{"id":14237,"date":"2021-04-24T14:40:45","date_gmt":"2021-04-24T18:40:45","guid":{"rendered":"http:\/\/privacyfight.io\/?p=14237"},"modified":"2023-06-23T16:57:42","modified_gmt":"2023-06-23T20:57:42","slug":"u20-asset-allocation-part-ii","status":"publish","type":"post","link":"https:\/\/privacyfight.io\/u20-asset-allocation-part-ii\/","title":{"rendered":"U20 &#8211; Asset Allocation Part II"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"14237\" class=\"elementor elementor-14237\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7ce18cf elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7ce18cf\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2bc7082\" data-id=\"2bc7082\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-797a585 elementor-widget elementor-widget-text-editor\" data-id=\"797a585\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"vidseo_wrapper\" style=\"width: 100%;\">\r\n\r\n    \r\n    \r\n        <div class=\"vidseo_vimeo\">\r\n\r\n            <iframe title=\"vimeo-player\" src=\"https:\/\/player.vimeo.com\/video\/717934963\/?\" width=\"100%\" frameborder=\"0\" allowfullscreen><\/iframe>\r\n\r\n        <\/div>\r\n\r\n    \r\n    \r\n    <div class=\"vidseo_collapse\" style=\"\">\r\n        <div class=\"vidseo_btn\" style=\"\">\r\n            U20 \u2013 Asset Allocation Part II\r\n0:02\r\nWell, hi, it\u2019s John Jay here. And I want to share some strategies with you.\r\n0:05\r\nThe punchline, and the reason why I\u2019m doing this, the end result is I want to explain what I really mean about. Or I\u2019m gonna give you some ideas and strategies, too.\r\n0:16&#8230;        <\/div>\r\n        <div class=\"vidseo_collapse_content\" style=\"\">\r\n            <p>U20 \u2013 Asset Allocation Part II<br \/>\n0:02<br \/>\nWell, hi, it\u2019s John Jay here. And I want to share some strategies with you.<br \/>\n0:05<br \/>\nThe punchline, and the reason why I\u2019m doing this, the end result is I want to explain what I really mean about. Or I\u2019m gonna give you some ideas and strategies, too.<br \/>\n0:16<br \/>\nHave a method, other than paying off debt fast, just because you have a windfall. I know you hear me say this all the time and I rattle off some ideas, but I wanted to share with you actual strategies, and I\u2019m leaving is basically a long answer.<br \/>\n0:33<br \/>\nAnd I\u2019m gonna introduce some tools and services to you.<br \/>\n0:38<br \/>\nJust so you can have an idea of things that are available to help you manage cash flow or temporarily managed property.<br \/>\n0:49<br \/>\nyou\u2019ll see it\u2019s it\u2019s a way to do it so that you\u2019re not only in cryptographic currency.<br \/>\n0:54<br \/>\nUm.<br \/>\n0:57<br \/>\nSo, the couple of rules here is this.<br \/>\n0:58<br \/>\nWhile I\u2019m doing the video, I don\u2019t want you to pay debts too early. It\u2019s not good use of capital. You can ask any good banker that\u2019s willing to tell you the truth. Ask an account.<br \/>\n1:08<br \/>\nyour net present value goes way down.<br \/>\n1:09<br \/>\nYour internal rate of return goes way down when you pay debts early and if years goes way down, the lenders goes way up. Why would you give the lender free money? OK, just look into that, net present value. I have a video on this, too, on cap rates and gross rents and how to make calculations and how to compare assets and look at cash flow values.<br \/>\n1:30<br \/>\nAlright, so don\u2019t pay debts early, it\u2019s one thing to say it, but I\u2019m going to give you some strategies here as to how to accomplish that.<br \/>\n1:39<br \/>\nPart of that, OK, like, paying cash for assets or even paying cash for liabilities, or paying upfront, too, settle, pain advanced, or, in one lump sum, pay off consumer debt.<br \/>\n1:55<br \/>\nDo not be your own lender. This is a bad use of capital.<br \/>\n1:59<br \/>\nYou want some loan risk because you\u2019re offsetting the risk that you understand and having someone else take on that risk who understands that part of the risk.<br \/>\n2:11<br \/>\nSo, it\u2019s like, you know, Russell Simmons says, Stay in your lane, OK, that\u2019s what we\u2019re talking about.