Introducing the seven-step plan for building Indestructible Wealth. In this episode we introduce and begin the break down the seven steps to building wealth.

About Indestructible Wealth: I’m Jack Gibson. I’m your wealth strategist and I’m here to help you make some money. The Indestructible Wealth Podcast is for young entrepreneurs who want to make, keep and grow wealth to enjoy now, and for years to come.

Episode #2 – The 7 Step Strategic Wealth Building Plan

Welcome to the Indestructible Wealth Podcast. This is the place where we help young entrepreneurs to make, keep, and grow wealth that you can enjoy now and for years to come. I’m your host Jack Gibson, a serial entrepreneur, founder of multiple 7 and 8 figure businesses, and wealth building strategist.  Each week I’m gonna share you my tips, resources and secrets, to help you create a plan and build the life you’ve dreamed of.

On our inaugural episode, we laid the ground work for how the wealthy think and act when it comes to investing and building wealth. On today’s show were going to dive into a specific strategy that will give you a broader view of how you can formulate your own plan to build indestructible wealth.  What I personally found over the years is an overwhelming amount of advice on tactics, what stock to buy, what types of property to buy, what market to buy in, you should be buying gold because the government’s printing money, buy cryptocurrency and get in early,  which each idea could be good, or could be very bad. Depending on how it fits into an overall strategic plan.

I’ve seen very little advice over the years on how to formulate an actual plan, so today I’m gonna give you each of the 7 steps that will guide you on your journey, and over the next several episodes we’ll take a deeper dive into each of these steps and help you get very clear on how this plan will work.  After each step is fully explained from there we’ll bring in a guest and dive in into specific investments that all tie back into the overall 7 step strategic plan. You don’t wanna miss this episode as its key to building indestructible wealth.

Super excited with you’re back.   So obviously I didn’t scare you away on the first one, you’re back again and today were going to dive into my 7 step Strategic process or plan, for 2021 and beyond.
Yesterday we talked a lot about laying the ground work for how the wealthy think, and what the entrepreneurial dilemma is so if you’ve didn’t listen to episode 1 you’ll want to go back as that’s the foundation of the entire platform. So, today were gonna dive into an overview of all 7 steps this is just to give you the beginnings of thinking about what your strategic plan will look like.  Now, you don’t have to agree with everything that I say, nor do you need to do everything I say.  However, there’s a lot of wisdom that’s packed behind these 7 steps.   This is what’s worked for me to create over 10 different strings of income as of this recording and counting, so, I’m super convinced that this gonna make a big difference for your life so let’s go.

So we talked about how back in college that I saved up 50 grand, invested into risky tech stocks, lost half of it and had to sell them all to get some cash to live.  So I want to tell you about 5 years ago, okay, I was still in the stock market and I was doing options. Options is a way to essentially rent out your stock while you own it and a way to create additional streams of cash flow off your stocks.  There’s different ways to play options and you don’t  actually even need to own a stocks to participate in options which is an even riskier way to play however,  there’s a lot of people that know how to do that they have a system and they have a process that has worked for them over time.

So I was in a stock called Interoil, it’s a natural gas company actually and so when oil prices crash drop big time at that – right around that mark, even though I was in an oil stock because it was called Interoil my stock drop in half;  I mean it wiped out a lot of gains.  All this income that I had generated from writing the options of this stock but because the stock is super volatile and so much of my eggs were in that 1 basket and that 1 stock when it dropped boom that really hurt.  So I really had to take a hard look inside of myself and ask some serious questions at that time, what I discovered is was one very hard to accept but the simple truth.  I was a successful entrepreneur, but I was a pretty terrible investor.  In fact I was pretty financially illiterate. I knew how to make money, in business, and I was comfortable I could create value whenever I set my mind to do.  However, I had really didn’t know how to keep it a bit, but I surely didn’t know how to grow it effectively.

I had no financial plan and I didn’t understand how the money game really works.  One of my favorite business philosophers Jim Rohn  describes the day that he lied to a girl scout.  Girl scout shows up on his door and put the big pitch on him and he wants to buy, but the problem is he has no money, right? So he lied to her, he said I already bought a bunch of cookies from these other girl scouts.  She said, okay no problem mister and goes on her way.  He closed the door like, oh my God, where have I gone in life.  I don’t even have a money to buy Girl Scout cookies and I’m lying to a girl scout. I hit the rock bottom. And that was the day for him, he said resolve, I resolve that day to become better to learn to create new skills.

