In this solo episode, Jason Hartman discusses the three economic maladies – inflation, deflation, or stagflation (or stagnation). He looks into the total economic value that the entire human race produces every year. Jason also talks about the two commonly excluded components from the consumer price index to get the core rate of inflation and the IRS’s inexact calculation of inflation.

Investor 0:00
I really need to thank you and Sarah for being there for me, you guys could have easily said, This isn’t my problem. This is your problem. Your lack of due diligence is entirely your fault. And not done anything at all. But you guys have been there for me every step of the way. You responded on voxer at 342 in the morning, I know, it might have been 642 depending on where you were, but honestly, who works at that time. So just the fact that you guys were there for me, I appreciate it so much.

Announcer 0:32
Welcome to the creating wealth show with Jason Hartman, you’re about to learn a new slant on investing some exciting techniques and fresh new approaches to the world’s most historically proven asset class that will enable you to create more wealth and freedom than you ever thought possible. Jason is a genuine self made multi millionaire who’s actually been there and done it. He’s a successful investor, lender, developer, and entrepreneur who’s owned properties in 11 states had hundreds of tenants and been involved in 1000s of real estate transactions. This program will help you follow in Jason’s footsteps on the road to your financial independence day, you really can do it on Now, here’s your host, Jason Hartman with the complete solution for real estate investors.

Jason Hartman 1:24
Welcome to Episode 1620 616 to six today, we are going to talk about the asset matrix and how different asset classes act during different times. But we’ll get to that in a moment. Our guest today will be none other than yours truly. Jason Hartman. Oh, yeah, I gotta gotta have a little levity here in these crazy times. So it is almost the new year, as we say goodbye to a year that was absolutely crazy and really difficult for a lot of people. A lot of people had very, very difficult struggles this year. And, you know, I was some thinking, remember, when we had Andrew Yang on the show, he was the presidential candidate that ran largely on the idea of UBI, universal basic income. And several years ago, I was talking to some very bright, successful entrepreneur, but also libertarian friends of mine, actually, usually those two things kind of go together. And at least the new sort of modern entrepreneurs tend to be libertarian leaning, even if they’re interestingly, liberal. At the same time. You know, the political spectrum is not really a a line, it’s almost a circle in a way, right? You know, where you’ve got one end being the, you know, the left wing radicals and the other and being their right wing, you know, radicals and then in the middle, you’ve got the centrists that almost don’t exist. And as Bill Bonner, put it, so well, comparing the political environment in any country to a sailboat. And if any of you have been sailors, I was a sailor for about 13 years. Well, I guess, once a sailor all was a sailor, but the sailboat will list right, meaning it, it falls off to the side, right, it lists sort of hard to say that list. Yeah, whatever. Yeah, I hope you get it. So Bill Boehner said, politics always lists to the left. And that’s true, it always lists to the left because it always becomes more left in any environment. It goes, you know, it starts out on the right side of the spectrum, usually. And then, as a culture, a society becomes more prosperous, it becomes more liberal, it becomes more leftist, it becomes more complacent, more bureaucratic, more top heavy with expenses, administration, handouts, welfare, entitlements, etc, etc. And then it gets to a point where you hit the tipping point, where, as Mitt Romney famously what might have ruined his campaign for president, where he talked about the 47% how 47% of the people and this was years ago, obviously much worse now are on some sort of government welfare. And those 47% will not vote for a Mitt Romney or really any Republican. Although Trump kind of offended that idea, because he was a very non traditional Republican. He was actually for the Working Class, and he didn’t like the elite class. Remember when he insulted the ultra wealthy Koch brothers kmch Brothers, they are this, you know, incredibly wealthy family of companies, all private, all in the commodities oriented businesses pretty much and very, very rich people. And, and that sort of represented to Trump the old establishment, elitist republican class, and he didn’t like them. You know, he didn’t like that group. He didn’t fit in with that group. And he shunned them. And he really went for the blue collar, sort of middle class working Republicans and Democrats.

