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Episode 2: The Seven Sources of Residual Income
163 Plays8 years ago
One of the cornerstones of how we work with clients at Uncommon Wealth Partners is to go beyond the traditional financial planning of investment advice and really roll up our sleeves and help our clients think through a much broader money strategy.
A topic that we always explore is the idea of residual income. Residual or passive income is money you continue to earn after the work is complete. (For most of us our jobs are active income – they only pay us if we keep showing up).
If you listened to the last episode, you’ll remember we mentioning the seven sources of residual income and in this podcast, we wanted to dive a little deeper into each. We explored the seven most common types of residual income and how you can begin to explore which ones might fit your family’s long-term financial plan.
You’ll quickly see that there are many ways that you can leverage your money to get you to retirement, or time freedom as we like to say, faster. It’s not about using them in order or using all of them, it’s more about finding the right options to help you meet your own personal goals of time freedom.
We, Phillip Ramsey and Bryan Dewhurst, are the founders of Uncommon Wealth Partners. We think differently about money.
Our philosophy is simple. We help people no matter where they are today. It’s about where you want to go that matters. We do this by helping each one of our clients define their goals, implement a plan, create wealth, and ultimately create time freedom. There are probably a lot of financial planners who promise the same thing. It’s how we get you there that is different.
We believe that one of the most significant gifts we can give to our clients in the getting to know you phase is to not talk about their money! Instead, we want to know what motivates you? If money were no object what would you do with your time? We believe answering those kinds of questions will help us when we finally talk about your money.
What you’ll learn about in this episode:
- What exactly is residual income?
- Residual Income Source #1 – Insurance
- Residual Income Source #2 – Rental Property
- Residual Income Source #3 - Investments
- Residual Income Source #4 – Small Business
- Residual Income Source #5 – Subscription Business Model
- Residual Income Source #6 – Royalties
- Residual Income Source #7 – Network Marketing
Ways to contact Phillip Ramsey and Bryan Dewhurst:
● Email: phillip@uncommonwealth.com ● Email: bryan@uncommonwealth.com
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Transcript
Defining the Uncommon Life
00:00:02
Speaker
Everyone dreams about living an uncommon life, but how we define that dream is very different for each of us. And for most, it's a lifelong pursuit.
Meet Your Hosts: Philip and Brian
00:00:11
Speaker
Welcome to the Uncommon Life Project podcast. We're going to introduce you to people who are living that life or enjoying the journey to get there. We're going to also give you some tools, tricks, and tips for starting or accelerating your own efforts to live an uncommon life.
00:00:27
Speaker
A life worth celebrating and savoring. Please welcome your hosts, Brian Dewhurst and Philip Ramsey. Hello and welcome to the Uncommon Life Project. I'm your host, Philip Ramsey. And I'm Brian Dewhurst. Thanks for joining us.
Mastering Residual Income Streams
00:00:41
Speaker
This is as promised as our last podcast kind of.
00:00:44
Speaker
talked about, this is the seven sources of residual income as Brian and I see it. And this really has been kind of a cultivation of Brian and I's practice over the last four and a half, five years of really perfecting this for our clients. So we wanted to go through the seven sources today, talk about them, not great detail, but more in depth than normal. So you guys can have a basic understanding what we think is the seven sources of residual income.
00:01:13
Speaker
Yeah, and I think we're looking at these very high level. And so, you know, we're not going to take a deep dive. We want our interviews on the podcast of people to highlight how different people are leveraging the seven sources. And so I think you'll see as the podcast progresses, how these kind of play out in different people's lives.
00:01:37
Speaker
For sure. And so this is, as we're talking about them, anybody can start out in any different number. So it's not like you have to start out with real estate or a policy that we talk about, but you can go into number four, like a business.
00:01:53
Speaker
Business starting your own business and maybe investments maybe somebody got into the seven sources residual income by buying investments and so there's not one that we normally just lead with we fill out our clients and depending on what the risk tolerance is that's what we'll jump into
Banking and Insurance Strategies
00:02:11
Speaker
and so.
