Are traditional retirement plans holding you back? In this eye-opening episode, I dive into a conversation with Kyle Christensen, where he disrupts conventional financial strategies queued up for dentists. Rather than funneling earnings into several miscellaneous traditional retirement savings like 401ks and IRAs, Kyle introduces the novel concept of "fake assets" that might not serve you as you imagined. He advises dentists to channel their investments into their sphere of expertise—into themselves and their practice—in order to craft paths towards abundant wealth genuinely.

Kyle breaks apart the paradigm of diversification and advocates for other arenas like real estate, intellectual property, and personal development ventures such as coaching. Discover the lengths to which specialization can forge wealth without waiting decades!

• Why 401ks and IRAs might be considered "fake assets" for dentists.
• The importance of investing in one's expertise and practice for optimal wealth creation.
• Strategies for maintaining high liquidity to seize strategic opportunities.
• Understanding the value in real estate, IP investment, and self-improvement coaching.
• Kyle's take on why diversification strategies might be outdated.
• How specialization, rather than diversification, leads to increased wealth.

Ready to reshape your financial future and mastering the art of specialization? Dive into this episode now!

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Sponsors:

Studio 8E8: Dentistry’s story-driven marketing agency. Traditional marketing repels. Story-first dental marketing attracts.

We bring your story to life in a way that captivates and connects: https://s8e8.com/affiliates/tdm?utm_source=tdm&utm_medium=affiliate&wc_clear=true

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You can reach out to Kyle Christensen here:

Website: https://uniqueadvantage.biz/

Kyle's Book "Principals Based Planning": https://a.co/d/8576RD3

Instagram: https://www.instagram.com/unique_advantage/

Facebook: https://www.facebook.com/profile.php?id=61558072766116

LinkedIn: https://www.linkedin.com/company/uniqueadvantage-planning/

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Mentions and Links:

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Terms:

Fica Taxes

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People:

Bill Gates

Elon Musk

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Books:

FAKE: Fake Money, Fake Teachers, Fake Assets: How Lies Are Making the Poor and Middle Class Poorer

The Autobiography of Andrew Carnegie and the Gospel of Wealth

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Videos:

Why diversification is for suckers: Warren Buffet and Mark Cuban

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Businesses/Brands:

Microsoft

Apple

Berkshire Hathaway

Walmart

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Places:

Wall Street

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If you want your questions answered on Monday Morning Episodes, ask me on these platforms:

My Newsletter: https://thedentalmarketer.lpages.co/newsletter/

The Dental Marketer Society Facebook Group: https://www.facebook.com/groups/2031814726927041

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Michael: Hey, Kyle. So talk to us. What's one piece of advice you can give us this Monday morning?

Kyle: My advice is to don't gamble with your financial future. And there's a reason I'm saying that.

Michael: What's the reason behind it?

Kyle: I think most of your listeners are probably being pressured, by the conventional wisdom out there to start quote, saving for retirement.

And basically the way I look at that is they're divesting money from their control and their use and their expertise, and they're putting it in things that they have no control, expertise or use. And that's generally encouraged by the financial planning industry. Okay.

Michael: So would you say,

Don't start putting funds into that.

Kyle: I know. Sounds crazy. Doesn't it? Yes. That's exactly what I'm saying. The financial institutions that are promoting the philosophy of retirement and retirement planning, they only have one objective, and it's actually a huge conflict of interest.

Their objective is to get asset center management. Their objective is to get your audience to send them money on a regular and ongoing basis and not touch it for decades and not receive any income for decades from those supposed assets, Robert Kiyosaki in his most recent book called fakecalls 401ks and IRAs mutual funds.

He calls them fake assets. And the reason is he says a real asset is something that puts money in your pocket. And a liability is something that takes money out of your pocket for years. And that's why he calls those kinds of things, fake assets.

Michael: So then from your expertise, where should we be putting our money then?

Kyle: They should be putting it in what they're experts in. I've been to plenty of dental industry events, conferences. throughout the country. And I can tell you by looking at all the exhibitors of these events, there's plenty of opportunity for, dentists to invest in themselves and to grow and to expand.

They're being convinced, however, to, move their money and invest in things that are not in their expertise, which I just finished reading Andrew Carnegie'sautobiography earlier this year. And in his book, he talks about that exactly. He says, I've never seen a man be embarrassed by investing in anything other than things outside of his expertise.

his recommendation, which he's the richest American thatthat's ever lived. You know, we think, Bill Gates is super rich and Elon and they are, but comparatively Andrew Carnegie would be worth 300 billion in today's dollars. So he knows what he's talking about.

And I think there's some wisdom in what he's saying. He's saying that, look, you should be investing in thethings you can control, and influence.

