Brett:

Thank you so much for sharing that. You can stake your let’s say your Bitcoin or your theorem and say those are the two against these stable coins or lending it lending. The collateral is the Bitcoin or the Ethereum and the tool which it could be staked against or people can loan or the stable coins of which can be 7% interest, 8% interest, depending on the coin, maybe I’m missing something, is that right so far?

M.C.:

Here’s a good way to explain it. So Elon Musk with Tesla ever knows Tesla shares by now. Elon and this was a couple of quarters ago, maybe share it in the report for Tesla is that he actually borrowed against these Tesla shares up to $500 million at a very low-interest rate to go and invest. But people would say, Well, wait for a second, so he didn’t sell these Tesla shares? Because he would then pay taxes on it. So he used these Tesla shares, and he did this through an institution, which will give him a loan secured by his Tesla shares at an interest rate that he can go then and use, you could do the same thing with your Bitcoin and your Ethereum.

Brett:

Like real estate too, if you did, like a refinance, or real estate, or a second take a second position somewhere else, or cross collateralize multiple properties, essentially, what you’re saying is, Mr. Banker, like, here’s my assets, here’s the value what we loan against that, and obviously, if the value goes too low, they might have a capital call, it might be a couple of things, you get some risk involved. But it’s a tax-free event when you refinance, which by the way, is essentially the way the legality of the Deferred Sales Trust works in that you don’t sell it, you don’t sell to the open market, you basically transfer or sell it to the trust in exchange for a promissory note to pay you over time, and by moving from an owner to a lender or just maintaining ownership or becoming a lender. That capital is in a tax deferral state or a tax-free state, which is a beautiful thing. M.C. my question for you would be what’s the best benefit for that for the government? Because some people might say, “Why is the government allowing that?” What would be your answer to that?

M.C.:

Essentially, the government know that they’re going to get their money at some stage or they’re going to get it now or down the line. Let’s just say the USDC if you stay stablecoins. That is actually test every single year, get a 99 for that. So that’s a tax as you go. Even though you might get a loan secured by your Bitcoin tax-free, as the other investor that is staking USDC, let’s just say stable coin backed by US dollars and getting paid interest on that. You get taxed along the way. So there are taxes due on that strategy, and then eventually, folks will sell I mean, we see it every single year in the crypto market where folks do sell out of Bitcoin and Ethereum positions when it’s going down. That’s just you know, the psychology of markets and behavioral just mindsets of investors in general and when they sell there’s there are capital gains obviously involved. Governments will get their money they will get their taxes paid and they get this on the stable coins.

Brett:

Because there’s capital gains tax involved if you sell tissue strictly to USD. But if you use what’s called a Deferred Sales Trust, in fact, we closed the first Crypto, it was Ethereum Bitcoin case about 90 days ago for a client who bought it for about a hundred thousand kinds of in that 2015 range, and it went up to as high as $13 million. So the gain was 12.9M, and you see the MC they didn’t want to sell because of the capital gains tax. But they went through during that time they went through, it went up to $6M in 2017, then it crashed in 2018, then went up to to $9M, and then $13M, then it crashed back down to like $6M, and then it went back to $13M, it was just all this intensity they had never sold until they found the Deferred Sales Trust, and so we went on to do two more deals, another two and a half million dollar Ethereum deal and another $5 million Bitcoin deal. As long as you transfer it properly into a Deferred Sales Trust, and then the trust sells it and you in exchange get a promissory note back and you slowly pay tax over time, you’ll get 1099 as you receive payments back. All of these things are why you want to get with me and they were MC to become a cash flow ninja because it’s no longer just about cash flow, I say MC, it’s also about tax flow. They’re together, talk about the tax flow strategy for how you’re helping people as well.

