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Highlights from this episode include:

  • Why you’re not earning “Boss Pay” and how to change that today (6:53)
  • What the book of Ecclesiastes says about the myth of work-life balance (7:19)
  • A fundamental character trait you can develop to guarantee your success (9:32)
  • How the debt from your home can be used to secure your financial future (12:23)
  • How your mortgage can secure your financial future (12:23)
  • The “Asset Acquisition” test you can use to determine if a 401k loan is right for your situation (13:43)

Ready to stop doing what you hate? Go to RetireNowRetireWow.com and fill out the Game Changer form to secure your financial future.

Get our 5 Year Countdown to Retirement Guide and make sure you’re on track to retire (no matter where you are in your career). Visit brightfg.info/5yearguide

Read Full Transcript

Do you hate the thought of working past 55 or 60? Do you hate not being able to live the life you deserve today? Do you hate not knowing what your financial future looks like? It's time to stop doing what you hate, here's your host, Mr. Harold Green.

Oh, Aloha everybody. And yes, yes, yes, yes, yes. It is time to stop doing what you hate. This is Harold Green, Braintree financial, and I'm excited to be sharing with you guys today, the years off to a very interesting start. And I'm just looking forward to getting better and better at what I do every day. I'm getting better and better at, and a lot of different things. And you know, this morning and my self reflection time, it was all about just, you know, just going through my protocols and going through, you know, how I live my life. And then just simply asking the question, you know, what can I get better at? You know, who can I treat better? What can I do better? Because it always starts and begins with you. I'm going to say that again. It always starts and begins with you. Not your wife, not your kids, not your boss, not the dog, not the car, not the neighbor, not your friends. It all starts and begins with you. So the last show we talked about winning, and today we're going to talk about more winning, but that's not the title of the show.

(01:32): The title of the show is equity harvesting, but I'm going to focus more on winning and the things that are guaranteed to help you win and some of the things that could potentially help you. When, so are you guys, and are you ladies and gentleman ready? If, so one, two, three, let's get it. All right. So we're going to be talking about investments today and we're going to get into something a little complicated. I may have shared with you guys a little bit about this in the past, but we got to talk about some disclosures and you can always find the disclosures on my website. And it's past performance is no guarantee of future results. All investments, including real estate are speculative in nature and involve substantial risk of a loss. And I encourage all of our investors to invest carefully. I also encourage investors to get personal advice from their own professional investment advisor and to make their own independent investigations before acting on any information that I share.

(02:34): And I also do not in any way warrant or guarantee the success of any action you take and reliance on any statements I make on my shelf. So understand that all investments carry risk and investments, decisions of the individual remain the responsibility of that individual. So like I said, it all starts and it all ends with you. So I'm going to share with you guys, one idea that is guaranteed to make you successful. And the other day I was sitting down and you know, doing my preparation for the day. And a couple of gentlemen walked by me. I usually do it in an area where some people, you know, they're exercising. And so I'm sitting at this this table, it's like a picnic table, but people just kind of walk by a path or whatnot. And they always see me out there and I'm out there early in the morning.

(03:31): Sometimes I'm up at three 45 and I'm at there. It's like my second or my third office. And so I'm there sometimes with my laptop or whatever, just, you know, take my notes and whatnot. And a guy walks by and he says, you know, if I was still working, boy, I would be right here where you are preparing for the day. I would be like right here, getting my work ready, you know, like getting my mind. Right. I would be like right there where you are. And I said, yes, sir. I said, that's exactly what I am doing. I'm getting the mandate working probably since like four o'clock. So one of the things that I've studied for a long time is diligence. And I really don't want to get into to this area. But I think I was listening to one of I was on one of Jr's shows and you know, the Monday calls and I forgot who it was that was talking about this.

(04:20): And, you know, talking about pulling the gloves off and talking about things that people really don't want you talking about. And, you know, people are getting offended and cancel culture and all this other stuff that is going on in the world today. I think it's all smoke and mirrors and some people are going to end up hurt badly by it. And so what I want to do is all of those who are willing to tag team with me to hitch their wagon, to my horse, I'm going to do my best to make sure you don't fall into some of the situations that some of these folks are going to fall into. And just so happened. Another guy was walking by and he, he said something very interesting to me. I don't even know how we really got on the topic, but it was about the type of mindset that people have on our country today.

