Steps to Generate Tax-Free Wealth

How to Generate Tax-Free Wealth

In this episode of Startup Hustle, Matt Watson and Dr. Thaddeus Gala, Founder of The Guardians Alliance, talk about how to generate tax-free wealth.

Covered In This Episode

We all want to be rich, but the reality of taxes taking a big slice from our income looms menacingly above our heads. Is there a way where we can increase our wealth without the tax burden?

That’s a valid question that our guest for today’s episode, Dr. Thaddeus Gala, can answer. He’s a doctor, wealth expert, and the founder of The Guardian Alliance, a retreat community of wealth-minded individuals. He shares his tips to shave off some of the taxes from your income. These are the topics Matt Watson and Dr. Gala talked about:

Get Started with Full Scale
  • Rule of 6 when computing for the tax benefits
  • Tips to lower your taxes
  • How loans help taxpayers get tax credits
  • Other tax strategies for different types of investments
  • Benefits of joining The Guardians Annual Retreat 
Startup Hustle Podcast Is Now Available for Entrepreneurs

Highlights

  • How to save on taxes? (1:10)
  • Thaddeus Gala’s career background (2:43)
  • Don’t pay any more taxes than legally required (5:31)
  • Rule of 6 (7:18)
  • How to take advantage of these tax benefits? (8:30)
  • Tax Bracket according to income (13:57)
  • Investment Account (17:36)
  • Does this work also on spouses? (18:38)
  • Borrowing money against appreciating assets (20:34)
  • Tax strategies on stock investments (26:20)
  • Arbitrage Play (29:30)
  • Time value of money (33:47)
  • Strategies used by high net-worth individuals (34:39)
  • How much people should make before considering tax-free strategies (37:31)
  • Right timing (40:06)
  • Guardian Alliance Annual Retreat (43:11)
  • Side topic – Cryptocurrencies and NFTs (48:52)
  • Dr. Gala’s natural healthcare involvement (50:35)

Key Quotes

People need to truly recognize, embody and embrace two things. One, wealthy people don’t pay taxes because they figured out the game. Two, I use the Rule of 6, meaning, for every dollar you save in taxes, for the average business, that’s equivalent to six dollars in top-line revenue.

– Dr. Thaddeus Gala

Wealthy people understand this concept. They understand that borrowing money against appreciating assets is tax-free.

– Dr. Thaddeus Gala

When you look at the time value, you got to think, I know it sounds weird, but $2 million in 10 years, when you look at inflation eating away at it, it’ll only be worth about $1.2 million because time and inflation make debt obsolete. So, loans and debt eventually reach zero if given enough time.

– Dr. Thaddeus Gala

Rough Transcript

The following is an auto-generated text transcript of this episode.

00:00.00

Matt Watson

And we’re back for another episode of the startup Hustle Podcast. This is Matt Watson your host of the day. Today we are here with Thaddeus Gala he’s going to talk to us all about how to save money on our taxes as an entrepreneur I am definitely interested in how to grow my wealth while reducing my tax burden. Um, before we jump into that I do want to remind everybody that today’s episode of Startup Hustle is sponsored by fullscale.io, helping you build software teams quickly and affordably so Thaddeus tell us all about how to save money on our taxes because as a guy who sold a couple of startups. And I own Full Scale and you know it’s doing great. We’re making money you know as an entrepreneur one thing I’m always thinking about is how not to pay taxes I know the first thing you’re thinking is like well if you just don’t make any money you don’t pay any taxes but that’s not really the goal.

00:48.33

Dr. Thaddeus Gala

Yeah, we don’t want to do that? Yeah, I’ve had a lot of people that I’ve talked to they say you know what that is I’m a millionaire but I don’t feel like a millionaire because I’m working my ass off and they hit that. That magical gross income of a million dollars I don’t realize that you know maybe they’re left over with 250000 and then after that maybe they’re left over with you know 150000? So when we look at it first off, it’s really I think people need to truly recognize and embody and embrace the fact that 2 things number 1 wealthy people don’t pay taxes because they’ve figured out the game and then number 2 for every dollar that you save in taxes for the average business I use the rule of 6 meaning that for every dollar you save in taxes. That’s the equivalent of $6 top-line revenue if you assume about a 25% profit margin and 35% tax bracket for every dollar you save. So if you save someone $100000 in taxes that’s equivalent to 600000 top-line revenue. So for the average business if you can eliminate taxes. You’ve essentially just added 54% to their topline revenue. Immediately within a couple of hours.

02:02.94

Matt Watson

So before we get into some ways to do all of this which I’m super excited about um, give us more about your background and what you do and how you got into this how do you know all these secrets that you’re going to share with us today.

02:16.60

Dr. Thaddeus Gala

Yeah, you know I have two careers one was healthcare care. The doctors said my mom would be in a wheelchair rest for life when I was a kid and so I went down the path of natural health care trying to prove the doctors wrong mostly because I wanted to see my mom’s life. Fast forward. You know she was in full disability and couldn’t use her arms. Now. She’s in her seventy s she just started running and winning 5 key races. She’s my longest success case. She’s off all of her medications and she’s you know more vibrant now than she was. She even says in her 40s or 50s and what happened was I was working my ass off in the clinic trying to get the clinics going. You know this was years ago. And when I finally started making money I got a letter from my CPA and said I called them up I said wait, you’re telling me I owe a quarter-million dollars in taxes he said yep I said but I only have 30 grand in the bank account I’m working 12 hour days I’m destroying my health to try to get this business off the ground and you know this was right around 2008 2009 so on the tail of the. Housing marker crisis I was building at Brent My First brand new clinic trying to make a go of it and I was working my ass off and he said well you know, death and taxes, and I kind of this light bulb went off I thought well wait a minute if all the doctors said nothing could be done for my mom and now she’s running and winning five k races. Maybe there’s something about this tax thing that started me on my second career path. Of really understanding the tax game and really diving in selfishly for myself to scratch that own itch as most entrepreneurs do and then realizing. Okay if I can do this then then then anyone can do this and so it’s really understanding the habits and the and the strategies of the wealthy and then just implementing those various strategies. And teaching entrepreneurs how to do that.

03:49.59

Matt Watson

So do you have any background yourself formally in like accounting or any of that kind of stuff?

03:54.65

Dr. Thaddeus Gala

0 formal a hundred percent 0 formal or in informal training and scratch my own itch.

04:04.10

Matt Watson

Well I mean you know some people would say well paying I don’t mind paying taxes because that means I made a lot of money which sounds okay I guess but um, you know I So I sold a company before and wrote.

04:13.43

Dr. Thaddeus Gala

Yeah, that one hurts my heart.

04:23.75

Matt Watson

You know a 7-figure checked Uncle Sam you know and it hurts to think about wow and I’m sending millions of dollars to the government in taxes like is this crazy.

04:24.43

Dr. Thaddeus Gala

Um, yeah, yeah, if I really wish we would have met before you did that because you would have yeah, you’d be in a much better spot I always tell people to look. If you know you make a lot of money and you keep your taxes but look if you really want to pay the tax that much just write them an extra check you know, just write them an extra check and give it to them and just do that if if you really want to otherwise you know the IRS makes it very clear and I’ve talked to a lot of former Irs auditing agents and so forth and. You know about our strategies and so forth to get them. You know, signed off and you know fire-hardened and you know they say look the Irs fully tells people you’re not required to pay any more taxes than the code legally requires you to pay. So if you can use all of the strategies that are out there that are legal and compliant There’s nothing wrong with that. A lot of people think oh well gosh I have to pay some taxes. Well, why I mean you, you know it’s 2 things 1 is an ah just a mathematical equation of do you actually have to pay taxes or not right? That’s what we do every single day when we’re calculating what we have to pay and then number 2 is the moral aspect of it and again I say. If you think that the government is doing a great job with your money and how they spend their money then great then write them an extra check I don’t think our government does that great job. So I’m gonna use every available tax writeoff deduction credit that I can to limit my taxes because I really believe that if you can keep that money in the hands and the pockets of an entrepreneur. They’re gonna create. Likely more jobs. It’s going to go to solving more problems creating more products and services and you’re gonna be able to better take care of your family and your team and make a better impact in the world and you’re gonna monitor how those dollars are spent much more than a nameless faceless bureaucratic organization. But that’s just me other people might not feel that same way.

