CEO and Wealth Educator Stuart Zadel discusses active and passive investing strategies, the balance between digital and physical assets, and why it’s still important to play offence and defence in 2020, and beyond.
Well hi guys and welcome, this is Stuart Zadel, CEO of Zadel Property Education, and Happy New Year and Happy New Decade… we made it, who would have thought?! 2020, here we come!!
Now before I get into this quick video and update you on a few things, I do want to acknowledge the very serious and horrific bushfires that have ravaged our nation over the last few weeks… clearly a major loss of property and loss of human life, depending and fighting those fires which is always a tragedy in this country, and our hearts go out to those people.
And of course, if there’s one thing we know that follows bushfires, that’s right, it’s floods! Seems we’re now in for a fair bit of rain on the east coast coming up, so everyone please stay safe, be smart, and be prepared.
Alright, speaking of being prepared, it’s 2020, and who would have thought we’d get here? It’s another election year in the United State, and my tip is that the Trump man is a shoe in for another four years. I believe he was put in there with a job to do over eight years, and I believe he is being protected to do that job. Lets hope that that is correct, and lets hope that integrity comes back to the world and justice does reign at the highest levels.
Of course we know our banks are fraudulent, our governments are fraudulent, and our laws and policies, I think to a large extent are fraudulent… and it’s very important that you are aware of what’s going on, and that you create success and wealth for you and your family with the situation that we are in here and now. I believe our consciousness and awareness is raising with the people.
So I want to quickly go this video… it’s the year 2020 and that was the final year we set for our topic 5 big goals in our 10 years… which I started in 2007, we extended it in 2017, and now here we are. We’ll give you an update on them as we go…
But today I want to touch on three things I said to you last year in my January 2019 video.
The first one is regarding Active and Passive… most people live their lives generating their income in an active way… that means work. Now, don’t get me wrong, there is a wonderful fulfilment to be gained from work, and I think physical labour as well (you may or may not agree)… but you should be doing what you love to do. Cause that’s where you get your psychic income, your fulfilment from your income… it doesn’t have to be where you get your material income. Your material income should come from your investments, and I believe your passive income.
The whole game is to convert your active income, to passive income. If you’ve got a job, either work on earning more money, or save by living on less than you earn, take the balance and invest it very, very smartly… and you can be financially successful in five years or less, and I believe a lot quicker than that these days with some the opportunities available.
Now, the second one was the balance between digital and physical. Most of us have gone and migrated to a digital lifestyle… and this is turning out to have many, many problems.
As an example, the entire Visa card network went down across Europe last year… this is the largest payment gateway in Europe, and every country couldn’t use Visa card… and what did they say, we “suggest clients try alternative methods like cash.”
Yet here we are, we’ve got the Australian Government looking to ban cash transactions right now as I film this video. Maybe the people will stop it, as it’s been proven to be bogus. I believe it’s got nothing to do with the economy, it’s about preventing you getting your money out of the banks in the event of a bank bail-in, which could be on the cards in the next few years.
US debt just hit 22 trillion dollars… and there’s another 21 trillion dollars that they’ve found which no one is talking about that, that was missing or mis-appropriated… don’t get me started!
So I think you want to have or convert a fair bit of your assets into physical assets. So what does that mean? Well it’s land, physical cash, maybe precious metals, totally up to you, I don’t give financial advice.
You can see behind me there’s a lot of land that I’m getting prepared to irrigate and plant this out… you’ll also see down behind me there is a brand new dam holding water, and water is a physical asset as well as food, and tools, a whole lot of interesting things that go with the physical. So you should be thinking about that.
Alright, so the final of the three things that we spoke about last year was offence and defence. Offence is essentially making more money, going out there to be more successful, starting a business, starting a side hustle. That is completely relevant today and the opportunities are greater than ever. However, defence is very important also, protecting what you’ve got. If you’ve got cash, if you’ve got assets, do you have an asset protection system in place? Do you have cash not just all tied up in one business or one company, what if it was to fail? Do you have assets around the world, overseas? You know there’s a whole lot of thinking that goes into this.
Alright, so in property, the environment has changed a lot in the last few years as many of you know… the property market in Sydney / Melbourne has changed dramatically and it’s highlighted to me how important interest rates are… some people are wakening up to the game that essentially it is the Central Bank that is controlling the economy, and the monetary system, subservient to a Head Central Bank, probably out of the US, then a few behind that.
So, you’ve got to be careful when it’s not normal supply and demand that is justifying a market and its pricing. We know that there are other mechanisms at play.
In the US they have always had a saying, ‘don’t fight the Fed’… even though the market should collapse, or it should go up, the Fed can step in and have it do the complete opposite… which you need to be aware of.
So can you still make money doing renovation and development right now? Sure, if you get the money, and if you know what you’re doing, and if you are in and out in the same market.
But for my money, the single greatest lowest-risk / highest return opportunity right now is still Airbnb. It is a massive opportunity and we are moving more and more to the co-hosting model where you don’t even own the property… you don’t have a dollar in it… you are simply managing it for somebody else, and taking a commission around the 20% mark.
We’ve re-recorded a brand new and updated webinar and if that’s interesting to you, I suggest you check out the link below, because we know there is some regulation coming, and the co-host model is another level of protection against any like that.
** RECOMMENDED LINK **
So apart from that, I just wanted to acknowledge the start of the New Year… I know this newsletter and this video is coming to you a little bit late… there’s been plenty going on, I’ve been travelling a bit, experiencing a bit and ticking off a few of my personal goals as well.
I hope you have, I hope we can do a lot more together in 2020… Here’s to your best year ever, and stay tuned for more. All the best for now, cheers guys!