- K-A-S-H, KASH, is more important than money
and generates C-A-S-H, cash.
In this educational episode,
I'm going to address why you should pass on more K-A-S-H
than C-A-S-H to your heirs.
Get ready. This is going to blow you away.
(upbeat music)
So I'm Doug Andrew,
and I've been helping thousands of people
optimize their assets, minimize taxes,
and empower what I call their authentic wealth
for nearly five decades.
And I've been very blessed in my career
to have met some very, very successful people,
many multimillionaires and several billionaires.
And it's interesting because they come
and oftentimes their life is a little bit out of balance
maybe because they've been spending a lot of their health
accumulating their wealth,
and later in life they're gonna spend all their wealth
trying to regain their health
or maybe they accumulated their financial wealth
at the expense of relationships
with their spouse, their kids, their grandkids,
or their God or whatever their belief is of a higher power.
And they're always going, "Doug, what was all this for?
I'm not gonna take any of this money with me
at the end of the day."
And so I agree with them, and I go,
"Yeah, what we need to do is maybe rethink your thinking
and let's make sure you pass down K-A-S-H,
even more than C-A-S-H to your children and grandchildren
or the charities that you are interested in."
And they go, "What's K-A-S-H?"
Okay, so let's go through
and make sure you understand where I'm coming from
and I'm gonna use a little golf metaphor
and if you're not a golfer, like I'm not,
you'll still understand this,
but watch what I'm talking about here.
If you were gonna be playing
in a golf tournament, let's say,
and you had the choice
of using a professional golfer like Phil Mickelson's swing
or you could use his clubs, what would you choose?
Well, I'd rather have his swing, not the clubs.
See, I've noticed as a financial strategist
that most financial advisors
seem to focus on the clubs or the commodity
by this mutual fund, or this stock, or bond,
or gold, or silver.
It's not in the commodity, folks,
it's in the strategy, it's in the swing.
I've noticed that most estate planning attorneys
seem to focus on dividing up the golf clubs
and the trophies, so to speak,
among your kids and grandkids when you die.
Ha, I'd rather leave behind how to fish
to my kids and grandkids
than dumping a bunch of fish in their lap.
I want them to be self-reliant to never be unemployed
because unemployment is a mental condition,
not a physical condition, okay?
So that's why I approach things from three dimensions.
There are three dimensions of what I call authentic wealth
because when we say the word assets,
most people think of, you know, their house,
or their real estate or their cash or stocks or bonds.
But when you think about it, those are just things,
those are just material possessions.
So I put these under the financial assets,
but whenever I ask people,
what are the most important assets that you value,
that you cherish, that you possessed on this earth,
they know I'm not talking about money.
They usually say family, relationships, health,
our beliefs, our values,
yeah, these kinds of assets involve people.
We call these human assets.
They are our core assets.
I put these under the foundational assets
for abundant living.
They would also include such things as your heritage,
your talents, unique abilities,
charitable foundations and so forth.
Now, there's a third dimension of authentic wealth
that involves the wisdom that we gain throughout our life,
and that's our intellectual assets.
Wisdom is a product of knowledge times what?
Experiences.
Just the good ones?
Have you learned more from your bad experiences like I have?
It would also include your formal education, reputation,
methods, systems, traditions, alliances, ideas, and skills.
So these are the three dimensions of authentic wealth.
It's like a three-legged stool,
but whenever I ask anybody,
if you had to let go of one of those three dimensions,
one of those three categories of assets:
financial, foundational, intellectual,
but you could keep the other two,
but you had to let one go and start all over
accumulating that one,
but you could keep the other two
and transfer them into future generations,
but you had the bankrupt
or let go of one of those three categories
and start all over,
which one would you let go of?
Now, abundant-minded people immediately say the money.
Yeah, why would you let go of the money?
Because you can rebuild that one using the other two,
the intellectual and foundational.
