Digital Social Hour - New Way to Secure Your Wealth: Trusts vs. Wills I Matthew Schloss DSH #509

Starting point is 00:00:00 America. We are endowed by our Creator with certain unalienable rights, life, liberty, and the pursuit of happiness. At Grand Canyon University, we believe in equal opportunity, and the American dream starts with purpose. By honoring your career calling, you impact your family, your friends, and your community. The pursuit to serve others is yours. Find your purpose at grand canyon university private christian affordable visit gcu.edu my dad's will was like 10 years old so um he gave me a car i mean i didn't want anything anyways but yeah it was just like outdated right that's usually the problem um you know we believe in working middle class that all you need is a will.

Starting point is 00:00:47 But when you own the mini, you own a property and you have kids that are under 18, you need to trust. The trust is what protects everything. Wherever you guys are watching this show, I would truly appreciate it if you follow or subscribe. It helps a lot with the algorithm. It helps us get bigger and better guests and it helps us grow the team. Truly means a lot. Thank you guys for supporting, and here's the episode. All right, guys, from foster care to millionaire, we got Matt Schloss here today. Thanks for coming on, man. Welcome. Thanks for having me. I'm happy to be here. Yeah, what a story. That's not a common one, man. Yeah. I started my life out really in poverty,

Starting point is 00:01:23 just living downtown San Jose is where I was born and in California. And, you know, my parents and I were kind of hopping around from hotel to hotel and living in different cars. And, you know, my parents were at that time doing their best. And from then on, you know, I went into foster care like around the age of four. And then from then until about age of nine is when I was finally back with my parents. And that little span there kind of gave me a great view into what I don't want for my family. So I use that now to inspire people rather than asking for pity or anything. It's more of like your past doesn't define you. It can actually make you.

Starting point is 00:01:57 And you can rise up from what people have gone through. That's powerful. So age four to nine in foster care system, you're really young at that time. Do you remember a lot of stuff? I remember a good amount. Most of the bad stuff. Foster care is not fun. And it also feeds into what I do today, helping people with trust and wills and making sure that less kids are going to foster care because it's very bad and it's only gotten worse. Dang. How packed was it when you were there? Well, one family I lived with, they were taking care of like four kids and I was one of them them and this was probably the worst family i was with and i remember sitting there at dinner

Starting point is 00:02:30 and if you misbehave they would give you like cream of mushroom soup i don't know if you've had cream of mushrooms i've heard of it it's disgusting it's gross and so we would eat cream of mushroom soup and everyone else would get mcdonald's and i remember sitting there and i like scratched my head and like lice and bugs fell on the table. Holy crap. And this lady looks at me and she's like, you're disgusting. We'll take a bath. And I'm like, I don't, I'm freaking five years old. Like I don't take my own baths, you know? Dang. So I remember those types of things. And so that's a big passion for me is why, you know, I really want to make an impact in foster care and helping kids that age

Starting point is 00:03:03 out. That's usually the worst time is nobody wants them. So now they're all left to their own device and they got to figure out from there. That's crazy. And going back to your original family, I feel like that's pretty rare for the foster care system. Which part? Like you said, your family dropped you off at four and you reunited with them at nine. I was taken away at four.

Starting point is 00:03:19 Oh, taken away. Yeah, me and my sister, we were both taken away at four. Because they couldn't afford having kids? No, my parents had made some choices that were not good at that time and luckily my parents you know cleaned up and did what they needed to do and i'm grateful for them so then once they did what they needed to do we went back to to them at the age of nine when i was nine my sister was four or five got it and you were still in a pretty poverty like area when you got back by the time i got, my parents had done pretty well.

Starting point is 00:03:45 They got back into like a, you know, a nice place. My dad and mom were both working. So they, they've done pretty well for themselves at that point. But no, nowhere near like upper class or anything. We're still, you know, very middle class. Okay. Yeah. And then from there you went through school and then eventually got into real estate?

