Your Financial Foundation Might Be Backwards

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Jason K Powers: Welcome to Make Your Wealth Work, a practical show

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for builders, entrepreneurs, and anyone who wants to think like one.

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I am here with Joe Pantozzi, and this is Jason K. Powers.

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Today, we are talking about something most people never stop to really map out.

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When you need cash, where do you actually go to get it?

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And, and does that source help you build long-term stability, or does it

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help you depend on outside lenders?

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through some simple framework using visuals.

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So if you are listening, feel free to jump over to video sometime

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and check out the visuals.

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But first, the common source of cash people rely on, and then the

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order of operation that makes a real financial foundation that's

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protecting and saving and growing.

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And Joe, how you doing today?

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I'm doing great.

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I'm, I'm, I'm always, I'm always excited and, and I'm always, uh, trying to

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think of the, the most fundamental ways to discuss these concepts because the

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longer I go down the road talking about finance, the more I realize it's, it's a

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little bit of a veiled subject to people.

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They're not all that comfortable with it, although they handle money every

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single day of their lives, they handle wealth every single day of their lives.

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And, and I, I want you to be comfortable with your wealth because you're

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gonna have millions and millions of dollars flowing through your hands.

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And, and, and a passion of ours is to see that you can hold on to more,

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and more, and more of it so you can do the things that you wanna do, help

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the people that you wanna help, grow the things you wanna grow, create the

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inheritance or the gifts, support the causes that you wanna, wanna support.

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And, and I always say it, it's become kind of a mantra to

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me, control leads to wealth.

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So you gotta start with control.

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Control leads to wealth, and wealth leads to freedom.

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Jason K Powers: you know, as

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So there you go.

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Jason K Powers: were talking the other day about, a person we had spoken with

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that really, um, was going to do more financing and, and they're like, "Okay,

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well, I'll just, I'll just finance it more and continue financing what

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I'm doing." And I think the idea was, you know, most people don't have a,

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I would say, a capital access plan.

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They have a next paycheck plan.

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And that happens so much that these kinds of conversations are needed.

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Let's understand, where is the money coming from?

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And, and so I think as we talk today, you know, the goal isn't to, to shame anyone.

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It's to get eyes open and, and start thinking like an owner your own money.

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Mm-hmm.

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Yep.

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Jason K Powers: Yeah.

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So I, I wanna, I wanna br- I wanna kind of broaden the conversation

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about what's possibly available.

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And, and of course, I have a bias.

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W- I, I think there are more efficient opportunities, more

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efficient assets to access, and less efficient assets to access.

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But it's more important that you have access to some financial

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assets that you do control.

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They could be less efficient, but I'd rather you had c- control over less

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efficient access than no control and being at the mercy of someone who's

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gonna pull all your strings, push all your buttons, and, and make you jump

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through hoops to qualify for their loan.

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Jason K Powers: Yeah, that's right.

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That's right.

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Well, let's dive in and check it out.

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We have, uh, a good graphic coming up here, and it's-- you know, this

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is about priorities, trade-offs, and building a foundation.

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A-and this first one we wanna look at is really about where

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do people access capital?

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Right.

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Right.

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So I'm gonna start with the, with the big boogeyman and someplace where I

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really want... It, it, it's, it's my desire, my opinion, my, uh, absolutely

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my bias that you should rely less and less on, and that's outside banks.

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And, and we can spend the time talking about why you don't wanna rely.

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Now, you may have an opportunity here or there to get a very, very

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attractive loan from an outside bank on a, on a spot basis.

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I mean, I'm sitting in a house with a 3% 30-year mortgage.

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It's a pretty good loan.

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Ultimately, I'll pay that loan off, but right now it's a pretty good loan.

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Do I wanna sit in the house with a 7% loan?

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No, I don't.

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But when we're talking about outside banks for lending to us on a regular

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basis to support our business, to make h- alternative investments, to b- uh,

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buy a, a second home or build a, build a house near the beach to build investment

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property, rental property, y- you don't wanna have to go back to that outside

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bank continually because the vagaries, the volatility of lending practices

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and terms and rates and payments is ultimately going to, to skew in favor

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of the banks and not in your favor.

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And ultimately, all the equity, all the wealth, all the growth, all the,

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all the profits go to the outside bank.

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Okay

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So cash is an obvious, is an obvious alternative.

