June 16, 2026 • 27 mins
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Two-time Emmy and Three-time NAACP Image Award-winning, television Executive Producer Rushion McDonald interviewed Michael Uadiale.
🔷 Interview Summary
Michael Uadiale, a seasoned CPA and master tax advisor with 25+ years of experience, explains how entrepreneurs can achieve financial freedom in 5–7 years through strategic tax planning and wealth systems.
The discussion centers on:
- Understanding the tax code as a wealth-building tool
- Why most people overpay taxes
- The difference between tax preparation and tax strategy
- His proprietary DECIDA (six-step) framework
- Practical tactics (e.g., hiring your kids, structuring income)
- Long-term wealth-building through planning and compounding
The interview reframes taxes from a burden into a strategic advantage.
🎯 Purpose of the Interview 1. Demystify taxes
- Reduce fear and confusion around the tax system
- Make tax concepts more accessible to everyday entrepreneurs
2. Shift mindset from avoidance → strategy
- Encourage people to engage with taxes, not avoid them
3. Teach wealth-building through tax efficiency
- Show how taxes are a major lever for:
- Increasing income retention
- Accelerating wealth creation
4. Promote proactive financial planning
- Emphasize year-round tax planning vs. last-minute filing
5. Provide actionable strategies
- Offer real, legal methods to:
- Reduce tax liability
- Build generational wealth
🔑 Key Takeaways 1. Wealth cannot be delegated
- You can outsource operations—but not your financial destiny
- Individuals must understand and engage in their own wealth strategy [MICHAEL UA...ALE iheart | Txt]
2. The tax code is a system of incentives
- It’s designed to encourage certain behaviors:
- Investing
- Real estate ownership
- Business creation
- Those who understand it benefit most
3. The wealthy don’t break rules—they learn them
- Rich individuals use legal structures to:
- Minimize taxes
- Maximize retention
- The same opportunities exist for everyone who learns the system
4. Most people overpay taxes due to ignorance
- About 80% of small business owners overpay [MICHAEL UA...ALE iheart | Txt]
- Causes:
- Fear of taxes
- Lack of education
- Reactive (not proactive) planning
5. Tax preparers vs. tax advisors
- Tax preparers = compliance (filing returns)
- Tax advisors = strategy (planning ahead)
- Real wealth comes from advisory relationships
6. Tax planning must be year-round
- Waiting until April is too late
- Planning should occur:
- Quarterly
- Before major financial decisions
7. Taxes directly impact your time and income
- Without planning, up to 3 out of every 8 working hours go to taxes
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Episode Transcript
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Speaker 1 (00:00):
My guess is a season CPA and Master tax advisor
with over twenty five years of industry experience. He has
developed a proven system that helps entrepreneurs achieve financial freedom
within five to seven years through strategic tax planning and
well built Please work with the Money Making Conversation masterclass.
Speaker 2 (00:22):
He's a master.
Speaker 1 (00:23):
Michael Wadi Ali, How you doing, Michael?
Speaker 3 (00:26):
I am great. Thank you so much for having me
on your show. It's society to be here.
Speaker 2 (00:30):
Let me just tell you straight.
Speaker 1 (00:31):
I got a degree in mathematics, a mining sociology, and
I am afraid to do my taxes. Okay, so I
just let you know. You're talking to a guy who's
super confident everywhere, Michael. But when it comes to the taxes,
I am intimidated.
Speaker 2 (00:45):
Why is that?
Speaker 3 (00:47):
Yeah, that's not a good thing. Let me put that
out there. It is that way just because that's the
framework most people have had over the years, which is
the tax code is supposedly very complex and it should
be left to just professionals to deal with. I do
(01:09):
disagree with that. The one thing I always say to
anybody who cares to listen is the fact that weld.
Speaker 2 (01:17):
Cannot be delegated Okay.
Speaker 3 (01:20):
You can delegate marketing, you can delegate human resource administration.
Speaker 2 (01:26):
There are lots of things in running a.
