611: Wealth Strategies for an Uncertain and Changing World

SHOW NOTES FOR EPISODE 611: WEALTH STRATEGIES FOR AN UNCERTAIN AND CHANGING WORLD

Major world and economic events are impacting us more today than ever before.  As real estate investors, our livelihood is truly at risk!  In today’s episode, podcaster, author and cash flow expert M.C. Laubscher shares what major events are in process, how we should prepare and ultimately how we should respond to not just survive but to thrive.

What You Will Learn

• How a “4-Horse” Investing Strategy will help you through challenging economic times
• Why there are major phases that reshape out country every 80 to 100 years
• What are some of the biggest “storms” coming up that will affect investors?
• How can you best position yourself and your portfolio to survive any major economic, political and global event
• Why we are in the “4th Industrial Revolution”
• What is “The Great Reset” and how will it impact us as real estate investors?

About Our Guest

M.C. Laubscher

M.C. Laubscher is a Husband, Dad, Podcaster, Author & Cash Flow Expert. As a cashflow investor and entrepreneur, M.C.’s passion is to assist investors & business owners to create, recover, warehouse & multiply cashflow through advance strategies. Having figured out how to escape the rat race and replace his income through cashflow investing, he shares how highly paid professionals and business owners can replace their incomes through cashflow investing strategies to escape the rat race. He is focused on helping business owners and investors capitalize on their economic opportunities in times of great change, disruption, and chaos.

M.C. is the creator & host of the top-rated business and investing podcasts, Cashflow Ninja & Cashflow Investing Secrets.  The Cashflow Ninja Podcast has been downloaded over 4.5 million times in over 180 countries and has been featured as one of the top 48 podcasts for entrepreneurs by Entrepreneur Magazine and is regularly featured as one of the top 100 podcasts by Apple Podcasts.

M.C. also founded Producers Wealth an insurance brokerage helping clients in the United States with advanced cash flow strategies and Producers Capital Partners, a firm assisting investors all over the world to invest in alternative assets that produce passive income in any economy and market.

Reoccurring Cycles Causing Confusion

• We are living in very interesting times
• A lot of people are very concerned because many different storms are coming together simultaneously to create one big giant storm
  • We are seeing many different cycles overlap
    • Most people know about cycles such as…
      • Asset cycles
      • Market cycles
      • Economic cycles
    • But there’s also…
      • Demographic cycles
      • Empire cycles (power shifts globally as with Russia and the Ukraine)
  • When all these things come together, it causes a lot of confusion

The 4th Industrial Revolution

• Then, throw in the technological development over the last 20 years
  • We are full-steam into the “4th Industrial Revolution”
    • Phase one – The Locomotive Engine (connecting societies)
    • Phase two – The organized workplace – assembly lines & quality control
    • Phase three – The age of the Internet (connecting the entire world)
    • Phase four – The Internet of things – smart watches, phones, TVs, appliances
      • AI (artificial intelligence)
      • Robotics
      • 3-D printing
      • Driverless vehicles
  • Things are moving much faster today than at any time in history
  • Many people don’t know what’s happening
  • Some do and are positioning for it

80 to 100 Year Cycles

• From a book called “The Forth Turning” by William Strauss
  • We are living through this 4th turning now
  • The book talks about…
    • 80 to 100-year cycles that every country, empire goes through
    • There are seasons in these cycles:
      • Winters – dark, cold times
      • Spring – recovery
      • Summer –
      • Fall –
    • In the U.S.
      • 80 years ago – WWII
      • 80 years before that, there was the Civil War
      • 80 years before that, we had the American Revolution
      • These cycles repeat every 80 to 100 years

