Wealth Formula Podcast

Buck Joffrey
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Financial Education and Entrepreneurship for Professionals

  1. 2D AGO

    558: Bitcoin's Rise as Collateral in Traditional Finance

    I continue to be surprised by how many sophisticated investors still dismiss Bitcoin as purely speculative. At this point, whether you personally like Bitcoin or not is almost beside the point. The more important question is this: What happens to the price of an asset with a permanently fixed supply when institutional adoption accelerates globally? Because that is exactly what is happening right now. Let's start with the simple math. There will only ever be 21 million Bitcoin. Exactly 21 million. And several million are believed to be permanently lost forever. Meanwhile, demand continues to expand at a remarkable pace. According to recent estimates, there are now roughly 559 million crypto users globally, approaching 10% of the world population. Institutional adoption is accelerating even faster. As of this year, spot Bitcoin ETFs have accumulated roughly $100 billion in assets under management in an extraordinarily short period of time. And remember—these ETFs only launched in early 2024. BlackRock alone has become one of the largest holders of Bitcoin in the world through its ETF products. That's BlackRock. The same firm that manages roughly $10 trillion in assets globally. Larry Fink, who once openly criticized Bitcoin, now refers to it as a legitimate alternative asset class and even a potential hedge against currency debasement. This is not fringe finance anymore. And here is where the supply-demand imbalance becomes fascinating. After the most recent Bitcoin halving, annual new Bitcoin issuance dropped to approximately 164,000 BTC per year. Yet estimates suggest corporations and institutions alone now hold well over 1 million Bitcoin combined. In other words, institutional demand is already consuming supply at a pace that dramatically exceeds new issuance. That matters. A lot.Now think about Bitcoin in the context of global wealth. Gold currently has an approximate market capitalization around $20 trillion. Bitcoin fluctuates closer to roughly $1.5 trillion. So if Bitcoin merely achieved parity with gold as a store-of-value asset, you are talking about a potential order-of-magnitude increase from current levels. And some very serious people are beginning to think even that may underestimate the opportunity. Larry Fink recently suggested that if sovereign wealth funds globally decided to allocate just 2–5% into Bitcoin, prices could theoretically move into the several hundred thousand dollar range per coin. Again, you don't have to agree. But ignore this at your own peril. Because Bitcoin is no longer sitting outside the financial system looking in. It is slowly becoming integrated into the plumbing of the system itself. That integration is where things start getting really interesting. Historically, assets become truly institutional once they can be borrowed against, lent against, securitized, collateralized, and incorporated into traditional underwriting systems. That is exactly what is beginning to happen with Bitcoin right now. And this week's episode of Wealth Formula Podcast is a very tangible example of that transition already underway. I interviewed Josip Rupena, founder of Milo. What Milo is doing is genuinely fascinating. They are building crypto-backed mortgages that allow investors to purchase homes without selling their Bitcoin holdings. Think about the implications of that for a moment. Traditionally, if someone wanted to buy real estate using appreciated Bitcoin, they had to sell the asset, trigger taxes, lose future upside exposure, and convert back into the traditional banking system. Milo's model changes that dynamic. Instead of forcing liquidation, Bitcoin itself can function as part of the collateral structure. That is a major conceptual shift. And whether you are bullish on Bitcoin or not, I think it represents an important glimpse into where finance may be heading.

    38 min

  2. MAY 3

    557: The Legal Structure That Can Make—or Quietly Destroy—Your Wealth

    There's a strange paradox when it comes to wealth. The more you have, the more invisible risk you carry. And most people don't see it until it's too late. I've seen this play out in a lot of different ways. A physician builds a multi-million dollar net worth over decades—real estate, brokerage accounts, maybe a business or two. Everything looks solid. Then one lawsuit hits. Or a divorce. Or even just a poorly structured partnership dispute. Suddenly, assets that felt "owned" aren't really protected at all. On the flip side, I've also seen people with less wealth sleep better at night because their structure is airtight. Everything is compartmentalized. Risks are isolated. There's a system. The difference isn't intelligence. It isn't even an investment skill. It's structure. Most people think trusts are something you set up when you are ultra-wealthy or you're older… maybe as part of an estate plan. But that's barely scratching the surface. A well-designed trust isn't just about passing assets when you die. It's about: – Who actually controls your assets while you're alive – What a creditor can (and can't) touch – And how much of your financial life is exposed vs. insulated In other words, it's about whether your wealth is fragile… or antifragile. And yet, this is where a lot of people get it wrong. They set up a trust… and then completely ignore the rules that make it work. They treat it like their personal checking account. They mix funds. They sign things incorrectly. And without realizing it, they've essentially built a paper shield that disappears the moment it's tested. So this week, I wanted to dig into this topic with someone who has spent decades designing these structures for high-net-worth individuals. On this week's episode of Wealth Formula Podcast, I sit down with Mark Pierce, an attorney who specializes in asset protection, trusts, and advanced legal structures. We talk about: – What a trust actually is (and what it isn't) – The real difference between revocable and irrevocable structures – Why timing matters more than most people realize – How asset protection trusts actually hold up in the real world – And the biggest mistakes people make that completely undermine their own planning If you've ever wondered whether your current structure actually protects you… or if it just makes you feel better on paper… this is a conversation worth paying attention to.