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And we, we want people to understand that cash has limitations, but you're way more

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limited if you don't have cash, right?

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Is it great to have a million dollars sitting in cash?

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Better than not having it.

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But I don't want to have money sitting.

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I don't want to have cash sitting.

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Do I want to invest in alternatives and real estate and, and portfolios

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and the things that clients like?

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Absolutely.

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I want our clients to put their money where they want to put their money.

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We're mostly concerned about building the support system, the lending

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system, the banking system, the collateralization and understanding

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the relationship between them.

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Cash is a great place, is a great asset to have money in, have wealth

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in, but not long term, right?

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Market margin.

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If you have a market account, if you have a stock market account, a Wall Street

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account, you can access money through loans against that market account.

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And those loans will be more market rate.

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It won't be something where you've got a fixed rate for the next 10 years.

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Your rate is going to fluctuate.

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There are going to be positives and negatives to borrowing

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against the stock market account.

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But I'm going to continue to say it's more positive to have access

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than not to have any access.

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So as we list all these things, we're, we're, we're, we're going forward

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with the premise all these things are positive in their own realm,

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in their own perspective, right?

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So gold and silver.

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Is it easy to cash in gold and silver?

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No, because it depends on today's, um, spot price, right?

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Is it easy to borrow against it?

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Absolutely no.

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Is it easy to liquidate some and keep some?

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Of course.

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It all depends on, on timing.

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Better to have it than not to have it.

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What about real estate?

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Well, how can I liquidate real estate?

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Well, I could borrow against it.

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First mortgage, second mortgage.

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Jason's more familiar with HELOCs than I am, but various types of loans against

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real estate, then we can obtain collateral capital to put into the next venture.

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So we can capitalize our first piece of real estate to buy our second

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and on and on, just giving kind of a general treatment about these assets.

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Life insurance to me is an obvious asset that you can borrow against, go

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to the insurance company and get a great attractive rate, long-term rate, low rate,

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interest-only rate, et cetera, et cetera.

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Great.

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Again, we're just listing the assets right now.

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CDs.

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I don't come across a lot of people who have CDs, but certific- certificates

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of deposit are an attractive option for very short-term money, six

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months, a year, 18 months, et cetera.

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401s.

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Do you have access to cash through 401s?

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Of course you do.

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Very limited opportunity.

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You can only borrow $50,000.

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You can't borrow more than that.

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You've got to pay it back within five years.

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It's got to come out of your paycheck.

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You've got to continually be employed at that employer in order to have access.

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The, the, the money that you're borrowing against is going to receive the

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interest rate that you're paying back.

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It's not going to receive market rates and your interest payments both.

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So you're going to have limited market growth on the borrowed funds.

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There's pros and cons.

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Alternatives.

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We can go anyplace with alternatives.

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There's limited, uh, liquidity depending on what the alternative is.

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Jason K Powers: Crypto's

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But the point I...

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Jason K Powers: big one.

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I'm sorry, go ahead.

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Jason K Powers: Crypto is a big one.

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Sure it is.

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Jason K Powers: Yeah.

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the opportunity for liquidity?

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Jason K Powers: Right.

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Right.

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You can sell s- you can sell

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Jason K Powers: like, you know, when I

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some.

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Jason K Powers: whole list, when I look at this whole list, it

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Mm-hmm.

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Jason K Powers: you know, most of these opt-- while they're op--

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while they are options, most of these are either restricted or

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volatile or illiquid or expensive.

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Right.

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Now, the reason I want to keep on listing these things is I want our clients to

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become comfortable with the fact there's not only one place to access capital.

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I think it's more important for folks to understand you're going to

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need access to capital throughout your life, so you're going to want

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to make diversified investments, and we use that word very generically

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c- because that could go anywhere.

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It could go into business, it can go into real estate, it can go into

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ideas, opportunities, inventions that your friends or family or, or

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people you're close with come across and you want to take some money and

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put it into somebody's new idea.

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Eventually, you're going to have kids that you want to pay

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for college or private school.

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You don't want to go into the, into the market to get money for tuition.

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So there's an endless, uh, stream of needs during your lifetime, and where I

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find people mostly leaning on is on the, the debt market, credit markets, loans,

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toxic credit cards, um, SBA Um, lines of credit that are fluctuating and that

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don't give clients a long-term promise of what that loan's gonna look like.

