Riccardo Stewart: Hey, I wanna welcome you guys back to another
episode of the A-W-M-N-F-L Podcast.
My name is Ricardo Stewart, and I'm your host, and I'm joined
with my friends Jeff Locke.
We called him the professor, Zach Miller, we call the Truth, and then
Sam Acho, who we call the mayor.
We haven't been in this series where we're looking at what does
an elite athlete do to create sustained multi-generational wealth.
And we use phrases like, what is he like?
He's an athlete.
CEO.
Well, what does that look like?
One, you gotta create it.
You gotta create value.
And then one, you've created value.
Then you gotta capture that value, and that's getting the second
contract, being able to get the multimillion dollar contract.
Once you have that contract, now you gotta be able to convert it.
Meaning what does it look like for you to take and make the most after
tax dollars and put it in your pocket?
And from there, what does it look like to continue?
We've all had coaches before and we've all coaches who talk about, it's not about
the first play, it's about the last play.
It's not about the first play, it's about the last play over and over again.
And the whole ideal is like, dude, finish, right, finish.
What we're talking about is not just you finishing because you may actually
do really well on the field and off the field and have a lot of money and live the
life that you wanted, but do your kids.
And do your kids' kids, what does it look like for you to establish
a word that is often used but never really fully realized, legacy?
And then what does it look like for you when you've created it, when you've
captured it, when you've converted it, that it continues, that your last name,
your last name is a staple because your great grandkids are experiencing
what you begin to set up for 'em.
And so that's what we want to be able to talk about on this particular
episode of what that looks like.
Sam, I'm gonna start with you first.
I know you're in a hotel out there in Florida, but what are the stats in terms
of people who make 30 million or more?
How many of them actually are able to achieve what we understand
is multi generational wealth.
Sam Acho: Yeah, and football, we always go over tape.
You study film, you see, okay, these things are like a 80 percenter
or a 10% or a 20 percenter.
Well, when it comes to that generational wealth conversation with families who
have $30 million or more to invest or spend, only 30% of families actually
passed down wealth to their kids.
Out of that number, right?
So 30 million or more, only 10% of families pass down
wealth to their grandkids.
And so everyone talks about this idea of, yeah, I made all this money, I'm
gonna build multi generational wealth.
Well, 90% of the time expect failure if you don't have the right kind of plan.
Riccardo Stewart: I mean that those stats are staggering.
Staggering, and we all see it even as kids.
We watch someone make a contract and we go, man, they're
gonna be set up from light.
Maybe in their life they are, but the lives that they've created
and after that they're not.
Zach, why is that the case?
Why is it like that?
Zach Miller: It is not how you start, it's how you finish.
Like you said, coach, coach talk you seriously, the not, there's just a
lot of things you have to do to manage the passing of wealth to your kids.
I mean, I think about with my own kids, I have four kids and the amount of.
The amount of like taxes you could end up paying.
And let's just look at, I mean, I'm gonna end up having to pay a state tax.
Brock's gonna have to pay a ton of estate taxes, just if he passes on.
If you so, and just 'cause I didn't understand what an an,
what the estate tax even is.
I used to see an estate sale.
I was like, oh, I don't even know, was it like a garage sale or something?
And so IF when I was doing my estate planning, I finally
figured out what it was.
And all the government does is when you die, they take, they
add up all of everything you own.
And then if that nu whatever that number is, whatever it is, if it's over a
certain amount, they just take 40% of it.
And that's just flat, how it works.
You get that exemption amount, but anything over it.
So if, if Rock dies with a billion dollars.
The government is gonna request $400 million from 'em within nine months,
and this happens every year in the us.
Everyone who has over a certain amount of money has to pay it.
The thing why athletes like usually don't know about it is because it's such a
high exemption over 15, it's about $15M where you don't have to pay anything.
But guess what?
When you.
Are signing these type of contracts.
Now that becomes a reality.
So you have to account for it, you have to do the estate tax planning, you have to do
complicated sru, uh, you know, structures to try to mitigate some of that.
And so cutting that in half allows more money to be passed
on to the next generation.
It's just smart planning.
And then, I mean, over generations you have to bring.
The kids, the grandkids, into the conversations, into the planning,
into, um, those type of discussions.
'cause if you don't prepare them, they will never be ready
to inherit that kind of wealth.
And everyone worries about spoiled kids, but that's like, that's the
reality of what can happen if you don't.
Start early with your kids to be able to prep them for that, and then
the grandkids, and then prep your kids to prep the great grandkids.