00:02:11
Speaker
We really do feel like doing this, one, gives you control of your money more, and two, it de-risks you when you're having multiple streams of cash flow. And that's what we've seen as we study millionaires. So let's just jump right into it. And one, how would you define residual income, Brian?
00:02:32
Speaker
I would define residual income as some sort of upfront capital that's being invested or spent and then a subsequent revenue or cash flow stream that comes off of that investment into perpetuity. And so I think one of the easiest examples of that would just be kind of like a down payment on a rental property.
00:02:55
Speaker
And so yeah, you're putting your money in once and obviously we know owning a property, you're going to have expenses and that type of thing. But for the most part, rent's coming off of that property into perpetuity. Yes. And the key here is residual income is based on your capital working for you, not necessarily your time. And so that's what we really want to focus on when we're talking about residual income.
00:03:18
Speaker
So let's talk about the first one that we like to talk about in the seven sources of residual income and that is banking or an insurance policy or a proprietary I would say kind of strategy that we like to implement for our clients and that's one of you're going to be banking for the rest of your life.
00:03:38
Speaker
And as we know, interest rates at the bank are comical, little small, little small. And then my favorite part is when they send you the tax bill at the end of the year for the seven cents that it actually did pay your interest. So that's where we like to start is a banking strategy, depending on if we use the regular banks or a life insurance policy. But let's kind of dive in a little bit deeper with that strategy quickly, just for the listeners.
00:04:05
Speaker
Sure. So the important thing is that banking, if you think about it, is really just the movement of money through your economic engine.
00:04:15
Speaker
And if you're going to pursue these channels of residual income, that means you're going to put your money to work now as opposed to maybe sticking it in like a 401k and accessing it later. And so the need for banking and thus your need for cash flow management is going to increase. And so to have a strategy for that is of critical importance. And that with our strategy, and when you look back historically,
00:04:39
Speaker
And really, before all these interest rates got pushed to zero, the average interest rate in the United States at the banks was 5% to 6% on money market balances. I remember working at my mom's brokerage firm back in the late 90s and the money market on my brokerage account was paying 5.5%. Well, we just don't have that anymore.
00:04:59
Speaker
And like Philip said, even if you were to get that again, you're taxed on it. And if you need to use that money and pull it out to invest in something, you're going to stop earning interest on that cash. And so our strategy mitigates all of those things. We have guaranteed interest rate. We have a non-taxable or tax-deferred environment. And the money still compounds interest even if you access it via a loan. So it's a really powerful first step.
00:05:25
Speaker
for our entrepreneurs and business owners to start building residual income because it doesn't require them to hire anybody or to buy anything or to understand really anything at all. It's really just the movement of money through a new channel.
00:05:39
Speaker
Yeah, I think the key thing that you said there is we want to take that money out and use it for whatever our clients are passionate about to get another stream of residual income. And so that's the key thing about this whole thing is we don't want to set your money into an insurance policy and keep it there. We want to use that money. We also want to keep compounding on that money.
00:06:04
Speaker
inside of an atmosphere or economic engine that will produce residual income for the long term. We feel like as a life insurance policy structured correctly for our clients, it's a powerful tool to just get the seven sources or one of the seven sources of residual income off the ground
00:06:26
Speaker
And because we want to take that out and start using it for other multiple sources, it's a quick way. Now, it's not a get rich quick scheme at all. This is a process, a system over time that produces cash flow. And when done correctly, it can be a really nice compliment to whatever people want. Because at the end of the day, it's not captive inside that policy. It's doing whatever you want at the time.
00:06:49
Speaker
And what our clients like about it is sometimes they just don't have the opportunity that's presented themselves. So they're sitting in the policy, but it's earning something and it's doing multiple things for them. And so they get really excited. I shouldn't say get excited, but they're okay with us leaving it there instead of having that, that money burn a hole in their pocket in the bank and they're kind of itching to do something with
The Power of Real Estate
00:07:11
Speaker
it. So that is the first, I'd say,
00:07:16
Speaker
Yeah, first source of residual income. Second source is real estate. Oh, real estate. Oh, baby. So we typically, you know, we like real estate as the second stream because typically the cash flows can be more powerful and the tax environment and the capital appreciation of owning the property appears to be for most of our clients that are doing it and in a success that they've had and what we've witnessed.