Remember that I reported to you right after Trump was elected the I’ll call it the first time, because maybe he was elected the second time do, we will see, we will see about that. But after the first time, he was elected. NPR, very left wing, put the microphone in front of the woman in the Michigan town that had always gone to the democrats historically, for you know, decades, decades, decades, Democrats always wanted, and she said, You know, people around here, all they heard is Hillary Clinton talking about identity politics. And she said, we just want a job. You know, that was the thing. And that just shows you how money solves so many problems. You can say it’s not important all you want. That is such an immature view. You know, you hear people say that, well, you know, money isn’t everything. Okay, well, then, what is everything? You know, it’s important, you cannot deny that and yeah, I don’t think anybody listening to the show would deny that, but some of us have these crazy friends. Maybe we met them, you know, for dinner over the holidays. And they say crazy things like that. And you think, how is it that you can be 45 years old, and be a child walking around in an adult’s body? I’ve always said that, you know, it’s surprising to me, how many children are walking around in adult potties? Isn’t that interesting? Something to think about? But where was I going with that? Oh, where was I going with that? I don’t even know where it was going with that. Oh, yeah, here here. I was the one with that. Okay. So Andrew Yang, Democrat running for president, he was on the show before before the election, remember that episode. And he talked about UBI, universal basic income, and the successful libertarian entrepreneur, friends of mine, behind the idea of UBI, universal basic income. And, you know, the needle is moving with me too. And we’ve really had an opportunity to witness what that is like, in the year of the pandemic. Because here, we’ve got a republican saying, let’s give everybody $2,000. And we’ve got the democrats saying, Let’s give them $600. Now, Trump threw it back in their face yesterday. And I think, you know, it looks like everybody might get $2,000. Now Now, so far, yours truly, I haven’t received a penny of this government money the last time around with a PPP program. I didn’t get anything. Okay. Granted, I didn’t apply for anything, either. But I still didn’t get anything. So I doubt I’ll get the $2,000 or the $600. But whatever. Right. It’s interesting to see how this equation has flipped on its head. But here’s why I’m coming around to the idea of UBI in this era of massive technological change, and disruption, and we haven’t even seen, we haven’t even seen the beginning of that yet, folks. It is going to be massive, massive, massive changes coming our way. This decade, we will see changes the likes of which we have never, ever seen in terms of all of this tech that will disrupt so many jobs, and so many people not willing to make an effort to change to learn new skills, but COVID has actually for many people, not all of them, certainly for many has forced them to do that, or inspired them to do that if you will, because in the beginning, they were sitting around at home with nothing to do.

So hopefully, they weren’t watching movies, and they weren’t watching porn, and they were going online and they were learning Some new skills, okay. And the point reference, by the way, pretty funny. Capitalism knows no bounds. Remember when the lockdowns in Italy occurred? I remember, I saw an article that someone posted on Facebook saying, capitalism knows no bounds. Because the big website Pornhub made their premium membership free to Italians. You can’t make this stuff up. So they gave it away. They said, Hey, everybody’s stuck at home, you can have a free membership. Not saying that’s good for society or anything. I just think it’s pretty funny. Whatever. But hopefully people use that time to learn a new skill. Well, not hopefully anymore, because we already know now we have the data, a lot of them did. And if you have some sort of UBI, not in crisis times like this, but just generally, right, you actually encourage more entrepreneurship, and more. Now you know who my favorite economist is? Of course, right? Can you tell me who’s the favorite economist? Come on, you know, Say it, say it. Joseph Schumpeter, because he coined the phrase or at least popularized the phrase creative destruction. So if people know that they won’t starve, if they will be able to eat, and they will be able to pay the rent, then they are a little bit freer to try things to fail, right? They they can fail forward, if they know they’ve got the bases covered. And that UBI thing. I don’t know, I’m coming around to it too, because I, you know, I’m on the side of Trump, who wants to give everybody $2,000 and I am the furthest thing from a Keynesian. Not my favorite economist, okay, john Maynard Keynes reference that you could be, I would say, you know, stop running up these incredible debts and deficits. They’re, they’re irresponsible. But when you got the reserve currency of the world, you can definitely defy gravity for a while. So we’ll see what happens, folks, we’ll see what happens. It is an absolutely interesting time. But we’ve got to think of this year, as a bit of a laboratory litmus test, it has given us a lot of new information about government’s role in the economy, which is not ever going to get smaller, we are moving toward a much more socialist environment, like it or not. And I don’t know if the UBI concept is quite as socialist, as many people think, or as I originally thought. So call me crazy. Go to Jason hartman.com. Slash ask and tell me, I’ve gone off the deep end and say, What have you done with my favorite podcast host, Jason Hartman, where is he? What have you done with him?

