Wealth Without Wall Street & Creating Passive Income | #REalAdvice 8 with Joey Mure
What is one thing that all realtors have in common?
All realtors work in an industry that is fairly money-driven. While helping serve clients and leads to help them find their best home, negotiating offers, and helping clients get the best value, we can’t escape the fact that we’re surrounded by money.
Realtors who don’t work a typical salaried job can’t approach money the same way as others do. Since income is commission-based, realtors often don’t know what the next month will hold.
You may have an “extra” $10,000 commission this month, but then you’re facing a decision: should the money go in savings, in case income next month is lean? Or should it go to pay off that car loan? How can you best save for retirement? Stash money in an IRA?
There’s got to be a better way to working with money than Wall Street traditions!
Ready to learn more about alternative approaches to investing and wealth building? Get ready to get your finances on track with Joey Mure, on this episode of #REalAdvice!
This episode’s guest on the #REalAdvice podcast is Joey Mure from “Wealth Without Wall Street.” The purpose of this company is to help serve real estate agents in particular to manage their finances and invest in a savvy way that goes beyond typical investment teachings and strategies.
Highlights of this episode:
● Jonathan introduces Joey and his business, helping realtors get financially prepared for the future, especially in light of being part of a commission-based industry.
● Joey started Wealth Without Wall Street to avoid the herd mentality regarding money, to help people find a different way to relate to money and build wealth.
● “Wall Street … is really good at getting us to do what they want us to do. Wall Street wants you to give you there give them your money for as long as you'll let them hold onto it and then make sure that you're taking all the risk.”
● So few people know that there are alternatives for them and how to invest money.
● A lot of “industry professionals” are basically money salespeople who have minimal training and don’t know investment strategies or how to really help you with your money.
● “No one gets rich on a checking account.”
● One of the five pillars of Wealth Without Wall Street is cash flow.
● “If you don't have a tax strategy to reduce your taxation then you're unnecessarily or unexpectedly giving the IRS more than they deserve. I'm not saying that you should not pay taxes; you should pay the amount that you're supposed to and use the tax code to your benefit.”
● If you can't identify where you're leaking cash then you can't really effectively save.
● The second pillar of Wealth Without Wall Street is insurance, using whole life policies to get a higher rate of return than a checking account.
● “How do we ever get to a point to where we’re not constantly on the hamster wheel? You have to start reducing your active income or replacing your active income with passive income.”
● “I'm passionate about helping Realtors because they are naturally so focused on helping others. They are actively trying to solve everybody else's problems, and yet they have a major problem of dealing with their own finances in their own future that they won't slow down to handle.”
● If you only get one takeaway from this episode, Joey has one piece of advice for realtors: make time for your finances. You have to prioritize things that are important to you, like family, and your future. Start with small adjustments as you can, and make change happen.
Special shout out to Joey Mure for being this episode’s guest for #REalAdvice! You can connect with him here:
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Audio Version Below!
[00:00:00.090] But before we jump into the business side of things and some of the you know goals and missions of you know your company and whatnot can you tell us a little bit more about yourself.
[00:00:10.230] So I am passionate about helping realtors because they're my best friends. I spent 11 years in the mortgage business and you don't you don't have a life outside of real estate a lot of it. I mean the people that you hang out with are the people that you're doing business with. You're at events with I mean all this sort of thing. So when I started learning a lot of what we do I was like wait a minute. A lot of a lot of my friends are struggling with these issues happen to be realtors.
[00:00:42.390] And so it just became a natural place that I wanted to invest in their lives to help them with their finances because I was like they're having the same issues that I've had. And what are those issues. Well I mean you need to think about it you're in a commission only type of position. Right. So there's always going be ebbs and flows. There's gonna be market concerns and I think the biggest challenge that I find is that realtors cannot be away from their money too long. Right. I mean the just the thought of I don't know what the next 90 days looks like in terms of my income.
