Offense + Defense: The 90-Second Plan to Retire Without Fear - Balance growth and guaranteed income to protect your lifestyle — and never worry about running out of money. - AZ TRT S06 EP18 (280) 9-21-2025 What We Learned This Week · Offense + Defense is the Key to Wealth Financial freedom isn't just about hustling harder or chasing returns — it's about balancing offense (growth, risk-taking) with defense (guaranteed cash flow, risk management). · Appreciating Assets vs. Harvesting Assets Appreciating assets grow in value but only pay off when you sell. Harvesting assets pay you while you hold them (rent, dividends, interest). The wealthy own both — using harvesting assets to cover expenses and appreciating assets to build long-term wealth. · Income is More Reliable Than Growth Steven Bavaria's "Income Factory" mindset reminds us that income is fact, growth is hope. A steady stream of cash flow lets you survive downturns without selling assets and builds confidence in your plan. · The 90-Second Retirement Plan Works Cover 80% of retirement expenses with guaranteed sources (Social Security + annuities). Use the remaining 20% of your portfolio for growth, fun, and legacy-building — no more withdrawal stress. · The Goal is Infinite Income The ultimate destination is creating income streams that never run out — from real estate, businesses, life insurance, or even intellectual property. When income covers expenses for life, you gain true financial freedom. Notes: Segment 1: Offense & Defense – The Key to Becoming Financially Unbreakable · Quote: "In today's uncertain economy, the safest solution to be wealthy, be in total control and enjoy freedom for you and your family is to have multiple streams of income." – Robert Allen (2001) · Tie to today: 20+ years later, most people still rely on one paycheck or one retirement plan. Part 1: The Problem – The "One Thing" Retirement Plan · Traditional advice: just max your 401(k) and hope for the best. · The flaw: market volatility, layoffs, health events → can wreck your plan. · Analogy: one oxygen mask — if it fails, you're out of air. Part 2: Offense + Defense = True Financial Freedom · Offense: o Growing income, scaling business, chasing higher returns. · Defense: o Creating steady cash flow, reducing risk, having a safety net. · Too much offense = risk of wipeout. · Too much defense = stagnation. · The key: Balance both to become "financially unbreakable." Part 3: Appreciating vs. Harvesting Assets Introduce the concept that not all assets are created equal — some you wait to pay you, others pay you while you wait. · Appreciating Assets: o Goal: Buy low, sell high. o Examples: stocks, gold, art, land, most crypto. o Risk: You only "win" if you sell at the right time. Gains (or losses) are just on paper until then. · Harvesting Assets: o Produce income while you hold them. o Examples: § Rental real estate → rent + depreciation + tax benefits § Bonds → interest § Dividend stocks / REITs → quarterly payouts § Staked crypto → interest § Covered call writing → option premiums § Cash-flowing businesses § Indexed life insurance → credited interest + loan access o Best assets do both: appreciate and produce cash flow (rental real estate, dividend stocks, etc.). Tie back to Offense-Defense: · Defense loves harvesting assets (cash flow covers bills). · Offense loves appreciating assets (bigger upside for growth). · Most wealthy individuals own both and balance them strategically. Part 4: Mental & Emotional Benefits of Defense · Cover 80%+ of expenses with steady income = less stress. · Frees mental bandwidth for creativity and risk-taking. · Allows you to play offense without fear. Part 5: The 3-Step Offense-Defense Plan 1. Build the Defensive Base ("Sleep-at-Night Money") o Rental properties, pensions, annuities, passive businesses, tax-free income plans. 2. Grow with Offensive Moves o Invest in higher-growth assets after defense is solid. o Use tax strategies and leverage wisely. 3. Think Like the Wealthy o Control assets, income, and taxes. o Hold appreciating and harvesting assets. o Focus on cash flow first, price growth second. Segment 1 Takeaway: · Secure your financial oxygen mask first. · Diversify with appreciating and harvesting assets. · Build a system that covers your expenses so you can confidently grow your wealth. Segment 2: The Five Types of Income to the 90 Second Retirement Plan · "Now that we've built your financial defense, let's talk about stacking multiple income streams so you never run out of money." Part 1: The 90-Second Retirement Plan · Reality Check: Markets, COVID, crypto crashes, trade wars → volatility isn't going away. · Biggest risk = relying only on investments for income. · Old school solution: Social Security + pension = guaranteed monthly paycheck. · Modern version: 1. Social Security (≈40% of expenses) 2. Guaranteed Income via annuities (≈40% of expenses) 3. Remaining portfolio → growth, fun, and legacy. · Rule of Thumb: Allocate 15–20% of portfolio to lock in guaranteed lifetime income → cover 80% of your expenses. Part 2: The 5 Types of Income 1. Business / Career Income – your day-to-day paycheck. 2. Investment Income – dividends, rent, crypto interest. 3. Retirement Income – 401(k), IRA distributions. 4. Guaranteed Income – pensions, annuities, Social Security. 5. Tax-Free Income – Roth IRA, life insurance cash value. Call to action: · List which ones you have today. · Create a strategy to build all five over time. Part 3: The Income Factory Mindset · Steven Bavaria's mantra: "Income is fact, growth is hope." · Focus on cash flow first — market value second. · A portfolio producing 10% yield with no price growth = same total return as 0% yield + 10% growth. · Income stream lets you survive downturns without selling assets. Part 4: Infinite Income – Scaling Your Streams · Real Estate: Buy, rent, refinance, repeat. Use leverage + 1031 exchanges. · Business: Build → pay off loans → profits keep coming. Use as collateral to expand. · Life Insurance: Tax-free policy loans → fund retirement and leave a legacy. · IP & Assets: Build once, get paid forever (Lucas/Star Wars, Bezos/Amazon, Microsoft/Windows, McDonald's system). Segment 2 Takeaway: · The goal isn't just retirement — it's infinite income. · Build multiple income streams that never run out. · Focus on income-producing assets first → appreciation becomes a bonus. · When your base income is covered, every market dip becomes an opportunity instead of a threat. Investing Shows: https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement 'Best Of' Topic: https://brt-show.libsyn.com/category/Best+of+BRT Thanks for Listening. Please Subscribe to the AZ TRT Podcast. AZ Tech Roundtable 2.0 with Matt Battaglia The show where Entrepreneurs, Top Executives, Founders, and Investors come to share insights about the future of business. AZ TRT 2.0 looks at the new trends in business, & how classic industries are evolving. Common Topics Discussed: Startups, Founders, Funds & Venture Capital, Business, Entrepreneurship, Biotech, Blockchain / Crypto, Executive Comp, Investing, Stocks, Real Estate + Alternative Investments, and more… AZ TRT Podcast Home Page: http://aztrtshow.com/ 'Best Of' AZ TRT Podcast: Click Here Podcast on Google: Click Here Podcast on Spotify: Click Here More Info: https://www.economicknight.com/azpodcast/ KFNX Info: https://1100kfnx.com/weekend-featured-shows/ Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. 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