06:08.30

Matt Watson

Well and and and people don’t think about when they go to buy something like if I go to the store and I want to buy something for a hundred dollars it doesn’t really cost me a hundred dollars it actually potentially cost me 120 or one hundred and thirty dollars in pre-tax wages right? like if I had to go to work.

06:23.28

Dr. Thaddeus Gala

Right? right? right? like.

06:26.71

Matt Watson

And make money I actually had to make like one ah hundred and twenty hundred and thirty dollars or whatever before taxes and people don’t think about it that way and then you pay self taxes on top of it.

06:30.77

Dr. Thaddeus Gala

Yeah, well will likely even more than that but likely even ah hundred percent a hundred yeah absolutely I mean here’s the thing that you think about it’s like when you go buy if you use after-tax dollars and let’s say that you go buy a hundred dollars let’s say the worth of groceries right? You got to think again. That’s the rule of 6 that if you’re the average if you’re an average business that’s doing has a 25% profit margin and has a 35% tax bracket if you spend a hundred dollars on groceries. You had to generate $600 of revenue on the top line to get that $100 to be able to pay for those groceries. So anytime you can save money in your taxes or use pre-tax dollars. You’re so far ahead of the game because if I came to you and said you know matt I’m gonna increase your top-line revenue by 54% in you give me 2 hours I’m gonna map everything out for you. You. You know, guaranteed you know or you don’t pay anything kind of you to know to offer you know it’d be a no brainer to listen to that. But for some reason when it comes to taxes people just you know they’d rather jam a screwdriver in their ear than even talk about the subject for some reason because they just are so focused on their widget. On the front end that they don’t take the time to really learn the process in the backend.

07:42.95

Matt Watson

Well, what I really get sick of is puking when I watch Congress spend all our money on all sorts of dumb shit. So um, so let’s get into this. Do you know how? um, how can people take advantage of this who can take advantage of it is It just certain types of people or let’s.

07:49.81

Dr. Thaddeus Gala

Ah, ah, right, let’s do it. Yeah, great question. So so let’s talk about the 2 big buckets right? The 2 big buckets are either. You’re employed or you’re or you’re an employee I mean those are 2 2 big ways that you can do obviously you can also be an investor and just get you to know Um, you know.

08:02.42

Matt Watson

Let’s get into it I’m really interested to learn more.

08:17.38

Dr. Thaddeus Gala

Income from your investments and so forth. So but by and large you’re either. You’re either an employee or an employer and so looking at from that that it’s a little bit different depends on what your structure is but let’s just start with the business owner if you’re because that’s a little that’s a lot simpler business owner right? It’s a really simple process you want to zero out your income. And people think okay well that does that sound great, right? but just stay with me for a second that number 1 thing is you want to zero out your income because that’s what you’re being taxed on and within there. There are a lot of different little algorithms and different turns in the paths to that. So. The first thing that I tell people to do is to number 1 if their CPA and their firm haven’t already helped them 0 out their taxes. They need to find a new CPA period. It’s really that simple if they have a CPA in a firm that hasn’t already helped them 0 out their taxes. They need to find a new cpa in a new firm. The same thing is to go ahead.

09:08.23

Matt Watson

Now. Well so does this? Ah, when you’re saying this right now or is this supply only to a C corporation, or are you talking about? you know other types of companies where the profits flow through to the shareholders.

09:18.15

Dr. Thaddeus Gala

Good question It’s great. Great question. It’s gonna be, excuse me. This is gonna be the same form regardless of the entity. So it could be L L C Scorp C-Corp Sole proprietor. Um this holds true for either either either them.

09:37.16

Matt Watson

Okay.

09:37.66

Dr. Thaddeus Gala

You need them so and this is the same conversation I have with any I mean listen to things to this Matt I tell people to look most of us are wrong about most things most of the time if you want to get ahead in life look at what the masses are doing and do the opposite because most people make poor decisions when it comes to their health. Most people make poor decisions when it comes to their wealth. Most people make poor decisions when they’re investing because they don’t understand the game and so they look at what the masses are doing and they use the principle ah the psychological principle of social proof and they just look at what everyone else is doing and then they go and do it right. And the problem is that that keeps people extremely poor and in all walks of life and so I tell people this like in our clinics right? when I used to work in the clinics a lot more than I do now patients would come in and they say okay wait and right now I’m finishing up my Ph.D. on reversing Parkinson’s I have a patient come in and they’d say so Dr. Gala you know how is it that you can help people reverse Parkinson’s if this was so great. Why wouldn’t we have heard about this by now I say well 2 things number 1 we’re working with a legacy system that’s broken and then and then number two I say you know. If your doctor hasn’t been able to help you reverse your Parkinson’s or fill in the blank. Whatever disease you have you need to find a new doctor. Your doctor is there for you. You’re not there for them so same thing with your CPA I say there are 2 types of Cpa firms out there those that work for you and then there’s those that work for the IRS and it’s the eighty-twenty role that Pareto’s Principle 80% of if you throw a dart at the board chances are you’re gonna have a Cpa that works for the Irs Proverbially works with the IRS meaning they just they’re not really strategic in terms of things so number 1 it’s getting that if you can get that umbrella of a CPA firm that that really knows what the game that’s number one and we have a handful of strategic partners. If people are listening. Um, happy to make some introductions to some of our our our so to some of the relationships we’ve established over the years because there are some really great firms out there, and like 1 of the firms we refer to they have an Irs a former Irs auditing agent on their staff to look over everything to make sure that everything is not only compliant but everything’s good, etc. So it’s. Finding that dynamite team and it’s not using TurboTax or hr block or any of these other nonsense things that are number 1 you got to be around the right playmates in the right playgrounds number 2 is it’s going through in a systematic formula and usually you can do this in about 2 hours like when I do my intake calls with businesses depending on where their volume is. Um, you know, but if they’re under like 20000000. Usually, we can get through this in about an hour or 2 and really map out the commonly overlooked things I mean real basic things that everyone should already be doing which you know I’ll maybe put you on the spot here a little bit Matt if you’re okay, being uncomfortable but are you already taking it. Do. Do you have kids by the way?

12:25.97

Matt Watson

Yeah I have 4 of them twelve seven five and 1

12:27.19

Dr. Thaddeus Gala

Okay, and what other ages.

12:34.60

Dr. Thaddeus Gala

Okay, twelve seven 5 and one. Okay, so for the 12 and seven year old are you paying them 12 grand a year to work on your business. Okay, so here’s the thing right here. So I’m gonna save you so I’m and I’m gonna save you right here. Ah do you know what? you what your tax bracket is roughly.

12:41.99

Matt Watson

Now Shall I put them to work.

12:53.33

Dr. Thaddeus Gala

Like are you thirty thirty percent 35% okay so and that’s okay see look at this I mean you’re a successful guy right? You’ve had he had a business exit and and not knowing where you’re at tax wise it just goes to show how much and myself included for years. Just really didn’t spend the time that we that we.