M.C.:

It’s going to be your biggest expense taxes, and the biggest obstacle for folks getting the life they want and building out a cash flow portfolio. One is the inability to reduce their taxes, that you’re going to have to have a tax strategy, especially in a very, very fast-paced and changing environment, with regards to taxes. Things are going to change very, very quickly, here in the next couple months, the next couple a couple of years. We talk a lot about this in my community, and we talk a lot about tax planning and how to be proactive with that. There’s a couple of ways, one of the ways we explain it is there’s a framework, essentially, for wealth creation, you have to make your money somehow cash creation, everybody does that, and of course, it depends how you make that money to how you benefit from taxes, you don’t get the same tax treatment if you make it in the capacity of a W2 employee, then you do. For example, making it as a business owner. There’s a lot of tax benefits for business owners and also as an investor passively, and then the second part of it is you have to position the capital somewhere that you’ve generated. So we call a cash capture, and then we look at capital allocation. I talked a lot about insurance, and specifically, a dividend-paying whole life insurance policy with a mutual insurance company. That’s overfunded. We position capital in there because it enjoys tax-free growth, you get to borrow against your cash tax-free, and also if you do pass away, eventually, the death benefit will be paid tax-free to your estate, and then you can position capital and gold and silver title use that as collateral to get loans.

That’s how you can borrow against your gold and silver because it’s tax-free, the SEC crypto, and of course, on the third pillar is essential can cashflow investing, which is what we all talk about, and there are different parts of a portfolio for cash flow investing. There are certain things you do for tax benefits that certain things that you do for cash flow alone, and then others to cash flow and capital appreciation. That goes a lot into building out a cash flow portfolio, and then, of course, you have to position things for growth, which is part of this framework, and then the fifth part is protecting building a wall around everything that you’ve created and produced, positioned and then also redeployed into more cashflow investments. Tax strategy is big on that asset and estate planning, so forth. There are many ways to reduce taxes legally, and we cover them in all different parts of that, that wealth creation framework, but then reduce your taxes legally, the more money you will have to deploy into other areas, one of the mindsets that I see a lot and I was there at one stage too. It’s just that’s the journey especially of entrepreneurs. You always think that I just have to make more money that’s fine I’ll just make more money, solve my problems by generating more revenue in my business well how about you generate more revenues and you pay less tax? Now you really get to start to move the needle in what you’re doing in all aspects because it’s the biggest check you will ever write.

Brett:

Very well said M.C. Laubscher can be found at CashFlowNinja.com, and everything that he was just said is that’s why you want to build a team and be in a community and connect with me. They’re all become our own ninja journey of cash flow at some stage like daughters are in jujitsu, and they have their white belts and they just started out and there’s the black belt who’s teaching them and they’re just trying to just to get it going and their battle in and their discipline and then the focus and the fundamentals and they’re in their journey of this and then, one of my cousins or my nieces, it’s a better way to put it by brother’s daughter, like an M&A. Like she’s worked her way up from jujitsu to kickboxing to all that. Like, getting up there, but we’re all on this journey at some stage and the key is getting involved in productive planning, listening to podcasts like this and MC’s Cashflow Ninja Podcast so that you’re equipped and prepared for that so you can go to CashFlowNinja.com to learn about that more about that. So I want to touch on maybe another cashflow niche, as part of your book, The 21 Best CashFlow Niches that perhaps is a little bit more overlooked a little bit lost. Most of the listeners are real estate, entrepreneur business owners. So crypto was a great one because might be a little bit outside of where they’re at. Was there something else that kind of stuck out that you want to share with our audience?

M.C.:

I do cover businesses narrowed. I cover on-trend businesses, so one of the things they’ll share, and it’s kind of like the second part of the crypto. I figured it’d dovetail in nicely with this conversation. Because a lot of say, how do you act as an investor in that space? We know about the coins, it seems pretty risky. There’s a lot of unknowns. I would say growth curve offer learning or learning to overcome? Essentially one of my favourite strategies right now is the California Gold Rush Strategy in that specific space, and that includes looking at what happened during the California gold rush. Sure, yet the folks that were digging and panning and mining gold. But a fortune was made by folks that were building ancillary and symbiotic businesses in that space. For example, people that were selling the clothes, and the boots and the picks and the shovels, I mean, close think about Levi Strauss the fortune that Levi Strauss made during the California Gold Rush. Then also think about the people that were panning and mining and digging for gold, they had to stay somewhere.