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I, I... A long time ago, I had a seven-year ARM on my house.

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Jason K Powers: Yeah.

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Screaming rate.

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It was in the fours, I think, threes and fours.

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After seven years, you absolutely had to refinance, didn't you?

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Because then, uh, in the seven years, it was, it was a low

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rate, and it was interest only.

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It was amazing.

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At the end of seven years, it was still interest only, which

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is a good or bad thing, but now you're subject to market rates.

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Guess what happened before I refinanced?

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The rate was about to double, right?

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Is it terrible?

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No.

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But you need to walk into, into these credit relationships with your eyes

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open, always understanding that I am gonna need a second car down the road.

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I'm gonna need to get rid of that car.

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It's worn out.

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I'm tired of it.

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It's not big enough for the family.

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I'm gonna need to get the next car.

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Cars wear out.

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They, they rust out.

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They get in accidents.

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We need to replace them.

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We're gonna have a need to finance cars or purchase cars or own

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cars during our entire lifetime.

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That's a financial drain if you don't work the math correctly.

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Jason K Powers: Right.

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Right.

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That's a repeated thing.

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I mean, things like cars, we're all in-- Here in America, right, if you're

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gonna have a vehicle, you know you're gonna need another one at some point.

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You know you're gonna need another one at some point.

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Even the short-term cycles, you know, you mentioned tuition, you

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know, for private school or college.

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I-as long as you're paying, so, you know, kids in private school.

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If I pay for my kids in private school, so that's an annual thing we've gotta pay.

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know that is a recurring expense.

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I know a car eventually is gonna be a recurring expense.

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know, investments and business is a little bit different, but you still

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have some, some type of recurrence time.

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Listen, this is the name of the ballgame right here.

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So many of our clients are in so many different kinds of businesses.

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They're opening brand-new businesses.

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They're expanding businesses.

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They're investing in, in different kinds, um... They're

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becoming serial entrepreneurs.

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They own a car wash and a grocery store and another, another opportunity.

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They own different kinds of businesses, a manufacturing business.

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They want to expand.

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They wanna sell.

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They wanna bring in partners.

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They wanna expand their, th- their products that they sell.

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They wanna expand marketing, go out of state, out of country.

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They're gonna need capital all the time.

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Business owners who have been in business, who have a brick-and-mortar,

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who have employees understand the need for capital is, is continual.

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Jason K Powers: we talked

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What we're recommending... Go ahead, please

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Jason K Powers: i-it's, it's... We have all these opportunities.

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We have this need for access to capital.

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so I think the question, the common question people... Not even

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the specific question, but it's: Where am I gonna access this?

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You know, even from an emergency standpoint, you know, if, if

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something happens tomorrow, which of these would you access first?

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Which of these would you actually use first?

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If you had money coming from all of these different sources, which

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ones can you actually touch?

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You know?

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and so here we are, we're looking for solutions.

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Like, what are the solutions?

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What are the solutions?

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What are the solutions?

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think too often people are searching for a solution before we even have a foundation.

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And that's-- We, we wanna skip that part, you know?

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We

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That, that's a great point.

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Jason K Powers: you know, and we wanna, we wanna skip it and go, "I

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just need the solution. Don't-- I don't need the foundation." Well, look,

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man, we're gonna be having the same conversation in two more years from

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now don't get a foundation in place.

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You may fix something short-term, but if you don't get a foundation in

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place, buddy, you're gonna be making the same decisions over and over and

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Mm-hmm.

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Jason K Powers: again.

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And you know, I've been doing this for a long time and

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I still hate the word discipline.

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I still hate the word plan.

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Because plans are subject to change.

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I mean, practically when you write the plan down on paper, the next day it's

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old and obsolete and it needs revision.

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But you know what?

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If you don't have that first slice of paper with ideas put down on it, then

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what you're doing is you're throwing money and ideas and energy and anxiety in all

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different directions, and you're probably not gonna create as, as, as solid an

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opportunity, as solid a career, as solid a business as you would if you had a plan.

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Jason K Powers: Mm-hmm.

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Sure.

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nine items.

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What if you had some money, some measure of wealth in all these nine, nine items?

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I would say you're a genius.

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I'm not gonna criticize anybody who has a million dollars in any of these things,

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or a million dollars divided up in any of these thing, any of these things.