[00:01:20.310] You can build some certainty around that with just systems and you know running your business like a business all these things that we were even talking about at this conference. But at the end of the day there's some things are out of your control. And just those ideas in the back of your mind.
[00:01:35.600] Well what if. Well that keeps realtors in general from putting money away for long periods of time where they can't touch it.
[00:01:44.910] Access I think is the number one thing that they just they can't give up and going into that and knowing the issues and being around agents and like myself. For me it was you know the reason I got started and what I'm started and doing and whatnot is because I'm surrounded by other people and I just hear the issues and I and I hear more and I think I ask a lot of questions that dive into things differently because I hear the issues and it's not. OK well let's try to do this and you know add more to do this and add more to do that.
[00:02:19.800] And it's like well let's take a step back you know. Why are these issues happening. And for me I think that a lot of the issues not just on the real estate industry but in any industry. A lot of the reason why issues continue down this path is because everybody just allowing them to do so. And so that's I'm assuming why you've created wealth without wall street to go ahead and attack the issues head on and say hey look I don't know of anybody else out there that is you know putting this in writing of.
[00:02:51.840] Here are the issues. This is what needs to happen in order to fix them. And sometimes you have to think a little bit differently and do things a little bit differently than everybody else. Because if you're continually trying to just do everything that everybody else is doing usually the issues don't fix themselves. So tell us about wealth without Wall Street how it started where it's you know where it started from and where it's at currently.
[00:03:16.040] Yes. So I think just going along with what you're saying I mean the herd mentality is powerful. I mean I don't think anybody can question that. It doesn't matter what industry you're in what you know phase of life you're in. There's always a herd that's doing something. And people want to be a part of it. It's just a natural inclination. But at the same time the whole idea that if you want different results you can't expect to do the same thing everybody else is doing and have different results.
[00:03:45.510] That's kind of insanity. You know at the end of the day continue doing the same thing but expected to do something different. And so I think what wealth that Wall Street is really born out of is that people are curious that there's got to be a different way because they they see so many people going down one path and there's just not a lot of results at the end of it. I don't know. I mean is that something you resonate with. Definitely. You see people they've done they've spent their whole lives potentially saving putting money away working working working and they don't seem to be getting ahead and why is that do you think.
[00:04:23.280] Well I think that there's a lot of factors. I mean there's probably more than we could cover in one.
[00:04:28.200] But that's usually what I say on every single episode.
[00:04:31.690] But I think there's a there's a mindset that we've all been kind of given and I blame it on Wall Street. I don't mean to villainize them but they're just really good at getting us to do what they want us to do right. So if I could if I could sum it up Wall Street wants you to give you there give them your money for as long as you'll let them hold onto it and then make sure that you're taking all the risk that's that's how I would sum it up. And the government has an arm in that because they're incentivizing us to put money away for long periods of time saying that it's to our benefit from a tax standpoint you know like Oh you don't pay tax on it today.
[00:05:21.510] So that's a benefit to you. Or if you really stop and think about it why why is that a benefit to me. Because I expect to be in a lower tax bracket when I'm in my 60s so that's telling me that I should be planning on making a lot less than I am today or the tax brackets are not going to change. And neither of those things are really good right. One I don't really plan on making less. That's kind of counterintuitive. Definitely. And then secondly tax rates are always changing I mean think about like even just in the last year or two there's been all these tax cut changes and stuff.
[00:05:59.900] It just depends on who's in who's in the White House and really doesn't matter which side it is. There's always gonna be changes. We can't control it. So why would we do that. I liken it to somebody sitting you know we're talking real estate you're sitting at the closing table and some eye passes you the mortgage note they say hey just you know go ahead and sign here we're going to have this three hundred thousand dollar mortgage and it's going to be payable over 30 years in a bubble. And by the way here's the rate and you look down and it says TBD percent what are what are the chances that you're going to sign a document like that.