Starting point is 00:04:00 No, actually. So I went into school, did a little bit, played football for a while and went to JC. And then from there, just kind of went into corporate America, started working for Home Depot, started working as like an operations manager for them for about four and a half, five years. Then started working for another company called Airgas and like their external sales. And then from there, I actually got into finance. OK. So working in life insurance, infinite banking, will uh wills family trusts that kind of stuff that's a whole nother game a lot of people don't get educated on that type of stuff no they just basic money concepts like these things we should

Starting point is 00:04:34 be taught in school for sure and uh we're not and it's really bad i know people that have passed away recently that don't have wills none and then the family scrambling and fighting. Some people just don't want any part of it. Like my dad's will was like 10 years old. So, um, he gave me a car. I mean, I didn't want anything anyways, but yeah, it was just like outdated. Right. That's usually the problem. Um, you know, we believe in working middle class that all you need is a will, but when you own a, the minute you own a property and you have kids that are under 18, you need to trust. The trust is what protects everything. And so we, we, we, we work with a group of lawyers that will, you know, they work all across the U S and they'll help put those trusts in place, power of attorneys and wills and everything that you

Starting point is 00:05:19 need. Cause the other part about it is when someone's sick and they're in the hospital, well, your spouse can't always make those decisions for you. So that's where you have a power of attorney. So if you like, the doctors would decide if the plug needs to be pulled or not. And your spouse can't make that decision. It has to be the doctors. Unless you have that power of attorney. So it's very, very vital to have that stuff.

Starting point is 00:05:40 A lot of famous people have died without trusts. James Michael Jackson. He didn't have one? Nope. Wow. He didn't have the state? That's crazy. None of them.

Starting point is 00:05:48 That's actually really surprising because most of those big artists, I feel like, have them. You would think they do. Some of them are starting to now. They're starting to see their friends pass away without and what their families are having to go through. Yeah. So a lot of them are starting to get them. But it's just, again, it comes down to education and the people we're listening to. The trusts are also good to have for business too.

Starting point is 00:06:04 Yes. Protect your assets. Very important. A lot of people get sued at a high level. So to have it in a trust. Yeah. You just take everything off of yourself, put it into a trust and then you don't like you, you own everything, but it's not on paper. So when you get sued or if something like that happens, I don't want anything. Yeah. On paper, I'm broke. If someone were to sue me right now, they would probably back out. Cause they would see I have a thousand dollars in my bank account. That's the way it should be. That's the way it's supposed to be.

Starting point is 00:06:26 Yeah. It makes me feel comfortable. Good. Because I used to keep everything in my personal name. Yeah. And that was just stupid. Yeah. It's not stupid.

Starting point is 00:06:33 It's just, again, uneducated. Yeah. It's where are we getting our information from. It's really what it breaks down to. So walk me through your setup. Like you have an LLC, which you put in a trust. And then do you put all your companies and real estate and assets in that too? Yeah.

Starting point is 00:06:45 So as we build and we tie everything into our trust, my son's in our trust, my business ownership is in our trust. Everything is around that. So again, on paper, I look extremely broke. But when you look into and dive into what we own and what we have, it's all tied into a trust. Nice. And broken down.

Starting point is 00:07:00 And you got the health insurance in there too? Yep. Everything. Life insurance, everything. That's something people don't get educated on also the health and life insurance. Yeah. You know, a lot of individuals, they build their estate. You know, when, when you get to a certain amount in your estate, um, it still can be tax-free when you pass it on to the family. But once you get to around 13, 14 million, if your estate is past that, everything past that threshold is going to be

Starting point is 00:07:24 taxed. So now what you can do is you can create something called an islet, an irrevocable life insurance trust. And that islet holds a certain amount of insurance and it can be cash value or term or whole life or whatever you want. And now if your estate grows to 20 million, that islet is removed from your estate. And so now that can be paid out to pay for any taxes that are left or, you know, step up in basis on property or anything like that. So now the family can retain everything and not have a bunch of taxes. Yeah. That's great to know because a lot of people can't even retire right now. They don't have enough money or they don't know the right information. Yeah. A lot of people are retiring around 65 and have 200,000 sitting in a 401k.

Starting point is 00:08:00 That's not enough. That's the meat. And though we're near enough, that'll last you a year or two. Yeah. You probably need a few million, right? Right now they're saying it's around 1.4 to 1.6 million, uh, depending on what article you're reading. Some are even saying 3 million cheese because by the time, you know, I'm 35 by the time, you know, we get there, if you're in a deferred account, then you're going to need to wait for taxes to pay out. Like there's so much that goes into it. Yeah. So 1.4 to 3 million is what you need saved up by the time you retire now. Crazy. I just saw a crazy article, uh, cause of inflation. So we're going to need to make about $30 million like me and you to retire throughout our lifetime. Isn't that crazy? It's very crazy.

