24 Different Ways A SSAS Pension Can Help Build Your Wealth

Transcript

Unknown Speaker  0:01   The purpose of wealth talk is to educate, inform, and hopefully entertain you on the subject of building your wealth. Wealth builders recommends you should always take independent financial tax or legal advice before making any decisions around your finances.

Unknown Speaker  0:19  
Welcome to Episode 75 of wealth talk. My name is Christian Rodwell, the membership director of wealth builders. And I'm joined today by our founder Mr. Kevin Wieland. Morning, Kevin. Hello, Chris. Good to be with you again. Yes, off the back of last week's episode, which we got some great comments and feedback from so thank you to everyone. And that was all focused around how to become investable, Kevin, and you took us through the elegant model of the ROI switch. Perhaps it's worth just recapping, before we go into today's topic. Well, ROI is is critical to the whole wealth building process, because it's a way to to really focus on what's the outcome that you're trying to get. And you know, the one that I love more than anything else, Chris is the the Curiosity ROI that you're one relationship opportunity, or idea away from a complete transformation in your wealth. And we know that there are so many bad things happening in the world. But look, we can't do anything about them, we just must choose how we react to them. And the best way to do that is with curiosity, and seek things out and seek out good things as opposed to dwelling on the bad things that we simply can't control. But when it came to the investable side, which is really quite important, because when people are building wealth in property, or they're building wealth in business, two of the entrepreneurial pillars, if you recall, Chris, and it's really important to stress that, for the most part, you know, wealth comes from leverage can't get wealthy without leverage. That means leveraging something means, you know, getting a better outcome from something that's underperforming, underutilized, overlooked, something like that. And we can what I talked about in the last episode about being investable is how developers Let's save property are good business people, when they want to expand and raise funds, they often overlook what they're already great at.

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Because they're just focused on getting the money. So they don't tell the story of how the business or the property can serve the needs of somebody else very elegantly. And hopefully I got that message across. And judging by the comments, we certainly did, we did. And we know that within the seven different asset classes as we refer to them as pillars, there's one in particular, that is the most overlooked to Kevin. And that really is the topic for today. So that would be pillar number two for those that can remember our seven and pillar number two, Kevin is color number two is pension. And I think the subject of today is kind of made me think last week about how you could get multiple ROI eyes from one story. So just as the investable story can create multiple returns for the investor, remember, I talked about the five ROI as investors need, which is that return of their investment, return on intellect, return on interaction, return on impact. And then finally, the return on their investment, which you may recall, when you do this very, very well, the developer, person raising the money can get access to lower cost funds, because they've served the needs of the investor in a way that they didn't understand before. Well, this made me think about the pension again, because most people think their pensions are consigned into a box that says Do Not Disturb till 65. Or this money is in my company pensions. So they've got it, I can't do anything with it. And you know, nothing is further from the truth. Whether you live in the UK, whether you live in the US whether you live in Australia, wherever you live in the world, there will be an equivalent version of a pension that you can take control of. And when you understand how that control works, then you can apply the lesson of how do I take control, and then choose where you leverage it. Whether you choose to leverage it in your home, pay your mortgage off, whether you choose to leverage it to get access to money because you want to invest outside of the pension and the many, many ways you can gain returns and income way, way, way before that kind of 6065 a traditional access point, and so on and certainly, very powerfully pensions can help with your property journey with your business and who doesn't need business help these days in these troubled times. You know, that's interesting things there. In your intellect

