On this episode, Matt is not talking about boring ol’ retirement; he’s talking about how to retire early! Now that’s exciting! However, unless the world’s population is open to a significant paradigm shift around how they view money and building wealth, very few will be ever be able to retire early if they ever get to retire at all. In a rare rant, Matt jumps up on his soapbox and stomps on the sacred cows that so many hold near and dear to their hearts.
If you know what you’re doing isn’t working, or isn’t working as well as you’d like, this could be one of the most important episodes of the Your Do Over show ever as it pertains to your financial future. However, if you’re on track to enjoy the type of life you want when you want to enjoy it. Feel free to skip this episode and meet back up with Matt on Episode 57.
Download The 3 Pillars of Creating the Ultimate “Do Over” at FreeDoOver.com.
Referenced at the top of the show, CashFlowSavvy.com. Matt briefly shared his “guaranteed cash flow” real estate program and the new “no banks involved” financing now available. If this sounds like something that you want to learn more about, download an investor’s package with all the details at CashFlowSavvy.com.
Matthew Theriault: Hey, this is Matt, “The Do Over Guy,” and the time is now for your Do Over and it’s Episode 56.
Announcer: During an era where countless people, businesses, and organizations are feeling the pinch, running out of time, running out of money, losing confidence, feeling as if life is unfair, praying for another chance and unless something is done, life is going to pass them by. Life is going to pass them by.
Fortunately, in the nick of time, there is now a place where the ignored, underestimated and unknown steps to producing results and making life work are revealed. Save your career. Save your business. Save your health. Save your relationships. Save your life. Get from where you are to where you want to be, faster and with greater ease than you ever thought possible. Say, “Hello!” to Your Do Over.
Matt: Welcome to Your Do Over, the place where I show people who want more out of life. I show people dissatisfied with their current situation. I show people who are sick and tired of being sick and tired or, you know people that are cool with life but just want a little more out of it. I mean this is the place where I show them all how to start over and begin a new life setting goals and objectives so that they can create wealth, create financial freedom, create the lives of their dreams, and they can live that life to the fullest.
You can get your do over started fast by laying a solid foundation. Everything needs a good foundation for it to last. You can do that when you download the Three Pillars of creating the ultimate Do Over for free at FreeDoOver.com. It’s a 55-minute mp3 audio program that I made just for you with three specific steps on how to get success as you start over and it’s yours for free at FreeDoOver.com.
Okay. So before we get on with today’s show, I got a quick announcement. Awhile back, I mean awhile back; I had an episode discussing passive income I think. I don’t remember which episode actually was but it was one of the earlier ones, very early in the show’s story. I mentioned how it was easy to find investments of $10,000 that would pay you $200 a month in passive income.
At that time when I broadcast that show, it was very easy to do. I actually forgot all about having said it really. The funny thing within the last three to four months, I probably have a dozen inquiries on that old episode.
I’m not sure what that says about what’s going on the market or the economy or maybe the listenership is just broadening. It’s increasing to a point where there’s just more listeners so we get more response. I mean whatever it means.
I haven’t had any strong leads on investments with those types of returns on such a small investment however. They kind of evaporated actually rather quickly until just recently. I’ve put together a program for some of my real estate investing clients that produce pretty close to that ratio. It gives that similar return and takes a little bit more to get into the deal, essentially double the entry so it’s not $10,000. It’s going to be bought around between $20,000 and $25,000 but also doubles the return. So you’re probably going to be looking at anywhere from $300 to $500 monthly cash flow so very comparable just a little bit higher entry level. But I’m not going to take up any time with the details here but just thought this was the easiest way to get the message out to everybody about this since there’s been a recent influx of inquiries.
I’ve imagine there’s probably others out there that were thinking the same thing that haven’t had the opportunity to send me a message so I just thought to broadcast it here. Okay? So you can go to CashFlowSavvy.com to get the details. CashFlowSavvy, s-a-v-v-y.com to get the details of –.
If that sounds like something you would want to learn more about. Okay? So go to CashFlowSavvy.com. We’ll be done with the real estate talk for the show. All right?
So with today’s episode, today’s episode is How To Retire Early. If you want to retire early, I’m going to tell you right now. It’s going to take a major paradigm shift on your part. You’re going to have to open up your mind. You’re going to have to let me stomp all over. Everything about money and investing that you hold near and dear to your heart. I mean if you’re open to that, I think there’s a lot for you to get out of this episode but if you’re not. If you know you’re stuck on your ways and you’re going to ride out the plan that your financial planner laid down for you, you’re probably going to hate this episode.