Starting point is 00:08:35 And that's why we're working our butts off so we can make that happen. I know like being a millionaire is not enough anymore. It isn't. I mean, it used to be in like the fifties, sixties, seventies. Nope. It's yeah. Even then, like I think people, you know, people now making a hundred thousand, depending on where you live, you're not, you're barely getting by maybe a vacation a year. Yeah. And you're still stressed out. Most people are living paycheck to paycheck, you know? And so I used to make about a hundred thousand a year.

Starting point is 00:09:00 And now with the income we have, I look at that now and I go, dang, we still, we got to turn that up even more. Yeah. You know, so like our mentors and stuff, we talk about a million a year. And now with the income we have, I look at that now and I go, dang, we still, we got to turn that up even more. You know, so like our mentors and stuff, we talk about a million a month. What can we, what can we build to get to a million a month passive income? Yeah. So you believe in passive income because people, there's some people that say it doesn't exist with, especially with real estate. Yeah. Well, real estate isn't passive. It's very active because you got to manage the house. You got to fix the things. Like there's so much that goes into real estate. It's very hard to make it passive. Passive is something where it can run itself without you being involved and you still generate income, passive income. So the, you know,

Starting point is 00:09:32 we're building a business in the finance industry and we have almost a hundred licensed agents across the U S so now that my, my business partners are going on helping families. And then the agency is, is delving out passive income for that. Got it. Right. So I'm not necessarily sitting with someone while they're helping a family, they're taking care of them. And then the company pays out, you know, overrides and spreads for that part of the business. So we want to grow to a thousand, 2000, 10,000 licensed agents all across the U S now that's a hundred percent passive income. Right. That's what PBD did. Right. And Ed Milet. Yep. And then Milet. Yeah, they crushed it. I think PBD sold. He did. Ed Milet. I don't know if Ed sold, but. He has not. It's worth a lot of money. He's working on walking away from the industries, but he's in and out

Starting point is 00:10:14 again. But that's pretty much what he did and PBD for sure. Yeah. Yeah. I don't plan on selling though. Really? We're going to build it big. Yeah. You don't ever want to sell? No, I want to pass it on to my kids. Wow. I want to give it to to them i want to build something so big that it's for the next 10 15 generations yeah yeah i like that take i mean depends on the kid that too yeah yeah hopefully then you're watching this you better behave yeah because there's uh some generations where i don't know what happens but they can't hang the mental toughness these days it's not there yeah like i i call it the snowflake generation and i want to get offensive on here but it's just you know you i was i think about mental toughness and really what mental toughness is it's doing the things you need to do regardless of how you feel

Starting point is 00:10:55 um it's winning in spite of what you're going through in life and most people now when you look at like go back 100 years go back 200 years you know for us to eat and and get water like it wasn't as easy it is now but like if you have family they're depending on you for two three weeks going out there you got to go hunt you got to go get the meat you got to bring it back right and when you bring it back you you put this this meat right in front of the fireplace and your family's jumping up and down they're excited and now you're prepping it now you're cooking and the mental toughness of that is a whole nother level compared to what we're used to now, where now you can just order food

Starting point is 00:11:30 right to your room. Are you interested in coming on the digital social hour podcast as a guest? We'll click the application link below in the description of this video. We are always looking for cool stories, cool entrepreneurs to talk to about business and life. Click the application link below. And here's the episode, guys. Yeah, it's definitely gotten easier. I feel like with every generation, it's gotten easier and easier to live.

Starting point is 00:11:52 Yeah. And now we're overeating, doing a bunch of stuff and we're getting unhealthy. I don't know. We'll see if it keeps getting softer. Yeah, it's very soft right now. It is. It's hard to make,

Starting point is 00:12:01 it's hard to build a business with that because now you're trying to find those that aren't snowflake soft and you don't know you know what i mean yeah that mentality is getting tough to find it is it really is i i don't know why i had it at a young age because my parents were both immigrants so maybe i just subconsciously picked up on their work ethic but i always had a pretty locked in mindset yeah it you know people that come from different countries like my wife is from bosnia her parents parents are from Bosnia. They were born and raised there. Um, their mental capacity on working and getting things done is just, it's completely different than people that

Starting point is 00:12:35 I know here that are born here. Yeah, no, for real. Cause I just had a guest on yesterday and he grew up in a rich family. He's doing well, but his brother's homeless. Oh my goodness. So just cause you're born in money, it doesn't mean it's true. You're going to end up well. Yeah. And I'll tell you this. My son doesn't know we're born. He's born into money. Oh, he doesn't. He's not going to know he has money until I want him to know. Like when he, when he asked for something, he's like, dad, we can just buy this. I said, no, son, I can buy it. You have no money. This is our money, right? Like, so he, he doesn't even know he has all the plans we have in place for him. There's, he has no clue. Right., right? So we're already working with him on a few things

Starting point is 00:13:05 on how to understand money. Like he wanted to do chores for money. I said, every chore you do, son, I'll give you $1. Every book you read, I'll give you three. Nice. So now it's more about him starting to read books and he actually likes to read. So now I make three bucks per book.

