Index

  • 1% rule, 195
  • 7 Habits of Highly Effective People, The (Covey), 9
  • 50/25/25 rule, 140, 142–143
  • 50% rule, 195–196
  • 60/20/20 diversity rule, 70
  • 501c3 acknowledgment letter, receipt, 136
  • 1031 exchange, usage, 147, 189
  • 2503(c) trust, 154
  • A
  • Above-average returns, guarantee (absence), 71
  • Acceptance, practice, 52
  • Achievement, impact, 41
  • Action, importance, 30–31
  • After-repair value (ARV), calculation, 180–181
  • Alternative minimum tax (AMT), 148
  • Amazon River, 61
  • Amended returns, deductions (examination), 136
  • Apple, Inc. (NASDAQ chart), 142
  • Appreciation, absence (broke belief), 14
  • Assets
    • creation, 77
    • creditor/lawsuit protection, 153–154
    • digital, 156
    • giving, 154
    • leverage, 179–185
  • Attention, improvement, 89–91
  • Audits, usage, 133–138
  • Augusta Rule, 133, 145–149
  • Average cart/ticket, 107–109
  • Average order value (AOV), 107
  • Average returns, guarantee, 71
  • Average transaction amount, increase, 107–109
  • B
  • Battery tender, 84
  • Behavioral control, exercise, 134
  • Belief. See also Broke beliefs
    • building, 19–20, 26
  • Beneficiary, trust role, 152
  • Be Your Own Champion (BYOC), 19, 25–27
  • Blueprint, creation, 19, 27–29
  • Bond fund, goal, 202
  • Bookkeeping, impact, 129–133
  • Brain
    • cognitive tasks, 88
    • emotional, reactive response, 53
    • impact, 5
    • loss measurement, 44
    • rewiring, 7
  • Breaths, taking, 54
  • Broke beliefs
    • appreciation, absence, 14
    • future condition, 11–14
    • scarcity, 9–11
    • wrong people, interaction, 15–16
  • Broke status, beliefs (impact), 9
  • BRRRR, real-life example, 184–185
  • BS, 56
    • beliefs, clearing, 31
    • calling out/avoidance, 81
    • examination, 3
  • Buffet, Warren, 73
  • Bureau of Internal Revenue, income tax form (release), 122
  • Business
    • BS, calling out/avoidance, 81
    • checking account, opening, 100
    • complete control, absence, 86–92
    • credit card, obtaining, 100–101
    • employee identification number (EIN), obtaining, 100
    • equity, 77
    • federal tax ID, obtaining, 100
    • financial software, usage, 102
    • financial statements, print/preparation, 130
    • funding, 101
    • ideas, implementation/execution, 94
    • initiation, 79–80, 95–102
    • line of credit, 101
    • loan, 101
    • losses, deductions (examination), 136
    • name, protection, 102
    • need, differentiation, 96
    • nondeductible business expenses, 128
    • numbers/data, 133
    • personal car/cell phone usage, deductions (examination), 137
    • personal house, renting, 145–149
    • primary work, execution, 97
    • protection, policies, 159–161
    • pulse, 129
    • purpose, defining, 96–97
    • recession-proofing, 201–202
    • research, usage, 97–98
    • sale, 129
    • structure, 98–100
    • transfer, 153
    • types, 98–100
  • Business owners
    • policy, 160
    • retirement plans, 170–173
  • Business ownership
    • asset creation, 77
    • cash flow, 76–77
    • four-way business intersection, 78–79
    • route, ownership, 78–80
    • tax reduction, 77
    • wealth building/habit, 75, 78–80
  • Buying frequency, 109–110
  • Buy one, get one (BOGO) promotion, 108
  • Buy, Renovate, Rent, Refinance, Repeat (BRRR) method, 180–185, 191
  • C
  • Capital
    • compounding, 51
    • investment, 65
  • Capital gains
    • tax, income tax (contrast), 146–147
    • types, 146–147, 188
    • understanding, 187–188
  • Capitalization rate (cap rate), 192–193
  • Capture/collect chart, 89
  • Cash
    • investment, 70–71
    • transactions, deductions (examination), 136
  • Cash flow, 177, 192–196
    • disasters, prevention, 129
    • increase, 76–77
