On this episode of Investing in Real Estate, we’re taking you behind the scenes of our private Facebook group for the Financial Freedom Academy! Last week, Tom Wheelwright joined our FFA members to answer live questions about taxes, capital preservation, leverage, and more.
Tom is a Rich Dad Advisor, expert CPA, the CEO of WealthAbility, and the author of Tax-Free Wealth. I hope this episode gives you insight into the resources and value we provide to our Financial Freedom Academy members. Enjoy!
On this episode you’ll learn:
- How to be appropriately leveraged.
- The requirements for withdrawing your retirement under the CARES Act.
- How to balance your assets.
- And much more!
How to Be Appropriately Leveraged
Tom explains that leverage is a two-edged sword. You certainly can grow your portfolio exponentially with leverage, but you can also get burned. When you buy real estate investments, it’s important to ensure that you can withstand vacancies and still pay your loans. There are two main metrics you should look into when determining how to leverage: capital and cash flow. A good, conservative leverage ratio is somewhere between 40-50%.
The Requirements for Withdrawing Your Retirement Under the Cares Act
The CARES Act allows you to withdraw $100k (total) from your retirement plan. The restrictions for the CARES Act are more narrow than you might think. First of all, you must have a financial impact from COVID-19. Some examples are actually contracting the virus, or if your business had to shut down. Not everyone qualifies for this, but if you do, Tom thinks it’s a good idea.
How to Balance Your Assets
Tom’s personal philosophy is that all wealthy people have one thing in common: focus. Focus on one thing, do it well, and repeat. Follow one course until successful. If you want to buy gold and silver, do so as wealth preservation, not as an investment. Focusing intently will help you build wealth.
Episode Resources
Book a Call with Our Team
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Tax-Free Wealth by Tom Wheelwright
Novo Bank
More Important Than Money by Robert Kiyosaki & the Rich Dad Advisors
1031 Exchange Experts
Exchanging Up by Gary Gorman
The Daily Stoic by Ryan Holiday
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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