Starting point is 00:13:19 And so we're working on teaching him money and more about service for money instead of like, hey, do this job or do this thing as like an employee and we'll give you money more of like, Hey, if you go over to grandma's and you help her and you give you, give her some service, then she'll give you some money. Right. So now it's teaching him more about like, um, uh, entrepreneur spirit instead of employee minded. I like that. Yeah. PBD does something similar. Yep. Yeah. The books, if you're reading at that age, I mean, you're going to be next level.

Starting point is 00:13:43 Yeah. He's six. He started, we found out he could read we were in canada on a bit listen to this this blew my mind so we're in canada on a business trip and my wife's finishing getting ready and i'm standing by the door with my son and we have this wall with like a fire like hose on there right and my son starts reading in case of emergency break glass and at this time he's like four and a half i'm like are you kidding me so i tell my wife come out here he does it again and then he starts kindergarten a year later and he's reading in kindergarten the teacher's like did you know your son could read at five and we're like yes we knew that so we've just been working with him and letting him you know watch things that have um

Starting point is 00:14:17 subtitles and all that stuff yeah so he's just he's just that's impressive because 90 of the brains form zero to six so he's gonna be a genius yeah that's cool i 90% of the brains for him, zero to six. So he's going to be a genius. Yeah. That's cool. I don't even know when I started reading, but yeah, five sounds really young. It's very young. That's before kindergarten, right? It is. Yeah. I don't think I started till probably kindergarten, first grade. Yeah. I don't remember when I started reading. I can still barely read. Yeah. What do you think about traditional retirement stuff like 401ks and IRAs? Yeah. You know, This is one thing that I'm heavily fighting against because when you look up and you start looking at most or the majority of 401ks and IRAs and traditional plans, they're failing. They're failing Americans. I look at my parents. It wasn't for a

Starting point is 00:14:57 lack of saving into the plan. It's for the operation and how it works. It makes money, it loses money. It makes money, it loses money. When you run the math of the S&P 500 over a 30, 40 year timeframe, the average over the last 40 years from 1982 till 2023, probably 10.4%. But when you break down the actual rate of return somebody has gotten inside that plan, it's not 10.4, right?

Starting point is 00:15:19 The money doesn't add up to what the markets have done because it can lose money. So my main gripe with it is it's oversold, right? It does not produce what people are telling you it's going to produce. It's heavily loaded in fees. When you break down the fee structure of a 401k, you're going to be paying more, just as much in tax and fees than anything else. Wow. I didn't know they had fees. Oh, definitely. Yeah. The average in the industry is between 1.5% to 2%.

Starting point is 00:15:45 A year? Yeah, a year. Damn. And that comes directly out of your account value. I didn't know that. Now, if you're managing your own 401k, then there's no fee. Okay. But if you have someone else helping you with it, it can get up there.

Starting point is 00:15:56 There's a Forbes article that was written. I'll send it to you, and you can add it. But there's a Forbes article that was written that says it can actually go up to 3.4% to 5% in fees if you're not actually managing it the right way. Jeez. And it can add up. So you're talking $500,000 to $800,000, up to a million, depending on how much you're putting in there, just in fees during your working years. And that comes directly out of the account value. But you see, this is what most traditional advisors won't tell you because that's their income.

Starting point is 00:16:21 I get to charge you a percentage whether you make money or lose money. Right. Then these people retire and they go, you can only level off about 4%, Sean. That's their income. I get to charge you a percentage, whether you make money or lose money. Right. Then these people retire and they go, you can only live off about 4%, Sean. That's it. 4% of your millions, which you're going to be able to take out to make sure you don't run out of money. That's called the 4% rule. Yeah.