<br \/>\n2:17<br \/>\nOK, so, I know this may sound unrelated, but I want to introduce introduce you to a service if you haven\u2019t heard this before. It\u2019s a It\u2019s a vault or transportation service, it transports valuables, like tokens, and valuables tokens, the chips, jewelry. Precious, metals, coins, rare, coins, things, of value, this service called malka emit.<br \/>\n2:42<br \/>\nAn MA, LLC, a dash MIT malka emit transports, valuables, it\u2019s kind of like Loomis or Wells Fargo, or Brinks.<br \/>\n2:52<br \/>\nSo check them out.<br \/>\n2:54<br \/>\nI believe it\u2019s an Indian based company in India, and then there\u2019s another one, now you may have some friction if you\u2019re a US citizen, so just be aware of that.<br \/>\n3:04<br \/>\nAnother one is via mat V I a, M a T, so check out that service. Again, they, they have a vastly different service for US citizens, if they have one at all.<br \/>\n3:14<br \/>\nBut they have, you know, you\u2019ll see, when you\u2019re, when you\u2019re needing to move things, look at, via Matt and Malka I met.<br \/>\n3:22<br \/>\nNow, I did mention the, this other service in a previous video video, it\u2019s called, OCR and I used to, at one point, know what the CRA meant but I\u2019ll just tell you it\u2019s a network of hundreds of professionals around the world and they have attorneys and accountants.<br \/>\n3:37<br \/>\nIn fact, if you wanted to buy a yacht and figure out who your broker should be, where you build it or where you buy it and where you should flag it and how to insure it.<br \/>\n3:47<br \/>\nWhen you buy a yacht, it comes with a budget.<br \/>\n3:50<br \/>\nIt\u2019s actually like buying a business.<br \/>\n3:52<br \/>\nAlthough a yacht is a losing business, it\u2019s always going to lose money for the most part most. Most yachts are not going to make money if you\u2019re trying to, you know, even if you\u2019re trying to run it as a business.<br \/>\n4:02<br \/>\nSo what CRA can do for you as one example is they can get you the budget and the broker and the proper flag and insurance and all that for purchasing a yacht.<br \/>\n4:16<br \/>\nI\u2019m not saying you should go off and do that, I\u2019m just saying it\u2019s one of the the services you would use. If you\u2019re doing that, you wouldn\u2019t you wouldn\u2019t want to go try and buy a yacht. I mean a really nice yacht you wouldn\u2019t want to do that like you\u2019re shopping for a car like you\u2019ve used to do like you\u2019re used to doing.<br \/>\n4:32<br \/>\nSo OCR A, and I believe it\u2019s website is oh CRA dot com, I\u2019m just going to read to you a little bit from its website. It\u2019s basically, it says, it\u2019s a global corporate, a trust service provider, OK, It\u2019s been around for, you know, 35, 40 years.<br \/>\n4:49<br \/>\nThey have, they set up company structures. They provide services like, really, if you want to buy an airplane or a yacht or you know, do something big, these guys can help you get set up properly.<br \/>\n5:02<br \/>\nThey\u2019re the real deal.<br \/>\n5:04<br \/>\nI also want to introduce you some language.<br \/>\n5:07<br \/>\nNow, in case you don\u2019t know this already, um, if you need to put money somewhere besides cryptographic currency and something that\u2019s traditional, you can look at what\u2019s called a goal or good delivery, gold bars, good delivery gold bars, and also Kyla Bars, now, there\u2019s a lot.<br \/>\n5:23<br \/>\nThere are many gold bars, I would say, good delivery bars, gold bars, that are converted to Kyla Bars, OK, a killer bar is \u00a32.2 Go delivery is let\u2019s see here go delivery ranges from 350 troy ounces to 430 troy ounces OK?<br \/>\n5:41<br \/>\nI don\u2019t know why there are difference there.<br \/>\n5:44<br \/>\nThere\u2019s different dimensions.<br \/>\n5:45<br \/>\nThey have different physical, physical properties, but they do fall within a certain criteria, and they\u2019re good delivery bars, So it\u2019s a nice way to store a lot of money in one small place.