    35 min

  3. APR 26

    556: Investing in Movies?

    When it comes to investing, boring is good. In fact, in most cases, boring is exactly what you want. The fewer moving parts an investment has, the fewer ways it can break. You're not relying on perfect timing, you're not depending on some heroic execution, and you're not sitting there hoping everything lines up just right. It just… works. That's why a lot of the stuff I like—cash-flowing real estate, simple structures, things with predictable outcomes—tends to look pretty unexciting on the surface. But over time, that's where wealth is built. But… boring rarely creates outsized wealth. The biggest wins almost always come from things that are the opposite of boring. If you bought Bitcoin ten years ago and held it, that wasn't a conservative decision. That was a bet. A bet on something with massive uncertainty that most people didn't understand. Same thing in Silicon Valley. Most startups fail. Everybody knows it. But the ones that work? They don't just work—they hit so big that they make up for everything else. And then there's this other category of investments. Investments that you make not just because of the potential return—but because they're interesting. Because they give you access. Because they give you experiences. Because, frankly, they're kind of fun. Being able to say you're a Hollywood film investor and you showed up at the premiere… maybe even made a cameo? That's a different kind of return. Is it the safest place to put money? Obviously not. But not everything in your portfolio has to be purely clinical either. Know the risk and decide if it's worth it. That's what this week's Wealth Formula Podcast is about. I sat down with Jeff Deverett, and we kept it pretty simple: film investing is high risk. Most of it doesn't work. But it's also one of those areas where the upside, the structure, and frankly the experience itself can make it worth understanding—if you go in with your eyes open. If nothing else, it'll change the way you think about what you're actually investing in… and why.

    38 min

  4. APR 19

    555: Iran, Bitcoin, and What It Means for Gold

    If you want to understand where money is going… don't listen to what people say. Watch what happens when the system is under stress. Right now, in the Strait of Hormuz—arguably the most important energy chokepoint in the world—Iran has effectively taken control of transit and, in some cases, is demanding payment in bitcoin for passage. Why? Because when you're operating under heavy sanctions, the traditional system stops working. Payments can be blocked. Assets can be frozen. Transactions can be tracked and shut down. So you move to something that doesn't rely on permission. In this case, that means digital assets—Bitcoin, stablecoins, anything that allows settlement outside the banking system. This isn't theoretical anymore. It's happening in the middle of a real geopolitical conflict—one that has already disrupted a massive portion of global oil flows and pushed prices higher. Now step back for a second. That core idea—avoiding counterparty risk—is not new. That's exactly why gold has existed as money for thousands of years. No counterparty No issuer No reliance on a system But Bitcoin introduces a different version of that same idea. It's: digital highly liquid instantly transferable No shipping. No storage. No borders. So now you have two assets solving the same fundamental problem—just in very different ways. Of course, the pushback on Bitcoin is always volatility. "It's too volatile to be a store of value." But think about that carefully. Bitcoin is still small relative to gold. It doesn't take much capital to move it. So is the volatility the problem… or just a reflection of its current market capitalization? And what happens if that changes? Meanwhile, gold—the original hard asset—has quietly been doing exactly what it's supposed to do. After years of going nowhere, it's been one of the biggest beneficiaries of everything we're seeing right now: Geopolitical instability Central bank accumulation A growing lack of trust in the financial system So the question for investors is: Has gold already made its move… or is this just getting started? That's what we get into on this week's Wealth Formula Podcast. My guest is David Beahm, President and CEO of Blanchard and Company, one of the oldest precious metals firms in the U.S. We talk about what's actually driving gold, the debate between physical gold and ETFs, the real-world issues around liquidity and taxes, and how to think about gold in a world where Bitcoin is no longer theoretical—it's being used in real geopolitical situations.