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property and any joint venture. So I thought the pension is a kind of, you know, can be a bit of a Swiss Army Knife really, when you understand it. And while it's never probably the best headline in the world, Chris to talk about, I think it's very powerful because for most people, it's often their biggest bank account. It's the largest single sum of money they have in their life, other than maybe tied up in bricks and mortar, but, you know, liquidity if you like, and they can bring that liquidity to bear in so many different ways. And I was invited to speak about this with our good friends at the SAS Alliance. More about that later, I guess, Chris, where I delivered is sort of a short presentation as part of a an overall presentation on how in the UK, we call it a SAS or small, self administered scheme. We also call it a director's pension, because you need to be a director, to have one. And what's fortunate is most of our wealth builders are entrepreneurial, and decrease in both mind. And in the end, they have businesses, and therefore they qualify themselves for access to this brilliant tool. And I talked about that for about, you know, I don't know, 1015 minutes or so, just as bit of introduction to the concept. And it seemed to go down well, so why don't we replay that? Yeah, yeah. So we've pulled that out that section. And I'm sure it's going to stimulate some ideas. So we can come back and have a chat about that afterwards. Okay, let's do that. I'm going to do a session not long. But just to try and help you understand how versatile assesses the now absolutely bloody marvelous is, because it can help you build your wealth in any way you want to build it. And in wealth builders, which, obviously a trusted partner of SAS Alliance, I'm grateful that Louise is in our group as well, Louise, so if people get stuck, you know, we'll be there to help them out when we, there are only seven assets that you can use to build your wealth. And what I mean by that is only seven forms of something that you can own, that can throw off recurring income, that can build your wealth. And I'd be interested in Mark just to just to see is there's only seven, you know, people want to suggest one or two, you know, so that might be curious, just while we warm ourselves up and, and get people participating as well. So seven, most people have three, and we call them the sort of

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the market pillars, which is something you do, but you don't really add too much value, you tend to drift around or you delegate your money to third parties. And then there's four, which we call the entrepreneurial pillars, where you're completely focused on being part of the value chain, adding value, and doing something yourself to improve your wealth and force appreciation, as opposed to letting other people do it for you. And in some cases, obviously, just watching things go down, as well as up

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any suggestions people come up with? As a Collins mentioned business? Yeah, that's definitely in there. So yeah, that's a good one, Colin, and then you definitely can see that that's going to fit on the left hand side. So remos mentioned stocks shares. I know REMAX remaster is a

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frequent visitor to to wealth builders. Let me share them anyway, Mark, so, so we've got seven. So the first three is home equity or home capacity, I'm going to touch on each one and how the pension can help the pensions, obviously, and investments. And what we find is people who rely on three, their home, their pension, their investments, invariably not like adding enough value in their life. So the only way to get wealthy is to be doing it for 40 years, you've got a takes an awfully long time to delegate your way to wealth. So the ones that are much more relevant and we see much more frequently amongst our SAS owners. They tend to be entrepreneurs in their mind, even if they're job holders in their day time. is a portfolio property generate rental business that generates recurring profits, not just trading profits, intellectual property, oh, I wonder what we're going to talk about bit later, and intellectual property and joint ventures. So they are the only seven ways to build wealth. Now every time I'm in a forum, Mark, where I described the seven, I throw out a standing challenge, which nobody's ever claimed it and the challenge is this. If you can give me number eight.

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Another word something that you own. That is not you

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puts money in your bank account while you're asleep. You don't have to be there for the money to show up. So which shows up You don't have to. And you can pass that on to people you care about or good causes, it's got to fulfill that definition. So don't be suggesting gold to me, because gold does not throw off cash flow. It's a hedge. So, Katie champagne are, but I'll get it from Bonnie where I was today. So no problem, you can have a fine case of English champagne, which they do in the same way. twiddling the old bottles, you know, we did a bit of that today, it's all good fun. If you can find number eight. But let's show you how you SAS can help you in all cases. So surely, your pension can help you create or take advantage of the equity in your home or the capacity in your home. While it can, because your SAS can buy gardens and land. And we've got clients in our community who are doing this, they're getting together with their neighbors, and they're using sasses to buy the spare land that's capacity that is in their property, and then turning that into a development opportunity. So all possible and your pension can make that happen.

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Now, all people like me can get access to tax free cash. So when you're over 55, you can get access to 25% of the value of your pension. So in a SAS, for example, you're 25%? Well, what could you do with that when you could repay your mortgage, which means you can get rid of a liability, which then you've got more disposable income, which you can reinvest, or you might want to feel secure, or you create yourself an unencumbered asset, which you could then use as security for a SAS loan back. And a lot of people think you can't use residential security for a loan back. But you can. And law allows it there's just some rules about how to do that. And there isn't a week mark that goes by without somebody asking me that question about

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can you take legal illegal charge on a piece of residential property for a SAS loan back? And the answer is yes, you can.