<br \/>\n5:55<br \/>\nIf you\u2019re into that, if you need to do that, um, just look into it.<br \/>\n6:00<br \/>\nGood Delivery, Gold bars, and kill bars. Many of the Vault services you\u2019ve probably dealt with have access to these.<br \/>\n6:06<br \/>\nBoy instar of course.<br \/>\n6:07<br \/>\nNow, you know, Bullying Star has a bit of a premium. So you can shop around.<br \/>\n6:12<br \/>\nBut that is a convenient tool. I\u2019ve used this before, to move money between countries. So I like to use the Vault storage systems, and now it\u2019s even easier with Bitcoin. So there\u2019s that, I\u2019m not gonna bore you with all the details, but you can look it up yourself. Now, here\u2019s an interesting thing.<br \/>\n6:28<br \/>\nMany people don\u2019t talk about this, but, um, loose diamonds are a way to store money. In fact, loose diamonds are money around the world and most most places, especially in Africa. Now, there\u2019s a, I know there\u2019s a bad rap on blood diamonds, so you gotta be careful about what you\u2019re buying.<br \/>\n6:43<br \/>\nBut there is a diamond profile, and I\u2019m going to, you know, what, yeah, I\u2019m gonna put it with this video, But I\u2019m gonna explain it briefly right here.<br \/>\n6:52<br \/>\nThere are some criteria under which you want to buy some diamonds, if you, if you\u2019re looking at diamonds, so I can take, I could take a million or even $10 million worth of diamonds and literally put it in the bottom third of my coffee cup while I\u2019m drinking the coffee.<br \/>\n7:07<br \/>\nAnd it\u2019s perfectly preserved concealed. It\u2019s a small space. It\u2019s not detectable, OK.<br \/>\n7:13<br \/>\nIt\u2019s Diamond\u2019s its carbon.<br \/>\n7:15<br \/>\nAll right, so I have two profiles.<br \/>\n7:19<br \/>\nNow, there are, these are called on EGS, or G I A. Certified, you can look up what that means.<br \/>\n7:26<br \/>\nI have what I call an 8% profile.<br \/>\n7:29<br \/>\nSo an 8%, um, is like a return on my money, OK, 8%, but buying these diamonds and then selling them later. I\u2019m gonna expect an 8% return and the same thing. I\u2019ve got a 16% profile, so I just pick those two categories. I made them up myself. And here are the criteria. Now, I base the, this, these two profiles off of statistics or data, from the years 2003 to 20 13.<br \/>\n7:56<br \/>\nAnd diamond trades around the world. I did a lot of research on this. And the, there\u2019s, let\u2019s say five, yeah, five characteristics.<br \/>\n8:04<br \/>\nIt has to do with the color of the diamond, the clarity, the carrot, the cut, and there\u2019s, let\u2019s see here.<br \/>\n8:13<br \/>\nYeah, that\u2019s for then the other characteristic is that its shape, so what I\u2019m talking about is what\u2019s called a round brilliant diamond.<br \/>\n8:24<br \/>\nSo this first profile is based on a carrot, which is await of 1 to 2.99.<br \/>\n8:32<br \/>\nI just picked that one. There\u2019s a particular reason.<br \/>\n8:36<br \/>\nAnd the cut, I\u2019ve chosen is a very good cut, ideal or signature ideal.<br \/>\n8:42<br \/>\nAnd the clarity is VS, one, V V S two, VBS one and I, F, the colors, D and E, OK?<br \/>\n8:52<br \/>\nSo, you can find these diamonds.<br \/>\n8:58<br \/>\nThrough not a retailer, I mean, obviously you can find loose time, is there a retailer?<br \/>\n9:02<br \/>\nBut you want to go to the cutter.<br \/>\n9:05<br \/>\nAnd there\u2019s usually a supply chain of several cutters.<br \/>\n9:09<br \/>\nWhy me?<br \/>\n9:10<br \/>\nYeah, maybe it\u2019s a couple of Cutters before it gets to the retailer, so you want to kinda work up the chain, and there\u2019s a way to buy into that supply chain earlier in the chain. So that you can buy it at a good price.<br \/>\n9:23<br \/>\nI\u2019m not saying it, to be cheap, but if you\u2019re going to buy, you\u2019re gonna put, like, 10 or 20 or $50 million, I don\u2019t know if you want to do that.<br \/>\n9:30<br \/>\nBut if you want to put a lot of money and diamonds, and it has high liquidity, and a very easy way to store it securely, you want to go and buy it at a decent price.