Massive Change, Disruption and the Great Reset

• We are clearly in a time of great and rapid change
• It is a time of very disruptive technologies that can impact everything within our economy
  • There is no sector or market that will not be impacted
  • It’s causing a lot of chaos and confusion
  • It’s also leaving a lot of people behind, which causes social friction
  • As you see these things boil over, it causes a very disruptive and divisive political environment
• To add more fuel to the fire, there is a concept that has been floating around called “The Great Reset”
  • When people heard about this concept, they thought, “Is this just something with a bunch of guys with cigars sitting around in a dark room planning nefarious things?”
  • In reality, it is openly talked about in think tanks, global institutions (World Economic Forum)
  • There is even a book written by the chairman of the World Economic Forum, Klaus Schwab, wrote called “Covid: The Great Reset“
• What is the Great Reset?
  • The Great Reset is a time where we are going to see the reset, restructuring and collapse of structures, frameworks and systems that we have taken for granted our entire lives
  • All these things are coming together
• If you understand what’s happening…
  • You see how things are connected
  • You realize where we are
  • You can anticipate what steps are coming
• This could be one of the most exciting and exhilarating time in anyone’s life
  • Why?
    • Because it’s in times like this, where capital really moves
    • Money isn’t disappearing, it just changes hands – from one area of the economy to another area of the economy
    • People who position themselves well – on the right side of the greatest wealth transfer in human history
      • Which we’re already well into
      • If you just look at the numbers that have come out since 2020
      • One of the areas you see this is in the cryptocurrency and blockchain areas
        • There are smart ways to invest in that marketplace
          • For example, the “California Gold Rush Strategy”
            • The people during the California Gold Rush who really made made fortunes were not the miners!
              • They were the people who…
                • Sold the shovels
                • Sold the equipment
                • Sold clothing, like the Levi and Straus family
                • Sold food to the miners
                • Housed them
                • Provided them with entertainment
                • Provided financial services (Wells Fargo)
          • People who will make a killing in the cryptocurrency space are those who provide
            • Specialized tax services and planning for crypto investors
            • Specialized legal assistance for crypto investors
  • Within this gloomy, chaotic, uncertain, disruptive times, there is an abundance of opportunities for those that want to see it and who will capitalize on it
  • But there is a lot of fear out there
  • Some people refer to it as maximalism – this will solve all problems are cure all ills
  • And the next person would say the complete opposite – saying no, this is the magic bullet
• Ray Dalio (who has the four seasons portfolio) prepares for everything and anything
  • He elevates his portfolio in different areas which positions him to take advantage of an economic boom and inflation and an economic contraction, and for a recession and collapse and deflationary event that could occur
  • There are a lot of maximalist views
    • They are positioning themselves for anything that can be thrown at them
    • They have a stable of horses
      • This is a very dangerous time if you are going to bet everything you have on one horse in this race
      • You need a stable of horses for different tracks, for different environments that will be coming at us in the coming weeks and months ahead
• M.C. asks himself, “What can I do to prepare for different types of outcomes?” and “How can I position myself and my overall wealth strategy so that there’s not any surprises out there?”
  • “Will there be wild cards?” – absolutely!
  • “Will there be blind spots?” – absolutely!
  • Every investor has them!
  • We don’t have a crystal ball!
• M.C. has a daily exercise he does in navigating the environment that helps him a lot he has developed over the last two years
  • He got this concept from a man called Keith Cunningham called “Thinking Time”
  • Every single day, he blocks off one hour, grabs an empty notepad and just thinks
    • He thinks about his thinking
    • And he uses some frameworks to help him with it
    • Henry Ford said, “Thinking is one of the hardest things to do.  That’s why so few people engage in it.”
    • He takes the frameworks and evaluates all the dangers and threats that’s out there each day
      • This gives clarity – to see what is a threat to you, your family, your business and your investments
    • Then, he thinks of potential threats he hasn’t seen yet
    • Then, he looks at opportunities
      • When you’ve written down your threats, that’s when opportunities will start to emerge – massive opportunities
      • For example, one of the threats he was looking at was in the energy markets
        • When Biden shut down energy production, M.C. saw that other types of energy had to be used
          • Unfortunately, we aren’t going to power everything around the globe with solar and wind – there will have to be another source of power to do that
            • Nuclear came to mind (it currently only powers 10% of countries around the world)
              • Then, he thought of uranium and the demand for uranium
      • Some key things he looks when assessing dangers and opportunities are:
        • Money
          • The monetary system changes every 30 to 40 years
            • August 15, 1971, Nixon took us off the gold standard
            • News headlines show the monetary system is ready for a shift in the making today
              • Bretton wood 2.0 (The Bretton Woods system of monetary management established the rules for commercial and financial relations among the United States, Canada, Western European countries, Australia, and Japan after the 1944 Bretton Woods Agreement. )
                • It’s in the process of resetting
                • The World Bank, IMF and central bankers are saying a change is needed and coming
        • Banking
          • The way that we bank is also changing
          • The debt market is the biggest market out there
        • Energy
          • Energy drives every economy
          • How important oil and gas is
        • Commerce
          • What’s happening in the business world
          • Everything is going digital
        • Markets – Equity, Currency, Commodity, Crypto
        • Real Estate
          • One of the best places to have been in the last two years was short-term rentals
          • The way we live and worked changed
            • We started going virtual
            • You no longer needed to live where your employer was based
          • It changed the job market
            • The talent pool is now basically the world
        • Travel
          • Airlines shut down for a bit
          • People are flying less
          • Instead of going on vacations out-of-country, people are driving 3 hours to stay at an Airbnb by the water for the weekend
        • Societal Trends
        • Health Trends
        • Food Trends
        • Supply Trends
        • Education Trends
    • There are enormous threats and enormous opportunities
      • Uranium traders
      • Short-term rentals
      • Education
        • The Tuttle Twins