00:07:45
Speaker
to be better and more consistent than the stock market. And I'm talking about generating income off of the stock market, not necessarily like buying the S&P going for growth. I'm saying if you want to generate income passively, real estate has been more powerful. And the two main reasons for that
00:08:02
Speaker
In my opinion, one, you can use leverage so you can use the bank's money so it requires less money down and the leverage is greater than what you could do in the stock market. Typically, a brokerage firm in the stock market would only leverage about 50%. A bank will let you go up to 80% or 90%.
00:08:19
Speaker
And so just the real estate factor allows more leverage and from a tax perspective, it's more efficient income for the risk that you're taking. So within real estate, Philip, share with our readers, there's just lots of different segments of real estate, lots of different segments. Our clients are investing in real estate, shed some light on those different sub sectors of real estate.
00:08:42
Speaker
Yeah, so the first thing I would say as your point is just this is usually a better stream of cash flow than getting it in the market. We had a client come to us and say, about $60,000, what should I do with that money? And after doing the math, it was a no-brainer to go drop that on an actual single family home.
00:09:03
Speaker
real estate portfolio or start that because the income that we're producing off of that was way higher than what we could get him in the stock market and so it was a it was a quick you know kind of I guess answer for him showing him the calculations. At the end of the day he was ecstatic thinking that we would actually think of him instead of just going straight out just yeah give us your money we'll put in the market.
00:09:25
Speaker
So back to your question about the multiple forms, there are so many out there. And this is where I kind of get excited about there's obviously the single family homes, there's the condos, there's apartment complexes, you can kind of scale that up. You can do mobile home parks.
00:09:43
Speaker
You can buy those, you can buy billboards, you can buy storage units. I mean, there are so many ways and facets that you can make cash flow out of your money by leveraging the bank in a smart way, but also using your smarts and intelligence to develop a deal. There are just so many ways that residual income can come, so it's not something that you want to close your mind off and just think, I have to have a rental property.
00:10:09
Speaker
that's not necessarily the case but a lot of times if you want to go to the next one that real estate will start the third form and that's a business. I'm sorry the fourth form which is a business but we can go back to investments but yeah so there's a lot of forms that that real estate can take it's not just owning a rental property.
00:10:31
Speaker
Yeah, I think the last thing I'd say on real estate, too, is you kind of talked about smart leverage. And with interest rates being incredibly low, historically below 6%, and to be able to purchase real estate in that interest rate environment is also beneficial. And then when you look at just coming out of the 0809 crisis,
00:10:53
Speaker
a lot of the big home builders were really hurt. So there's just not as many homes being built. Interest rates are low. And so it's a very conducive environment. And then when you look at the kids coming out of college, the millennials that have $40,000, $50,000, $60,000 a student loan debt, they're really not in a position for the most part on average to buy their first house. So we do think rental properties is a nice piece to an overall puzzle.
00:11:19
Speaker
And the, the interest rate and the environment has been conducive to that over the last eight years. So yeah. And not only that, like you got to think about this scaling it in a different way than just having renters in your property. Like with Airbnb, they have so many different ways that like, you don't have to necessarily have this. Oh, we have a squatter that hasn't paid us for the last four months. Like there's different ways to think about that. And so depending on where you're at, they can be really creative. So sure.
00:11:48
Speaker
Don't take that out. That's a really powerful form of residual income. Let's go to investments and residual income on investments. What does that mean? Because all people think about is their 401k. Right. We're not talking about your 401k. This would be additional savings. You've got your six-month emergency fund or whatever, that type of money.
00:12:10
Speaker
And you want to do something, you want to see your money go to work, but you're saying, I don't want to plunge toilets. It's funny, we always get that as like the number one rebuttal to owning a rental property. I don't want to plunge toilets at two in the morning. Which we get. We get that. Totally get that. I don't either.
