“Sometimes when you’re under pressure, you tend to make poor decisions, especially if you have to go into equal or […]

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 “Sometimes when you’re under pressure, you tend to make poor decisions, especially if you have to go into equal or greater value, which is equal or greater debt.” David Young brings a wealth of knowledge and experience of over 25 years in the investment world as a financial advisor and so much more. He is the founder of Anfield Capital which is actually in Southern California.

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Overcoming False Beliefs of the Deferred Sales Trust with David Young

Brett:

I am excited about our next guest. He brings a wealth of knowledge and experience of over 25 years in the investment world as a financial advisor and so much more. He spent 15 years with PIMCO and was close with notable investors such as Bill Gross, Paul McCauley, and Mohamed A. El-Erian. His career at PIMCO spans several assignments, most recently serving as the executive vice president of account management, covering a range of family offices and institutional clients, including Abu Dhabi Investment Authority, Intel, United Auto Workers, three incorporation, and others. Now he is the founder of Anfield Capital which is actually in Southern California. And he’s reignited a brand new firm that I think opened up now just in the last year or two. And he says, tell us a little bit more about his vision for the company and how he can help you create and preserve more wealth. Please welcome the show with me, David Young. Hey, David, how are you?

David:

Great student. Great, Brett. Thank you. And thanks to everyone listening, watching.

Brett:

Excellent. Yes. And by the way, you can find David Young and his team at Anfield capital. I believe it’s LLC.com. Is that correct? Angel capital?

David:

Yeah, that’s right. Exactly. Anfield Capital LLC.com.

Brett:

Excellent. So David, David, would you give us a little bit more about your story and your current focus?

David:

Sure, happy to. So I’m sort of one of those investment geeks, I must admit proud of it. spent my entire career in the investment management industry with, some cases small firms in some cases, large firms Smith, Barney Harrison up, you know, back in the day, that was the mid-80s. I’m dating myself, and then you know, for quite some stretches at PIMCO Pacific investment management company which is a fixed income, it’s an asset management giant best known for their fixed income or you know, debt investing work for the firm’s along the way and started in field capital, actually Anfield capital a little over 10 years ago now, the more recent activity is with the estate planning, team DSP, wealth management, so we can talk a little bit about what are all those acronyms? And what’s all that about? So that’s me, sort of, you know, MBA from the University of California at Irvine did rejoin the finance faculty there, gosh, probably it must have been 2008. Nine, I was after leaving PIMCO. One of the reasons why I left PIMCO was to start to reinvigorate the career redirect, I should say, we can talk more about that. And yeah, and then and then read about the time decided to start and field Capital Management. So it’s been exciting stuff, it was all about, you know, rediscovering my passion for the science and art of managing money. I’m a trained economist, and found the best or most interesting application to that. You know, the dismal science as some call it in the field of investment management and that’s what we do native of Liverpool, England, hence the Anfield Capital being the name of the firm Liverpool is located in an area or near a city called Anfield and I’ve lived in several places around the world in the US and Europe in particular, but I’m here in Newport Beach, with my Wife Sandy and just enjoying managing money and helping clients.

Brett:

It’s a beautiful background and a cool story. And we’ll dive into a little bit more about those particulars in a minute. I want to take one step back, though, and help the artists get to get to know you a little bit more. You know, I believe we’ve all been given certain gifts in this life. And I want you to kind of go back to maybe it could be the university days, it could be the high school days, it could be younger, right? And I believe we’ve been given certain gifts and these gifts are given to us to be able to be a blessing and help for others. So maybe what were those one or two gifts days that you believe you were given? And how does it help? How do you bless others today?