You know, I won’t be offended if you turn this off. If you skipped this episode and just rejoined me on Episode 57. That would be 100% okay with me. All right? So you’ve been warned.
Now what has inspired today’s episode was, I haven’t visited iTunes to read any of my reviews. I was really blown away; humbled is another word for it. I mean some of the things that you have to say about me, about this show, and what the show has done for you in your life. Humbling to say the least. I mean it’s difficult to grasp that you’re actually speaking about me when I read your reviews.
So before I go off on my rant, I want you to know how I am for sharing your thoughts and comments with me and sharing those comments publicly. You’ve just been very generous with your comments. You have no idea how much it has touched so thank you very much.
Now during this same trip to iTunes when I was reading the reviews, I also checked the iTunes podcast charts. I just wanted to see, you know, what are people listening to? Who is at the top? You know, selfishly, I was actually very interested in where I ranked in the charts as well.
But you know, some of the names that I saw sitting right on the top, they just totally blew me away. I mean I had no idea. It’s these podcast hosts and what they preach that has inspired today’s episode.
Now I don’t do this very often, if I’ve really, I don’t know, if I’ve really done it at all but I know I wont be able to help myself meaning I won’t be able to avoid getting up on m soap box here and unleashing the ballistics.
When I was in the music industry, we call it “kicking the ballistics.” Let someone have it. And I won’t mention any names. I mean no need to. They’re all pretty much household names. You’re probably going to figure out anyway so they shall be nameless. If you haven’t guessed, you know, how to retire early. This is a money episode. It’s a creating wealth episode. It’s about getting rich. It’s about achieving financial freedom. Whatever label you want to put on, today I’m going to wrap it up in a neat, little package. I’m going to call it “how to retire early.”
Now astonishingly to me, some of these podcasters, they’ve had some, they have some of the highest rated shows on iTunes. Not just in their category but overall podcasts. And it’s this theme that they all have in common.
You see, there’s this trend of promoting get rich slow. You know, it only makes sense this would be the case given the huge financial crisis that we’ve experienced recently. And depending on where you are and what you’re doing right now, I mean you may still be experiencing it. If you are, no worries, this too shall pass. And the best is yet to come. Just don’t roll over and surrender. Don’t throw up the white flag just yet. You will pull through. I mean you always do. Right?
I mean aren’t there times in your past where you felt maybe just as depressed or even more or desperate or helpless or hopeless? Of course you can. You can think of moments of like that in your past.
And here you are. You pulled through. Didn’t you? Well, this is just like that. This too shall pass and the best is yet to come for you. I mean there’s a favorite quote of mine. I think it was Winston Churchill. He said, if you are going through hell, keep going. See, stopping is the worst thing you can do. You’re going to get burned up actually so don’t stop. Just keep moving and this too shall pass. I promise. Okay?
All right. So during the first half of 2000 when, you know, money seems just falling from the sky. Everyone was throwing it around like the supply would never end. I mean there’s just this ever supply of money. It seems like. Here we are today. We’re the people who have money left are holding to it with a real tight grip. Right?
I mean it’s easy for the financial experts. I did that little thing with my hands up in the air. The air quote. “Experts” to look back and say, I told you so because they’re saying it. They’re saying it loud it and clear. We told you so. We told you not to do that. You should’ve stuck to good, old fashioned values and get rich slow programs just like your grandparents did and their grandparents and their grandparents. Get rich quick is a scam. Don’t you know that? That’s what they’re saying. Right?
Well I’m here today to suggest, get rich slow is an even bigger scam. Here’s why. See, if you want to create wealth and creating wealth slowly is your strategy. Here’s the truth. You got better odds at Vegas. Not only do you have better odds in Vegas, you got less to lose. You see, Vegas may take your money but creating wealth slowly can take your money and your life.
I mean, seriously, you’re going to tell me the guy that drives the peach Lamborghini around town and parks it on his garage of his Oceanfront mansion created his wealth investing in stocks, bonds, and mutual funds or brown bagged his lunch to work everyday to save some pennies. Or he clipped coupons and he refrain from the daily Mocha Frappucino just to get that peach Lamborghini? [laughs]
No. Right? Then why don’t we accept frugality, investing in mutual funds, and coupon clipping, and eliminating our daily Starbucks? Why don’t we accept that type of advice from the “experts” as the path that leads to wealth and happiness? I mean where’s the 20 something that created wealth clipping coupons? Where’s the girl who created wealth in three years by setting aside 10% of her paycheck? Oh, where’s that 27-year old woman who retired after four years from maxing out her 401k? Can you introduce me to any of these people? Let me answer that for you. No. You can’t because they don’t exist. These are stories of pure fiction. However, the vast majority of the population embraces these ideas and strategies promoted by the get rich slow gurus for creating wealth.
