Stephanie Walter started her insurance agency in 2005. Along with building her agency, she began following her passion for real estate and investing in commercial real estate to generate passive income.

This led her to found Erbe Wealth and authored The Insurance Professional’s Guide to Real Passive Income which outlines five steps any insurance professional can take to reach financial freedom through passive investing.

 

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Reason Not To Put Your Money in a 401K with Stephanie Walter

 

Brett:

I’m excited about our next guest. She’s in the great state of Colorado, and she started an insurance agency in 2005. Along with building her agency, she began following her passion for real estate and investing in commercial real estate to generate passive income. This led her to founding Erbe Wealth and offering the insurance professionals guide to really pass a guide to real passive income, which outlines five steps any insurance professional can take to reach financial freedom through passive investing, and so much more. Please welcome the show with me, Stephanie Walter. Stephanie, how are you?

Stephanie:

I’m great. How are you doing?

Brett:

I’m doing fantastic and glad to have you on the show, we’re gonna be talking about reasons not to put your money into a 401k as well as multiple streams of income and ways to do that with Stephanie Walter. But before we go there, Stephanie. I want our listeners to get to know you a little bit better. Would you give us a little bit more about your story and your current focus?

Stephanie:

Sure. I started just out of college, working for a big insurance company, realized within the first few years of getting the 2% raises, that just wasn’t for me. That time I quit and started my insurance agency here in Colorado. I’ve always loved real estate just hadn’t had a lot of education about it. I just kind of went on my gut and just got very fortunate to have invested largely from 2005 to 2009. Just in 2016 got very curious about, doing things bigger on a larger scale. That’s when I learned about syndications really did a deep dive, in learning about those, and completed my first syndication in 2018. I realized after doing it by myself that I did not want to continue doing all the elements of syndication by myself and realize that I really enjoyed raising money, and just from there on, I’ve just really, that’s what I’m really focused on is raising money and educating investors and I just get an I enjoyed that very much, and I was just able to sell my agency and July 1 of this year, and I do this full time, I guess you’d say. Though, I don’t work full time.

Brett:

Amazing. Thanks so much for sharing that. By the way, you can learn more about Stephanie Walter at ErbeWealth.com. And you might be wondering, how do you spell that it’s E R B E wealth.com. So, Stephanie, I believe we’ve all been given certain gifts in this life. I want you to go back perhaps to your high school days, college days, go back ways, you know, and some people call these things strengths are superpowers, and I believe their God-given gifts, and they’ve given to us be a blessing and help to others. So I’m just curious, what are those one, two strengths or gifts that you believe you were given? And how does that help how you help and bless people today?

Stephanie:

I think the gift of communication is for sure. But also, I think, the gift of hard work and determination, which I got from my dad and my grandfather, just very, very hard worker, I’m able to really, have that entrepreneurial spirit, which I think at the end of the day, I have no question that what I do now affects so many more people than had I stayed in a regular W2 job not that there’s anything wrong with that. But I just really enjoy opening up new ways people can make money that they never thought of before.

 

Reason Not To Put Your Money in a 401K with Stephanie Walter

Reason Not To Put Your Money in a 401K: “The difference that I learned between people who succeed at a high level and people that don’t – is that people who succeed at a high level: learn from their failures, get up and go on.” – Gary Keller

 

Brett:

Beautiful, absolutely love that gift of communication, hard work and dedication, and opening up freedom and opportunities to make a big impact on a big scale. through new financing and passive income streams and such, so let’s dive right into the topic at hand. Right, which is, first of all, reasons not to put your money in a 401k we’ll start there, and then we’ll talk about multiple, income streams, with Stephanie Walter. So what’s the number one secret Stephanie to or even the number one reason not to put your money into a 401k?