David:

Oh, gift, Sir. Yeah, that’s a tall order to think about that. I don’t tend to think of myself as gifted. humble, maybe that’s a gift. No, I think so. I was a late bloomer in life. And for all, you late bloomers out there, don’t worry. It’s okay. Sometimes it’s better to wait. And, and yeah, much to the concern and dismay of my parents. More than one time, I’m quite sure. It was like, you know, to see the talk, see, okay, super quiet, which you would not believe now everybody’s like, not believe that, you know, so that’s okay, you know, things changing, like, but I think Adam that spending a lot of time inside my head being a bit of a late bloomer, I spent a lot of time in my youth, watching, observing, listening, beautiful thing, just taking it in, didn’t feel the need to necessarily talk a lot or participate, you know, necessarily. So I think that kind of maybe keen observational skills about people, about markets, about portfolios about numbers, and being able to try and figure out what separates what matters from things that maybe don’t matter. And in the modern world, there’s so much going on that ability to just pause and focus. And I think it is a gift. What else would I comment on? Yeah, I think if I may be allowed a second gift is a can-do attitude. I’ve always said, If you want something done, ask the busiest person, you know, and I’m typically one of the busiest people that many people know. And so the can-do attitude helps me be positive with others, and say, you know, let’s not get hung up on the problems, the challenges, the impediments. Let’s see if we can find a way past. No, let’s see if we can find a yes, let’s see if we can find a way to make it work. I’m going to be careful with that one. Because sometimes the answer is no. And in my journey, to become a better person, and I’m still trying to find the blend. Yes, all the time is not the right answer, either in business or in life. It’s that, you know, careful application of the occasional know, that puts things in balance, maybe those two things.

Overcoming False Beliefs of the Deferred Sales Trust with David Young

Overcoming False Beliefs of the Deferred Sales Trust “There is no worse tyranny than to force a man to pay for what he does not want merely because you think it would be good for him.”― Robert A. Heinlein

 

Brett:

Very well said and so much wisdom there. One of the questions that come to mind comes to mind here is keen observational skills. So how have you improved? Or built upon that strength over the years?

David:

Have I built upon it? Yeah, I think still learning less is more still learning, keep it simple. Delete the stupid part off. I mean, they’re learning how then what you have to do is learn how to balance that with communication. You can’t just be taken and then take it in, we’ve got to find a way to now say, Okay, let me share, right, it’s the sharing part, right? So it’s not selfish anymore. The observations and share them in a way that other people can understand them. Not that I’m any smarter than it’s not about that, right? It’s about bringing them into that perspective, you gained through that observation, and then say, Okay, now what do we do with this information, right? How do we get a better result for you and your investment portfolio? How do we get a better tax mitigation strategy? How do we just have a more interesting conversation if we’re just sitting around talking?

 

Brett:

Very well said. And very, very, very simple write taking, taking down what can be complex, making it simple. And then creating an environment where you can share that right, and then apply it and if someone’s, you know, I think a good financial advisor or consultant comes alongside and shows and kind of guides and then says, What do you think and you’re right, it might be some nose, it might be some yeses, but if you’re not getting the nose, perhaps you’re not getting to a good, yes. Right. So it’s important to work with the client and to work through the communication and then to apply that. Thank you so much for sharing that. So when did you become fascinated and are obsessed with helping others achieve freedom with their wealth through investments?

David:

Well, let’s see. I think there’s probably some kind of a little more righteous answer. And then I think there’s frankly a little more selfish answer. At the end of the day, I’m building a company. And that means you need to have clients and assets, which is typically how the compensation works, right? You get paid a small amount of a percent to manage the money. And so you look around and you say, Where can myself and my team because we do have a pretty good-sized team, all very experienced, very professional, similar mindset to myself and Brett now, this is how we all gravitate together. And the good people find each other. There’s a way I don’t know how it works, but it works. And so the selfish part of that is seeing an opportunity to combine our skills and expertise, some of the qualities we’ve just discussed, with a need in our clients to build a business. That would be that part. I think that the other part is identifying that done right. wealth transfer, unlocking the value embedded in assets, through the right kind of transaction doesn’t have to be complicated. That’s observational, bring it all in, boil it all down, turn it into a solution, right? A great, that’s all great. What do I do with this? Number one, I think that, yeah, and the way the assets are managed inside these trusts, once they’re there, they’re stuck, again, doesn’t it’s not magic, it doesn’t have to be super complicated. It doesn’t have to be super expensive, it doesn’t have to be, you know, accessible. Also, probably the third point only to the very large like, like the really rich people know, there’s a strategy in here that can help a lot of folks, I mean, just the guy down the street, or the lady on the other, you know, across town that owns a business or a home if it works for them, too, because it’s accessible. So I think that that’s maybe kind of the application for helping clients.