00:12:27
Speaker
So investment, this would be like, hey, I got an extra 50 grand. I want to put it into the market, into something that's bearing interest just because the bank doesn't pay you interest anymore. And so, yeah, we can structure an investment portfolio to generate current income. So that would have like an individual or joint registration for you and your wife.
00:12:49
Speaker
different than like an IRA or Roth IRA and you want that money to generate monthly income and you want to take that income and go on a trip or invest in something else or pay for AAU basketball program that costs $500 a month, whatever it is. We help people with that and the average I'd say rate of return you could expect from an income perspective, obviously that can go up and down.
00:13:12
Speaker
commensurate how volatile the portfolio is, but I mean you can generate four to six percent in the stock market with a somewhat diversified portfolio. I said just because in 0809 everything went down, but you can spread that across energy and financials and technology and several different things, different sectors to generate that type of yield. Where less bullish on bonds, obviously the interest rates go up, bond prices can go down and so bonds and especially bond mutual funds aren't
00:13:41
Speaker
necessarily the best place to generate income in a rising rate environment doesn't mean they're guaranteed loser either, but just something you have to be mindful of.
00:13:50
Speaker
But again, we wouldn't typically leverage brokerage account for income. Let's take an example of that $50,000.
Beyond Traditional Investments
00:14:01
Speaker
You could buy a $200,000 property that you're earning rent on based on kind of the $200,000 number. Whereas if you put $50,000 in the market to generate income, you're really only generating on the $50,000. So that's really why real estate is more powerful from an income potential
00:14:18
Speaker
than the brokerage account. But some people don't want to deal with it and it is a good alternative to generate residual income. And if you hire someone else to manage it, it can be passive residual income.
00:14:29
Speaker
Yeah, we have a lot of our clients that will jump into this stream of residual income. And they like it because they get this feeling and they start understanding how their money is starting to work for them instead of working their whole life and then at this magical age of 67 or whenever the retirement age is, then they jump off and then they now have been working their whole life and now they need their money to work for them. And that's a big transition for a lot of people. And so doing this and starting this, we call it an engine account.
00:14:59
Speaker
that starts paying you monthly earlier, it gets you starting to understand that your money does kick off income for you. And this can be other things and if you're a little bit older, it can be a pension, it can be annuities. Yeah. It can be. So as we branch into the retirement space, obviously, and then you're 59 and a half and you can access these monies that you've saved for most of your life.
00:15:23
Speaker
then we will start generating income off those other financial instruments, social security pension, as you mentioned. And that's obviously part of most financial advisors due diligence and planning efforts. So we've kind of ignored those for the sake of this argument or discussion on residual income because we want people focused on here and now and a lot of people aren't retired yet.
00:15:46
Speaker
Totally. So let's go to the fourth residual income and that's business. And business can be obviously intertwined with all of these or with none of them. What we've found is that businesses are actually, it's powerful to be more efficient on taxes and to help you actually control some more of your income in a way that you feel is worth it for you. So let's talk more about business.
00:16:13
Speaker
Yeah. And so like Philip said, we could generate a business around a lot of different things. And so when we talk about business, I would say, you know, and again, we have a lot of people that really like Robert Kiyosaki. So when you look at the cashflow quadrant,
00:16:29
Speaker
And how you go from employed to self employed to business owner to investor i think we're talking about here in the business category for the job is the self employed and business owner. I think a lot of people start out in the self employed space you know the local dentist chiropractor financial advisor that type of thing.
00:16:51
Speaker
And then potentially, depending on each individual's vision, you can migrate to more of a business owner where you're able to step out from that business.
00:17:02
Speaker
you know, have employees and have it run while you're not there. So for us, this is the self-employed business owner space. I would say more of your traditional business, although that's shifting every day now with, you know, we have clients that are selling stuff on Amazon from other countries. And there's just lots of different ways to make money. And I think that's one of the neatest parts.
00:17:22
Speaker
that I'm most excited about and know you are too about the podcast is just highlighting different types of business owners and how they're able to start a business and then start another business that's very complimentary to their main business.