Speaker 3 (01:28):
Business that you can delegate, but when it comes to
you building wealth, it's always going to be your action
that matters the most. You can have advisors like me
and many other folks around you, So you got to
embrace tax coods. It doesn't require that you become an
expert like I. Okay, it does not require that. What
(01:51):
it does require is you need to have a good
tax advisor who is not just telling you what to do,
what is properly educating you in a street language so
that you can understand he's reasoning behind the recommendations that
he's giving to you.
Speaker 1 (02:12):
Because it's an education. You know, there are a lot
of things out there how you can save money. And
then could you read about you know, millionaires and billionaires
pay small taxes and they out there living a big life.
And you see a person an everyday employee and have
their check is going to tax. So explain how that
works there, Michael, you know, twenty five years in the
(02:33):
business CPA Maxter master tax expert talk to us.
Speaker 2 (02:39):
So let me let me say this.
Speaker 3 (02:42):
If you've ever read that book reached that product by
Robert Kiyosaki. Right, Roberts popularize what is known as the
cash flow quadrant. Basically, and I'm going to just put
this at here on the table for your listeners. The
tax code was not written for the little guys. Let's
(03:03):
let's just be real and honest to us, okay. The
tax code was designed by the very rich. They leverage
and influence what they wanted to become law.
Speaker 2 (03:19):
Okay.
Speaker 3 (03:20):
And the reality about the tax code is irrespective about
whether you are rich or or whichever side of the
cash flow quadrant you belong to, if you understand the
rules of the game, you can get the same benefit
that the big boys get. Now, the reality is most
(03:42):
folks they don't genuinely care to figure out what the
tax code is all about. So all they are doing
really is they're not getting into it. They're just whining
and griping about it, all right. So if you just
whine about it, then you're not going to get any
out of it, because the tax law is a set
(04:06):
of incentives that the government has put in place to
make us as citizens behave the way the government wants
us to behave.
Speaker 2 (04:15):
Okay.
Speaker 3 (04:16):
That's what the tax good is. And why do I
say that. I mean, the United States is one of
the greatest country in the world today in many respects.
I have the privilege of coming from a different part
of the world originally, and I can tell you that
there are lots of things that the US has been
very successful in doing.
Speaker 2 (04:36):
And one of the ways.
Speaker 3 (04:38):
The country has been very successful in achieving all of
that is leveraging the tax code. Because when you leverage
the tax cood, that drives money to that part of
the economy. Okay, for example, a lot of people rave
about real estate. You want to ask yourself, why are
there so much benefits tax benefits in real estate. The
(05:02):
reason for that is the government doesn't want to be
responsible for providing housing for citizens, right, So what they've
done is they've created the capital incentives to drive money
into that sector. So the idea is to always look
at what is the tax code saying today and be
(05:24):
able to use that code to your benefits. See the
rich people, they don't take their tax bill on this office.
They are very intentional in what they do. The tax
code is one of your fastest way of getting to
financial freedom and getting wealthy.
Speaker 1 (05:41):
If you know how to leverage it, Michael, before I
asked the next question, how do we get touttoed you?
Speaker 3 (05:48):
I have an email address that you can put on
your real taxes at SMITHSPA dot coms in terms as
in Apple X, as in Zero's ears in Edward as
in at SMIDCPA dot com SMEDCPA dot com. It's the
very easiest way to get me because there is two
(06:09):
folks who are just constantly monitoring that emails. Because I
get you, who's low people trying to get to who?
Speaker 1 (06:16):
You don't want to miss an episode of Money Making
Conversations Masterclass. So right now follow a subscribe to Money
Making Conversations.
Speaker 2 (06:24):
It's free and you can find.
Speaker 1 (06:25):
It on the iHeartRadio app, Spotify, Apple Podcasts, or wherever
you get your podcasts.
Speaker 2 (06:32):
Please don't go anywhere.
Speaker 1 (06:33):
We'll be right back with more Money Making Conversations Masterclass.
Welcome back to Money Making Conversations Masterclass with me with
Shan McDonald. You have a proven six step system they
have entrepreneurs. Entrepreneurs achieve financial freedom within five to seven years.
I'm not asking you to reveal the entire concept, but how
(06:54):
did you come up with this concept and why does
it work.
