421 | Who Is Investing Now And Why? The Need To Build Wealth "Outside the System" w/ Matt Teuschel

With the current stats around American retirements being nothing short of appalling, and homeownership feeling like an unattainable dream for Gen X and Millennials, it’s time to start thinking differently about wealth-building.

That’s why we’re excited to bring someone who is working on cracking the code to building wealth outside the system.

His name is Matt Teuschel, a Millennial wealth creator who h’ll be sharing his journey as an entrepreneur, along with the step-by-step formula that he's developing.

Matt will join show host, Pablo Gonzalez, to share insights like:

- why it’s critical to think about wealth outside the traditional financial systems
- what the modern roadmap for building wealth looks like
- how to take the first steps on the road to wealth outside the system  smart investments
- and more!

If you’re ready to learn how to take control of your financial future, don’t miss this chance to learn directly from Matt about how you can start building wealth today.

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https://jwbrealestatecapital.com/turnkey/ 

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Transcript

Pablo Gonzalez: 0:00

Today, we got a doozy for ya. We are talking about the need to build wealth outside the system. Who is investing now? And why we have a guest here that has a YouTube channel called the Millennial Wealth Creator. He has become a recurring character in the comments here. I'm not going to say his name just yet, right, Welcome everybody to your weekly edition of the Not Your Average Investor Show. I am your host, Pablo Gonzalez. With me today is not Greg Cohen, but we do have been replaced for today. Been, been replaced, been, but you know what? Let's see. It might be an upgrade. You never know. That's Can I put him out of a

Matt: 1:35

job for a little

Pablo Gonzalez: 1:36

while? You never know. You never know. I think I'm sure he's watching right now. No hard feelings, Greg. No hard feelings, Greg. This is, you know, the interesting about. Matt Teuschel is not just the fact that I have butchered his name a thousand times,

Matt: 1:48

except for that one time,

Pablo Gonzalez: 1:49

but now it's up for that one. Yeah, you're welcome. It is the fact that he has gone from a JWB intern in 2010 to a whole roller coaster of life experiences to now a successful entrepreneur with a marketing company called Leads for Locals. He is also a bona fide content creator with a. Big time YouTube channel is the least for local YouTube channel. The one that you got like 12, 000 subscribers is it called

Matt: 2:13

leads for locals, leads

Pablo Gonzalez: 2:14

for locals, YouTube channel. And now he's got a new YouTube channel called the millennial wealth creator, where he is evangelizing the need to build wealth outside of the system. Something that we very much subscribe to here off the natural average investor show. Recently, we ran into him at a speaking engagement here at Jack's Ria and he just comes up to Greg. He's like, Hey man, you remember me? I'm your intern. Greg's like, of course I remember you. And now he's here on the show. Matt Torshaw. Welcome, man.

Matt: 2:39

What's up, man? I really appreciate the opportunity. Like I said, outside, I'm honored and humbled and, yeah, it was really cool. I got the email from Jack's Ria about updates like on the current Jacksonville real estate market. And I saw Greg's picture and I'm like, I know that guy. Holy crap. And it's being hosted by JWB. And I was one of the original interns. I can't remember what year it was, like 2010, maybe something like that. Way before the podcast. And we're like, you guys have an amazing location here. It's just awesome. And I went to that event. I went up to Greg, not expecting him to remember me at all because it had been, it's probably been five years. 12, 13, 14 years. And he knew exactly who I was. And it hit me like, I mean, Greg is just awesome, man. Just, he is the quintessential example of a true leader.

3:28

Yeah.

Matt: 3:29

And I really felt that from him when I reconnected and, you know, we were reminiscing on the old you know, like when we, when it first started and, you know, people in the office, how we did the book. Book presentation, all that. And it was just awesome, dude. So, and it's just crazy to be here now, see how far you guys have come and how much you've grown. It's awesome. There you go, Greg. I appreciate the opportunity. I know

Pablo Gonzalez: 3:47

you're going to listen to this, buddy, but I couldn't agree with you more. Quintessential leader, one of the greatest role models and friends I've ever had in my life.

Matt: 3:53

Absolutely.

Pablo Gonzalez: 3:53

But before we dive into Greg, we have a little tradition on the show. You know what it's called?

Matt: 3:57

I think it's the You're not going to rap. It's the role play. It's the role call. The role play in the

Pablo Gonzalez: 4:00

road. What did I say? Full role play. You get to be the host. I will be Matt Torshaw. I got to turn professional. It's the role call.

Matt: 4:06

I got to turn professional mode back on. It's the role call. We got Joanna. Role call. Yeah. I was thinking about the because you used to do a rap. I do. I do a rap on the show. Yeah.

Pablo Gonzalez: 4:13

Yes. Yes. Yes. RIP rap. All right. We got Joanna greeting everybody. She's a community manager. We've got the ring master, Drew Barnhill in the house saying good day to all. We've got our lead off hitter batting second today, John Henning. Good to have you. We've got the MVP. the community is. Lee Bishop, man. Come on, get with it. Lee Bishop checking in. We got Chris Lee from Fernandina Beach. Chris, I was just up in Fernandina taking some surf pics. I really loved it. We got the Maven from the mountains of Denver. Leslie Wilson. We got the mystery man, Denny Davis. Hello from Kuwait. Hello, Denny. We appreciate your service over there. We got a mountain from Bellegrina. Saying good morning from the ominously crepuscular mountains of Colorado. I thought you had a challenge for me, Billy. We got our regulars, Gary and Rosalind Riley from Marietta, California. We regard you. We got Roger Fonse from the Inland Empire. He's a esteemed French man. All right. We got Fritz Brown. Yeah. Fritz, my portfolio manager. Fritz, good to have you as always. We've got the shaman, Nadim Shah. Good afternoon from the Pacific Northwest. Who else we got in here? Energy, energy, energy. Oh, we got Chris Gonzaga from the illustrious Hudson Valley of New York. We got, oh, we got the first family of the Not Trapped in a Show. Patriarch and matriarch, Ken and Carolyn Maligne. We salute you Malignes! Well, we got T. Caster in the house. T, good to have you back. Keith Eden Villegas. Keith, good to have you. I think that's a new name, Keith. Welcome to the show. Welcome man. Make yourself comfortable. Glad to have you. Yeah, normally I have a different co host, but uh, this guy's pretty good looking and pretty smart, so. I've got

Matt: 5:41

a big seat to fill, but I'm going to do my

Pablo Gonzalez: 5:43

best. You got it. Big shoes, but you got it, man. Uh, Shibu Joseph saying good afternoon, Shibu. Good to have you. HSTN, who is always here and always contributing. Good to have you, HSTN. And I see not your average guest checking in. Howdy from New Jersey. I guess we do have a Greg. Greg Stone is in the house. Greg, good to have you. Ms. Rack, well do from Northern Virginia. I think that's another new name. Welcome to the community, Ms. Rack. Hope you make yourself comfortable, make a friend. Everybody in the chat is will answer any questions wholeheartedly. No bias, everybody in there is either a client or somebody that knows a client or just like part of the ecosystem. So feel free to strike up a conversation there in the chat. But for right now, I'm going to strike up a conversation with my new friend, Matt Toychell.

Matt: 6:25

Very good, man. What is it? Where does that

Pablo Gonzalez: 6:27

name come from? I think it's

Matt: 6:29

German.

Pablo Gonzalez: 6:29

German. I

Matt: 6:29

think.

Pablo Gonzalez: 6:30

Yeah.

Matt: 6:30

I just, I don't know anybody in my family that's German. That's what I've been told. That's

Pablo Gonzalez: 6:34

what I

Matt: 6:35

stickler.

Pablo Gonzalez: 6:35

Got it. Got it. All right, Matt. Let's, let's start off hot and heavy, man, building money out, building wealth outside of the system, very much in line with the show, right? Like we are the not your average investor community. We understand that retirement is like broken. You look at the statistics, it sucks. What is your, what is your take on it? What is money? What is, what is building wealth outside the system? What's the system?

Matt: 6:57

So. For me, the system would be the, the common conventional financial planning wisdom that is often shoved down our throats. It's this kind of one size fits all approach to building wealth and retirement and all that stuff. You know, I'm not even really a fan of the word retirement, but. It's this conventional approach to how to accomplish those things. And when, like one of the biggest problems I have with it is when you look at the actual numbers, the results of this of conventional financial planning, it's, it doesn't look good and it doesn't work out for a lot of people. And it ends up being in the best interest. A lot of the times. For Wall Street, government, financial planners, et cetera. Not that there's anything wrong with having a financial planner. But the, the common wisdom of go to school, get the job, max out your 401k, you'll be a millionaire by the time you're 65 and then you live your golden years. I just, I've never bought into that.

