WEBVTT NOTE This file was generated by Descript 00:00:19.273 --> 00:00:20.833 Riccardo Stewart: Hey, I wanna welcome you guys back to another 00:00:20.833 --> 00:00:23.683 episode of the A-W-M-N-F-L Podcast. 00:00:23.683 --> 00:00:26.563 My name is Ricardo Stewart, and I'm your host, and I'm joined 00:00:26.563 --> 00:00:28.123 with my friends Jeff Locke. 00:00:28.123 --> 00:00:31.543 We called him the professor, Zach Miller, we call the Truth, and then 00:00:31.543 --> 00:00:33.853 Sam Acho, who we call the mayor. 00:00:34.243 --> 00:00:37.903 We haven't been in this series where we're looking at what does 00:00:37.903 --> 00:00:42.948 an elite athlete do to create sustained multi-generational wealth. 00:00:43.438 --> 00:00:46.168 And we use phrases like, what is he like? 00:00:46.168 --> 00:00:47.128 He's an athlete. 00:00:47.128 --> 00:00:47.758 CEO. 00:00:48.028 --> 00:00:48.958 Well, what does that look like? 00:00:49.258 --> 00:00:50.878 One, you gotta create it. 00:00:51.388 --> 00:00:52.678 You gotta create value. 00:00:53.098 --> 00:00:54.808 And then one, you've created value. 00:00:55.018 --> 00:00:58.408 Then you gotta capture that value, and that's getting the second 00:00:58.408 --> 00:01:01.768 contract, being able to get the multimillion dollar contract. 00:01:02.248 --> 00:01:05.428 Once you have that contract, now you gotta be able to convert it. 00:01:05.668 --> 00:01:10.348 Meaning what does it look like for you to take and make the most after 00:01:10.348 --> 00:01:12.628 tax dollars and put it in your pocket? 00:01:13.423 --> 00:01:16.093 And from there, what does it look like to continue? 00:01:16.423 --> 00:01:20.713 We've all had coaches before and we've all coaches who talk about, it's not about 00:01:20.713 --> 00:01:23.053 the first play, it's about the last play. 00:01:23.353 --> 00:01:26.683 It's not about the first play, it's about the last play over and over again. 00:01:26.743 --> 00:01:29.953 And the whole ideal is like, dude, finish, right, finish. 00:01:30.553 --> 00:01:34.363 What we're talking about is not just you finishing because you may actually 00:01:34.363 --> 00:01:39.043 do really well on the field and off the field and have a lot of money and live the 00:01:39.043 --> 00:01:41.563 life that you wanted, but do your kids. 00:01:42.598 --> 00:01:46.288 And do your kids' kids, what does it look like for you to establish 00:01:46.288 --> 00:01:49.828 a word that is often used but never really fully realized, legacy? 00:01:50.488 --> 00:01:53.998 And then what does it look like for you when you've created it, when you've 00:01:53.998 --> 00:01:57.988 captured it, when you've converted it, that it continues, that your last name, 00:01:57.988 --> 00:02:02.878 your last name is a staple because your great grandkids are experiencing 00:02:03.118 --> 00:02:04.438 what you begin to set up for 'em. 00:02:04.438 --> 00:02:07.528 And so that's what we want to be able to talk about on this particular 00:02:07.528 --> 00:02:09.118 episode of what that looks like. 00:02:09.118 --> 00:02:10.408 Sam, I'm gonna start with you first. 00:02:11.488 --> 00:02:17.218 I know you're in a hotel out there in Florida, but what are the stats in terms 00:02:17.218 --> 00:02:19.408 of people who make 30 million or more? 00:02:19.648 --> 00:02:23.908 How many of them actually are able to achieve what we understand 00:02:23.908 --> 00:02:26.003 is multi generational wealth. 00:02:27.868 --> 00:02:30.268 Sam Acho: Yeah, and football, we always go over tape. 00:02:30.268 --> 00:02:33.448 You study film, you see, okay, these things are like a 80 percenter 00:02:33.448 --> 00:02:35.068 or a 10% or a 20 percenter. 00:02:35.068 --> 00:02:39.538 Well, when it comes to that generational wealth conversation with families who 00:02:39.538 --> 00:02:45.418 have $30 million or more to invest or spend, only 30% of families actually 00:02:45.418 --> 00:02:47.578 passed down wealth to their kids. 00:02:48.808 --> 00:02:49.738 Out of that number, right? 00:02:49.738 --> 00:02:53.068 So 30 million or more, only 10% of families pass down 00:02:53.068 --> 00:02:54.838 wealth to their grandkids. 00:02:55.258 --> 00:02:57.898 And so everyone talks about this idea of, yeah, I made all this money, I'm 00:02:57.898 --> 00:02:59.878 gonna build multi generational wealth. 