<br \/>\n9:38<br \/>\nAnd, the way to do it is, you come in with them with some cash, a small amount and you establish your relationship first with the broker or the cutters.<br \/>\n9:48<br \/>\nAnd then, you do it like this, You come in with, like, a million dollars, and you work out some deals, and then when you see that\u2019s working, then maybe you can put more money on a regular basis, OK?<br \/>\n9:58<br \/>\nThe offer you would probably start with is, here, I have some cash, I would like to joint venture with you and buying some more Diamond\u2019s. Maybe you\u2019ll get a better price.<br \/>\n10:08<br \/>\nif you can buy more.<br \/>\n10:09<br \/>\nAnd I\u2019m gonna ride the coattails so to speak with my cash, and I want to, I want my cut, and, and work out that way. Now that I\u2019m sure there\u2019s other ways to do it.<br \/>\n10:18<br \/>\nI\u2019m just saying, the other profile is the 16%, and I\u2019m just gonna list real quick, those are three carrot to 5.99 carrot. And the cuts are very good, ideal and signature ideal.<br \/>\n10:32<br \/>\nUm, The Clarity is little bit more Clarity, it is V S one V S S two, I\u2019m sorry, v.d.s.<br \/>\n10:37<br \/>\ntoo, and DBS one.<br \/>\n10:40<br \/>\nAnd then the colors are E and F Round, brilliant, round, brilliant, that is a very easy diamond defined, It\u2019s very popular.<br \/>\n10:49<br \/>\nI\u2019m going to give you a link to a website where you can go in there for free, you can login, you can create an e-mail account with your e-mail address. You can login and create a profile based on what I have here.<br \/>\n11:01<br \/>\nNow I\u2019m going to put this in the comment section, this profile, um, and you can actually see everything that\u2019s for sale and you can narrow it down to the types of diamonds you want.<br \/>\n11:12<br \/>\nAnd then just say, I want, which ones I want, click a bubble and then put it in your shopping cart and you can order it. And they have wiring instructions and all that stuff.<br \/>\n11:21<br \/>\nNow, I don\u2019t, don\u2019t, I know you\u2019re gonna ask me right away. Can they do they, will they do it for Bitcoin? I don\u2019t think they do that yet, but I\u2019m sure that can be negotiated.<br \/>\n11:30<br \/>\nUm, another thing you want to look into is just to understand right now you can buy bitcoin, that\u2019s what\u2019s called newly minted right from the miners.<br \/>\n11:40<br \/>\nBut, I\u2019m sure that\u2019s difficult because PayPal, I don\u2019t know if it\u2019s changed right now, but PayPal has been buying two thirds of all the newly Minted Bitcoins and then another company by the name of Gray Scale.<br \/>\n11:53<br \/>\nNow, it operates under the trust. It\u2019s called gray scales, Bitcoin Investment Trust, OK, G and TC.<br \/>\n11:58<br \/>\nThat\u2019s been buying up the other third of the world\u2019s supply of Bitcoin, so, it\u2019s worth knowing or worth noting that there\u2019s a difference between a newly minted Bitcoin and something you can just buy from anywhere.<br \/>\n12:11<br \/>\nI believe it has more value kinda like a newly minted silver gold coin.<br \/>\n12:17<br \/>\nSo check that out.<br \/>\n12:19<br \/>\nNow this is what I call the punchline, the last part, where I really want to explain something. I\u2019ve explained many times before where if you have a windfall, it\u2019s so tempting to buy the next asset with cash or pay off debt. Especially debt on liabilities with cash, you shouldn\u2019t really.<br \/>\n12:38<br \/>\nI mean, I could see paying some debt, but not all of my consumer debt just up, some of it, so that I\u2019m I\u2019m at least comfortable with you, but you really want to have some debt and our assets, you probably want to have more debt on assets than you do on personal, OK, Because the asset\u2019s paying for the debt, it\u2019s a good use of capital.<br \/>\n12:56<br \/>\nSo if I could, if I could just give you a ratio, I would just say, no more than 50% on personal debt. Liabilities like your house, OK, that\u2019s the liability carr\u2019s, things like that.