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https://s3.us-central-1.wasabisys.com/40webinars/personal-financial-statement.xlsx

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Links from Today’s Episode

For Public Housing Residents That Deaunna Mentioned at the beginning of the episode.

hud.gov

Special Application Center for HUD

312-353-6236

https://www.hud.gov/program_offices/public_indian_housing/centers/sac/homeownership

https://www.endslaverynow.org/learn/slavery-today/bonded-labor

Bonded labor, also known as debt bondage and peonage, happens when people give themselves into slavery as security against a loan or when they inherit a debt from a relative. It can be made to look like an employment agreement but one where the worker starts with a debt to repay – usually in brutal conditions – only to find that repayment of the loan is impossible. Then, their enslavement becomes permanent.

Show Notes

Introduction

Podcast: Drink, Smoke, Stocks, Crypto Podcast
Host: Antonio
Guests: Kenneth, Otis, Deanna, Grace
Topic: Real estate and stock trading discussions

Beverages Discussion

Antonio's drink:
Starbucks black hazelnut
Butterscotch (like grandma candy)
No vodka because it’s 11:02 a.m. and not on the breakfast menu
Deanna's drink:
Folgers Classic Roast with caramel macchiato creamer
Otis' drink:
Black Crown Smooth and Coke (what he would like to say)
Reality: Sweet tea (day drinking not on the breakfast menu)
Ken's drink:
Water
Last night: Hot toddy
Grace's drink:
Nothing currently, under the weather (cough drops)

Institutional Precision Intraday Trading Advisor

Development update:
Antonio finalized the code for his Institutional Precision Intraday Trading Advisor on October 17th
The tool is private, for invite-only stock students
Link in show notes for those interested in stock class and advisor access
The tool answers all trading-related questions and provides status updates
Antonio's employees:
40 employees, with this trading advisor being one of them
Future plans: Employees that will trade automatically for the users (still in development)
Testing feedback:
Grace has tested the advisor and successfully received answers to her questions
Otis hasn't tested yet but plans to

Question: Should We Create a Business for Our Investments?

Grace’s question:
Should an investment firm be created to align with the five tiers from the credit and business funding class?
How does this align with a holding company and trust?
Should it be a specialty LLC or operational?

Detailed Answer

Otis’ response:
If you create a business for investments, you’d be considered a professional trader.
Requirements: Maintain at least $25,000 in your account at all times to hold this designation.
There's significant paperwork involved.
Benefits: You can write off many expenses related to trading, such as:
Cable subscriptions (if used for market research)
Magazine subscriptions related to investments

Additional Comments

Antonio’s note: He plans to expand on Otis’ answer with additional insights from his experience

Business Setup and Financial Strategy

Software costs:
Software for trading and business can be expensive but offers benefits in the long run.
Time is required to meet the qualifications for professional trading or business setup.
Recommendation: Start personal trading until you reach a minimum of $25,000, ideally $30,000, before considering business formation.
Income allocation:
Push income from trading towards real estate investments once you've built sufficient capital.

Understanding Money Laundering (Three Phases)

Phase One: Acquisition and Infusion

Most risky phase of money laundering.
Example: Acquiring illegal funds and infusing them into legitimate systems (e.g., Al Capone's laundromat).
The initial transaction of receiving the illegal money is the most traceable and where legal protections focus.

Phase Two: Changing Hands

Shift the responsibility of the money from one person to another.
Example: Otis receives $10,000 and is asked to send $600 to a third party (driver) to disperse the money and reduce the risk.
This step is crucial for distancing the original transaction from the illegal source.

Phase Three: Legalizing the Money

Multiple movements and transactions to legitimize the funds.
Example: Splitting money, sending portions to different people, and turning it into legitimate income.
The money eventually comes back as legally clean, with taxes paid and a new transaction trail.

Practical Example: Stock Trading and Income Shifting

Scam example:
Spam emails requesting to transfer money through PayPal or cash a check are forms of money laundering.
Personal example: Antonio couldn’t get a Wells Fargo account due to being scammed as a teenager.
Steps in the laundering process:
Step One: Acquire illegal funds and infuse them into the system (high risk).
Step Two: Shift responsibility by changing hands, moving the money to different accounts or people.
Step Three: Push the money into an ecosystem where it becomes legitimate, legal, and clean.

Capitalism and Money Laundering

Wealth-building analogy:
Every investment strategy is similar to money laundering—legally turning one form of capital into another income-producing asset.
Step One: Acquire stock money and income from trading.
Step Two: Infuse the stock money into real estate or other investments quickly to avoid heavy tax liabilities.
Capitalist perspective:
Taxes on income are seen as a "penalty" on wealth accumulation. The goal is to minimize tax exposure by shifting income to assets like real estate or other investments.

Practical Application to Stock Trading and Investments

Trading taxes:
Stock income is taxable, and the tax liability rests on the individual (e.g., 15%–45% tax rate depending on circumstances).
Action: Move stock money out of accounts immediately after cashing out to avoid heavy taxation and reinvest quickly.
Example with Otis:
Long-term trader can leave funds in stocks as long as needed (still in Phase One).
Upon cashing out, funds should immediately be moved into another asset (Phase Two).

Capitalism and Income Taxes

Antonio's belief:
Earning income through labor and taxable sources is seen as economically disadvantageous.
Trading time for money or earning taxable income at high rates (15%–45%) is compared to being "illegal" within a capitalist framework.
Advice:
Shift money earned from stocks or labor into income-producing assets like real estate to legally minimize tax liabilities and increase wealth.
General statement:
The process of acquiring, shifting, and legitimizing income (through investments like stocks or real estate) is key to financial success and reducing tax exposure.

Tax and Income Strategy

Antonio's stance on taxes:
Advises listeners to stop paying excessive taxes.
Income tax: Antonio often emphasizes the burden of income tax and how it impacts wealth.
Example with stock market income:
Deanna’s stock market earnings are considered income, which is subject to income tax.
The government taxes income heavily because it views it as the primary source of revenue.

Process of Obtaining Income

Personal Income Process:

Ken (hypothetical example): To obtain income, Ken must fill out numerous forms (job applications, IRS forms, etc.).
Details required: Name, social security, address, job history, GPA, dependents, and more data points.

Earning Money Should Be Illegal