Okay, yeah, I welcome your thoughts and your criticisms and your approval, as well. And be sure to write a review, by the way. So anyway, let’s dive into it. And let’s talk about the investment matrix. Here we go. All right. So let’s look at the asset matrix folks. And by the way, speaking of assets, if you want to learn more about estate planning, asset protection, and reducing your tax liability, check out our webinar on that many of you have, it’s by far our most popular webinar, everybody seems to just really love that. It’s Jason hartman.com. Slash protect, you will learn a lot check that out. We have had just rave reviews of that webinar, everybody seems to really, really, really love it. Okay, so I will put that scrolling across the bottom. Okay, so let’s talk about the asset matrix. Now, when we consider this now, this is again, what I what I presented many years ago, we need to consider how are different assets that we may or may not have in our portfolio, act in different economic scenarios. So the three main economic maladies or scenarios are inflation, deflation, and stagflation. Okay, now, there could be stagflation or just stagnation, okay. The difference being in those two slightly different flavors, obviously, is you could have an economy that’s just stagnant, where you don’t have inflation. But you could have stagflation, where you have a stagnant economy, meaning high unemployment. Then, and inflation at the same time and that one is really bad news. You don’t want that one. Okay. That’s what we had during the awful. Jimmy Carter era. Right. Jimmy Carter, probably a good man, but he was not a good president. Okay. I think everybody could agree with that, because Carter just didn’t know how to lead. He was just not good at running the economy. He wasn’t good at being president. Okay. But I think he was an honest guy at least more honest than well, slick Willie, Bill Clinton, that’s for sure. And I don’t know obama won’t even comment. But anyway, here is the matrix, and how your investments perform versus inflation.

So let’s go over them. So which investments are best in an inflationary environment? And remember, inflationary is the most common environment we have to deal with? Okay, that is, that is the most likely scenario, it’s the most common scenario. And why is that? Well, for a few reasons, many reasons, but a few of them are simply that politicians like to spend money, okay, why do they like to spend money, because when they spend, they are essentially buying votes, they dole out the goodies to the electorate, and they get to stay in power, they get favorable reviews, people like them, when they’re giving out the money. And the consequence of their large s comes later, right? That consequence comes in terms of inflation, but it takes a while for it to play out. So it’s a great deal for politicians, because they can give out the goodies today. And then after they’re long gone and out of office, then the negative effects occur, right? So they get to, they get to be the hero on their watch, and leave the problem for somebody else. Okay, so that’s the business plan of governments. That’s the business plan of central banks, that plan is inflationary. What I always say is, we need to align our interest with the two most powerful forces the human race has ever known. Governments and central banks, the most powerful forces outside of God, the human race has ever known. And they have standing armies, they have the power of the law on their side, they have the ability to inflict violence through their police forces, or externally through their militaries. So we’re not going to fix this, we’re not going to change it. We want to align our interest with theirs. The best performing assets in an inflationary environment are gold, a mortgage.

