The Debt Millionaire

by George Antone

  The Debt Millionaire

  By George Antone

  THE DEBT MILLIONAIRE

  By George Antone

  www.TheDebtMilionaire.com

  FIRST EDITION

  © 2016 by George Antone. Al rights reserved.

  No part of this book may be reproduced or transmitted in any form or by any electronic or mechanical means, including information storage and retrieval systems, without permission in writing from the publisher, except by a reviewer who may quote brief passages in a review.

  Printed in the United States of America

  Book design by The 750 Shop

  Cover by Alejandro Espinosa

  Events in the book have been fictionalized for educational content and impact.

  ISBN-10:0982704534

  ISBN-13:978-0-9827045-3-0

  This publication is designed to provide information with regard to the subject matter covered. It is sold with the understanding that the publisher and author are not engaged in rendering investment, real estate, legal, accounting, tax, or other professional services and that the publisher and author are not offering such advice in this publication. If real estate, legal, or other expert assistance is required, the services of a competent, professional person should be sought.

  The publisher and author specificaly disclaim any liability that is incurred from the use or application of the contents of this book.

  This book is dedicated

  to my children

  Emile, Amanda and Christine

  “I Vol U”

  :-)

  Table of Contents

  Acknowledgments

  Tools and Resources

  The Inspiration of This Book

  CHAPTER ONE: Introduction

  CHAPTER TWO: The Wealth Equation

  CHAPTER THREE: The Traditional Method of Investing Doesn’t Work!

  CHAPTER FOUR: Hacking the System

  CHAPTER FIVE: Moving to the Receiving Side of Interest

  CHAPTER SIX: Moving to the Receiving Side of Opportunity Cost!

  CHAPTER SEVEN: Moving to the Receiving Side of Inflation

  CHAPTER EIGHT: Lowering Your Taxes

  CHAPTER NINE: Debt Revisited

  CHAPTER TEN: The Third Secret Side—The Key to Wealth

  CHAPTER ELEVEN: The Last & Most Important Leverage

  CHAPTER TWELVE: The Family Bank

  CHAPTER THIRTEEN: Putting it All Together

  Epilogue

  Appendix: A Few Debt Metrics

  Resources

  Acknowledgments

  Years ago, when I first decided to write books I had no idea that my writing could or

  would change lives. I have seen people change their financial lives and futures because of

  the information I shared with them. For me there is truly no greater joy than knowing

  that I have changed the trajectory of people’s lives, their family’s lives, and then the lives of the people they in turn helped. What a blessing.

  It is for you, the people that will use this information and change your lives that I

  continue to write these books and share my knowledge. Thank you for allowing me to

  share this information with you.

  This book would not have been possible without the help of Swanee Heidberg, Bob

  Leeper, Clark Cordner, Alejandro Espinosa, and everyone at MPactWealth LLC. Thank you

  so much.

  Tools and Resources

  We created a web site loaded with various free resources designed to help illustrate

  many of the concepts you will find in this book.

  The resources on this web site were designed to enhance your learning experience.

  Please visit the website for more information.

  www.TheDebtMillionaireBook.com

  The Inspiration of This Book

  A special person passed away many years ago.

  He had worked very hard to teach me about wealth and success.

  He always said (and showed me) that money was meant to help others in need.

  One of the many lessons he taught me went something like this…

  “Make gravity work for you, not against you. Make the system work for you, not against

  you.”

  These insightful words would eventually change everything I knew about “wealth.”

  This book is the result of that one lesson… as you will discover.

  This book is for you from him.

  His name was Emile.

  He was my dad.

  Section One

  Introduction

  Chapter One

  Introduction

  What if everything you know about investing is wrong?

  What if the way you think and approach investing is wrong?

  Why is it that as of 2010, the top 1% of households in the United States owned 35.4%

  of all privately held wealth?

  Is there something you are missing?

  Indeed there is!

  “They” (the top 1%) own a “weapon” that they use to transfer all the wealth from

  most people (probably you too) onto their balance sheets, automatically, while you have

  NO IDEA it’s being done!

  It is not done illegally or with bad intention. It is simply the result of most people being

  ignorant or unaware of this “weapon”.

  Read this entire book.

  Read it twice.

  Welcome to “The Debt Millionaire.”

  It is time you opened your eyes!

  It is time for you to learn about, and start using the same exact “weapon.”

  * * *

  “George, what are you doing?” asked my mentor on the other end of the phone. “Want

  to drag along on a quick trip with me downtown?” He interjected before he allowed me to

  reply; “I’m coming over to pick you up” he chuckled, “be ready in 5. I’m on my way.” “Um,

  okay. Where are we going?” I asked.