Speaker 3 (06:57):
We call it the design E E c ID. Okay,
it's a six step framework. This stands for Discover your
Wealth DNA. Basically, what that means to us as advisors,
if you come to us and you want to walk
with us, the first thing we need to figure out
(07:19):
to get you to make us know is how in
the world are you making money? Because in the life
that we live in, every dollar in the bank are
not equal when it comes to taxes.
Speaker 2 (07:32):
So we need to know.
Speaker 3 (07:33):
And understand how you're making money. So that's what Discover
your Wealth DNA stands for. And the next thing is
the E stands for we engineer tax freeze structures. See
how you do business drives in the long run, how
much of the money you make you are going to
(07:55):
be able to keep. Okay, there's one thing to make money.
There's a different thing on how to be able to
keep more of that money than Uncle Sam wants to take.
By the way, the Uncle Sam is not asking you
for more money than you deserve to give to them.
It's just that most people don't know how to do that.
So the EAST stands for engineer tax free structures. The
(08:19):
SEA stands for we tasue you how to capture your
growth and appreciation and freeze them here because if you
don't freeze wealth as your wet is green, what that
is going to do is someday when you transition out
of this world, your beneficiaries who inherit your wealth, Uncle
(08:42):
Sam is going to be waiting in the corner to
take forty five percent bite.
Speaker 2 (08:46):
Out of that estate. O care. So that's important.
Speaker 3 (08:51):
And then we do what we call we integrate very
advanced tax strategies because really these are what you were
saying about the very wedy's going all over the place.
Believe me, there's nothing they're doing that is illegal, all right,
otherwise they we all have been in jail. Now, the
this stands for we defend against tax erosion. And lastly
(09:13):
the E is we then also teach and put in
place how to empower the multi generational legacy that is
following you.
Speaker 2 (09:22):
That's the decide.
Speaker 3 (09:24):
I mean, we've done this over and over and over,
I'll say since twenty seventeen, twenty eighteen. And the answers
to why it works is because within those six steps
we are going to papsure whatever any entrepreneurs situation is
and be able to bring them to a happy place.
Speaker 2 (09:46):
So that's why we've decided to trademarket.
Speaker 3 (09:49):
The trademark application is with the Trademark Office and it
should be out in the couple of weeks.
Speaker 1 (09:56):
Congratulations on that and thank you for the breakdown or
the desired framework, as Michael's proven six step system help
entrepreneurs achieved by the actual freedom within five to seven years.
There are actually tricks of the trades of things you
can give advice on, like how to legally play your kids.
You know, I've heard that method. You don't have one child,
(10:20):
but there are some people have more than one child.
Their their tax coach a tax setup where you could
legally play your kids and then right off the deduction.
Speaker 2 (10:29):
Uh So the answer to that is absolutely yes. See,
these are exactly these are not these are no means,
these are nothing illegal, These are nothing, These are not
unethical things. These are not imral thinks. So, by the way,
anything any good tax advice or is telling you, you
got to check it against theory frameworks. Is it legal?
(10:51):
Is it ethical? Is it morrow?
Speaker 3 (10:53):
It has to meet those three tests all right now?
The question you just ask, honestly, that's is taxation one
O one in my fame, all right. Okay, hiring your kids,
that's not an advanced tax strategy, all right, that's not
some sof skateed thing.
Speaker 2 (11:14):
It's so basic.
Speaker 3 (11:16):
Everybody should be doing that if you have a business.
See the tax code allows for it, all right, The
tax code encourages it.
Speaker 2 (11:27):
See.
Speaker 3 (11:28):
Laws didn't just come to be. Laws are put within
the framework. Again, I said at the beginning of our
time together that look, these things were designed by the rich.
But you know what, you don't need to be rich
to implement them, all right.
Speaker 2 (11:44):
You just only need to know the rules of the game.
Speaker 3 (11:47):
How do you employ your kid? Oh my god, most
of us have home offices, all right. Your kid doesn't
necessarily need to be coming to your physical office location
to do the work that they need to do.
Speaker 2 (12:00):
All right. You can give them some things to do
at home.
Speaker 3 (12:03):
They can be the one taking out your trash from
your home office.
Speaker 2 (12:07):
They can be the one washing that car once a week.