And so, the day that my stocks drop in Interoil that was really the day where I made a decision and I said, I’m not gonna live the rest of my life like this anymore riding the ups and downs of not knowing how to play the money game.   I’m gonna learn the money game. So that day I resolved to become what Robert Kiyosaki describe to me , when I read the book 2 decades ago, Rich Dad Poor Dad, one of the greatest financial books of all time and if you haven’t read it you got to read it.  And he said,  you want to become what’s called a sophisticated investor, he describes a sophisticated investor is an investor understands the words and that can speak the language of an investor, and who can  invest money with a high degree of safety because they know how to buy cash flowing assets at the right prices.  I can’t say like oh yeah I’m a sophisticated investor I mean I really can’t I can’t honestly say that, but I do know I’m getting pretty close and I know that the journey I’ve been all the past 5 years how painful it’s been has transformed my knowledge and I do believe that I can invest much more safely with the high degree of success.

So, the plan that I formulated is helping me protect our family’s current lifestyle, while at the same time giving us a chance to create some potentially amazing growth in our portfolio and in our wealth.  If I ever have a chance to go back in time if time travel was ever invented, I would definitely go back and talk to myself when I was 22 years old and  right before I invested those stocks in the dot com bubble and I would just given myself this advice what I’m sharing with you guys today.  Why you want to have a strategic plan is it protects you from yourself.  I need protection from myself guys, okay? Cuz my emotions swing from month to month.  I’m emotional and I’m probably greedy at various levels just like every human being.  And so when you have a plan that dictates what you do, you don’t swing your decisions from month to month and end up doing something very stupid and very costly.

So if you have a plan and you execute that plan, applying pressure consistently in the market place, no one can stop you.  So when I look at different models in the past year it seems to me that the vast majority of advisors, coaches, gurus they’re either in 1 of 2 camps – they’re either all about cash flow,  safe steady cash flow or they’re all about appreciation which is also called capital gains.  Cash flow investing is buying assets that you want income like from rental properties, dividends, stocks, bonds, mortgage backed notes,  several others how you can do that.  Capital gains investment is buying assets that you want growth in value from, like  high growth stocks, cryptocurrencies, you could do like fix and flip speculative housing projects, and although I am predominantly a cash flow investor I believe that a mixed strategy would very important over the next decade.

There is going to be so many incredible technological breakthroughs and advancements in tech that it’s going to make the last decade, its going to make it look like kindergarten class.  You guys, it’s gonna be crazy what we’re gonna see.  So we want to be positioning ourselves up in front of some of these technological breakthroughs so that when they do hit the market place, Boom! We can explode our wealth and get to where we wanna be so much more.  So much faster.   There’s 2 problems that people maybe not even considering about only cash flow investing:  taxes, and speed of growth.  Cash flow, passive income is taxed in ordinary income rates so whatever tax rates you’re at, for your income, that’s what your tax is for your passive income.

And , capital gains is capped out at twenty percent now usually depending on your tax bracket anywhere from fifteen to twenty percent as of this recording.  Right now, new administration, things can change they don’t know if it’s gonna change if they’re gonna mess with that or not, no idea.  But as of right now, it’s a big difference.  a typical solid cash flow investment doesn’t have a lot of big upside growth potential.  So this strategy is gonna give you the security that a cash flow strategy offers and the financial independence along with taking some swings for the fences.  Really going for some quick big jumps in wealth that if they work out you’re totally fine and if they don’t work out you’re totally fine too.  The basic foundation of the plan is you guys gotta watch the movie Money ball this movie is so sweet right? I love this movie!  One of the scenes is you just got to see it where he’s in the boardroom with the scouts.  If you don’t ever see this movie I feel bad for you because it’s so relevant to investing.

