TGCI 12: Heard of eQRP? (Qualified Retirement Plan) Invest using your QRP outside of Wall Street! – Part 2

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Episode 12 – Why an eQRP is the Best Option for Investing Your Retirement Money

Episode 12 – Why an eQRP is the Best Option for Investing Your Retirement Money

Summary

In this episode, Pancham interviews Damion Lupo, Founder and CEO, Total Control Financial. Damion reveals various reasons why an eQRP is the best option for retirement planning. 

This show starts off with Damion explaining an eQRP and its benefits in simple terms. How long does it take to set up an eQRP, and what are the costs? How does an eQRP compare to Self-Directed IRA and Solo 401K? You will also learn about the various restrictions for investing your eQRP funds. 

Towards the end, Damion shares some hacks that will help you save your tax dollars. Tune in for some excellent insights!

PanchamHeadshotTGCI
Pancham Gupta
TGCI 12 - Damion Lupo Episode 12 – Why an eQRP is the Best Option for Investing Your Retirement Money
Damion Lupo
Episode 12 – Why an eQRP is the Best Option for Investing Your Retirement Money

Timestamped Shownotes:

  • 00:46 – Pancham introduces Damien to listeners
  • 01:40 – Damien shares his background information
  • 02:55 – What is a Qualified Retirement Plan (QRP)? What about an eQRP?
  • 04:28 – How can you contribute funds to an eQRP?
  • 04:56 – What is the yearly contribution that you can make to an eQRP?
  • 06:20 – What is an in-service rollover?
  • 07:33 – Are there any restrictions on using your eQRP funds?
  • 08:38 – Can you buy precious metals using your eQRP funds?
  • 09:21 – eQRP vs. Self – Understanding the Difference
  • 10:32 – Do you need a third party custodian for a self directed IRA?
  • 11:48 – eQRP vs. Solo 401K – Which is the better option for you?
  • 14:02 – Can you rollover funds to eQRP easily?
  • 15:07 – What is UDFI?
  • 16:08 – Are you exempt from UDFI for a Solo 401K?
  • 16:40 – How long does it take to set up a QRP?
  • 17:17 –Damien shares a great tax-saving hack
  • 18:20 – Is there a ROTH component to an eQRP?
  • 19:37 – What is the cost of setting up an eQRP?
  • 22:52 –Can you used pre-taxed money from your retirement account in an eQRP?
  • 25:40 – Taking the Leap
  • 25:45 – When was the first time you invested outside of the Wall Street?
  • 26:25 – What fears had to overcome when you made your first investment property?
  • 27:34 – Can you share one investment that did not go as expected?
  • 29:05 – What is one piece of advice that you should give to people thinking of investing in the Wall Street?
  • 30:05 – Damien shares his contact information
  • 30:46 – Discover the TOP six reasons why you should NOT invest on the Wall Street; get your FREE report today
  • 32:05 – Got questions? Get in touch with Pancham

3 Key Points:

  1. What is an eQRP, and what are its various benefits?
  2. eQRP vs. Self-Directed IRA – Understanding the differences
  3. eQRP vs. Solo 401K – which is the better option for you?

Read Full Transcript

Introduction    

Welcome to The Gold Collar Investor podcast with your host Pancham Gupta. This podcast is dedicated to helping the high paid professionals to break out of the Wall Street investments and create multiple income streams. Here’s your host, Pancham Gupta.

Pancham: This is a part two of the two-part series. We discussed Self-Directed IRA last week. In this show, we are going to discuss another type of retirement account that you can use to invest outside of the Wall Street. It’s called QRP – Qualified Retirement Plan. Once you hear this show, you would not want to do any other plan but this plan. Today my guest, Damion Lupo is going to discuss something that will open up your mind on how to use your retirement money to build long term wealth using QRP. Damion is an American sensei, Yokido founder, 5th-degree Black belt, and financial mentor to transformation nation, best-selling author in personal finance, rewriting the rules and plan for retirement. His mission is to free 1 million people from financial bondage. Damion, welcome to the show.