Michael: Interesting. So then what are some strategic investments specifically for dentists that they should be investing in?

Kyle: Yeah. So number one, I would say, don't be afraid of having cash. Don't be afraid of accumulating cash because cash means opportunity, think everybody's heard the phrase cash is King and there's truth to that. The people who have cash have opportunity. I'm sure most of your audience has dealt with loans, practice loans, or equipment loans, or things like that, right?

What if you could get to a point in time when, you're only using loans strategically. You're not using them because you have to, but you're using them strategically. Maybe when the interest rates are really great and you're making more interest in where your cash is at, right?

So at that point in time, it might make a lot more sense to just maintain the cash, take the loan, right? But in most people's cases, they're taking loans because they don't have the cash. So I would say, don't be afraid to build and maintain high levels of cash because cash equals opportunity. I'm thinking about one of my dental clients that's in Oklahoma.

I started working with him whenhe bought into his first practice and he was making about 250, 000 a year. so that was in about 2014 when I started working with him this year.in fact, a conversation that I had with him last week, he's buying in three more practices.

So he'll have a total of six practices. He has over 10 doctors working for him, his annual income just from what he does managing the practices, he makes over 2 million per year. That's where people should be investing right in their own ideas, in their own business, in their own property. Investment, for a dentist could be, investing in coaching.

That's a great investment. In fact, this particular client, that was one of the first big investments that they did is they invested into coaching for their practice. And the amount of increase in efficiency in their practice went through the roof. So those are the kinds of investments that I think that your audience should be considering and, should weigh heavier than things that they have no expertise in.

Michael: Yeah. Interesting. was that revenue profit or cash?

Kyle: That was net profit per year for him.

Michael: Oh, interesting. I like that, man. So then how would you plan for long term, I guess, like financial security and wealth building

Kyle: So one of the things that you can do is you can start to invest into real estate, right?

For example, maybe the property that your practice is in, that's an opportunity, right? And that's actually a way to, change the character of your income. Let's say that you're paying 20, 000 a month in lease, for your office lease if you were to own the building And now you're practice is paying that to you that twenty thousand bucks a year.

You're Recharacterizing two hundred and forty thousand dollars a year now. It's not going to be subject to fikaSo you're saving fifteen point three percent of that money in taxes And now you're going to pay ordinary income tax, which you would have anyway, but you save a huge chunk of money over time if you sell that practice in the future, you could still Keep the building, it's a cash flowing asset to you.

You can look at investing in other, what I would call real assets. Real assets are basically things that financial institutions can't sell you. So real assets might be owning a franchise. It might be owning, other real estate property, intellectual property. I think about the inventions that have taken place in the dental industry in just the last 10 years.

And it's incredible. If you've been to the dentist regularly, you've seen it, the way they take x rays, the way they do imaging, everything. It's amazing how much technology, how much improvement has been made. What's the genesis of most of that improvement? Is it somebody who's not in the dental world or is it somebody that's in the dental world that came up with those things?

And I would say it's mostly things that were brought up or invented Or at least thought of by people in the dental industry. Your audience might be, as they go along, be coming up with ideas that are multi million dollar cash flowing ideas.

And what I'm saying is, that's the sort of thing they should be investing in.

Michael: Gotcha. Okay. So then how do you balance reinvesting in the business with diversifying your portfolio for long term wealth here?

Kyle: So diversification, just submit is a marketing idea. Really?

Michael: Okay. Yes.

Kyle: in fact, I would encourage everybody to look up what Warren Buffett says and Mark Cuban says about diversification on YouTube.

Diversification is an excuse for lack of knowledge. So specialization is what creates well, it's having an inch wide. Knowledge, but it's a mile deep, versus the Jack of all trades that has a mile wide basis of knowledge. And it's only an inch deep the whole way.

People get paid for what they know. this idea of diversification, it's wall street. Wall Street is encouraging diversification because an excuse for their inability to pick winners and losers, which all the research actually says that they cannot do. And so we pay all these mutual fund managers and these money managers a lot of money right, every year, so that they can pick winners and losers, and yet all the research says that they can't, and what do they tell us we have to do?

Diversify. We have to diversify. We have to asset allocate, We have to change that so that if something goes down, which is out of our control, which is a key point, I think then not all of our money will go down. So my question is. Should Bill Gates have diversified out of Microsoft should Steve Jobs have diversified out of Apple should Warren Buffett diversify outside of Berkshire Hathaway, I would say no, I think that those guys know exactly what they're doing.

And they're investing in the things that they know that they're experts in.

Michael: Interesting. Okay. So then if we do have a portfolio and our consultants are, are, you know, financial advisors are telling us like, yeah, you need to diversify. We did it already.