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My anxiety, my stress level, my worry is for people, um, who are

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on the rat wheel, who are living on credit and not building up anything.

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Or maybe they're living on credit and they're throwing too much into

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their retirement plan because they're so worried about, about the future.

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But your, your future retirement plan is, is disintegrating in terms of purchasing

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power while you're, while you're swamped, you're drowning in toxic credit card debt.

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You're out, you're out of balance.

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So even that bears a conversation and, and that's where I- Where Jason and I

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wanna be kind of focused on going back to the basics and saying you need to

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protect before you do anything else.

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I've met so many people who don't have that protection plan in place,

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and when we talk about protection, here, here's a few things.

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Protecting your income.

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If you become sick or hurt or disabled in some manner or form, you're

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gonna need some kind of protection.

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Either your, your employer, if you have an employer, is gonna continue

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your paycheck for the next 30 years, which is almost unheard of, or your

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employer is gonna continue your paycheck for a limited period of time.

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And so the question becomes, where am I gonna get my paycheck

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when my guarantee stops?

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You need to protect.

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You need to be protected in c- if somebody sues you, slip and fall, hurt

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on your property, your eight-year-old slaps somebody with a baseball bat

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and, and they, and they have an injury.

Joe Pantozzi: 00:18:05

I mean, you, you die.

Joe Pantozzi: 00:18:06

You need... Your family needs financial protection in case you die.

Joe Pantozzi: 00:18:08

You need life insurance.

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You need to be protected in case you get sick, go to the hospital,

Joe Pantozzi: 00:18:13

uh, have, have a, a surgery.

Joe Pantozzi: 00:18:16

You need to protect your future.

Joe Pantozzi: 00:18:17

You need to protect if you have a long-term care event, if you lose the

Joe Pantozzi: 00:18:22

activities of daily living, and you need to, to have ho- uh, uh, help at home or

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go into a nursing home or a rehab hospital for a short or a long period of time.

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All these things are elements of protection.

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And you know what?

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They're just not fun.

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And I, and I, I'd rather have those elements in place and never need

Joe Pantozzi: 00:18:43

them than have a, a drastic need and not have the protection in place.

Joe Pantozzi: 00:18:49

And again, goes back to building a strong foundation, putting the

Joe Pantozzi: 00:18:54

protection items in, in place before you start building your wealth.

Joe Pantozzi: 00:19:01

Jason K Powers: Yeah.

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And protect is the base, I mean, really because simply put, one bad

Joe Pantozzi: 00:19:07

event can wipe out years or decades of progress you without that protection.

Joe Pantozzi: 00:19:14

And we don't walk around being paranoid about it, right?

Joe Pantozzi: 00:19:16

It's not like you walk around being worried about, "Oh, I-- this might

Joe Pantozzi: 00:19:19

happen, that might happen, this might happen, that might happen."

Joe Pantozzi: 00:19:21

It's, it's that old adage, I guess, of

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hope for the best and plan for the worst,

Joe Pantozzi: 00:19:31

Right.

Joe Pantozzi: 00:19:31

Right.

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And it's, it's more fun to, to play in the top of the pyramid.

Joe Pantozzi: 00:19:37

It just is.

Joe Pantozzi: 00:19:39

Jason K Powers: yeah.

Joe Pantozzi: 00:19:39

You know?

Joe Pantozzi: 00:19:39

My buddy gives me a tip.

Joe Pantozzi: 00:19:41

I get a hot stock tip or something.

Joe Pantozzi: 00:19:43

My buddy gives me a tip and I invest $1,000, and next year

Joe Pantozzi: 00:19:47

I get a check back for 50,000.

Joe Pantozzi: 00:19:48

That's great.

Joe Pantozzi: 00:19:49

It happens on television, I think.

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It happens when people buy a lottery ticket.

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It doesn't happen in my neighborhood So while we're waiting for that pie

Joe Pantozzi: 00:19:59

in the sky to- stuff to happen, uh,

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Jason K Powers: Mm-hmm.

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let's do the ordinary things.

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Let's make sure that we're not spending more than more than we're earning, right?

Joe Pantozzi: 00:20:08

Jason K Powers: Mm-hmm.

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I hate discipline.

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I hate, I hate routine.

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I hate living between my beneath my, my, my means.

Joe Pantozzi: 00:20:17

But, but the results of doing it are amazing.