Damion: Hey, Pancham. It’s really good to be here, my friend.

Pancham: Are you ready to fire up my listeners break out of Wall Street investments?

Damion: Man, we are going to break some shackles today.

Pancham: Awesome. Looking forward to it. So before we get started, can you give my listeners your brief background?

Damion: Yeah. So my background is really unconventional. I mean, I went out and what I think a lot of us do, I went and did a little college and well, actually got thrown out of college a couple of times, and it’s because I was wanting to do something else that wasn’t very mainstream. And then after that didn’t really work out. I started opening businesses and doing investments that were…I was really just making that stuff up. So I’ve started 40…I think I’m at 45 companies and have had 10s of millions of dollars in real estate investing, and a lot of stuff…

Pancham: Wow, 45 companies?

Damion: Yeah, yes, I’ve done a lot.

Pancham: Amazing.

Damion: I apparently I can’t help myself, I must keep doing it. Because it’s, you know, one in 10 or 20 is not enough. 45 apparently is the number.

Pancham: I guess it helps you with the adrenaline rush, you know?

Damion: Yeah…oh you learn a lot, too. I mean, that’s the most valuable things is willing to go there and a lot of those haven’t worked. In fact, most of them did not work. Here’s what worked though, I did. I worked my butt off and I learned a lot when things didn’t work out as I thought, and it made me stronger, and that’s the big lesson.  

Pancham: Absolutely. So all right. Let’s dive right in into the QRP, which you call Qualified Retirement Plan. What is really a QRP plan?

Damion: So the QRP is really just a term for all these retirement accounts, and that includes 401k’s and IRA’s, and all that kind of stuff. The difference though is when you start getting very specific; we actually created something called the eQRP, and what that is, it’s a way to take all of your retirement money from like IRA’s and 401k’s, and have control of it. So you can invest in things like real estate, or all the other than Wall Street stuff like precious metals, real estate, small companies and it just gives you the power and control and there’s nobody telling you what you can and can’t do. You have rules, IRS rules, but you get to do what you want to do, and it’s a totally different way of thinking, because I think most of us, especially people that are maybe working inside of a big companies, like we were talking about offline, the things, you know, big tech companies, and you’re really told it with retirement stuff, here’s what you can do. It’s one of five things, big bonds, big stocks, international stocks, and cash. It’s really limited, and this is a different way of investing. It’s really all sorts of stuff that you control, and all sorts of things that can really create wealth, and not just a roller coaster ride.  

Pancham: Okay, so let me put it differently if I understand it correctly, for my listeners. It’s exactly like your 401k when it comes to like retirement money, it’s tax-free. But it’s a completely different plan that can be done by anyone, and you can fund it with your 401k money or no? What kind of money can you put in into this plan?

Damion: Yeah, so it’s part of the same code. Here’s the thing though, if you’ve got money from your current job, and you leave your job, and you-you’re going to have a rollover, and you can actually take that money from your old 401k and move it into the eQRP. So you have the CheckBook control, and you can do things other than mutual funds or stocks. You can also take money that you’re making, if you’re consulting, for example, maybe you’re 1099ing or you’ve got some side income. Any of that type of stuff, you can also contribute and contribute a lot to like, unfortunately, a lot of people use IRA is where you can contribute like $5000 and…

Pancham; Yeah 5500, I believe at this point.

Damion: Yeah, it’s, you know its 2019 and it’s going to go up to 6000. You know, that doesn’t get you rich, just get you old and frustrated if you’re putting $6,000 a year into a plan. Well, the eQRP, it’s over 50,000 a year. And that is a major difference that can change your life if you’re able to put a million dollars over 20 years into your plan and then grow it 

Pancham: Right, no that’s a huge difference, and is there a limitation on that? Like, how you make your money, whether it’s W-2 or through business, there is no limitation on that $50,000 limit.  