7:54

Yeah.

Matt: 7:54

And as I've gone down the rabbit hole, which led me to starting Millennial Wealth Creator, and I'm just looking at the results. Like, you know, the other day I was, I was going back through some numbers that I frequently bring up on my channel. The average 401k balance, this was according to Vanguard, okay, and Fidelity. The average 401k balance at 65 years old is only 279,

8:15

000,

Matt: 8:16

right? And then. You know, I hear financial entertainers, you know, I'm not going to name any specific names. All right. But do I qualify as a financial entertainer? No, you're, you're, you're really good. All right. JWB is, is got it down. Okay. Not your average investor outside of the system. I

Pablo Gonzalez: 8:31

don't know if I qualify for the financial part. I know I'm an entertainer, but like

Matt: 8:34

the, you know, You'll probably get an idea of who I'm talking about later on in the show, but, you know, this thing about, buy term and invest the difference and, you know, 12 percent average mutual funds and all this stuff. And, you know, it just. When you look at the actual results, it's not working out for a lot of people. Some people it does and not saying by term, you invest a difference is bad necessarily, but I don't think people are doing enough research as to what is the best approach to build wealth, to accomplish their, their own financial goals, right? Whatever, whatever that is, right? If it ends up being. What conventional financial wisdom tells us to do great. But if there was a better way, a much more efficient way to reach our financial goals, why on earth would we not at least explore that?

9:21

Yeah.

Matt: 9:21

Right. And you just look at how many people are forced out of retirement, how many, How many people can't afford groceries right now, right? Like I can't imagine being a family of four or five right now, you know, grocery bills have like doubled quintupled depending on, you know, where you're, you're living at gas prices. Like people are really struggling right now. And I think it's because we haven't been given a, a really good framework for actually building wealth in our lives. And as somebody that learned this the hard way, right. I say that with a lot of confidence because I reflect on. My journey as an entrepreneur, where I've gotten to now, you know, I'm going to be buying a property from JWB here very soon. And it's just like, it's very surreal. And I reflect back on that journey. What did I do different from what I was originally taught that got me to this point? And that's when it started to click. I was like, okay, I got to start sharing this stuff because a lot of the times. We're putting the cart before the horse with this conventional financial wisdom and planning. And it's just, it's just not working for people,

Pablo Gonzalez: 10:25

man. You said a lot there. And I agreed with a hundred percent of it

Matt: 10:30

on the same page. Yeah.

Pablo Gonzalez: 10:31

Yeah. Totally. This is, this is why we had John. It was clear that we were, you know, we hopped on a call earlier last week and like, it was like, Oh, we're kindred spirits, right? Like totally believe in the similar things. A couple of things to add a little context to. Love that. I mean, don't love the statistics, but I appreciate the clarity on that statistic. We talk about that too, right? Like the average person in retirement age the median person in retirement age has something like 300, 000 net worth. So it would make sense that their 401k is only like 260 K, whatever the average is actually much lower, right? Because the median get the average gets. You know, pull down by, by, by the low end and stuff like that. Something that we learned on our, the big thing that pops out to my mind is like the world has changed so much, right? And in the last 25 years, you know, the world has changed so much. And the way that we, the conventional wisdom around saving. Hasn't really changed a lot and yet all these financial instruments all these different things and and and everything has changed I'll start with a couple right like we learned from Kelly Berenbaum the 401ks weren't even a thing before Before like the early nineties kind of thing, right? Like there was a massive shift from like companies saving up for you and then paying you when you retire pensions to like shifting the onus on you, which sounded good. Cause it was like, Oh, now you have options, but it really didn't give you options. It just told you you can only do this because that's the only thing that they support. Then work culture has completely changed. The idea that somebody works at a company for 30 years is like. Nobody

Matt: 12:00

on her

Pablo Gonzalez: 12:01

like, like nobody's doing that because of Wall Street and the financial pressures. And then on top of that, right? Like this idea of like, we're going to save, save, save, save, save. So we can spend, spend, spend, spend, spend. And hopefully that lasts us our last last, like 15 years. Cause that was a life expectancy, just meant life expectancy is much longer. The market is much wilder because things are interconnected, you know? So like this idea of like safe to spend later versus just like, Growing cash, you know, a growing cashflow portfolio that continues to give you better options over time, as opposed to like all of a sudden there's a moment in time where you have no options. I mean, just, it's, it's right there, right? That to me is the system, right? A

Matt: 12:40

hundred percent, man. We're, we're thinking about all the wrong things when it comes to wealth building and retirement planning. And, and the goal is to build up this massive pile of money. And then hopefully that pile of money will last you however many years. You see, there's this thing called longevity risk. Nobody knows how long we're going to live. Hopefully we live as long as possible, right? But people are living a lot longer. So here's the other thing. Is that coveted 1 million portfolio even going to be enough? So a million dollars sounds like a lot of money on paper. And it is. But if you can only spend 3, 4 percent of that every single year. I mean, is that going to be enough? Not to mention, well, I mean, like I said, grocery prices are really high. Inflation is out of control. So depending on your age. You might need 2 million to live the same exact lifestyle that you are right now. So is contributing a few hundred bucks a month into a 401k really going to do that? I would say no. And I, and actually don't even take my word for it. Do the research, look at the numbers, right? It's not. It's not a viable plan anymore for the, the world that we live in. And I don't, here's the other thing, I don't think it speaks to the greatness inside of us either. That kind of bothers me about the, cause we put so much faith into a financial product. The financial product is going to solve my problem, my financial problems. It's going to build my wealth as opposed to. Investing back into ourselves. How, how, how can I learn more skills? How can I provide more value to the world? Right? How can I share my journey that is going to impact so many lives? Because oftentimes that, that leads to a significant increase in income and cashflow. You said it perfect. We should be focusing on building cashflow, not this big pile of money that hopefully is going to last us the rest of our lives when we retire. And oftentimes it's not anywhere near. enough money by the time people get to retirement.

14:36

Yeah.

Matt: 14:36

And it just, it just shows because of how many people I was listening to a podcast yesterday about how many people are still paying off their homes when they get to retirement.

14:47

What

Matt: 14:47

the heck, man? Like, Again, that's why I started the channel because there is a very, very efficient way to pay off your mortgage very quickly without making extra payments. All you change is one mindset.

14:59

Yep. All

Matt: 14:59

right. Two, where does your money go and how do you pay your bills? Right. If you start to change those like just minor shifts. Again, and this is all outside of the system, because, and the reason I stress that is because the system doesn't make a lot of money when we start to do these types of things outside the system. They can't extract as much wealth from us anymore. When we implement these types of things, it gives us back control. Of our money in our finances in our lives. We're not so dependent on the system anymore,

Pablo Gonzalez: 15:30

man You are you sorry? I get a little fire. Oh, I

Matt: 15:32

like it, man

Pablo Gonzalez: 15:33

Because I

Matt: 15:34

hate seeing people struggle man. I hate it, dude It really breaks my heart

Pablo Gonzalez: 15:38

that speaking to the greatness within us really really strikes a chord with me And I want to I want to speak to the greatness within you and like getting to your journey, right? Like I know that you have a system that we're gonna like detail out We're going to talk about how rental properties fits into the system and all that stuff. I'd love to hear your story a little bit because when I hear When I hear about the greatness within us and where we are to where we are now It seems like we've always been told Let us take care of you, right? Right? Like the pension was let me take care of it

Matt: 16:06

for you

Pablo Gonzalez: 16:07

The 401k is like just put it in here and we'll take care of it for you And it feels like to me that's where the that's where that whole like piece of like where they benefit From the equation for us, but my lived experience has been You You know, I had to have a real serious moment in my life where I was just telling you about it, right? I just had to have a real serious moment where I had to think to myself and think Nobody's going to do this thing for you And that was about like two and a half years ago and since that switch turned on my life has really really changed right so i'd love to just kind of hear from you on like How that turned on for you and and you figured out this like you got to this like system of what's working for you

Matt: 16:42

Sure. Yeah It's been a hell of a journey. So Just to give some backgrounds on where all this came from. So, I lived in Las Vegas for about seven years and again, following kind of conventional financial wisdom, I screwed my life up really, really bad. it was one bad decision after another. It wasn't like gambling or stuff like that. You know, I actually, you know, Vegas was great. But I just, nothing, I couldn't make anything work, right? And I slowly just drove my life into the ground. I ended up losing my house, which I probably should have never bought. But again, like society told me not what I needed to do. Yep, I heard it from so many people. You know, get the 30 year mortgage and all that stuff. You're a homeowner at 21. Congratulations, that's awesome. Well, it turns out that was actually a really stupid decision. I was not ready for that at all. All right, so I lost everything, ended up losing the house, tens of thousand dollar credit card debt, and I ended up having I moved back to Jacksonville, I moved back in with my mom, didn't have a car, had nothing pretty much felt like the biggest loser. Oh, how old were

Pablo Gonzalez: 17:43

you at this point?