And it's just all the way down the line because it's, it's a lot of
times the relationships and a fancy word for passing down your, your
values fam, family governments.
And so Rick, I know you're gonna talk about that, but things like work
ethic, how you, how you made that, that first generation money in the first
place matters immensely to how much.
Those kids are gonna care about that in the future.
Riccardo Stewart: I mean, you used the word spoiled, and if you think about food
or even a drink, like think about milk, that that goes bad or spoils, it's usually
you didn't take care of it, right, or you left it in the wrong place or it expired.
Family governance is the ideal of going.
You've made something and now you have to prepare your kids for
what they're going to receive.
And how that looks like.
And not just how you made it, but how to continue it.
And most of us, we don't understand that because even on this thread, like if we
were honest, most of us are in a position that is better than what our parents were.
So our parents did what they wanted to do, and that is, I want you to
be in a position better than me.
Well, what happens when you are in that position?
How do you continue it?
And that's why the family governance, the family leadership is how do
I plan and build a family that understands how to begin to continue
and grow the family business, because that's essentially what you're in.
And it takes a particular skill set and a team of a family office
that has a men and women in place to be able to help those things.
Jeff, when it comes to supporting multiple generations.
Like, gimme some examples of what that looks like.
Jeff Locke: Yeah, so Zach mentioned Brock couple times.
We're talking about Brock Purdy, right?
Last couple podcasts we really talked about what could possibly happen.
With him and the money he's gonna earn in this contract he just signed.
Right?
So we've been fortunate to work with a lot of clients like Brock, right, who
have money, enough money for themselves and for multiple generations of their
family, and we've helped them set up these special trusts and vehicles Zach talked
about to try and avoid how much goes to the government when they pass away, right?
Some of the things we've seen, which are pretty cool, number one's I
want to pay for college for every one of my kids, every one of their
kids, every one of those kids kids.
And you can do that with special structures.
Never have to worry about paying for school again for multiple
generations of your family.
A huge thing you can pass on.
And that's the legacy, right?
Yeah.
Uncle Brock never met him, but all of us have gone to school forever
without having to have it paid.
Other things like.
Buying a first house and you're the down payment funds for every
single kid's, first house in all their kids' houses, right?
A huge leg up in life.
Maybe without, like Ricardo said, spoiling, right?
Not giving them the mega mansion, but down payment funds.
Same with starting a business.
You could be the seed money for everyone's first business, you
know, as they get older, right?
Help them go out and be their own entrepreneur.
Really try to work for themselves, try to create something of value, and you
help them get off the ground to do it.
We talked about in the last episode, right?
Sam knows all there is about giving and sharing.
You can have a private foundation set up where every generation of your family
keeps running The private foundation keeps making that money last to help
charities, communities you care about and you can make special rules, right?
This.
Family member gets money unlocked at 30.
This family member gets money unlocked at 40, and these are all things you
can think about when passing down wealth in a smart way that avoids Mr.
Government taking 40% every single time it passes.
Riccardo Stewart: There's things that I have that I own now that I'm going,
I never knew existed, or I never knew I needed, and it's beyond just luxury.
It's just the reality of going, gosh, I, I need that now.
You know, whether it's, you know, certain sorts of furniture you have or you know.
Dishes that you have that you just need, when you get to a certain level
of wealth, you've never thought of it, but you need a family office, and
it's not just something where you're acting bougie, it's just going, most
people have never thought about it.
They've never heard of it because they're not at the wealth that you are at When
you've created that value and captured it with the contract and then you converted
it, now you have after tax dollars in your pocket, multimillion million dollars.
It's hard just to go to an FA who's really thinking about just investments.
Let's just be honest, who may just hire out another CPA for you to
think about just being tax compliant.
I.
Who's not thinking about insurance, who's not thinking about estate
planning, who's not thinking about how does this wealth not only get
to your kids, how do they instruct, equip and train your kids so that they
will train their kids and so forth.
Like, that's a, that's, that's a team of experts that are
thinking about your wealth.
We're talking about Vanderbilt.
We're, we're, we're talking about names that you are a part of now, and
so you just can't go to the, the, you know, run of the mill kind of person.
And so.
If you were thinking about, okay, I've heard about this family office.
I've heard of, I've heard about it, I don't know what it is.
Listen, we would love to talk to you about it.
In fact, these last four episodes were about what does it look like
to have an athlete family office.
Please reach out to us.
We'd love to hear from you.
We'd love to give you some resources.
Our number is 6 0 2 9 8 9 5 0 2 2.