EP133: FINANCIAL LITERACY...THE ROAD TO WEALTH BUILDING | DAVID FLORES WILSON
- Tony Bradshaw
- 2 days ago
- 24 min read
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DAVID FLORES WILSON | SINCERUS ADVISORY | CFP AND CFA
SUMMARY
In this episode of the Millionaire Choice Show, Tony Bradshaw interviews David Flores Wilson, a top financial advisor, about financial literacy and wealth building. They discuss the importance of comprehensive financial education, the role of family influence in financial habits, and the significance of diversified investment strategies, including real estate. David shares personal anecdotes about his upbringing and professional journey, emphasizing the need for intentional risk management and the benefits of entrepreneurship. The conversation also covers the five pillars of financial literacy: saving, investing, managing taxes, managing debt, and protecting assets.
TAKEAWAYS
David Flores Wilson emphasizes the importance of financial literacy beyond a single semester in school.
Tony Bradshaw advocates for 12 years of financial education, similar to other core subjects.
David shares his experience growing up with financial insights from his CPA father.
The significance of having the right advisors to avoid financial pitfalls is highlighted.
David discusses the three buckets of a diversified portfolio: safety, market, and aspirational.
Real estate is presented as a valuable component of a diversified investment strategy.
Tony reflects on his journey from a job to entrepreneurship and the mental shift required.
David advises on the importance of understanding tax implications in financial decisions.
The episode concludes with the five pillars of financial literacy: saving, investing, managing taxes, managing debt, and protecting assets.
David encourages listeners to focus on continuous improvement and personal development.
KEY INSIGHTS
"Financial literacy is more than a semester."
"Twelve years of money education is essential."
"I hit the financial literacy lottery."
EPISODE SEGMENTS
Introduction to David Flores Wilson
The Importance of Financial Literacy
David's Personal Financial Journey
Investment Strategies and Real Estate
Entrepreneurship and Financial Freedom
The Five Pillars of Financial Literacy
Connect with David Flores Wilson at SincerusAdvisory.com
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show transcript
Welcome back to the Millionaire Choice Show and today you guys are going to be listening to David Flores Wilson. Now, if you've been listening to the Millionaire Choice Show for a while, you might realize that I probably have never used three names before in introducing a guest. But why you should know that is because David Wilson is a fairly common name. Apparently, it is the name to use when you're a financial advisor. so David Flores Wilson wanted to just differentiate just a little bit, which is wise in the business world.
So he's a managing partner at Sincereus Advisory. Love the name, David. Love the name. And then he's also been named as Investopedia Top 100 Financial Advisor for a couple of years recently. So you guys are in for a treat. You're hearing from a structured, trained money wealth expert who loves helping people and families learn to build wealth and create stability, financial stability and security for their families. David, welcome to the show.
David Flores Wilson (00:57.659)
Thank you so much and thank you as well for all the work that you do in financial literacy, whether it's the podcast, your book, and the other work you do. America really needs it.
Tony Bradshaw (01:08.704)
Yes, they do. Yeah, I was just having a good conversation with some new friends of mine today and I worked on this model David where it's like, What should financial literacy look like not the one semester that you get right? The the government checks the box and says hey, let's pass some financial literacy you get one semester check the box You know I'm a big believer that if you're gonna be good with money if you want to be good with money You got to learn how it works You got to take time to study it just like you do math English and science you get 12 years of math English and science
You should really get 12 years of money. You should get 12 years of financial training when you're in school. And I would like to see that implemented. Especially I'll work on that. It'll be one of my life's goals. And then that way when you graduate, you've got the one thing that you probably need the most of, which is true financial literacy, not just one semester. so you didn't grow up with money, David. We were talking before the show, right? And I think you faced a little bit of hardship and struggle. So if you wouldn't mind share that with the future millionaires that are listening.
