Real Estate Nerds 41: How to Preserve Your Wealth & Keep it to Yourself with Frazer Rice

Real Estate Nerds 41:

Best Deals

"How to Preserve Your Wealth & Keep it to Yourself"

Frazer Rice
Private Wealth Manager
Real Estate Nerds
Episode 41: "Best Deals"

Listen to the Podcast Here:

On today’s episode of The Real Estate Nerds Podcast, our host and attorney Scott Smith is joined by Frazer Rice. The two attorney-investors dive right into a deep conversation about asset protection and management, learning financial responsibility, and the true meaning of wealth. Note that this is an episode in our “Live From FinCon 2018” Series. Don’t forget to check out the Royal Legal YouTube channel for video extras and other great content. Back to the show…

Frazer Rice on Wealth Actually and Steps You Can Take To Keep More of Your Investing Income in Your Hand

Frazer Rice sits down with our host and asset protection attorney, Scott Smith. Together, they chat about Frazer’s latest book and greater goal of helping investors retain more of their income.

[0:45] Frazer is a wealth expert who helps other investors keep as much of their earnings in their own pockets. This includes asset protection, but also tax minimization work. He points out the many ways that the U.S. Government, via taxation, pockets taxpayer dollars through sheer ignorance on the part of the taxpayer.

[2:00] Frazer recently authored Wealth Actually: Intelligent Decision-Making for the 1%. The book is full of wisdom for those changing asset classes or “moving up” in the real estate world.

[2:30] Scott expresses his admiration for the book, relating his own experiences as an asset protection attorney.

[3:15] Frazer points out the need for unique, customized plans: “You could be a doctor with a high litigation risk. You could own a construction company. You could have a high inheritance risk with a drug-addicted sibling. Everyone’s situation is different.” Each of these circumstances requires a specific type of risk management, and that’s where Frazer’s latest work is useful

[5:30] Scott asks what motivated Frazer’s latest book. Frazer immediately points to taxes, and how to mitigate capital gains and minimize tax liability. He also speaks to how to form an adequate estate plan–advice he routinely gives his clients. Failure to form an estate plan can lead to lengthy litigation, forced sales, and plenty of avoidable fees.

Tools Even Children Can Use for Learning Fiscal Responsibility

Frazer shares some of his practical tips for working with young people to set them up for a life of financial responsibility. Since financial literacy is generally overlooked in schools, Frazer has taken the initiative to fill this education gap.

[7: 20] Frazer lists a couple of exercises for teaching children about investing, preparing them for a lifetime of responsibility. They learn early on about losing as well. Siblings present an ideal situation, as they can work together on exercises to determine their strengths and weaknesses.

[10:00] Scott inquires whether these concepts are for children only. Frazer replies that financial literacy is something investors can work on at any age.  Scott asks how Frazer explains headier concepts like taxes, real estate investing, and problem-solving. Frasier replies that his financial literacy tools are modified for age-appropriateness.

[14:00] Scott asks about whether it is worth the effort to train children in their real estate business for seamless transition. Frazer says yes, and that the lessons about wealth are fairly intuitive–and better off taught. He elaborates more on wealth management with some stories from his experiences with clients.

[18:30] On the subject of wealth, Frazer points out that a broad definition can improve your life: “There’s a currency of success that has nothing to do with dollars.” Scott agrees, and points out that people can use real estate for passive income to free up time to pursue the things they really enjoy.

[21:00] Scott asks a bit more about how children learn from early investing options. Frazer believes if the power of compound interest were taught universally, Americans in general would be doing better.

The Takeaway: Focus on Where You Excel & Have a Team to Check Your Blind Spots

Scott and Frazer wrap up with the take-aways points from their discussion. Both investors agree that a strong backing system and network is vital.

[22:40] Scott points out that most investors take mis-steps because of their own blind spots.

[23:00] Frazer confirms, and further elaborates that skill sets are diverse, and that’s okay: “You don’t need to know how to solve every problem..If you’re okay at a couple of things, that’s a good business model.” Some team members may be better with lenders, while others can crunch the numbers on properties and comps easily. Still others may be more equipped for managing contractors and the properties themselves.

Connect with Frazer Rice

Connect with Frasier Rice via Facebook, Twitter, LinkedIn, or his website Realwealth.com. And if you’re itching to add to your reading list, don’t forget to check out his latest book available on Amazon.com and other retailers.

Listener Resources

Thank you for joining us on today’s episode of the Real Estate Nerds Podcast.

For even more free educational resources on real estate investing and the law, check out the Royal Legal Solutions blog. You can also reach our host Scott Smith directly, connect with him on LinkedIn, subscribe to the Royal Legal Solutions YouTube channel, or join our investor community on Facebook.

Don’t forget to subscribe to stay up to date and have the most current episodes of the Real Estate Nerds Podcast directly in your listening library. Every subscription helps us create new, custom content for you. What did you think of today’s episode? What would you like to hear more about in the future? Leave your thoughts and questions in the comments section below, or leave us a review in the iTunes store. We love hearing your feedback, so fire away. Join us again next time for another fascinating conversation and compelling story with experienced investor Trevor Robinson. Thanks for listening and joining us on our journey to become better investors!