I mean the planet in its entirety looks like this: go to school, get good grades, get a good job, and work there for 50 some odd years, set aside 10% of your paycheck, clip coupons, max out your 401k, buy a house, pay the house off. Right? You got to pay the house off. Cut off your credit card then one day right around the age of 70 or so, you will finally be blessed with financial freedom.
Oh, and if you live super frugally, you do it right with real focus and that dollar cost average thing pans out for you. You might even arrive a decade earlier. Waiting until 60, aged 60 to enjoy your financial freedom that sounds fantastic. Doesn’t it?
Not! [laughs] What should absolutely terrify you is what if that mutual fund did not perform in the way your “financial planner” said it would? Again, I did financial planner with those little air quotes. What are you going to do if it didn’t perform in a way that he promised?
I mean what are your options in age 70? It’s not like you can go back and do over. Is it? I mean at least Vegas, I mean they only rob you of your money and it might steal a weekend from you. Creating wealth slowly will rob you of the best years of your life.
Not convinced? Ask the 97% of today’s 65-year olds that don’t have enough discretionary income to write a $600 check. 65 years old. They’ve been working their entire life following this madness. They don’t have enough discretionary income to write a $600 check. 97%. That’s not my statistics. That’s the government’s statistics. It’s not my opinion. It’s the numbers.
You know, considering today’s turbulent and volatile economy. It’s staggering that anyone still subscribe to these creating wealth slowly strategies. Face it. To create wealth slowly, you must sacrifice your today and your dream for an idea that doesn’t pay off if it ever does until the glory days of your life are behind you.
I’m going to sum it up. I’m going to give it you straight. If your Do Over or life for that matter even, or even your first time around for that matter consists of creating wealth following a plan that consumes the best and most active years of your life without a guarantee. I am terrified for you.
But if that is indeed your plan and you’re sticking to it, how could I blame you? I mean it’s then ingrained in our psyche for generations. What’s worse is that there’s a respected and growing crew of gurus advocating this plan. They’re flooding the airwaves with it: radio, TV, and podcasts.
They’re among the top rated podcasts on iTunes, the most popular music distribution service in the entire world. This crew is growing is because they have a secret. I actually have two secrets. They know you’ll pick up what they’re putting down because of the current state of the economy. It just seems good sense right now. They’re second secret is they know what they teach will not create wealth but selling it does.
See, they’re making a killing by pedaling this stuff. And they maybe practice what they preach. They might be invested in stocks and bonds and mutual funds. I mean much of what they preach can preserve wealth but it will not create it but selling it will.
It may create the wealth but not at any point where you are going to be able to enjoy it. So what’s the answer?
I mean you do have to invest in something. Right? I mean exchanging time for dollars is not going to create your wealth either so if that won’t do it. The gurus recommendations aren’t going to do it, what do you invest in? How do you invest? Do you know how to invest? Do you have an investing goal at least?
My grandmother has one. I mean she praise every month when she receives her statement that it’s not too much smaller than last month. That’s her investing strategy. Don’t get small too fast. Don’t reduce in size. I don’t want to lose money too fast.
It’s not joke. That’s what she told me. In fact, a couple of years ago, some of her stocks, they took a big hit. I think two or three years ago like collectively together they lost 40% of their value. I said, Grandma, you should pick up some rental real estate and create an income for yourself. She said, Oh no, dear. That’s too risky. Real estate is risky. At my mind I was like, I didn’t say this to her, but in my mind, are you serious?
You used to lost 40% in 6 months in a stock market and real estate is risky? I mean most people don’t even see their statements as money. It’s just a statement just numbers on a page. They don’t even treat their savings or their investments and their retirement accounts like money. They act as if they have no control over what happens to them. It’s insane. It’s real money. If you’re getting statements, it’s real money. It is your money. And you can do it what you please. You have so much more control and power over your finances than you choose to declare, than you choose to open up your eyes and recognize. Do you get that?
You choose not to control your money. You make that choice. You turn it over to someone else hoping they know what they’re doing. I mean it’s amazing how important financial freedom. Everybody will say that it is to them. But they’re financially ignorant. It’s so important that they don’t know anything about it. They have no idea what to do with the financial resources they have to create financial freedom nor do they bother to investigate and learn what to do but it’s so important to them.