Brett:

Excellent. So what’s the biggest secret to unlocking value in the investments? Walk us through those were the aha moments that you’re helping clients to have either and maybe not just be in the investments, but it could be their portfolio, it could be their assets and walk us through if you know, perhaps we’re meeting for the first time? And what might be a question or two that you might ask me to try to try to open up the possibility of unlocking that value there?

David:

So let me ask a clarifying question, Brett, so I make sure I answer it properly. Do you mean the transaction to let’s just say they’re selling a piece of real estate? And then putting that in a trust? And now there’s money cash in there that we can do something with? Or do you mean about how that money might be managed?

Brett:

The latter because we’ve talked a lot about the former on the previous one. So this will be more of the latter. 

David:

God, okay, so I need to be clear, good because I know more about the latter than they did about the former. So I was just a little nervous. When we stop, maybe as with many things in life, pursuing the payoff. Right, the big returns, I need 10, 12, 15%, I need something very complicated. I need a custom strategy. Because you know, my world is complicated. The entire world is complicated. When we stop pursuing those which, frankly, are a little bit based on ego, and we see that we all have an eye on it. Then we start to focus on what matters, which is managing the risk part of the conversation, boring, but it’s what matters. So I’ve learned two things in my career managing money. Number one. Focusing on risk allows you to take advantage of naturally occurring return opportunities. So you’re not chasing the return opportunity. You’re taking a sensible amount of risk. And you’re allowing the market to compensate you in its natural way. And it’s lumpy and disruptive and sometimes a little nerve-wracking, but it’s a better way. So we focus on determining how much risk we need to take and how much risk the client in the transaction can comfortably sort of coexisting with and then building a portfolio that will optimize the return, we hope to get no hope. It’s for my compliance officer. Hope to get based on that sensible amount of risk. So it’s a risk-based approach, not a chasing return approach. Number one, number two, the single most deterministic aspect of good investment management and good investment strategy. It is not forecasting interest rates or the stock market or technology stocks or any of that stuff. It’s really, really simple. It’s also I think, one of the most scarce attributes in the investment management world. And I know many of my colleagues very, very well. It’s patience, the patience born of conviction. When you take a high conviction position, and you take it in your personal, sorry, we’ve got these fires here in Southern California, which is a separate discussion. And so there’s just the air quality slow. You take a high conviction position in anything in your life, in your relationships, in your business, in your workout, your diet, and your faith. You take a high conviction position, patience comes easy. But it’s combining those two in the right manager. So patience is critical in helping our clients understand, you took the minor right amount of risk-return will come your way. But we need to be patient. Maybe you’re looking for things like, you know, price, equity ratio, or earnings or things like that, but I don’t think that they matter over a reasonably long period.

Overcoming False Beliefs of the Deferred Sales Trust with David Young Part 1 Click To Tweet

Brett:

Yes, well, very well said. And I think that patience is probably the most challenging virtue and today’s rapid pace, technology, information-packed environment. I think a lot of wise people have said it’s no longer an information age, it’s an intention age, we’re way past information is the ability to capture tension. And that I think, is the biggest challenge to patients. So I love the way you said that born on conviction or high conviction. Foundation, you know, in other words, let’s imagine you’re building your mindset for investing. If you can build it on a foundation of patience you are going to have a solid and conviction, right conviction, I guess, is maybe the better word. And then you’re gonna have a big, you know, the second floor is gonna be better to have patience. Is that a fair summary of the last point?

David:

Yeah, I think if you have, when we talk all the time in the Investment Committee about let’s be about high conviction, trades, high conviction, you know, positions. And if we can’t get to a threshold of high conviction, then we know that our patience will wane, right? Because maybe we didn’t have that to get a commitment. It’s important in life, it’s important in everything, it’s very important, very scarce in investing because we all want that quick payoff. We all want that hot second-quarter number, you know, we can go tell everybody how great we’re doing. And it’s oftentimes part of falling.

Brett:

So the ego and pride part, the emotional part of it, the discipline, part of it has so much more to do than maybe perhaps just the numbers that a fair summary.