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You know, I hate doing 200 pushups a day but the results are really good.

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So we wanna get in- involved in those protection elements and put them in place.

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It's just something you have to do.

Joe Pantozzi: 00:20:35

And then you can move on to the savings element.

Joe Pantozzi: 00:20:39

And, you know, how, how often have you heard some talking head saying,

Joe Pantozzi: 00:20:43

"You've got to have three to six months emergency cash stashed someplace"?

Joe Pantozzi: 00:20:50

Well, everybody knows that.

Joe Pantozzi: 00:20:53

Everybody knows it, but who does it, right?

Joe Pantozzi: 00:20:56

I mean, I do it, okay?

Joe Pantozzi: 00:20:58

But it- it's one thing to know something and to, and to, to wave this thing

Joe Pantozzi: 00:21:04

off and say, "Yeah, I know that. I've heard that before." But it's another

Joe Pantozzi: 00:21:07

thing to, to meet up with a, with a, for example, a short-term disability.

Joe Pantozzi: 00:21:13

You're out of work for 10 weeks.

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You got, you got sick.

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You broke your arm.

Joe Pantozzi: 00:21:16

You broke something.

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You got laid off for a short period of time, whatever.

Joe Pantozzi: 00:21:20

You need to have that emergency savings.

Joe Pantozzi: 00:21:22

Maybe you need emergency savings, then you can pivot over

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to an investment opportunity.

Joe Pantozzi: 00:21:27

I'm not saying that that's what it's for, but we're saying it's better

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to have it there than not have it.

Joe Pantozzi: 00:21:33

And we're, and we're talking about doing things in this order.

Joe Pantozzi: 00:21:36

I mean, this is a recommendation, right?

Joe Pantozzi: 00:21:39

This isn't scientific.

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This, this is just plain basic common sense.

Joe Pantozzi: 00:21:45

You can, you can have that protection item elements in place

Joe Pantozzi: 00:21:49

for 20 years and never have to rely on them for something drastic.

Joe Pantozzi: 00:21:55

It was still the right thing to do.

Joe Pantozzi: 00:21:57

Jason K Powers: Yeah.

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So

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then we get to the, to the top element.

Joe Pantozzi: 00:22:05

Now we get to where it's exciting.

Joe Pantozzi: 00:22:07

Now we've got our, our foundation in place.

Joe Pantozzi: 00:22:11

We have finance.

Joe Pantozzi: 00:22:13

We're starting to build a capital base.

Joe Pantozzi: 00:22:15

We've chosen where we choose to, to store our capital.

Joe Pantozzi: 00:22:20

You know, for, for me, it's, it's high cash value life insurance

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policies for many, many reasons.

Joe Pantozzi: 00:22:26

We're not even gonna go there today.

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But, and we'll... In, in, in a future podcast, we'll talk about the difference

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between having all your liquidity in cash, all your liquidity in a market

Joe Pantozzi: 00:22:38

account, all your liquidity in a CD.

Joe Pantozzi: 00:22:44

So there are pros and cons to all those approaches.

Joe Pantozzi: 00:22:48

Jason K Powers: Yeah.

Joe Pantozzi: 00:22:49

But where we all want to get is we want to- Figure out

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where we choose to grow our wealth.

Joe Pantozzi: 00:22:59

And typically where people grow their wealth is the big three.

Joe Pantozzi: 00:23:04

It's business, it's stock market, it's real estate.

Joe Pantozzi: 00:23:12

And, and you can just rinse and repeat, rinse and repeat.

Joe Pantozzi: 00:23:15

I have a young man around here who's got-- he's not even 35 years old yet.

Joe Pantozzi: 00:23:20

He's got 35 rental properties.

Joe Pantozzi: 00:23:23

It's, it's amazing.

Joe Pantozzi: 00:23:24

How did he, he do that?

Joe Pantozzi: 00:23:26

He followed in his daddy's footstep, who followed in his daddy's footsteps.

Joe Pantozzi: 00:23:33

Well, I don't wanna be a landlord.

Joe Pantozzi: 00:23:35

I don't wanna worry about vacancies.

Joe Pantozzi: 00:23:38

I don't wanna about, wor-worry about people leaving a mess.

Joe Pantozzi: 00:23:41

Okay.

Joe Pantozzi: 00:23:41

Well, then then don't do that.