David Flores Wilson (02:07.692)
Yeah, for me, I was born and raised in Guam and my parents were divorced. so essentially, it's almost like a Robert Kiyosaki thing where I had sort of two families. on my dad's side, he was a CPA. And I hit almost a financial literacy lottery, right? Because at the dinner table, not that he was talking about taxes when I'm eight, nine years old, but you would say it's little nuggets here and there, whether that's telling us about the rule of 70 or
I just saw that sort of the impact that he had on his clients and this sort of consultative way that he advised business owners and people and they really relied on him. And so I just kind of would pick up those things, whether issues around the stock market or taxes. And as well on my mom's side, there was a family business, my grandparents owned a series of family businesses and
And so they had a farm, a couple of retail stores, it was sort of my responsibility, whether I was seven years old, 12 years old, 15 years old, to work in those businesses on weekends and summers. And there's nothing like being 11 years old and working in the hot sun picking mangoes that you really realize like, maybe I don't want to do this the rest of my life. And I didn't appreciate it then, but I really appreciate it now in terms of just that commitment to hard work.
And so I think of investing often times is farming as well. And so what I saw in that business, was my grandparents actually, these pillars of my community, they were so ethical, so respectful, so admired in the community for their hard work and their fairness and their business dealings. But what I saw was that they didn't have the right advisors around them.
They made some horrible decisions. so they lost one of their businesses because they didn't have the right coverages and there was a lawsuit and they lost that business in a lawsuit. This is sort of the height of the 80s real estate boom in terms of Japanese capital coming to the US territories and purchasing. They had an offer on the table for something like $12 to $15 million for a piece of property.
David Flores Wilson (04:30.744)
that today would go for about $200,000. And the analytics around that decision weren't rigorous. so as well, they didn't have an estate plan. So when they passed away, their estate was in probate for many years. so I think it's sort of you kind of take those things that happen, you kind of see the mistakes that I saw the mistakes that happened are kind of around me. And so
I try to make sure that when I'm advising families, particularly family businesses or otherwise, that we go through our checklists and they don't make those kinds of mistakes. Because I think one of the biggest ways to grow wealth is just to get that baseline of playing defense and say, risk is good, but we have to be very systematic and very intentional when we take that risk. So it's not sort of two steps forward, two steps back kind of thing.
Tony Bradshaw (05:28.734)
Yeah, absolutely. I agree with you there. think it's interesting because people are at different levels of risk. I got a friend that like I don't even know he has a risk meter. He just he's like risk. What are you talking about? Like throw it here, throw it there, throw it everywhere. And you got other people that literally are trying to lower risk to the lowest level humanly possible, which basically means you don't make any money. Like you can't even beat inflation with those types of investments because there's no way to keep up and beat inflation.
You're lowering your risk to like near zero. It's a it's like an statistical impossibility So I love I love that I kind of sit somewhere in the middle where I'm kind of like I think it's times I'm risk averse other times I'm risk embracing, you know, got into cryptocurrencies back in 2017 probably should have got in a little bit earlier, but I got in a decent time You know Bitcoin was around $6,500. I dropped like $150,000 in it back then in 2017
Saw it fly up to about 500, so that's not too bad. 90 days, 150 to 500. But then I wrote it down just as fast as I wrote it up. it was a good ride up and a good ride right back down. And I didn't lose money, but I did learn a lot. And so that was a different type of investing. I was stuck in a buy and hold mindset back then. And now through that learning, I would do things a little bit differently. Then I would implement different strategies. But that's where I was at the time.
David Flores Wilson (06:27.598)
Yeah.
Tony Bradshaw (06:52.752)
You grew up in a pretty monetized, fairly monetized family, conscious, like you said, your dad was in accounting, I believe. And so, yeah, and you learned a lot from that. That's pretty beneficial. Would you say that he was investing minded or was he just like money management minded? Cause those are two very different things.
David Flores Wilson (06:59.904)
Yes, CBI.