Stephanie:

Well, that took me some time to get to understand and it largely came from me working with my very wealthy investors, and I would look at over there, you know, investments and what they had going on. And it really surprised me that, well over probably 90% of them had no 401k. And that of course was towards the beginning of my career of raising money, and just kind of looked into that further. And when to read a lot of different books and understand why. And the reason is, is that wealthy people like their money to be working for them at any amount of time, they don’t want their money to be set aside in a place where they can’t touch it, and it can’t be actively working for them generating most of the time generating a cash flow that comes to them. They view money as something that they want to be working for them. They don’t want to, they also want to, they’re very clear about how much their money is making at any time, and how much they have. And I think the largest question on the 401k side is, if someone has 500,000, in their 401k, in 20 years, how much do they really have, you have a financial planner that can give you an idea, but it’s all an idea, as well as we have no idea what the tax ramifications are going to be? And that is just something those two things keep I think wealthy people out of investing in 401k’s.

Brett:

Very well said, Yeah. So many interesting thoughts there. So yeah, I’ve always loved the ability to invest in cash flow, producing real estate, something that you can control or add value to something that you can take over the management if you need to, something you can add such as apartment complex, you can also move into it if you ever needed to, right I mean, so many ways, and then also tax advantages for depreciation offset income and, and hopefully the 1031 exchange standard stays around. And Biden doesn’t limit it so much that it gets eliminated. So lots there. But I also shift I went from forgetting the 401k. And the other reason I wouldn’t forget that, and even the self-directed IRA, I just cashed out of that. Because what I found was, I was like, you know what, I’m 38. And a couple of years ago, I was like, I don’t want to wait for tom like 60 or 70. I don’t have to wait to potentially have freedom with my family, and my next business venture and not be able to enjoy the wealth now. I don’t want to just park it there. I don’t know, I might even live on 60 or 70. Who knows? So I said, you know what, I’m gonna focus all my attention on cash flow producing real estate in my own business venture. I can build wealth now, that could help me Give me five or 10 years back because one thing we can’t get back in time. The one thing that no one can get back. And if you’re having to put into this retirement account, that typically you’re going to have these penalties if you take it out, you know, you’re gonna hit with the big tax ramifications. It’s can be a big challenge. But most folks are, I call it the blockbuster way of planning. They’re just that’s what they’re taught to do. Should you just do these certain things, but I’ve shifted. So any thoughts on that Stephanie?

Stephanie:

You mentioned two really great points is one of just the tax, that just mentioning the tax issues in the future? People are always like, well, what do the wealthy do? That’s different? I think I’ve mentioned a few things. They’re very concerned with what their money is doing at any particular time. They want control of the money. But secondly, they want to know, they are always mitigating their taxes and people are, people have feelings about that one way or the other. But it’s incredibly smart when you think of how much of your money gets eaten up by taxes. If you come at your investments from a two-pronged approach like that, you’re going to, you’ll do amazing actually.

Brett:

So longer about cash flows about tax flow, especially taxes in potential providing proposing to from 20 to 40%. And Capital Gains Tax Rate and increasing the income tax rate. So cash flow is definitely important. That’s like step one, and building your portfolio and getting asset protection and getting, insurance stuff, everything to get that in place your living trust in place but then when you x We believe using the Deferred Sales Trust is awesome because now you can capture high value, pay off debt, defer your tax also move funds outside of the taxable state. But then you can start to tax flow engineer how you receive when you receive income, which is also very really great. That being said, Stephanie, for those, like the steps of someone working with you, so sounds like that sounds great. I want to check out what Stephanie has to offer different things, talk about maybe a Commercial Real Estate deal that you kind of how you vet it, what you look for, and how they can work with you.