Business and Modern Income Models
00:17:35
Speaker
And we're going to talk about that a lot in detail. And so yeah, but from what we've seen, owning a business has typically helped people generate wealth and it allows people to pivot in owning different assets or streams of income.
00:17:50
Speaker
For example, if you own the building that your business operates in, your one business can pay the building business rent, and that has a different tax treatment than you taking income out of your business. So there's lots of different ways to thus pivot in building wealth out of your business, and we'll continue to talk about those things.
00:18:09
Speaker
For sure. And even health insurance, there's quirky things that you can do with health insurance that one would never even think of when you own a business. And so if you have questions on that, I'm sure you probably do reach out to us and we can, we can talk through your specific case and your specific, um, I guess just where you're going through what your strategy is. And maybe we can walk through some ways that you can save on health insurance because that's a huge hot button right now.
00:18:34
Speaker
Okay. Subscription and affiliate revenue. Yes. This is, uh, Philip and I read a book. Uh, I'm going to highlight a book, which I don't want to do on every point, but I think probably arguably one of the best business books I've ever read. It's called the automatic customer. Uh,
00:18:49
Speaker
And I don't remember the author's name, but anyways, you'll find if you do that on Amazon. But he kind of walks through the power of having a subscription model business or adding a subscription model business to your existing brick and mortar business or franchise, whatever you own.
00:19:07
Speaker
And so, Philip and I have personally added a subscription model to our business to try to just continue to round out our service offering to people to make it clear that we want you to ask questions, we want to help you with everything that you don't understand or that you want to know more about and that you have access to us 24-7 throughout the year as our clients.
00:19:30
Speaker
This I think too we're seeing this now when you look at Netflix Costco Sam's Club Amazon Prime All these subscription box services The subscription model is getting very very popular
00:19:46
Speaker
for lots of different types of businesses. And so we're seeing lots of our business owner clients adopting the subscription model or an affiliate model. Affiliate model is really where you have a following, whether you've cultivated that on YouTube or more of a traditional business and you're highlighting or promoting different things that you like or that you've benefited from.
00:20:10
Speaker
and those people go on to purchase from that recommendation or referral and you're given like an affiliate commission from the place you're referring people to. So that's kind of the subscription model and affiliate and I cannot wait to highlight more business owners that are leveraging that because I think a lot of people that are
00:20:30
Speaker
in a traditional job and they want to be maybe on a different side, I think this is a really small stepping stone that a lot of people can take to start building residual income and building that belief in their passion and stepping out in kind of the term of like a business, but getting that income flowing while they're still at their day job.
00:20:53
Speaker
Yeah, it's a great point and it just gives continuity. It gives just streamlined cash flow, understanding your expenses and all your revenue. It just helps smooth those transitions out. So I think that's a great point that you made, Brian. It's a great way to step off into this employed mindset to now I'm working for myself.
00:21:15
Speaker
Really great compliment and it can go throughout all different kind of businesses even ones that you you wouldn't think of and that's that book does a great job of talking about so so That's one through five. What's uh, can you tell the listeners what number six is? Yeah royalties royalties and this one can be regal doesn't it does sound good in it and
00:21:37
Speaker
This is more like writing a book, getting this, I would say Brian, you have a better understanding of, you always say this is actually the one that really is the passive residual. You don't really have to work that hard for it. You do something once and it just pays you forever.
00:21:54
Speaker
Yeah, I think that's true. I think with any form of residual income, the misnomer is that it's like you do it once and you just forget about it and money just comes in and you're on a beach somewhere. We don't really feel that's realistic with any of these. This one might be the exception to the rule.
00:22:13
Speaker
If you were to design something like a product and let's say 3M buys that from you or whoever, then you sell the rights to that, they're going to develop it, they're going to market it, and they're going to sell it. And they're just going to send you a royalty commission check in the mail. Well, that's what we'd consider like mailbox money.