David Flores Wilson (07:12.054)
It is interesting, right? Because I think that we work with a lot of CPAs when it comes to sort of making an impact on people's finances. And for example, someone might have some stock options to execute and we're kind of like, hey, well, should we execute these this year or next year? And what's the financial implication? What's the tax implication? Oftentimes, I saw it in my own father that he was...
oftentimes backwards looking, right? When it comes to sort of accounting, that's sort of the nature of accounting. But as well, so he generally was a little more conservative. But I think that it's kind of interesting, I've been in this business, financial services for 25 years. I've had an investment banking career and I've been an advisor for 15 years. And I think it was,
was already 40 years old where he was like, you finally realized, was like, you know what? Now it's time for me, you know, my son to manage my money, right? So I think that, when it comes to sort of that, we see that sort of generational conflict sometimes and saying, hey, know, when there's sort of finally trust in the first, by the first generation to, for example, take over a family business or something like that, you know, oftentimes, you know, those are some of the issues that we deal with often, where, you know, the second generation is ready to go.
They are looking to implement modern business techniques. But that first generation, they have so much wisdom and expertise. But for that business to grow, the succession needs to happen. But just being mindful of those different things when it comes to generational wealth.
Tony Bradshaw (08:58.248)
Yeah, they call that Dave Reams, he calls that the powdered butt syndrome.
powder your butt they can't listen to you. My dad, it's interesting because my dad's still working full time at 74 years old and he never really made the transition into financial wisdom and he's a working dude. He's blue collar, working guy and just grinds it out every day. 74 years old, still doing manual labor, doing cabinetry work and things which also probably keeps him alive and keeps him little bit healthier. But at the same time, doing smart things with your money and being able to build wealth.
David Flores Wilson (09:07.65)
Yeah. Yeah.
David Flores Wilson (09:15.138)
Yeah.
David Flores Wilson (09:25.484)
Yeah.
Tony Bradshaw (09:31.958)
like to see it as a financial freedom, but in a different way. It's freedom to live life the way you want to versus having to live it on somebody else's terms. One of the biggest things, and I'd love to hear your thoughts on this. I haven't had a job since 2016. had – that's when I left the Ramsey organization.
I had about eight months off that I got another job for about five months and then I haven't had a job since 2017 May 2017 and What's interesting is how? long it took me to shift to a space of not having a job in the freedom that it brought like like you literally can do anything anytime you want as long as you've you do your productive as long as you learn how to be productive and
It's so interesting to go, wow, like should everybody live this way? You know, like I would, I that's, that's where I strive to go. Okay. The company that I build, I want every dad, every mom to be able to spend whatever time they want to or need to with their family, with their children. And I want to build a corporate culture that embraces that freedom. you know, not the two week vacation a year model or the three week.
David Flores Wilson (10:31.502)
I don't know.
David Flores Wilson (10:49.71)
Sure.
Tony Bradshaw (10:50.47)
Or, you know, I think when I got my third week of vacation after five years on the job, was like, wow, I get another week of vacation. I'm like, that's so pathetic. It's like, what kind of life is that where you work 40, 50, 60 hours a week and you celebrate because you get three weeks vacation a year and you don't see your family most of the time. It's terrible. But you're kind of in that space too, right? Cause you're working for yourself. You're entrepreneur. You got financial advisory service. What does that look like?
David Flores Wilson (11:14.476)
Yeah. No, it's kind of interesting, right? Because I've been advising entrepreneurs and business owners for 15 years or so in their personal finances, but I wasn't a business owner myself until May of 2020. And so it's interesting now that I sit in this seat and you kind of understanding, okay, well, we got to do quick books and we got to...
think through our hiring process and how are we going to develop the talent that we bring in, how are going to orient them, what sort of path to echo are we going to have. And it's a different set of skills that I frankly didn't have until I was kind learning in the trenches. And I encourage any sort of entrepreneur to join some of these peer groups with business owners, whether that's Entrepreneurs Organization or YPO or Vistage.
because it can be a lonely journey, right? And I think entrepreneurship, it's working out. I love it. It sounds like you're passionate as well. And in terms of a path to wealth, because there's only sort of three ways that people can make a of money, right? You can either sort of inherit it. You can have a large income for a long period of time, or you can go into entrepreneurship. so, and only in entrepreneurship can you kind of break that cycle of exchanging time for money.
and use real leverage, right? And that's leveraging technology or leveraging hiring people or leveraging capital to extend those earnings to, frankly, to potentially even one day even more, not just in the business, but over the business, potentially create passive income. But it's not for everyone, right? And so I think that...