(05:03): And I told him, I said, you know I don't understand how over half of the people in this country want one party to rule all parts of government. They just want it. They want everything ran by the same people. And I said, I really don't understand that. And I said, we need to have, we need to make sure we have checks and balances because there's good ideas on both sides, but we need checks and balances. And if we don't get the checks and balances, it's going to be very interesting down the road. And he said, you know, there's a lot of people in this country that, that don't really want to work hard for things. They want things easy and so on and so forth. And I'd really need to get into the, all that, all that deep with them, but it reminded me of Proverbs.

(05:47): And you guys know I'm big on Proverbs. And so I want to talk to you about one of the secrets to success that will, that's guaranteed to help you win and win and win again. And again and again, and we're going to go Proverbs 24 chapter 12, verse 24, it says diligent hands will rule, but laziness ends and forced labor. I'm gonna read that again. Diligent hands will rule, but laziness ends in forced labor. Let me that, that was one of the biggest wake up calls I ever had. And so I I've always wanted to have my own company, but I didn't really know what it took to own your own company. And so I S I struck out and a lot of times, and I had a lot of ideas that fail, but I just kept trying and trying and trying until, you know, I ended up with my own business helping people reach their goals and their dreams.

(06:40): And you guys know the story. If you heard me talk before, but I bind so many people want boss pay, but so little people want to do boss work. All right. So if you want boss pay, then you must do boss work. And I hear this thing on about work-life balance. Work-Life balance. You, you got to have work-life balance. I hear that a lot and includes the assays. It talks about there's a season for everything. And I think there's a season where you sow seed in the ground, and there's a season for you to harvest. And you have to understand what season you're in. Are you in the season to sow seed, or are you in the season to harvest? Because, you know, if you're sitting here talking about this work-life balance thing, and you're supposed to be harvesting, maybe you need to be working extra hours to harvest or, or to get that next promotion or to get that next business deal like this is, this is your season for that to happen.

(07:39): And for you. And if you miss it, this is all about timing. Success is about, is about timing. And when your timing belt or your timing chain is off, you're going to miss opportunities. And so I want to let you know that if you're out there and you have this mindset about work-life balance, yes, I understand that it's about setting priorities, but at the same time, you must understand what season you're in. And this is something I talked to my wife bought a long time ago. I said, honey, you know, I really don't want to do this, but I'm going to have to start working six days a week. There's, there's just no way that I'm going to be able to do what I need to do, you know, without going in six, sometimes seven days a week and said, you, she said, you have to understand that it's your season right now, it's your season to do that.

(08:30): And there's going to come a day where you won't, you won't have to do that, but if you need to do that for now, you must do that. And you know, I've learned from some horrible situations that I've been through before that things happen to you a lot of times, because you're not in the right place at the right time with the right people, you're in the wrong place at the wrong time, with the wrong people, doing the wrong thing. And I've really, I do a, a good job, a better job. Now I've taken inventory of where am I spending my time? Who am I with? You know, what are they feeding into my life? What are they saying to me? You know, do I want them speaking into my life? Do I want to hear what they have to say? Do does their opinion make sense at all?

(09:10): And if it doesn't, you know, I kind of tend to want to shy away from it because a lot of times people will say things. They didn't know what they're talking about. And a lot of people are really bold about speaking into your life. So you have to watch out for that. So one thing that will guarantee you success is being diligent. I know the version of that same chapter and verse says the handle of the diligent will rule, but the salt slothful will be put to labor. You know, so I know a lot of you overly diligent, but if you can step your diligence game up, you're going to step your winning game up. All right, let's get into a little bit about what I really wanted to talk about today. And that was something I call equity harvesting. What is, what is equity harvesting equity harvesting is simply a way to go into your assets.

(09:58): And it's a little bit of a leverage strategy, and it's basically using a couple of different debt instruments to leverage. And the biggest one that I see people using most often, I see them using their home equity line of credit. And you can use a home equity line of credit for a lot of different things, but I've already talked about the disclosure. And normally it's advised against when people use home equity lines of credits do anything. So as an investment advisor, I'm always careful when I talk to my clients about how they use their home equity line of credit. I mean, people use a line of credit for a lot of crazy stupid stuff. And then some use it for wise ideas like pulling cash out, putting it into their business, pulling cash out, putting it into their, you know, their life insurance policies or paying premiums.

(10:49): It's all predicated on cashflow. And as you heard me talked about before and the rapid retire program, which is predicated on cash, reserve systems, cashflow management, and then income generation, it's a powerful tool to help you build your wealth, but it has to be done and the right environment at the right time. So what kind of environment are we in right now? Well, when it comes to the stock market, it's a scary environment because people are just pouring money into the, into the market. And there's a lot of froth going on. You have companies trading many times more than are their earnings multiples. And I have a feeling that it's going to be time to start trimming off some of this frog and turning it into realize, you know, realizing some, some of the profits. And so, and the next couple of weeks or so, I'm going to be working to trim the profits and then reposition those profits, you know, either in cash or some other type of investment that is going to weather the next downturn.