12:54.39

Matt Watson

I I’m not sure.

13:12.10

Dr. Thaddeus Gala

That this deserves really understand. But here’s the thing you can pay your kids. There’s a federal limit that if you if you receive less than $12000 you don’t need to file a return because well you don’t to pay taxes because it’s under the federal limit. So what you can do is you can pay your children age 7 to 22 up to $12000 per year and the business can write it off and they don’t have to claim it as income. So even just something simple like this right? So let’s do this you you have you have 4 kids you said right? So let’s say if you did this age 7 to to 22 that’s fifteen years right so 15 years

13:40.67

Matt Watson

Yeah yep, four kids.

13:48.53

Dr. Thaddeus Gala

Times 4 that’s sixty years or units times 12000 that right there we just got you seven hundred and twenty Thousand dollars tax free over the next over. Well it’s not a tax trade. It’s it’s a write-off. So so that means.

13:59.20

Matt Watson

Tax credit Yeah tax Oh tax write off yeah tax write offs.

14:05.91

Dr. Thaddeus Gala

That means that over the neck now that’s just one little piece right? 1 little thing that that means that for your for your 4 kids over the next several years. You’re gonna be able to write off seven hundred and twenty thousand dollars in expenses that you and I wouldn’t have done right before this call so this call right there and let’s just say you’re in a 25% tax bracket times point I’m gonna say 30% tax bracket. So that right there.

14:17.87

Matt Watson

Are.

14:25.91

Dr. Thaddeus Gala

This call right? and right here just now in the last 2 minutes we just saved you two hundred and sixteen thousand dollars because that’s what you’re gonna be because that’s we’re gonna pay in taxes. So just by hiring your kids. We just saved you over the next over the next ten fifteen years we just saved you two hundred and sixteen thousand dollars and if we use the rule of 6 time 6

14:31.60

Matt Watson

I like it.

14:45.00

Dr. Thaddeus Gala

That’s the equivalent of of by just understanding that one hack we just brought in the equivalent of one point three million dollars in top line revenue to your business spread out you know, amortized over the next you know 7 to 15 years. But that’s just 1 strategy right? So it’s it’s doing the right and.

14:54.36

Matt Watson

Right? Okay, yeah, and I’ve heard it and I’ve actually heard of that one before not doing it. Nope.

15:03.37

Dr. Thaddeus Gala

And that’s the thing but but you’re not doing it and that’s the problem right? right? So let’s just book in this for your listeners and for you. So what you want to do is you want to go through and find ageappropriate tasks that they can do right? So the 7 year old isn’t going to be your lead. You know your Cmo your chief marketing officer right? but your but your 7 year old could be. Doing janitorial work so you could write up write up a little thing that says you know you can just do like a one- pageger that says from January first to December thirty First you know what’s your 7 year old’s name archer so you say okay archer you’re going to be You’re going to be working and you’re going to be helping the family business for the next twelve months

15:32.84

Matt Watson

His name is archer.

15:41.73

Dr. Thaddeus Gala

And your job is to clean the trash cans in my office is to dust the shelves and to do whatever other chores that you have him do at set age 7 that’s age appropriate that that legitimately helps he’s probably already doing chores already so you just.

15:52.68

Matt Watson

I I know our listeners can’t can’t see our video here. But if you could see our video. You could see all the books behind me on my shelves and they they come in on a regular basis and just rearrange the books randomly because they just like to play with the books and so.

15:59.67

Dr. Thaddeus Gala

I See all those.

16:07.38

Dr. Thaddeus Gala

Ah, there you go perfect. Perfect now now when you get closer to like the 15 year old or they get up to being 20 You know there’s a legitimate argument that that they really can be doing more high value things right? where they can be yeah working on your social media because.

16:09.35

Matt Watson

I Think they’re already earning their keep by rearranging my office.

16:21.80

Matt Watson

Yeah, sure.

16:26.46

Dr. Thaddeus Gala

You know they get those things so and in in intrinsically in their in their development.

16:26.87

Matt Watson

So so if you were really going to do this would you have to set up a ah like an investment account or like a just a normal bank account and then what do you do with the money once you put it in the account.

16:37.54

Dr. Thaddeus Gala

Yeah, so if you were to write them that check so you put it in the account and maybe it’s in a joint account right? Or maybe you write them a check and then you go to the bank and then you just cash that check for them. You know or with them at the bank. So now. Now you have this money now you have this 12 grand that you’ve that you’ve that you’ve spent and you’ve hired them. You can you know? Well, it’s technically their money but you know right? So so you as dad can kind of do what you want with that and that’s and and and that’s where you get to decide. You know how and where that money goes do you set up a custodian account for them. That’s 1 thing that you you just want to check that. Ah, you know.

16:56.52

Matt Watson

Yeah, they’re just going to buy a lot of eminems with it.

17:13.60

Dr. Thaddeus Gala

That I and cross that t with your cpa in terms of in terms of how you have your business structured set up and how you document that throughout the year but the fact you have four kids. That’s you know that’s 48 grand a year once they all get to age that you’re gonna be able to write off on your taxes.

17:25.26

Matt Watson

Now So how does this work does This does the same concept work with like my spouse.

17:31.15

Dr. Thaddeus Gala

Um, well because it’s a $12000 federal limit. So if she’s already making more than $12000 then no, but yeah, so then so then arguably you could do the same thing for her. Do you guys file jointly or separately.

17:37.54

Matt Watson

No, she doesn’t work.

17:43.94

Matt Watson

Well, that’s the thing you’d have to file taxes separately at that point then right.

17:47.90

Dr. Thaddeus Gala

Um, yeah, you’d have to look at that and see um, um yeah I’ve I’ve I’d have to look a little bit more deeper at your at your unique situation and how your structure structure is set up as an entity but there might be a way to do that. Um.

17:55.56

Matt Watson

Sure.

18:02.20

Dr. Thaddeus Gala

Yeah, there there might be ways to do that. But that’d be 1 at 1 of many you know the other thing is the augusta rule. Um, are you using the augusta rule. Are you familiar with that? Yeah, so so the augusta rule is where you can rent your house to yourself and you get a claim you claim that money taxfree. So if you have a house you can rent that.

18:09.19

Matt Watson

Seems like I’ve heard of that before but I don’t remember what it is. Oh yes.

18:21.53

Dr. Thaddeus Gala

Leave. It’s just for two weeks a year and you get and you can rent that to yourself and so you so you get to write off the rent from your business but you get to claim the money tax-free as an individual. So if you so right there let’s say that you rented your house for I don’t know let’s say that you rented it to your company for a legitimate company expense. Yeah.

18:28.45

Matt Watson

Yeah I’ve heard of that too.

18:36.62

Matt Watson

For a pool party and karaoke night.

18:40.38

Dr. Thaddeus Gala

For for your for your annual company party or something that right there you go you just want to make sure you document it appropriately and let’s say you do that for a thousand bucks that’s $14000 well that that just you just get to add of that now to to it as well. So there’s a lot of little. Kind of ticky tack things. You can do that you can set up that’s one and done because once you set it up then it’s automated for years to come. That’s 1 thing and then the the other thing that I’ll get a bit you know will kind of leap frog into a little more advanced strategy and that is that that wealthy people because some people may say well thatis that’s great. But I’m looking at $1000000 of net income. So what.

19:09.70

Matt Watson

Yeah, that’s why I’m thinking of my head here.