In fact, most religions on planet Earth
believe we come to this Earth possessing these assets
to one degree or another.
If you believe in a life after this one, like I do,
these are the ones you return to your maker and report on.
Have you ever figured out how to take the money
with you when you die?
There's no luggage rack on hearses, as the song says.
So that's why at 3 Dimensional Wealth,
we focus on all three dimensions.
I take the wobble out of people's life
because sometimes they're just focused
on money, money, money
and they're bankrupt in the other two areas
and at the end of the day, they regret it.
Some bodybuilders are focused on only their body
and they're bankrupt in the other two areas
and once they've won their medals, three weeks later,
they're ready to take their life
because their purpose is done.
Folks, this is where I compare it
in a book I want to gift you.
So stay with me to the end of this episode.
I'm gonna gift you this 200-page book.
It's called "Entitlement Abolition".
And so in here I talk about this concept
and I compare the Vanderbilt family
with the Rothschild family.
Now, I don't endorse these families by any means,
but they will illustrate my point.
Cornelius Vanderbilt was like the Bill Gates of his time
or the Elon Musk, okay?
He was the richest man on earth when he died in 1877.
He built his wealth with steamships, railroads,
the transportation industry,
but he wasn't very philanthropic.
He only left behind less than 1%
of $105 million fortune,
a million bucks to Central University,
which became Vanderbilt University.
Do you know it took 96 years until 1972
before 120 of his descendants gathered together
at Vanderbilt University for their first family reunion
and there was not a millionaire left in the bunch.
It was all gone.
Shirt sleeves to shirt sleeves in three generations.
They were rolling up their shirt sleeves.
The fourth generation is like, "What?
We're now one of them? We have to work?"
Yeah, pretty sad.
Now it's just not unique to them.
In Asia, it's rice paddy to rice paddy
in three generations.
In Europe, it's clogs to clogs in three generations.
This is a universal problem.
If you just dump it in your posterity's lap,
it ruins probably about half of them,
and they get this entitlement mindset,
"When do I get my share?"
Okay, so folks, this is William K. Vanderbilt, the grandson.
He said, "It has left me with nothing to hope for,
nothing definite to seek or strive for.
Inherited wealth has been a real handicap to happiness."
Whoa!
Now, see, I contrast that mindset
with Mayer Amschel Rothschild, who died in 1812.
Now, I don't endorse the Rothschild's family
but he built a banking dynasty in Europe.
They had five sons
that they assigned each to European capitals.
They would communicate back and forth
with homing pigeons when to buy and when to sell.
The point is this, when he died,
he did not leave behind an inheritance
or some entitlement to his family.
He left behind a system, a repository.
I call it a family bank.
Now it's not a chartered bank like down the street,
it's a conceptual bank, a repository
where he captured the knowledge,
attitude, skills, and habits.
He left behind how to fish
instead of just dumping a bunch of money in their lap.
And there were three basic rules in this family bank, okay?
They loaned their heirs money
and the loans had to be repaid.
So if you needed help with the college education,
you had to apply, you had to get good grades.
If you got approved, like a student loan,
the family bank may match or loan you
but you had to pay the loan back
when you graduated from college and started earning money.
It wasn't just a handout, okay?
It was there to give them a hand up.
And so if you wanted to go into business,
you could go in with a family bank and a joint venture
and later on you could buy out the family bank
for then the value.
But there wasn't any special favor, so to speak.
They required skin in the game, okay?
When I went to college, I had different scholarships
but I worked at Kentucky Fried Chicken 30 hours a week
in order to get through college.
My wife worked at a bookstore,
and it's because our parents
couldn't afford to pay for our college
but I didn't expect them to.
A lot of our friends,
their parents just shelled it out,
and a lot of them just goofed off.
We had way better study habits than a lot of our friends.
And so my wife and I,
we didn't want our six children
to ever think that we would just pay for their college.