Matt: 17:44

30.

Pablo Gonzalez: 17:44

30, yeah.

Matt: 17:45

I did

Pablo Gonzalez: 17:46

that at 29 also. Not a good age to

Matt: 17:48

do that, to be in that spot, right? It's, uh, it's demoralizing. And but I just, the thing that I had going for me was I never quit. Right. So I started my marketing agency probably seven years ago now, I think, give or take, it hasn't been until like the last three or four years where it's really taken off, but when I moved back to Jacksonville, I just kept at it. I was sharing my journey just having fun with this marketing stuff, generating leads for businesses, playing around with all the different software. And I had started a YouTube channel, just sharing my journey. And it started to click for me, the, the concept of adding value to the world. Stop going for the easy money. Stop thinking so short term, right? Cause that it, it didn't work for me anyways, not saying it can't work for some people.

Pablo Gonzalez: 18:34

It was in my early thirties that I realized that the key to life was adding value. Absolutely.

Matt: 18:37

For sure. When I'm telling you about when I had that shift

18:41

and I wasn't,

Matt: 18:41

I wasn't thinking about any particular financial product to make me wealthy. Right. And to set me up for life. As soon as I had that shift, everything started to change. Not overnight. But that's when my life really started to go in the right direction. When I was focusing on skilling up adding value to the marketplace, learning something that benefits other people serving my fellow man, right? That's when everything started to change. The YouTube channel started to take off. I had my best years in 2022 and 2023. So not that long ago, like we're talking like a few years ago, but that's how fast things can change when you focus on the right stuff.

19:18

Yeah, when you

Matt: 19:19

focus on actually providing value to people increasing income, right? Yeah, that that's kind of I'm jumping ahead a little bit. That's one of the the blueprints right

19:28

now

Matt: 19:29

But you said it earlier focusing on cash flow now Like why am I worried about cash flow 30 like I'm stockpiling money for cash flow 30 years from now. I want cash flow now

19:38

right

Matt: 19:40

Because when you, when you start increasing your income, you have one, so much more freedom.

19:44

Yep.

Matt: 19:44

But you also have, you can approach building wealth from a position of strength, not weakness. Not where I'm trying to skimp and save and you know, I've got to be on a very strict tight budget. No, screw that dude. Increase the income so that we have a lot of options when it comes to building wealth. You don't need to follow. What's put in front of us by a told by society of what we need to do Yeah, right we can start to explore a much better way of doing it and I'm telling you starting the YouTube channel Focusing on providing value focusing on the income that can that's what changed my life Okay, when I when I left the the mainstream society bull crap behind That's when it really started to change for me.

Pablo Gonzalez: 20:25

Got it. So moved back home, left you changed your environment, right? Like this, that, that, that part of it really hits me as well, because I think from day one, the vision for this show, it wasn't a show. It was a community as I, as I've told you, right? Like we wanted to create the environment where somebody could think outside of the system. It's strategically why we called it the not your average investor show. I love that name. Yeah. As I was telling you, it's so

Matt: 20:52

perfect, man,

Pablo Gonzalez: 20:52

because what I have found is personally, every time prior to this one that I tried to go down the real estate path, everybody comes out of the woodwork talking about why you shouldn't do it, right? Like there's all these people with all these stories and blah, blah, blah, blah, blah. And the gravity of not being surrounded by people that get it is huge, right? So that's just in the investment side. I assume that Las Vegas was kind of like that for you. You didn't have people to like, kind of like center you or like give you that like cognitive bias of like, Oh no, no, this is the path. So you weren't succeeding.

Matt: 21:24

Come

Pablo Gonzalez: 21:24

back home, change your mindset, focus on adding value. Start your marketing agency, start your YouTube channel, and now you are a financial entertainer.

Matt: 21:33

That's it. Yeah, I gotta be careful with it, right? But yeah, you know, I think about that. It's why I started Millennial Wealth Creator, because I can't help but think, like, when I was reflecting on the journey, had I had the formula that I have now, the blueprint, if I wouldn't have screwed my life up so bad, right? If there was, if there was a proven blueprint for building wealth. And everybody's a little bit different on what they do in order to accomplish that. But I think having a strategic blueprint in place that you can follow that's proven. I just I didn't have that and not making excuses. You know, I made my own decisions and stuff, but I often wonder if things would have been a little bit different if I had a better environment, uh, if I had a better, you know, mentors and just the right group of people. In my life, which, you know, I didn't have bad people in my life, but we, they, they were definitely not on the path of building wealth or anything. Right. Or having a proven process. And that, that does make such a huge difference, man. Environments can, can make or break you. And I learned that the hard way.

Pablo Gonzalez: 22:42

Yeah. Yeah. A hundred percent, man. A hundred percent. All right. So. What's the blueprint that you've discovered? Yeah, talk us through it.

Matt: 22:46

Yeah. So again, this is just me millennial

Pablo Gonzalez: 22:49

wealth creator blueprint.

Matt: 22:50

That's it That's what I'm calling title working. It's working title. Yeah work in progress right now Here's the thing. I just want to preface this by saying, you know, I'm not a financial guru I don't you know, I don't have any fancy degrees or anything. I'm just a guy sharing his journey

Pablo Gonzalez: 23:03

your lived experience

Matt: 23:04

That's it man. What has worked for me? Yeah, and I I've just been reflecting on that journey for like the past year in your

Pablo Gonzalez: 23:09

mid early 30s You

Matt: 23:11

36.

Pablo Gonzalez: 23:12

Yeah. 30. Oh, so mid, mid thirties. Close. Straight up. Straight up. Mid thirties. Yep. Mid thirties. So mid thirties. This is, this is what's worked for you so far.

Matt: 23:20

What's worked for me, allowed me to recover from the mistakes that I made very quickly. Cool. All right, so step number one, we've already been talking about is the income. See, I think we were taught to put the cart before the horse when it comes to personal finance, where we're taught go to school, get, I mean, college is ridiculously expensive. You know, you rack up tens of thousands, sometimes hundreds of thousands of dollars of student loan debt. Go get the job, max out your 401k, and then you'll be good at 65. You'll be a millionaire at 65. My question is, why not be a millionaire now? As soon as possible. Why not work towards that? Why rely on a financial product to make you a millionaire when you can focus on providing value to increase your income first? Right. And then make all the money you want. Okay. So, for me, when I see the average person putting in, and this is very common, this is very typical, most people are not maxing out the 401k. If you max out the, there's nothing necessarily wrong with the 401k, if you're able to max it out and make, and you have good income, it can make sense. Okay. But what I see, very often, is people are not maxing it out. They're only putting a few hundred dollars a month into it. And the problem with that is it's not going to move the needle. Okay, I just saw an article on this. If you're making

Pablo Gonzalez: 24:33

65 grand a year when you're like 35 and you're putting 10 percent of your 401k, it's not going to move the needle for you. Not enough. Yeah, yeah. You're not going to get I got you, bro. You're probably not going to get any

Matt: 24:42

closer to that million dollar mark.

Pablo Gonzalez: 24:43

Yeah.

Matt: 24:44

Okay. So putting, putting a couple few hundred bucks a month into the 401k, it's just, it's not going to do enough. And so for me, that's putting the cart before the horse, right? I think that those few hundred dollars per month would be much better invested back into yourself to double your income.

25:03

Yeah.

Matt: 25:04

Okay. And then when you double your income.

25:06

Yep.

Matt: 25:06

Now. You can max out the 401k. Now, now we're starting to make some progress here. Okay. I, cause I just saw an article on this. They, like mainstream media really tries to hype this stuff up. It said that there's a record number of 401k millionaires in 2024. Now granted, it was only 422, 000 people out of 45 million accounts managed by Fidelity. So a little bit of a side note there. It's not a lot of people that reach that million dollar mark. That's number one. But number two, the primary factor of them getting to that 1 million mark was contributions. It wasn't necessarily the market. Now the market can do good, not knocking the stock market, even though I'm not a fan. Okay. But it was the amount they were able to contribute that got them there. So if you're not able to contribute enough because you don't have your income fixed, you're, you don't have enough cashflow.