19:13.29

Dr. Thaddeus Gala

Yeah, so what do I do with that. So let’s talk about the other book end of that and the juicy, the juicy parts. So um, and I don’t mean for this to be a plug but I’ll share kind of what we do and and I’ll share how you know people can do this without us on the open market. Um, wealthy people understand this concept. They understand that that borrowing money. Against appreciating assets is tax-free and and there’s a 2 step process to that and I’ll use a real easy example and then I’ll get into 2 more nuanced and that is that if you want to eliminate your taxes. Let’s say that you have it. Let’s just use the example $1000000 and we can help people usually up to two million anywhere from 2000000 all the way down to 100000. We usually can help people 0 out their taxes and this is what we do and this is what you can do so I’ll give a generic example of what you can do on the open market without us and then I’ll share what we do um in in terms of how we make it what I believe easier for people. So right now you could go. Let’s just pretend that you are a well there. There’s 2 ways to do this. Let me see which one would be best. Um I’ll I’ll do I’ll do a real basic example. Let’s pretend that you’re a farmer and you go out and you buy a hundred thousand dollars tractor which tractors are about 100 to $200000 nowadays I know because I have a ranch and I have a couple of. So let’s say that you have $100000 tractor that you write a check for and you and you write that off. So now you get to take that typically through section one seventy nine or other other areas you get to write off $100000 on your taxes so you just got you just lowered your taxes by $100000 and let’s say you go back to john deere or the tractor company and you say hey I have this tractor and you know what I actually want to get a loan against it I want to borrow against my tractor $100000 and they say great. You know what we have this great smoking deal right now if you want to borrow money against your tractor. We’ll use your tractor as a collateral and we’ll give you 100% loan to value. And we have this promotional period where it’s zero percent interest for 5 years and so you borrow this this $100000 now here’s the thing because you borrowed it as a loan you now aren’t paying any any income on that because it’s a loan and so you get the $100000 write off. You get the value of the tractor that’s going to produce money and value for for your property. You’re not paying any taxes and you still have your $100000 in your pocket that you get to do with that. Whatever you want with now. So.

21:27.75

Matt Watson

But wouldn’t but when I but if I take that $100000 and I do something else when I have to pay taxes on the income I generate from investing that other 0

21:37.67

Dr. Thaddeus Gala

Well let’s say you take the 100000 that you just borrowed now now what would you go use that on just give me like maybe a real life example because I think I see where you’re going. Okay, great. So you buy let’s say you? Yeah so let’s say you buy something. Let’s say you buy some stock.

21:44.80

Matt Watson

I mean even let’s just pretend I just buy stocks let’s I buy stock and Tesla or whatever I mean then if.

21:56.16

Dr. Thaddeus Gala

And let’s pretend that it’s giving you dividends. Um, so let’s pretend you buy one hundred Thousand ah hundred thousand dollars of stock that’s giving you dividends. Well, you’re going to pay taxes on the dividends but not on the 0 that you have in stock. But if the stock goes up from. Let’s say 100000 to let’s say 150000 and then you sell it well you’re going to be paying capital gains on 50000

21:56.91

Matt Watson

Um.

22:07.25

Matt Watson

Right.

22:16.70

Dr. Thaddeus Gala

But you can use the same strategy then to 0 out those taxes but the here’s but here. But but here’s even beautiful. Let’s let’s but let’s pretend that you let’s so you just do this process again. So let’s pretend that you bought this tractor for $100000 and then you borrowed against it.

22:19.54

Matt Watson

Yeah, so how would yeah so how would that work.

22:31.63

Dr. Thaddeus Gala

Well if you take that $100000 and let’s say that you took the $100000 and and hired a key team member. Well this is the beautiful thing now you get to write that money off again and you get ah you get a double right off so you’ve just zeroed out your taxes and now you’re actually showing a loss and you get yeah and with with the cares act. There’s a couple. There’s a while there you actually could get a refund.

22:39.73

Matt Watson

Um.

22:51.42

Dr. Thaddeus Gala

But now you get to carry that loss forward. So the next one hundred thousand dollars that you make next year the first hundred thousand dollars you make is completely tax-free.

22:58.70

Matt Watson

So how would this work with like stock investments though if I have a huge stock portfolio and I’m making a lot of capital gains and and dividends. How would you do the same strategy.

23:05.62

Dr. Thaddeus Gala

Yeah, so like look yeah so you can do the same strategy. So like what we do so so wealthy people. The concept again is wealthy people understand that that when you borrow against apprecid assets that’s tax-free money and there’s no there’s no award for dying with how all your debt paining paid off. Wealthy people understand the value of debt. They’ve cured themselves of Dave Ramsey disease and they understand the value of of investing in assets that you can also get right right? off even more I really like real estate so like with that example let’s say that you bought that tractor for hundred thousand dollars you have your you have a hundred thousand dollars back in your bank account. And then you go buy. Let’s say you take the $100000 you go invest in real estate. Well, the nice thing is let’s say you take that $100000 and you go put it as a let’s say a 20% down payment on a property. So now you’re getting a $500000 property if you do a cost segregation study and accelerated depreciation. You could take off another two hundred and fifty thousand dollars write-off ah, let’s say let’s say another 2 to two hundred and fifty thousand dollars accelerated depreciation and write off on your taxes again. So now you have a $500000 asset piece of real estate plus you just saved another two hundred and fifty thousand dollars on your taxes. So you start stacking all of these write offs and this is how you build assets. And then this is how you get how you how you eliminate your taxes and the beautiful thing is is that in 10 years the the rule of 10 states that in 10 years you’ll have your original purchase pri and equity in a property. So if you buy a $500000 property in 10 years you’re going to have half a million dollars of equity if you refinance that and pull that cash out that money that you pull out is tax freee. Because it’s a loan. So if you had let’s say $500000 in in stocks and it’s producing you dividends. Let’s say let’s say let’s say it’s a crazy return right? And it’s given you $50000 a year in dividends like that’d be like a 10% return on dividends right? So let’s say you’re getting $50000 a year in dividends. Well, you could do the same thing because all is all it’s all going to flow through to your individual return so you could just go use that tractor analogy and you could write it off again and some people may say.

25:08.39

Matt Watson

Um, yeah, but how how does this? How does this work for just like pure like stock market or or stuff like that like I own full scale and I receive you know a million dollars a year in profit. Let’s pretend on my k one. What.

25:21.50

Dr. Thaddeus Gala

Yeah, yeah, so so that’s going to flow through to your personal so on your business. Um, so so you own a business right? So so if you’re if you’re showing a loss on your business then that loss will flow through down to your to your individual return.

25:30.10

Matt Watson

Um.

25:40.26

Dr. Thaddeus Gala

And it will it will. There’s there’s a few other steps. But in essence it’ll it’ll it’ll if if your k one is showing that you made a million. But if your if your business is showing that that it lost a million then it’ll it’ll zero out there’s more to it than that. But that’s that’s the the essence.

25:54.18

Matt Watson

Yeah, but I’m I’m at let’s pretend. It’s making a million though. But it’s not losing any money. It’s making money. Yeah, billion to make yeah the business making $1000000 a year than.

25:59.80

Dr. Thaddeus Gala

So your business is making 1000000 as well. Yeah, see see so you have a million from your business and then a million from from like passive income correct so you have like 2000000 yeah so what you could do is then in that scenario you could do 2 things. 1 is 1 is you you could use this strategy.

26:08.29

Matt Watson

Sure.