David:

At least a fair summary, look at some of the Great Investors of all time, my former boss, Bill Gross, you know, Bob Miller at Legg Mason, you know, Warren Buffett, right? If you peel apart even back in the day, Peter Lynch, you peel apart? What’s at the crux, it sounds so trite to say it is a high conviction, long term strategy.

Brett:

So how do we nurture patience? and establishing high conviction, mindset, and discipline? What is it? What does Bill Gross’ do? You know, you’re close to him? What was Bill doing to nurture that and to practice that?

David:

Yeah. So it does help if we have some of the basic principles of investing. And a lot of this everybody already knows, I will try to explain any of it. But diversification matters. Because if you can get enough high conviction ideas in a portfolio or an investment strategy, or in that DST, you know that trust, then it makes it easier if you have, you know, several different things going on diversification matters to help control risk and spread risk. That’s the risk part that we talked about in terms of that approach. So it’s structuring a portfolio properly. So you know, the portfolio allows you to allow it, to interact with the markets over time and do its thing so to speak. It’s I think, a discipline, a lot of vigilance. If you are, if you can watch the portfolio and Bill was, Bill would come in every day and just piles and piles. It’s more of a paper guy than a computer guy. Certainly a lot of time on the computer. Just going through manually, every account, hundreds of accounts, amazing, just mind-boggling. But immersing yourself in the numbers, and gives you the ability to feel confident, right, and where you are. And like I know the risks, I know what’s happening, I’ve got a handle on it all, I just gonna call that good old fashioned hard work, some of the observational skills we talked about before. What else? And then I think, oddly enough, once you determine that something isn’t working, and the premise was wrong, something in the hole in the world has changed. It’s not working out, and you do lose that conviction. And this is going to sound very sort of, you know, contrary to what I said before. Knowing that once you get there, you can exit that investment position that isn’t working properly, and not look back. It’s strangely freeing, knowing like anything I can get out at any time. And knowing that I will, I have the discipline to know when to exit. You know, a buy decision is important. A whole decision to be patient is important. But that personal commitment and discipline to exit when you have lost conviction, go with your gut because it is an important part of it. Strangely, that’s freeing and allows you to know, observe, observe the markets in the portfolio and watch them do what they do.

Brett:

So well said again, and that would be the second or third book you could write on all these topics. But it makes me think about what’s happening right now in the real estate market, and especially the values in, we’ve seen some all-time highs. And a lot of high nets worth individuals, or just folks that are just like you said, don’t even realize the wealth for or if it’s kind of the middle of the road, that’s still fine to a lot of it’s tied up in these real estate deals, right? And then they’re not diversified. And, you know, they’re subject to eviction laws and the rent control laws, especially in California and in different states. And it’s a challenge, I think, more than ever, it’s important to have liquidity, diversification, and the ability to have freedom, right, from having to feel like you have to be trapped by either tenant or the landlord laws. And that’s where I believe deferred sales trust such a powerful way to not only have a transaction, right, where you’re deferring tax but have a transformational exit plan to allow you to have, you know, wealth that’s built, building a new foundation of wealth that’s diversified. That’s liquid. So would you just speak to a little bit about that thought and your thoughts on the deferred sales trust? 

David:

Well, as I think I commented, before, it’s the fact that it isn’t magic, it’s very understandable makes it strangely kind of magical. Simple, very well tested, me and my team and in our business. You know, credibility is really important. And, you know, a wise person once said, you know, you’ll only lose your credibility once, so you’ll never get it back to it again. And so we spent a lot of time and effort studying the estate planning team, studying their approach, meeting with some of the trustees, getting to know and looking at, you know, it’s been looked at eight ways to Sunday. And it’s better than other approaches because it is simple, it doesn’t try and test the boundaries. If there are natural opportunities in the tax code, keep it simple. Keep it right down the middle in the bright sunlight. So there’s no, none of that other nonsense. I think it’s accessible. We talked about that a little bit before. I think these things can be done reasonably quickly. There’s this kind of, you know, Dream Team that’s been constructed, Brett’’s part of it, you can talk more about that. I mean, I’ve seen these things go from start to finish in a relatively short amount of time. You know, and freeing people up from some of the complications of the 1031 exchanges, and they got the window and the thing where they couldn’t find the pie, you know, it’s so simple, it’s so clean. And then once the assets get in there, there’s a reestablishment of cost basis and, and then there’s this real liquidity, transparency, ability to identify, you know, the place you want to be on the risk spectrum. And ability in some ways to get hit the restart button on that asset because all of a sudden, you know, all the issues surrounded with the tenants and the maintenance of it’s a piece of real estate and changing the tax laws and changing of, you know, accounting laws and whatever else. Those are all behind you now, right. I think those are some of the power points.