Now, most of you are thinking, Jason, you can’t say that a mortgage is not an asset. A mortgage is a liability, stupid. Yeah, I know, how Haven’t you ever looked at a balance sheet? assets are the things you own. And the liabilities are the debts you have against them. And a mortgage is debt. So how can it be an asset? Hmm? Oh, contraire. mortgage is a great asset as long as it’s a low interest rate mortgage. And it is attached to what I call packaged commodities, in the form of income property. And that mortgage today is a negative interest rate mortgage, it is long term investment grade debt. So it is an asset. I want you to really think about this for a moment. How old Will you be in 30 years? How would we be in 30 years? How much will happen in the next 30 years? Three decades from now? How much different will the world be? What will happen? How much inflation will there be in the next three decades? with the highest debt levels we’ve ever had, with the highest level of unfunded mandates, and unfunded entitlements coming at us that we’ve ever had in the history of the country? How much inflation will there be? What do I mean? I mean, think about it, we’ve got a certain amount of debt today that we owe as a nation. We’ve got a certain amount of debt today that corporations Oh, and a certain amount of debt today that people owe personal debt, household debt. And in addition to all of those types of debts, there’s another thing that is not considered a debt, but it is a debt, in essence, in essence, and that is unfunded obligations, mandates entitlements, welfare programs that the government has promised that it simply can’t afford to pay. Now I’ve interviewed the economist Laurence Kotlikoff on my podcast, Several times. And he has probably done the most research into this topic in terms of how much How high are those unfunded mandates? And of course, you really have to estimate. And you also have to consider over what time period is that over the next 10 years, the next 15 years? You know, these vary a little bit. Some say it’s $60 trillion. That’s with a T 60 trillion. So to give you a reference point of the size of that, the global economy in terms of the entire planet, how much does the entire human race produce in terms of economic value every year? Well, that number is somewhere in the ballpark of $100 trillion. Okay, those are with a T trillion. So this low number of the unfunded mandates and the unfunded entitlements is about $60 trillion.

Okay, so there’s your reference point, what is the GDP of just the United States, not the entire world, but just the United States? It’s somewhere in the neighborhood of $20 trillion. Alright, so there you go. So there’s a couple of reference points. So that’s the low number is $60 trillion in unfunded mandates. But the high number is about $220 trillion $220 trillion, with a tee of unfunded mandates. So remember, that is in addition to the deficit, it is in addition to the current debt, these are things we have to pay for, that are coming at us in the next 10 to 15 years. All right. So just just stick that in your pipe and smoke it, okay, As the old saying goes, and just think about how the inflationary pressures how significant they will be? All right. So the best performing assets in an inflationary environment are in the green gold mortgage and the value of real estate. What do I mean the value of real estate? Well, the value of real estate has always been considered a great hedge against inflation, because it goes up, usually better than the rate of inflation. Okay. So, you know, typically, you’ll see that year in year out over the course of decades, real estate will appreciate it somewhere around 6%, give or take. And usually over the course of decades, they’ll say, of course, depends on the time period, I get it. And with real estate, it depends on the market, you know, linear, cyclical and hybrid, you know, it’s all you can base this up a zillion ways. But that’s just a general round number. And, of course, we saw last year, according to National Association of Realtors, that the price was up 12%, not 6%, it was double the normal rate, right? 12%. So inflation will be somewhere, you know, in the neighborhood of 3%. Probably right? That’s the official number. Of course, that’s a lie. It’s understated, it’s manipulated, usually through the three major ways that the inflation index, the most commonly used being the CPI or the consumer price index. And remember, there are several CPI is the most commonly used one is called CPI u, meaning consumer price index dash u, for urban, urban index, right.