00:03:00.358 --> 00:03:05.758 Well, 90% of the time expect failure if you don't have the right kind of plan. 00:03:08.503 --> 00:03:12.403 Riccardo Stewart: I mean that those stats are staggering. 00:03:13.213 --> 00:03:15.883 Staggering, and we all see it even as kids. 00:03:15.883 --> 00:03:18.643 We watch someone make a contract and we go, man, they're 00:03:18.643 --> 00:03:19.818 gonna be set up from light. 00:03:20.623 --> 00:03:24.913 Maybe in their life they are, but the lives that they've created 00:03:25.093 --> 00:03:26.773 and after that they're not. 00:03:27.493 --> 00:03:29.863 Zach, why is that the case? 00:03:30.433 --> 00:03:31.123 Why is it like that? 00:03:32.588 --> 00:03:34.633 Zach Miller: It is not how you start, it's how you finish. 00:03:34.663 --> 00:03:41.083 Like you said, coach, coach talk you seriously, the not, there's just a 00:03:41.083 --> 00:03:45.373 lot of things you have to do to manage the passing of wealth to your kids. 00:03:45.373 --> 00:03:49.363 I mean, I think about with my own kids, I have four kids and the amount of. 00:03:51.448 --> 00:03:54.058 The amount of like taxes you could end up paying. 00:03:54.058 --> 00:03:57.118 And let's just look at, I mean, I'm gonna end up having to pay a state tax. 00:03:57.418 --> 00:04:01.198 Brock's gonna have to pay a ton of estate taxes, just if he passes on. 00:04:02.218 --> 00:04:04.858 If you so, and just 'cause I didn't understand what an an, 00:04:05.038 --> 00:04:06.508 what the estate tax even is. 00:04:06.508 --> 00:04:08.608 I used to see an estate sale. 00:04:08.608 --> 00:04:11.368 I was like, oh, I don't even know, was it like a garage sale or something? 00:04:11.878 --> 00:04:14.758 And so IF when I was doing my estate planning, I finally 00:04:14.758 --> 00:04:15.868 figured out what it was. 00:04:16.558 --> 00:04:19.618 And all the government does is when you die, they take, they 00:04:19.708 --> 00:04:21.538 add up all of everything you own. 00:04:21.928 --> 00:04:25.348 And then if that nu whatever that number is, whatever it is, if it's over a 00:04:25.348 --> 00:04:27.898 certain amount, they just take 40% of it. 00:04:28.208 --> 00:04:29.738 And that's just flat, how it works. 00:04:29.738 --> 00:04:32.108 You get that exemption amount, but anything over it. 00:04:32.108 --> 00:04:34.383 So if, if Rock dies with a billion dollars. 00:04:35.083 --> 00:04:39.553 The government is gonna request $400 million from 'em within nine months, 00:04:39.853 --> 00:04:42.163 and this happens every year in the us. 00:04:42.733 --> 00:04:45.433 Everyone who has over a certain amount of money has to pay it. 00:04:45.823 --> 00:04:49.633 The thing why athletes like usually don't know about it is because it's such a 00:04:49.633 --> 00:04:53.893 high exemption over 15, it's about $15M where you don't have to pay anything. 00:04:54.193 --> 00:04:54.883 But guess what? 00:04:54.883 --> 00:04:55.333 When you. 00:04:55.783 --> 00:04:57.733 Are signing these type of contracts. 00:04:57.733 --> 00:04:58.963 Now that becomes a reality. 00:04:58.963 --> 00:05:04.723 So you have to account for it, you have to do the estate tax planning, you have to do 00:05:04.723 --> 00:05:09.373 complicated sru, uh, you know, structures to try to mitigate some of that. 00:05:09.373 --> 00:05:12.583 And so cutting that in half allows more money to be passed 00:05:12.583 --> 00:05:13.783 on to the next generation. 00:05:14.113 --> 00:05:15.133 It's just smart planning. 00:05:16.063 --> 00:05:20.113 And then, I mean, over generations you have to bring. 00:05:20.758 --> 00:05:25.828 The kids, the grandkids, into the conversations, into the planning, 00:05:25.858 --> 00:05:28.648 into, um, those type of discussions. 00:05:28.648 --> 00:05:31.378 'cause if you don't prepare them, they will never be ready 00:05:31.378 --> 00:05:32.848 to inherit that kind of wealth. 00:05:33.328 --> 00:05:36.898 And everyone worries about spoiled kids, but that's like, that's the 00:05:36.898 --> 00:05:39.478 reality of what can happen if you don't. 00:05:39.958 --> 00:05:43.768 Start early with your kids to be able to prep them for that, and then 00:05:43.768 --> 00:05:47.188 the grandkids, and then prep your kids to prep the great grandkids. 00:05:47.188 --> 00:05:50.668 And it's just all the way down the line because it's, it's a lot of 00:05:50.668 --> 00:05:54.838 times the relationships and a fancy word for passing down your, your 00:05:54.838 --> 00:05:57.028 values fam, family governments. 