Damion: This is for income that comes from some type of self-employment activity, it could be your own company, it could be consulting, you could flip a house, like there are a lot of different things that you could do, and it’s not income that you can, you can’t have your W-2 and use that money to put into this. If you’re a W-2, and all you have is that income, that maybe you’re you’ve got a 401k that you’re ultimately going to be able to roll over. But in terms of new income, it’s got to be some type of self-employment or something a company that you own or control.  

Pancham: Okay, all right. So going back to the W-2 job and your current job, let’s say I’m in my current job, and I have my significant money in the 401k. Can I roll over that into QRP or it has to be my previous employer?  

Damion: Normally, it’s going to be a job that you’re not currently in. There is something called an in-service rollover, where you can still be working for a company and they would let you roll that money into a plan like the eQRP. That’s an option. It’s available by law, but it’s not. A lot of companies don’t like that idea, because they’d rather keep your money stuck inside of the funds that they’re getting paid on. So it’s something that you can ask if you’re interested in having control of your money, and you don’t want to keep it in the mutual funds or the stock market, then it’s just asking the administrator of your 401k if you have an in-service rollover option,

Pancham: Alright. So to summarize this on who can really open our benefit from are the people who are in their jobs, but they have left their previous employer, they can roll over that plan, all that money into QRP or any of the business owners where they’re making that money to their business, and third, people who are in their W-2 jobs, but they’re doing some side business or side income, they can put that money into this and the limit is about 50,000. Is that correct?

Damion: That’s exactly right.

Pancham: Alright, sounds good. So how can they use that money? What are the restrictions on this, if there is any?  

Damion: Well, what’s funny is the IRS says here are the things you can’t do. It doesn’t say here’s what you can do. It says you’re not allowed to buy rugs, or collectible cars, but you can certainly go buy real estate other than maybe a vacation rental that you’re going to use for yourself, but you can really I mean, people buy coffee plantations in Central America, they buy rental houses, syndications, where you’re a part of an investor group maybe buys an apartment, you can buy precious metals, you can buy gold and silver, and physically take possession of it, which is pretty awesome. It’s something you’re not allowed to do if you use an IRA. So you can really do almost anything you can come up with. Again, the IRS just says you can’t do these things, and there are some limitations on who you can do it with. So like, you can’t invest with your kids or your parents, but if you have a friend or a cousin, those are all totally fine. It’s pretty small in terms of the restrictions. Most anything you can come up with and dream up, you can pretty much do.

Pancham: I see. So you mentioned something very, very interesting that you can buy gold and silver and also take possession of it. Is that allowed?

Damion: It is. It’s allowed with eQRP. It’s not allowed with an IRA, and a lot of times people get into trouble with IRAs, because somebody that’s trying to sell them gold or silver tells them, Oh, yes, you can take possession. Well, it’s actually prohibited by the IRS code, and with the eQRP. Since you’re in charge of your plan, you’re allowed to decide where the actual assets are held, and so you can hold those at home as long as you’re being a good fiduciary, which means you’re protecting the assets. So it’s kind of a powerful thing, to where you can buy gold with pre-tax money, and then you get to keep it and hold it yourself. 

Pancham: I see. That’s actually something very, very powerful. So this is a very good segue into my next question, we had another show, where we discussed the Self-Directed IRA and the CheckBook IRA. Can you explain in detail, like what’s the difference between eQRP and the Self-Directed IRA?

Damion: Yeah, there are a huge number of huge differences. Big one is with an IRA, Self-Directed IRA, there’s still a custodian, and you still have somebody that can restrict or make it very painful to actually invest. They’re also going to charge you fees for everything you’re doing. And the the model for an IRA is that the custodian has a whole bunch of people’s money, and they charge you a percentage of it. Their goal is to charge $1,000 to $4,000 per year, that’s the average, and so they make money by keeping money trapped. Sounds a lot like Wall Street to me, your money’s there, and they charge you fees to for it to be there. So that’s a big difference with the eQRP. Since you’re the trustee, which is also basically a custodian, you’re not going to charge yourself.

Pancham: Right.

Damion: Not going to delay your investments. So if you want to go invest, you just you go invest, and it’s a lot faster.  