Joe Pantozzi: 00:23:44

But if you wanna build wealth, you've gotta plan.

Joe Pantozzi: 00:23:48

You've gotta decide what your preferences are and what your likes and dislikes are.

Joe Pantozzi: 00:23:54

Where do I wanna build wealth?

Joe Pantozzi: 00:23:56

Well, I wanna build my wealth in alternatives.

Joe Pantozzi: 00:23:59

That's fine.

Joe Pantozzi: 00:24:00

What we're saying, we're not here to, to, to rec-direct you and tell

Joe Pantozzi: 00:24:04

you where you should build your wealth and where's the best place.

Joe Pantozzi: 00:24:07

We're here to help you create the financial tool so that you'll always

Joe Pantozzi: 00:24:11

be in control of the banking equation, the banking function, which if you're

Joe Pantozzi: 00:24:18

not careful, will wind up eating your lunch, and, and the banks will wind

Joe Pantozzi: 00:24:23

up owning your future income, your future revenue, your future wealth,

Joe Pantozzi: 00:24:28

and you're gonna wake up one day and you're gonna pick, pick yourself up

Joe Pantozzi: 00:24:31

off the ground and say, "What happened?

Joe Pantozzi: 00:24:34

Jason K Powers: Well,

Joe Pantozzi: 00:24:34

I just got..."

Joe Pantozzi: 00:24:35

Jason K Powers: think wealth, wealth building happens more effectively when

Joe Pantozzi: 00:24:38

the lower layers are stable, right?

Joe Pantozzi: 00:24:41

We, we... Just like the solution before the foundation, you

Joe Pantozzi: 00:24:48

know, you get to the grow point.

Joe Pantozzi: 00:24:49

If you can get protect in place and save in place and get that down,

Joe Pantozzi: 00:24:55

you know, get it stable, growth is a little bit easier at that point.

Joe Pantozzi: 00:25:02

And there's something to be said for repetition.

Joe Pantozzi: 00:25:06

As you develop the habits of being an entrepreneur, of being a business

Joe Pantozzi: 00:25:12

owner, of owning the various asset classes that you choose, um, to put

Joe Pantozzi: 00:25:18

into your portfolio, you're gonna, you're gonna develop a cadence.

Joe Pantozzi: 00:25:22

You're gonna understand finance way better if you're controlling

Joe Pantozzi: 00:25:26

the banking function than if you're delegating it out, because whoever

Joe Pantozzi: 00:25:30

controls that banking function is gonna receive the lion's share of the wealth

Joe Pantozzi: 00:25:39

Jason K Powers: Yep.

Joe Pantozzi: 00:25:40

Sure.

Joe Pantozzi: 00:25:46

Jason K Powers: s-summary of this you know, you have protect

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at the bottom for our listeners.

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You know, it's a pyramid, so protect is the bottom layer, the foundation

Joe Pantozzi: 00:25:56

of the whole foundation, right?

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Protect.

Joe Pantozzi: 00:26:00

then right above that in the middle is save.

Joe Pantozzi: 00:26:03

Now, protect and... Uh, if protect isn't- Stable.

Joe Pantozzi: 00:26:09

Isn't solid.

Joe Pantozzi: 00:26:11

Save and grow are, are really fragile, you know what I mean?

Joe Pantozzi: 00:26:16

And then save, you can't, you can't grow what you don't keep.

Joe Pantozzi: 00:26:22

So you have save and then grow.

Joe Pantozzi: 00:26:23

If you're not saving, you can't grow.

Joe Pantozzi: 00:26:25

You, you just can't.

Joe Pantozzi: 00:26:28

And so it really, it really is a... It, it really is a matter of understanding

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how they are connected, you know?

Joe Pantozzi: 00:26:34

I've, I've... People go, "Well, I can't afford to do the protect." I've done it.

Joe Pantozzi: 00:26:41

"I can't afford to do the protect part, so I'm just gonna save instead."

Joe Pantozzi: 00:26:45

And then... And it's wildly unstable because like we mentioned earlier,

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one bad event took you back down.

Joe Pantozzi: 00:26:55

And so yes, thank, thank God we had the savings, still, what

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if worse happens, you know?

Joe Pantozzi: 00:27:04

does that leave families?

Joe Pantozzi: 00:27:05

I see it happen all the time.