26:17.15

Dr. Thaddeus Gala

To to bring down that. Well yeah, you just use the same strategy. You just do it for 2000000. So for instance, so so and I’ll share I’ll share with kind of what we do because this might put a ah kind of ah ah you know, ah, period on it for some people and that is so like like what what we do with people. We have a business consulting mastermind group and we have different services and products that we offer up to 2000000. So let’s just say that if you had that $2000000 right? You could you could hire us for $2000000 which then you get all the benefits of our organization working for you. You get to come to our annual retreat which we actually have gary vee speaking this year our annual retreat you get to hang out with all the other entrepreneurs etc and one of the perks of hiring us is we get you access to a $2000000 business line of credit at 1.9% interest. So let’s say this. Let’s say if you were to write us a check for 2000000 then we get but then we also get you a loan for $2000000 so you’ve just wrote an off $2000000 you now are using utilizing us. You’re part of our mastermind group. You use us as as business consultants you get all the perks of that plus one of the perks of being in the mastermind group is you get. Ah, $2000000 line of credit that’s interest only to your business. It doesn’t report to your credit There’s no credit check there’s no, that’s non-recourse etc. So there’s there’s other people and things that do this but and and again I’m not trying to pitch this but I’m saying if you don’t have a tractor model or if you don’t have other things are write off. This is a way that you can do it.

27:44.76

Matt Watson

Ah.

27:49.47

Dr. Thaddeus Gala

Um, and then at that point it’s it’s simply an arbitrage play.

27:52.72

Matt Watson

So when you say it’s an arbitrage play explain that.

27:55.97

Dr. Thaddeus Gala

So an arbitrage play for for listeners or just to refresh it so arbitrage is you know let’s let’s pretend that you let’s pretend that that that your buddy Joe came up to you and said hey you know I’d love I love to let loan you a million dollars and you say hey Joe that’s great. What’s the interest rate and he says. I’m gonna loan you a million dollars at zero percent interest for for 10 years just pay me back when you can would you borrow that million dollars I would right? because yeah, so because you could very likely then go out and invest that in something that is then going to grow and appreciate and then.

28:21.89

Matt Watson

Seems like a smart thing to do? Yeah absolutely. Um.

28:33.30

Dr. Thaddeus Gala

In 10 years You just write Joe back a check for a million bucks and you just arbitrage right? So you borrowed money at a lower at a lower rate and you and you revested at a higher rate so arbitrage in the real world is typically you know if you’re able to borrow money at 1 to 2% and then go invest it at 5 to 7% you’re making that spread so you’re arbitraging that. So um, so we arbitrage things all day long right? I mean if your car breaks down and you need to go to the mechanic you arbitrage your time. It makes a lot more sense to go pay. You know the mechanic too grand to fix your engine.

28:56.41

Matt Watson

Um.

29:06.93

Dr. Thaddeus Gala

As opposed to learn go out and buy a set of tools set up a shop in your garage and fix your engine yourself because you think well it’s it’s a lot more efficient for me to work at my regular job and be really efficient. There. So you’re arbitrage in your time but the real the real thing of this is you’re saving like in. That example, if you’re saving $2000000 or if you’re writing off $2000000 you’re probably saving. You’re probably saving about let’s just do some quick math here at $2000000 times I’m just gonna say point 3 so you’re probably saving $600000 on your taxes so you’re saving $600000 on your taxes and you’re paying on the interest point zero one nine two and then you’re paying $38000 in taxes. So you’re you’re paying 38 I’m sorry you’re paying 38000 in interest on the loan but you’ve just saved $600000 on your taxes. So.

29:55.96

Matt Watson

So that yeah I mean so that well so before I forget let me write remind everybody that today’s episode of startup puzzle is sponsored by full skilled io helping you build a software team quickly and affordably we can help you save money on your software development expenses. Um, but that’s not the same thing as your taxes. So I guess. You know, a lot of what you’re describing I understand basic arbitrage right? like I can borrow money for 1% and I can go invest it in something and make 10 percent and I I make the difference right? But you know what you described earlier is you made it sound like I could hire your company and basically pay you a million dollars

30:19.72

Dr. Thaddeus Gala

Right? yeah.

30:33.87

Matt Watson

And I would be able to write that off as an expense today as like a business expense. But then you’re able to loan that money back basically at a low interest rate so instead of me having to pay 20 or 30% tax rate I basically delayed that to the future by doing that right.

30:48.48

Dr. Thaddeus Gala

Correct. Yep there you go and some people may so or go ahead.

30:51.62

Matt Watson

And then so like and then so how do I I guess then how do I get my money back right? As far as like okay I gave I paid you this $2000000 consulting expense or whatever. How do I how do I unwind that later.

31:00.67

Dr. Thaddeus Gala

Correct yeah, great question. So a couple ways to do that. One would be um so so so 2 pieces there that I think are kind of little open loops and one would be so if you if you did that for 2000000 then then one of the things that is that. We have strategic partners that and 1 of the benefits and perks of kind of being like in the gold club quote unquote you know one of the perks is you get you get business lines of credit at extremely low interest rates so you get that $2000000 back and you’re correct and then you have this line of credit that is interest only locked in in perpetuity so you can take it to the grave with you. Or if you want there’s an optional. There’s optional clause that after 20 years you can you can request have the principal forgiven that’s one option or um, number 2 I really do think once people understand arbitrage they likely won’t do that and they’ll likely take it to the grave with them and they can either have it forgiven then which then would be a taxable event. Or they can I know some people have set up a life insurance policy based off of that either a cash value life insurance or a term that then that then covers it so when they pass it doesn’t get passed on with their with their business assets or anything like that. But when you look at the time value of money you got to think I know it sounds weird. But. But $20000000 or I’m sorry $2000000 in 10 years from now is only when you look at inflation just eating away on it. It’ll only be worth about one point two million dollars because time and inflation makes debt obsolete so over over time. Eventually loans and debt eventually reaches 0 effectively loans offens essentially effectively reach 0 if given enough time and all the while if you take that arbitrage and the savings and you’re investing it. You’re appreciating ideally more than inflation. And you’ve and you’ve created these 2 divergent rates of debt is essentially going to 0 due to inflation and with appreciation and principal reduction of assets. You’re growing these exponential divergent rates of equity and net worth.

33:00.79

Matt Watson

So is this is this sort of strategy of using like a consulting like ah fees like this is is that are really one of the prime strategies that that really high net worth individuals use.

33:11.97

Dr. Thaddeus Gala

It is yeah and and it’s it’s it’s one of the ways that well the the concept is and there’s lots of ways to do it right? You can do it through consulting like with us you can do it with real estate. Um, you can you can do it in a in a handful different ways and you and people can do this on the open market right now right? I mean they could go. Let’s say join Tony Robbins Business mastery for you know, a million bucks or hire him as for a million bucks or two hundred and fifty thousand for one of his lower programs and write that off their taxes and then they could go to Chase Bank and get a line of credit and get their money right back so people do this strategy already all the time but but the numbers don’t typically work when you do on the open market. Unless you have strategic partners. But yes, you could do this with us. You could do it with real through real estate. You could do it with products and services that you already need for your business. Um, like I did this years ago when I needed an x-ray machine for our for our office I pay I think it was like 64 grand I wrote a check for x-ray machine. And then went back to to an equipment company and I said hey well you finance this for me I want to I want I want to use my x-ray machine as collateral can I get alignment. Can I get um, can I finance they said yep and they sent me a check for $64000 so I got my so I got it right? off the whole x-ray machine. Plus I got my 64000 bat back. Plus. Um x machine what it produced in cash flow more than paid for my um payments every month.

34:29.63

Matt Watson

Right? Sure So you mentioned earlier there’s ways to do this on the open market and then there’s ways that you know your company you know can help people do this So I don’t know if you covered did you cover the way that your company helps do this or.

34:42.28

Dr. Thaddeus Gala

Yeah, so that is the way the art one of the ways that our company could do. It would be an example, you know if you have anywhere from 2000000 to $100000 of net income that you’re paying taxes on that’s what we would do is you would you? we would send you an invoice for let’s say $2000000 um, and you. You pay that invoice and then you write that off on your taxes and then we get you your line of credit for $2000000 and so you essentially get that money back.