[00:06:38.550] You're not you're not going to do that right. You're not going to do that. But that's exactly what we do with so many of these things that the government and the Wall Street put together as we said you know what. Just tell me later how much I owe you that's ludicrous right. But that's that's what they've taught us to do saying it's to our benefit. So anyway that's just a couple of examples of what I think is really holding us back standing in our way of really creating wealth is that we're abdicating that to somebody else and we're we've bought it hook line and sinker.
[00:07:13.720] So how does that help.
[00:07:15.070] Yeah definitely so for somebody to get out of their comfort zone to say hey look this is what I'm being told as far as what I should be doing with my money. And this is what I'm comfortable with. What's one step that somebody should do in order to say hey at least let me explore what else is out there let me look into what my other options are. Because for the longest time I didn't even know there were other options.
[00:07:39.250] Yeah. I still think there's so few people that know that there's something out there that's different. Write an alternative. What would be some of those other theories you know. Yeah so. So what we would first of all I would say is that you have to you have to really question that mindset right. Do I feel like I've been told that I can't manage my own money. Right. People think that I have to give it up to somebody else like Wall Street is again a taught. I need to give this up to them because they're smarter than me.
[00:08:08.960] Or I didn't have the training that they have or fill in the blank. But reality is I mean we've all seen it right. You know this this guy you went to college with a maybe and then all of sudden the next month he's a financial advisor.
[00:08:25.120] Mean realistically how much more does that guy know than you. He doesn't. Now he's he's been trained by one of these big firms and it's been like two weeks and now he's out there beating the streets trying to sell you that's not an expert. That's not somebody who has like this incredible way to build you wealth overnight. He's just a salesperson has been trained by financial institutions. So I think one you have to question that OK. Why wouldn't I be able to take back control of my finances and make decisions with my money that are actually wise.
[00:09:03.470] So that's a that's a big first step in my mind.
[00:09:06.020] So for somebody that's coming to you and they're saying hey look we listened to this podcast right. We know that there's other options we don't know exactly what those are. What would you say is just as an overarching theme that you're seeing across your clients is something that a lot of them have done that your advising to do and a different way. OK.
[00:09:29.950] So so number one I think the biggest things are like qualified plans. So for one case either raise SEP IRA raise or big in real estate.
[00:09:39.170] People are always talking about oh I get my SEP IRA right because you're trying to save taxes today. But again what they're doing with that is they're putting money away that they can't touch until they're 50 nine and a half. So again what happens is the market downturns. I have to go and get that money and I had to get penalized and taxed on it then that's a that's like a triple whammy. And that happened 2008 2009 2010. A lot of my realtor friends had these Sep IRAs ahead of time and they were forced to go get the money because the market downturn is so bad.
[00:10:15.000] So they got all this double triple whammy and they have nothing to show for now. Right. That is a terrible position to be in. And so we want to we want to start saving in places that we can get access to have liquidity. And but yet it's still going to be growing at a decent rate. OK. So what's the alternative. OK Joe that sounds good. Don't disappear. Check a checking account is not going to make you wealthy.
[00:10:42.480] True or very true.
[00:10:45.210] The banks have made sure to pay us the least amount of money for our money.
[00:10:50.580] Point 0 1 percent is pretty much going rate right now. And so it is depressing.
[00:10:58.260] I mean to think about that. So the alternative would be we have to think differently. But to think outside of our norm and a one of the pillars we talk about the five pillars of wealth for Wall Street we can get into those a little bit later if you want to. But one of those and you can talk about all five. OK. OK well we start with cash flow OK that's the number one pillar and yeah cash flow is it encompasses things like taxes.
[00:11:26.520] So if you don't have a tax strategy to reduce your taxation then you're unnecessarily or unexpectedly giving the IRS more than they deserve. I'm not saying that you should not pay taxes you should pay the amount that you're supposed to and use the tax code to your benefit. So we have very specific tax type of strategies that will help you reduce that many cases especially for those that are paying 75 100 or more a year in taxes. We have specific strategies that can reduce that 40 and 50 percent. So what would you do with an extra 50 grand this year if you didn't have to give it to the IRS.
