Damion Lupo is the author of many books but we are going to talk mostly about his book called The QRP book today. Damion has actually appeared on the show before, where he has talked about how he went from being a multi-millionaire to being broke and building his net worth back up again.
[2:51] What is a QRP?
● Qualified Retirement Plan, broad term for these tax plans
● Most people are familiar with 401ks
● This gives a different option that most people don’t know about
● Damion has created EQRP – it’s different in that it’s a 401k that you can invest yourself
● It’s strange to think about because you are the custodian
[8:9] What are the benefits?
● Match from company and then an IRA
● Over 20 years, you’re not going to save up a ton of money from that
● QRPs allow you to do up to $50k a year.
● You could even get a tax credit- paid out
● Most of the withdrawal rules are the same
[13:30] You explain the 8th world wonder in your book, for anyone grappling with this idea, what advice do you have for them?
● The easiest way to think of it is compound interest- if you don’t pay it off you owe a ton more money next month.
● On the flip side if you are earning it it works the same.
● 72 divided by your interest rate is how long it’ll take for your money to double
● However it’s not just about a fixed return, you need to choose what you want to invest in
[17:54] How do you set up a QRP?
● You need to have business activity
● Giant trust document
● Rollover money
● You typically need a firm to set one up for you
● If you aren’t wanting to do the research then you might want to use someone
Value Link Round
[23:36] What is your saving or retirement plan?
● Damion keeps his money moving
● Money goes in and out and he continues to get paid
● Store money in gold
[24:47] Favorite Quote?
● Embrace the idea of falling