25:56

Yeah.

Matt: 25:56

Well, now you're investing. You're putting a lot of faith into a financial product that is probably not going to get you to where you want you know, for your retirement. Okay. Got it. So

Pablo Gonzalez: 26:07

when you're, when you're talking about cash, right? Cause I think, I think you can get confused on like when people use cashflow and rental property investing and investments, there's, there's, it comes with, Weighted connotations. You're essentially saying increase your income first so that you can so that you can contribute to things and make a meaningful contribution to them. Right. So like when you're saying

Matt: 26:27

so you can make better, smarter investment,

Pablo Gonzalez: 26:29

better, smarter investment,

Matt: 26:30

people are investing too soon.

Pablo Gonzalez: 26:31

Yeah. And, and like, to what you're saying of just like 200 bucks a month here or there. Yeah. isn't going to do as much for you in a 401k as much as it is learning a new skill set having a membership into a group of people that are at a level of a certain ilk that you now get exposure to mentorship, right? Like all these things that, you know, before maybe 200 bucks a month, didn't pay for 200 bucks a month, won't afford UCF, right? But, You know, like that wasn't an option before, you know, like it used to only be college, right? Like now you can spend 200 bucks a month leveling up your skill set, learning AI, buying online courses, uh, buying into these like masterminds and things like that, that then allow you to become the person that you need to be to increase your revenue, either by job title through entrepreneurship.

Matt: 27:16

Exactly. You said it perfectly. Got it. So yeah. And here's the thing. You don't even really have to spend money. YouTube is the biggest Free university on the planet. Now you can learn anything that you want, anything. But if, if we're talking about the 2, 3, 400 bucks per month. Mm-Hmm. Yeah. Like I just bought an AI course for 200 bucks. Yeah.

Pablo Gonzalez: 27:34

Yeah.

Matt: 27:34

Like,

Pablo Gonzalez: 27:34

that'll change the piece for you.

Matt: 27:35

I'm imagine, like, if you think, like, think about the profound impact that AI is having on the world and is going to have if you start to learn how to implement AI in a way that serves a specific niche. Mm-Hmm. you can't sit here and tell me you're not going to massively increase your income.

Pablo Gonzalez: 27:50

I say it all the time. The biggest, the biggest. Creations of wealth happen during giant context shifts this giant context shift of AI, right? Like whatever, whatever niche you want to be in, learn the, be the expert of AI for that. And I guarantee you your income change. A hundred percent.

Matt: 28:06

You know how I know that that for, that is true for a fact is because My agency was I started doing Facebook ads for business owners still do today. We have a great system for it, but when I started doing it, that's when Facebook ads were like getting popular, right? So it was this huge shift in marketing for businesses and I was in the right place at the right time. Yep. We're literally repeating the same exact cycle with AI. Good pattern recognition. Massive, massive opportunity. Now, here's the thing. I want to stress this too, because a lot of people watching might, you know, have jobs. Some people are entrepreneurs. I get this question a lot, like, if I have a job, how do I increase my income? Yeah. Like, because when you have a job, you're thinking, like, you have to go to your boss to get a raise. Okay.

28:49

Yes.

Matt: 28:49

Maybe, you know, then maybe that's part of the process. But here's the thing, is the more valuable you become, the more money you're going to make. Period. Period. Period. Period. Period. Because if you are contributing. Like if you become an indispensable asset to your job, they're either going to give you the raise and move you up, or you're going to start getting courted by other companies. Like, Hey, I see what you're doing here. I'll double your salary or I'll increase your salary over here. Now, again, you're starting to increase your income. So you could learn new skill sets. You could just get better at what you currently do.

29:21

Yeah.

Matt: 29:22

Increase your numbers that way. Right. But again, not, I guess we have to say this is not financial advice, but the couple of hundred bucks, a few hundred bucks a month, you're putting in the 401k. Why not put that back into yourself so that you can go from 50, 000 a year to 100, 000 a year, maybe 200, 000 a year. That was the big. Light bulb moment for me when I was reflecting on this stuff, man, was I was putting too much faith into the system, these financial products, not focused on increasing my income by providing value. And when my agency took off in 2022, 2023, that's when I had that light bulb moment. Love

Pablo Gonzalez: 29:57

it. So step one in the millennial wealth creator blueprint is invest in yourself. If, is if you don't have enough income to be making meaningful investments, then the number one investment is to invest in yourself, to level up your skillsets, so you level up your opportunities, so that you level up your revenue, so that you can start playing with a big boy tape.

Matt: 30:19

100%.

Pablo Gonzalez: 31:29

All right,

Matt: 31:29

cool. A phrase to put all of that into context and easy to remember, you are your greatest asset. It's not a piece of real estate, it's not the stock market, it's not your 401k, it's none of these financial products. You are your greatest asset. 100%. And when you start to take that seriously, your life can, can change. All right. I'm in. What's

Pablo Gonzalez: 31:50

step two?

Matt: 31:50

Income it is. All right. So you got it. You got increased income first. Step number two. Now that we're making this money, what do we do with it? Right? So we're, we're building our vault. That's what I call it. Okay. Step number two, building your vault. Okay. So again, just sharing my journey here. When I reflect back on when I started making money, I was like, holy crap, I'm not used to this, right? I'm used to being broke most of my life, right? And I was like coming out of this like just the bottom of the financial barrel there. And so and I still struggle with this a little bit, but I, I had this fear of going back to where I was. So I literally just saved everything.

32:27

As I

Matt: 32:28

started making more money, my expenses did not increase a little bit, but I wasn't buying new cars. I wasn't living in high rise condos or anything like that, dude. I was stacking cash, building my vault. And eventually it got to the point where I was like, okay, I'm making, you know, income is good. I've got that solved. I've got a little bit of a stash here. What do I do with it? Right now we can start to put this into, into play. Now, one other part of the vault though this was huge for me is where are you saving the money? Right. Because one of the things we have to worry about, it's a huge problem these days, inflation. So if you have money sitting in a checking account, savings account, you have to ask yourself, what is that doing for you? Number one. And, and then this question was presented to me by a mentor of mine as I started to go down this rabbit hole of like, okay, what do I do with this? And, you know, I started buying treasury bills because interest rates were high, like 5%. I yield savings accounts and things like that. Okay. But I was start, I wanted to start, I started thinking more longterm, like how do I, how do I build longterm wealth here? And the question that was proposed to me was if you're going to save money, why not save it in the most efficient way possible? That, that question really changed the trajectory for my wealth building journey and a big part of Millennial Wealth Creator. That's when I discovered the Infinite Banking Concept.

Pablo Gonzalez: 33:51

Okay.

Matt: 33:51

And it blew my mind. I've always been really curious about

Pablo Gonzalez: 33:53

the Infinite Banking Concept. Oh man. Explain it to me.

Matt: 33:56

Okay, so the the simplest way I can explain it is an analogy, right? Because it's a long rabbit hole that we could go down. Yeah, but here's the question. Yeah, it'd be a

Pablo Gonzalez: 34:03

whole episode

Matt: 34:04

Yeah, it absolutely could you just see the channel how much content I have on that.

Pablo Gonzalez: 34:09

We'll have so we'll have to figure that out Yeah, so

Matt: 34:11

here's here's how I describe it to people.

Pablo Gonzalez: 34:13

Mm

Matt: 34:13

hmm It's with a question if your bank called you up and said hey Pablo, we have this brand new savings account. We're going to pay you 4 percent uninterrupted compound interest for the rest of your life. Okay. On top of that. Better

Pablo Gonzalez: 34:27

than what I'm getting in my savings account right now.

Matt: 34:28

Right. Pretty good savings. High yield savings account. Decent.

Pablo Gonzalez: 34:31

Yeah.

Matt: 34:31

Okay. On top of that, we're going to let you use the money in the account to build wealth like you normally would without interrupting the compound growth. And on top of that, if you were to pass away, It's going to blossom into a massive income tax free death benefit paid out to your loved ones. Does that, does that sound like a good savings account that you'd be interested in?

Pablo Gonzalez: 34:53

From first principles, yeah. Okay,

Matt: 34:55

so if you say yes to that question, Infinite Banking is absolutely something to at least research. Now, it's definitely not for everybody. I'm not one of the, these guys that say, Everybody needs to do Infinite Banking. Absolutely not.

