Hi, I want to talk about Financial Fortress. So I want to talk about what Financial Fortress, truly is. Financial Fortress is something I’ve been working for myself for 50 years and I work with people to create this. As a general guide Financial Fortress, I put some numbers because people think what is Financial Fortress, what is financial independence, what is financial freedom? People have all sorts of ideas.
To put it financially into some numbers depending on which state you live in, a million to two in residential property. The second part of Financial Fortress is a million to two in commercial property. And the reason we use commercial because it has such a high yield, it’s a great marketplace to be in.
I specialize in commercial property. Where I’m recording this, I own this, I own the one next door and the one across the way. I deal in commercial, I have done for 30, 40 years. I’ve made a lot of money in commercial property. I find it’s a higher yielding position than a residential. This means you get a higher rental. You get a longer tenant like five years plus five years plus five years. You get personal guarantees. It’s just a better deal.
Now it’s a skill, you’ve got to learn, I get that a lot of people don’t understand commercial. They think it’s risky. I think residential is more risky. I’m in both. I flip properties. I do both. I’m not saying that one’s better than the other. I like people to start in residential property. However they’ll end up in commercial I think.
And when I say commercial, it’s industrial buildings, office buildings and even in some cases, shops or if you like restaurants, things like that, higher risk areas, but depends who the operator are. We’ve put a lot of franchises in those sorts of situations.
So one to 2 million residential, one to 2 million in commercial, one to 2 million in your super fund, self-managed preferably.
This is where it’s a trust. It’s a very effective tax area. It’s got a lot of flexibility about where your future belongs and a current legislation. I’m not giving you financial advice here, but 10% is taxed on growth and when you sell something and 15% on trading. So it’s very, very low taxed environment, self-managed super fund. Now a lot of people go, “Oh, I’ve only got $20k, only got a $100k, I’ve got $50k, you know”.
A lot of people have never been shown how to do a Self-Managed Super Fund. A lot people are not being taught this. In fact, it’s not even on their radar. They think they can’t even access the money until they’re 65. A lot of people, in fact, 95% have less than a hundred thousand dollars in their super fund because they were never taught, they’ve just been working for money.
I know if you ask yourself the question how much time was spent at school or at university explaining how to run a self-managed super fund, how much time we spend on how to buy a property, how much time we spend on how to start a business, how much time we spent on the most basic thing, creating a loan, how much time was spent on that? Usually nothing.
You were just taught to get a job. In fact, I ask you the question, what did you really learn at school? What did you learn at university? So Financial Fortress, million to two in residential, million to two in commercial, million to two in super fund. And a $200,000 – $300,000 income, that usually picks everybody up pretty well. Now that’s between $3 million and $6 million in assets. It’s not 100 million, it’s not the Taj Mahal.
We have people who have more than that when they come and see us, we have a lot of people who don’t even have the dollar. They have more debt than they’ve got assets. Most people, you know in one or two areas they’re renting or they’re trying to buy a house. That’s the majority of our population. I think the figure something like 47% of people over 55, 60 years of age, still have debt on their house, substantial debt which many years ago, was like 20%.
So we’ve got people going into retirement with debt. So we’ve got some serious issues here in this country with lack of information. So building a Financial Fortress, you know, to me, is an extremely important thing. Now some of you watching this may be young and you might think, “Oh, I’ve got plenty of time.” Amazing how quickly it goes. There’s some in the middle range. They go, “Oh, well it’s getting a bit tough. We’ve gone through the mortgage stage and the kids, we’re still in it.”Then some of them are business people and really can be struggling or having good time. Then we’ve got our older groups who are going into their golden years, their retirement plan, and some of them don’t have houses. You know, to me it doesn’t matter where you are at, what decision you make, it’s where you going to go that counts.
So I’m serious about building wealth for people and particularly giving up their scarcity. I’m particularly interested in helping people who are serious about this. I don’t mind where you are. As I deal with people who are bankrupt, I’m dealing with three right now this week. I’m dealing with people coming out of bankruptcy. I’m dealing with people who have bad credit and it’s not bring your dying, bring your sick.
Anybody can change their circumstances by the decisions they make and how they focus. The only thing that grows in your life is what you focus on and what you give energy to. So if you’re serious, I am. Drop us a line, come and see us. Get some of the free gifts. Perhaps you could become an example for us.
Whether you’re a single mum or a retiree, a first home buyer, a person who has got a lot of properties. We have people who’ve got lots of properties and they are in minus. In other words, they’re underwater. Their mortgages are greater than the purchase price because the market’s gone against them. We’ve got people who’ve got a lot of property and they’re wondering what to do. So Where are you?