Starting point is 00:16:34 That's 40 grand a year. That's tough. That's poverty almost. Yeah, that's not enough. Like think about when we're 65 years old, do you want to live off 40 grand a year? Definitely not. Before tax. By the way, you still got to pay tax on that.

Starting point is 00:16:44 Oh, definitely not then. So maybe 25. Correct. Right. Who knows where taxes will be in the future? So my main gripe with it is, is not that it's bad for people because it can work. It can get people to retirement. The problem with it is when you go to retire, you're going to live off 4%. You got to make sure your money isn't in the markets anymore because it can still lose. And will that money be there for life? Right. That's the main thing that people are worried about when they get to retirement is how much money am I going to have for the rest of my life? Right. That's why, you know, building a business is so powerful because if my business continues to pay me into my 70s and 80s, I don't need to worry about anything. Yeah. So other than your business, what are you

Starting point is 00:17:18 investing in right now? Any real estate stocks, crypto? No, I'm mainly right now. My wife and I and our family were heavily into index universal life. So we're putting, you know, close to 150 160,000 a year into index universal life. I'm not making any move on real estate right now. The way that I was kind of raised was, you know, focus on one thing until successful focus. And so I'm focused on building this business until, you know, it's, it's passing us into a million dollars a month. Then I'm going to start looking at those real estate things because at the end of the day, real estate is not going anywhere. That's true.

Starting point is 00:17:48 Right. It's going to be here for a long time. So I'm not worried about real estate. I'm not really getting into that. I want to focus on one thing until successful. With that, I also want to make sure I'm focusing on our business partners, getting them to a million dollars a year and helping them. So right now, no, no real estate for us. We're focused on stuffing as much money into our IULs to let that grow tax free. And then when the time comes, we can pull cash from that and go buy real estate or make moves or whatever we want. Got it. I do have some stocks that I dabble into. So I have some Amazon stock, right? And I do have a Dynatech fund inside of a mutual fund. So I have some inside of the deferred markets, but most of my money is going

Starting point is 00:18:25 into a properly structured IULs. Got it. And that's basically a legal tax loophole, right? It's a life insurance contract, pretty much. So you're putting your money into a cash value life insurance. It's growing tax-free. You can borrow that money out at any age without tax, without penalty. That's how I bought this Rolex. Really? Yeah. So you took a loan out against your balance? Yep. And that 45 grand is still earning interest right now. Really? Yep. What the heck? So you're collateralizing against the life insurance contract and the death benefit becomes a collateral. So knock on wood, if something were to happen to me right now, that would turn into a life insurance policy, pay out tax-free and the loan would get paid off. Got it. Okay. Yep. So these have been around for

Starting point is 00:19:00 a long time, right? So the tax codes around life insurance has been around since the 1800s. It started with whole life and then evolved and got better. And then the government saw how people were using it. So then they kind of put these three guidelines around a Tefra, Debra, Tamra, um, and all these other tax codes around it to make it not so someone to shove 10 million into it and it's all tax free now. So they got, they have guidelines and stipulations around it, but there's limits. Yeah, there is. Yeah. And it's all based on, uh, Oh, it's based off your income. So like a percent. Yeah. Okay. So if you make a hundred K, you can only put in X amount. Exactly. Yeah. Based on your age and how much you make, it'll pretty much decide the amount of death benefit you can have. Got it. And that's what dictates how much can go

Starting point is 00:19:36 in per year. And is this infinite banking? It's a form of it. Yep. Got it. So infinite banking is a concept, not a product, right? A lot of people get it confused. A lot of whole lifers will go, oh, you can only do it with whole life, right? And we do use whole life a lot. We have a lot of clients that use whole life for infinite banking, but it has its purpose and IUL has its purpose. IUL can do exactly what whole life does in the infinite banking space because now they have a lot of like fixed indexes you can use where you'll get three or 4% just like you would in a whole life policy. Right. The difference is,

Starting point is 00:20:07 is that an IUL can grow an average eight, 10, 15%. I mean, we have clients have gotten 61% returns in their IULs before. Damn in a year. Yeah. Holy crap.