Brett:

Yeah, you’re right. And that’s the transformational part that changed it for me as well. When I was at Marcus and Millichap helping people buy and sell real estate before the crash of ‘08, a lot of them had bought and sold and overpaid, because of 1031. And this was there, you know, half or, or the majority of their wealth was tied into these decisions they were making that were forced I called the shotgun wedding, you have 45 days to get engaged and 180 days to get married. And sometimes when you’re under pressure, you tend to make poor decisions, especially if you have to go into equal or greater value, which is equal or greater debt. And so the deferred sales trust allows you to get out of debt. Diversify that. Okay, that’s no problem., diversify. But speak a little bit. You mentioned the, you know, staying in the sunlight. I think this is important. Because the biggest thing I think for a lot of folks who are learning with a diverse mind, they’ll stress for the first time and I imagine when you learn about it for the first time, too, right? There’s skepticism. Here’s what’s the IRS done? Why, why isn’t everyone doing this, right? And why hadn’t I heard about it before, right? So would you kind of walk through just kind of your journey of due diligence, right? And what that looked like too, so folks can kind of get that level of detail that you and Anfield Capital put in before, you know, joining the estate planning team and becoming one of the strategic alliances to manage the money.

 

Overcoming False Beliefs of the Deferred Sales Trust with David Young

Overcoming False Beliefs of the Deferred Sales Trust “You don’t have to see the whole staircase, just take the first step.” – Martin Luther King, Jr.

David:

I think. Goodness, we were probably first introduced to Bob Binkele. He’s the founder and president of the estate planning team. Two years ago, maybe a little more than two from memory. Impressive guy. The first thing we always do when there’s an important person who’s a sponsor, bit of a private equity investment or anything, or even just investing in a company like a company, you might go buy a stock or in our case, we do a lot of bond investing is we want to understand the sponsor, right? The person we’re dealing with, or the management of the company we’re dealing with, it’s a corporation, if we can get to know them, understand them and get into their mindset a little bit. And quite frankly, in that process, check them out. In the modern world, there’s so much information available. I think it’s easy to figure out through available, you know, online accessories, various regulators oversee various parts of the business, super simple was Google the person, even believe how many times we Google people, and it’s just like, oh, that’s not good. Oh, oh, my, oh, my, that’s not good. You want to make sure it’s the right person. But, you know, we checked out the people and we, you know, started to ask around and check on you know, Bob’s reputation and, and it just came back, sterling. This is just a sterling person, he says what he means he does what he says and you know, and so that was important, then we began looking at the organization, clean the whistle, then we began looking at the actual nature of the transaction if you will. And so for that, we did have to lean on some folks, I’m not you know, real estate person, many of these are real estate based, but they don’t have to be all arranged different assets can work. We, I’m certainly not a tax person or an accountant, that’s for sure. And so talk to folks, we know, they took a look at all the various reviews, there’s, you know it’s been reviewed by every three or four or five letters, governmental agency, you know, in a regulatory or oversight context, you can imagine the IRS being, of course, the most important one, you know, letters of review, no issues. And it just sort of started to put it all together. I mean, if you watch something for a reasonable amount of time, and you ask about it, or look at it from, you know, multi-directional, many different facets. If there’s something there you’ll probably find it and in this case, there’s nothing there and it all makes perfect sense once you have that transaction I’m kind of visual in many ways too. So you know, I remember Bob and I have little boxes with arrows and dotted lines and okay, this goes in here and that’s what happens here and that goes over there, and understanding it structurally makes sense.