00:22:32
Speaker
Or if you're a famous musician and you're writing music and people are listening to that 30 years from now, that's generating a royalty check depending on how you set up the original contract when you cut the album. But when you look at that, I look at like a Michael Jackson or a Prince, Elvis. These people that are still getting paid, they had a tremendous amount of effort that went into becoming an artist of that caliber. So it's not like,
00:23:00
Speaker
they weren't pouring their entire life into their craft in order to get to that point. So again, it's not free. But if you sold the rights to something that you did, it could be truly passive where you did it once and you're not doing anymore and you're still getting paid on it.
00:23:16
Speaker
But yeah, royalties, I think, would include e-books. You're seeing a lot of people write books on Amazon Kindle. You know, people are producing music for podcasts. Like, we paid somebody a royalty for our music intro on our podcast. Like, we didn't do that. And so there's just lots of different ways now with the Internet and content to be created. Even, I would say, children. Like, on YouTube. Totally. Your son absolutely loves this YouTube channel, and he is a millionaire just because he has so many followers. Like, it's crazy.
00:23:46
Speaker
My, my child is not a millionaire, but he's following a millionaire. Sorry. Sorry. No. All right. So the seventh one, this is the final one. And this is like the most controversial because the most polarizing. Yes. Brian is all about it. And I would say that I shouldn't say he's all about it, but I am very good. He respects it. I would, I say I do respect it. I just don't want any part of
Controversial Paths: Network Marketing
00:24:11
Speaker
it. So, and it is network marketing. So tell me why you love us so much.
00:24:15
Speaker
I want to go second. All right, so I think network marketing, although people have made a lot of money, it seems a little bit sleazy to me that you have to go out and try to implore family and friends to start their own business to then sell something that you would get residual off of. It just feels crunchy and yucky to me. I understand that people have done it and there's probably really good products out there.
00:24:44
Speaker
But just for me and my personality, as soon as I hear it's a network marketing thing, I completely discredit it. And that's probably a fault of mine. But yeah, there is something to be said about having somebody else do something for you that gives you a passive income. I get that.
00:25:01
Speaker
I've just made a personal, I guess, stand on network marketing when I was in college saying I would never do that. And not saying there's not good products out there, I just have trouble doing it. So that would be my stance. I value and respect Brian's approach because there are some great people that are in that industry
00:25:22
Speaker
And there's, like I said, great products, just I can never get over that personal mental block of like, oh, okay, I got to start a business now. So.
00:25:31
Speaker
Definitely. I do like network marketing and I'm glad that you're open to being on this list because I do think it's different from owning a business and I do think it's different from the subscription model or affiliate model. So I think it's warranted to be on the list and I can't wait to have some people in network marketing that are true professionals on the podcast because I think it's going to be fun. Totally agree.
00:25:59
Speaker
I do respect the industry for several reasons. I'll make it brief though. One is the startup cost. When we look at a traditional business or even real estate for that matter or putting money in the market, a lot of people in America aren't in a position to start with a lot of money. To be able to get into a business like network marketing for most companies that I've researched or looked at,
00:26:22
Speaker
It's less than $1,000 to get started. There's proven products. There's proven systems. You don't have to mess with payroll or setting up websites or legal entities. So a lot of it's just turnkey and you can step in and you can be passionate about something.
00:26:40
Speaker
And you can go out and earn a living doing that i think the other thing too because we've all had it done wrong to us right i think the other thing i'd say with that is to is it forces you if you're gonna be good at it you're gonna stay in it forces you. To personally develop at a much faster rate because you're getting told no basis.
00:26:59
Speaker
And a lot of people go through life never putting themselves out there and they don't hear no a lot and they're just really not in a position mentally or emotionally to handle that and that's not a bad thing or a good thing but I just think network marketing forces you to really grow as an individual and because it's low cost anybody can get in.
00:27:20
Speaker
And I think it's kind of that like, I don't know, cheesily, the American dream thing. Like it's an even playing field. Everybody has the same shot. And I think they do have quality products and that different type of thing. And so, and I think too, the last thing I'd say is as you look at the commoditization of products with Sam's Club, Costco, Amazon, and Walmart, it is becoming, I think, a more popular
00:27:44
Speaker
tool for companies to bring products to market because otherwise, if you don't get in on one of those four platforms, you're not selling anything. So it is a way to build culture and belief and community and I'm excited to dig into it more with our guests. And I'm excited to have somebody on there and the podcast as well because I have a lot of questions for them.