Starting point is 00:20:15 A year. So some, that's something that a whole life policy will never do. Right. And the other side of that is that 61 or 15 or 8%, that person earned. Now they have contractual guarantees to never lose money. So if the market went backwards the following year, their gains and the money they put into it's guaranteed not to go backwards. So that's why we put a lot of money

Starting point is 00:20:33 into them because we have the leverage. We won't lose any of our principal. We won't lose any of the value it's earned. And if anything happens to me, my wife and son are more than taken care of. Nice. Are you using any debt right now or you don't believe in debt? No, I do believe in debt. I think, you know, because when I've loaned from a policy, it becomes debt technically. And then it does keep earning interest, right? Because if I pass, the debt gets paid off for my death benefit. Got it. So it is a form of debt in the policy. I think using debt, if you do it the right way, I think Robert Kiyosaki has it nailed down. If you're using debt the right way, it's a solid way

Starting point is 00:21:02 to really build a nest egg, really gauge your net worth. So how did he build that billion dollar real estate portfolio? Was it all debt? All debt, all OPM, other people's money. Interesting. And so he's just building it and building it with other people's money. And it's a smart play. I mean, would you rather borrow the bank's money and pay them back? Or would you rather borrow someone else's money, go into debt and pay them back? I'd rather borrow someone else's money. Why? Because I can pay you back sooner and it's going to be less interest oh because the interest is lower yeah we get to dictate the interest together got it right that's seller financing right so the other part of it is like i have a guy that uses his iul um before he would help people start businesses and he would help them open a credit card right so open a credit card start your

Starting point is 00:21:41 business i'll help you pay it back down well now he started an IUL and two years in, cause he's been funding it. So now two years in, he'll pull money out and he'll go, here you go, Sean, here's your, here's your money to go start your business. But now you got to pay me back with interest. What do you want to do? 5%, 6%. He lets them pick because he knows that money is going to stay in his IUL and keep earning interest. He's in debt, right? Someone else is now in debt to him technically, but now they're going to, they're going to pay him back with interest. They write it all out. It's all in contractual writing. It all goes back into his IUL rinse and repeat. That's cool. What's the interest on an IUL typically? Um, on the loan? Yeah. Yeah. So it depends on the company because all carriers are different, but on average, you're looking at

Starting point is 00:22:20 three to 5% simple interest. That's pretty low. It's very low these days, especially. I mean, at a bank, it's going to be compounding interest and they're going to tell you, you got to pay it back in seven years. And an IUL, if I take out, let's just say 10 grand and my, my charge is 5%. It's 500 bucks for the entire year that my charge is. It's very low. Yeah. That's super low. Yeah. It's almost nothing. Yeah. If you reinvest that in the right spot, I mean, exactly. As long as you put it somewhere, you know, you're going to get more than 5% simple, which is pretty much anywhere. Yeah. Then you're good to go. But the IUL also will pay on that loan too.

Starting point is 00:22:49 Wow. Yeah. Really cool, man. Yeah. You can really, the compound on this must be insane. Once you're in like year 10, year 20. Yeah. If you're, especially if you're funding it a lot, like, like, you know, we're putting 150, 60,000 into ours a year, you know, looking up five years from now, that thing's going to be in the millions. Damn. We started one for my, actually we have three for my son. So this is, he can't watch this part of the interview, but we have three for my son and we started one the minute he was born. And then we have two more as he got older and now we pay him a thousand bucks a month and he helps with the business and all that capacity. So we get a write-off for him as well, but all his money goes into IULs too. So his projection is like three to 4 million by the time he's, you know, 18 to 20 years old. You're breeding a trust fund baby. That's right.

Starting point is 00:23:29 He will know about it, but yes, we are, you know, and again, it's, it's comes from me being in foster care, man. Like I don't, I want to build something that my son can, can take over the right way when he's of age and he'll understand money. He'll understand business. He'll understand all of that. So that by the time comes, he'll be able to kind of take over a business pretty well. Yeah. How do you think the foster care system can be improved? I mean, you got to think about

Starting point is 00:23:53 the foster care system as a business, right? If you want to take on foster kids, you want income for that. So you get paid. Oh yeah. The state pays you. Interesting. Yep.

Starting point is 00:24:01 I didn't know that. Yeah. So the state pays you to be a foster parent. You got to go through all these interviews and stuff and you got to qualify. And once you do, they'll pay you to take on kids. So the more kids they hold, the more money they make from the state. Wow. So the parents don't give a shit about the kids then for the most part. Most part. I had a few good foster parents when I was with them. But the majority of them, they do not give a shit. And there's no contract on how long they have to have the kid. They could just return it at any

Starting point is 00:24:24 time. No, they got to keep the child until either they get the child gets removed for a cause um or that the kid goes back with their parents oh wow the foster parents can say hey this kid's a problem i don't want him anymore and the state will go well you got to figure that out okay so that's where my parents came in because you when you know when you have when you're in foster care you have supervised visits so i get to be with my parents in a room with a social worker watching, taking notes. Oh, got it. It's very awkward. That is awkward.