We have Seven Magic Steps if you want to write these down. The Seven Steps are basically where are you? The Seven Steps start with firstly your Income. Secondly, your Cash you’ve got. Thirdly, your Assets. Fourthly, your Spending. The fifth point, your Credit. Sixth, your Super. Seventh is your Tax. Now these are the dashboards of your life. Now some people don’t have an income, some people have got a job and that’s it.
Some people have got a businesses, we teach five income streams, minimum. Second thing, cash. Cash is not necessarily good, but some people are so worried they’ve just got cash. They are so worried to spend. But some people don’t have any cash. Most people have enough cash for a few weeks, maybe a month of their living. You really should have at least three months or redraw facilities for that.
Some people are buying a house, some paying off. Always think, well, one day you’ll be 65, if you’re not already. One day you’ll need to be not working. One day, if you don’t have an income stream outside of work, then you are not only a pensioner, but you’re going to be looking for a place to live. Then, spending. If you’re a serial spend, if you spend more than you earn, then that’s going to be an issue too. So that’s got to be dealt with. We have a specific plan called Strategic Spending.
Then, credit. These days, if you don’t have a credit card, you may have some real issues with just even getting into this country, renting a car. A lot of companies now, won’t rent a car to you, if you don’t have a credit card because they want to see that you can pay the fine if you damage it, the insurance. And they say, “If you can’t look after a very basic credit card, how are you going to look after their $40,000 car?” Or whatever price it is. A lot of hotels won’t let you in now or just stay at their lovely place if you don’t have a credit card. So credit worthiness is very important and it goes beyond just credit worthiness.
It goes beyond to be able to live in this world and have proper records for tax. To have a super fund, and we talked a little bit about that, to be able to run a super fund, to be able to understand that your ultimate wealth plans, there’s important trust in it. The tax department gives you great benefits here and I can assure you super funds are very, very important. They can buy property, trade property, buy shares, lots of things you can do with the super fund if you follow the rules. Understand I’m not giving you financial advice here, we’re just talking in a general sense and of course pay your tax, tax is optional. You have options to minimize that legally. So what do we call that? That’s called number one, where am I? These seven things.
Number two, where do I want to go? Where do I want to go next year? Where do I want to go in the next three years. What do I really want if I was wealthy, what are the things that block me from doing this? Where do I want to go? Where do I want to live. How do I want to have my life? How do I want to spend my time with my family? And then ultimately, how do I get there? Now I say, your job is to work out where are you? And be honest about that.
Second question, where do I want to go, and really, if you couldn’t fail? Is the question you want to ask and make it realistic in the sense of that, it’s no good saying, “I want $100 million, the Taj Mahal.” Most people when they write that, they say, “Well, what I want is a house, what I’d like is a car. I’d like to be able to travel sometimes. I like to be to help my children or you know, and I like to be healthy.”
Most people are very simple on what they really want. In this country, one of the richest countries in the world, there’s no reason why you can’t have that. How to get there is, I’m going to suggest as part of the problem, my challenge for you, my way of working this. I have a lot of strategies, a lot of different ways and I grew up in a place where I was not well taught. I came out of school without being able to read or write. I couldn’t spell. And I now have a bunch of companies. I think 69 was the last I looked. I think we’ve got more than that in entities.
I have a very interesting life. I’ve got two beautiful children. I’m very grateful to have and spend my time with them and my most amazing wife, the best wife one man could ever have on this planet. So I’m very grateful.
So if I can do this, anyone can seriously, anyone can, this is not rocket science. There is a discipline that’s required. There is a state management that’s required. There is wanting something, a desire, if you will. It’s not a question, “Well I wanted this, so I had to give up that?” No, no, no. You can have your family, you can have your life, you can have your financial freedom and you can have your health and wellbeing and you can have your spiritual connection.
You can have it all providing you’re in state. So I will leave you with that thought. Love to talk to you, love for you to come and talk to our team. We’ve got some free gifts here if you want to check it out, press the button. Send us an email. So I hope this has been valuable. Take care.
May you have a beautiful life, whether you work with us or not, but let’s see if we can, let’s see if we can mentor you to the next level. The next 3 years are going to be very important. Let’s make a step and remember, you take a step to grace, grace will take a thousand steps towards you. Today is the decision. Take a step towards grace. Take a step and come home. Get the life you want.
Written by Roy McDonald
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