  • Cash-on-cash return, 193
  • Cash-out refis, bank/lender offering, 183
  • Cash-value life insurance, 163
  • Categorization, 90
  • C Corporations, 99
  • Certificate of deposit (CD) (portfolio income type), 65, 199–200
  • Charitable donations, deductions (examination), 136
  • Charity, money (gifting), 155
  • Checking account, opening, 100
  • Children
    • assets, giving, 154
    • hiring, tax deductibility, 140–143
    • special-needs children, care, 154
  • Client purchases, frequency (increase), 109–110
  • Closed-end mutual funds (portfolio income type), 65
  • Commitment, 49, 52–54
  • Commodity ETFs (ETF example), 68
  • Compound interest, usage, 50
  • Connections, making, 54
  • Contribution
    • impact, 212–214
    • importance, 210–217
    • wealth source, 207
  • Corporate veil, piercing, 131–133
  • Corporations, 99
  • Cost of goods sold (COGS), accounting, 136
  • Costs, depreciation, 186–187
  • Covey, Stephen, 9
  • COVID, impact, 190–191, 197, 203
  • Create, Anticipate, Reward, and Exceed (C.A.R.E.), 115–117
  • Credit card, obtaining, 100–101
  • Creditors, protection, 153–155
  • Cross-selling, implementation, 107–108
  • Crowdfunding, usage, 101
  • Cryptocurrency, deductions (examination), 136–137
  • Cult-like customers, creation, 113
  • Customer acquisition cost (CAC), 106
  • Customer lifetime value (CLV), 107, 109
  • Customer relationship management (CRM) reports, printing/preparation, 131
  • Customers
    • acquisition, 104–106
    • average transaction amount, 107–109
    • cult-like customers, creation, 113
    • expectations, exceeding, 116–117
    • experience, 114
    • needy customers (revenue-draining customers), ignoring, 111
    • number, increase, 104–106
    • retention, 114
    • rewards/acknowledgement, 116
    • service, example, 114
  • Customer service, 108
    • experience/people/retention, 114
  • D
  • Daily celebrations, importance, 10–11
  • Death benefit payout, 163
  • Debt, problem, 11–14
  • Decision making
    • action, importance, 30–31
    • swiftness, 19, 29–30
  • Dedication, 49, 52–54
    • practice, 52–53
  • Deducted expenses, 126–127
  • Deductions (write-offs)
    • defensibility, 129
    • function, 125–129
    • IRS examination, 135–138
    • pass-through deduction, usage, 187
  • De minimis safe harbor election, 148–149
  • Depreciation, taking, 144
  • Digital assets, 156
  • Direct costs, determination, 111
  • Directors and Officers (D&O) insurance, 161
  • Direct taxes, 124
  • Disability insurance, 165–167
  • Discriminant Inventory Function (DIF), 134
  • Distractions, limitation, 91
  • Diversification, problem, 73
  • Dividend growth stocks, investment, 66
  • Dividend-paying common stocks (portfolio income type), 65
  • Dividends, reinvestment, 66
  • Doing business as (DBA), 102
  • Dots, connection, 93
  • Double taxation, avoidance, 128–129
  • Double Taxation Corporation, 99, 128
  • Dreams, importance, 22
  • E
  • Early retirement, 169
  • Early-stage entrepreneurs, complete control (myth), 86–92
  • Earned income, 62–63, 69
  • Earnings, retention (importance), 121
  • Edison, Thomas, 27
  • Education. See also Self-education
    • lessons, 49
  • Education of Millionaires, The (Ellsberg), 45
  • Ellsberg, Michael, 45
  • Embezzlement, identification/issue, 129, 133
  • Emotional stability, building, 53–54
  • Employee identification number (EIN), obtaining, 100
  • Employees
    • contribution, taxation, 170
    • matching contributions/non-elective contributions, 172
  • Entitlement, expectation (absence), 50, 55
  • Entrepreneur, quality/focus, 86, 88
  • Estate taxes, minimization, 155
  • Exchange-traded funds (ETFs)
    • examples, 67–68
    • expense ratios/broker commissions, low level, 67