Starting point is 00:24:49 It's like a prison almost. Lightweight. So they're sitting there watching. And I would tell my parents, hey, this family, they're being a bad mom. They're not taking care of me. They're not showering me. I'd show them my hair because they cut my hair. They buzzed it.

Starting point is 00:25:03 And so then they would report back to the social worker. And then if, if more keeps coming up, then they'll remove them from the, from the house. But, um, yeah, they're, they're working for income. They're, they're doing this for pay. So sometimes they don't really give a, give the kids. And sometimes they do. Interesting. But the biggest problem with it is not that I get it. If you're taking someone else's kid in, uh, you should get compensated for that but at the end of the day you gotta you should be helping that child's life get better not worse they're already going through so much right so the problem with it is i don't think there's

Starting point is 00:25:34 enough checks and balances on those families as the kids are there because i don't remember any surprise visits while i was there from the state coming to check in and to see the quality of the house see the quality of the the kids like i don't remember any of that. Yeah. They should do that once a month at least. And it should be surprised. You don't know where they're going to show up. Right. Right. And then if they see that, you know, things are going bad because that's neglect, that's abuse. Right. So you're going from one home where they want to protect you into another home where you're just getting neglected and abused again. Right. At least in my experience. Right. I can't say it for all of them, but that was my experience. Were you and your sister together? No, we were together at first

Starting point is 00:26:08 with one family. I don't remember the name, but we were with one family together first. And then my mom went to an all ladies facility and then my sister was able to go back to my mom. Oh, got it. Yeah. So she was there before you got back with them. Yeah. My mom, my sister was with my mom the whole time. Oh, wow. Yeah. My dad was in an all men's, um, facility as well, getting, you know, rehab and everything. Yeah. And then once they were better and they, they did everything they needed to do to prove to the state that they were better. We, we were put back with them. Nice, man. It's cool to see you break the cycle and, you know, get into wealth now. Yeah. Really cool. I love that. Uh, you have a quote, your why should make you cry. So I'm assuming it relates to this story. Yeah. It comes down to a few things. One is my son and my wife. Everything I do is for them.

Starting point is 00:26:51 And it used to be, I want to take care of my parents. I want to take care of my family. And that's still part of it. But once you have a child and you have someone like a spouse that has your back 100%, my wife and I've been through so much within business with outside of business and the whole time she's just been there. And the foster care side of it is a part of that. Why too, I want to make a huge impact in the system to where it's doesn't need to be so stressful for these parents. Cause I know they get underpaid by the state. So there's things that can be done for these foster parents. But the biggest part of my why really at the end of the day is making my son and my wife's life better. What my wife went through when she lived in Bosnia, and I'm grateful that she was able to make it over here.

Starting point is 00:27:33 I can't not do something in my life that's going to improve her life and improve my son's life, improve her parents' life and my parents' life and for generations to come. And so when you're really diving into why do you want to get into real estate? Why do you want to start a podcast? Why do you want to get into finance? It's got to be bigger than just money. It has to be. Because if it's just money, once you reach that pinnacle of the money you wanted, you're no longer going to want to do this anymore. And then everything you built, all the value you brought to other people is just going to go away. So you have to have a why that's ever evolving. Once you reach a goal So you have to have a why that's ever evolving.

Starting point is 00:28:08 Once you reach a goal, you got to have that why that's there to where it can push you past that to build another goal. So yeah, your why's, they've got to be bigger than just money. It's got to be bigger than objects and things because that fades. 100%. You reach a certain level of wealth and it doesn't even matter anymore how much more you make. Yep. 100%.

