The Interwhat?

What's it really feel like to be presented with a new concept? Let's listen to a news experts that have no place (mentally) to put something new.

Any time we are presented with a new idea, understand what's happening. At a simple level most thinking is actually not thinking it is remembering. You remember something that has happened before because it is a pattern. Remembering is faster and takes less energy than thinking. Instances of something happening over and over again become a pattern called a belief.

When you hear something that is totally new to you in, that doesn't fit within your paradigm of prior experiencing (aka no memory of it) you then have to THINK. Know that over time all thinking is also solidified into patterns so that you can simply remember them in the future to avoid thinking (which saves you energy). For that reason it is rare that a one time experiencing is going to rock your world, especially if it's in opposition to what you believe to be true. It takes many times, many repetitions to form a new pattern (habit).

This is literally happening every moment in your life. there are things you are seeing, that aren't there - they are seen because of a pattern of expectation. There are also things that are there that you aren't seeing because you don't expect to see them.

Much of this is governed by your RAS (Reticular Activating System). The RAS acts as a gateway to keep life simple enough for you so you don't lose your mind (literally). The problem is that it can become incredibly limiting. There is no place or folder for your mind when someone shouts 'the world is round' if your pattern of perceiving has been constantly focused on the world being flat. It takes time, repetition, and eventually that thought takes hold.

Consider: What in your life is right in front of you, but you can't see it because of memory, a prior pattern that is there for you so quickly you can't think for yourself? What is your current Interwhat?

TAKE ACTION: Try something new and become a CLA. There's a reason the course is over 30 hours - it takes repetition and time to reprogram you that there is something out there for you that is beyond what you know. Why haven’t you seen financial advisors as a referral partner? Why haven’t you consider yourself a financial literacy resource? Want a challenge that pays you back? Invest in yourself knowing that you'll come out the other end thinking different about what you do as a service to others

A guarantee:  Complete the course, if you don't think different, feel different, or act different, then let me know and I'll give you a full refund...

a BORROW SMART CONCEPT
Realtors Think Real Estate is their Best Investment - it is an investment.

When we were teaching our CE Classes to Realtors, I was always amazed at how Realtors would tell me they were putting all their money in real estate. That’s like a gold miner investing all their gold back into gold - there is no diversification or risk.

“According to NAR, in addition to their primary residences, 26% of Realtors “owned other residential properties for investment.” That is, 26% of Realtors are landlords. …” from John Wake

Realtors working as independent contractors can benefit significantly from tax-deferred savings programs. Here are some key ways these programs can enhance their financial stability and tax efficiency:

1. Individual Retirement Accounts (IRAs)

Traditional IRA:

• Tax Deductible Contributions: Contributions to a Traditional IRA may be tax-deductible, reducing your taxable income for the year.

• Tax-Deferred Growth: Investments grow tax-deferred until you withdraw them in retirement, potentially lowering your current tax liability.

Roth IRA:

• Tax-Free Withdrawals: Contributions are made with after-tax dollars, but withdrawals during retirement are tax-free, provided certain conditions are met.

• Flexibility: Contributions (but not earnings) can be withdrawn at any time without penalty, providing some liquidity.

2. Simplified Employee Pension (SEP) IRA

• High Contribution Limits: Allows contributions of up to 25% of net earnings from self-employment, up to a maximum limit ($66,000 for 2023).

• Tax-Deductible Contributions: Contributions are tax-deductible, reducing taxable income.

• Simple Administration: Easier to set up and maintain compared to other retirement plans.

3. Solo 401(k)

• High Contribution Limits: Combine employee deferrals ($22,500 for 2023; $30,000 if age 50 or older) with employer contributions (up to 25% of net self-employment income) for a total contribution of up to $66,000 ($73,500 if age 50 or older).

• Tax-Deductible Contributions: Contributions reduce taxable income.

• Loan Options: Allows borrowing against the plan balance, providing liquidity if needed.

4. Health Savings Account (HSA)

• Triple Tax Advantage: Contributions are tax-deductible, growth is tax-deferred, and withdrawals for qualified medical expenses are tax-free.

• Long-Term Savings: Can be used as an additional retirement account since funds roll over year-to-year and can be used for medical expenses in retirement.

5. Deferred Compensation Plans

• Income Deferral: Defers a portion of income to a future date, typically retirement, reducing current taxable income.

• Tax-Deferred Growth: Investments grow tax-deferred until the deferred income is paid out.

6. Defined Benefit Plans

• Higher Contribution Limits: Suitable for high-income earners, allowing significant contributions and thus substantial tax deferral.

• Predictable Retirement Income: Provides a defined benefit upon retirement based on factors like salary and years of service.

A Strategy to Win Big!

Take a financial advisor and a tax advisor into a local real estate office and do a Q&A about these options to help Realtors understand how powerful financial planning concepts can be for them!

Example: A realtor earning $150,000 annually could:

• Contribute to a SEP IRA or Solo 401(k) for significant tax deferral.

• Then use an HSA for medical expenses, providing immediate tax deductions and long-term savings.

• Then supplement retirement savings with a Roth IRA for tax-free withdrawals.

By leveraging tax-deferred savings programs, realtors as independent contractors can reduce their current tax burden, grow their retirement savings more efficiently, and ensure financial security in retirement. These strategies, combined with professional guidance, can significantly enhance long-term financial well-being.

Regardless of who wins the market goes up 70% of the time, so the best option is to stay in the market in the most tax efficient way possible.

LIABILITIES and DEBT
What’s Happening.

REAL ESTATE
What’s Happening?

ASSETS and INCOME
What’s Happening?

Here's the deal: The best retirement income strategy? It's all about what you measure. If you want to avoid risk, go for annuities. If maximizing spending is your game, a diversified portfolio is key. But if you’re scared of catastrophic failure, stocks might not be your friend. Bottom line, pick the strategy that matches your goals and risk tolerance. It’s not one-size-fits-all; it’s about what fits YOU. Michael Kitces does a great job of explaining this here:

ON BEING HUMAN
What’s Worth Sharing?

Ben is a prolific thinker and writer, always find his material thought provoking.

DOPAMEMES
And Other Happy Moments…

Artificial Intelligence
And the Future of Work…

Develop a Cool Tagline for an Educational Event using ChatGPT (adapted from Daily Prompt):

TASK 1: Pull a list of the historical best examples of taglines for products or companies.

TASK 2: Synthesize learnings on why they were great.

TASK 3: Make a list of 10 things that make a great taglines

TASK 3: For each number on the list, write a tagline for My Mortgage Education Class for First Time Homebyyers. My company offers first time homebuyers quality education on buying their first home.

TASK 4: Go through each tagline and replace any of these words or phrases: Unlock, Magic, Daily Dose, Master, Transforming, Enthusiasts, Elevate, Fuel, Ultimate, Excellence, Ignite, Empowering, Craft, Your Gateway, Discover, Refine, Enhance, Refine, Genius.

TASK 5: Write all 10 to be 5 words or less if they aren't already.

Results:

• Homebuying Made Easy

• First Home Path

• Keys to Home

• Top Homebuyer Tips

• Homebuying Simplified

• First Home Success

• Confident Homebuying

• Step-by-Step Homebuying

• Dream Home Guide

• Open Your Home

Upload all your stuff and chat with it - make it new, rewrite: https://writer.com/

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Borrow Smart University || National Institute of Financial Education