    • investment, ease, 68
    • low-cost ETFs, investment, 67
    • portfolio income type, 66
    • research, 67
    • sector ETFs, 68
    • taxes, 68
    • trading strategy, consideration, 67
  • Excuses, avoidance, 53
  • Exercise, benefit, 92
  • Expenses
    • components, 192
    • deduction, 186
  • F
  • Failure, approach, 20
  • Family
    • protection, life insurance (usage), 162–165
    • trusts, benefits, 152–155
  • Farber, Neil, 29
  • Federal income tax, creation, 122–123
  • Federal Insurance Contributions Act (FICA) tax, saving, 190
  • Federal tax ID, obtaining, 100
  • Finances
    • recession-proofing, 197
    • security/protection, 157–158
  • Financial control, exercise, 134
  • Financial software, usage, 102
  • Focus
    • commodity, value, 88
    • improvement, steps, 88–92
    • training, 10
  • Force multiplier, 50
  • Form 1040, release, 122
  • Form 1099, 134
  • Form 8949, 136
  • Formal education, 37–38
    • limitations, 40–41
  • Four-way business intersection, 78–79
  • Freedom, security, 41
  • Freelancer/solopreneur, role, 79–80
  • Friendship, problems, 15
  • Fulfillment, contribution (impact), 210
  • Future condition (broke belief), 11–14
  • G
  • Gold (recession-proof asset), 202–203
  • Government programs, eligibility, 155
  • Grantor, trust role, 152
  • Gratitude, 54, 57
    • grid, 57, 58
    • impact, 14
    • power, learning, 50, 56–57
  • Gross domestic product (GDP), 198, 203
  • Growth
    • complete control, myth, 86–88
    • tax-deferred growth, 170
  • Guests, needs (anticipation/fulfillment), 115–116
  • H
  • Happiness, 54
    • brain, impact, 5
    • internal, 210
    • money, relationship, 210
  • Heal Animal Rescue, 214–215, 217
  • Heirs, real estate transfer, 153
  • High-yield savings accounts (HYSAs) (portfolio income type), 65, 199–200
  • Home equity line of credit (HELOC), application, 101
  • Home office recordkeeping, importance, 135
  • Household debt, level, 12
  • Hummer loophole, usage, 143–144
  • I
  • Ideas, wealth generation (myth), 93–94
  • Illness/disability, protection, 155
  • Importance, focus, 88
  • Income
    • amount, saving, 158–159
    • disability insurance, protection, 165–167
    • earned income, 62–63
    • multiple streams, 61, 68–71
    • passive income, 63–64
    • portfolio, dividends/interest (reinvestment), 66
    • portfolio income, 64–68
    • taxes
      • capital gains taxes, contrast, 146–147
      • reduction, 66
  • Indexed universal life (IUL) insurance, 165
  • Indirect taxes, 124
  • Individual 401(k) plan, 66, 76, 164, 170–171
  • Individual 403(b) plan, 66
  • Individual Retirement Account (IRA)
  • Industry, excellence (becoming), 113
  • Inheritance payout amounts, control, 154
  • Insurance, 162. See also Life insurance
  • Intangible desires, 21
  • Interest, prompting, 105
  • Interest, reinvestment, 66
  • Internal Revenue Service (IRS)
    • deductions, examination, 135–138
    • ordinary and necessary, phrase (meaning), 126
    • Section 280A (Augusta Rule), 145
  • Internal Revenue Service (IRS), money payment (low level), 122
  • Invesco (QQQ) (ETF example), 68
  • Investing
    • platform, discovery, 67
    • skill, 73
  • Investments
    • aggressiveness, 72–74
    • attraction, 129
    • diversification, 68
    • fees, low level, 66
    • interest rates/yields, higher levels (option), 66
    • overpayment, avoidance, 67
    • standard practice, 71–72
  • Investors, investment search, 101
  • Irrevocable trust, 151
    • contrast, 155–156
  • Isolation, avoidance, 54
  • K
  • Key person, policy, 160–161
  • Kiyosaki, Robert, 78
  • Knowledge
    • building, 10
    • providing, self-education (impact), 38
  • L
  • Lawsuits, protection, 153–154
  • Lead generation/awareness, 105
