Richard Kasparian is the best real estate, financial wealth, crypto, and leading minds in the world where they share their ideas, deal stories, and inspiration. So together we make complex tax deferral strategies, simple and passive income plans, achievable him excited about our next guest. He’s out of the great state of New York, and the Long Island area. And he is focused on helping his clients create and preserve more wealth through financial services and sound personalized, customized financial advice, and he’s originally from the Bronx. 

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Truth About inflation – what you need to know with Richard Kasparian

Brett:

Hello and welcome to the capital gains tax solutions podcast where we believe the highest net worth individuals and those who helped them struggled clarifying their capital gains tax deferral options. Now having a clear plan is the enemy and using a proven tax deferral strategy such as the deferred sales trust is the best way for you to exit highly appreciated public or private stocks. Cryptocurrency businesses save a failed 1031 exchange. So you can defer millions of dollars of capital gains tax, and so you can create and preserve more wealth. Hey, I’m your host, Brett Swarts. And each episode I’m joined by some of the best real estate, financial wealth, crypto, and leading minds in the world where they share their ideas, deal stories, and inspiration. So together we make complex tax deferral strategies, simple and passive income plans, achievable him excited about our next guest. He’s out of the great state of New York, and the Long Island area. And he is focused on helping his clients create and preserve more wealth through financial services and sound personalized, customized financial advice, and he’s originally from the Bronx. And he’s here to talk about all things truth about inflation, what you need to know, as well as some things that you can take right now. practical steps, please welcome the show with me. Rich, Caspian rich, how you doing?

Richard:

Great, Brad, great to be with you.

Brett:

Absolutely excited to get to know you a little bit more. And for our listeners getting to know you for the first time. Would you give them a little bit more about your story and your current focus?

Richard;

Sure. Rich Kasparian. The company is Garden City Financial Group. I’ve been in the industry for many years. And my goal pretty much in our goal, Garden City Financial Group, is not only about looking at upside because everyone always talks about upsides in the market. But how do you preserve, you know, your wealth going forward? Especially in tumultuous times? Kind of like what we’re in right now?

Brett:

Thank you so much for that. You know, Rich, I believe we’ve all been given certain gifts in this life, and they give some given to be a blessing and help to others. So I want you to go back perhaps to your younger days in the Bronx, right? Maybe it’s the high school days, maybe it’s the college days. And I want you to think about maybe one or two gifts you’ve been given some people call them strengths. Some people call them superpowers. And what are those gifts? And how does it help how you help and bless people today.

Richard:

I would say, my father was very entrepreneurial. He had a brain that just always kind of kept going. And he was always looking at ideas and thinking about ideas. And I think that’s sort of takeaway going forward, you know, he had owned some businesses put me on sort of that trajectory. And I knew coming out of college, that down the line, I was going to own my own business. When I got into the financial services industry, you know, initially you’re working for people, you’re working for big companies. And sometimes you see an opportunity where you can progress going forward and help your clients. And lo and behold, years later, you know, we’re in a business that long. And that’s how it all happened. But I would say again, that was the starting point. My dad sort of in the entrepreneurial spirit, it came down to me.

Brett:

Fantastic. That’s a great spirit to have from a father at a similar similar entrepreneur dad, who helped inspire me to own my own business and do things. The way that could have unlimited upside, right, and be able to serve and use your gifts at the highest level. So that’s really cool. So I have an entrepreneur mindset looking at things in a different way. And that’s a great, great segue to the episode, which is the truth about inflation, what you need to know. And by the way, you can learn more about rich Kasparian by going to gardencityfinancialgroup.com It’s gardencityfinancialgroup.com, but let’s dive right into the episode here rich, what’s the number one secret to understanding the truth about inflation?