    28 min

  5. APR 12

    554: The Dollar's Hidden Power (and Why the World Wants Out)

    If you've ever wondered why the U.S. seems to play by a different set of financial rules than the rest of the world… this is it. It all comes down to the U.S. dollar being the world's reserve currency. Now what does that actually mean? After World War II, at the Bretton Woods conference, the global financial system was essentially rebuilt—with the U.S. at the center. The dollar was tied to gold, and other currencies were tied to the dollar. Even after we went off the gold standard in 1971, something interesting happened… The world didn't move on. Instead, it doubled down on the dollar. Today, the majority of global trade—oil, commodities, international contracts—is still priced in U.S. dollars. Central banks around the world hold dollars as reserves. When countries do business with each other, even if the U.S. isn't involved, they often still settle in dollars. That creates an extraordinary dynamic. Because the entire world needs dollars, the U.S. can essentially export its currency—and in doing so, fund its deficits, maintain liquidity, and exert enormous influence over the global financial system. In simple terms: We get to print the money everyone else needs. Now imagine you're another country. You're working, producing goods, running trade surpluses… and accumulating dollars that you don't control. Meanwhile, U.S. monetary policy—interest rates, money printing, sanctions—can directly impact your economy whether you like it or not. That's why many countries don't like this system. It's not just about economics. It's about control. Over the last decade, we've started to see cracks form: Countries exploring trade outside the dollar Central banks increasing gold reserves The rise of digital currencies and blockchain-based systems And geopolitical tensions accelerating the desire for alternatives None of this means the dollar is going away tomorrow. But it does mean the landscape is changing—and if you're an investor, you need to understand what that actually looks like. Because the next shift in the global monetary system won't be announced on CNBC ahead of time. It will happen gradually… and then suddenly. That's exactly what we're diving into this week. On this episode of Wealth Formula Podcast, I sit down with economist Barry Eichengreen—one of the leading experts on global currencies and financial history—to break down: How the dollar became the world's reserve currency What that status really means in practice Why other countries are actively looking for alternatives And how technological innovation, geopolitics, and history are shaping what comes next If you care about where the world is headed—and how to position yourself ahead of it—you'll want to listen to this one.

    36 min

  6. APR 5

    553: How To Think about Taxes

    If you're paying a ton in taxes right now… it's because you're playing the wrong game. Most people think taxes are about income. They're not. They're about behavior—more specifically, incentivizing behavior. The government is constantly telling you what it wants through the tax code, and once you stop looking at it emotionally, it's actually pretty obvious. It wants businesses. It wants jobs. It wants housing. It wants capital deployed in specific areas like energy and infrastructure. And when you do those things, it rewards you with lower taxes. Now contrast that with the high-income W2 professional. You did everything right. You trained forever, built a career, and you're producing at a high level—often doing a lot of good in the world. But the government doesn't see working for someone else as something it needs to incentivize. In fact, as a high-earning professional, you often end up paying a higher effective tax rate than almost anyone else. Not because you're doing something wrong, but because you're not doing what the system is designed to reward. I know that doesn't feel fair. But fairness isn't really the point. The people who seem like they've "figured out taxes" aren't gaming the system. They've simply figured out what the government wants and aligned themselves with it. If all your income is W2, you're largely boxed in. But when you start owning assets—businesses, real estate—you step into a completely different framework. Now you're not just earning income, you're creating it. You have expenses, deductions, and depreciation that fundamentally change how that income is recognized. Same economic reality, very different tax outcome. This is one of the biggest advantages of real assets over simply owning stocks and bonds. It's not just about return—it's about control over how you're taxed. And if you really think about it, you should be looking at your financial life like a business. You already have revenue in the form of your paycheck, and you have expenses. But your biggest expense, by far, is your tax bill. If you want to maximize your "profit," you have to figure out how to reduce that expense. And the only real way to do that is to change your facts—change how you earn, what you own, and how your income shows up. That shift—from focusing on how much you make to focusing on what you keep—is really what this whole conversation is about. It's also exactly where this week's podcast goes. I had a conversation with Steven M. Sheffrin that digs into how tax systems actually work in the real world. Not in theory, but in terms of how people respond to them—psychologically and behaviorally—and why so many well-intended policies fail because they ignore that. If you want a better mental model for thinking about taxes—and how to position yourself within the system—it's worth a listen.