We see a lot of people kind of do this, for example, we work with lot of people in New York, they might be working in big tech, they go into the startup world, it's very different situation, right? terms of the structure, it's less certain, frankly, there's more pressure, they take an earnings hit in the short term for potential equity upside, but some of them are so happy that they did it, right? Because it just, for them, for the...
David Flores Wilson (13:33.676)
right person is the only way to live. For other people, it could be a disaster, right? Just sort of that uncertainty of the business, you know, what's going to happen, you know, so many business owners and the stress they have to deal with when COVID happened or, you know, when interest rates shot up or whatever else is sort of next. And, but, you know, it's, you know, I love it. And I think, you know, we sort of highly encourage people to
to be intentional about, okay, well, what are your values? What are your goals? Even take personality tests before they sort of make that transition to entrepreneurship, and then kind of handhold them with making introductions and things like that. But it could be very rewarding for the right person.
Tony Bradshaw (14:21.94)
Yeah, it's interesting. talked to a buddy of mine who is entrepreneur and I asked him because I felt like I was way behind the curve. I didn't feel like I was performing well as an entrepreneur, which I still question sometimes. And I asked him, how long did it take you to make the mental shift from being a job guy, J-O-B to an entrepreneur? And he said 10 years to fully shift, like to mentally fully shift to go, this is what I'm
And I find that number to be, you know, I was in the job workforce probably started working with my mom and dad, probably six, seven, eight, and doing little odd jobs. Mom had me stocking the Pepsi's and the Cokes and the freezer. Had to wear a jacket, go to the convenience store, go stock the shelves for until, you know, I was 46, 47. And then I started the, entrepreneur, really started my entrepreneurial journey at 47.
David Flores Wilson (14:59.661)
Yeah.
Tony Bradshaw (15:10.81)
And it does man. It is a mental shift to go. Okay What is the the task that I have to do because in a job you have structure to be productive and you're kind of forced to be productive or you get fired as an entrepreneur Nobody's really policing what you're doing and you can be really busy but doing the wrong things and not get any progress right and I think that's for me. That's been the hardest thing is to go. Okay, what are my priorities? And I've done a lot of good work. But at the same time, I'm not a naturally wired sales guy. I could do sales
David Flores Wilson (15:21.208)
Yeah.
David Flores Wilson (15:30.062)
Yeah.
Tony Bradshaw (15:40.616)
But I don't wake up every morning like a true sales guy does it goes hey, how am I gonna put you know $100,000 on the books today or $200,000 on the books? I don't I don't operate that way I'm more of a builder entrepreneur, but like you said taking a personality profile test guys We don't really talk about that a lot. So we'll ask David what he recommends but I the first personality profile test I took David was back in 2001 when I went to work for Dave Ramsey and it was called the disc profile the DISC profile fantastic great tool
David Flores Wilson (15:47.81)
Yeah.
Tony Bradshaw (16:09.864)
Dave implemented it well. Since that time, I've probably taken maybe 10 different personality profiles. And I find that each one tells me something a little bit more about myself that helps me understand myself more, both in how I work and how I live. And even in marriage relationships with my wife. And I've had my wife take quite a few of these too, so I could look at how she works. But what are some of the tools that you've implemented?
David Flores Wilson (16:31.214)
Yeah, think the most important thing, you because I do have a business partner, right? And so we're 50-50 in this business and we've known each other, I guess we knew each other about eight or nine years before we became business partners. know, we hung out socially. We would talk shop or, you know, like here and there. And, you know, but what we realized is that we needed a coach, right? And so before we became business partners,
We worked with, I'd say about 18 months with this coach and there was a book called the Partnership Charter that we read and essentially basically it kind of goes through the ins and outs and the what ifs about becoming partners. Like what is this going to look like? Who's going to focus on what? And if conflict arises, what will happen? so for example, I think we did end up doing the Colby.
and this was some years ago, and it would sort of assess our working styles and how we would work together. And it sort of predicted certain things, right? We'd have a lot of respect for each other, but every once in a while we would need to structure specific time to talk about sort of the big issues. you know, because we would sort of got along so well, but, you know, to get along, to go along kind of thing is just not enough, right? In a business.
especially two very different people personality wise, we're bringing different sets of skills, complimentary and so amazing in terms of the synergy, but how do we work out some of these issues? So I think that having a coach, having people to talk to about this that were objective, that could kind of evaluate and say, hey, this is partners Dan, Dan, you're like this, David, you're like that, you should probably think about this issue.