00:28:03
Speaker
Not really. No, I respect that it's an uphill battle every day. And I do respect that you have to break through that barrier every day and get heard no often. And so I do respect that. So those are great points. Okay. So when do you start doing this? And it's right now. When can you start residual income? And it's right now, depending on who you are, your risk tolerance. Sometimes it just takes somebody, you sitting in front of somebody and they're encouraging and
00:28:29
Speaker
believing in you, to do these things. But what I'll tell you is it usually doesn't happen with just one. It happens with one and then you get the other and then you start a business around the whole thing.
Diversifying Income Streams
00:28:39
Speaker
It seems like it starts dominoing to this point where you feel like you have more control of your cash flow and you know how much you need to cover your monthly expenses and that is when you get out of the rat race, as Robert Kiyosaki says. And so it's more contagious than you'd ever think.
00:28:57
Speaker
And, I mean, you can develop a family business around it. Like there's camaraderie that it feels good to be uncommon a little bit. And so to be able to work with people every day, sitting in front of them, depending on how old they are, starting to encourage them and talk about their passions. It is, I mean, this, this career that Brian and I have, it's amazing because we get to encourage people every day to do it. For sure.
00:29:20
Speaker
I think the other thing I'd say on that point is when you look at the retirement money and social security, a lot of the stuff that people are putting their money into or a lot of types of accounts, there's loopholes or restrictions on them in regards to when you can access that money, most specifically with IRAs of 59.5.
00:29:42
Speaker
Social Security is really mid-60s if you want the full amount. There's a lot of restrictions on that money. The reason that we're focused on residual income right now is because a lot of people want more income. They want it right now.
00:29:58
Speaker
And they've already got money that's tied up. They don't want more money tied up, but they don't know what to do with their money that's just sitting in the bank. And so, like you said, once we see our clients go down this path and each path is different with seven sources and how they start and leverage those different things.
00:30:14
Speaker
But they do, they catch that bug and that control and that immediate cashflow and having to make decisions. And it's just, it's infectious and it's, it's just so much fun to be a part of. And I can't wait to just, for you, the listeners to get to hear more and more of these stories, uh, of what the people are doing to just generate money right now. Cause some of them we'd never even would have thought we hear some, some funny and random stuff. But, uh, yeah, we're excited.
00:30:41
Speaker
So, the last thing I want to say is just how do people fall into this residual income kind of mindset? And there's many paths to that as well. And so, we just talked to somebody and they said, you know, it was kind of dumb luck. You know, I just couldn't sell my house.
00:30:57
Speaker
And so I talked to a friend and he said, why don't you do as kind of an executive rental suite. And he's like, all right, I guess I'll do that. And everything he did was getting him closer and closer to this residual mindset and getting this seven sources of residual income. He just never knew it. He just kind of fell into it. So there's that way. There's working for somebody else that's more of a business owner that
00:31:18
Speaker
has completely dedicated their life to this kind of seven sources. There's that way. You have parents and grandparents. Your grandfather was a mentor in that regard to you, I know.
00:31:31
Speaker
Yeah, and you think about it, and we see this a lot, is our kind of parents' generations and the people that are going to retire right now, they've had this employee mindset with a 401k and maybe a pension, but our grandparents, skip a generation, they had a more entrepreneurial mindset of a business owner, and my grandfather, as Brian mentioned, a mentor to me, owned a mobile home park.