Real estate comes into play there to eat somewhere restaurants, and taverns and so forth, they had to go somewhere for entertainment, there were folks positioning themselves there, then they had to go somewhere essentially, to go bank. So enters Wells Fargo, that the wells family might fortune during the California gold rush, the same opportunity exists as an investor in that space, looking at businesses that are poised for massive growth in a very, very, very niche. I’ll give an example, and your listeners and viewers might appreciate this. But what do you think is going to be one of the biggest problems that crypto in crypto traders or crypto folks that were early? What are some of the biggest issues? Taxes, so there are tax firms that will specialize in that niche to the crypto, investors? What are some of the other issues? While it’s fairly new? How do you transfer this to the next generation? How does this tie into estate planning? Well, guess what there are entrepreneurs building businesses, specifically in estate planning in that specific niche. I mean, we could go on and on. You don’t have to get even too exotic like real basic things, tax planning, estate planning. There’s a lot of different moving parts of that in that space. I see a lot of folks making really good positions, capital positions and allocations as investors by investing directly in these companies through private placements, and then there’s also another industry that is exploding, it’s not even quiet anymore.

But it’s most folks know about the decentralized finance kind of niche, which defies is what it goes for. It’s essentially crypto finance. But so there’s banking, insurance, all those different industries that are starting to evolve, because of the growth in that space of there are companies that are positioned in that space already, which you can invest in earlier, folks that have already seen dramatic results by following the California Gold Rush approach were folks that invested in platforms. There were folks that invested in Coinbase, through a private placement early on and saw the company grow significantly as crypto has adopted and eventually go public on the New York Stock Exchange. They’re now a public company that folks can buy and there were folks that were investors that saw well there’s going to be adoption we’ve all got to buy and sell up to a, a platform is a pretty good bet to make in that case. So that’s just a different way of approaching. But I think a lot of folks, I think this is one that a lot of people are gonna miss, and that’s why I want to make sure that I share with them. It’s an opportunity of a lifetime to follow that kind of the same strategy as the folks that really made a fortune during the California Gold Rush did.

Brett:

I’m from California grip California live in California now, and it is a gold rush right now it feels like a max mass exodus. A lot of people moving out to places like Texas and Tennessee and Florida and Nevada and Arizona. But the strategy still holds true. If you can make ancillary services to serve the people that are in that space. I love that estate planning, tax deferral, all of those other things. That’s what we do. We help people with capital, social capital gains, tax deferral, and so very cool. MC. That being said, we are running out of time, are you ready for the lightning round?

M.C.:

Absolutely.

Brett:

Knowing what you know now if you go back, we’ll just put it a year and a half ago, pre-COVID. I know because we’ve already had you on the show. We’ve done the other one when you were younger, but just pre COVID? What’s the one thing maybe you would have done differently or challenge yourself to do if you had a chance to do it all over again?

M.C.:

My companies are all virtual. We are in good stuff for that. I would say like, we didn’t have an in-person live event we were going to put we push that off to the future. Now, obviously, it’s all virtual. We would have probably done more with live events to have more of them in-person things that we would now it’s obviously a different ballgame. Some folks are doing it again, but it’s a little bit more challenging, and it’s going to continue to be more challenging. So that’s probably one of the things that I thought about. It’s like, man, if we had some live events, that would have been great. Maybe we’ll have those in the future, you’ll never know. But we’ll see. We’ll see how it plays out.

Brett:

What are you most curious about right now, for this next year that’s coming up.

M.C.:

I’m curious to see the speed at which a lot of the new technologies which are here will be implemented and executed. we’ve positioned ourselves you know, we’ve talked about the fourth industrial revolution quite a bit, whether it be AI robotics, 3d printing, the Internet of Things, 5g, all these technologies, it’s going to be pretty interesting to see it the speed at which it will be implemented. Because they’ve already started to roll out, I had surgery earlier this year, it was done by a robot. So these things are happening, and it’s happening at a rapid speed. I’m very interested to see how that happens, and what right it happens because it’s going to accelerate.