And so that was super helpful as sort of a baby step into entrepreneurship. Because it can be stressful, there's just a lot going on. And to kind of speak to your point of there's no one, we're accountable to each other. But oftentimes when a business owner is alone, we all kind of do this. We know what the highest value activities are to grow the business. We know what those KPIs are.
David Flores Wilson (18:56.11)
And yet sometimes we're still around with admin work, right? We're doing things that's technically work, but it's not helping the business. And so at the end of the day, everything is either sort of delivery of the service or distribution, right? In terms of marketing, sales, et cetera. And so in the startup world, there are tinkers who really want to focus, create the best product possible, but then they ignore marketing.
And so, you eventually an amazing product that the world needs and it solves a real problem will get out there. But you have to find that right balance in your business and sort of your personality between, you know, that sort of marketing distribution side of it and versus the, you know, working on, you know, being the best in your vertical, whether it's a product or service.
Tony Bradshaw (19:48.882)
Yeah, I totally agree with you. think that's one of the things I've learned is cause I'm a builder entrepreneur. build products, I build strategies, I build visions, I build, build, build. But when it comes to, you know, execution, it's like, I okay, what's, if I had to sit down and I said this on a couple of podcasts is like, if you're going to be an entrepreneur, what is that one skill that you really have to have?
to make a go of it. And where my head's at, I don't know if you agree with this, is mine, it's gotta be sales. It's gotta be sales and marketing. Like you have to, like it has to be very high. If you're not naturally gifted at it, you're gonna have a hard time. Like you just are. If you can't get out there every day, wake up, go, hey, how am I selling my product today? Or if you even understand sales, and it's okay guys, if you don't have that skill, but I don't care who you are, like read a book, read several books.
David Flores Wilson (20:25.518)
Thank
Tony Bradshaw (20:36.98)
You know put some effort in and because we're all selling something it might not be a product But you're selling ideas if you're married you're selling your wife on the fact that you're a good husband Or if you're your husband on the fact that you're a good wife, you know You're always sell your kids like hey do this, know take out the trash. Why am I taking out? Just that you're selling the trash, you know and but Yeah, and and so when you do that Did you find that you needed to study some to get up on up to speed or you what's your model for creating sales?
and meeting that need for the organization.
David Flores Wilson (21:09.4)
Yeah, I think the interesting thing about sales, is that...
It wasn't my natural skill set. I had an investment banking career for eight years. I was a junior person and didn't work on that sort of sales muscle. But sales means different things for different people. And I think there's sort of this classic vision of what people had as a salesperson. And it may not be true, right? Because I think sometimes, I I looked at sort of the startup world where someone comes from the engineering world, but they're so passionate about what they made.
They know in their heart of hearts that what they made is going to impact the lives of consumers. And so they've worked on the product so much. then when it comes to maybe raising capital, they're able to display that passion. So if you believe that what you're doing is at the elite level, then that passion is going to come through, whether you're trained in technical sales or not, all these different sort
structures. so I think that's the most important thing if someone wants to be successful in entrepreneurship is to just really believe in what they're doing and the impact that they're making. And so my personal philosophy is always just to get 1 % better. And so every week, whether I'm reading a book or going through the IRS code or jumping on a couple of webinars on estate planning or something for business owners,
You know, I just want to make it unreasonable that it's not successful, that I'm not successful because I've just put so much time in it and sort of worked on the product, right, and worked on my personal skills. We talk about investing a lot with clients and you you can invest in the liquid markets, you can kind of invest, you know, in a real estate side or businesses. I think a lot of people also don't think about, you kind of investing in themselves and just making
David Flores Wilson (23:13.43)
the best version of themselves and so that they can have an impact on their business and their community and their families through that.
