Wealth Formula Podcast

Buck Joffrey
  • 4.6 (406)
  • Investing
  • Updated Weekly

Financial Education and Entrepreneurship for Professionals

  1. 14h ago

    561: Where Are Mortgage Rates Headed?

    A couple of weeks ago, I had Barry Habib on the podcast talking about where he believes interest rates and the economy may be headed over the next several years. Barry has been one of the more accurate voices in housing and mortgage finance during a period when many economists and market commentators have repeatedly gotten it wrong. This week, I wanted to continue that discussion with mortgage industry veteran Rob Chrisman because I think there's a bigger lesson here for investors. Right now, the stock market is near all-time highs again, and naturally, people want in. Investors are drawn toward momentum. They feel safer buying things that have already gone up. At the exact same time, many areas of real estate—particularly multifamily—have already experienced massive repricing, with some assets trading 30–40% below peak valuations from just a few years ago. And yet most investors are far more comfortable chasing expensive assets than buying discounted ones. That's the irony of investing. As Warren Buffett famously said, "Be fearful when others are greedy and greedy when others are fearful." Easy to say. Very hard to do. Part of the reason this environment feels so confusing is because we are dealing with conflicting macroeconomic forces at the same time. On one side, you have persistent inflation concerns, massive government deficits, Treasury issuance, geopolitical tensions, and uncertainty around Fed policy. All of those things can keep long-term interest rates elevated. On the other side, there are growing signs of slowing geopolitical tensions easing over time. I suspect that once the Iran conflict is resolved, we may start to see rates come down as energy prices help quell inflationary pressures, alongside broader economic activity, weakening consumer confidence, and eventually perhaps even disinflationary pressure from technology and AI-driven productivity gains. That's why both Barry Habib and Rob Chrisman make an important point that many investors still misunderstand: mortgage rates are not simply controlled by the Federal Reserve. Markets are constantly trying to price all of these competing forces in real time. Rob does a great job explaining how mortgage-backed securities, Treasury markets, inflation expectations, labor data, and global capital flows all interact to determine where rates go next. He also explains why the ultra-low rates of 2020 and 2021 were likely an anomaly created by extraordinary Federal Reserve intervention—not necessarily something we should anchor to as "normal." The bigger question for investors is this: Are today's elevated rates temporary noise within a longer-term descending rate cycle? Or are we entering a structurally different environment altogether? Because if rates ultimately move lower over the next several years, the assets currently under the most pressure today may eventually become the assets people wish they had bought when they were on sale.

    30 min

  2. May 24

    560: A Cash Management System That Will Make You Millions

    This week's episode of Wealth Formula Podcast is a little different. What you're about to hear is actually a webinar I recently did with Chris Miles on a topic I've discussed on and off over the years called Wealth Formula Banking. Why play this on the podcast? Because I genuinely think more people need to understand the concept. It may or may not ultimately be right for you, but I think it's worth taking the time to understand it so you at least know it exists and can decide for yourself. For years, I ignored it completely because the phrase "be your own bank" honestly didn't trigger any interest in me. It sounded gimmicky. But eventually I sat down and actually learned how it worked, and once I understood the mechanics behind it, I realized this is one of those foundational financial concepts that every serious investor should at least understand. Because if this does fit into your financial life, the earlier you implement it, the more powerful it becomes. And that's really the key here: time, compounding, and velocity of money. Those things matter enormously. One of the most common things I hear from people who finally understand and implement this concept is, "I wish I had known about this 20 years earlier." In fact, Chris tells a story during the webinar about an older investor who basically said that if he had simply optimized how his cash flowed over the course of his investing lifetime—while doing everything else the same—he likely would have made millions more dollars. And that's really what this entire discussion is about. Most people think almost exclusively about what they invest in. Very few people think about where they invest from, and that distinction turns out to matter a lot. Because once you understand how banks, institutions, and wealthy families actually use capital, you begin to realize there may be ways to amplify the efficiency of the investments you are already making. That's what fascinated me about this concept years ago. In this webinar, we go deep into how the velocity of money works, why policy design matters enormously, how banks and wealthy families think differently about capital, and how this strategy can allow your money to continue compounding while simultaneously being deployed into investments. Whether you ultimately decide this is right for you or not, I think understanding the framework itself is valuable. Because if this is something that belongs in your financial life, waiting 10 or 20 years to learn about it can become a very expensive mistake. And by the way, if you'd prefer to watch the webinar with the slides and visuals instead of just listening to the audio here on the podcast, you can do that as well. The webinar replay link is right HERE. You can reach out to Chris at chris@wealthformulabanking.com.

    1h 3m

  3. May 17

    559: Barry Habib: Where the Economy Is Headed—and What Investors Need to Know

    The stock market is sitting at or near all-time highs again. And what happens? People rush in. It's called FEAR OF MISSING OUT. Now compare that to what's happening in real estate. In many markets—especially multifamily—we've seen 30–40% price corrections from just 3–4 years ago. Our investor club has been buying, but most investors are sitting on the sidelines. Why? Because investments are the only things people don't naturally gravitate toward when they're on sale. When TVs go on sale, people line up. When stocks or real estate go on sale, people get nervous. I've quoted him a million times, but I'll do it again. Warren Buffett said it best: "Be fearful when others are greedy, and greedy when others are fearful." Simple in theory. Very hard in practice. Now, to be clear—this doesn't mean there's no risk. Rates may stay a bit elevated in the near term. Geopolitical issues, including the situation with Iran, can keep pressure on yields. But when you zoom out, there is a growing body of data suggesting that over the next 2–3 years, we are likely moving into a declining rate environment. And that's what matters. Because you don't invest today for tomorrow. You invest today for where the market is going. When rates come down: financing improves capital comes back into the market and asset values tend to reprice—often quickly So the real question is: Are you positioning now… or waiting until it feels safe again? The problem with waiting is that the sales always disappear. What I am saying to you now is not new. I've been repeating this narrative over and over again over the last year or two. But I felt like I had to repeat it because this week's guest on Wealth Formula Podcast is saying the same thing. He's a guy who is nationally recognized for consistently being ahead of the curve on rates, housing, and the broader economy, while many others have been wrong. Barry Habib. He's the founder of MBS Highway, a multiple-time Crystal Ball Award winner, and the author of Money in the Streets—a book all about understanding cycles and building wealth by acting before the crowd. In this conversation, we break down: where interest rates may be headed why inflation data may be misleading and what this all means for real estate investors—especially in multifamily. If you want to understand where this cycle is going—and where the opportunity may be—this is a conversation you don't want to miss.

    47 min

  4. May 10

    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

  5. 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

  6. 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

  7. 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

  8. 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
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