But there are others, just like there are many FICO scoring models. People don’t know this, but you know, they say, what’s your FICO score? Okay, and I’m just giving you a comparison here? Well, it depends on which FICO scoring model you’re talking about. Isn’t it? Interesting, you went to that one of those free credit report sites or you went to your, one of the three credit bureaus and you got your FICO score, and they said, Hey, your FICO score is 720. But then you went to go buy a new car or buy for a loan on a house. And your FICO score was different? Well, it’s because there are different scoring models. There’s 505, and FICO, eight and 503. Okay, so it depends which model and different models are used by different types of lenders. Okay, so there are different consumer price indexes. And then there’s the core rate of inflation, meaning that they take the consumer price index, but they say that two items in the consumer price index, they’re just too volatile. So we’re going to exclude those from the consumer price index. And we’re not going to count them because they they fluctuate too much and they throw the index off. And it’s hard to get a reading when things are moving around too fast. Okay. So what are those two things? So what are the two components that are commonly excluded from the consumer price index to get what they call the core one ate the core rate, or they also call this core inflation. Okay, what are those two things excluded? Right? food and energy or energy and food, you said it differently. Those are the two volatile things that are excluded from core inflation or core rate. So those are too volatile, so we can’t count them. But I asked you, dear viewers and listeners, how many of us how many of you can survive without food and energy? The answer is nobody. Everybody needs food and energy, right? So those costs are excluded from the core inflation rate. All right.

So the best performers gold, the traditional hedge against inflation for the gold bugs, the real estate mortgage. Why is that because of inflation induced debt destruction, which I’ve been teaching you for many years. That’s my trademark term, inflation induced debt destruction or II, D, D, for short, inflation induced destruction because you pay your mortgage back in ever cheaper dollars in an inflationary environment. This is why this is the hidden wealth creator for income property investors. And if you want to know more about it, go to Jason hartman.com. And use the search bar and just type in inflation induced debt destruction. And you can find all of my very detailed, very complete podcast episodes on that topic on the creating wealth podcast, okay. Now, which assets do okay, in an inflationary environment? Remember, we have two other maladies to talk about still, folks, this is just one of the three, this is just the inflation. So your income at your job, okay, your jlb job, it’s an acronym for just over broke, just over broke, because it means they pay you just enough so you won’t quit, you know, not enough to ever become rich, right? That’s why you got to invest, you got to do something of your own initiative. Right. But your your job income is hopefully, although it hasn’t been at least in the last few decades, it’s hopefully indexed to inflation. And hopefully, you are getting cost of living increases at your your day job. Also, your rental income from your properties will increase, hopefully, you’re raising your rents every single year, if you’re a good landlord, you got to always raise your rents. And you’ll you’ll get increases that will keep pace with inflation. So these are neutral things, right. And then hopefully your stocks go up in value if you own stock. But Wall Street is the modern version of organized crime, as I always say. But if you own stocks, hopefully those stocks appreciate at least at the rate of inflation, okay, now, and by the way, the way stock prices perform, that is a scam and ally for another episode. But here’s what I want to just tell you very briefly about it. Wall Street has no shortage of tricks up their sleeve to mislead investors.

And here’s just one of many, one of many, I’m going to tell you now. So you know, when you’re looking at the performance of various investment funds, you know, someone will say, well, we have our, you know, s&p sectors fund, or whatever they call it, they’ve got all these creative names for these stock funds, right? You know, if you invested in our fund over the past 10 years, you would have earned 8% or 10%, or 9%, or whatever it is right? On average year in and year out. But you know what they didn’t tell you. Here’s what they didn’t tell you. Here’s why that is misleading. And it is a fraud. It’s because what these companies do, is they engage in the practice of pulling the wool over your eyes or putting their hands over your ears, because you can’t hear the dogs that don’t bark, as I always say, which dogs aren’t barking in those statistics of the performance of these funds. Right. Here are the dogs that aren’t barking. What they do is they take the poorly performing funds, and they close them. Yep, that’s what they do. So they close their poorly performing funds. And then when they tell you those averages, they’re only talking about the averages of the funds they didn’t close, which have better performance. What is mo Ramon scam? That’s a wall street scam here. Actually, this is a better sound effect for that. This is what happens to your money when you invest with those crooks. The dog like That that was a bomb dropping. See I got all my sound effects right here. So anyway, that’s the medium performance categories, but the worst performers are cash because cash depreciates in an inflationary environment.