00:05:57.028 --> 00:06:00.838 And so Rick, I know you're gonna talk about that, but things like work 00:06:00.838 --> 00:06:04.888 ethic, how you, how you made that, that first generation money in the first 00:06:04.888 --> 00:06:07.618 place matters immensely to how much. 00:06:08.488 --> 00:06:10.918 Those kids are gonna care about that in the future. 00:06:11.788 --> 00:06:15.298 Riccardo Stewart: I mean, you used the word spoiled, and if you think about food 00:06:15.448 --> 00:06:19.888 or even a drink, like think about milk, that that goes bad or spoils, it's usually 00:06:19.888 --> 00:06:24.718 you didn't take care of it, right, or you left it in the wrong place or it expired. 00:06:26.098 --> 00:06:27.988 Family governance is the ideal of going. 00:06:28.348 --> 00:06:32.578 You've made something and now you have to prepare your kids for 00:06:32.578 --> 00:06:33.928 what they're going to receive. 00:06:34.603 --> 00:06:35.923 And how that looks like. 00:06:36.103 --> 00:06:38.833 And not just how you made it, but how to continue it. 00:06:39.133 --> 00:06:43.063 And most of us, we don't understand that because even on this thread, like if we 00:06:43.063 --> 00:06:48.133 were honest, most of us are in a position that is better than what our parents were. 00:06:48.373 --> 00:06:51.793 So our parents did what they wanted to do, and that is, I want you to 00:06:51.793 --> 00:06:53.173 be in a position better than me. 00:06:53.533 --> 00:06:56.053 Well, what happens when you are in that position? 00:06:56.443 --> 00:06:57.673 How do you continue it? 00:06:58.063 --> 00:07:01.033 And that's why the family governance, the family leadership is how do 00:07:01.033 --> 00:07:06.523 I plan and build a family that understands how to begin to continue 00:07:06.703 --> 00:07:10.993 and grow the family business, because that's essentially what you're in. 00:07:11.173 --> 00:07:14.473 And it takes a particular skill set and a team of a family office 00:07:14.473 --> 00:07:19.213 that has a men and women in place to be able to help those things. 00:07:19.603 --> 00:07:24.133 Jeff, when it comes to supporting multiple generations. 00:07:24.523 --> 00:07:26.503 Like, gimme some examples of what that looks like. 00:07:28.543 --> 00:07:30.103 Jeff Locke: Yeah, so Zach mentioned Brock couple times. 00:07:30.133 --> 00:07:31.753 We're talking about Brock Purdy, right? 00:07:32.053 --> 00:07:36.583 Last couple podcasts we really talked about what could possibly happen. 00:07:36.973 --> 00:07:40.843 With him and the money he's gonna earn in this contract he just signed. 00:07:41.623 --> 00:07:41.893 Right? 00:07:41.893 --> 00:07:47.173 So we've been fortunate to work with a lot of clients like Brock, right, who 00:07:47.173 --> 00:07:53.023 have money, enough money for themselves and for multiple generations of their 00:07:53.023 --> 00:07:58.093 family, and we've helped them set up these special trusts and vehicles Zach talked 00:07:58.093 --> 00:08:03.643 about to try and avoid how much goes to the government when they pass away, right? 00:08:03.643 --> 00:08:07.108 Some of the things we've seen, which are pretty cool, number one's I 00:08:07.108 --> 00:08:10.708 want to pay for college for every one of my kids, every one of their 00:08:10.708 --> 00:08:13.738 kids, every one of those kids kids. 00:08:14.038 --> 00:08:16.378 And you can do that with special structures. 00:08:16.438 --> 00:08:19.888 Never have to worry about paying for school again for multiple 00:08:19.888 --> 00:08:21.208 generations of your family. 00:08:21.718 --> 00:08:23.698 A huge thing you can pass on. 00:08:24.208 --> 00:08:25.858 And that's the legacy, right? 00:08:25.858 --> 00:08:25.918 Yeah. 00:08:26.938 --> 00:08:32.158 Uncle Brock never met him, but all of us have gone to school forever 00:08:32.368 --> 00:08:33.988 without having to have it paid. 00:08:34.588 --> 00:08:35.548 Other things like. 00:08:36.538 --> 00:08:39.928 Buying a first house and you're the down payment funds for every 00:08:39.928 --> 00:08:43.198 single kid's, first house in all their kids' houses, right? 00:08:43.198 --> 00:08:44.758 A huge leg up in life. 00:08:45.358 --> 00:08:49.438 Maybe without, like Ricardo said, spoiling, right? 