35:08.91

Matt Watson

So I’m just curious on your on on the side of your company. Don’t you have to show that $2000000 is profit on your side. So so then does this loop repeat.

35:14.24

Dr. Thaddeus Gala

Ah, hundred percent yep bingo right so good yeah great great great question yeah I like where your brain’s going I like I like that you’re thinking of all the pieces of how the sausage is made which is great. So um, that’s part of it but also too we we have a lot of real estate holdings. So we have a tremendous amount of depreciation that that we’re able to write off so we’re able to leverage a lot of it over time in terms of in terms of the income. So we’ve set up a lot of really powerful real bus tax tax savings reduction strategies on the backend for us. Um, that allows us to have this muscle.

35:33.28

Matt Watson

Um.

35:51.32

Dr. Thaddeus Gala

To be able to carry that much income.

35:53.17

Matt Watson

Well for so what is the minimum amount of money that people need to make before they should consider this kind of strategy is it hundred thousand dollars a year. Is it like what? what.

36:00.14

Dr. Thaddeus Gala

If yeah, yeah, good question I think if someone’s making $100000 or more or they’re paying more than 30 grand in taxes then you know and they don’t want to Bait taxes then this strategy I think is is ah is a very good strategy because. Not only is it going to help zero your taxes. But then you’re also going to be surrounded with and and be be joining a group of a very bright entrepreneurs that are not not only well you know, hanging out with entrepreneurs yet. There’s a lot of things you don’t even know you don’t know that you benefit from you know, not only the teachings but also the relationships that come out of it. So There’s tremendous amount of things that you don’t even know you don’t know.

36:28.00

Matt Watson

Yeah, yeah.

36:38.11

Dr. Thaddeus Gala

People are gonna learn. But yeah, this is one of the strategies that people can do and I always say you know and if you and if people want a new Cpa Firm I’m happy to make that intro but I really do think it’s it’s you have to surround yourself with the right playmates and the right playgrounds and I think for me, it was my my mind shift was rather than saying oh well gosh you know. You know someone else does that? Well it probably won’t apply to me and instead I said well someone else does this and while the same strategy they’re doing may not apply to me I know that if someone else is doing this and able to 0 out their taxes I Shield to 0 up my taxes So I’m gonna lean into this and learn more about how it can apply to me instead of. How can it not apply to me and I think it’s having that mindset of of of how can it work as opposed to oh it probably won’t work I’m not even gonna not I’m gonna learn or investigate. It.

37:16.42

Matt Watson

Ah.

37:23.98

Matt Watson

I’m just surprised that the Irs would allow a company to basically spend an unlimited amount of money on like a consulting fee or something and okay.

37:29.69

Dr. Thaddeus Gala

Well, that’s why it’s capped at 2000000. It’s it’s capped at 2 at 2000000 or or at 25% of of the the gross revenue because of the different services and things that we offer so you know if if a business came in and they will only make it $100000 you know it wouldn’t make any sense for them to to join for $2000000 nor would we let them even use that level of service because that depends on the level of that someone comes in they they get different services based on the level that they come in. So if someone comes in at a 0 they’re going to receive receive different services than someone that comes in at 2000000 so it kind of depends on the size of the business as well and it’s kind of formatted for that and some people say well I was just going to fish that some people say well thatad is I don’t have I don’t have $2000000 and I say well that’s okay because we can actually get you your business line of credit first to actually pay for your membership if that’s something that people want to do so even if you don’t money liquid.

38:06.57

Matt Watson

Um, so go go ahead.

38:23.75

Dr. Thaddeus Gala

Um, you can actually still do this process. Believe it or not.

38:25.92

Matt Watson

Interesting. So I mean so that that begs the next question. It’s like it’s timing right? when when is the right time to do this is it is it all based on fiscal year like it’s I’ve got a $2000000 tax bill from 2021 is it too late. Um.

38:41.30

Dr. Thaddeus Gala

Um, yeah, that’s that’s a good question. Um, so it it is too late for 2021 um unless unless someone so here’s the thing that that.

38:43.85

Matt Watson

What what is.

38:59.10

Dr. Thaddeus Gala

You know there’s thing called gap or generally accepted accounting practices and a lot of a lot of Cpa and irs knows that there’s a lot of people that that have expenses that they’ve paid in October November December etc that aren’t settled in the books yet and a perfect example would be you send a check for for for something let’s say in the middle of December and there’s a snowstorm or something happens and it doesn’t get received by the by the other party until let’s say you know January or February by the time they actually cash. It makes it through the mail system that the Irs says once the check is left. If you’re on a cash basis once the check is left. It’s no longer considered in your control. So it’s therefore considered as a deduction on your end. So so there’s some people that that have written checks in December that if they haven’t cleared until January February that you can still write it off because you’ve sent the check if that makes sense.

39:54.96

Matt Watson

Okay, so I can so I can backdate the check is that what you’re saying. Ah.

39:56.87

Dr. Thaddeus Gala

So there’s that aspect the other best time to do it is I would say I’m I’m not I’m not telling you on anything official what you should do but but I would say this if you if you if you ah if you if that check that you mailed if that check that you mailed. Um. Um, just so happened to be really delayed. Um, you know then then there there might be an opportunity there but that’s where again, a lot of cpas talk about you know you? you really have a lot of lot of cps will say you know you have till kind of January february to kind of finish it up. But if and if Irs says Nore. We’re not going to count it then they just count it for the next year and then you just carry that loss. Forward.

40:15.44

Matt Watson

Um, ah.

40:32.97

Matt Watson

Right.

40:34.25

Dr. Thaddeus Gala

The next year. Um, the other best time to do it. You know? So obviously you want to do it before year in the other best time to do it would be to um to to do it when interest rates are low. So the interest rates right now on the line of credit are based off of the the fed’s rate of the applicable federal rate the long-term applicable federal rate. And right now it’s at 1.92 it was at at one point eight four and I think it was even even at 1.17 or 1.75 and and I think this this month I think it goes up to like 2 point something so that’s what I tell people it’s it’s when the rates are the lowest. That’s when you do because that’s what the rate is fixed at. For the entire life of the loan. So I always tell people to do it as soon as the rate is the lowest that way you can lock in the lowest rate so because rates are going up I tell people you know for this year do it as soon as you can for this year going forward because it looks like rates are going up but there’s still an opportunity. You can still get in at like the 1.9 before things really solidify for march.

41:31.90

Matt Watson

Ah, so when we were starting the the podcast earlier you mentioned there is a big event coming up I Want to make sure that we we talk about that for a minute can you tell us more about it.

41:41.16

Dr. Thaddeus Gala

Yeah, so it’s our annual retreat. It’s with all of our members. It’s it’s for it’s called the guardian so it’s the guardian’s annual retreat if you go to http://guardiansretretreat.com or the guardiansalliance dot com. That’s our website but we have some amazing speakers at the at the guardian’s retreat this year and it is we have bobby and sofiia castro I think they have a 3 to $400000000 real estate portfolio Natasha Graziano 1 of the women’s world’s you know top women motivational inspirational speakers in terms of branding positioning etc. We have the one and only Gary Vaynerchuk he’s going to be talking about web 3 crypto blockchain I think he’s making right now I think he’s making out $200000 a day just on his just on his m nfts that are being resold. He made $91000000 in ninety days so he made he made $1000000 a day every single day for over three months when he’d first his launch and he’s doing another launch.

42:27.66

Matt Watson

Which is crazy.