Brett:

Very well said, and came here right it once you kind of get I call it to ride the bike right the first time he rode the bike or your advice has never ridden the bike, it’s gonna be a little wobbly because you’ve never done it. But if you can get along with someone who’s already been riding and riding it for 25 years and 1000s of closes and you know, the over a dozen no change IRS audits in the large deals and oh, wow, this guy these guys are speed riders, right? I can learn how to do that. And yeah, you can know with our help will help you guide that and on your first one, you’ll be getting going fast. And before you know it, you’re jumping on the speed bikers and yours, you’re as fast as anyone else. But yeah, it does have a learning curve and it is proprietary and it is protected. And so it’s also a part of acquiring, where we want to make sure that it doesn’t get into the wrong hands and it doesn’t get abused. And as well. We also don’t want the competition. So those are two things that helped to keep it in a sense kind of contained in where you don’t have, you know, three or 400 law firms all offering it, it comes down to one law firm and, and then strategic alliances that work across the nation with them for their clients and but 1000s of business professionals and who have joined in the estate planning team as a whole. Any last thoughts on that? Before we move on to the next topic?

David:

I think the last thought would be yeah, looking at the people who are involved. People like yourself, Brett, you’re a very honorable, credible individual, tremendous experience, great reputation. And just down the list. And, you know, I said before, I think good, good people have a way of finding each other. And I think good people also have a way of, you know, of distancing themselves from things that maybe aren’t good. And so we don’t have to ride the bike for the whole journey. We can talk to some of the other bike riders.

Brett:

Yes exactly. That’s great. Well, thank you for that compliment. I appreciate that. And likewise, that’s why we’re so excited to be able to work with the estate planning team and yourself and the law firm who provides all of this, it’s just a great group of folks. So what’s been the biggest mistake a client has made as it pertains to capital gains tax deferral? In other words, what’s that story? Where you thought, I wish they would have known either about the deferred sales trust, you know, like, oh, what was that story that really would have made a huge difference had known about the deferred sales trust?

David:

I think probably the obvious one, which is waiting too long, going too far down the path. You know, there’s probably a gray area, which we don’t tend to be anywhere near that gray areas when you’ve gone into the process of maybe there’s, you know, letters of intent or other things or where the potential sale is simply too far progressed, right? And then it’s like, no, this is not supposed to be a, I sold my house yesterday, can I stick it in here real quick and get around? No, no, when we hear get around? That’s no, we’re not getting around, right? This is a specific set of steps that have to happen in a specific order, with some reasonable amount of time. And so it’s just like, like that thing. It’s just planning. It’s getting out ahead of it’s asking the right people if you think it’s the right solution for your early start often, you know, and be very methodical and organized about it. So yeah, it’s a shame. We have one, one client now is managing the money and, and it didn’t come out of the DST transaction. They were too far down the path. They’d already committed. We must, we can’t, it’s too late. And so they were so pleased with our guidance and being forthright and that they have other real estate and other things that they want to transact. And they said, well, okay, alright, well, next time, we’ll do it right. We understand now, we didn’t know about it before. And they said, well, will you manage this money anyway? The after-tax money is? Sure do. You absolutely can do that. So I think that would be one comment. I think the other comment would be well, maybe there were two parts of the question, I want to make sure I’m answering it.

Brett:

Yeah, do you well, just that was a story of a client who is too far down and, and for those who are listening, you know, we can save a failed 1031 exchange. So that is a nice part of it, depending on the timing of that as well. So for investment, real estate owners who happen to be the 1031 good, but everything else we got to do before the close of escrow not only before the close of escrow but before the buyer removes all contingencies. And that’s the key thing, what the IRS looks at what’s called constructive or actual receipt. constructive means there’s nothing for nothing that’s going to withhold you from taking, you know, these funds in the next 7, 10 days, whenever it’s going to close three days. And how did not set up the trust before that point? That’s the window where we’re gonna get trouble. So you got to, you know, we want to be early, set it up, you know, sometimes even before even a listing goes on onto the marketplace and keep yourself, you know, the earlier the better. And the neat part about us too, is we don’t charge unless you do the deal. So it’s no-cost due diligence. And it’s also a no-cost in case the buyer doesn’t work out. So no, no, you shared it very well. Well, David, any thoughts there? Are you ready for the lightning round?