Richard:

Well, once the one secret is, you know, we talk about CPI, or the consumer price index that people really should understand is, is inflation high now? Absolutely. We go to the store, we go to the gas pump, supply and demand is a major problem. But one thing that people don’t understand is the calculations and how they arrive at CPI, or inflation is basically phony numbers. So So for instance, you know, men, you know, if you looked at inflation over the last several years, it always seemed to be in that two and a half percent range 2% range. It always sort of hovered in those areas, and a lot of people would ask me, Well, how could that be possible? Simple. How does that happen? Well, the way it happens is the components of the calculation. If there’s a disparity that’s big, they just take it out. So for example, years ago, everyone probably remembers there was a scare and mad, the Mad Cow disease. So beef had shot up like 25%, well, guess what was no longer a component in the CPI beef, it gets replaced by something else. So the first thing that people need to know is that the number is not completely real. It’s, it’s a, you know, contrived number that’s put together so you know, let’s say now they’re saying it’s around 7%, give or take, depending on what you’re looking at, it’s probably higher. Gas is a great indicator of that. And many times we’ve had these big surges in gas, you know, over the past, say, 15 years. And but inflation is two and a half percent. Well, how could that be possible? So people first need to understand that the components and how it’s sort of contrived are not what it really is.

Brett:

It makes a lot of sense. Yeah, that’s really interesting. So just understanding the true nature of what inflation is, it’s not just the two to 3%, it’s much higher. What do you think true inflation is? I mean, I’ve heard double digits. Right? What what what are you seeing? What do you feel like what it was in 2021?

Richard:

Well, if you look at I guess it was 1980, or 81. I think the inflation then was around 12%, give or take, we all set interest rates, I think in that time, almost 20%, which people can’t even imagine those numbers at these points. It’s probably in double digits. I mean, at this point, because if you really looked at the numbers, I mean, everyone goes to the supermarket, goes to the gas pump, can’t get items to two for building in their homes. There are weights for everything. So yeah, I would probably say it is probably closer to those numbers.

Brett:

Got it. And so what can people do about it? Like? Like, what would you say is the number one secret for people to fight against inflation or to combat it?

Richard:

Well, I mean, only at the end of the day, you need to make more, get a raise to keep up with the inflation, which is not always the case. generate more income. Pricing, there’s really not much we can do about so certainly shortages, we can’t do much about the only thing I would say that you can do is you want to try to be in these sort of rocky times you want to try to be careful with your investments. Do we often talk about how much did you make in the market when the market was up? Or, you know, but we never hear the stories about, you know, how much things came down? Or did you really protect those portfolios of the investments that you have? Or that 401k At work, you all invested in that one fun that says growth. So I think the one thing you can do is at least what you have either put away for the future, you want to at least make sure that doesn’t erode. So hopefully, if we could sort of normalizing where we are in the economy, then I think going forward, you’ll be in a better position.

Brett:

That makes a whole lot of sense. And, and, you know, increasing your income is one way to do it. The other thing to do would be to net more or, you know, defer more tax or eliminate more tax. So what are some of the best strategies that you found for folks that are trying to build wealth and defer tax?

Richard:

so there are a lot of investments and, obviously, are any kind of retirement account, IRAs are always good because they are deferring your taxes. Remember, if you have a 401k at work, money is coming out of your check, pre-tax, if you invest in an IRA, you’re a business, you have a simple IRA, you have a SEP IRA. Again, there’s there are great tax benefits of those. But on top of that, customers will often look for ways to you know, how can we invest and get more tax deferral and one way you can get tax deferral is by investing in tax-deferred programs, they would give you the upside of the market or potentially a good inch a better interest rate than the bank. But at the end of the day, you’re protecting the tax portion of it. And a lot of studies are basically showed that if you could tax the for income, versus say, getting that little 1099 every year from a mutual fund or something of that nature is in the long run. You’re ahead of the game.

Brett:

that makes sense. We really like real estate, right? Because you can depreciate assets on an accelerated basis, as well as potentially even offset your income based upon bonus depreciation. And if you’re if your spouse can be considered a real estate professional, this is kind of some extra, extra neat stuff there that you can do. What, what about deferring taxes? I’m curious, what’s the biggest frustration when it comes to your clients who are exiting, you know, businesses or real estate? Or maybe even 1031? Exchange? What’s the biggest frustration when it comes to capital gains tax deferral that you’ve seen over the years?