The 4-Horse Strategic Investing Model

• When looking at investing, he asks himself, “How can I position for any event – anything that may happen in the economy or anywhere?”
• You need to have a stable of horses
  • He has 4 key areas of allocation or “4 horses” he depends on (Like Ray Dalio’s “4-Seasons):
    1. Cash (your everyday workhorse)
       • It’s one of the most important things to have available in uncertain times
       • It’s a great tool in your toolbox
       • If there is a deflationary event, you’re going to need cash for many different reasons
         • To buy assets at a discount
         • As a stability factor in your portfolio, too
       • It’s your stabilizer
         • Buy more gold and silver
         • You can buy more cash flow producing assets
         • Buy more assets for growth
         • You can always deploy if there’s a boom or a massive inflationary shift
       • Always have cash on hand – and not in the bank!
         • He’s very nervous about banks
         • The nature of banks is going to change very quickly
         • Banks have the right to keep your funds in the event of a major crisis
       • Infinite Banking Strategy
         • He “decentralizes” himself from the banking system working through insurance policies
    2. Metals (your war horse)
       • Gold & Silver
       • Your defensive play
       • Your wealth insurance – especially when you start to see massive wild card events (major deflationary event, etc.)
       • Gold has been money for centuries
       • Silver is probably the most undervalued asset right now of all asset classes
    3. A Cash Flow Portfolio (your race horse)
       • Your monthly income
       • Multiple diversified streams of income
         • Real estate
           • Resort properties
         • Businesses that focus on
           • Necessities (food, clothing, etc.)
           • A business that can relieve people of their problems during tough times (weekly co-living, cheap rentals)
           • Luxuries, too (some will seek these items in tough times)
           • Energy businesses
           • Go for different sectors and niches – DIVERSIFY!
         • Airbnb/Short-term rentals
       • You do not want to depend on just one source of income in uncertain times
       • Other good cash flow niches during tough times from his book, The 21 Best Cash Flow Niches
         • Teak investments (within the timber niche) is held by many wealth families
         • Agriculture (crops, livestock, farms, etc.)
         • Music, movie and art royalties – There is a platform where you can buy the rights to songs by well-known artists, movie rights and art rights
    4. A Growth Part (your fastest horse)
       • You need to continually increase your total holdings
       • Crypto and blockchain
  • These 4 Horses allow you to be ready for all seasons and any storms!

His Book and a Freebie!

• The 21 Best Cash Flow Niches by M.C. Laubscher
• If you buy the book, take a screenshot of the proof of purchase, email it to his team at info@cashflowninja.com and you will get FREE access to an eBook and additional cash flow niches as well.

How to Reach M.C.

• Website: cashflowninja.com

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