Pancham: Right. So we had discussed even Self-Directed IRA with the CheckBook control. How is it different from that? So I understand with the custodian, right, there’s a huge difference.

Damion: One of the problems is that a lot of people are taking advantage of that situation, and they feel like custodians, since there is a custodian, they can do whatever they want in their LLC. The problem is the IRS is starting to look at people that are doing CheckBook LLC for their IRAs, and they’re starting to scrutinize those. It’s very different than when you have control with an eQRP, because as the trustee, you actually have a responsibility to be the fiduciary, meaning you have to follow the rules, because there’s nobody that governing it, and so the IRS is actually focusing on the IRAs a pretty intensely, that’s a big, big difference, and they are going to disqualify a lot of these and they already have. So that’s a big problem.  

Pancham: So you’re saying that IRS does not allow with Self-Directed IRA, CheckBook control to be your own custodian?

Damion: No, but you absolutely can be a custodian for your own stuff, you have to have a custodian involved and so that people aren’t going to set up their own Trust Company to be a custodian. If you wanted an IRA, you’re going to have a third party custodian, and that is a huge difference, you have to have the custodian there. Whereas the eQRP, you’re able to have that role. So it’s a very big difference with flexibility and speed and all the fees friction.  

Pancham: I see. So how would you compare this to Solo 401k with the CheckBook control?

Damion: The solo 401k’s are…they follow the same guidelines as the eQRP, the difference is they’re basically the same thing, and a lot of people set them up and they do a decent job of giving you control but they don’t really protect you for liability. The way that eQRP does. People don’t realize that the 401k code which was set up under a risk back in the early 70s is really, really strong for protections. If you have a group plans if you have a group 401k, but that same a risk code does not protect individual plans in the same way. So you’re really exposed, if you ever get sued, a judge could do could look at your assets and say, you know, I’m going to give this to the person that you hurt, and that’s a big problem. That’s a big difference. Solo 401k’s don’t have the protection.

Pancham: I see. So eQRP, how does that have that protection, because you can set up something in the trust documents?

Damion: Yeah, it’s every one of them is written differently, and so we write ours so that the attorneys that set it up provided the liability protection inside of it. So it is part of what makes it different and unique, and so it’s really a function of how things are written. Every one of them is written different. Every company that sets up any retirement plan builds and writes their trust differently.

Pancham: I see. So other than this liability component, most, you would say QRP is very similar to solo 401k? 

Damion: Yeah, same rules, same amount of money, you can put in same amount of control, and so they are very similar, but what I would say is that if you don’t care about liability, then you probably should just donate your money to, you know, a charity or the government right now, because we are more likely to be sued than even to get sick anymore. It’s unfortunate.

Pancham: Right. So solo 401k cannot be set up, even if it is done through an attorney to protect against liability, because it’s just the way it is. Is that right?

Damion: Well, yeah, the solo 401k is having a certain amount of liability, but the problem is they’re still exposed just the way that they’re set up. Because the risk doesn’t cover them…like group plans. So yeah, there is an exposure there that most people don’t even realize is there.

Pancham: I see. So let’s move on to the next question then. So people who have, for whatever reason have set up ST IRA or solo 401k, and they want to move to QRP, can that be done easily, or what’s the process there?

Damion: Yeah, you can move and transfer and do rollovers amongst these different plans pretty easily. There are a few restrictions, like you can’t move a Roth IRA into an eQRP, but almost anything else you can transfer. So if you have…most common thing is you have a Self-Directed IRA, and you want to transfer it over to eQRP, that’s tax-free, penalty-free, and very simple to do, even if it’s already invested. A lot of people have EQ, they have IRAs, and they’re investing in real estate, and they’ll move them over. And mostly they move them over to an eQRP, because the Self-Directed IRA is subject is something called UDFI. This thing, basically, if you have any type of investment that has debt, like maybe an apartment, then there’s a mortgage, then you get taxed inside of your plan, which is a huge problem, and people don’t realize that’s coming until it’s too late, and the good thing is you can convert, you can roll over your Self-Directed IRA into an eQRP, and now you’re exempt from that tax. And that’s like a 35% tax. So it’s a huge problem.