42:37.58

Dr. Thaddeus Gala

So for me I feel really blessed that we have Gary that that was excited and he wanted to come down and speak at our retreat because I’ve heard that the great vine gary’s not speaking at future events other than his own which is vcon which I think right now to get a ticket into vcon to hear Gary speak is 17000 are tickets. Our tickets are only a grand so our tickets only a thousand bucks to come to our end retreat and to be able to hang out with Gary. We. Yeah, we have ah we have a private island party. We’re going to be having there. We’re voting everyone out to ah to a sunset beachside dinner and party one of the evenings we have some amazing speakers and amazing attendees. So. That’s what I’m really excited about that’s coming up april.

43:14.57

Matt Watson

And and and anybody can just any random person go to this or they they also have to be like a customer of yours.

43:15.41

Dr. Thaddeus Gala

Twenty fifth through the 20 Eighth.

43:20.84

Dr. Thaddeus Gala

Not not any random person so we first open it up to members so so members register first and that that just finished up and so now it’s open to general registration. It’s really meant for people that are entrepreneurial. Or or they’re or they’re aspiring entrepreneurs. So either people that are established or aspiring entrepreneurs that are 6 7 8 figure entrepreneurs that really want to stay ahead of where the market’s going. You know what they need to know so they don’t get blindsided by by blockchain crypto how they can use it. Um some biohacking around health aspects marketing sales. It’s It’s a juicy entrepreneurial event with ah a lot of amazing speakers and providers that are gonna be speaking.

43:57.37

Matt Watson

Okay, so it’s kind of up to your guys’s approval on who gets a.

44:00.96

Dr. Thaddeus Gala

Correct. Yeah I mean if someone if someone if someone goes through and register. It is an open site and if someone goes through then then they have to go after they register they go through a welcome call and in our team at that stage if if we don’t think it’s a good fit. We’ll say you know we really appreciate it. But we’re actually going to refund you your ticket and um. You know, maybe you know next year because we we are capped it. We can only we can only have 500 people there. So it’s a fairly small event.

44:23.94

Matt Watson

Yeah, that is a very small event and you’ve got a lot of interesting people that will be there so it sounds like sounds like fun I’m checking my calendar here.

44:29.26

Dr. Thaddeus Gala

Ah, yeah yeah I know I know I know we’re releasing it this week um to I think it was this week or next week we released it to the general public. So I know it’s gonna be filling up pretty quickly. Um I’m excited I’m looking forward to it and yeah I’m looking forward to it myself.

44:46.30

Matt Watson

In Puerto Rico

44:47.55

Dr. Thaddeus Gala

A chance to not only hear gary. But yeah Puerto Rico it’s warm. It’s beautiful and yet we have the caribbean on one side. The resort is right on the cliffs. So. It’s the with the caribbeans on one side and the rainforest on the backside amazing golf course. It’s got a whole water slide set up for the kids. Mean it’s just a gorgeous, beautiful resort and for me selfishly I’m looking forward to to interviewing gary to really extract out of his brain where things are going with with the blockchain end up to nftts web 3 and and how that’s going to be revolutionary revolutionizing business. And the next you know 1 to 5 years and how it really how the use cases increase.

45:24.35

Matt Watson

Well, we’re doing a whole series right now for the podcast about nfts and ah I ah yeah I actually interviewed somebody who runs like an an Nft investment fund um and ah eventually they’ll they will own the stock tik or Nft once they go public I believe.

45:28.99

Dr. Thaddeus Gala

Oh wonderful.

45:35.12

Dr. Thaddeus Gala

Moving.

45:41.13

Dr. Thaddeus Gala

Oh that’s awesome.

45:43.31

Matt Watson

And ah, he would actually be the first person to tell you that don’t ever buy Nft art like Gary V sells because it’s a stupid investment because it is its a stupid investment.

45:48.47

Dr. Thaddeus Gala

Right? Yeah, well his thing right? Yeah well his his NfT’s his and enough t’s he sells. He has a couple things one is he sells them as tickets to his conference and then and then the other thing he sells is they are.

45:59.70

Matt Watson

And that makes sense.

46:05.39

Dr. Thaddeus Gala

Are use items. So like if you buy 1 of his and Nfts. You can you can like I forget what it’s called, but it’s like the podcast pander or something which means if you buy this Nft then you’re gonna have them on your podcast for I think 2 or 3 times over the next year so if you buy buy the Nft and then you have them on. Yeah, so then you have them on maybe once but you’re like well I don’t need to interview him again.

46:17.98

Matt Watson

Yeah, there’s some utility to it.

46:25.23

Dr. Thaddeus Gala

So then you could go resell that to somebody else that really wanted to have him on his podcast and one of the things I think is kind of cool is then as as gary you know, continues to blow up and get even busier and more popular then you could arguably say you could almost price sell that that Nft to somebody else for maybe even more because now he’s even more in demand.

46:25.26

Matt Watson

Right.

46:42.73

Matt Watson

Sure yeah, and Nfts are interesting I I actually spend most of my time every day working in crypto related stuff. So um, but I I think nftt art is kind of silly. But.

46:44.42

Dr. Thaddeus Gala

Um, so you can get your money back and Navy make some potentially.

46:51.69

Dr. Thaddeus Gala

Oh nice. Yeah, yeah, yeah, yeah, what did you I I did I did really well on cryptounks when crypto punks first came out I was able to to to do really well on that.

46:58.58

Matt Watson

I don’t I’ve never bought an Nft of a squiggly line for a bunch of money or any of that stuff like people is it’s crazy man crazy. But.

47:11.13

Dr. Thaddeus Gala

Um, but but yeah I agree with you I think the use cases are the best I’m I’m curious. What do you see as some of the being the best use cases for um, for for Nfts in your perspective.

47:19.48

Matt Watson

I don’t think art I think it’s other things like I was for example, had lunch with somebody yesterday and sorry to get us off on a tangent who works in the ticket industry for like sporting events and so they have relationships with say a major league baseball team and so.

47:27.30

Dr. Thaddeus Gala

Yeah.

47:33.27

Dr. Thaddeus Gala

Yeah, yeah.

47:35.73

Matt Watson

Think about like if the major league baseball team could sell all their tickets. Let’s say for $50 a piece and they’re all Nft’s and you know behind the scenes when you you know, go use your ticket at the gate and all that stuff it’s it’s you know, validating that you owned it and it’s in your like wallet in their mobile app and all that stuff behind the scenes. It’s a blockchain you wouldn’t even have to know it. But think about then if you resold the tickets.

47:49.38

Dr. Thaddeus Gala

Sure yeah.

47:55.27

Matt Watson

On Stubhub or whatever like the cart the the Mlb team could actually make a cut of all every resell right? that all the way through the secondary market like I think there’s some interesting use cases for for other things and fts but not buying like little squiggly lines for.

47:59.82

Dr. Thaddeus Gala

Sure. Yeah, yeah, yeah, yeah, yeah, well the the thing I think about yeah I mean and the thing you think about is that like with Mlb like it’s.

48:11.59

Matt Watson

Crazy amount of money and and this stuff that goes on.

48:17.35

Dr. Thaddeus Gala

It’s arguably already going on because when you go to get on it on an airplane and you check in on your phone and you have that qr code that that is in essence and in ah, an Nft because it because yeah, but it’s a non-fungible token. It can’t be separate. It’s unique to you. You’ve paid for it and it’s something that is is is very unique. So.

48:25.67

Matt Watson

So unique identifier. Yeah.

48:35.64

Dr. Thaddeus Gala

Concept We all already are using the concept of the digitization of tokens and use cases of of unique of unique caricatures on our on our digital devices. So it’s not that far of a stretch to then take it one step further like you said and use it on the blockchain and then start attaching other.