It’s based on the true story of general manager Billy Beane, who just lost his top homerun guy Jason Giambi and the A’s did not have the budget to replace him. They have the lowest budget in all of major league baseball. He brought in a young analytics guy from Yale who showed him statistically how they could pick up lot of several guys for value –  – aka cheap contracts that were really good at just getting on base. They were not homerun superstars, they weren’t hitting the long ball by any stretch but they could effectively get on base. By implementing this plan, even though he got severe backlash from a scout he made a great run with the A’s and maximized the budget constraints he had to deal with.  And then many other organizations inside of major league baseball eventually copied this plan.  You get on base, and you form a solid foundation then when the timing is right, bases loaded, nobody out, best guy up to bat, one of your homerun hitters, swing for the fences!

Take some well calculated swings. And by far  over the course of your lifetime, your biggest expense is going to be taxes. Cuz you’re gonna pay upwards of or more than 50% of your total income to taxes.  And that doesn’t mean that you’re in the 50% tax bracket.  When you had a federal, state, Medicare, unemployment, property, sales taxes along with the hidden taxes of the government printing huge large-scale amounts of money unencumbered right? It’s more than likely it higher than 50% far bigger than your house, car, your education, and your food. So we’re gonna talk a lot about tax strategies you guys. We wanna pay our fair share but not more than. So here are the 7 steps and we’re gonna be taking a much deeper dive as we continue on down the podcast and on my blog and on my YouTube channel so make sure you are following along on my different channels so that you guys can really get all the goods that I’m gonna deliver.  Cuz we’re gonna give you guys concepts and strategies but we’re also gonna give you specific tactics.

And that’s another problem I found with a lot of the education out there. It’s very conceptual in nature and there’s not enough tactics or it’s very tactical oriented meaning what property or how do you analyze a property or what do you, how do you buy properties or how do you buy stocks or pick out stocks without really taking the time to set the stage with a strategy and over arching theme of how you wanna move forward.  So step 1, focus on increasing your ability to earn more money by improving your work ethic and skills. Guys you gotta make more freaking money. You’re not building wealth by cutting back.

This is Productionist thinking versus Reductionist thinking.  Productionist thinking always asks the question how I can create more value.  How can I be of service to others in exchange for higher pay?  If you’re an employee and you’re capped in a certain wage or maybe you’re not capped your income will only rise with inflation like teachers and the vast majority of w2 earners and you almost certainly need to create a side hustle.  Your primary investment at this stage, Stage 1 in yourself.  Get the courses, get the coaching, read the books the programs the seminars anything you can get your hands on. That you can prove your overall value, be voracious in your quest to get better in what you do. Be voracious with your disciplines and your work habits.

You got to make more money you guys. This starts the whole process of accelerating your wealth building journey starts thinking now you can click that side hustle that you’ve been thinking about doing but for whatever reason you procrastinated and never done it. Like, let’s go! There’s so much cash out there. The government just printed 2 trillion 3 trillion whatever it is trillions of dollars in cash has been injected into our economy. Go get you a piece of that! Show me the money! I want it. Alright!? But I want to earn it. I wanna earn it by providing value.

Step 2, choose to live well below your means so you can save over 60% of your income. Now I know what you’re saying… what the fuck, 60% are you fucking off your rocker!?! Listen guys, okay? I get it like that’s a lot sixty percent. I know you’re not gonna do that right now okay? A lot of you can’t probably save 10% right now I would guess.  But you’re not gonna create wealth in any sort of capacity by saving 10% and making 10% off your 10% that’s called really fucking slow.  Sure, you’re gonna have to work your way up to 60% by increasing your income by Step 1.  But at the same time not increasing your spending and lifestyle.  What are you trying to prove? Who are you trying to prove it to? You wanna buy more stuff than you can afford, you’re gonna max out your income every month then you haven’t fucking earned it. This is where most Americans mess up their plan. They get a raise or they increase their business growth and instantly they think they deserve to buy the better car, the house, the vacation.  I’m not saying you need to live on ramen noodles and not have any fun.  Like, I wanna enjoy life now not wait till I’m freaking retired. However, you have to be too disciplined to live like no one else so you can live like no one else. I tell you, it’s really nice to be financially free you guys. Like I don’t have to work another day for the rest of my life. Why, because I did steps 1 and 2.  These are the foundations. These steps aren’t the fun part but the lifestyle is fun.  