Pancham: So can you explain that a little bit to my audience? So UDFI stands for…what does that mean? And…

Damion: Yeah, UDFI is Unrelated Debt-Financed Income. So basically, if let’s say you had a property, and there was it was $100,000, and your IRA put $30,000 towards purchasing it, and there was $70,000 in debt…that means 70% of the property was financed, and so when the property sells, and there’s a bunch of profit, let’s say that property sells for $300,000. There’s $200,000 in profit, then 70% of that profit is subject to this tax. So $140,000 of that profit is going to be subject to this tax, and you’re going to lose about a third of it. So it’s going to be about a $50,000 bill, that’s going to be paid because you have it in the wrong vehicle, and that’s the IRA.

Pancham: I see, and in eQRP, that’s not there.

Damion: It’s not there. It’s exempt, and so the good news is you can transfer those assets from an IRA into an eQRP, it’s a rollover, and now all of a sudden, you’re not subject that tax. Huge improvement.

Pancham: Yeah, that’s a massive improvement. How about solo 401k? Same thing?

Damion: Yeah, you can move those over, whether or not you need to. You’re not subject to the UDFI. So you’re already exempt. It’s really back to the liability question, and the control question. If you may have what you need there in terms of just being exempt and being in control. It’s just again, back to the liability.

Pancham: I see. Alright, that’s cool, and so how long does it take? Let’s say, you know, I’m an employee, or I’m a business owner, and I want to open a QRP plan, right? How long does it take for it to open it? And, what’s the process like?

Damion: Well, opening it is usually a function of what we do, and it takes about 10 minutes for an interview process to gather the information, and then the billing process is typically three days. It depends on the time of the year, it gets very, very crazy at the end of the year, because everybody’s trying to get their stuff set up before December 31.

Pancham: Right.

Damion: One thing to note is that setting up a plan, you don’t actually have to fund the plan until you file your taxes. So for example, if you set up a plan, November 15th, and it would be good for that year, you don’t actually have to put the money into the plan until April or October of the following year, for this year. But if you look at your taxes, and you say, wait, it’s April, and I want to set up a plan, you can’t set it up for the previous year. So there are some timing issues, in terms of when people set things up. So when you’re thinking about that, it’s important to have a conversation with an expert and say, okay, here’s what I’m thinking and make sure that you don’t miss a deadline, because that can be fatal.

Pancham: That’s a pretty amazing benefit. So what you’re saying is that if I understand it correctly, if I were to set up QRP by November 15, then I can decide on April 10, that I will put down $50,000 into QRP for the last year and not get taxed on that money.

Damion: Exactly. You got the flexibility to wait until you actually put the money in, but you get to use it for the previous tax year.

Pancham: Wow. That’s a pretty amazing benefit. 

Damion: Yeah, and it’s good to know that well in advance, because a lot of times people find out and then they say oh, well, I want to do this and then they’re there four months or 10 months too late.

Pancham: Right, so is there a Roth component to a QRP or its only non-Roth?

Damion: Yeah, you actually asked about the differences between the IRA and Self-Directed IRA and the eQRP, and one of the big ones is that the Roth is available for everybody, even if you are a high-income earner. Like I know a lot of the listeners are making $200,000-$300,000, and they would not be eligible to do a Roth, and even if they could, they do a backdoor Roth, and it might be just a few thousand dollars. So with an eQRP, all of your money can end up being Roth and it doesn’t matter what income level you’re at, you can have all of your contributions, and if you’re rolling money over, you can convert it all to Roth once it’s inside the plan, so really awesome opportunity to opt out of the tax, tax system forever once you convert to a Roth.

Pancham: So at the time of conversion from my traditional 401k into a Roth eQRP, I would have to pay one-time tax, right?

Damion: Yeah, it’s added to your income. So it would be…you pay the tax now then you never pay it again.