Tony Bradshaw (23:21.884)
Yeah, 100 % agree. Now you said something pretty interesting and honestly, I haven't heard I think any financial advisor ever say this, especially on the show, which is you're a financial advisor that just brought up real estate, advising people to get into real estate. Most financial advisors I find don't touch real estate. They don't touch other types of investments because they don't make money on them. They usually don't make money. They usually only push people towards mutual funds or stocks or some kind of product that's in the
The financial services space might be insurance, whole life insurance or something like that. So why don't you talk just a minute for the audience about like that portfolio, how your approach to helping somebody build a portfolio that is truly diversified, right? Cause if you just buy mutual funds, you're still not diversified inside of the asset classes. You're just, you're still in one asset class, which is not true diversification.
David Flores Wilson (24:01.954)
Okay.
Yeah.
David Flores Wilson (24:16.268)
Yeah, mean, when we, oftenly doing advising, right, doing our financial planning, and people can do this for themselves, is that you want to think about your whole balance sheet. so a framework we like to use is to kind of break up your balance sheet into sort of three buckets, right? You have your sort of safety bucket, and each one of these buckets is for something different. You have your safety bucket, which would be that kind of the cash that you have, as well as the equity in your home. Then you kind of have your market bucket.
And that market bucket is your 401k, your brokerage accounts. And eventually, our advice generally is that that market bucket will one day build to cover living expenses, your basic living expenses. And then you have your aspirational bucket. And in your aspirational bucket, that could be investments in private equity, private businesses, or as we're discussing, real estate. And so whatever your core skill set is,
you maybe you want to spend some time on that aspirational bucket, right? And so that's the aspirational bucket that will bring you to the next level and not just sort of cover your living expenses, but also provide for a higher lifestyle in the future, maybe even provide legacy for the next generation. because real estate is not for everyone, but the tax code is built that there are so many advantages to purchase.
manage and sell real estate, right? You can't do a 1031 in the stock world where you take the capital gain and you kind of just roll it forward or opportunity zones. You can't create cost segregation studies in the stock world where you can have accelerated depreciation and you're cash flowing positive and yet not paying any taxes. And so I think people should be
Shouldn't be sleeping on real estate. in this environment, it's very challenging given the interest rates. And real estate isn't for everyone because this sort of turn around passive income comes up a lot. But it's not passive income. It takes a lot of work to implement these strategies. And I think at the end of the day, if you're doing real estate, you've got to know what your comparative advantage is. So your advantage could be that you have access to lower capital. I'm sorry, lower interest rates capital or maybe
David Flores Wilson (26:36.456)
Maybe you're just one of those people that is really good at identifying surging demographics, right? And you're like, you can pick the next Nashville or Boulder, Colorado or wherever, and you can kind of see that before other people. So yeah, I think looking at the full balance sheet is super important. And I think I'm sort of seeing is it right for you, right? In terms of how you allocate between the different buckets.
Tony Bradshaw (26:59.54)
Yeah, you I love that you said that, especially about the tax stuff, because my first round, if you look at my life, it was 25, I was broke, then I put my plan to be a millionaire together, become a millionaire by age 40, and then dinked around, you know, at the millionaire, multimillionaire level, low multimillionaire level for a little while. But I never learned about taxes in that season. And I tell you what, between, we paid, I think I did the math, and we've paid...
close to a million dollars in private school and college for our six kids so far. We did start homeschooling a few years ago for the last three. They wanted to be home. They got tired of being in classes that wasted their time, and now they do self-study and are phenomenal at it. That was a cool thing to shift in that space, but I did not realize in those seasons anything about taxes. I literally blew it. If I run the math,
I'm pretty sure we paid somewhere at least a million, maybe as much as two million in taxes. And I'm like, my goodness. nobody, never heard anybody say this guys, listen to this. Okay. I'm going say it and I'm going to let David repeat it because he, but he's going to say it too. Cause I know he believes us. Your single biggest item on your expense sheet for your lifetime is going to be your taxes. It's going to be the biggest item as far as expenses go.