David:

No, I think the other comment would be although it might be getting too technical might be for later, then it’s just a realistic understanding of what can be done, with assets that are in the trust. We see folks are like that, so here’s what we’re gonna do. I’m going to, I’m going to sell my house to the trust. And then I’m going to have my, you know, son or daughter live in the house and not pay rent. And then I’m going to like no, no, no, no, no, no, again, what would you get around? No, no, get around? No, get around. Do it right.

Brett:

Do it right. And to that point, he means 100% investments, right? So the IRS gives a study of macroeconomics. They give these tax loopholes, legal tax loopholes, not to get around but to incentivize the economy to grow and grows the economy, which grows jobs, which grows tax revenue. And so as long as investments, right, our business purpose, then the IRS likes the deferred sales trust. But yeah, as soon as you try to make it like personal property, the same reason you can’t 1031 investment property into a primary home because that’s just primarily it’s personal property, they’re gonna say, That’s not enough of an incentive. That’s just a personal pleasure kind of thing. So just pay the tax. By the way, you can cash out of the trust and pay your tax and go buy that fancy house or that fancy card, it’s not prohibiting you do that you just have to do it in that order, cash-out to the tax didn’t do it. Now try to use tax-deferred money to do that. So those are all the things that we can guide you through and show you. With that being said, Are you ready for the lightning round? 

David:

I’m ready.

Brett:

All right. So knowing what you know, now, David, if you can go back to your 25-year-old self, what’s the one Golden Nugget that you would make sure that you would do?

David:

One thing that I made sure that I would do again, maybe some more philosophical than anything. We’ve discovered over time, that people don’t know what you’re thinking. And they don’t know what you’re feeling. So if you want them to know what you’re thinking or feeling you need to tell them. And if you don’t know what I want them to know what you’re thinking you’re feeling, you should not tell them?

Brett:

Yes, especially in the book, people don’t know what you’re thinking or feeling. And if you don’t know what if you don’t want them to know that, then don’t tell them. But if you do, then go tell him. Very simple, and very well said, and that could be a good marriage seminar. I would think too, right?

David:

Maybe I don’t know. I think maybe my wife is whispering in my ear when I’m asleep. And that’s where I got that idea from. I don’t know. But yeah, and I think just, yeah, just the importance of credibility. You only get it once it takes a lifetime to earn it takes you to know, one inadvertent or although usually there’s forgiveness there or intentional then and then not you can ask forgiveness, mistake, and then it poof. I’ve seen folks ruin entire, you know, careers with a credibility building by one, you know, you’ll conceive of an idea or overzealous action. And it’s just such a shame. And so I and my team along with the PT and others that are involved, it’s just credibility is just paramount.

Brett:

Very well said, I think a good quote for this credibility is never owned, it’s only rented and the rent is due every day. And so and you can do that with anything if the integrity is never owned, it’s only rented and rent is due every day. So moving to the second question, what’s the one book you’ve recommended or gifted the most in the past year?

David:

vercoming False Beliefs of the Deferred Sales Trust with David Young

History of the United States by Milton Friedman.

So this is the downside of being an investment nerd. Every I don’t read. Well, I read all the time, like constantly. So my idea of relaxation is not reading. When I read a book, it’s things like, you know, I don’t know, monetary. History of the United States by Milton Friedman. It’s not a page-turner. It is not. So it’s nothing that I think if I wouldn’t, I wouldn’t do your listeners and watchers, the injustice of recommending any of those books. You want to talk about music, that’s my outlet. I’m struggling to learn how to play the guitar and it is not going well. I have a terrible singing voice, even in the shower, which is hard. But I would typically listen to music all the time if I didn’t have to work.

Brett:

Beautiful. No, that’s well said, I appreciate that I should maybe have that next question. What’s the one, you know, album or, or artists you’ve recommended in the past year. Next question, though, give me mobile or digital resources you recommend for your business?