Pancham: Right. Okay. So going back to how long does it take? You said three days, right?

Damion: Takes three days, and then it usually takes about 7 to 10 days to have whoever has your money, transfer the funds over and do the rollover. So that’s usually…it’s about two weeks to go from start to checkbook with your money in it.

Pancham: I see, and how much is the cost, typical cost average costs to open this?

Damion: So it varies depending on whether it’s an individual, whether they have employees, there are a lot of variables inside of these things so they kind of vary. I mean, in the marketplace, whether it’s us or other people, it varies from, say, $1500 up, I’ve seen them at $8000 or $9000. I’ve seen attorneys that will charge $15,000 to $20,000.

Pancham: Wow.

Damion: It’s kind of all over the place. The most important thing is to figure out who you’re working with, and then make sure to get fit. Because if you think about the difference between say $1500 and $3000; $1500 more is not really going to be a big deal. It’s sometimes people think, Oh, I’m saving 1500 it’s the same thing. That’s true unless you need the team and investing is a team sport. So what you’re really doing is you’re picking the right team, and the right teams aren’t the cheapest teams. If you want the cheapest team, you’re going to get what you pay for.

Pancham: You’re absolutely right. That’s one of the lessons I’ve learned the hard way. So, okay. All right. So the answer to this is really that it depends on the situation. So for you, you cannot like if one individual versus individual two, it would be different or same? 

Damion: It yeah, it depends on the situation, whether we’re talking about individuals or people with employees or multiple businesses or control groups. This is why there’s not a one size fit all, and I, you know, quite frankly, there are some people that this is a terrible idea for, and Tom Wheelwright and I have had this conversation, and so part of the conversation I would have with you. If we were doing a strategy session, we would want to make sure it’s a good fit. There are plenty of people I talked to, and I say this is a bad idea, and Tom and I have talked about that a lot. He totally agrees that there are times where this is a very bad idea. For example, if you’re going to go buy a rental house that you’re going to keep for 30 years, you would not want to buy that inside of your retirement account, any type of retirement account, because you lose all the benefits of a long term cash flowing, depreciating property. So it’s really a question of what you wanting to do. First off, you have to decide if this even makes sense, and then it’s really how you’re going to use it.

Pancham: Right, for the listeners benefit. You know, what Damion just said that you don’t want to put a tax-sheltered income from one vehicle, which is already tax-sheltered…the income from that vehicle into another vehicle, which is also tax-sheltered, right? So you kind of lose the benefit of the previous tax shelter, because now you’ve put it into the second tax shelter.

Damion: Yeah, and this is part of the strategy where have a team and unfortunately, a lot of us, especially when we’re pretty smart, and we know, we just have a brain that we think we’re smart people, we tend to do too many things ourselves instead of having a team, and part of the value in working with us and people like Tom and the experts is that you work through the process of making a good decision with all the factors considered. Not just buying something, because that’s the one thing somebody has to sell. And unfortunately, I see a lot of people buying investment vehicles, and it’s, they’re not the person selling, it isn’t really looking at the whole picture. They’re just trying to figure out how to get the money out of that person’s wallet, and I just disagree with that strategy.

Pancham: Right. So I guess my last question on this before we move on to the next round is, can you pay for this through your retirement account, or does it have to come out of your after-tax money?  

Damion: No, in fact, you would, you would pay for this through your money. So typically, people will do the rollover, and then they pay for it out of those funds or they contribute, and then there’s their plan will pay because it’s a plan expense, so the plan should pay for it. And that’s great because of its pre-tax money. So it’s, that’s much better. It’s kind of like having an immediate write-off because its money, you haven’t paid taxes on yet.

Pancham: Right. So that’s different. Another difference, I believe, from solo 401k, because I opened a solo 401k, and I had to pay after tax money to open that.

Damion: Yeah, that’s another difference. There’s really not a good reason to have an IRA if you unless, like, if you inherit an IRA, you’re sort of stuck. And if you have a Roth IRA, it’s a little bit stuck, but really, this is a superior retirement vehicle for a lot of reasons, including what you just said.