And I didn't understand that. And so when you mentioned like people buying in real estate, all the super rich dudes have real estate. Why? It's for the reason you just said. It is a great tax haven for money because it's you're able to get out of a lot of those taxes or defer taxes and, and, and move things around. And it just, it's very favorable to the taxes. Like the codes written that way.
David Flores Wilson (28:47.79)
Yeah, I think, you know, not that taxes should rule your life, but I think whatever that life event is, right, whether it's, you know, sending kids to school, right, if they're going to private school in New York City, you have a, you know, you have a deduction up to $10,000 for 529. So there's some people potentially even like, oh, well, I'm going to, have a check for my private school. I'm going to get the deduction. And then a couple of days later, I'm going to take the money out and pay for the school. Right. And so, you know, whether it's,
sort of the all these different life events have a tax impact to them, right? So in addition, people should be thinking through just basic things around how they're investing, right? In terms of, know, keeping turnover low. So they emphasize long-term capital gains over short-term capital gains, as well as, you know, getting more qualified dividends or versus non-qualified dividends, know, putting the right securities in the right accounts. And so, you know, I see sometimes people, you know, again,
I'm not saying this is always a bad idea, but oftentimes people are buying real estate through an IRA. I'm like, well, you you get a lot of tax benefits from owning real estate outside of an IRA, but if it's in the IRA, it grows a bunch. And then all of a sudden you turn something that was capital gains into ordinary income, which is at a higher tax rate. And so just being really smart about these, finding the right advisors, building the right team, know, really getting up to speed.
on some of these issues, whether you're a business owner, a whole different set of tax opportunities. If you're in real estate, you've got a whole other different set of tax opportunities. If you're just consulting on the side, know, wait for 1099 or something like that, you know, more things become deductible, know, opportunities for more, you know, tax deferred accounts and so on. So, but, know, of course it's good to find balance as well because, you know, we see sometimes people go too far and there are
aggressive strategies out there and you don't want to shift your focus away from the business or what you're focused on to sort of, know, to conflict with the IRS or your state or something like that, right? So, you know, having the right advisor to think through the pros and cons of different strategies.
Tony Bradshaw (30:59.036)
Yeah, it's been great, David. Yeah, thanks for everything you shared. Now, we're wrapping up the show. What kind of last words of wisdom you have for everybody? Share that. And then if you would, tell them how they get in touch with you. Follow up. Maybe get connected.
David Flores Wilson (31:13.678)
Sure, mean, think that, you know, generally we think that there's five pillars of financial literacy, right? So saving, investing, managing taxes, managing debt, and then protecting what you have. so kind of just focusing on those different areas and kind of getting better a little bit. I think most people are kind of maybe might be doing one or two of those things. If you're doing three or four of those things well, you're going to make progress and that net worth is going to grow over time.
But yeah, if you want to get in touch, can just Google David Flores Wilson, find me on LinkedIn or our website or our blog and take them there.
Tony Bradshaw (31:50.204)
Awesome. Hit the five pillars one more time because you did hit it pretty quick.
David Flores Wilson (31:54.446)
Five pillars are saving. And that's of course where you're saving and how much you're saving. Investing in terms of keeping expenses low, investing low turnover, finding the right rate of return on investing, protecting what you have, both your assets and your income, managing debt correctly, right? Because some debt is very helpful and others very harmful. And then managing taxes. Those are the five
Thanks
Tony Bradshaw (32:24.284)
Yeah, I love it. And guys, we'll put that on the show notes too. So when you hear this, make sure you check the show notes out. And then follow up with David. He's got some good wisdom. I love your approach. I love your mindset and how clearly you've put this out there for the future millionaires listening to the show, David. So I give you a thumbs up. A lot of financial advisors, I'm kind of like, you know, questionable or giving them a thumbs down. But I think you've got a lot of wisdom, man. And it sounds like you found your calling.
David Flores Wilson (32:50.838)
Yeah, I love it. thanks again for having me on the show and good to chat with you.
Tony Bradshaw (32:55.24)
Take care. All right. Yeah, I love that, man.