[00:12:08.780] So that's a huge windfall. That's that's a way that you can turn to the course of your financial future. So tax strategies and debt how we pay off debt is a huge cash flow. So we've got people that have mortgages. How. What are some specific strategies that we can use to make our mortgage work for us instead of working for it. So we talk about the differences in different types of mortgages. We talk about how you pay off debt in terms of I give all my money every month.
[00:12:41.850] I think that's a big challenge for Realtors. I mean we've all had debt at one time or another or still do without you getting this this mindset. OK. Had a great month last month I got an extra 10 grand just set my account but I've got you know 30 grand of this debt over here on this car or fill the blank student loan check put all 10 of it towards that but what if I need the money back right. I mean these are the thoughts that I've had I'm sure you've had.
[00:13:08.330] And so we talk about specific ways we can do both at the same time and allow our money not to get out of our control but to still consistently be paying down that debt. So again there's a lot to that but that all happens under cash flow.
[00:13:24.960] So and that's one of your five pillars. That's right. Yeah that's the first you have to start there definitely.
[00:13:30.710] Because if you can't identify where you're leaking cash then you can't really effectively save. I think that's if you can't think of it as a progression. I have to I have to you know put put stuff in the boat to keep it from leaking and then I can take that money and I can start saving it more effectively. That second pillar we use is life insurance which life insurance isn't that when people die because they have. How does it have to do with savings. And so we use very specific life insurance contracts that are high high cash value policies.
[00:14:10.170] They they take your savings from a checking account. That's point a 1 percent to where you're earning 3 to 5 percent. These are whole life policies by the way. And but you have access to the money the entire time. So think about it like I'm moving money from one pocket to the other one pocket checking accounts for instance have virtually no benefit except that I can get my hands on the money. Right. So you add to that. I get a good rate rate of return. It's growing tax free which we want to.
[00:14:41.450] We want to reduce taxes at all possible. One of the biggest the rotors of wealth. Right. If I can do that. And then at the same time be able to leverage that money which there's a lot more strategies behind that. I'm sure that I don't want to bore everybody on that. But if you can leverage the money in that policy to then create passive income that's where we're getting to like the end goal of working with wealth that Wall Street is not just have a policy that policy is there to capture your cash flow and give you some additional benefits.
[00:15:15.170] Obviously there's also a death benefit that comes with it. You know kind of like the cherry on top but. But we want to better leverage that cash to then build passive income today. That will help us reduce risk. I mean as realtors you are on a hamster wheel every single month right. I actively have to go and produce that next listing. That next sale. That next buyer or I have a 30 to 60 to 90 day cycle where I'm not going to have a payday at the end of it.
[00:15:49.010] So how do we ever get to a point to where I'm not constantly on the hamster wheel. You have to start reducing your active income or replacing actions that reduce it replacing your active income with passive income so that hey if I need ten thousand dollars a month to live on and I'm actively producing it ten thousand do my efforts. If I can add five hundred dollars a month on this rental property or five hundred dollars a month on this private loan that I did or whatever then I'm that much closer to where I'm reducing my overall like requirement every single month and I'm getting closer to financial freedom.
[00:16:29.110] And we're going to go into some of the resources that people listening could reach out to you and get more information because I know that there's somebody listening right now that's saying Hey what you're saying sounds great but it sounds like a different language.
[00:16:44.360] Like is the radio in English right now or what. What is exactly going on so people aren't seeing your head cocked like like a puppy you're looking at me like really. So we're going to definitely make sure that we provide those resources for people but before we go into resources and how people can contact you I think that there's a lot of stereotypes surrounding the real estate industry and specifically to the actual realtor themselves.
[00:17:14.500] What are some of those stereotypes that you see that are out there that's working with agents you know is just drastically opposite of what the reality is not 100 percent sure if it's your question so stop me if I'm going the wrong way but I think one of the things that why I'm passionate about helping Realtors is that they are naturally so focused on helping others and somebody actually mentioned this at the conference yesterday is that they are actively trying to solve everybody else's problems and yet they have a major problem of dealing with their own finances in their own future that they won't slow down to handle.