  My mentor, a man ten years older than me, had built his fortune in real estate and real

  estate-related investments. For someone who was constantly mentioned in the news for

  his philanthropic work, he was very approachable and down to earth. He had his own

  financial challenges along the way with two bankruptcies and a hard upbringing.

  However, because of his tenacity, he went on to become one of the wealthiest people in

  San Jose, California.

  “George, we are going to meet a friend of mine and I believe you will like this guy. I

  have learned a lot from him. Just listen carefully to him and think about everything he

  says. As you know, I’m not easily impressed with people, but you will like him” said my

  mentor again, as we sped down Almaden Expressway towards the freeway. I wasn’t

  hearing much of what he was saying—I was worried for my life—he was driving fast!

  I fastened my seat belt tightly and held on for dear life.

  * * *

  Imagine a “secret” investing method that changes your perspective on building wealth

  forever. Imagine this new method is an “automated” way to build wealth without trying

  hard. This method would not only shed light on why and how the very wealthy build

  wealth, but it would also explain how they “see” things very differently.

  Would you want to know this “secret” investing method?

  This book, in your hands right now, contains the information I learned about what is

  called “The WealthQ Method”, a financial methodology based on something called “The

  Wealth Equation.” Afflu
ent families have used this method for centuries. They figured out

  a way to position themselves to build wealth automatically by simply flipping everything

  you know and believe about investing completely on its head. Historically, the results

  they obtained support using this system. In fact, by the end of this book, you should not

  just know of “The WealthQ Method” and “The Wealth Equation,” but should also

  understand how the method works, and be convinced you cannot and should not build

  wealth any other way.

  You will find yourself saying “wow—this is so true” and “this is so powerful” and then

  sit back in your seat and smile. I know this because I have shared this with people and

  that is exactly their reaction, time and time again.

  Now, I want to share this story and this “secret” with you.

  However, before I do, I want to explain to you my target audience for this book. This

  book is meant to be read by people who understand that wealth building includes the use

  of the right type of debt. If you are the type of person who listens to, agrees with, and

  believes the “gurus” on TV that talk about paying off your mortgages and being

  mortgage-free as being “the way”, then perhaps this is not your “cup of tea.” If you

  recognize that the use of debt CAN HELP you achieve your financial goals faster, but CAN

  ALSO DESTROY you if not used properly, then this book is a MUST read for you.

  This book is not meant to be a “how to” book but rather a book that will help you think

  like the ultra-wealthy. Too many people are so indoctrinated they only want to read and

  follow “how to” books. I believe learning how to think (using your thinking capability) is

  much more important first than just learning the “how to”.

  Here is what I want you to be aware of and what I ask of you before you dive into the

  next section.

  Promise yourself you will read this book all the way through.

  Read it multiple times, if need be, to become comfortable with the Debt Millionaire

  concept.

  I use numbers and math in a few places not to confuse you, but rather to share with you what I discovered along the way, and feel the excitement I experienced.

  Hold on to your hat. This is going to be an exciting journey.

  Everything you think you know about building wealth is about to be challenged.

  * * *

  “Look, the sign says 40 miles per hour” I uttered as I pointed out the window to the

  speed limit sign, while making sure he didn’t see me sweat.

  “George, I’m only going 50 miles per hour, so don’t worry”

  he laughed.

  “It feels like 100 miles per hour” I thought as I leaned over to look at the

  speedometer. He was right he was only going 50 but I was still scared nonetheless.

  Chapter Summary

  · The ultra-wealthy see wealth building in a very different way than everyone else.

  · This book will introduce you to what the ultra-wealthy know and use a method called

  “The WealthQ Method” and it is based on “The Wealth Equation.”

  · You have to have an open mind when reading this book because it will challenge

  many things you believe to be true, no matter how many years of experience you have

  in investing.

  · Read this book more than once.

  Chapter Two

  The Wealth Equation

  We walked into the Il Fornaio restaurant in the Sainte Claire Hotel in downtown San

  Jose. The historic hotel gave a very classic feel to the restaurant.

  As we approached a table, two men stood up to welcome my mentor and me. It was

  clear they were not expecting me, but we still exchanged pleasantries when my mentor

  introduced me. The older gentleman had snow white hair and looked like he was in his

  late 70s. Through his glasses, his brown eyes showed him to be a friendly and caring

  man. He wore a very expensive navy colored suit. Emile was his name. He commanded

  respect. Everyone in the restaurant was aware of him. The younger man, whom I found

  out later was his grandson, was in his early twenties, and wearing a light blue shirt with

  blue jeans. Emile was his name also, just like his grandfather.