Richard:

I mean, I think when you when it comes to 1031, people feel that it’s, it’s, it’s complicated, and it’s difficult. So they, they sort of a weary of it. I think that’s important. I think when it comes to businesses, or selling businesses or real estate for that matter, there’s always that tax concern, you know, how do I defer this tax? I know, you talk a lot in your podcast about the deferred trusts, which are very, very useful. But it’s, you know, it’s always sort of always that crossroad. And I think education is the most important part of it and saying to a person, okay, this is your tax burden, you know, let’s get your account involved, we can sit down and discuss it, and there are ways that we can either mitigate it, or number two if we can’t mitigate it, how do we least going forward, try to invest in programs, whether they be tax-deferred going forward, or maybe even tax-free to ensure that at least the money going forward, is sheltered better?

Brett:

I couldn’t agree with you more. And it’s, it’s interesting, we just did a deal for a client out of New Jersey, not too far from you. And they’ve been a dentist, you know, he, his wife and his he who’s the dentist, his wife helped run the business for like, 25 years, right. And they’re selling their practice for about 1.4 million. And their tax liability and their basis are zero, but their tax liability is about five to $600,000. Right? It’s about 40% of their exit, and this is their retirement, right? This is for their kids, this is for their future. And this is like they got one shot at this and they gave me a call and they had never heard of the thing and they weren’t sure of it, and you know, their CPA and heard of it and, and it but it was a big, big decision. But they decided to put their trust in trust in our company. And the tax attorneys who are my business partners to do the deferred sales trust. So I’m curious about the financial advisor’s perspective, right? What’s having an extra, you know, in their scenario $600,000 or 40%, and more to be able to be diversified liquid investment-grade securities, live off of that, what could that do for business owners that are in New York or anywhere in that area?

Richard:

That strategy, I mean, you know, with a financial advisor is a game-changer. I mean, it’s, it’s the whole difference of someone knowing when they can retire. I mean, that’s really that really is what it comes down to, you know, in that particular sale you’re talking about. That’s everything, because then what we could do on our end, once that sort of freed up and that burden is freed up, then we could figure out ways to diversify. And more importantly, try to protect the downside on the investments going forward.

Brett:

I couldn’t agree with you more. And that’s the beauty of the deferred sales trust is that gives us flexibility. And you nailed it, it’s the time right? The one’s almost like it should be called the time freedom trust or something like that. Because, you know, for them to net 1.4 Essentially, they’re gonna net about 1.4 into the trust, right? In order to net 1.4. If they didn’t have the deferred sales trust, well, they might have sold a practice for 3 million, right, which they may or may not ever get there. So with the deferred sales trust, they can exist today, which is what might take them, you know, another five or 10 years, and who knows where their health is at where are the markets at or the competition’s at, or the economies at, and so they get that time back. And that’s the one piece we can’t get backward, which is our time, which is also so important about what you do is which is helping to protect on the downside risk. Because if you’re not protected there, you’re having to play catch up. So talk about the importance of making sure that you have a portfolio and a financial advisor like yourself, helping to protect on the downside risk, maybe mention a story of how you’re doing that.

Richard:

There’s sort of a disconnect in my industry about what protection is or what downside protection is, or am I diversified. And in the old days when a person said they would diversify, it basically meant that they had a stock portfolio and a bond portfolio. And you know, based on their age and predicated on their tolerance of risk, the adviser would basically come up with a percentage. So they will well, you’re going to be in 50% equities and 50% bonds. Well, a lot has changed in the industry over the last several years. And one of the ways we pride ourselves in practice is truly protecting the downside. So one of the things I do when I’m with a customer is, I tend to work backward. So the first thing I would say to a customer and a conversation is when we’re doing a review. How much cash do you want to see on that bank statement? Now, I know this is an odd way of doing things because, in our industry, it always seems to go in the opposite direction. So once you determine that, what is that rainy day cash number that, that the client wants to see in their bank account where if they need to dip into it, it’s there. And for everyone, that number is different. It could be 10,000, it could be 50,000, we had a client once it was 4 million. So it all depends on the person, then we work forward from there, and come up with sort of a middle term portfolio, let’s say five years, and then always then the long term with a retirement portfolio. There are many programs today that didn’t exist many years ago, that you can protect the downside on your investments. Now, when you’re when you said this 15 years ago, people would say Okay, but how much upside Am I giving up to protect my downside, a lot of that was true, it’s changed. So you can literally nowadays with various programs, which we could certainly show is that you’d have the upside of the market, but then you have downside protection, the downside can only come into two ends. The first one is income for life, you can provide income for life with a guarantee, or there are many programs out there now whether they be structured notes, which are bonds, or annuity type programs where you have some downside protection, where if things do fall, the house kicks in. And that’s how they do it. So there, there was a lot out there that you that can be done now with a secretary.