We gave them equal opportunities,
which I talk about on this channel,
meaning that if they got a scholarship,
we might match it, we might loan them money,
and we provided ways where they could pay it back
with money or shampoo carpets or mow lawns or whatever.
They had to have skin in the game
and they actually really appreciated taking ownership
in their college education.
The second rule is the knowledge
and experiences those heirs gained
that had to be shared with other family members,
horizontally, not just vertically.
This wasn't parents to kids, to grandkids secrets.
This is aunts, uncles, nieces, nephews
because sharing is having more.
If you did not share both good and bad experiences
so future generations could learn,
then you were out of the loop, okay?
The third rule is the family gathered
at least once a year, like a family reunion,
in order to reaffirm its virtues and intentions
and what charities you're gonna give to,
what you believe in and what have you.
If you don't stand for something,
you're gonna fall for anything.
If you didn't do that, if you just sort of left the family
and you were out of the loop, okay,
guess what happened to the Rothschild's wealth,
is the point.
It grew and flourish,
whereas the Vanderbilt fortune dissipated and disappeared.
That's the difference,
and that's why I share the stories in the book.
So when we talk about these three dimensions,
I talk about like it's a great big A,
which stands for abundance.
And so this is the three-legged stool.
I talked about it here a moment ago.
You have the financial dimension,
you have the foundational assets,
you have the intellectual assets.
And so I'm very passionate
about helping people like you stay balanced
so that these assets here can stay in balance and harmony.
And what I just talked about
is how you can have like a perpetual KASH fund.
You notice KASH is K-A-S-H.
What does it mean?
This is like the family bank
where you can make deposits and withdrawals
of not just money, but also your wisdom, okay?
Your experiences here.
So this KASH is more important
than just leaving behind a bunch of money or C-A-S-H.
This is the swing.
Instead of dumping
a bunch of clubs in their lap and trophies,
that's not gonna do 'em any good.
I wanna leave behind how to fish.
And so your knowledge, attitude, skills, and habits
spells as one of my favorite acronyms is KASH.
I think it's more important you pass this down.
In fact, if I only pass down that, they will have money,
but if you just dump money in their lap,
you'll probably ruin half of them because this is the swing.
If you just drop money in their lap,
that leave me behind the clubs.
Does that make sense?
So this is where in my books,
and I want to gift you a copy of a book
that talks about this.
If you focus your family around this concept
and you are helping them understand how to be wealthy,
healthy and wise in all three dimensions,
how to live, love, learn, give, and earn, okay,
when you do that, watch what happens to their mindsets.
They won't be sitting around with a handout,
"Hey, can I have what you pay for?
When do I get my share?"
That you can abolish the entitlement mindset.
So that's why we call this channel 3 Dimensional Wealth.
Many people come to this channel
to learn about the financial
sort of asset optimization strategies,
but really these two bring it all into balance and harmony.
So that's why I'm very passionate
about what I call the legacy dimensions
capturing the intellectual and foundational assets
and making sure you pass down the K-A-S-H,
knowledge, attitude, skills, and habits
which is more important than the C-A-S-H.
That is why we believe it's more important
that values are understood before the assets are valued.
Does that make sense?
If this is resonating with you and you wanna learn more,
I would love to give you a copy of this book.
Here's how you can claim your free copy.
It's 200 pages.
It's called "Entitlement Abolition".
How to lead your family from me, me, me to we.
Together we're better, okay?
An abundance mindset
and abolish the entitlement mentality.
You simply go to entitlementabolitionbook.com
and you contribute a nominal amount
towards the shipping and handling.
I'll cover the rest of that cost, and I'll pay for the book.
I'll fire out a copy to you.
They're 20 bucks on Amazon,
but I'm gonna gift you a copy.
If you like to listen and learn or watch and learn,
there's audio and video options there too.
And check out even a master class on this.
We teach educational webinars,
but this is about you and your brighter future,
and I hope you will enjoy.
(gentle upbeat music)