<br \/>\n13:09<br \/>\nI wouldn\u2019t go more than half.<br \/>\n13:11<br \/>\nI\u2019m comfortable with a quarter of 25% debt on on property, like my house.<br \/>\n13:15<br \/>\nUm, but I would not exceed 80% on an asset.<br \/>\n13:22<br \/>\nNow, that should change, based upon what you\u2019re doing, and your knowledge, and all that. That\u2019s just my take on it from what I\u2019ve seen over the years.<br \/>\n13:27<br \/>\nSo, what I always recommend is, yeah, you can pay cash for an asset, but you\u2019re also in the business of lending, because you\u2019re a lender by default. You\u2019re your own lender. I went, I want to suggest you avoid that. How do you do that?<br \/>\n13:40<br \/>\nWell, you go out and get a loan. If you paid cash for the asset, go out and get a loan, or get some financing when you\u2019re buying the asset at the same time.<br \/>\n13:49<br \/>\nYou can do that. And once you start getting it going, it\u2019ll be easy for you to do that once you know who to go to. So I\u2019m gonna use some language here.<br \/>\n13:55<br \/>\nSo what we\u2019re talking about is, I never really use this language, but it\u2019s called matching funds. So matching funds.<br \/>\n14:03<br \/>\nKnow, I use that in a different context. I use that for joint venturing. And I\u2019m not going to get into how I use the term Matching Funds for joint venturing.<br \/>\n14:09<br \/>\nLet\u2019s just say, in this context, matching funds is a better way to go.<br \/>\n14:16<br \/>\nThen, how to avoid a lump sum payment of a debt.<br \/>\n14:20<br \/>\nBecause if you don\u2019t know anything else, you would think, OK, I\u2019m just going to pass my debt in one lump sum. It does all kinds of havoc for you. It\u2019s going to maybe give you a new tax liability.<br \/>\n14:30<br \/>\nIt\u2019s going to exposure to other liabilities, you\u2019re going to type your cash in a liability, that\u2019s a no-no because now you have a negative net present value, negative, internal rate of return on your net worth. Why would you go against trying to build up your net worth by paying off consumer debt? And now you\u2019re basically subtracting against your net worth you\u2019re trying to build up, right?<br \/>\n14:47<br \/>\nYou want to continue going forward and acquire assets, and this is where we get into matching funds.<br \/>\n14:53<br \/>\nSo, I know I\u2019m gonna read some notes here, so the purpose here is to offset liabilities.<br \/>\n15:01<br \/>\nThat means if I have an expense over here, I want to have an income over here that at least equals it.<br \/>\n15:08<br \/>\nSo if I have an expense is one thousand bucks a month, I want to have something that\u2019s paying me or netting me a thousand bucks a month. So, I\u2019m not paying for it. My asset is now paying for it, right? So an example is let\u2019s see here.<br \/>\n15:19<br \/>\nI have a, um, a mortgage is one thousand bucks a month.<br \/>\n15:23<br \/>\nLet\u2019s say my my home mortgage, right, thousand bucks a month, it\u2019s a small house. And I then go out and get a two duplexes. That means I have four units to rent out and I\u2019m netting one thousand dollars a month.<br \/>\n15:35<br \/>\nAnd that is on the same balance sheet. So I own the duplexes. I have the mortgage.<br \/>\n15:41<br \/>\nI\u2019m settling out. at the end of the month. I have this debt, but I have this income and now I\u2019m not paying for it. And basically I\u2019m debt free because my Balance sheet is balances to zero and everything works out perfectly, right. If I have a 0%, what do you call it?<br \/>\n15:54<br \/>\nThey can see rate, which is not likely.<br \/>\n15:56<br \/>\nSo that is the idea of matching funds.<br \/>\n16:00<br \/>\nSo that example would the example of buying that duplexes or other asset would be used to offset the liability.<br \/>\n16:10<br \/>\nThe term for that that is used in regular investing, would be fixed income instruments.<br \/>\n16:18<br \/>\nSo instead of buying an actual investment property, I would buy paper somewhere like I would buy mortgages or CDs or something.