Stephanie:

We look at, hundreds of deals, largely where we’re working our markets right now are in Florida. And we’re extremely conservative, with our underwriting. My partner that I work with is, looks at the deals is given a lot of off-market deals. And quite honestly, we’re very, very selective, we probably will have about maybe two or three deals that close in a year. Because that’s how selective we are. We want to be sure that they’re in markets that we understand, especially from coming from COVID. We made we purchase some retail, largely we purchase multifamily, but we did purchase retail in 2019. And that was in Florida, and thankfully that I think COVID just really solidified that your market and what’s going on in that economy. If it’s pro-business, just how the government is supporting things is huge, a huge because all of our properties in Florida, we never missed a distribution payment. They continued to cash flow because Florida was able to largely stay open regardless of political opinions about that. It’s really important. I tell people that are betting these deals as investors to really look at those markets and what’s going on in that government because that we saw firsthand how important that is.

Brett:

I couldn’t agree with you more, by the way, can learn more about Stephanie Walter ErbeWealth.com. Stephanie ran out of time. Are you ready for the lightning round?

Stephanie:

Yes.

Brett:

All right. Now if you can go back to your 25-year-old self with one Golden Nugget, make sure to tell yourself to do.

Stephanie:

Jump into syndication fully start raising money start raising capital immediately. Go big for sure.

 

Reason Not To Put Your Money in a 401K with Stephanie WalterBrett:

One book you’ve recommended to give to the most in the past year.

Stephanie:

I love Killing Sacred Cows by Garrett Gunderson fantastic book about the wealthiest philosophy on money.

 

Brett:

Perfect. The biggest frustration with the 1031 exchange?

 

Stephanie:

I think my biggest frustration is that they’ll be you know, that they’re talking about eliminating it or greatly reducing it. So that’s, that’s a real frustration. But I don’t think people should, you know, obviously what you’re doing is awesome. also getting involved with people that really take advantage of cost segregation can be a huge, huge benefit. But, don’t give up on real estate if they try to change some of these things around because there’s there are always other options.

Brett:

Absolutely. By the way, what Stephens referring to what I do is the Deferred Sales Trust we do help people eliminate the need for the potential to exchange works for cryptocurrency primary homes real estate, you got a capitalgainstaxsolutions.com. Its capitalgainstaxsolutions.com. Next question on the lightning round. Stephanie is this. What are you most curious about right now?

Stephanie:

Curious about what I think just like everyone else, like what are all these changes in our economy going to happen in the next year to our I talked to a lot of really, really smart people, and I get a lot of really different answers. I don’t get anything consistent, like our interest rates going to go up? Or they’re going to go down or what, are these different asset classes? How are they going to perform? Are people going to go back to work in the office spaces? So yes, I would love a crystal ball to know. What’s going to happen in the next couple of years.

Brett:

Amazing. We’re out of time. Stephanie. So for our listeners who want to get in touch with you. Would you mind one last time? One more time where they can find you?

Stephanie:

It’s www.erbewealth.com.

Brett:

Perfect. I want to thank you for being on the show. I want the gifts and talents to be given a gift of communication, hard work, and dedication. helping your clients get financial freedom through multiple streams of income, passive investing commercial real estate, finding amazing off-market deals in Florida using cost segregation so much to learn from Stephanie Walter today. Thank you for being on the show. And also want to thank our listeners for listening to another episode of the Capital Gains Tax Solutions Podcast. As always, we believe most high net worth individuals and those who help them they struggle with clarifying their Capital Gains Tax Deferral Options not having a clear plan is the enemy using a proven tax rochet such a Deferred Sales Trust is the best way for you to help yourself or your clients defer capital gains taxes differ millions of dollars and invest back into real estate or securities all tax-deferred, you go to capitalgainstaxsolutions.com. To learn more about that we’re also streaming on expertcresecrets.com so you can also check that out if you’re a real estate professional. Thank you so much everyone for listening and we wish you well.

 

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About Stephanie Walter

Reason Not To Put Your Money in a 401K with Stephanie Walter

Stephanie Walter started her insurance agency in 2005. Along with building her agency, she began following her passion for real estate and investing in commercial real estate to generate passive income.

This led her to founding Erbe Wealth and authoring The Insurance Professional’s Guide to Real Passive Income which outlines five steps any insurance professional can take to reach financial freedom through passive investing.

 

 

 

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