  • Learn (self-education type), 43
  • Lessons, learning, 49
  • Liability insurance policy, 161
  • Liability shield, owner protection, 132
  • Life
    • needs, fulfillment, 211
    • problem, 55
    • protection, 158–159
    • recession-proofing, 197
    • showing up, 49, 52–54
  • Life insurance
  • Limited Liability Company (LLC), 100, 129–133, 145, 187
    • employer profit-sharing contribution, 170
  • Limited liability partnership (LLP), 99
  • Limited partnership (LP), 99
  • Limited-time offers, impact, 110
  • Line of credit (LOC), application, 101
  • Listen (self-education type), 42
  • Living expenses/spending, minimization, 200
  • Loan-to-value (LTV) ratio, 194
  • Long game, playing, 49–52
  • Long-term capital gains, 146–147, 188
  • Low-cost ETFs, investment, 67
  • Loyalty programs, impact/usage, 108, 110
  • Luxury SUVs, write-off, 143–144
  • M
  • Marginal income taxes, historical rates, 123
  • Marijuana use, effect, 91
  • Markets
    • changes, investor responses, 191
    • dips, 197
    • researching/understanding, 72–73
  • Maslow, Abraham, 211
  • Master limited partnerships (MLPs) (portfolio income type), 65
  • Matching contribution, 172
  • Math/general errors, deductions (examination), 137
  • Meals/entertainment, deductions (examination), 135
  • Means, living, 69
  • Million-dollar argument, 45–46
  • Model (self-education type), 43
  • Money
    • exchange/replacement/replenishment, 7
    • investment, 50
      • time investment, contrast, 73
    • mindset, 5
    • payment, reduction (IRS), 121
  • Money market accounts (portfolio income type), 65
  • Monthly budget, examination, 200
  • Multiple income streams, building, 203
  • Munger, Charlie, 73
  • Musk, Elon, 27
  • Mutual funds, investing, 76
  • N
  • Name (business), protection, 102
  • Needs, fulfillment, 211
  • Needy customers (revenue-draining customers), ignoring, 111
  • Negative cash flow, 192
  • Nervous system, relaxation, 54
  • NFTs, 156
  • Nondeductible business expenses, 128
  • Non-elective contribution, 172
  • O
  • Open-end mutual funds (portfolio income type), 65
  • Opportunity cost, 46–47, 86
  • Opportunity Zones, tax breaks, 189–190
  • Ordinary and necessary, phrase (meaning), 125
  • Other people's money (OPM), 179, 184
  • Out of the ordinary activity, deductions (examination), 137
  • Outsourcing, hiring (formula), 87
  • Owing, 50
  • P
  • Partners, addition, 129
  • Partnerships, 99, 187
  • Passion
    • change, absence (assumption), 82
    • development, 83
    • following, 82–83
    • knowledge, implication, 82
    • monetization, problem, 82
    • shift, 82–83
    • singularity, absence, 82
  • Passive income, 63–64
  • Pass-through deduction, usage, 187
  • Pass-through entities, 187
  • Pause Reprogram™, usage, 54
  • Peer-to-peer (P2P) lending (portfolio income type), 65
  • People
    • connections, making, 54–55
    • intangible desire, 21
    • tangible desire, 21
  • Perfectionism, impact, 85
  • Permanent life insurance, 163–165
  • Persistence, importance, 20–22
  • Personal car (business usage), deductions (examination), 137
  • Personal cell phone (business use), deductions (examination), 137
  • Personal house, renting, 145–149
  • Personalized email marketing, usage, 109–110
  • Personal liability umbrella (PLU), 161
  • Phantom expense, 63
  • Physical exercise, benefit, 92
  • Physical health, attention, 54
  • Physically backed ETFs (ETF example), 68
  • Place, Point in time, Purchase amount, Present documentation, Person, Purpose (6 Ps), 126
  • Plan, requirement (absence), 85
  • Playroom, tax deductions, 140–143
  • Podcasts, 156
  • Point of sale (POS)
    • customer report, 112
    • printing/preparation, 131
  • Poor mentality, impact, 6–8
  • Portfolio