The next steps we are gonna get to the fun.  Steps 4 5 6 are fun but this is the foundation. This is building your house on rock and not sand.

Step 3, attack and payoff any debt higher than 5% interest especially any and all consumer debts. Okay so this is where I deviate from traditional financial gurus. I respect Dave Ramsey he’s done more good for humanity than probably I ever will hope to achieve in my lifetime on a financial level. However, and he says all debts needs to be paid off. Right? Attack all of your debt.  And simple math says this doesn’t make sense to me.  I’m not a debt coach you guys, I’m a wealth building coach.  If you wanna get out of debt go to talk to.  Go follow him.  Read his books.  He’s brilliant, he’s awesome.  He gives straight in your face advice that you need.  If you don’t believe that you can confidently earn more than 5% on your money then you should probably pay off all your debt and play it safe.

However, there’s an opportunity cost to debt meaning if I put all cash into paying off my 2% auto loan for example, then that money is not available to be put to work earning 10%.  And I know I can earn 10% all day long.  So then I’ve given up is 8% so if that’s a hundred thousand dollar car then that’s 8 thousand dollars I will not earn for that year on that money.  That’s opportunity cost you guys.  We are gonna dive in to the concept about opportunity costs quite a bit on this podcast over the course of time.

Step 4, allocate a portion of your investments into well researched, high risk and therefore huge potential returns using what’s called position sized debts. Now this all depends on age too. If you’re under age 30 you could go up to 20% you can get riskier you can get more speculative, because you can recover quick and you have more time.  You got a lot more time to recover from any of those  potential losses on your speculative bets.  Yeah I would say probably no more than 5 maybe 10 percent if you’re over 30.  You don’t have quite as much time to recover.  If we wanna create wealth, before retirement age so we can design and live an extraordinary life you’re gonna have a tough road earning, even high earning individuals, then paying taxes then spending our way there.  We need to be constantly be taking small stabs at gigantic returns while being careful to not get kicked out of the game. With the amount of new disruptive technology being introduced over this next decade guys, the potential for huge upside returns will only exponentially grow.  Now what do I mean by position sizing our bet?  So it just means you’re spreading your funds equally across several bets, we only to catch a small number to achieve incredible returns.  So out of 10 bets for example if 9 go to 0  but 1 of them goes up 5000% then that 1 would more than offset the 9 losers. This is how venture capitalists think and play the game and they’re some of the wealthiest people in the planet.

Step 5, Put the majority of your investments into conservative income producing assets.  The true definition of financial freedom is when the income from your assets can cover your monthly living expenses. Very simple way to think about financial freedom. When this happens, you’re free because then you don’t have to work for money.  Money will flow in every month whether you’re working or not. So you can do what you want when you want.  This kind of cashflow will only come from safe stable boring methodical investments that pay interest rents and dividends. Things like whole life cash value life insurance I just got my statement in the mail.  35,000 in dividends came in from my whole life insurance policy, incredible right? I mean that’s my safe stable boring investment.  Then there’s rental properties.   I’ve got rents coming in every single month from 20-25 different properties.   Blue chip stocks with dividends that kick out that are solid stable companies.

Mortgage back notes, this is where I would own a note like the bank on a property so investor for example is gonna be paying me instead of paying the bank.  7- 8 – 9 percent and on some of those, even got 1 that’s bigger than that.  Bonds, private money loans,  these are not sexy they’re not get rich quick but these are fundamental, predictable, and dependable.  These multiple streams of income will give you peace of mind and the independence and the formation of almost indestructible multi-generational wealth.  How you find these types of investments, where do you buy them, who  can you trust.   We are gonna be constantly looking at these together.  I’m gonna have lots of people on my show that I’ve vetted that I trust that I personally invested with.   And I’m gonna introduce you to these people.  You’re gonna be able to invest with them if you choose to.  And you gotta do your own due diligence and you gotta do your own research but I’m gonna share with you potentially how to avoid mistakes and help position yourself to maximize your returns while minimizing risk.  And then you can now take that monthly cash flow and place a high percentage of it in the higher risk higher reward bets because if they don’t work out, your lifestyle isn’t affected.  Your investment funds simply get replenished the following year and more importantly your lifestyle isn’t affected. Never ever risk your current lifestyle for a better one