<br \/>\n16:26<br \/>\nSo I\u2019m gonna give you a list right now of what would be used to do the offset on a balance sheet so that you\u2019re not tempted to pay the debt in advance.<br \/>\n16:36<br \/>\nJust because you have the ability to do that, you want to instead take the cash.<br \/>\n16:41<br \/>\nInstead of you\u2019re paying the debt, you want to go purchase a fixed income instrument or an asset, and use that to set off against the debt liabilities. So here\u2019s, here\u2019s examples of what they are. Now, these are traditional.<br \/>\n16:54<br \/>\nI would not do any of these because of what\u2019s happening right now. We\u2019re changing of our entire economic system, the entire currency system, OK?<br \/>\n17:02<br \/>\nSo, just keep in mind, these are the types of investments, they\u2019re paper assets and maybe they\u2019ll be around in two years, I don\u2019t know.<br \/>\n17:10<br \/>\nUm, they would include fixed deposits, like certificates of deposit, CDs, C, C, D is not really an investment. It\u2019s, it\u2019s not, in my opinion, it never has been an investment. But it\u2019d be a great way to set off a liability I have somewhere else.<br \/>\n17:27<br \/>\nSo it\u2019s a cheap, easy way. I can, I don\u2019t have to get my hands dirty. I can just go somewhere, fill out a form, put some money on the table, and I\u2019ve got a set off.<br \/>\n17:35<br \/>\nOK, bonds, there are public bonds, municipal bonds, and corporate bonds, OK, private companies those are good ways.<br \/>\n17:44<br \/>\nThey\u2019re, they\u2019re low risk, OK, so you\u2019re, you\u2019re getting into a low risk paper asset is what a fixed income instrument is doing.<br \/>\n17:53<br \/>\nAnd it\u2019s going to allow you to match funds or set off a liability that\u2019s on the same balance sheet.<br \/>\n17:59<br \/>\nThere\u2019s some other things too. I know these are kind of new to me and I don\u2019t use things like this. I do other things I\u2019m more creative But I\u2019m just telling you guys.<br \/>\n18:06<br \/>\nHere\u2019s the traditional way of doing it.<br \/>\n18:08<br \/>\nPost office monthly income schemes.<br \/>\n18:10<br \/>\nThat\u2019s actually a thing mutual funds, public provident funds. Some of these are brand names.<br \/>\n18:17<br \/>\nGuilt funs, National Saving Certificate.<br \/>\n18:21<br \/>\nSome of them are not always in all the countries, tax free bonds.<br \/>\n18:25<br \/>\nSometimes, it doesn\u2019t matter if they\u2019re tax free.<br \/>\n18:27<br \/>\nI mean, no sovereign, gold bonds, OK, these are creating cash flow that, that allows you to do a setup.<br \/>\n18:35<br \/>\nWith your cash. Instead of using a cached pappa liability, you\u2019re using our cash to take a low and low risk paper asset, and pay off the liability over the life of the debt.<br \/>\n18:47<br \/>\nHere\u2019s what I have recommended to people over the years, and we can go into more detail.<br \/>\n18:50<br \/>\nBut, these are just a few examples. OK. Tax lien certificates, Tax Lien, and Tax deid Certificates.<br \/>\n18:59<br \/>\nThese are guaranteed by law in the United States now, Yeah.<br \/>\n19:02<br \/>\nIn your country, if you\u2019re not in the United States, you\u2019ll probably know what I\u2019m talking about, Or you can do some research There.<br \/>\n19:07<br \/>\nThese are where there\u2019s a property tax liability that\u2019s not paid, and the homeowner still owes it. And the tax collector sells the obligation in one way or another.<br \/>\n19:19<br \/>\nHe sells it as a tax lien, or a certificate or a tax deed, OK. Sells it to a private party, or an investor, which could be you, and you buy this, and then the interest rate is guaranteed by law. Now there is a discount rate when you buy it, and there\u2019s a couple ways to buy it. You can go to the auction or hire people to go to the auction and buy it on a regular basis. If you want to do smaller amounts, or if you find brokers, you can purchase entire portfolios of tax lien certificates or tax deeds.