[00:17:56.710] So the stereotype is that they don't work enough. They're out there doing all these crazy things. But reality is now the reason they're doing all these things and going to conferences and doing so much is because they truly want to help you and they're just going going going going going. They're not the people that are you know sleeping in all day and at the bar 24/7 right which would be you know a stereotype. The reason that I think a lot of people see agents in a bad light is because they don't know exactly what's going on.
[00:18:31.450] The agent is not saying hey this is what we're doing and how it helps you. They're just going to the end of the story and I think that a great story any story has a beginning and a middle and an end. And if you only are telling one piece of that story. That's where these stereotypes kind of come in. And that's where the agent needs to say hey look this is what I'm doing and it's obviously getting worse worse worse. And if I continue to just work work work do all these different things and the narrative isn't going to change.
[00:19:05.950] I think that what you're talking about when it comes to hey look we just have to think things differently. What you've been told not necessarily is wrong but there are other options those options may work for you. They may not but there's options and something could be to your benefit but you have to open up your mind and you need to take a step back.
[00:19:29.770] It's phenomenal to put your clients first 24/7. That's great. I'm not saying don't put your clients first right but you have to make sure that your finances are in line to you. I think you know I tell agents all the time you're telling somebody at the listing table that the best investment and probably the biggest investment you're gonna make is in this purchase. Yet most agents don't have their own finances in check. Would you agree with that.
[00:19:57.550] Absolutely. In fact that I would give a quick analogy. It's actually happened the other day I was at the Masters and meeting the guy for the first time so I'm just getting to know him and he's an employee benefits.
[00:20:10.630] So he's telling me all about me and you know I'm going to this these companies and if they they won't work with me on like a wellness program for their employees then I just I just I can't see any way to work with them. You know I mean and as he's telling me about all these things like you know helping people with their weight loss someone you know get their health in check and all the stuff he's smoking like multiple cigarettes drinking and he's severely overweight and I'm thinking wait a minute why would I be taking advice from you on wellness.
[00:20:43.400] Right. Like you're not the picture health and wellness right now. And so I think to your point I mean if you're a realtor you're working so hard for your clients biggest investment and yet we're not taking care of ourselves. We're not putting ourselves in a position to be an adviser to our clients in that biggest wealth transfer means a lot of wealth transfer to happen wouldn't sell real estate. So how can we do that we have to focus on that. And I would say the challenges is we're really fast to hire a coach to build our business.
[00:21:20.490] Right. Business development marketing all these things. Running a business within real estate. But when it comes to dealing with our finances we don't they just don't typically hire that person to help them coach them on ways that they can improve that themselves.
[00:21:39.700] And is that because they put up a defensive I don't want people to know exactly what's going on. Is it because they're telling everybody else I sell 50 houses a year but they only sell 10 and if you actually knew about my finances you would know I'm not as good as I say I am. What do you think the reason.
[00:21:58.110] I think there's definitely some of that. I think I mean just naturally we're trying to I mean think about social media most of it. A lot of it is just a projection that we're trying to be somebody to people that may not even be carrying to look at it. Right. So I think there's definitely some some embarrassment when it comes to finances and that's a challenge that I think is I want to encourage agents to to not let that be a challenge right. There's no embarrassment we've all we've all done really stupid things financially and we're there's always ways we can improve.
[00:22:31.770] So let's just have an open dialogue about that. But yeah I definitely think that's an issue. But I think the biggest thing is that it's just the bottom of the list. Right. It's not you know you think about the quadrants of time. It's important not urgent. And a realtor lives an important urgent. You don't think about that like taking that next that next listing appointment. It's important and it's urgent because that person is going to choose somebody to list their house. And if I'm not there I can't be there whatever I'm putting myself in position to to miss that or a buyer's ready to go watch to see a house right now.