Starting point is 00:28:21 Yeah. So it's got to be way bigger than money and fame and all that other stuff. Absolutely. You view business competition very interesting. I'd love to hear you explain it. Yep. A hundred percent. Yeah. So it's gotta be way bigger than money and fame and all that other stuff. Absolutely. You view business competition. Very interesting. I'd love to hear you explain it. Yeah. Uh, I'm a competitive person at heart. Uh, we actually had a business meeting, uh, right before I came over here. And, um, the last thing we do is we talk about, you know, who's going to be the MVP of the group. Who's going to, who's going to take over and who's going to win. And, um, when you can put competition into business, but you got to do it the right way because there's a wrong way to do competition and there's a right way to do

Starting point is 00:28:49 competition. The wrong way is like, I'm going to take your firstborn. I'm going to burn your house down and I'm going to beat you to whatever the goal is. Right. That's the wrong way of doing it. The right way of doing it is let's collaborate. I'm still going to beat you. What are your goals? What do you want to accomplish? What do you want to get done? Let's run it together, but I'm going to beat you. And it's being communicative with somebody that you're competing with, right? It's like, Hey, we just made 10 grand. We just made 10 grand today. What did you make? And they go, we made three. Gotcha. Beat you. Right. Oh, but I'm gonna beat you next month or whatever it may be. So competition in business is more about collaborating with somebody to where you push them to get to their goals. But at that same time, you're pushing yourself to beat them still. Right. So competition in business nowadays, it's just evolved so much. And we use it in our business a lot around, you know, just you, if you get X, Y, Z done in your business this month, you qualify to go on a small trip. You get X, Y, Z done in this business. You have, you qualify to go do this with somebody or

Starting point is 00:29:49 one-on-one mentorship with me, something like that. And now you have a group competing for it. And those that didn't make it, now you have the bragging rights to go. I beat you. I got you. Right. And, um, usually it's on a football field or a soccer field or some type of sports arena, but when you can bring that same type of competitive spirit into business, it'll either help you excel or it won't. And those that aren't competitive, it comes down to a few things. One, they don't believe in their abilities or themselves enough that they can actually go compete and beat other people. That's usually the biggest one is self-belief. Or two, self-doubt.

Starting point is 00:30:22 You just doubt yourself way too much that you can't even compete. You just don't think you're going to be able to do it yeah and so when you can kind of get past the self-belief the self-doubt and start competing vocally and verbally and um publicly that's when you can start to have a different form of business and and it can it can actually create a business explosion i love that dude i'm so competitive i think i get it from sports yeah it's probably the best thing i took away from sports but but it helps so much in business. Instead of viewing people as enemies, I just view it as friendly competition. And you want to smoke them. Yeah. I want to smoke every single podcast, but in a good way. I don't want them to fail. I just want to beat them.

Starting point is 00:30:56 That's exactly the point. If you're competing with someone so much and you're like, I want to smoke you, but I still want you to go win. Let me know what I can do to help you and what I can do to support you. If there's any tips or tricks I can give you, let me know. Right. And when you help that person without anything, like not expecting anything back, but in your mind, you still go, I'm going to still smoke. I'm still going to beat you. Cause I know they're not going to take my advice. I know they're not going to do anything with this. That's when the competition starts to change and it starts to elevate and separate you from everybody else.

Starting point is 00:31:25 Yeah. Cause nobody else wants to help anybody. That's true. They just compete in silence and they don't want to help anybody. But when you compete out loud and you say, Hey, I'm here to help you though. Whatever you need,

Starting point is 00:31:34 let me know. Cause I want you to go win. I want you to do great for your family. I still want you to go have a great podcast. I'm just going to beat you though. I love that. It's just, it just makes it so much more fun,

Starting point is 00:31:44 more collaborative. And then if they go win too great, if they beat you to the goal, great, they, they beat you, but guess what? You're right behind them still. So did, did you really lose? Right? No, you're still chasing them, right? You still, you still hit your goal. It's like this. And my goal this year is to go make a million dollars a year. And your goal is to go make a million dollars a year. And I finished at 900 and you finished at a million. Did I, did I lose? No, no. I made 900 grand this year. Still. Who cares? You still win major million, but now next year it's on, let's do it again. Right now I'm going to go beat you to 2 million this year. Right. So it's just, it's really about being collaborative and

Starting point is 00:32:15 that competitive spirit makes business so much fun. Absolutely. Perspective. Matt, it's been fun. Where can people learn more about the insurance stuff and get your help? Yeah. So I have, I'm the money myth buster on Instagram and Tik TOK and on Facebook. So it's money.myth.buster. And that's where you can find a lot of my content. You can share it out there with anybody. You guys can reach out to me there as well, but those three main platforms where I'm at right now. Perfect. The link below. Thanks for coming on, man. Appreciate you. Yeah. Thanks for watching guys. See you next time.

Digital Social Hour - New Way to Secure Your Wealth: Trusts vs. Wills I Matthew Schloss DSH #509

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