Okay. bonds, bonds are the other side of a loan. Right? So up here, we’re saying that your mortgage is a really good asset in an inflationary environment, because you pay the loan back the mortgage back in cheaper dollars. And the bond. In fact, there are mortgage bonds that you could invest in, right? The bond is being the lender, essentially, right? A bond is just the flip side of a loan. So as a bond, you get paid back in cheaper dollars. And that bond, if it has a fixed interest rate, which it probably does, right, then it is depreciating, in in an inflationary environment, also your pension income if you have like a fixed income in your pension that you’ve been promised, right, and like a defined benefit program, which by the way, those are long gone, because they they put the auto companies and the airlines and do a lot of trouble, right, those defined benefit programs. And so that pension income performs very poorly against inflation. Also, taxes perform very poorly against inflation. Well, what do I mean by that? taxes? So, the IRS, there are many examples I’ve shared on my podcast about this over the years, how the IRS does not know how to calculate inflation, and that hurts most taxpayers, okay. But some people really benefit from that. Because they outsmart the IRS, they realize, okay, the IRS doesn’t know how to handle inflation in my investments, and you can use that to your benefit. Okay, but most people get hurt by the way the IRS calculates inflation. Let’s talk about economic malady. Number two D inflation deflation. Now, deflation means prices are dropping. And most people would say, Well, isn’t that good news? I like it when prices go down. I like that deflationary environment as a consumer. Now this is actually the scariest economic malady for the powers that be. They do not like deflation. The government doesn’t like deflation. Why don’t they like deflation? Well, the government owes a lot of money to people. And deflation is the opposite of my trademark idea of inflation induced debt destruction. So in a deflationary environment, debt actually gets more expensive to repay. It does. So which assets perform well in a deflationary environment? Cash performs well, why is that? Because the cash in your savings account or in your wallet goes up in value. It buys more. As prices go down, your cash becomes more valuable than it used to be. Now this is a very rare malady. deflation is not common. Inflation is much more common than deflation. But bonds remember bonds are the flip side of a mortgage. So those bonds actually perform really well in a deflationary environment, because you’re getting paid back in more valuable dollars rather than cheaper dollars.

So, being a bondholder in a deflationary environment is good news. Also, remember that pension income that was devastated by deflation or by inflation, it actually improves and your standard of living goes up, if you have a fixed amount of pension income, because it buys more, it’s more valuable to you, and taxes. And it depends on the type of tax so this one’s kind of complicated. And again, I’ve just got to refer you to those episodes where we talk about how the IRS doesn’t really calculate for inflation or deflation properly. Sometimes it benefits you mostly it doesn’t okay, because most people aren’t doing their investments right. And remember, taxes are not insignificant folks. Taxes are hugely significant because they are the single largest expense any of us have in our life taxes right. So okay. So which assets are kind of in between medium in this deflationary environment, the income at your job medium, rental income, medium stocks, medium performance, now which assets performed poorly, well gold, your mortgage but but but but Wait, there’s more with a mortgage. It’s just not quite that simple. Why is that? Hmm? Let me see here. Do I have a good sound effect for this one? Let’s see what this one is. Oh, that’s bad. I don’t like that one that’s like broken glass. Bad. We won’t use that again, folks. So your mortgage is kind of interesting. Because even though the debt on the mortgage in a deflationary environment gets more expensive to repay, because remember, you’re paying the debt back in more burdensome fashion. But then you go to your lender, and you say, Hey, this is a burden to me, I can’t do it. I can’t do it lender, so help me out. And the lender says, Okay, well, I’m gonna give you a loan modification. And they almost always do, especially if you cut off the oxygen, and you withhold a payment or two, they’ll usually run to give you a loan modification. In fact, as the great recession was just beginning, I remember I modified a whole bunch of my loans, I did strategic defaults on other ones. And you know, millions of other people did this about 12 million people as a matter of fact. So it was a common occurrence back then. I remember one of my lenders, a bank that I had done a lot of business with, I did a lot of business with him, I still do a lot of business with him as a matter of fact, and I’ve got a whole bunch of money deposited with their nice institution, they sent a letter to everybody, all of their mortgage borrowers. And it was on blue paper. So it was different. And I got this blue letter, I’ll call it. And the letter said, and I was not in default on any of my mortgages to them, they have a lot of my mortgages, I was paying them all I was paying them on time, just as agreed. And they sent me this blue letter, and they sent it to all their other borrowers, I guess I I asked them, and they said, they sent it to all the others, all the borrowers, and it said, Hey, we know times are tough right now. And if you need a loan modification, if you need help paying your mortgage, just call us. And they had an 800 number there. And so I called him up. And I said, Hey, sure, you can help me if you want. And they just voluntarily reduce the interest rate on all my mortgages. And they reduce the payments.