Joe Pantozzi: 00:27:08

You know, working with a lot of clients in the music industry, we see people

Joe Pantozzi: 00:27:13

all the time having some life situation comes up, and a GoFundMe page comes up

Joe Pantozzi: 00:27:20

because there is no protection in place.

Joe Pantozzi: 00:27:24

And it's devastating, and then you're reliant on outside sources

Joe Pantozzi: 00:27:28

all of a sudden, and you hope

Joe Pantozzi: 00:27:32

that can be covered, you know?

Joe Pantozzi: 00:27:35

And people are doing the best they can do, I get it, but if that's... I think that

Joe Pantozzi: 00:27:39

stresses the importance of protection.

Joe Pantozzi: 00:27:41

Like, get, get your bases covered first.

Joe Pantozzi: 00:27:45

And if you've got a family, protect is more important, too.

Joe Pantozzi: 00:27:52

You know, if you've got a spouse and children and-- or you're the primary

Joe Pantozzi: 00:27:55

income earner or you, you know, you have a business, protect your business.

Joe Pantozzi: 00:27:59

I mean, there's all kinds of things you can protect you

Joe Pantozzi: 00:28:02

really need to get in place.

Joe Pantozzi: 00:28:04

But those are all connected, you know?

Joe Pantozzi: 00:28:05

Get the foundation in place, protect, and then save.

Joe Pantozzi: 00:28:07

You can't, you can't grow what you can't save, you know?

Joe Pantozzi: 00:28:12

And

Joe Pantozzi: 00:28:12

I just put a little example here.

Joe Pantozzi: 00:28:14

You know, let's say you make $100,000 and you save 10%.

Joe Pantozzi: 00:28:18

You save $10,000.

Joe Pantozzi: 00:28:20

In 10 years, you've got $100,000.

Joe Pantozzi: 00:28:23

Jason K Powers: Yeah.

Joe Pantozzi: 00:28:23

Great.

Joe Pantozzi: 00:28:24

You don't have a protection plan in place, you get sick.

Joe Pantozzi: 00:28:28

How long does that savings last?

Joe Pantozzi: 00:28:30

Maybe you could stretch it out for two years, maybe So that means you, if you

Joe Pantozzi: 00:28:36

got disabled or sick or hurt or, or, or emotional breakdown, whatever happens,

Joe Pantozzi: 00:28:41

you just blew 10 years' worth of savings in one or two years on a disability.

Joe Pantozzi: 00:28:48

Where if you had some kind of a disability insurance or plan, either

Joe Pantozzi: 00:28:53

yourself, an individual plan, or through work, you would, you would

Joe Pantozzi: 00:28:58

protect that $100,000 you just saved.

Joe Pantozzi: 00:29:01

So, so an event like that will wipe out years and years and years of savings,

Joe Pantozzi: 00:29:07

and that's why the two are related.

Joe Pantozzi: 00:29:09

I don't wanna get into a lot of numbers today.

Joe Pantozzi: 00:29:11

We can put calculators up on the screen until the cows come home.

Joe Pantozzi: 00:29:15

We could talk about the, the numbers, the calculations, the

Joe Pantozzi: 00:29:21

interest rates, the periods, terms, present values, all that stuff.

Joe Pantozzi: 00:29:27

But you have to get the big picture and understand why I'd wanna

Joe Pantozzi: 00:29:31

protect myself in the first place.

Joe Pantozzi: 00:29:33

I have obligations to myself, to my family, to my

Joe Pantozzi: 00:29:36

creditors, um, et- et cetera.

Joe Pantozzi: 00:29:39

Maybe to my employees if I have a business.

Joe Pantozzi: 00:29:41

I wanna keep those doors open of that business.

Joe Pantozzi: 00:29:46

So this is, to me, kind of a fundamental and, and basic discussion, but it needs

Joe Pantozzi: 00:29:52

to be at the ground level before we can get more exotic and more sophisticated

Joe Pantozzi: 00:29:58

and, and put some teeth into a plan.

Joe Pantozzi: 00:30:01

So

Joe Pantozzi: 00:30:02

Jason K Powers: Sorry.

Joe Pantozzi: 00:30:03

to helping in any way I can.

Joe Pantozzi: 00:30:05

Jason K Powers: Yeah.