[00:23:08.320] It's important and it's urgent. So what keeps getting pushed down are the things like our own health our own wealth in and sometimes family time suffers. I mean you've I'm sure had interviews with people that really struggled with that work life balance. So I just fall back into that category in terms of finances.
[00:23:26.380] So where can people find you work people reach out to you more information about exactly what you're talking about.
[00:23:33.460] Yeah. So our companies will do that Wall Street so you can go well with that Wall Street dot com. We have our podcast on our Web site. You can find us on iTunes Stitcher Spotify any of those major places we if you have interest in just wanting to learn more. Like how does this work. Maybe Joey has completely confused me on what he said. And so I just want to kind of research this myself. We have a video series. It's just for very quick videos like 25 minutes total.
[00:24:06.940] It's called passive income not wealth without Wall Street dot.com. If you go there you can put your e-mail in and you'll get all four videos. And like I said short sweet to the point. You're not going to you walk out of there and you're like OK this wasn't for me. You haven't wasted a lot of time. But otherwise it could be really the first step to creating passive income and getting out of the rat race. So I made it specifically for realtors even though we do. We do help entrepreneurs and business owners all across the country.
[00:24:37.480] That is definitely specific to realtors.
[00:24:40.570] So for somebody that's listening there they they see the title this episode revolving around finances and wealth about Wall Street and they skip to the last 30 seconds rather than listening to the whole thing. What would be one last piece of advice that you would give to an agent when it comes to their wealth.
[00:24:59.910] As far as just in general or whatever's on your mind you know I think the biggest thing you just keep coming back to this but make time for it. Right. We make time for things that are important to us. And I just think don't don't look back and regret because you were so busy. I mean I put again I put it in the same boat as like your family.
[00:25:25.290] Like I have five little girls and I constantly think there's always something that can get in the way of me spending time with them. Right. There's always I mean as a business owner or myself as having been in the mortgage industry there's always a next preapproval application there's always the next buyer I could show there's always this that the other but you're never going to get that time back when it comes to your family. And those girls rely on me not just for a paycheck not just for the food on the table but for the emotional strength and the investment of time that is going to shape their lives for the rest of their lives.
[00:26:07.410] That's a that's a weighty thing to me and my wife. The same thing. Right. Our marriage is dependent on me making it a priority. It's not going to do it itself. And so I would say the same thing for finances is you have to put it as a priority as you're planning your week where are you. Where are you investing the time to educate yourself and put yourself in a position to have a different result. And so anyway you can do that very easily by taking in content like this podcast like our podcast.
[00:26:41.220] You're going to consistently learn even just on your drive in. So make it a priority. Start making small changes adjustments and then of course I'd love to love to help if I can.
[00:26:52.650] Sweet. So one more time. Can you reiterate exactly where people can find more information. Yeah.
[00:26:58.480] Wealth without Wall Street dot com has our podcast has a lot of resources on there you can actually download the videos I mentioned before it passive income got wealth through that wall street you can even set up a free call with us on the Web site there there's a there's a call to action and so yeah that's the easiest way to get us wrong Facebook and Instagram and Twitter and all links up to Wall thought Wall Street Facebook Instagram Twitter.
[00:27:24.810] Check them out at their Web site. Also go to passive income dot wealth without wall street. Yeah we made it as long as possible. So I was trying to as you were talking I was saying it back into my head like OK it's this is this whole mess it up to is Minnesota sweet awesome Well thank you again I know your time is valuable so I appreciate you coming over here and sitting next to the water with me. Absolutely. And and thank you for the the networking party last night I thought it was great as well and I think that it's phenomenal when other people are stepping out in order to help people.
[00:27:59.160] And I think that a lot more people need to realize that there are phenomenal people that are stepping out to help you. They're not you know they're not sponsoring event just to put a logo and make it all about themselves there's actually people that are out there that actually care about you care about your finances and you just have to think a little bit differently.
[00:28:19.560] And those people can drastically impact your life. Absolutely. Thanks for having me on. Thank you. Awesome. That was good.