    • capital, investment, 66
    • holdings, sale, 66
    • turnover, low level, 66
  • Portfolio income, 64–68
    • examples, 65
    • holdings mix, change, 66
    • income taxes, reduction, 66
    • increase, steps, 65–67
    • sources, diversification, 67
  • Positive cash flow, 192
  • Preferred stocks (portfolio income type), 65
  • Present, awareness, 92
  • Prices, increase, 110–112
  • Probate, avoidance, 152–153
  • Procrastination, avoidance, 91
  • Productivity grid
    • framework, 89
    • usage, 85–86
  • Promotions, examples, 108
  • Property appreciation, 177–179
  • Publication 535 (IRS), 128
  • Public court documents, privacy (providing), 155
  • Purchase frequency (PF)
    • increase, 109–110
    • limited-time offers, usage, 110
    • loyalty program, usage, 110
    • personalized email marketing, usage, 109–110
  • Purpose
    • defining, 95–97
    • finding, 92–93
    • path, pain (impact), 214–217
  • Q
  • Qualified Accountable Plan, 144
  • Qualified accounts, investment, 66
  • Qualified business expenses, 186
  • Qualified business income (QBI), 187
  • Questions, asking (focus), 23–25
  • QuickBooks, usage, 102
  • R
  • Read (self-education type), 43
  • Real estate
    • transactions, 50% rule, calculation, 196
    • transfer, 153
    • usage, 69
  • Real estate investing (REI), 177
    • asset leverage, 179–185
    • cash flow, 192–196
    • flexibility, 190–191
    • property appreciation, 178–179
    • ratios, usage, 192–194
    • tax advantages/savings, 186–190
  • Real estate investment trusts (REITs) (portfolio income type), 65
  • Reality (problems), poor mentality (impact), 6–8
  • Real-world revenue growth, 104
  • Recessions
    • and market downturns, 198–199
    • opportunity, 199
    • recession-proof stocks, 200–201
    • survival, 198–199
  • Refinancing, 183
  • Renovations, 181–182
    • problems, 182
  • Rental income tax, payment, 145–149
  • Rental, rehabbing, 181–182
  • Rent, deduction, 145–149
  • Research, usage, 97–98
  • Reselling/flipping, usage, 181
  • Resilience, practice/fostering, 53–54
  • Results, creation, 85
  • Retirement
    • accounts, usage, 69
    • opportunity, 169
    • plans (business owners), 170–173
  • Return on investment (ROI), 177, 193–194
  • Returns, types, 71
  • Revenue Act of 1916, 122
  • Revenue growth, 110–111
    • real-world business lessons, 103
  • Reverse engineered outcomes (REOs), 22–23
  • Revocable trust, 151
  • Rich Dad Poor Dad (Kiyosaki), 78
  • Risk tolerance, knowledge, 70
  • Ritz-Carlton, Gold Standards, 115
  • Robbins, Tony, 211
  • Roth IRA, 66, 75, 76, 173
    • custodial Roth IRAs, 140, 143
    • year-end value, 141
  • Rule of 7 (RO7), 12–14
  • S
  • Savings accounts (portfolio income type), 65
  • Savings Incentive Match Plan (SIMPLE) 401(k), 170, 172–173
  • Savings Incentive Match Plan (SIMPLE) IRA, 172
  • Scarcity (broke belief), 9–11
  • S Corporations, 99, 132, 145, 187
    • salary, deductions (examination), 137
  • Seasoning period, bank/lender requirement, 183
  • Sector ETFs (ETF example), 68
  • Security/protection, obtaining, 157–158
  • Self-commitments, 19
  • Self-education
    • compounding dividends, 35
    • concept, 37–44
    • types, 43
  • Self-employed 401(k) plan, 170–171
  • Self-employed, expense deductions, 125
  • Self-employment taxes, 128
    • FICA, saving, 190
  • Self-meeting, scheduling, 130
  • Separate entity, consideration, 132
  • Service, extension, 93
  • Shiny object syndrome, 29
  • Short-term capital gains, 146, 188
  • Showing up, 49, 52–54
    • habit, building, 53–54
    • steps, 52–53
  • Silence, usage, 54
  • Simplified Employee Pension (SEP) IRA, 170, 171
  • Sixteenth Amendment, ratification, 122
  • Skills, growing, 44