    49 min

  7. MAR 29

    552: The Inflation Spike Everyone Will Misread

    This week, you're going to start hearing a familiar narrative again… "Inflation is back." And on the surface, it's going to look true. The next CPI print is very likely to come in hotter than expected. We're already seeing it in real-time data like Truflation. Energy prices have surged, and because energy feeds directly into headline CPI, it's going to push that number up—fast. But here's the problem… That's not the whole story. Energy is notoriously volatile, which is why the Fed focuses more on core inflation—stripping out food and energy. But even core isn't immune here. Petroleum touches nearly everything in the economy—transportation, manufacturing, packaging—so some of that pressure will bleed through. So yes, in the short term, inflation is going to look worse. But step back for a second. This spike is being driven largely by geopolitical tension—specifically the situation with Iran. And unlike past conflicts, this is not shaping up to be a multi-year war like Iraq or Afghanistan. In fact, the current administration is already signaling that this could be resolved relatively quickly. Whether it's weeks or a few months, the key point is this: This is a temporary shock, not a structural shift. And when that shock fades, energy prices will likely come back down… bringing headline inflation with it. Meanwhile, underneath the surface, something very different is happening. Core inflation—particularly housing—is already decelerating. Housing makes up roughly 30% of CPI, and here's the kicker: The way it's measured is lagged by about six months. In other words, the official data you're seeing today is reflecting what rents were doing half a year ago. But in the real world, rents have already been cooling. That's why the most important question right now isn't: "What does CPI say?" It's: "What's actually happening in real time?" That's exactly what we explore in this week's episode of Wealth Formula Podcast. Our guest, Edward Coulson, is one of the leading experts in housing data. He uses alternative models that track real-time rental trends—and more importantly, he's been consistently ahead of the curve in predicting the direction of core inflation. Even before this recent energy spike, his data has been showing a clear trend: Inflation has been overstated—and it's been slowing for months. So while the headlines may soon scream "inflation is back," the reality may be the opposite. This is one of those moments where understanding the components of inflation—and the timing behind them—matters more than ever. Listen to this week's Wealth Formula Podcast to get the full picture. Because if you're making decisions based only on headline numbers, you're likely to get this one completely wrong.

    36 min

  8. MAR 22

    551: Entrepreneurship Built for A Students?

    Most people assume a high income leads to wealth. Sometimes it does. But more often, it leads to a very comfortable lifestyle that depends on getting paid dollars for hours. There's nothing wrong with that. For many people, the best path is to keep doing what they do well and invest their income into real estate and other real assets. That alone can create significant wealth over time. But if you look at the people who build outsized wealth, there's usually another element involved—they own something that scales. The key difference isn't how hard they work. It's what they own that has leverage. And that leverage typically comes from systems. If a business runs because you're there every day, it can be profitable, but it's still tied closely to your time. When systems are in place, the business can grow beyond you. That's when it starts to become a true asset—something with enterprise value that could eventually be sold. For high-income professionals, this creates a bit of a dilemma. You're already doing well. Walking away from that to pursue something uncertain doesn't make much sense, and I don't recommend it (even though I did it myself). A more practical approach is to build something alongside what you're already doing—something that has the potential to become scalable over time. There are a few ways to approach that. Starting a business from scratch can work. I've done it multiple times. Some turned out very well, others didn't. Candidly, being a startup entrepreneur requires a certain kind of personality—one that's comfortable with a lot of risk. You have to have the stomach for it and, if you don't, it's better to recognize that early and stay away! Buying a business is another option, but most businesses in the price range of a typical high-income professional aren't that large. Smaller acquisitions often come with hidden risks—key personnel, operational quirks, and issues the seller understands far better than you do (and may be part of the reason they're selling). Then there are franchises. What makes franchises interesting is that they provide a structured roadmap. If you were an A student—someone who is good at following a curriculum and executing—this model can fit your wiring well. Franchise ownership is about learning a system and applying it consistently. You don't have to invent the model. You're executing one that has already been proven. Of course, there are trade-offs. Franchise fees can be significant. Upfront capital requirements can be high. And the advisory landscape isn't always objective. So the real challenge is figuring out how to evaluate opportunities in this space with a clear, unbiased perspective. That's what we cover in this week's episode of Wealth Formula Podcast. My guest breaks down how to think about franchises, where they fit into an overall wealth strategy, and how to approach them in a way that actually makes sense for high-income professionals. If you've been curious about building something beyond your primary career—but want a more structured path—this is a conversation worth listening to.

    42 min
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