00:31:55
Speaker
And I can only imagine when he went home and told his wife, my grandmother, that they were going to own a mobile home park, the thoughts that were going through her head. But to see my grandfather being a trendsetter in that way, and now how it's continuing to give our family benefits and blessings, it's a powerful tool. And my father was such a hardworking man that worked at MidAmerican Energy,
00:32:21
Speaker
for 40 plus, 45 plus years and just seeing the road he went down and I respect him. I mean, he's one of my greatest mentors, closest friend, best friend. I just have a different mindset. I just don't want to go down that path and the way that he has crafted his life has been so powerful for us and my family. I resort back to a little bit more of my grandfather's entrepreneurial ways of doing multiple reasons and
00:32:49
Speaker
Streams of cash flow and i would say now and maybe we'll have my dad on but he would say that he probably wish he would have kind of gone that route as well so sure there's a lot of ways mentorship we've talked about that maybe a mentor of yours has that. Mindset of hey we need to get you some multiple streams of India and i think everybody should have a mentor.
Guidance and Resources for Residual Income
00:33:09
Speaker
And I think obviously we see, you know, we run into a lot of people and meet with a lot of people and they always say like, well, I've read this book or this book and, you know, Robert Kiyosaki's name comes up a lot. I think a lot of people really resonate with what he's saying. But then there's that.
00:33:24
Speaker
that void or that gap of actually implementing those philosophies and purchasing that first rental property or whatever. And so that's just where we like to help people and meet people at. And I think conversely, we meet a lot of people that, you know, I'm going to bring up your uncle, Dave Ramsey, read a lot of Dave Ramsey's stuff. Totally not my uncle, by the way. Totally not. But we always say it, which is kind of fun.
00:33:49
Speaker
Philip would have red hair if he were. Anyways, a lot of people read Dave Ramsey and it's interesting that a lot of the advice Dave Ramsey gives, it doesn't seem like that's actually how he made money. He's owned a very successful and profitable business.
00:34:05
Speaker
You know and has multiple streams and channels of income But it seems like a lot of his advice is sent around setting it and forget it So it's we kind of play on that a lot and have fun with that We really respect Dave and you know his budgeting and getting to understand where your money's going all that is totally sound advice but anyway, so yeah books and just
00:34:27
Speaker
learning from other people but then actually taking that step of action and implementation and like I'm gonna do this and figure it out and then taking the plunge.
00:34:37
Speaker
For sure. Yeah, I'd say the only thing, the last way I was just thinking is CPAs and accountants sometimes will push people into this residual income of starting a business because they know that there's tax benefits for doing so. There's many ways to do this. What I would say now is if you are interested and you're leaning in, what the next steps would be?
00:34:59
Speaker
Would be give us a call reach out to us. We would love to talk to you. Where are you at? Where are you going? And is this someplace that you want to start kind of heading down? This is kind of a treacherous I shouldn't say treacherous, but it's a daunting journey and to to have somebody to be able to bounce ideas off of is Priceless and you can talk to anybody that's actually gone down this path But the mind shift that needs to happen in people one. It's amazing But two sometimes it's kind of hard to get there. Yeah
00:35:29
Speaker
So, if you want to schedule a 15-minute consultation with us, you can find us on at uncommonwealth.com. There's a link to our schedule and it's just a 15-minute free consultation call. And we also have a PDF e-book that we have available to you as well that actually dives a little bit deeper into the seven sources of residual income that complements this podcast.
00:35:53
Speaker
And it has a workbook that we've created to establish a baseline of the resources and talents and assets that you have access to. And that's just not money. That's also skills, passions, people and different things that you've encountered in your life that you could leverage. And so we have a lot on this and we're going to continue to talk to talk about it. And our next podcast, we will be introducing our first.
00:36:21
Speaker
interview. Yeah, which I'm super excited about. So guys, this is the Uncommon Life Project. And that's exactly where we're at. We are going to be interviewing people. That's where Brian and I came from. And that's where our practice is headed. And so, guys, we are excited you are on this journey with us. Thank you for listening. Like this, give us a good rating so we can get to more people and we can we can reach more people because this this Uncommon Life is worth it. So thanks for listening. And we'll be back with another podcast. Thanks, everybody.
00:36:51
Speaker
That's all for this episode of the Uncommon Life Project, brought to you by Uncommon Wealth Partners. Be sure to visit uncommonwealth.com to learn more about our services. Don't miss an episode as we introduce you to inspiring people who are actively pursuing an uncommon life.