes back to That cash flow bridge that I talked about on a previous episode and there’s things like reverse mortgages, right? That’s another hidden asset Well people may not want to do a reverse mortgage if they don’t have the guaranteed payment from a life insurance policy Because what if the kids want the house and some people know that the kids aren’t going to want the house and awesome Then you just do the reverse mortgage and that solves that hidden asset but if you have the life insurance you can do A reverse mortgage and the kids still get the choice as to whether they want to sell the house because they have the life insurance

[09:05] That gives them that choice upon your death Same is true if you do a charitable remainder trust you have a property or a stock and it’s high capital gains You sell it to a charity they sell it and then there’s no capital gains on that And then you get income for life and the charity gets what’s left over That’s why it’s called a charitable remainder trust same deal Most people wouldn’t want to do that because it disinherits their family if they have life insurance Then that frees up that hidden asset to create cash flow Which is one of the most important things in an elderly person’s life I mean think about the 80 and the 90 and 100 year old people that you know Do they really want to be out working on their investments on the computer all day fussing with stuff?

[09:50] no, they want to be with great grandchildren or Sitting in a chair and reading their book or whatever it is that they do And so anything that you can do to take an asset and turn it into an income stream Makes that asset even more valuable. I was talking with my team today About these income annuities. So i’m talking about single premium immediate Annuities, they’re called spias spia single premium immediate annuity and it literally takes an asset off your books It is no longer an asset And turns it into a guaranteed income stream for life These are great when you’re in your 70s 80s 90s. I wouldn’t touch them with a 10-foot pole until then But when you’re in your 70s 80s and 90s, they are a very fabulous tool

[10:40] To take an asset and turn it into an income stream and we prove this a lot on our asset Flow calculator, right? How do you take an asset and convert it into cash flow? You know your thousand dollar copper tub That could be valuable to michael But maybe 20 bucks and i’m just using this as a simple example Maybe 20 bucks a month for whatever the math is at interest, right? Maybe that’s more valuable because maybe he had been wanting just as an example Maybe he had been wanting to pay for super grok or you know Private gpt or whatever that’s 20 bucks a month and he didn’t want to pay his own 20 bucks a month. Well He just got His asset he could convert it into cash flow and then his cash flow can buy his ai subscription that he didn’t want to pay for

[11:34] So there’s all kinds of things if you just turn your brain on That was so well said What we got to do is watch you riff for just a moment and the premise is this that If your mind is closed off You’re going to say well, I guess i’ve got a bank account. Oh, I guess there’s the stock market and whatever other thing else there is And when you turn your mind on all of a sudden opportunities are all Around and then your antenna is up your opportunities are around your network is alive. You figure it out kim This was cool. Thank you so much for sharing. You’re welcome Thank you for listening to the prosperity podcast to take control of your money and have it work for you Visit prosperity thinkers.com