<br \/>\n19:48<br \/>\nThat means, instead of putting $50, and then $500 and $5000, and $25.22, and just have a person just do that all day long. And go to all these auctions or wherever go online, do them now.<br \/>\n19:58<br \/>\nUm, it might be more effective, depending on how much money you\u2019re dealing with, to go to a broker, or someone who\u2019s selling an entire portfolio of, let\u2019s say, $13 million worth of tax lien certificates in four different states.<br \/>\n20:12<br \/>\nThat would make really good sense, because you can look at the balance sheet and see exactly how much money is making, and it\u2019s very reliable money, very reliable.<br \/>\n20:21<br \/>\nUm, that is really a great way to a low risk way to offset liability on your balance sheet.<br \/>\n20:29<br \/>\nAnd the other one would be real estate notes, which are very similar to tax lien certificates. Because real estate notes are usually collateralized against the titles to real estate can be commercial, industrial agricultural, residential multi-family, you know, lots of whatever you want to do. And of course you can go through a broker, as well. You can find a note broker.<br \/>\n20:50<br \/>\nUsually note brokers have access to all kinds of data and they can even find notes for you.<br \/>\n20:55<br \/>\nAnd you can buy portfolio\u2019s. So that\u2019s another one.<br \/>\n20:57<br \/>\nNow another, the third one I want to explain is factoring. So factoring is involving usually net 30 or short-term loans, net 30.<br \/>\n21:06<br \/>\nThat means someone bought a product for a business, and it\u2019s going to pay for 30 days from now. And the seller needs the money now. And the business is going to pay later. So you buy it from the seller, you buy the obligation from the seller, and you\u2019re basically lending the seller, a short-term loan, and then we expect that they, the buyer, is going to pay the seller and then the seller will then be able to pay off the loan that you extended. So it\u2019s called Factoring.<br \/>\n21:32<br \/>\nAnd you would despite a discount. So, for example, let\u2019s say, there\u2019s a factoring, a contract that\u2019s worth $100 on his face.<br \/>\n21:39<br \/>\nAnd you\u2019d come in there and buy it for 70.<br \/>\n21:42<br \/>\nAnd it makes total sense for everybody, because of the discount rate. It works, You guys can look at the numbers on that one, but that\u2019s another way to do it, and you don\u2019t have to actually get the paper. You can actually invest with a company that\u2019s doing that, that already understands the risk and already understands how to manage the risk. And if they had more capital, they could, they could do more things.<br \/>\n22:01<br \/>\nSo you don\u2019t have to re-invent the wheel on any of these things. You\u2019re gonna work with people. I really encourage you to do that.<br \/>\n22:06<br \/>\nAnd just these three things alone, the tax liens, real estate notes and factoring, those are three basic, easy to understand things you can do to put your cash so that you\u2019re not tempted two, pay off any type of debt in advance.<br \/>\n22:24<br \/>\nAll right, so basically fixed income security provides investors with a stream of fixed periodic interest payments. That\u2019s what you want.<br \/>\n22:31<br \/>\nYou want regular cash flow with low risk and lots of times, I mean, I think most of us have relied upon people that claim to be investment brokers or stockbroker\u2019s to do those things for us, and actually, we don\u2019t need that.<br \/>\n22:46<br \/>\nI would like to work with someone as a colleague, Not as, you know, someone else is using my money, and I have to trust them, so.<br \/>\n22:53<br \/>\nAnyways, just wanted to share that with you. I hope these are useful tools.<br \/>\n22:57<br \/>\nI am going to build this out further with more detail, But this may answer a lot of your questions that you\u2019ve been asking me over the, over the last several years.<br \/>\n23:07<br \/>\nAll right, Thanks for listening.