35:06

Yeah.

Matt: 35:07

And we can get into who is right for who it's not. But the point is it's a very, we use custom design, dividend paying whole life insurance policies. They're very efficient savings vehicles. Now I know I'm going to lose some people now because when you hear whole life insurance, but see again, this is my pushback against the system. Pablo, we've been taught. So by so many people for so long, whole life insurance is bad, terrible investment. It's not even an investment. It's a very efficient savings vehicle, right? I say it's a comparing apples and tater tots. When people compare the returns in the stock market to whole life insurance, you know, Dave Ramsey talks about that all the time, hates whole life.

35:43

Yeah. Okay.

Matt: 35:44

But did you know you can custom design it? Did you know that it's a very efficient savings vehicle that allows you to build wealth without having your money in a useless fricking checking or savings account, right?

Pablo Gonzalez: 35:54

It sounds, it sounds almost like the amount of misconceptions around rental property investing, right? Or like, or, or even real estate, right? There's, there's all these reasons. There's many ways to do it wrong. Right, and there's many ways to, there's, there's many kind of like horror stories of people that came into it not with the right strategy for it, that it didn't work out for them, but then there is many, many stories of people succeeding with it. Sure. What I'm, what I'm taking away from Infinite Banking, because I also come with these like preconceived notions of just like my Northwest Mutual guy wasn't really like in it for me. What I'm hearing from you is, There is definitely wrong ways to do it. And then there is and then there's right ways to do it, which is Sounds like from the outside is not just count on doing it as the thing But it's like doing it as a thing within a greater strategy. Absolutely. That allows you to go.

Matt: 36:40

That's a very good point So infinite infinite banking works for people going back to the term the phrase that I brought up earlier Who think they who know they are their greatest asset?

36:50

Yeah, okay

Matt: 36:51

again, we're not relying on a financial product or strategy. Mm-Hmm. you are the strategy. You are the person that makes something like infinite banking actually work. Okay. And again, just sharing my journey. So I,

Pablo Gonzalez: 37:03

Leslie Wilson, the Maven from the mountains of Indu of, of, uh, Denver says another term for this is called Bank on yourself. I've been doing this for 30 years. It is where. I got the down payments for my properties. No tax consequence of withdrawal or loan money from your cash value life insurance policy on unlike selling a stock. I love it. You're people. You're people.

Matt: 37:20

It's people in my corner. I love it. Yeah. It is absolutely one of the most powerful financial strategies I've ever seen. Mm-Hmm. for the right person. Yeah. But, but as I started to learn it, it was an absolute. No brainer, because it answered the question, if I'm going to save money, why not save it in the most efficient way possible? So, the great thing about these policies is they solve so many problems with one policy. Got it. Right? Like the analogy I just gave you about the, like, we don't set these policies up for the internal rate of return. I like to think of that as just a bonus. If you're, if you get excited about high yield savings accounts and you've been investing in treasury bills because interest rates are high, you probably would actually like whole life because it's custom designed to, they typically net three or 5 percent tax free compound growth for the life of the policy. That's a good savings vehicle. Okay. But

Pablo Gonzalez: 38:09

real quick, you don't sell these policies. This is just a vehicle that you have used because you are, you're a 36 and this is like, you're telling your life story, right? I am. I

Matt: 38:18

actually, I can sell. Oh, okay. So yeah, I absolutely want to help people set these up because I know how much of a game changer they've been in my life. So give me a couple of

Pablo Gonzalez: 38:26

questions. You keep talking about like, it needs to be custom designed. What are a couple of questions that Somebody would want to ask to make sure that they're getting the right like custom design kind of thing.

Matt: 38:34

That's a good question. So, the first thing is how much cash value do you have access to in the first year? Okay, that's a big one. All right, if you have zero cash value in the first couple of years Your agent's probably not setting it up, right? He's probably setting it up for his commission Right. See when people bring up the commission thing, when we, when I set policies up, I drive my commission into the ground because we're lowering the death benefit and we're increasing the amount of cash value that you have access to in the first year. Okay. Okay. So when I say

Pablo Gonzalez: 39:01

cash

Matt: 39:01

value at the end of the first

Pablo Gonzalez: 39:02

year, that's over benefit.

Matt: 39:03

That's huge. It should net three to 5%, right? Again, high yield savings type of internal rate of return. All right. But the big thing is the cash value. How much cash value are you getting in the first year? That's the big thing.

39:15

Cool.

Matt: 39:16

When you're talking about, if we're talking about implementing infinite banking, because you have to have access to cash value in order to actually implement this strategy.

39:23

Got it.

Matt: 39:23

Okay. Perfect. Perfect example. So when I started learning about this, again, still on step two here, building the vault. All right. So I had this money sitting here, not really doing much. So I moved the money into my policies. And immediately had access to about 85, uh, it was like 90 percent of that money within the first 30 days. I took my first policy loan within the first two weeks. So I'm really all I'm doing is I'm shifting money from a useless savings account. That's not really doing anything for me into this policy that provides a multitude of different benefits. Right? And so what we're able to do at that point is now I can borrow against the cash value, build wealth like I normally would. Got it. Okay. So

Pablo Gonzalez: 40:05

step one, invest in yourself. increase your revenue, right? Like increase your skill set. Step two, bank on yourself, invest in yourself, then bank on

40:14

yourself,

Pablo Gonzalez: 40:14

right? Find the most efficient way to like, do this right now. You know, your idea of like this, like, infinite returns, whole life insurance structured in a way that maximizes cash value. You're one versus death benefit in order to like, continue this flywheel going step three.

Matt: 40:31

Yeah. Well, real quick before we get started, just clarify clarification on No such thing as infinite returns. Don't want, don't want people to get confused. Like this is like a magical, right? You know, fix all the problems. We're going to make all this money. Whole life is not going to make you rich. Even though what I do stress to people, if you start this early enough, compound interest is an amazing thing. For sure. I know 4 percent is not a sexy rate of return. Yeah. Okay. But you do, you let that compound uninterrupted, tax free for 40 years, 50 years. It could turn into a pretty decent amount of money. And the beautiful thing about infinite banking is that we're able to use the money without interrupting that compound growth. Okay, so I'm almost making money twice as I get to step three here. Yeah.

Pablo Gonzalez: 41:13

Things we love about real estate, like cash out refinancing and stuff like that. 100%. Yeah, I got

Matt: 41:17

it. So step two, we're building the vault. All right, saving up the money, putting it into a very efficient savings vehicle. That's step two. Step three is okay, now we have our vault, right? Maybe I have this policy, you know, I, it absolutely was a no brainer to me. Okay. How do I actually start building wealth here? How do I put, how do I deploy this capital here? Okay. Now, one other thing I want to say is I never tell people like move all their money into a policy. That's stupid. I still have money in the bank. I moved my emergency and opportunity money into these policies, the money that I'm going to be utilizing to build wealth. Okay. So. That's when I started going down the rabbit hole of different ways to invest in real estate. Because again, I'm not a stock market guy. I don't like these tax qualified plans and stuff. It just doesn't make sense to me. It's really interesting when I ask people do you think taxes are going up in the future? Most people say yes, but they're putting all their money into these tax qualified plans to get the tax deduction now. But you just said you think taxes are going up. In the future. So you're going to end up paying more taxes on a higher amount later on down the road. So I'm not a big fan of those types of things. I really like real estate. So for me right now, what made sense, I wanted something passive because I'm more focused on building my YouTube channels for content.

Pablo Gonzalez: 42:31

Your active income.