Hosted by Scott Smith, Lead Attorney and Founder of Royal Legal Solutions. Schedule your personal consultation now. If you have questions about our content or suggestions for future episodes or guests, reach our podcast team at podcast@royallegalsolutions.com.

About Frazer Rice

Frazer Rice is a leading authority on wealth management. He teaches others to use real estate, asset protection strategies, and tax mitigation tactics to keep more of their hard-earned investment dollars in their pockets.

He is the President of Wealth Actually LLC.  Wealth Actually is a financial services and legal media company.  Today’s reality is that advice companies need to be media companies as well. WA will help businesses and individuals recognize this reality and use it to amplify their presence and increase their business.

On August 7th, 2018, Frazer released his first book through Lioncrest Press.  In Wealth, Actually, Frazer shares his approach to wealth management. Through a combination of philosophical discussion, practical advice, humor, and anecdotes, he shows how prosperous individuals can determine what they want their wealth to do; communicate with loved ones about their fortune; avoid overspending; handle wealth threats; evaluate, grow, and protect investments; and choose the best advisors.  It can be purchased at www.wealthactually.com.

Frazer Rice was a leading private wealth manager for more than fifteen years at one of the nation’s top financial institutions. In March of 2013, Private Asset Management named Frazer as one of the “Rising Stars in Wealth Management and Family Office Services.”

Based out of the bank’s New York City office, Frazer served over 70 individuals, families and charities by protecting (and growing) newly-earned and generational wealth, overseeing estates, planning for the financial futures of children and grandchildren, creating new philanthropic ventures, and resolving a wide range of personal finance matters. He was responsible for more than $11 billion in client assets under management and administration. Frazer also maintains a robust podcast where he interviews the entrepreneurs, experts,  and other influencers.

Frazer is the Treasurer of a Manhattan Co-op and a Corporate Advisory Board Member of a newly formed podcast company and a high-end fashion company that specializes in designing and marketing artist-inspired women’s apparel and accessories.

Frazer’s personal philanthropic commitments have included senior advisory positions with diverse assortment of non-profits.  He is currently the Chairman of Taliesin Nexus, a Los Angeles-based non-profit that connects young filmmakers with industry veterans who support liberty-based themes.

Frazer earned his law degree from Emory University in 2001 and his B.A. from Duke University in 1995. He currently resides in Manhattan, is an avid golfer and greatly enjoys exploring a wide array of intellectual and pop-culture topics. Frazer has authored articles and been quoted in publications including The New York Times, the London Daily Telegraph and the Journal News and also appears as a guest commentator on various Cable TV business networks.

When making business decisions that affect your long-term goals, like what types of investments to make with your retirement dollars and which vehicles to use, it really is best to be aware of all of your options. We frequently talk about the Solo 401(k) and Self-Directed IRA as tools for funding your retirement. But what about life insurance? And what about the stock market? What if we told you there is a tool that allows to to reap some benefits of both? It’s called Indexed Universal Life Insurance–and some investors have found it a useful addition to their retirement plans.

What Is Indexed Universal Life Insurance?

Indexed Universal Life Insurance (IUL) plans are a variety of permanent life insurance plan that features a cash-building element. One primary benefit of these plans is that the policy holder gets some of the gains of being associated with the stock market without all of the risk Wall Street is famous for. This is in no small part because of how these policies are designed. IULs earn in part because they are directly linked to a market index, such as the Dow or the S&P 500.  Any gains remain within the policy, albeit a cap rate will limit how much you can make. However, you are protected during a particularly bad year for your index with an IUL. The worst case scenario with these plans is that you make nothing, but you never actually lose money no matter how poorly your index performs. The protection of your principal is actually derived in part from the same cap rate that limits your gains.

How much money do policyholders stand to make? Historically, returns run between 5-9%. The S&P Index has actually returned at 9-11%, but the upside limit on UILs stems from the account’s cap rate. For this reason, many advisors argue that the UIL can make a wise addition to a retirement or estate plan once more traditional and self-directed accounts are maxed out.

Tax Benefits of Indexed Universal Life Insurance (IUL) Plans

There are three key tax benefits of IULs. First, you may pay into the policy with pre-tax or after-tax funds. Withdrawals from the policy may be made tax-free if you are under 59 1/2. Such withdrawals are regarded as loans, with your death benefit serving as collateral. Any funds paid out to the beneficiary are also tax-free, including normal benefits upon your passing. This is true regardless of their value.

Ask the Experts at Royal Legal Solutions About Your Retirement Planning Options

Regardless of where you are in the retirement planning process, Royal Legal Solutions an assist you. We have extensive experience educating investors about self-directed investment options. Many of our investor-clients love our Solo 401k information, product, and compliance services. Our Self-Directed IRA services can also be helpful for retirement planning, as the SDIRA is yet another vehicle that allows you to diversify and take total control of your investments. To determine which of the available retirement planning strategies are best for you, consult with one of our experts at Royal Legal Solutions. You may also contact us with any questions you may have about your options.

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