Wealth Formula Podcast

At a recent investor conference in Tenafly, NJ, I spoke on the topic of what I call Wealth 2.0. This is my preferred paradigm for investing that can be simplified into the the following equation: Wealth=Leverage(Mass X Velocity) Mass is simply the amount of money that is actually deployed into investments. After all, it doesn’t matter what kind of return you get if you aren’t investing any money in the first place. You’ve got to deploy enough to move the needle. The good news is that mass, like all variables in this equation, can be manipulated by the savvy investor. For example, paying attention to the tax implications of your investments can actually decrease your tax burden and free up more money to invest. Case in point, I have invested a significant sum of money into projects that we have presented through our Investor Club this year. I am estimating that, in addition to creating equity through my investments, I am simultaneously significantly reducing my tax burden for this year—up to 80 percent of all