David:

A mobile or digital resource for our business? Well, I think there are some readily available online information sources, not specific Banfield capital, but just like a resource, anybody can use. Yeah, I think some of theirs, to this day, 30 plus years in the business, I went online to it’s called Investopedia. Just in Investopedia, like encyclopedia and investopedia.com. And I have I get a word of the day, which is like the calendar, right, and the vocabulary building counter. And then some other things, I have several different publications, just to help people learn, I have all of my younger staff say go to Investopedia sign up for these three things. Just that drip, drip every day, I learned a new word. I know many of them, but it’s good reinforcement. I think things like Yahoo Finance and other online, you know, market and economic things advisorperspectives.com is another good source. Lots of interesting, easy to read one and two-page articles, thought pieces about either the market or about investment strategy or about, you know, ways to defer capital gains in transactions and accessible, easy to read. And I would encourage people to if you’re interested in, if you have investments, you’re interested in markets, there’s such an interaction between markets and politics and society, even more so every day and in the world is so global. Those are three easy ways to just kind of stay in touch.

Brett:

Beautiful. Yeah, and this will be our last question. And it’s centered around, after all, your success and being will help so many people. And now being where you’re at now, how do you stay centered in your values? And then how do you stay encouraged to reach for new heights?

David:

Centered in the values and reaching for new heights. So yeah, I figured out a while back that the endless pursuit of money, like that kind of enrichment. And they suddenly got like, I have all this money, right? I mean, we are comfortable. But I’m just over time de-emphasizing that and realizing that health, family, friendships, they’re the things that endure, part of that is professional credibility, reputation. And so spending more time focusing on those and trying to, to, you know, sort of a journey of enlightenment and being a better person. And so those are sort of my missions. I have financial goals like everybody does. But it’s understanding that those come in time and there are good times and bad for us like everybody else. This is a 2020 tough time. And so I think also, I’m deriving enjoyment from mentoring and growing people around me. I think sometimes I drive my staff crazy because I’m Professor Young. And me coming out again, let me tell you before I’m not teaching currently, but I’m in the faculty at the Merage School of Business, University of California, Irvine. And giving back by mentoring and training and cultivating others. I think that’s, that’s important to me.

Brett:

That’s beautiful. And I appreciate you sharing that. And for our listeners, that’s going to wrap up the show here who want to get in touch with you, David, what’s the best place for them to find you? Could you remind them one more time?

David:

Sure, the company website is A-N-F-I-E-L-D LLC.com. And I’m sorry, it ends in a capital, AnfieldCapital.com. I went to the website wrong. You can also call the general number 949-891-0600. Susie or Natasha will answer they’re very nice. They’ll track me down. If I’m around. I’ll chat with you. If not, I’m sure they can answer most of your questions probably better than I.

Brett:

Well, thank you, David. I want to thank you for sharing so much wisdom, sharing your insight, sharing your experience with a deferred sales trust. And being a part of the Dream Team nearly now and I’m excited for all the folks that we can help together. And thank you for being on the show and, and in fact, encouraged to keep using the gifts you’ve been given to bless others and help others, especially as it pertains to the discipline of patience, right, and don’t forget. And I am a fighter, not trading the joy of the big return with our ego, right. But we want to trade that for the joy of, focusing on risk, right? I think that’s kind of a real theme that I’ve got that I’ve built in this. And so keep using those gifts to bless others. And thank you so much. And with that, I also want to thank our listeners for listening to the episode of the capital gains tax solutions podcast. As always, we believe the highest net worth individuals and those who help them struggle with clarifying their capital gains tax deferral options, not having a clear plan is the enemy using a proven tax deferral strategy, such as the deferred sales trust is the best way for you to grow your wealth. If we can help you at all you can go to capital gains tax solutions.com that’s if you’re selling a primary home, a business investment, real estate highly appreciated public stock, you name it, it has capital gains tax with reverse sales trust, maybe it’s the best fit for you, you can go to capital gains taxes, calm, schedule your one on one consultation and learn more about that. And with that, goodbye, everybody and thank you so much.

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About David Young

Overcoming False Beliefs of the Deferred Sales Trust with David Young

David Young is the Founder and Chief Executive Officer of Anfield Capital Management, LLC. With over 30 years of investment experience, David has worked with many of the largest and most sophisticated institutional and private investors in investment strategy, portfolio management, and asset allocation.

 

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