27 Apr 2023 7:31 pm
Part 2
In order to escape WAGIE SLAVEY, you need a large net worth of investible cash (to buy bonds, real estate, stocks, whatever).
Aim for $5M - $10M minimum. This is the ultimate goal - cash flow from stocks, bonds, real estate, royalties, etc.
For example, $5M invested at 5% is $250K/yr ($170K after tax, maybe $150K if you live in California) - $10M invested at 5% is $500K/yr ($285K after tax, maybe $250K if you live in California).
(If you are not getting 5% cash flow pre-tax, your investment skills are trash)
The fastest way to work up to $5M - $10M is to make some kind of "business exit."
Business exits are much easier if you choose to BUY an existing, reliable small business with cash flow ~$250K. Starting a business is always harder because you need to work 80 hrs/week to make it happen (and nobody wants to work 80 hours/week - unless they are retarded or insane egomaniacs). But in order to purchase a cash-flow positive business, you need around $800K - $1.0M.
(Small business with cash flow ~$250K with employees/manager on deck has roughly 3x-4x P/E ratio)
You can do a 20-25% down payment with SBA + seller financing...hence why saving $200K - $250K is necessary.
The average startup CEO gets paid around $140K. After tax you should be able to save $100K minus living expenses.
If you have to resort to option B from Part 3, you might need to repeat this process at least 2x. (If you do not mess up terribly, 3x should be maximum # of attempts)
4. BUY an existing small business. Ideally cash flow ~$250K/yr with MANAGER/EMPLOYEES on deck. Verify seller's numbers by demanding last 3 years of tax returns.
(AVOID BUYING A RESTAURANT LIKE THE PLAGUE - buy something that will always be in demand like senior care, pet services, auto shop, cleaning business, whatever. Online businesses are good, but you need to understand SEO + digital marketing)
There are many courses/books on BUYING a legit small business. Make sure you do your research/reading.
At this point, all you need to do is not **** up greatly, make minor changes, and let YOUR wagie slaveys (yes, that includes the manager) do the work FOR YOU.
Many small business owners who already have managers + employees on deck only work 5-20 hrs/week. So not only is the pay better but you don't need to work 40-60 hours/week!!~
5. (Optional) Accelerate your retirement by acquisitions
Many small business owners do well but are unaware of a simple tool they can exploit so they can retire at 35, 40, or 45 instead of 50 or 60...which is to mop up other players.
This is especially true when, for example, the government uses a scamdemic to shut down everyone (except big players like Target/Costco/Amazon). If you manage your business' finances RESPONSIBLY, you can "buy up" other players when their businesses "get distressed." That $250K/yr can become $500K/yr if you do a couple of purchases with large seller financing deals (the BANKERS are parasites so avoid them as much as possible).
6. (FINAL STEP)
SELL your business(es).
Congratulations, you now have $5M-$10M. If you are exceptionally talented, you may as well have $15M or more.
Now depending on your performance as well as luck (some people get bad luck unfortunately - contrary to retarded Boomers' creeds, luck plays a pretty big role in EVERYONE's lives), steps #1 - #5 can take anywhere from 10 - 15 years. Maybe 20 years if you have multiple hiccups along the way.
But a 25 yr old Zoomer starting out...they can very likely retire around 35-40 years old. 45 if they get unlucky. Which is STILL BETTER than WAGIE SLAVEY!
In order to escape WAGIE SLAVEY, you need a large net worth of investible cash (to buy bonds, real estate, stocks, whatever).
Aim for $5M - $10M minimum. This is the ultimate goal - cash flow from stocks, bonds, real estate, royalties, etc.
For example, $5M invested at 5% is $250K/yr ($170K after tax, maybe $150K if you live in California) - $10M invested at 5% is $500K/yr ($285K after tax, maybe $250K if you live in California).
(If you are not getting 5% cash flow pre-tax, your investment skills are trash)
The fastest way to work up to $5M - $10M is to make some kind of "business exit."
Business exits are much easier if you choose to BUY an existing, reliable small business with cash flow ~$250K. Starting a business is always harder because you need to work 80 hrs/week to make it happen (and nobody wants to work 80 hours/week - unless they are retarded or insane egomaniacs). But in order to purchase a cash-flow positive business, you need around $800K - $1.0M.
(Small business with cash flow ~$250K with employees/manager on deck has roughly 3x-4x P/E ratio)
You can do a 20-25% down payment with SBA + seller financing...hence why saving $200K - $250K is necessary.
The average startup CEO gets paid around $140K. After tax you should be able to save $100K minus living expenses.
If you have to resort to option B from Part 3, you might need to repeat this process at least 2x. (If you do not mess up terribly, 3x should be maximum # of attempts)
4. BUY an existing small business. Ideally cash flow ~$250K/yr with MANAGER/EMPLOYEES on deck. Verify seller's numbers by demanding last 3 years of tax returns.
(AVOID BUYING A RESTAURANT LIKE THE PLAGUE - buy something that will always be in demand like senior care, pet services, auto shop, cleaning business, whatever. Online businesses are good, but you need to understand SEO + digital marketing)
There are many courses/books on BUYING a legit small business. Make sure you do your research/reading.
At this point, all you need to do is not **** up greatly, make minor changes, and let YOUR wagie slaveys (yes, that includes the manager) do the work FOR YOU.
Many small business owners who already have managers + employees on deck only work 5-20 hrs/week. So not only is the pay better but you don't need to work 40-60 hours/week!!~
5. (Optional) Accelerate your retirement by acquisitions
Many small business owners do well but are unaware of a simple tool they can exploit so they can retire at 35, 40, or 45 instead of 50 or 60...which is to mop up other players.
This is especially true when, for example, the government uses a scamdemic to shut down everyone (except big players like Target/Costco/Amazon). If you manage your business' finances RESPONSIBLY, you can "buy up" other players when their businesses "get distressed." That $250K/yr can become $500K/yr if you do a couple of purchases with large seller financing deals (the BANKERS are parasites so avoid them as much as possible).
6. (FINAL STEP)
SELL your business(es).
Congratulations, you now have $5M-$10M. If you are exceptionally talented, you may as well have $15M or more.
Now depending on your performance as well as luck (some people get bad luck unfortunately - contrary to retarded Boomers' creeds, luck plays a pretty big role in EVERYONE's lives), steps #1 - #5 can take anywhere from 10 - 15 years. Maybe 20 years if you have multiple hiccups along the way.
But a 25 yr old Zoomer starting out...they can very likely retire around 35-40 years old. 45 if they get unlucky. Which is STILL BETTER than WAGIE SLAVEY!