<\/p>\n        <\/div>\r\n    <\/div>\r\n\r\n    \r\n<\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e98abf5 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e98abf5\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-f7316a7\" data-id=\"f7316a7\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-469526b elementor-widget elementor-widget-spacer\" data-id=\"469526b\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-62518f8 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"62518f8\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5bfe7b4\" data-id=\"5bfe7b4\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a9f0b58 elementor-widget elementor-widget-text-editor\" data-id=\"a9f0b58\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Summary<\/strong><\/p><p style=\"padding-left: 40px;\">1. John Jay explains strategies for asset allocation, specifically discussing how to manage windfalls and avoid paying off debts too early, as it&#8217;s not an efficient use of capital. He also emphasizes the importance of utilizing external financial tools and services.<br \/>2. He introduces tools and services that can help manage cash flow and temporarily manage property, suggesting the use of alternative investments like cryptocurrency but warning against solely relying on them.<br \/>3. He discusses services like Malka Emit and Via Mat that help in transporting valuable assets like precious metals and coins, highlighting their importance in asset allocation strategies.<br \/>4. Jay also discusses the services of OCR, a network of professionals that can help with complex purchases like buying a yacht, underlining the importance of specialist advice in asset management.<br \/>5. He introduces concepts like good delivery gold bars and Kyla Bars as alternative asset storage methods, adding that these can also be used to move money between countries.<br \/>6. Jay introduces diamonds as a high-value, high-liquidity asset that can be stored securely and transported easily. He explains two profiles of diamonds suitable for investment based on their carat weight, cut, clarity, and color.<br \/>7. He mentions the possibility of buying newly minted Bitcoin directly from miners, suggesting it may have more value than other Bitcoin, and reinforces the idea of not spending windfalls to pay off debts or buy assets in cash.<br \/>8. Jay provides strategies for offsetting liabilities, such as generating income equal to expenses or using investments to pay off liabilities, using examples like buying a duplex to offset a mortgage.<br \/>9. He also discusses the concept of matching funds as an alternative to paying lump sums towards debt, and he emphasizes the idea of offsetting liabilities with assets to avoid additional tax liabilities and risks.<br \/>10. Finally, Jay discusses potential investment opportunities that can provide regular income, like certificates of deposit, tax lien certificates, mutual funds, and other fixed income instruments, but he also warns about potential changes in the economic system that could affect these investments.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d39b829 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d39b829\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-88da5d9\" data-id=\"88da5d9\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>U20 &#8211; Asset Allocation Part II<\/p>\n","protected":false},"author":131,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[124],"tags":[],"_links":{"self":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/14237"}],"collection":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/users\/131"}],"replies":[{"embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/comments?post=14237"}],"version-history":[{"count":7,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/14237\/revisions"}],"predecessor-version":[{"id":25256,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/14237\/revisions\/25256"}],"wp:attachment":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/media?parent=14237"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/categories?post=14237"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/tags?post=14237"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}