Joe Pantozzi: 00:30:05

And we're not

Joe Pantozzi: 00:30:06

Good

Joe Pantozzi: 00:30:10

Jason K Powers: of things that stop you from resetting to zero each

Joe Pantozzi: 00:30:14

time, and I think that's important.

Joe Pantozzi: 00:30:17

And it's-- And that's where Joe and I come in, in helping people map out your

Joe Pantozzi: 00:30:23

own foundation, you know, and help you think through it and understand, am I at?

Joe Pantozzi: 00:30:29

Where do I need to be?" And let's help you draw

Joe Pantozzi: 00:30:32

word.

Joe Pantozzi: 00:30:36

Jason K Powers: is just helping you map that idea out and come up with a plan.

Joe Pantozzi: 00:30:42

That's it.

Joe Pantozzi: 00:30:43

It's simple, you know?

Joe Pantozzi: 00:30:44

It's, it seems basic, you know, as we talk about it.

Joe Pantozzi: 00:30:46

We're not here to, to, to put you down.

Joe Pantozzi: 00:30:49

I hope nobody is listening going, "I can't believe they would

Joe Pantozzi: 00:30:52

talk to me that way," you know?

Joe Pantozzi: 00:30:53

Like,

Joe Pantozzi: 00:30:53

I'll,

Joe Pantozzi: 00:30:54

Jason K Powers: it was really to get the wheels turning in your head and understand

Joe Pantozzi: 00:30:58

maybe I'm not doing it in the right order.

Joe Pantozzi: 00:31:00

what you're doing is well-intended, but maybe it's just in the wrong order,

Joe Pantozzi: 00:31:03

and we just need to re-reprioritize things and reorganize things.

Joe Pantozzi: 00:31:08

I'll s- I say this all the time.

Joe Pantozzi: 00:31:10

We're never gonna suggest something to you that we haven't done.

Joe Pantozzi: 00:31:14

I'm not gonna suggest that you own something that I don't own So we

Joe Pantozzi: 00:31:19

absolutely eat our own cooking.

Joe Pantozzi: 00:31:22

Well, we are, uh, our own first best customers.

Joe Pantozzi: 00:31:27

Jason K Powers: That's right.

Joe Pantozzi: 00:31:32

we guide are, are, are basic and fundamental, and they, they need

Joe Pantozzi: 00:31:36

to be practiced over a period of years.

Joe Pantozzi: 00:31:38

You're not gonna fix a problem that took you 15 years to, to create overnight.

Joe Pantozzi: 00:31:46

Maybe you'll solve it quicker than 15 years, maybe a lot quicker, but

Joe Pantozzi: 00:31:51

you have to take one step at a time.

Joe Pantozzi: 00:31:53

Jason K Powers: That's right.

Joe Pantozzi: 00:31:56

I think we'll leave it at that,

Joe Pantozzi: 00:31:57

Great.

Joe Pantozzi: 00:31:59

Jason K Powers: Make Your Wealth Work here with Joe Pantozzi, and

Joe Pantozzi: 00:32:03

name is Jason Powers, here with my awesome new Alpha Omega Wealth hat

Joe Pantozzi: 00:32:08

that I love so much and I'm gonna wear on every episode I think now.

Joe Pantozzi: 00:32:11

Um, hey, if you want help building your own foundation, protect, save,

Joe Pantozzi: 00:32:16

grow, and creating a system where your dollars can do more than one job, head

Joe Pantozzi: 00:32:20

on over to alphaomegewealth.com/podcast to connect with myself or Joe.

Joe Pantozzi: 00:32:25

Book a call, let's talk.

Joe Pantozzi: 00:32:27

We have no agenda.

Joe Pantozzi: 00:32:28

Let's talk and understand your situation and see makes sense for you.

Joe Pantozzi: 00:32:32

You know?

Joe Pantozzi: 00:32:33

So guys, if today was helpful, please follow, like, subscribe wherever

Joe Pantozzi: 00:32:36

you're listening or watching.

Joe Pantozzi: 00:32:38

Leave a quick five-star review or rating and share this episode

Joe Pantozzi: 00:32:41

with one person who would benefit.

Joe Pantozzi: 00:32:44

We will see you next time

Joe Pantozzi: 00:32:45

Hey.

Joe Pantozzi: 00:32:45

Awesome.

Joe Pantozzi: 00:32:46

Thanks.