The 5 Streams of Wealth

In today’s podcast, Justin Wise, Brian Duhearst, and Phillip Ramsey talk a little bit about the five streams of wealth. Most millionaires, at least in the United States, have multiple sources of income. Today's guests are experts in that and are currently helping Wise and his wife learn more about building out sources of income.

So, what exactly are the five streams of wealth?

#1: Uncommon Banking

“The first one we call uncommon banking. It's kind of like a saving strategy through cash value, life insurance. But basically, you know, in the olden days you used to get 5% or 6% on just bank money and that doesn't exist anymore. Because of our financial indebtedness as a nation, interest rates have to remain low to finance debt and so we're not paid to save. And so really whether you do the life insurance strategy with us or not, we try to teach you how to get all of your cashflows to do one thing. I'm so anti diversification, there's kind of two parts to uncommon banking, but in that getting money on liquid cash and as business owners and entrepreneurs, we need to sit on more cash because we're taking risks in a different way than most people.”

#2: Real Estate

"The second one is real estate because we all buy a home. The tax code is geared for owning real estate, more so as rental properties or commercial, that type of thing. So it's not primarily focused on your primary residence; it's more focused on outside of your primary residence."

“You want to get there faster with less risk. So we're all on the same team to do that. That's what's easy for me as I just always say, ‘numbers don't lie.’ Let's take that from an emotional decision of buying a real, a rental property that you've never done before.”

#3: Investments

“I think our competitive advantage is not only just having a set of listening ears and all of that, but we fundamentally realize that the stock market is not the best investment.”

#4: Owning a Business

“It was just apparent to me that a lot of the people that had millions of dollars, in almost every instance, it was built through owning a business. So in that, I learned at a young age that owning a business was super powerful. I love business. Philip loves business. And then I spent about five years at Deloitte and Touche and consulting, auditing companies like Union Pacific, picture, Hathaway, Geico insurance company to name a few. I mean these are fortune 100 companies and seeing how businesses run.”

#5: Subscription Model and Affiliate

“And so we have a subscription model, which is how we get paid to give that advice and help you take action on the ideas. You just want someone else to tell you that you're not crazy. Right? And by crazy, what you mean is this is the part that you appreciate it even though we're not quite there in the process yet. We're kind of in the ‘dream’ stage and it's basically saying, hey, let's take what you want to do and I'm going to run the numbers on it and I'm going to show you based on what you have now, how long it would take to get there.”

Today’s podcast will dive into the meat of the five streams of wealth. Duhearst and Ramsey dig into their own experience in harnessing this kind of financial stability and provide examples of how it can be done efficiently. Tune in to learn more about how you can think differently about your financial livelihood, what you want out of your businesses, and how it all interlinks and goes together.