Matt: 42:32

Correct. I don't want to be an active investor right now. I don't want to be doing the fix and flips. Not at the moment, maybe later on. That's when I, I discovered private lending. That, that was my, my first deal in real estate. And Again, it was one of those things that was just such a no brainer to me because we take the bank on yourself, infinite banking concepts here, and we combine it with private money lending. I am literally acting like the bank now. Because what does the bank do, Pablo? When you deposit money into a savings account, let's say they're a little bit higher now, but historically speaking, they don't pay much. One percent, let's use that as an example. What did they do with the money? Did they just let it sit there? No, they lend it out at four or five, 6%. They're making hundreds of percent rates of return on that. They pay you 1%. They lend it out at five. Well, what I'm doing with my policy now with the infant banking concept is I'm borrowing against my policy at five and a half percent. I'm now lending it out on a piece of real estate at 12 percent plus points. And now I'm creating positive arbitrage in the wealth building process. All the while, My money in the policy is still getting that uninterrupted compound growth. You know why? Cause I borrowed the life insurance company's money to do it. Just like the bank uses our money and pays us an interest rate on it and then lends it out at a higher rate. I'm doing the same exact thing here. I'm borrowing at five and a half percent, lending it out at 12. And I love private money lending because it's backed by hard asset Again, you alluded to this earlier, like there's right ways to do things, wrong ways to do things. When you hear private money lending, oh, that sounds risky, right? You're gonna give your money to a complete stranger halfway across the country? What the hell's the matter with you? Right? It sounds cuckoo. But when you do it right, it's actually pretty risky. Far less risky than what we're taught and told of what you might think it is or how risky it is in the beginning. It's not when you know what to do. And I love that it's backed by the hard asset. And I'm sorry, if I'm able to get 12 percent plus points on my money, why on earth would I stuff money into a 401k and hope that the stock market is going to perform over the next 30 years? Yeah, I, for me, this is a, it's a strategy that is, gives so much more control back to us in our own personal lives to build our wealth versus relying on Wall Street.

Pablo Gonzalez: 44:46

you said doing it the right way, like, just like in like a minute or two, is there, is there kind of like right, wrong, wrong way kind of guidance that you can give that to?

Matt: 44:53

Yeah, sure. I'm definitely not an expert yet. This is my first private money loan deal that I've done. But I took six months before I ever did my, my first deal, just learning. Educating myself on how to do it. Right. The couple of big things that I learned from my mentor was the loan to value. Don't go. She recommended 65%. I did 70. I'm okay with 70 percent loan to value. You don't want to loan much more than that. Cause you start to really increase your risk if the deal goes south. Yep. All right. You want first lien position. You could maybe eventually do second lien positions. As you get more experience, you work with, you know, More investors and stuff, but generally when you're getting started, you want first lien position just like the bank does so that if the deal does go south, you can take possession of that property and make all of your money back. All right. That's a great way to protect yourself. Insurance being, you know, title insurance, home insurance, making sure you're on that. And then working with the right investor. All right. That was a team that's done it many, many times

Pablo Gonzalez: 45:46

with a track record.

Matt: 45:47

I sleep very good at night with my money deployed with the investor that I have. And he was introduced to me, by another mentor of mine who's done a million dollars of deals with him. This guy has been an investor for a long time. He's on tens of millions of dollars in real estate.

46:01

I

Matt: 46:01

was like, dude, take my money. How much can I give you?

46:04

And, uh, yeah,

Matt: 46:04

12 percent plus points with an experienced investor, never lost money for any of his private money lenders. You know, things like that, that, that significantly reduce your risk. At the end of the day, it's really educating yourself. that's what reduces your risk. But those are some of the main things when it comes to private lending.

Pablo Gonzalez: 46:21

I like it. I like it. So, so then we are, you know, we call that around here, what you're describing this idea of taking money that's performing at a certain level taking a loan, you know, taking a loan at a certain rate and then putting that into an investment that performs at a rate much higher than that, that is risk adjusted. We call that financial engineering around that. Right. So like I'm hearing from you, essentially, it's like, Step one of the millennial wealth create millennial wealth creation blueprint is this idea of investing yourself to increase your active income. Step two is build the vault, find the most efficient strategies that you can that allow you for growth and leverage, which you're using this universal life insurance stuff, right? Whole, sorry. Stay away from universal life. So, okay. So whole life, whole life insurance. Yes. Whole life insurance products. Maximizing cash value versus death benefit. And then once you're got there, you are taking loans against that to create the financial engineering standpoint of doing private money lending. in which you are lending on hard assets with experienced investors with a great track record, taking first lien positions, and no more than a 65 to 70 percent loan to value ratio.

Matt: 47:28

Correct.

Pablo Gonzalez: 47:28

I got it so far.

Matt: 47:29

Give me

Pablo Gonzalez: 47:29

step four, big man.

Matt: 47:30

All right. So step four is going to be more of the legacy building. I'm still working on that. It's, I wouldn't call it a major part of my blueprint just yet because it's something I'm still working on and I don't like to share anything that, you know, I'm not, unless I'm interviewing an expert on it on my channel or whatever. I don't have too much to share on it just yet other than you know, the, the plan is to have a trust, a web of trusts as well you know, avoiding probate and all that stuff, passing on generational wealth. I do have part of that like you naturally have part of the legacy aspect of the blueprint figured out when you start implementing something like infinite banking because these whole life policies by the time I'm 80, 90 years old, we're talking about a lot of death benefit that gets passed on to my loved ones. That's a legacy play income tax free. It avoids probate. It's a huge legacy play.

48:19

Right.

Matt: 48:19

So, there's going to be a lot more to part four as I start to put that into. Still being written. It is. I'm still focused on steps one, two, and three right now. And I'm basically, when you're implementing step three, you're going to rinse and repeat.

48:32

Yeah.

Matt: 48:33

Like always increasing your income, always stack in your vault and then putting the money in the vault to work, whatever that is for you. Maybe it's private money lending. Maybe it's fix and flip. Maybe it's the stock market. I, you know, whatever, whatever your thing is. All right. But, For me, doing it in that order is the most important part and is what is going to set people up for far more success than what we're taught by mainstream media. That

Pablo Gonzalez: 48:55

is how you build wealth outside the system. I like it. I like it a lot, man. I like that you have a vision for the for the legacy piece of it. I also happen to know that you are kind of like in like finalized steps of acquiring a JWB property. That's right. Big carding part, official part of the JWB family. You didn't mention passive income rental properties in there. So how do you, how do you see this? How do you see this? Like. I assume you're going to build a real estate portfolio of rental properties. How do you see that fill it, fitting into this whole blueprint?

Matt: 49:22

So for me, everybody's going to be a little bit different, but for me personally, I'm going to continue using my policies for the for the private money lending. That just makes sense to me. And then again, as I increase in my income, I'm stacking my vault. What's another way? What's another area that I can put that money to you start to diversify a little bit now I have more passive income streams coming in. Yeah. So yeah, I'm working with Frank right now We're looking at inventory just to figure out which one is gonna be you're on the third call We just got done with the third call. Let's go. That's

Pablo Gonzalez: 49:54

cool. Yeah

Matt: 49:55

Yeah, I've got a big plan for that as well. A whole new aspect of what I'm going to be talking about on my channel is the concept of velocity banking. And what that comes down to is using a line of credit to accelerate the mortgage payoff process.

50:08

Yeah.

Matt: 50:09

Again, Pablo, pushing back against the system. What are we taught to do to pay off the mortgage faster? Make extra payments or maybe get a 15 year mortgage. Not saying there's anything necessarily wrong with that, but my question comes back to if there's a much better and efficient way to do that, would you want to know about it? Hopefully the answer is yes. Well you can actually use a HELOC or a personal line of credit to significantly accelerate the mortgage payoff process. If you do it right,

50:34

you

Matt: 50:34

educate yourself, you do it right. So my plan, I have other capital outside of My policies again because I focused on increasing my income that I'm gonna take it's sitting in Treasury bills right now It's doing like 5 percent whatever. I'm gonna I'm now moving that into that's all gonna be used for the JWB property

Pablo Gonzalez: 50:52

Okay. All

Matt: 50:52

right, and then the plan is as soon as I'm able to Get the equity line of credit on it

50:58

and

Matt: 50:58

start to implement the velocity banking system. I'm going to pay that sucker off as fast as possible. Use that to acquire more JWB properties. And it's a snowball effect at that point. So I guess to bring this full circle, the idea is when you educate yourself about different ways of doing things outside of the system, you start to realize, Holy crap, there's a much better way to do this than what I've been taught. And the light bulb moments start to go off. Right. And it's not going to make sense for everybody, but for people who think they're the greatest, they're, they are their greatest asset who want to build wealth in the most efficient way possible. And you start learning this stuff. It's like, I want nothing to do with what the system is trying to shove down my throat, man. I'm not interested at all.