Pancham: Right, right, right. Cool. Thanks so much, Damion, for all this info and anything else you would like to add before we go to the next section of our show?

Damion: Well, I mean, one of the things that are good for everybody is to not get totally lost with Google. I think Google, and it can be helpful, but in the retirement space, I’ve seen so many people writing stuff, and I just read and I laugh, and I say, that’s literally the opposite of what the code says. When I wrote the QRP book, when you read the book, you’ll see that there are tons of footnotes on the IRS code, because it’s, it’s well documented, and when, when my tax attorney and I put the book together, it was based on facts, not opinion or conjecture. So you can actually get into a lot of trouble with Google, because you’ll find all sorts of contradictory information, and I would encourage you, when you’re looking into this stuff, start off with the facts…the facts in the QRP book are going to really give you a basis that’s based on reality, and not somebody’s opinion.

Pancham: I could not agree with that more, you know. I am pretty big into the whole life insurance policy using that as a banking system, and, you know, on Google, you would find so varied advice on this, and I tell people that advice is actually for people who are making less than hundred thousand a year but if you’re making a quite high salaries, you can really use that as vehicle for yourself, and on Google, you will not find people like those giving you advice.

Damion: No, on Google, you’ll find whatever you’re looking for, and you’ll find a lot of chaos. It’s unfortunate. This is again; we’re going back to the whole idea of having a team and not just people that are selling things. Because I mean, if I’m just trying to sell something, and I’m as hammer salesperson, everything is going to be a nail to me. So it’s really finding people that can be part of your strategic team and not just the person trying to sell their thing to you.

Pancham: Absolutely right. So great. Thank you so much for sharing your wisdom over there. Let’s move to the next round, which we call “Taking the Leap” round. I asked these four questions to every guest on my show. My first question is when was the first time you invested outside of Wall Street? 

Damion: So when I went to college, the first time, I invested in an in a kind of a turnkey $500 to-go-sell college-scholarships and coupons for the grocery store. That was the first time I invested in something. 

Pancham: Wow.

Damion: And yeah, it was a great way to spend $500 and have a big pile of junk. So that didn’t really turn out well, and after that, it was really the real estate investing. When I started buying, I bought my first house with my visa. So that was pretty unconventional.

Pancham: Wow, when was that? 

Damion: That was New Year’s Eve, 1999. So barely started in the 90s. It was the very beginning.

Pancham: Oh, nice, nice. So what fears did you have to overcome when you first invested outside of Wall Street?

Damion: Well, then I didn’t know anything. I mean, when I was first starting, I dropped out of college and I read Rich Dad Poor Dad, and I think I read Ron LeGrand’s book, “Fast cash with quick turn real estate”, and I didn’t really know much, and my fear of not knowing much, there was a little bit of a fear, but it’s the value in doing things when you’re 22 years old is you don’t realize how little you know.

Pancham: Ignorance is bliss.

Damion: iIts bliss, and you take action. You think you can build the Great Wall of China in a week and so start your shovel and you say I can do this problem; it will take me 15 minutes, and so it was nice to be able to go out there, I did have a little concerned and it was because I didn’t have any formal education and I really didn’t have any money. So there was that there was definitely a fear, and I hear that a lot. I don’t really know anything, and I don’t have a lot of money, where I have no money, and I say if you have the commitment, and you have the willingness to do the work, which is like a four letter word to people think it’s a bad thing, then there’s nothing that can stop you. Only you then the ideas and the criticism that you decide is going to be yours. That’s what will stop you.

Pancham: Exactly. All right. So, can you share with us one investment that did not go as expected? I know you’ve done a lot of them. So which one would you say that stands out? Or you know that you would like to share.