(11:48): And so I've already gone through and built my bare market portfolio. And I just don't know when they go ahead and put that in place. And so I'm just going to ride this market a little bit more, let it run a little hot, a little bit more in certain stocks and then work on a trimming others. But back to that equity harvesting, if you have equity and your home, I know a lot of people don't like debt and they want the house paid off. But again, there is a season for that. Maybe now it's the season to take from your line of credit and put it in different places and do different things with it. Okay. And then eventually there's going to be a season to harvest that, that, so you want to make sure that you're looking at your financial plan and seeing when would be the proper time to proper time to use your home equity line of credit and how to best use was that to increase your wealth.

(12:39): And this is one of the potential things that you can do that would have a potential good return or a great return, depending on how you go about utilizing the home equity line of credit. The next thing I want to get into is 401k loans. And is it a good idea or not to take loans on your 401k and then invest that money. Some people are against 401k loans because you got to pay the money back with interest. Some people are for 401k loans. My attitude is, it depends on what you are doing with that 401k loan. So I always advise clients not to take 401k loans unless it's for asset acquisition. Okay. I'm going to say that again, do not take a 401k loan unless it's for asset acquisition. What do I mean by that? If you're using it for a down payment on a property?

(13:40): Yes, I ain't got a car. No, because it's a depreciating asset. Again, taking loans is based on cashflow. So one of the questions I ask clients is, you know, based on your cash flow and looking at the financial plan, would you feel comfortable taking a loan on your 401k? Okay. And then putting it in, you know, taking the loan, investing it outside of your 401k. So after careful analogy, in most cases, depending on that, if they are a sophisticated investor, it makes a ton of sense, especially actually looking at history and what has been happening in the market over the past, I would say four or five years, maybe even a little better, but I wouldn't necessarily say the market as a whole, I would say individual stocks. Okay. A lot of times in the 401k, and we've talked about this before, you know, I did a show a while back and you can go look this up.

(14:41): It's the 10 reasons why your 401k probably sucks. And one of the reasons that some of these mutual funds are just there, they're not performing. And so if you could take out from your 401k and you could invest that in something outside of the 401k that could potentially do well, you could have a winning strategy, but there's a couple of different things you're gonna look at. You have to look at your cashflow, okay. You have to look at your tax situation and make sure you're running these numbers with your tax professional, because there's a couple of different things. You've got to look at. Number one, you have to look at when it's time to cash out the investment. What type of tax hit are you going to take when you cash these investments out to start paying off the 401k loan? The other thing you're going to have to look at is making sure you have the proper cashflow to make the required 401k loan payments.

(15:36): Because again, 401k loan repayments are after tax. You cannot make pre tax 401k loan payments. So you're going to have a couple of tax hits here that you're going to have to figure out and work in. A lot of times, the max you can take out of your 401k is about $50,000. And so, and you can only have basically one 401k loan at a time, or basically the max is 50, $50,000. And, and some of these loans, I see very low interest rates of 3%. Some are, you know, 4%, some are 5%. It, it just kind of depends on that. The 401k provider and then what the rules are. And so this could potentially be a winning strategy for you, especially if we are in the right kind of environment. Okay? So those are the three things I want you to take a look at.

(16:28): I gave you one idea that's guaranteed to help you win. And that's make sure you are diligent, diligent, diligent, because the hands of the diligent will rule. All right, you got to do boss work to get boss pay. And that requires a lot of delays. Number two, look at all my equity excavation, taking the home equity out of your home and putting it to good use, but you have to make sure that's the right strategy for you. And then the last thing you want to look at is taking a 401k loan, because that could be a winning strategy for you as well. If you want to know if this works for you, you guys know where to find me retire now, retire while.com check the website out. You can also give me a call (808) 521-4401. And Kayla, my assistant will see if she can get you on the schedule.

(17:11): One of the things I'm highly considering this year is limiting the amount of new clients I take on. I don't say that as a bad thing. It's a, it's probably a good thing because I really want to make sure that I devote more time to my current clients and their portfolios, and then giving them content and giving them information that could potentially help them win a lot more. So we want to be all about that. Winning in 2021, there's a lot of losing that, that happened in the past. There is losing that's going on now, and we don't want no part of it. So you guys get in contact with me and until next time, one, two, three let’s Get it.

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