00:08:49.438 --> 00:08:52.918 Not giving them the mega mansion, but down payment funds. 00:08:53.338 --> 00:08:54.838 Same with starting a business. 00:08:54.928 --> 00:08:59.068 You could be the seed money for everyone's first business, you 00:08:59.068 --> 00:09:00.808 know, as they get older, right? 00:09:00.808 --> 00:09:03.118 Help them go out and be their own entrepreneur. 00:09:03.508 --> 00:09:07.168 Really try to work for themselves, try to create something of value, and you 00:09:07.168 --> 00:09:10.108 help them get off the ground to do it. 00:09:10.828 --> 00:09:12.658 We talked about in the last episode, right? 00:09:12.658 --> 00:09:16.078 Sam knows all there is about giving and sharing. 00:09:16.108 --> 00:09:20.398 You can have a private foundation set up where every generation of your family 00:09:20.458 --> 00:09:24.208 keeps running The private foundation keeps making that money last to help 00:09:24.658 --> 00:09:29.878 charities, communities you care about and you can make special rules, right? 00:09:30.058 --> 00:09:30.508 This. 00:09:31.063 --> 00:09:32.953 Family member gets money unlocked at 30. 00:09:33.013 --> 00:09:36.823 This family member gets money unlocked at 40, and these are all things you 00:09:36.823 --> 00:09:42.793 can think about when passing down wealth in a smart way that avoids Mr. 00:09:42.793 --> 00:09:46.333 Government taking 40% every single time it passes. 00:09:48.493 --> 00:09:50.953 Riccardo Stewart: There's things that I have that I own now that I'm going, 00:09:51.043 --> 00:09:55.543 I never knew existed, or I never knew I needed, and it's beyond just luxury. 00:09:55.693 --> 00:09:59.293 It's just the reality of going, gosh, I, I need that now. 00:09:59.953 --> 00:10:05.143 You know, whether it's, you know, certain sorts of furniture you have or you know. 00:10:05.923 --> 00:10:10.483 Dishes that you have that you just need, when you get to a certain level 00:10:10.483 --> 00:10:14.863 of wealth, you've never thought of it, but you need a family office, and 00:10:14.863 --> 00:10:18.583 it's not just something where you're acting bougie, it's just going, most 00:10:18.583 --> 00:10:20.023 people have never thought about it. 00:10:20.023 --> 00:10:23.833 They've never heard of it because they're not at the wealth that you are at When 00:10:23.833 --> 00:10:28.063 you've created that value and captured it with the contract and then you converted 00:10:28.063 --> 00:10:32.563 it, now you have after tax dollars in your pocket, multimillion million dollars. 00:10:33.088 --> 00:10:36.928 It's hard just to go to an FA who's really thinking about just investments. 00:10:36.928 --> 00:10:41.188 Let's just be honest, who may just hire out another CPA for you to 00:10:41.188 --> 00:10:43.018 think about just being tax compliant. 00:10:43.468 --> 00:10:43.498 I. 00:10:43.498 --> 00:10:45.823 Who's not thinking about insurance, who's not thinking about estate 00:10:45.823 --> 00:10:48.553 planning, who's not thinking about how does this wealth not only get 00:10:48.553 --> 00:10:53.113 to your kids, how do they instruct, equip and train your kids so that they 00:10:53.113 --> 00:10:54.703 will train their kids and so forth. 00:10:54.913 --> 00:10:57.883 Like, that's a, that's, that's a team of experts that are 00:10:57.883 --> 00:10:59.023 thinking about your wealth. 00:10:59.023 --> 00:11:00.763 We're talking about Vanderbilt. 00:11:00.943 --> 00:11:05.953 We're, we're, we're talking about names that you are a part of now, and 00:11:05.953 --> 00:11:10.153 so you just can't go to the, the, you know, run of the mill kind of person. 00:11:10.813 --> 00:11:11.413 And so. 00:11:11.968 --> 00:11:16.078 If you were thinking about, okay, I've heard about this family office. 00:11:16.648 --> 00:11:19.618 I've heard of, I've heard about it, I don't know what it is. 00:11:19.738 --> 00:11:21.538 Listen, we would love to talk to you about it. 00:11:21.958 --> 00:11:26.488 In fact, these last four episodes were about what does it look like 00:11:26.608 --> 00:11:28.828 to have an athlete family office. 00:11:29.398 --> 00:11:30.778 Please reach out to us. 00:11:30.838 --> 00:11:31.888 We'd love to hear from you. 00:11:32.158 --> 00:11:33.628 We'd love to give you some resources. 00:11:34.108 --> 00:11:38.428 Our number is 6 0 2 9 8 9 5 0 2 2.