I got news for you. No. It’s not. It’s not important to you at all. You’d rather complain than do something about it. There’s a bigger pay off in complaining about it than actually achieving it. Painful, huh?
I mean if it wasn’t, you wouldn’t complain about it. You do something about it. Right? So what’s your investing goal? What is your investing goal? If you don’t have one, now is the time to make one. Okay?
What is your investing goal? Well unless you state a number in the form of a monthly residual income, you are confused. You are trapped. You are stuck. And here’s why. You see you and I were raised on a financial philosophy. So insane and so backwards that it is guaranteed to fail. Ironically, this financial philosophy that fails without fail is called “security.” Security. Just want to be secured. Right?
It’s called “security.” I know. Totally bizarre. Isn’t it? You want it so bad. You dream about it. You work hard for it and the pursuit of it is the financial death of you and your dreams. Think about it.
To achieve security is to have no debt while accumulating piles of money and accounts like 401k and IRAs and annuities and stocks and bonds and mutual funds. I mean this security thing is all about work, work, work and save, save, save. It’s an accumulation mindset that you’ve been taught as the mindset that will lead you to security.
I got news for you. Security doesn’t work. Here’s why. First, it doesn’t work because you cannot retire on no debt. You can’t retire on no debt. I mean the revered and elusive status of no debt produces zero income. Your personal residence, supposedly your single greatest investment in life, that’s what the get rich slow gurus would tell you. They’ll advise you to actually pay it off as soon as you can.
Get a 15-year mortgage. They’ll say. So you struggle every month to pay it up. You take their advice. You struggle and then once you get it paid off if you ever actually do, let’s just say that you do. Yes. It’s paid off but now what?
It doesn’t pay you a thing. What do you do now? You cannot experience any sort of security by just being debt free. Second, the piles of money that you’ve toiled over for years to accumulate. They haven’t paid you a thing either. Nothing. Your 401k after all these years have paid you nothing. Your RIA has paid you nothing. Your stocks and mutual funds paid you nothing if they haven’t shrunk or virtually evaporated all together.
Investments per the definition are supposed to pay you back. They’re supposed to pay you. But my grandma was like, I hope it doesn’t get any smaller next month. You’re paying them. They’re supposed to pay you yet these investments that you are told to put your money in have yet to pay you a thing.
So here’s the deal, the financial philosophy that has been ingrained in our psyche sense as long as any of us can really remember is based on a philosophy called someday. Someday. Someday you will be secured. Someday you will be financially free. Someday you will get to retire. Someday you will be secure. Someday you will be financially free. Someday you will get to retire. Someday you will get to travel. Someday you will get to do what you want to do when you want to do it. Someday. Someday. Someday.
I want you to work, work, work, save, save, save during the most productive years of your life and someday you get to enjoy it. The philosophy of someday should absolutely terrify you.
It should terrify you because you never get to live when life is actually happening right now. You know from the beginning, you are told to continue working. You were told to live frugally. You are told to pay off debt. You are told to save and save some more. You were told to do all of these things while never benefiting from your piles of money or you have paid off anything.
I mean to ever experience a true benefit from any of your piles or paid off debts. You must consume it. You save it then you consume it then it’s gone. You have no idea how to make it work for you. You have no idea how to make it work so that it creates your wealth for you, how to put it to work so it outworks you at your job. You don’t know how to invest. It’s not your fault though. I’m not blaming you. I’m not mad at you. It’s not your fault. You were taught how. You were never how to invest. You were told how to invest. It means gurus at the top of the iTunes charts are still telling you today. You were never taught how to invest. You were told how. You were told to entrust your money with Human Resources at your job. Hopefully that clerk in the Human Resources department, one of the lowest paid positions in the entire company, you were told to entrust your money with that person. Hopefully they put it in the right fund for you.
Or you’re told to send your money to a financial planner with the hopes that they know how to invest. By the way, financial planners are not financially educated. They are sales trained. If you’re a financial planner right now, it may hurt. You may disagree with me but you know it’s true.
Financial planners are incentivized to sell you some of the worst performing investments available because those investments pay their biggest commissions. Even if they do know how to invest, even if the financial planners are financially educated. It is not in their best interests. It’s not in the best interests of their own financial freedom to invest your money the best way that they know how.
Good investing on your part does not consists of you sending your money to somebody else every month. Good investing consists of getting somebody else to send their money to you every month. That’s the difference. That’s what we call a residual income mindset. That’s the road to financial freedom.