Speaker 3 (12:10):
That is a business, big I mean in my office
we have taken seven ideas that kids can do in
their businesses of their parents. Okay, and then when you
do that, you are allowed to pay them up to
fifteen or sixteen thousand dollars, which when you look at that,
that child ends up not paying any taxes. You as
(12:33):
the business owner, get sixteen thousand dollars. Right, That is
off your taxable income. That is passing onto the kids. Now,
whether you like it or not, your minor kids, you're
already taking care of them anyway, instead of you just
bringing the money.
Speaker 2 (12:49):
Out of your pocket.
Speaker 3 (12:50):
Literally, the government is subsidizing your upbringing off your kids now.
But even better than that, I can tell you I
have lots of clients. I have one particular attorney. Every
time she meets with mess like, Michael, my kids are
going to be thanking you because all of them are
going to be millionaires before they become twenty one.
Speaker 2 (13:09):
Do you know why?
Speaker 3 (13:11):
Because since her kids were five and seven that she's
been our client. I have taught her how to implement
that strategy, and she's been putting all that money away
into an individual retirement account for those kids, okay.
Speaker 2 (13:28):
And I have taught her what to.
Speaker 3 (13:30):
Do and how to move those moneys from the IRA
accounts into a rough account when the time. So my
point is that whole issue of employing your minor kids
is a no brainer.
Speaker 2 (13:43):
Wow.
Speaker 1 (13:44):
Well, first of all, thank you, and I hope everybody
listening and watching took notes because Michael Wadiali knows what
he's doing. He's a master, you know, tax strategist and
a CP over twenty five years.
Speaker 2 (13:58):
Correct, Michael, that's correct.
Speaker 1 (14:00):
Let us talk about this. You know, I much about
business owners and taxes. You know, you know, you get
the basic taxes, employee taxes, you know, property taxes, all
use utilities. But there's a general tendency that owners of
business overpay in taxes.
Speaker 2 (14:16):
Why is that.
Speaker 3 (14:20):
Eighty close to eighty percent of small business owners.
Speaker 2 (14:24):
Over pay in taxes.
Speaker 3 (14:26):
The reason for that is there is this profound fear
for taxes, and so most people have come to have
this love hate relationship.
Speaker 2 (14:38):
And what they do is they completely avoid these subjects
of taxes all through the year, okay, and so they
only meet with some guy who do tax return when
it becomes very clear that April fifteen is around the corner. Okay.
You cannot operate like that and win the game of money.
(15:02):
You just cannot.
Speaker 3 (15:04):
Really, taxes must be one of the tripods upon which
your wealth is built, because if you can really plan
your taxes legally. That's why we say we help you
get to financial freedom five to seven years faster. And
that's a very conservative number really, because when you are
(15:24):
not doing tax planning, you literally put yourself into a
tax jail for like eighteen years.
Speaker 2 (15:30):
What do I mean by that? When you don't do
any tax planning.
Speaker 3 (15:34):
For every average of eight hours that you walk every day,
almost three hours out of that eight hours is given
to the tax guy.
Speaker 2 (15:42):
Wow, Now, yeah, I'm serious. Think about it.
Speaker 3 (15:45):
Because you have taty seven percent margin a tax bracket
at the federal level. If you're in the state that
has stayed taxes, you got another five to eight percent.
So if you are not doing any planning, three hours
of that eight hours it's going to the tax guy. Now,
if you slip that with the guy who is doing
tax planning and it's giving only less than one hour
(16:08):
a day to the tax guy, who do you think
we make more money and get faster to their goals
the guy who is doing tax planning.
Speaker 2 (16:14):
Most people.
Speaker 3 (16:16):
They they don't know they work with tax preparers.
Speaker 2 (16:22):
They are not working with tax advisors. They see difference.
Speaker 3 (16:26):
Okay, yeah, so a tax preparer is just the guy
who is just taking all of your documents at the
end of the year and feeding it into a software,
and the software spits out a number and tells you
this is what your tax situation looks like.
Speaker 2 (16:45):
That's compliance.
Speaker 3 (16:46):
And that's why to your question about eighty percent of
small business owners, they are overpaying in taxes. Now, if
you are doing planning, you are meeting with an advisor
at the very minimum, no less than once every quarter.