Brett:

Last question. After all your success all the people you’ve helped the 700 press interviews, releasing your new book, The 21 Best Cashflow Niches, how do you stay centred in your values? And how do you encourage charge to reach new heights?

M.C.:

It’s all about your mission and your purpose. I’m a very mission-driven person that just from an athletic background, and that helps me stay centred. I had a dad, when people asked, Where does the ninja come from? My dad is a very well known martial arts personality. He used to travel around the world and teach, 8 to 10 countries a year. He’s still doing it virtually from South Africa. But the one thing that I learned from my dad was that, and I learned this by watching him not by what he was telling me. But he got up every day, and he still does this. He’s 73. But he just turned 70 Any pursues excellence, and he’s Croft, he never thinks that he’s figured it all out. He never thinks that I’m good enough, and I’ve taken the same approach, and that’s why the brand is called cashflow ninja because I’ve taken the same approach to my journey. As an entrepreneur, as an investor, I just want to get better every day and pursue excellence in my craft, I will never know everything that there is to know. I love to learn. So this is something that I continue to do, and one of the things just interviewing some of the best minds in business and investing is, nobody has everything figured out that we all have blind spots, and that also motivates me to continue to study to continue to learn to figure out what I don’t know, to stay curious, and I also know that we’re going through massive changes, we’re going through massive disruption, we will continue to go through it just because of all the technologies that will employ everywhere. We’re going to have to stay, we’re going to have to stay humble, we’re going to have to stay focused, we’re going to have to figure out what’s going on constantly, and position ourselves as all these things are happening. So with the right frameworks, the right models, the right tools, such as the correct mindset. In your toolbox, you’re going to position yourself to figure out and see things for what they are and capitalize On economic opportunities because there will be a massive amount of

Brett:

them phenomenal MC allow sir thank you so much for being on the show. I absolutely love having you on the show I learned every single time I’m inspired by your wisdom and your dedication to your craft and serving, serving all of these cashflow ninjas out there right trying to be cashflow ninja more and more every single day I want to encourage you to keep doing what you’re doing. Keep being on mission and being on purpose and making a difference in people’s lives, and for our listeners who want to get in touch with you and remind them one last time what’s the best place for them to find you?

M.C.:

cashflow, Ninja cashflow ninja.com There’ll be a link to the book there too. It’s also available on Amazon, and when they grab a copy of the book on Amazon will actually if they screenshot their receipt, send it to my team at info at cashflow ninja comm will give them access to a digital version and audio version, a bonus section with curated interviews, a library of curated interviews, all that that’s covered in the book and more bonus features but everything’s available at cashflow ninja calm.

Brett:

Thanks, M.C. Laubscher. I also want to thank our listeners for listening to the episode of the capital gains tax solutions podcast. As always, we believe most high net worth individuals and those who help them they struggle with clarifying their capital gains tax deferral options, not having a clear plan is the enemy and using a proven tax deferral show such as the Deferred Sales Trust and getting with someone like M.C. to build your cash flow education and your strategy and executing on that is the best way for you to grow your wealth, and the Deferred Sales Trust to defer millions of dollars of capital gains tax when you sell cryptocurrency a business save a failed 1031 Exchange go to CapitalGainsTaxSolutions.com, learn more about that and I also want to invite you to a Free Mastermind. Learning about Deferred Sales Trust just for the first time considering for one of your clients. Everyone is welcome. We want to connect with you the CPA, the financial advisor, the business broker, the luxury realtor, and the investor is the owner who’s selling something that is subject to capital gains tax and you want to be empowered with your options and clarify what those are. Please join our mastermind every Friday at 10 am Pacific Standard Time, go to CapitalGainsTaxSolutions.com, it’s CapitalGainsTaxSolutions.com to Register. We’re also streaming eXpertTaxSecrets.com. We appreciate all the listeners out there and we hope you found a ton of value today. Please rate review, subscribe and share this with somebody who could help out. We appreciate everyone out there.