You know, financial freedom is a concept thrown around pretty loosely. It’s used in all and all sorts of contexts but what is it actually? Financial freedom, it includes security. I’m not saying it’s wrong. It includes security but it far surpasses it.
Financial freedom is liberation. I mean if security is having no debt and financial freedom is having residual income each and every month that is automatic. That is the goal of investing. It is to produce enough residual income to each and every month that gives you to freedom to truly be at choice to do what you want, when you want, with whom you want, where you want. And your paid off personal residence will never provide that for you.
So who would you choose to be? What would you choose to do each and every day with your life if money were of no concern? If there was a residual income coming in to your mailbox on say, the 1st and the 15th? Who would choose to be? What would you choose to do each and every day with your life?
So the first step in learning how to invest and move towards financial freedom is to stop the insanity of the save, save, save to someday to consume mindset. Stop that. Drop the accumulation mindset. The second step is to begin putting every dollar that you make into something that produces and pays you each and every month. Adopt the residual income mindset. That is the road to financial freedom. That’s the road you got to travel.
Well if you want financial freedom of course. You don’t have to do anything but that is how to invest and that is how to retire early. Exchange security for freedom in your financial vocabulary, that alone, that one small word “exchange” will start to transform how you think about your finances, how you think about your future. If you transform your thoughts, your emotions will transform of which will transform your actions.
That’s the key. I mean if you continue to do what you’re doing, what you’ve always done, what your parents did, with the get rich slow gurus are telling you to do, you are going to get correlate results. I mean the best case scenario is you do achieve security under that get rich slow philosophy but you will be 60 something at best before you ever get to actually enjoy the benefits of it.
No thank you. Not for me. By dropping the accumulation mindset and adopting the residual income mindset, you can accomplish in five years conservatively, five years conservatively what 99% of the country is unable to do in 50 years.
You can accomplish in five years conservatively what 99% of the country is unable to do in 50 years. Then that 99% is not a statistic I just made up. I did not just pulled out of the air. I did not use it. It’s not hyperbole. I did not use that. I did not exaggerate for effect. That is a government statistic.
What if I’m off by a year or two? What if it actually takes you 7 years? Are you still not 30 or 40 something? Or if you’re 50 right now, isn’t that good news that you can actually catch up just by shifting your mindset?
If you’re 30 or 40 something, aren’t you still young enough to thoroughly enjoy the freedom that you created for yourself? What if you make a few mistakes along the way? Is there not still plenty of time to put the ship back on course? Of course there is. What if you make a mistake in that get rich slow plan? What if you make a mistake there?
You’re likely won’t even realize you made a mistake until you’re 50 or 60 years old. And then what?
You got to put that ship back on course with the same philosophy and delayed retirement until you’re 80? No. You have to adopt the residual income mindset anyway. Right? So think residual income and financial freedom will be yours in a fraction of time that the path your get rich slow gurus are promoting. They figured it out.
Regardless of what they’re preaching, they have the residual income mindset. They’re not preaching it but they have it. They understand TV royalties. They understand book royalties. They understand real estate investing. They understand licensing. They get it. That’s how they’re going to retire early.
By creating a residual income from the get rich slow: work, work, work, save, save, save, accumulate, accumulate, and accumulate, someday, someday, someday teachings. That’s how they’re creating their residual income by teaching you that and selling it to you.
Doesn’t it just chap your hide? It flat out pisses me off. But hey, we all get to pick our battles. Right? For some reason though, I don’t feel like I pick this one. I feel like it picked me. You see, this podcast and everything it stands for is a gift for all who are willing to receive. It’s a gift intended to shift your mindset from security to freedom, to shift your being from consumer to producer, and to transform your life from imprisoned to liberated.
It’s about seizing the life you have left and living it to the absolute fullest because once it’s gone, it’s gone. Adopt the residual income mindset and retire early with me while we’re still young enough to thoroughly enjoy it.
God loves you and so do I. I am Matt, the Do Over guy. I will see you on the next episode of Your Do Over.
Thank you for tuning in Your Do Over where the ignored, underestimated, and unknown steps to producing results and making life work are revealed. Remember, knowledge is potential power. Take action on what you learned today. This is not your learn over. It’s your Do Over. To view the resources, reference in today’s show and to retrieve the complete show transcript. Visit www.TheDoOverGuy.com. Stay connected with Matt “Do Over Guy” Theriault on Twitter at the Do Over Guy and on FaceBook at www.facebook.com/DoOverGuru.