  After twenty minutes of “small talk” including ordering our drinks and food, my mentor

  brought up the topic that would change my life forever. This conversation would take

  several hours of this day, but the impact of that conversation would last me a lifetime.

  “Emile, I would like to continue our conversation about the structured products you

  were talking to me about last week. But before we begin could you please explain what

  you shared with me about ‘The Wealth Equation’ and ‘The WealthQ Method’ of investing

  to George first? You and he think alike. George will love the concept, and I’m sure he will

  put it to good use as well. He is a man that makes things happen” said my mentor.

  Emile looked at my mentor and then back at me and asked with a straight face “Are

  you married George?”

  “Yes sir” I replied.

  “Then let me share with you the secret formula for married couples.” he said. Eager to

  learn, I grabbed a pen and opened my pad. “Okay, go for it” I smiled as I took a sip of my

  Arnold Palmer.

  “Love One Another. And if that doesn’t work, then bring the last word to the middle!”

  I paused. I thought about what he had just said. I looked over to my mentor for a

  reaction. All four of us burst out laughing.

  “Okay, I see you have a sense of humor George, so now I guess I can share with you

  the Wealth Equation.” He smiled as he took a sip of his Cabernet Sauvignon.

  “We call it the WealthQ” he said, “and the method of investing tied to this is called The

  WealthQ Method.”

  * * *

  “The Wealth Equation” is the foundation of this book. In this chapter, I will share with

  you a high level overview and give you a basic explanation of the concept. For the rest of

  the book I will focus on and you will learn the details of the concept.

  The Wealth Equation is also referred to as “WealthQ” and I will use these terms

  interchangeably throughout the book.

  In the simplest terms “WealthQ” really boils down to one thing: To build wealth, move

  to the right side of the equation.

  The Right Side of the Equation

  Increasing your net-worth starts with you positioning yourself on the right side of the

  equation. A typical mathematical equation might look like this:

  X + Y = Z

  Assume these variables represent dollar amounts—money. That would mean the sum

  amount of X + Y dollars is the same as Z dollars. Or another way of looking at it—the

  money on the left side of the equation would be equal to the money on the right.

  So if X is $6 and Y is $5, Z would be $11. Our equation would be:

  X + Y = Z

  $6 + $5 = $11

  In the real world, most people are on the left side of the equation—which is considered

  to be the “Paying” side. The right side of the equation is considered the “Receiving” side,

  and therefore must be equal to the left side. In other words, the left side is “paying” the

  right side.

  The table below shows that James and Jill are on the “Paying” side of the equation,

  paying $2,000 and $3,000 respectively. Julia is on the “Receiving” side of
the equation so

  she is receiving the $5,000.

  Table 1: Paying Side versus Receiving Side

  The equation looks like this:

  $2,000 + $3,000 = $5,000

  (James & Jill pay Julia)

  Obviously, we all want to be Julia in the example, but very few of us are.

  In the real world, there are certain major “forces,” and most people are (live) on the

  “Paying” side of these forces, as shown in the table below.

  Table 2: Most People “Live” on the Paying Side of the “Forces”

  The above table shows that most people are on the “Paying” side of inflation, interest,

  taxes and opportunity cost. As inflation rises, it affects them negatively. This table also

  shows that most people are on the paying side of interest, taxes and the biggest force,

  opportunity cost which will be explained in more detail later in the book.

  If most people are on the “Paying” side of the major forces above, then who is on the

  “Receiving” side? The financial institutions and the ultra-wealthy are, as shown in the

  next table.

  Table 3: Who “Lives” on the Right Side of Wealth Equation?

  Yes, this is correct. As inflation goes up it affects the people on the right side

  positively. They increase their wealth automatically. They are also on the receiving side

  of interest, and opportunity cost. The people on the right side cannot be on the receiving

  side of taxes, but they can and do focus on reducing taxes quite a bit.

  So what does one have to do to become rich?

  Simple!

  Switch which side of the equation you’re on. You want to position yourself to be on the

  right side of the equation (the WealthQ). Position yourself on the receiving end of those

  powerful forces. The following table illustrates your ideal goal.

  Table 4: Your Goal is to Move to the Right Side of Wealth Equation

  Obviously, you can’t be on the receiving end of taxes, but you can and should minimize

  how much you pay.

  By simply moving yourself to the right side of the equation, you will start increasing

  your net-worth automatically while being on the same side as the financial institutions

  and the ultra-affluent.