  • Small Business Association (SBA), business owner programs, 101
  • Sole proprietorship, 99, 129, 187
    • employer profit sharing contribution, 170
  • Solo 401(k) plan, 170–171
  • Solution-focused thinking, 19, 22–25
  • SPDR Dow Jones (DIA) (ETF example), 68
  • SPDR S&P 500 (SPY) (ETF example), 68
  • Special-needs children, care, 152
  • Stallone, Sylvester, 27
  • Standard, creation, 115
  • State of the Union meeting, 130
    • conducting, 130–131
    • holding, 130–131
  • Stocks
    • recession-proof stocks, 200–201
    • trade reporting (absence), deductions (examination), 136
  • Substances use, minimization, 91
  • Success, 29–30
    • approach, 20–22
    • secret, 26
  • Successful, Achieving, and Wealthy (SAW) tax, 21
  • Swart, Tara, 29
  • T
  • Tangible desires, 21
  • Tax Cuts and Jobs Act (2017), 187, 189
  • Tax-deferred growth, 170
  • Taxes
    • advantages/savings, 186–190
    • alternate minimum tax (AMT), 148–149
    • audits, 133–138
    • bill, bookkeeping (impact), 129–133
    • code, examination, 148–149
    • deducted expenses, 126
    • deduction, Six Ps, 126–128
    • deferral, 188–190
    • de minimis safe harbor election, 148–149
    • double taxation, avoidance, 128
    • estate taxes, minimization, 155
    • income tax, capital gain tax (contrast), 146–147
    • marginal income taxes, historical rates, 123
    • nondeductible business expenses, 128
    • payment
      • factors, 121–122
      • reduction, 123
    • red flags, 133–138
    • reduction, 77
    • rental income tax, payment, 145–149
    • savings, advantages, 177
    • State of the Union meeting, holding, 130–131
    • strategies, 139
    • types, 124–125
  • Tenants, locating, 183
  • Term insurance, 162–163
  • Theft, issue, 133
  • Thoughts
    • capture/collect, 89
    • directing, 10
  • Threshold incentives, buying, 108
  • Time
    • difference, 47
    • force multiplier, 50
    • investment, 72
  • Total customers, number (increase), 104–106
  • Trading strategy, development, 67
  • Traditional IRA, 66, 171
  • Treasuries (recession-proof assets), 202–203
  • Trustee, role, 152
  • Trusts
    • benefits, 152–155
    • business transfer, 153
    • charity, money (gifting), 154–155
    • creditor/lawsuit protection, 153–154
    • creditors, protection, 153–154
    • illness/disability, protection, 155
    • inheritance payout amounts, control, 154
    • irrevocable trust, difference, 155–156
    • lawsuits, protection, 153–154
    • minor child, assets (giving), 154
    • people, involvement/role, 152
    • probate, avoidance, 152–153
    • public court documents, privacy (providing), 155
    • real estate transfer, 153
    • special-needs children, care, 154
    • types, 151, 154
    • usage, 151
  • Trust protector, 156
  • U
  • Umbrella insurance, 161
  • Universal life insurance, 164
  • Upselling, implementation, 107–108
  • US savings bonds (portfolio income type), 65
  • V
  • Value added tax (VAT), 124
  • Value, focus, 111
  • Variable life insurance, 165
  • Vision, 22
    • commitment, 53
    • defining, 93
    • and strategic action, 28
  • Visual picture, creation, 29
  • Visualization, 28
  • W
  • Wealth
    • contributions, impact, 207–217
    • definition, 75
    • pillars, 76–77
    • source, 217
  • Wealth, building
    • business ownership, usage, 75
    • real estate investing, usage, 177
  • Wealth habit
    • building, 159
    • business ownership, importance, 78–80
    • quiz, 16–18
  • Websites, 156
  • Whole life insurance, 164
  • Words, selection, 10
  • Workers
    • behavioral control, exercise, 134
    • financial control, exercise, 134
  • Work, passion (shift), 83
  • Wrong people, interaction (broke belief), 15–16
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