48:39.88

Matt Watson

Um, yeah.

48:53.41

Dr. Thaddeus Gala

Ah, there are benefits and uses to it which I think is is is wonderful. So.

48:54.33

Matt Watson

Yep, yep, well so as we wrap this up I’m sorry we’re getting off on a tangent here, but there’s 1 more tangent I wanted to ask you about which was the healthcare side of things you mentioned that you’re involved in and it sounds like you’re really involved in more natural ah healthcare which. You know big pharma doesn’t make money on. So um, but it’s probably the cure to most of our as I’d love to learn more about what you do there.

49:17.73

Dr. Thaddeus Gala

Yeah, the biggest thing I’ve found over the years and again I’ve worked with thousands of patients and I’ve helped people reverse everything from alzheimer’s parkinson’s diabetes chronic fatigue arthritis migraines you name it is that I I would go out on a limb and I would say. I wouldn’t go on a limb I would actually firmly say that I’m willing to bet that you know 90 to 95% of the health issues that we face in the western world in the us canadava etc are lifestyle based diseases meaning that if you change your lifestyle beat around diet exercise. Social interaction your thoughts the the lotions and potions that you take and use put on your skin your body all of the things that we interact with on a daily basis if you clean those things up supplements exercise all those things there’s about 12 different things that we teach people on if you get all those things dialed in then your body really can have the. The the building blocks that it needs to heal and make maintain and regulate itself appropriately and the vast majority of chronic diseases can be reversed in anywhere from 4 to twelve months depending on where someone is in the cycle of that disease you know at 1 gal she had rheumatoid arthritis and she’d been taking medications for gosh I forget forgot how many years but but we added up between her and her insurance she had paid nine hundred and sixty thousand dollars in medications Nine hundred and sixty thousand dollars she was a school teacheracher and she was just suffering with rheumatoid arthritis and and the medications that they give you are just brutal medications and in about 2 to about about 3 I gonna say 3 to four months

50:37.67

Matt Watson

Cheese.

50:53.65

Dr. Thaddeus Gala

She was able to completely go off all of her medications because she had healed so much she didn’t need him anymore. So about 3 to four months her body completely transformed so it just goes to show and we’ve done this time and again how many how many times you are or how much um, but people can heal if you give at the right time. 1 of 1 of 1 of my things that that I’m that I’m committed to doing is before I die is building the world’s first largest and biggest natural whole health hospital where we really focus on these things essentially like the mayo clinic of natural medicine.

51:24.42

Matt Watson

The her.

51:26.91

Dr. Thaddeus Gala

And we had funding for it. We had about $40000000 of funding for it before covid hit and then it you know we actually got our first release to try to to start securing land and property and then covid hit and it you know everything just poofed so we’rere we’re back on it.

51:37.66

Matt Watson

Well I I definitely agree with you I feel like most most of us have a lot of inflammation in our bodies that we don’t even know and and have high insulin levels and and all these different things that no doubt causes a lot of problems but but we also live in this phase. Ah.

51:44.61

Dr. Thaddeus Gala

Hundred percent all those things. Yeah.

51:55.71

Matt Watson

Crazy fast-paced world and and you know modern conveniences have made us very lazy and you know I went to Starbucks this morning and for lunch I went to wind’s Wendy’s and had hamburgers and fries. So I am right on the list of the problem. But I I know it I know it’s the problem but you know.

51:59.50

Dr. Thaddeus Gala

Yeah, yeah.

52:07.90

Dr. Thaddeus Gala

Ah, well, that’s it well, that’s the thing right? Yep and that’s part of it. You know the when I when I walk through so I also do do wellness coaching so I work with I work with with I cap myself at 5 people a year or I should take it back 10 people a year so 5 people

52:12.95

Matt Watson

Just busy trying to get shit done.

52:26.38

Dr. Thaddeus Gala

Basically every six months that I work with and I and I take them through a full transformation and what I do is that what the very first question that I ask people is you know? Well I ask some 2 questions number 1 if if I ask I say if you had a magic wand and you could get rid of 1 thing or change 1 thing with your health. What would it be. Usually say something like gosh I’d like to have more energy or not be fat or I don’t want to be on meds or I don’t want to die of alzheimer’s like my grandparents did or whatever and then I’ll say well. Why is that important to you and then we’ll spend probably the next ten minutes really outlining their their emotional why and maybe it’s you know what I want to be around to play with my kids I want to be I want to have enough energy that when I come home. I can play with my kids I want to be able to pick them up I want to be down on that I want to get down on the ground I want to wrestle with them I want to be around so I can play with them I want to be healthy enough so that I’m really set to play with my grandkids so find an emotional reason so that way when you go to let’s say Wendy’s and you’re about to eat that french fry you can ask yourself what’s more important this french fry or being able to be there for my kids. Because when we’re sitting there on on our on the hospital bed. Maybe just had a heart attack and we’re thinking gosh man I’m sixty years old and I just had a heart attack and you’re not gonna be wrong for your kids to me. that’s that’s the thing I hold my mind’s eye is is am I you know is this starbucks latte or whatever or this french fry. Is that worth trading this pleasure right now for being able to spend more time and more which is the only thing we have with my kids and with my loved ones at my full vi vibrant capacity.

53:48.37

Matt Watson

Absolutely well. Thank thank you for sharing that and I definitely feels like we’re slowly got this move this movement of natural health taking hold but the hospitals and the pharmacies and everybody else insurance companies none of them make any money if we spend less money. So.

54:01.97

Dr. Thaddeus Gala

Yeah, you know I have a great clip where I interviewed this this far this far this drug rep and I said I record it I should probably find the recording I’ll maybe I’ll send it to you and said I said what motivation do you have and do drug companies have to get people healthy and off drugs.

54:08.15

Matt Watson

Um.

54:20.93

Dr. Thaddeus Gala

And there’s this long awkward pause of well. Ah, you know it’s like yeah, it’s like we’ll just look where the money goes. So yeah, we talk about this and all kinds of things of annual treat. So yeah, if people are interested. We’d love to have you there. It’s gonna be an awesome time and we’re gonna be covering this in a whole host of things that we dive deep into first.

54:21.21

Matt Watson

Yeah.

54:34.45

Matt Watson

So once again, today’s episode of startup hustle was sponsored by full scale helping you build a software team quickly and affordably you can find us on Facebook and our startup hutle chat group or check out our Youtube channel um, just go to Youtube and look for startup hustle. Again today. Our guest today is thy is scalla with the guardian alliance and if you’re making a bunch of money and you don’t want to pay taxes. It sounds like he can help you and you check out the guardinglineions dot com and reach out to thatus and I might be followinging up with you later because I don’t really like paying taxes. So.

55:08.96

Dr. Thaddeus Gala

I’ve yet to meet anybody that that loves loves loves writing writing a check on April Fifteenth or before yeah, it’s it’s yeah, it’s it’s unfortunate that that because that is right money is a representation of our life and our time. So if you limit your taxes you get back.

55:15.21

Matt Watson

Yep.

55:23.52

Dr. Thaddeus Gala

Ah, about a third of your time January February March and April every year you typically get back because that’s how long you have to work just to make up enough money to pay your taxes. Thank you.

55:30.97

Matt Watson

All right? Well thank you so much take care.

Sponsor Highlight

Need to hire a highly-skilled software developer? You’ll be happy to know that today’s episode is sponsored by Full Scale. Save yourself the headaches of finding the right talent at a reasonable cost. Let Full Scale help you assemble your software team quickly and affordably. Meet all of the Startup Hustle partners who are dedicated to supporting entrepreneurs.