Pablo Gonzalez: 51:39

Yeah. That is, that is something that I've learned over the last four years, hosting this, hosting this show. It's been like, it's been impossible to deny, right? Like this thing. Let me ask something else though. You are, I'm also a particularly lazy person, right? Like I'm a big vision storyteller. You're calling me lazy? No, no, no, no. I'm a lazy person. I see you as like a tinkerer. I see you as a guy, like. You know, when you read the tipping point, you hear about like, the maven and the connector, right? Like I'm the connector which likes to like go out there and tell the world and then there's people like Leslie Wilson and you Who educate yourself on everything like to tinker with things like do that type of stuff. And I see you as a guy that could You know, you've built a network, you have all this knowledge, you could be investing in real estate in any fashion possible, but yet you are picking to build the, this like army of income properties through JWB passively in this way that some people look at it and think, well, if I'm an expert, I can, I can make a little bit more margin or do it more myself. Why, why are you picking it to do it with JWB now that you're moving into this part of the fantastic

Matt: 52:42

question? Glad you brought it up. So, number one, I love JWB like, like we kind of alluded to it earlier. I was one of the original interns and I've just always loved this company. Just a fantastic group of people that work here. I love the business model as well. I always have this concept of buying turnkey rental real estate that I don't have to negotiate. I don't have to find the property. I don't have to negotiate with the seller. I don't have to fix it. I don't have to do any of that.

53:07

No,

Matt: 53:07

I'm literally buying cashflow. Okay, so if we're following this millennial wealth creator blueprint, unless your goal is to be a full time real estate investor, then something like JWB, Turnkey Properties, is a complete no brainer. Because I want to still focus on creating content, growing the YouTube channel, sharing my journey, building my marketing agency. I don't want to be doing fix and flips and stuff. So could I make more money if I did my own deals as opposed to lending it on the deal that I did? I mean, my investor is going to make way more money than I did. I didn't have to do anything. I literally just put the capital to work. I lent it to him. So we could argue that that's a very passive way of investing in real estate as well. And what that allows me to do is continue to focus on my business. So for me, turnkey real estate with JWB is just a no brainer. They have the track record. You guys been around a long time. I know the team very well. You guys have just like your growth. You just exploded, man. You guys have the system, you have it figured out.

54:06

To

Matt: 54:06

me, if you're looking to build a portfolio, if you're a business owner or somebody who's busy, that doesn't have the time. and be a full time investor. Why not do this? You guys also have the fund as well. You know, there's, so there's a couple of different ways that, you know, people can get involved with JWB, but yeah, to me, it's just a no brainer. I'm building my real estate portfolio while I'm still able to Focus on my business.

54:32

Yeah,

Matt: 54:32

that's gonna increase income allow me to build more build my portfolio even more. It's that snowball effect, man So I'm just gonna repeat that process over and over and over again

Pablo Gonzalez: 54:41

You said a couple of things that I feel like everybody says and you said a couple of things that I feel like not a Lot of people say but I completely echo with right the things that the things that I think are apparent to everybody is track record and completely passive experience so that I can not be a real estate investor and still be a real estate investor. Right. Right. Like that's real 17 years, multiple, like more than one downturn in the real estate market in the game. Right. Like

Matt: 55:05

you guys got started during The downturn. Yeah. 2006, 2006. Yeah.

Pablo Gonzalez: 55:10

Yeah. Yeah. Like I look at, I look at some of like the, the, the real estate content creators these days. And I'm like, dude, you with your pink hair, you were not buying houses in 2006. You know what I'm saying? Like, like, don't, don't bring me into your, don't bring me into your syndication when like, you've been doing this for like five years and like, I can get into it. Just because you're on

Matt: 55:27

YouTube doesn't mean they're next. Yeah. Yeah.

Pablo Gonzalez: 55:30

A hundred percent. And then, and then, but the other thing that I think that I think it's often under, undervalued. And it's one of the big reasons why we started the show is you've been inside the machine. This was like, you, you were here. 14 years ago when it was just like an apple in Alex and Greg's eye and, and, and Adam's eye. And they're like building this thing and you already knew that they were building it the right way. And you come back here 14 years later and the track record and all this stuff makes a ton of sense because you've seen inside the machine. For me, it was like the first time I stepped into a Tuesday morning meeting, I'm like, this place is magical. I want to invest with these people or work with them or both. Right. So, and then, and then the other part of it is, Man, the business model, dude. Like I, I, you know, I'm now very well seeped in the world of real estate investing. I am helping these like technology companies that sell into, into the property management world. And I've, I just got back from one of the biggest property management conferences in the world. Nice. Wait, so do you guys ever like sell to investors and do this thing turnkey? Because don't you realize that like, you can be acquiring this stuff and your inventory makes money for you, that you can then be like selling it to an investor and then managing it for the lifetime value and liquidating it on the front end, you know, like the business model of like this flywheel akin to like an Amazon where like every piece of the business makes money for itself, which de risks it for me, because I know that they're going to be financially well off is like, It's like reading a Jim Collins book. It's reading good to great and watching it play out in, in, in real life, which, which I absolutely love, man. But I see that in your system, right? Like I see like every piece of your system feeds itself. I talk about flywheels all the time because it is a core concept of. I think building a great business. And I love the way that you have found a way to create a flywheel for yourself where you still win in every part of the flywheel and you still get to continue every part of the flywheel. You've, you've upskilled yourself. You continue to upskill yourself, right? Like your, your mark, you've gone from marketing expert to AI expert to you're becoming a dangerous financial expert as well. Right? Like, to, and by dangerous, I mean like, well, well versed, right? Like, to then figuring out. the, the most highly leveraged way that you can do banking to then figure out the most highly leveraged way that you can increase the value of the vault that you have built to then, you know, continue to like get leverage and leverage and leverage. Like you've become a financial engineer to the max.

Matt: 57:50

100 percent dude. And again, I just gotta keep going back to pushing back against the system because we're taught to do the opposite. We're taught to segregate. everything, right? We have our checking account. We have our 401k. We have our mortgage. We have our student loan debt, blah, blah, blah, blah, blah, right? So we have all these different things going on. We don't have, we're not taught to create that flywheel system that feeds itself. I'm telling you, when you create that, it's life changing. And I got my first experience with it in my marketing agency. When as I was building my channel, I started to create referral partners like partnerships and stuff like that. And what I realized was that my YouTube channel feeds my marketing agency. I get the leads. I get leads from it every single day. All right. They turn into clients, but now those clients I can refer to my partners, which generates additional revenue there. And I can, I can recommend this. I can recommend that I can recommend other products that I sell, whatever, whatever. So without really knowing it, I started to create this flywheel system in my marketing agency that this part feeds, this part, this part feeds that part. And boom, it just did, it just took off.

Pablo Gonzalez: 58:57

To me, that is at the core. What you just said without saying it is at the core of I believe in, which is relationships over transactions. If you can create, if you can create real, you know, transactionals have diminishing returns, transactions of diminishing returns, relationships have compounded returns. If you can create great relationships with whether it's your client or whether it is the different facets of your business, having relationships with each other or the different facets of your wealth creation plan, right? Like the more that you start to build the relationship between people, processes, And, and, and, and strategy, and it all starts to feed, that's when you reach this like flywheel level, man. I couldn't agree more, man. Some

Matt: 59:36

of my biggest deals have come from those relationships. Yeah. Within that flywheel

Pablo Gonzalez: 59:42

And that's, that's another thing that to me was very obvious the moment I stepped into JWB and I've continued to live it, right? The way that they value relationships, the way that they all go above and beyond to, like, make things right, if there is an issue you know, throughout this, and I think you, you get stories about that as in, in the community all day long, right? Like, it's the way that I met Lee Bishop, right? Like, crying over, like, them going above and beyond when something hard happened to him and then giving me a big bear hug. When you meet him, you'll, you'll get a big bear hug from him. Yeah. Awesome, man. Matt, let's answer. We got three questions in the Q and A. Lee Bishop, MVP of the community. You may have heard of him. He says, I have family members who like to have a mortgage on their primary residence in retirement. I am not sure how to talk them into paying off the loan. Is there advice you can share about this subject? By the way, welcome to the show.

Matt: 1:00:27

I appreciate the welcome. Yeah, I'm welcome. So first off, I would say, I would dig deeper into why they want to have. Oftentimes I think maybe it's like the mortgage interest deduction, I guess, but that's never really made any sense to me either though, because you're paying 10 to save 1.

1:00:46

Yeah. Right.