And they they said, the like, like the loans, I think they reduce them by the interest rates by like 50% for two or three years, five, zero, they cut the interest rate in half, I believe I can’t remember exactly. But I talked about it on my podcast at the time, and all the episodes are up there. So you can go back and find the old episodes that I did during the Great Recession, you know, 2008 2007 2008 2009 and listen to them, and you can hear the whole story back then. So that mortgage really could actually move up from the low performance category to the medium or even the high performance category. During a deflationary environment. Now, real estate value would go down in a deflationary environment, so that would perform poorly. But when you have the balance of that multi dimensional asset class of income property, right, have your rents doing okay? your mortgage, possibly performing really well, if you get a loan modification, your value might not be a big deal, because you offset all these things with each other. And that’s why I love income property because it’s a multi dimensional asset class. Okay? How about taxes, okay, now, taxes are nothing to sneeze at. Because taxes are the single largest expense any of us have in our life. So this is a big deal. It’s a big deal. So what performs the best visa fee taxes, your mortgage on your income properties, and the value of real estate perform really well. Visa fee taxes, what performs in a medium fashion, cash, and rental income, our medium right in the middle. These are the taxes, and what has the worst performance in terms of taxation. The income from your job is the highest taxed income. That’s when we look at most of our clients earn good money.

We have a lot of tech clients, a lot of clients who are making great money from their day job, but they come to us because they realize that they have got to do something to reduce their tax liability. And so we help them build a nationwide portfolio of income properties. And we help them invest in all these great linear and hybrid markets around the US and reduce their tax liability because that job income is the highest taxed thing there is it’s it’s terrible. It’s really a terrible deal. Alright, bonds performed very poorly vcv, taxes, pension income, also very bad. Gold is a collectible. So when you sell it, you pay tax at a collectable tax rate, which sucks. It’s terrible. Okay, by the way, I have to make the standard disclaimer, I am not a tax or legal advisor. The law and taxes are these are very complicated areas. Of course, there, you know, there are 1000s of pages, or maybe millions of pages of legal code, and then 1000s and 1000s of pages 10s of 1000s of pages of tax code. So, seek advice from the appropriate professional, okay, I’m just giving you a concept here, you got to go check with the professionals on this stuff. I am not a tax or legal professional. I’m a hack. Okay, so, stocks very poor in terms of taxes. Remember, every time you sell your stock, or get dividend from a stock, you pay taxes. Now within the property, you can reinvest under the 1031 tax deferred exchange of Joe Biden doesn’t take it away. So these are bad in terms of taxation, right. So that folks is the the asset matrix. In short, I have much longer information, more detailed information, more in depth information about this on the podcast. So go to Jason hartman.com. And you can search using our search engine there, all of the podcast episodes on this topic, and just type in asset matrix. You’ll find them you can get all the details.

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