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Alright, so that's your home. What about if you really fancy investing, you know, you don't like the idea of having your money constricted inside a pension and a lot of reasons why people might want to do that. Again, you could take your tax free cash, and then you take it out of the pension. And if you are in a position where you want to use that money, because for example, you might be wanting to invest outside of pension, or you might want to use some other tax allowances like ISIS, or Ei, ss, or even vcts complicated language, but just tax wrappers that help you diversify the way you build your wealth, you know, your pension can help you do that, especially those people who are getting close, or over their lifetime allowance, which, as we know, is just a little over a million pounds. 1,073,100 is the current figure. And lots of people are getting close to that. So they can use the loan back, or the tax free cash, or a combination to reduce their lifetime allowance problem. So lots of things you can do there. Of course with property, and you've done lots of this mark, haven't you both commercial? And con terezi? Would you SAS and you've demonstrated that many times. And that's probably one of the most popular strategies and there's going to be loads of opportunities isn't there post? Well, you know, when COVID eases there's the whole high streets going to change, many many opportunities going on there. And people are priming themselves ready for that? And of course because you can collaborate with others you can put more money

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in the pot as I'll cover on cover off in just a moment. So real real Perfect Storm isn't it? There's fundamentally there's an absolute need in the market we're nowhere near addressing the housing shortage got government stimulus? I mean we've got COVID and as you say, you know the the retail High Street and not exactly amazon prime now so yeah, yeah, then definitely seeing lots of demand in the SAS community mark for storage. You know, for for the

Unknown Speaker  14:23  
I suppose for the delivery and for the inability to execute orders and so forth. But we all know that SAS cannot buy and I'm not ever going to say Can the SAS cannot buy habitable residential property, you know, can't buy your home. It can't buy a buy to let but that is residential property that is exempt. So you can buy it. So student accommodation halls of residence for example. Technically, as you've got in your bookmark, even a prison is exempt residential. Not that you want to be in there but care homes and other types of property where

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There's a certain type of tenant that needs special consideration, whether it's veterans, refugees, children who need protection, supported living all sorts of things, where you can use your money. And and Louise, we were talking just the other day when we about

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you living in a property, but it's, you treated something different because it's a holiday home. And we had a mastermind on that we talked quite a lot about that. So that's an area you're going into, isn't it? It certainly is. Absolutely, yeah. And again, you can do that with your SAS. Now the loan back lending 50% of your pension. So you've got 400,000, give or take some technical rules, but about 200,000, you could loan that back and provided you fulfill the rules, you can buy residential with that. So the loan back allows you to do the residential, but you need a company that has, you know, a property buyers to it, so that the purpose of the loan back is for the purpose of the business. And then of course, again, tax free cash, and I'm banging the drum about tax free cash, but it's very flexible thing when it comes to using your money. So technically, you could get 50%, out and 25% out all at the same time. So you could take 75% of your money out basically just needs a tax relief there. And meanwhile, everything you do is compounding. So in a way, then mark, as you've said before, it's a way to enjoy the valuable benefit of the use of your pension money. And you can choose whether you take the benefit, personally, in your company, or back into pension. So it's you can't do that and the other kind of pension scheme.

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So what about a business, so if you've got a business, a trading business, you know, not a property business, but a trading entity of some kind? Well, you know, you can use the pension to help inject money into that business.

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You can buy your own company shares, as well, there are some rules, but you can buy shares, you can even do a loan back, for example, and buy a franchise so you can even buy a new business, or do a loan back and inject capital into business, how many COVID affected businesses would have been grateful for having no money in their pension scheme that could have helped the business at a time of trouble.

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And of course, one of the things that's poorly understood is if you have a business, your contributions are not limited to your income, which they are as an employee, as an employee, you're limited to how much you earn in a business. It's not about how much you earn, you're allowed to make a 40,000 pound contribution no matter what. And of course, when you have a multi member scheme, and many of our schemes are multi members, not just a single scheme, but multi many, like you've got four in your schema, then you can have a contribution of up to half a million in one tax year. And most people, even accountants don't know about that, called the general unallocated fund. And that's a very useful one for, you know, businesses coming to the end of their life, maybe they're ready to sell, you know, they can do things there.

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The weeds, what about IP? Well, you know, you could use IP, and use that as the security for long back, you know, as long as the IP can be valued, and there are plenty of ways IP can be valued, you can buy the IP and sheltered inside your SAS, so your IP grows in value tax free. Of course, you can buy other people's IP, you know, you could lend and learn with somebody else, and they share their IP with you. That's a brilliant way of getting access to other people's IP. And as you develop your IP, and I'm sure that's happened to you mark many times and will be happening, I'm sure to you, Louise in due course others will be seeing your successes and will want to lend to you. So the fact that you create IP makes you more investable. So you know, the whole thing can be a very virtuous circle. And then finally joint ventures which was number seven, you can collaborate internally. In other words, like you've done monk, you and your wife, Nigel, and their wife and his wife, you've got four people, you can collaborate together.