Matt: 1:00:47

When we're talking about like how much interest you pay on a mortgage and then you get the deduction. So maybe that's why. At the end of the day, I don't try to, I really don't try to convince anybody of anything. I just, I share what I understand about these types of things. Like, Hey, Mom and Dad, notice that, you know, you still have the mortgage here. Is there a particular reason you want to have the mortgage? Or if there was a way that if I could show you how to pay off that mortgage very quickly without making extra payments, is that something that you'd like to do? You know, so that you're debt free, you know, that puts a bunch of money back into your pocket, right? Something like that. You know. not trying to shove anything down their throat or anything like that. But I would, I would dive into why they, they still want to pay the mortgage. I like

Pablo Gonzalez: 1:01:28

that. That's another kind of like core value of mine too, relationships over transactions and approach with curiosity over judgment. Correct. Right? Like ask great questions. Great

Matt: 1:01:36

question. You're not going to get anywhere with anybody. If you're judging,

Pablo Gonzalez: 1:01:39

Anonymous attendee says, what can I do? I think this was talking about when you were talking about increasing your revenue your active revenue and anonymous attendees asking, what can I do to withdraw my money from a traditional method and financial advisor for this type of investment? I want cashflow now, not 20 years later.

Matt: 1:01:54

Okay. So I gotta be careful with that. Yeah. It's

Pablo Gonzalez: 1:01:57

a loaded question. Yeah.

Matt: 1:01:59

I can't, I'm not giving specific financial advice. You would definitely want to consider the tax consequences of doing something like that. If it's locked up in a. tax qualified plan. Sometimes it makes sense to take the hit and move it into something that's going to give you more control of your capital so that you could put that to, to, to good use and start to set up your a strong financial foundation. But you would definitely want to work with a financial advisor or at least a CPA to see what that hit would be. And then also I would, before you do that, come up with the plan about, okay, so if you were to do that, What are you going to do afterwards?

1:02:34

Yeah.

Matt: 1:02:35

Okay. Again, we don't want to be relying just because I said infinite banking and whole life insurance, that doesn't mean we need to dump money into the whole life policy and that's going to solve my problems, right? It's a very specific strategy that involves you actually implementing. Wealth building concepts, utilizing the policy. So I would make sure I w I would start with a plan on how do, how are you going to increase your cashflow? The other thing I would say too, just real quick you want cashflow now, again, I would go back to step one. Is there something you can do with what you're currently doing to increase your income? Can you get better at what you're currently doing? Can you learn a new skillset and also start sharing your journey? I tell this to everybody. start some type of content channel, share your journey. This would be a perfect example of sharing content where, hey, I was in this position of, I had my money locked up in a traditional investment. I didn't know what to do. Here's what I did. Here's what I'm doing now. Dude, that kind of message spreads like wildfire.

Pablo Gonzalez: 1:03:32

Agreed. One other thing I could not agree more with you and me have brought out about this already, but like starting a content channel, Having a stage to offer others will forever, like, change the way your access to people and your access to information and like, you know, the way that people see you. So I totally agree with that. One other thing I would say to Anonymous is your financial advisor works for you, you know, so you're, you're allowed to ask questions, right? And what I find is, cause I've taken some unpopular decisions based on my financial advisor's advice. I think it's also interesting to ask, how are you incentivized? Right, like that, that will, by, by understanding the incentives of the equation for all people involved, that'll help you make better decisions on whether or not you want to go with the advice or not.

Matt: 1:04:16

Right. That's a, that's a very good point. Because a lot of the times the incentives are out of alignment.

Pablo Gonzalez: 1:04:21

100%.

Matt: 1:04:22

So if you're not getting the answers that you need, I mean, I would do your own research first, go into it prepared, ask questions, see how they respond to those questions. And you should be able to tell pretty quick whether or not they have your best interest in mind.

Pablo Gonzalez: 1:04:35

Because money outside the system, often if you're working with a financial advisor that operates under assets under management, under management, it's always in the system.

1:04:42

Yeah. Right.

Pablo Gonzalez: 1:04:42

So like it is, you know, I'm not saying that they're acting against you or not, but incentives really, really matter as an economics major. I can tell you that right now. Mystery man, Denny Davis says, Matt, thanks so much for being here today and welcome home to JWP. Love that. Is the whole life product to which you are referring an equity index, universal life insurance product with a high cash value.

Matt: 1:05:01

Oh, great question, Denny. I got to be careful here because I can really go off on a tangent about indexed universal life. I'm going to tell you, this is actually one of the primary reasons I started Millennial Wealth Creator because when I started going down the rabbit hole in step two, started learning about infinite banking, I came this close to buying an indexed universal life policy. Alright, because it's, it's talked about and presented as this amazing financial product. You get upside potential in the market, downside protection, all this tax free retirement income. Yeah. Not so much. When you look below the surface and actually understand how those products work, for me, I wanted absolutely nothing to do with them. And I thank my lucky stars every single day that I did not buy an IUL. If you go to my channel, you're going to see a ton of content all about the risks involved with indexed universal life insurance. Not saying that it can't work for some people, But it is, it is sold as something that it is not. All right. So be very careful with index universal life. So, but to answer your question, we are absolutely talking about a custom designed dividend paying whole life insurance policy. If you read become your own bank or becoming your own bank by Nelson Nash, who created the infinite banking concept. He specifically. Like you can't use, you can, but you don't want to be using IUL with infinite banking. It's just not what it was ever meant to do. You want to be using whole life because if you're using IUL, you're injecting so much risk, so much more risk into the wealth building process. When we want to be reducing that risk. By using whole life. So it's always whole life. It's never, ever, ever indexed universal life.

Pablo Gonzalez: 1:06:35

Thanks, Matt. I will check out your channel. Much appreciated. That's a millennial wealth creator, Denny Davis. If you get Denny Davis on your side, Denny Davies, Denny Davies on your side, Denny, Denny's the man I'll tell you more about. We call him the mystery man because we can't really talk about everything. We can't first rule about Denny Davis is not to talk about Denny Davis. Yeah. But I'll tell you, I'll tell you off the, I'll tell you offline how, how much the man he is. Okay.

Matt: 1:06:56

Well also real quick, Denny, if if that is something that you're considering and you want to have a conversation about it first check out the channel, but I always have links to my calendar. We can have a conversation and go into more detail about what you need to be careful with. With IUL, so just throwing that out there. Love

Pablo Gonzalez: 1:07:09

it, man. By the way, I'm definitely, that was one of the questions I was going to ask, is how to get in contact with you. Go to the Millennial Wealth Creator YouTube channel. You're going to see his face on it. It's undeniable. There's links to his calendar right there. I'm going to set up some time with you, man, because I'm really interested in this, in this concept right now, especially in the stage of life that I'm in. Buddy, I want to thank you for being here, man.

Matt: 1:07:27

Man, I want to thank you for the opportunity. This was awesome. Again, I, I got, I got chills a little bit coming over here, you know, walking into the building the first time and I'm like, I can't believe I'm here. Like, this is just so awesome. I love you guys. Great company. It's been an absolute pleasure and I really appreciate the opportunity.

Pablo Gonzalez: 1:07:39

Yeah, man, you, you totally over delivered for me. Like, I feel like we are kindred spirits on many, many different levels. I think we're going to do a bunch of cool stuff. Together here T, you know, TBD, but like, I think it's, it's going to be a growing compounding relationship investment here. Uh, I want to thank the community for being here, always asking questions, always contributing to your never goes unnoticed. They take an hour in the middle of a workday to hang out with us here and be welcoming to others, you know, be brave and like ask questions and check in on the roll call. So really appreciate you next Tuesday. We, um, and our community has grown a lot over the last couple of years. And, and what we realized is that we've got, we've got a lot of questions over and over again. We're going to have a, a most asked question shows about how to get started in real estate investing, what this whole thing is about. I can't wait for the, the OGs of the community to be here, to answer it your own way in the chat. But if you're new here and you're just kind of like, man, I feel like I got here and everybody's, everyone's at 60 miles an hour. I'm here in the school zone and I want to go like 15 and catch up. It's going to be the perfect, the perfect way to catch up. So join us next Tuesday. from now till then. Matt, you got any advice for people of, uh, of, uh, what to do, uh, from here till then?

Matt: 1:08:46

I'll say how I kind of end most of my podcast. Always do your own research, guys. Question everything. All right, you start questioning things. That's when you start going down the rabbit hole, finding things that work way better in your life. And I'm talking about every aspect of your life, not just building well, I'm talking about health, relationships, building wealth in general. When you start to question the things that society has pushed on us, man, your life can change for the better. So always do your own research, guys.

Pablo Gonzalez: 1:09:11

Product of his own research. I asked this guy if he wanted to grab lunch before the show, he's like, ah, I do. I don't eat till one because my body chemistry, blah, blah, blah, intermittent fasting. I got one piece of advice for you from now till then. Don't be average. See you