Alright we’re at step 6 guys so hold on here. This is where it really gets fun. You gotta take a portion of your safe income that you have coming in from your rents, your interest payments all of that stuff, dividends. And you’re gonna invest that back into well researched what’s called asymmetric investments.  In asymmetric investments, simply there is more upside than it does downside.  So this is where you’re risking a dollar to make a hundred dollars or thousand dollars. Whereas symmetric is risking a hundred dollars to make a dollar to 10 dollars.  Now how do we find these types of investments?  Well, I’m gonna share a lot of them with you on my platform. There’s very very smart guys out there spending their entire life analyzing and finding the best picks.   They will charge nominal fees to their subscribers for their picks.  So I join a lot of subscription newsletters.  They have proven track records.  Even years of massively beating the stock marker returns.   Will they be right this year?  I don’t know.  Maybe, maybe not.

But if they don’t work out, the beauty of this strategy is my investment dollars will be replenished within a year and you’re still in the game.  As I’m talking here, I’m currently up way over a hundred percent in  3 months on an asymmetric play in the cryptocurrency space that was recommended to me by one of of the gurus out there.  And annualized  I don’t even know, that’s a big big ROI right? If it doesn’t work out, the income from my conservative  dividends and rentals and notes would replenish the funds so she and I can take another stab at this short order.

Step 7 okay guys this is closing out. Repeat until you’re wealthy and always remember to give generously, keep your ego in check, and enjoy the journey!  So you’re gonna follow steps 1 through 6 over and over and over and over and to be honest, if you’re just starting out some of you will probably be on step 1 and 2 for quite a while. Wwe all wanna rush it, we wanna rush the process, we wanna get wealthy. Wealth doesn’t come quick. Wealth is a slow process you guys. It doesn’t have to be forty years slow though.  Like it could be 5 to 10 years type deal to do things right.

Doesn’t have to be you don’t have to wait the rest of your life you are gonna have to make some sacrifices up front. No doubt. I’m not telling you that you’re gonna be able to. You’re not getting rich overnight there’s no way. Okay? If you do, most people who get rich overnight they don’t have the capacity to be able to handle it. And they figure out a way to blow it and and get rid of it or self-sabotage. Guys your money is not really your money anyways. You’re simply a temporary custodian. How do we know this? Well, we know this because we know you will at some point lose everything you have and it will then be dispersed to others. We know that is going to happen, that day will come. We don’t know when that day will come but we know it’s coming. So, in other words, it’s God’s money.  So personally, I choose to place God first in my finances and live a life of philanthropy.  I’m not waiting to give until I have arrived.  If I wait, then I’ll be waiting a long time like oh yeah once I hit a million dollars, I’m gonna give a hundred thousand a year. No that’s not how it works y’all.  That is not how it works.

You gotta start building that muscle right now when the amounts are small.  Start off with 1 percent if it’s tough for you to give.  Start off with 2 or 5 percent think a number and then put that on auto pilot to wherever you feel called to give that money.  I personally I have an auto pilot set up so that same date every single month, an automatic payment goes out to my church every single month without fail. And why did I set that up? Well, I knew that I need to protect myself from myself because 1 month I might be like no I don’t really wanna donate I wanna buy something.  I want to keep this for myself.  So, auto pilot is the best way to fully make sure that you follow through with what you say you really wanna do and how you wanna live your life.   If I wait and then I will be waiting a long time.  And if I wait to give, I’ll be waiting a long time because as the saying goes “how much is enough?  just a little bit more”.

That’s a wrap for this episode on the Indestructible wealth podcast. Before we part ways, I want to help you to take advantage of 2 incredible tax saving strategies that could help you save a lot of money.  All you have to do is leave me a 5-star review – if I’ve earned it – and comment in iTunes, Stitcher, or wherever you tune in.  After you’ve done that simple step just email me a screenshot to  [email protected] and I’ll send you everything you need to save money on your taxes for years to come.  If you’d like to dive deeper into your own wealth building strategy, check us out at and follow along on social media.  Also, please share this podcast with anyone who’s looking for guidance on their own wealth building journey.  Until next time, remember our mission here is to help you make, keep, and grow wealth you can enjoy now and for years to come.

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