Brett:

That’s awesome, Rich, thanks. And by the way, you can learn more about the rich cast Baron and connect with him at gardencityfinancialgroup.com. That’s Garden City financial group.com. For those who want to learn more about the deferred sales trust, and how to exit highly appreciated businesses or real estate cryptocurrency and defer capital gains tax, you can go to capitalgainstaxsolutions.com, our minimum size deal is $1 million net proceeds $1 million gains. So it’s got to be big enough to make sense for the deal. But you go to capitalgainstaxsolutions.com To learn more about that. That being said, rich, we’re running out of time. Are you ready for the lightning round?

Richard:

Absolutely.

Brett:

All right, knowing what you know, now, if you can go back to your 25-year-old self, what’s the one golden nugget and make sure to tell yourself to do

Richard:

I think when you’re at that age, you just always sort of think that things are gonna go always incrementally higher. It could be a portfolio, it could be a career, it could be anything. I think you just got to keep always pushing forward, knowing that you’re making progress even if you’re taking two steps back. And that could be your portfolio that could be your career that could be your business.

Brett:

Excellent. Second question. What’s the number one book you recommend in the past year?

Richard:

That’s a good question. You know, I am still sort of old school and every once in a while I pick up that book, Napoleon Hill Think and Grow Rich. It’s just the classic to

Brett:

great book I couldn’t agree with you more. Next question. What are you most curious about right now?

Richard:

I guess like everybody we’re all sort of most curious as to this year going forward in the market and then the economy you know things gonna open up our is our supply going to be where it used to be. But again, you have to protect your investments through all of this and hopefully, on the other side, things will return the way they want.

Brett:

The last question is this after all your success helping all the people creating presumed wealth through your financial services business? How do you stay centered in your vision And how do you how do you stay encouraged to charge to reach new heights?

Richard:

I think the way I stay centered and the way we stay centered in the practice is, is putting your head on the pillow. And what at the end of the day, if the market is up, everybody’s happy when the market is collapsing, people are upset and emotional as an advisor, if I know that downsides are being protected in some way. That’s how I do it.

Brett:

I want to thank you for coming to the show. I want to thank you for sharing your wisdom with us. I want to encourage you to keep having an entrepreneur mindset looking at things in a different way to help your clients create and preserve more wealth for our listeners are going to get in touch with you what’s, what’s the best place for them to find you.

Richard:

You can go to www.gardencityfinancialgroup.com You can click the Contact button and we would get right back to you.

Brett:

Thanks for being on the show. Also want to thank our listeners for listening to that episode of the capital gains tax which is a podcast, also streaming on expert cre secrets podcast as well, where we believe most high net worth individuals and those who helped them struggle with clarifying their capital gains tax deferral options. Now having a clear plan is the enemy and using a proven tax deferral strategy such as the deferred sales trust is the best way for you to exit real estate businesses. dental practice in New Jersey cryptocurrency to for hundreds of 1000s of millions of dollars of capital gains tax so you can create and preserve more wealth, you make time be your friend, you can help you can get maybe get some time back to retire earlier. And you can work with professional financial advisors like rich to help manage the funds as well go to capitalgainstaxsolutions.com To learn more about all of that. And also we want to invite you to our free mastermind. In fact, it’s focused on cryptocurrency owners exiting well diversifying, buying in buying real estate or buying other assets with the deferred sales trust but their exits and you can go to capital gains tax wishes.com It happens every Friday 1 pm Eastern 10 am Pacific Standard Time, and you can register for free on our website. Thanks so much for watching this please rate review, subscribe, share this with someone that could be helped.

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About Richard Kasparian

Truth About inflation - what you need to know with Richard Kasparian

best real estate, financial wealth, crypto, and leading minds in the world where they share their ideas, deal stories, and inspiration. So together we make complex tax deferral strategies, simple and passive income plans, achievable him excited about our next guest. He’s out of the great state of New York, and the Long Island area. And he is focused on helping his clients create and preserve more wealth through financial services and sound personalized, customized financial advice, and he’s originally from the Bronx.

 

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