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But you can collaborate externally. So I can collaborate my SAS with yours, and do a project. So you know, you can combine other people's houses and almost go in convoy and do some interesting things. And that happens a lot. Cos you can lend and you can borrow as I mentioned. So that's great for collaboration and joint ventures. And a great feature I think of this mark, which is probably the most satisfying when people are recognizing the ROI is that are involved in you and I talk a lot about this in multiple arrows you can get when you're collaborating because you get to see what other people do see their perspective, get access to the little black book, get experiences that you wouldn't do.

Unknown Speaker  20:01  
And maybe maybe even make an impact in the world that perhaps on your own, you wouldn't know how to do. So I hope in a very short period of time, and a whistle stop wave kind of giving you an overview of our satis, the most versatile pension is the Swiss Army knife in wealth building. And I would encourage people to find out a little bit more, so they can see how versatile it is, and why, you know, we still are very excited about it for those who want to work more entrepreneurially than just delegate their money to a fund manager or a third party.

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So as we mentioned there, Kevin, that was an excerpt, which was taken from the satellites event last week. So tell us a bit more about the satellites, because we've obviously mentioned this a few times on the podcast before Kevin, yes, that's aligns his creation,

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which was really born out of a journey. Remember, I talked to the beginning of the podcast about being curious about, you know, you one relationship opportunity or idea away from transforming your wealth. And nobody took this more to heart, then then clients of mine, Mark Stokes, and Nigel green. Now they were corporate people way back, they went into property development, they discovered that their own pensions, in fact, what they did, is they combined each other's pensions and their wives pension. So for pensions together, and created a single SAS is more self administered scheme for four people, you can have up to 11. So really powerful use of leverage, there's a bit of leverage, right? So you're bringing power of four people's pensions together. And then they started using that pension money to buy commercial property, often in cash, because the liquidity was there in the pension. So they got good deals. And then, you know, they started to do so many more interesting things facilitated by the use of the pension. And what was fascinating for me, is, when I was speaking to mark about it, and Nigel, they said, you know, they worked 20, I think best part of 25 years in corporate life,

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you know, building their pensions up in a normal way people do. And they said the only time they really interacted with it was once a year they got a statement, they looked at it wished it was a bit better, and put it back in the drawer. And then when they left corporate life and went into business together and discovered this was that corporate pension, or those four corporate pensions were a rich source of money funding, that they could access for themselves with a new set of knowledge that was taught to them, then, you know, the sky was the limit. And what they say in their story is the 25 years it took them to build that money, they doubled it within a few property transactions. So you know, within less than a couple of years, had leveraged the performance of their pension 10 times more than in terms of speed, double it than it took to get there in the first place. And so impressed with a with the with the power of SAS, Mark took it upon himself to write a book, which is now you know, probably the best selling book on the sort of principles of SAS. And now he co authored that SAS superstars book with Louise writer who we spoke about before, who's one of our students, and marks one of our clients as well. And he and Nigel, kind of operating their services, but we're feeling like there really wasn't a good place to share this, you know, they thought, wow, this has been such an incredible result. How, how and why do people not know about that now, they've had a relationship with us. But you know, they just wanted to give more power to the message. So they created the Alliance, SAS Alliance, essentially a place for education, and connection, and to help people you know, who were interested in this idea to meet together.

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And in, you know, days when we could meet together, there were meetings across the country, nationwide, where people were discovering this and seeing case studies of what was possible. So very, very empowering and quite weird in a way to think that hundreds of people were turning up to try and work out how they could leverage the pensions that most people forget. They got very, very interesting. And after about a couple of years of doing that, and interacting with me more they invited me to help them take it to a higher level. And that's what we did. So I joined the board of SAS Alliance and now I'm working with them as part of you know, my business life so I'm proud to be co directors now with Nigel and with Mark and lots of things

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happening, including Chris, can you believe it? A SAS conference and national conference organized by SAS Alliance