Damion: You know, I have to give you two. Because my core confidence is in real estate investing. I mean, I know what I’ve done hundreds of deals, maybe 100 million dollars, or more. The two investments that I screwed up and this is common when we go outside of our focus. One was Car Company, it was like a high-end Lamborghini Ferrari Car Company, and I was a member. So I got to drive their cars, and they were raising additional money, and I said, Oh, I love this company so much. I want to be an investor. So that was a $40,000 experience that I lost when the company went bankrupt, and the other one is I thought there was a restaurant that wanted to help expand, and I loved their muffins. They’re the best muffins I’ve ever had, and so I got involved, and I put $100,000 into this, this expansion of a new location, and my timing could not have been worse. We started building in the summer of 2008, and everybody knows what happened in the fall of 2008.

Pancham: Oh my god. Yeah.

Damion: Yeah bye, bye muffins. Bye, bye $100,000.

Pancham: Oh, my God. So you lost everything over there.

Damion: Yeah, I mean, I don’t even know if I kept the recipe to the muffins. I wish I would at least kept that. You know, I can make muffins again. But yeah. The moral of the story is, don’t get emotional about your investments, make sure that the numbers work, and you have an execution intelligence baked into the team not baked in the oven and the muffins.  

Pancham: Yeah. And the exit plan.

Damion: Good point. Yeah.

Pancham: Alright, so my final question, what is one piece of advice would you give to people, who are thinking of investing in the Main Street that is outside of Wall Street?

Damion: The reason that you’re going to do that, my advice is that you’re going to be able to control things. If you want to be on a roller coaster, then you’re never going to have control. That’s called Wall Street. It’s called the stock market. The advice when you’re doing Main Street is to spend time with like-minded people, because the masses are still doing Wall Street, and so if you tell people, I’m going to go do real estate, or I’m going to do life insurance, or I’m going to do banking on yourself, if your whatever you’re doing, that’s not Wall Street, you’re going to have people telling you, you’re crazy, and so my advice is to go to great events like you and I met at.

Pancham: Yeah.

Damion: Go to those places and spend time with people that are like you, and it’ll help reinforce and support you so that you’re not torn down, but you’re actually lifted up by people that are supporting your ideas.

Pancham: Absolutely. Such a great advice. Thank you so much for sharing his wisdom. So Damion, how can the listeners reach you?

Damion: You know what the best place to go is thegoldcollarrinvestor.com/eQRP, and what you’ll find is a way to get a copy of the book that I wrote, so go there and I’ll mail one out to you. Because if you go and do that, you help me help you break your shackles, and my mission is to free a million people from financial bondage. So go to the site. I mean, I’m glad you set that up for people for everybody listening to get the copy of the book there. So again, its thegoldcollarinvestor.com/eQRP, and you can get copyright there.

Pancham: Thanks, Damion. I’ll put that in the show notes as well so that the listeners can see it there. Thank you for your time today.

Damion: All right, thank you.

Pancham: If you want to know the top six reasons why you should consider diversifying outside of Wall Street, then you are in the right place. I have written a free report for you. It goes into not just a top six reasons why investing in stocks 401k is may not be the sound strategy. But also what are the alternatives. Get your free report today on thegoldcollarinvestor.com/download, I repeat thegoldcollarinvestor.com/download. So you guys can see why this account is so powerful. If you’re thinking of investing using your retirement accounts, this is the account that you should look into. You can use that money to invest in passive investments. It’s really a great way to grow your wealth. So if you are interested, I would highly recommend downloading the book and get yourself educated first. You can also get in touch with Damion’s team. It doesn’t cost you anything to talk to them, and at least have all the knowledge when you’re ready. You can get going. Thanks for listening. If you have questions shins, email me at p@thegoldcollarinvestor.com that’s p as in Paul @thegoldcollarinvestor.com. This is Pancham I’m signing off. Until next time, take care.

Thank you for listening to the gold color investor podcast. If you love what you’ve heard and you want more of Pancham Gupta visit us at www.thegoldcollarinvestor.com and follow us on Facebook at the gold color investor. The information on this podcast our opinions as always, please consult your own financial team before investing.

Episode 12 – Why an eQRP is the Best Option for Investing Your Retirement Money

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