How can we start scaling back? Or do we just take everything out of our mutual fund 401k RAs and stuff like that? Or, Or what are your thoughts?

Kyle: Here's my question. How much controller influence do you have over how that performs?

Michael: None. Like If I bought Walmart stock, how much influence do I have over that?

buy something at Walmart, but nothing happens.

Kyle: But it's not going to move the needle, right? It's not going to change the stock price, right? So I have no influence over that. So in reality, if you look up the definition of the word invest or the word gamble, What is that more like, Is it really investing or is it really gambling? I think that's the first thing we need to do. Let's call it what it is. And some people like to gamble and that's fine. for some people it's exciting. It's a fun game, but I don't think that people want to rely, put their entire financial future on gambling, right?

But they're being told that that's what they should do. So what should you do if you already have, most of your investment in that kind of situation? Well, number one, does it make it better to put good money after bad? in the business world, don't put good money after bad, right?

So if we're already doing something and we realize maybe this isn't the direction I want to go, then don't keep putting money in that direction. Does that make sense? So that's the first thing I would stop contributing If you realize that, hey, you know what? I really do have more confidence in what I'm doing than I do in putting it into something I have no clue and I have no control, no influence over the outcome, right?

I'm actually penalized if I touch my money, Here's the other thing. Don't let the tax tail wag the dog. So what I mean by that is, taxes, yes, are an important factor to keep in mind, But they shouldn't be the sole deciding factor, if my entire goal is to avoid taxes, you know what the easiest way for me to avoid taxes is?

Don't make money. And I don't know of anybody who has that as a goal. That's not a goal for anybody. It's not a good goal. I don't think to not make money. So avoidance of taxes isn't really the goal. Financial freedom is your goal. It should be your goal. And I think that's what most people have in mind when they think about retirement, even though that's not what the word retirement means.

I think that they think about financial freedom, you know, I want to be able to do what I want to do when I want to do it. Well, The problem with retirement accounts is that they don't provide you with any. income. They don't provide you with any velocity. That's the principle. It's called velocity of money.

So you put money into a retirement account and you can't touch it for a long time. Michael, you seem like you're in your thirties, maybe. Are you in your thirties? So if you're in your thirties, when can you touch that money without paying a penalty? 30 more years. Yeah, it's 30 more years. And who benefits from that?

Is it you or is it the financial institutions?

Michael: I don't know if I'll be here in 30 more years, even

like so.

Kyle: that's true. It's absolutely true. There's no guarantee that you'll live that long. Here's the thing. Those products, those accounts are not designed for financial freedom. They're designed for retirement, which is an age.

Retirement doesn't mean capability. And so here's the question. Would you rather pay the tax? And maybe even the penalty. Right now we're at, the market's still at, near it's all time high. It might make sense actually, to cash out. And pay the tax and the penalty. Which seems totally crazy. I'm the only financial planner that you'll ever hear that suggests that that might be a good idea.

And here's why. Because I believe in you. I believe in you more than I do Wall Street. They have a conflict of interest actually. Their conflict of interest is this. If you take out your money, they make less. That's the reality. that's an actual financial conflict of interest. So when do they want you to take your money out?

Never.

Michael: Yeah.

Kyle: Yeah. It's never. that's the game. They're just pushing it down the road for 30 years. And if you've put money into the retirement accounts, you've agreed to that condition that you won't touch your money for 30 years. Which only benefits them. It doesn't benefit you in any way, but they're trying to convince you that that's true And then when you get to 30 years from now because we just said what's their conflict of interest?

They don't ever want you to touch your money. They get financially injured if you take the money out when you hit 30 years from now, do you think they're going to still want you to take your money out at that point? Nope. They're going to give you every reason why you shouldn't because you might outlive it.

It's not enough. it didn't grow as much as we thought it would and so on. I would rather you have half of that money in your full control and your full use.

Michael: Love it, man. Awesome. I appreciate your time. And if anyone has further questions, you can definitely find them on the Dental Marketer Society Facebook group, or where can they reach out to you directly?

Kyle: You can go to my website, uniqueadvantage. biz. And the last letters are B I Z, Boy Island Zoo. Our email addresses are on there. You can, reach out. I'd love to answer any question.

Michael: couple other ways you can find out more, right? You can go to amazon. com and you can buy my book, principles based planning, a better approach to financial planning. The other ways you can find us we're on Instagram.

Kyle: Facebook and LinkedIn. So we'd love to have you follow connect. We'd love to see on there.

Michael: Awesome. Yeah. So that's going to be in the show notes below Kyle's book. I saw social media handles. Please reach out to him if you have any questions and Kyle, thank you for being with me on this Monday morning episode.

Thank you.