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where there probably be 1000 people in Who would have thought 1000 people talking about pensions is really quite bizarre. We'll be online, of course, because we're in that kind of environment. And I believe it's the 12th of November. So if anybody's curious, we call the curious people. Remember, we encourage curiosity, the explorers, so go explore, you know, go explore satellites, go to the Facebook group. And you'll see there's lots of free content there, or go to the conference, you can register there. It's just, it's called the Sasson property conference. And it's only about property and how you Pinterest can have property. So it won't be going into some of the details on some of the other pillars are touched on in the presentation. However, because property is the most popular asset, here in the UK, for people to build wealth, it's going to be very powerful thing is going to be a whole day. And it will be recorded. And the event to attend is completely free, Chris, completely free of charge. So I think you could post a link to the show notes, if you want to Chris, I think that's the we will, we will put a link. So anyone listening can can head to the show notes right now and click that and register straight away, as you say, go and check it out. Yeah, yeah, it's all free of charge. And it's just all about trying to, you know, get good news out there. And little by little, you know, this message of the directors pension, the small self administered scheme, used terms used interchangeably,

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then, you know, it's getting that message out, and the more people who discover it, you know, the more people who will be able to accelerate their wealth in a way we've seen so many of our clients do now, Chris. So touching back on the presentation. And Kevin, I know, in the past, we've kind of said, joint ventures is one of those pillars that works across all of the other six. But you've demonstrated there today that the pension is another of the pillars that just can work with all of the others. So it's so powerful. And we see this done, we day in day out when people really get their heads around this. And of course, our members who are really learning how to create their own unique plan, based on the right pillar, the right strategy, the right use of leverage, and they're just, you know, accelerates them, then their confidence increases, and, and it puts them on the path to financial independence, which, of course, is our primary goal to help as many people as possible to reach that. Yeah, and just for the avoidance of doubt, Chris, I think use the word pillar, but it's multiple pillars, isn't it? It's that combination of things, we don't like to encourage anybody to build their wealth in one pillar, one asset, because one of anything is dangerous, you know, one job, that's dangerous look at today's environment, one business which can be devastated by something outside of your control, that's dangerous. So the skill in wealth building is to build multiple streams of recurring income to the ownership or the control of multiple assets, that you essentially have the ability to use your own unique set of skills, relationships, all of the things that we teach, to help you build your wealth, and more quickly, more enjoyably. And above all, more safely, than just simply leaving it to chance. So that's why I'm very proud of what we're doing. And proud of my relationship with SAS aligns. And, you know, proud that we're actually reaching new communities. I think I saw people starting to sit up and take notice in, in, in Dubai, as well, Chris, so our messages of principles is getting out whether you know, the tax rules in every country are different. But the principles you know, don't change. Yes, yes, no, we love seeing our members with holding their sign declarations and posting those on social media is wonderful to see. So the community is growing. And if you're listening, and you would like to be one of our members, and work with Kevin and myself and all of the other wealth builders who are building their own plans, then we will be opening up the seven steps to wealth program again next week. So do look out for the details. We'll be sending those out to everyone who's on the wealth builders distribution list. So if you're not already, then do head to wealth builders. co.uk. And you can join get some free resources copy of Kevin's book and join our free membership for some free resources. And then we'll let you know when the doors are open next week for for membership. Yeah, that'd be cool. But of course, you know, we encourage anybody to take their time and to consume what our free content is, Chris, we're very happy about that. We're never in a rush. You know, people, as they say, when the student is ready, the teacher will appear. So for those students who are ready, you know, where we just can't wait to have a new one.

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Take, I'm looking forward to that in immensely. But if you're not ready, don't worry, just take your time, you know, tune into what we do listen to the podcast, by all means, and get our free resources which we make available. You know, often people say so generously. And we do that. Because we're very comfortable in trying to help people, whether you're a customer of ours or not, to do something about creating your own wealth. Well, Kevin, thank you, as always, for sharing your wisdom with us all today. It's always a pleasure, Chris, I just enjoy it. And, and by the way, thanks to you too, because I think you bring out the best of my message and you help distill it down. And, you know, so I mentioned I'm proud of the relations with those other people. Most are proud to be working with you, my friend. So thank you very much for your contribution. And until next time, see ya.

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We hope you enjoy today's episode. Don't forget that we are constantly updating our resources inside the wealth builders membership site to help you create, build and protect your wealth. Head over to wealth builders.co.uk slash membership right now for free access. That's wealth builders.co.uk slash membership