You are very intentional and how to be strategic on
(17:07):
all the money decisions.
Speaker 2 (17:08):
You are making.
Speaker 3 (17:09):
In fact, before you are taking any money decisions, you're
talking to your tax guy, okay, and he or she
is making you understand and know how to structure that
transaction in the way that we optimize your tax situation.
Speaker 2 (17:23):
Okay.
Speaker 3 (17:24):
In fact, when you are doing tax planning, you've already
designed the end game before the years starts, and so
as the year is going, all you are doing is
like you're driving. Sometimes your slow dance because you come
into a cove. Sometimes you speed off because the road
is straight and clear. So that's what tax plan is
all about. People are over paying taxes. They are over
(17:45):
donating money the government has not asked them for because
they have not put in the time to work with
good tax advisors.
Speaker 1 (17:54):
You don't want to miss an episode of Money Making
Conversations Masterclass. So right now, follow a subscribe the Money
Making Conversations. It's free and you can find it on
the iHeartRadio app, Spotify, Apple Podcasts, or wherever you get
your podcasts.
Speaker 2 (18:09):
Please don't go anywhere.
Speaker 1 (18:11):
We'll be right back with more Money Making Conversations Masterclass.
Welcome back to Money Making Conversations Master Class with me
Rashaan McDonald. Digital currency and bigcom mining. That's another area
where I will tell you, Michael, I've been I've interviewed
probably over one hundred people. I still don't get it.
(18:33):
Can you educate me and my listeners are simplified to
show us how that process works? You know, the digital
wallet and all these things.
Speaker 3 (18:44):
So, like I said, now I decide the first thing
is the DED which is discovery your wealth DNA. Right,
So in this case, you're saying, hey, sitting across the
table from me is a guy who is trying to
get to that place of financi your freedom right through
digital asset. Now, there are almost three components if I'm
(19:09):
to break that down. One is the tax component, which
of course is my forte every day. The tax component
here is to look at that line of business or
that line of how to make money and say, okay,
what are the tax benefits in the air? Okay, how
does this persing? How is the ires wanting to tax
(19:29):
this guy or this bootload of money? I have a
tax PAYI client. He makes on the average anywhere from
two to three million every year from his digital asset treading.
Speaker 2 (19:40):
Okay.
Speaker 3 (19:42):
Now, the kind of strategies of structures were put in
place from him is very different from the guy who
is a manufacturer. Okay, So that's why I said how
you make money is important. Now let me go to
the cross of what I think your question is just
trying to explain what is digital assets?
Speaker 2 (20:05):
All right? Okay, Now when you really look at it,
let's kind of zoom back to win.
Speaker 3 (20:14):
The United States currency was back by good. I mean,
most people don't realize this. It's only as recent as
nineteen seventy two that that requirement was removed by the
then president. In the past before then, every time that
(20:36):
is in circulation, there is a corresponding amount of backing
or collateral, if you will want to put it that way, right,
that is sitting in a good deposit boat. Now, with
the taking away of that requirement, what has happened is
that many governments are not free to literally print money.
Speaker 2 (21:01):
Literally.
Speaker 3 (21:02):
I mean, so if you look at what happened during
the COVID era, we don't a lot of money into circulation,
and that was what created our inflation. Now, why is
this whole digital currency, Bitcoin.
Speaker 2 (21:16):
And all of that coming into place?
Speaker 3 (21:19):
All what I just explained about the big print, It
has put the next generation in the place where they
are a little bit neighbors.
Speaker 2 (21:27):
They consign that there is a whole lot of thing. Yeah.
Speaker 3 (21:32):
Right, So there's just this consign that all of this
is a mirrd and so that is how digital assets
or currency began to gain popularity. Now what is digital
currency really? It's really science. I mean it's awesome. I
personally pregate it may not be in our time, but
I personally pregnate we are going to get to an
(21:54):
era where digital assets will be the main currency of
doing business every day because it's a system that does
what we call a double entry check, Meaning if I
send something out, science puts us in a place where
the person receiving it and the person is sending it
(22:16):
out it matches at the same time. Now I'm trying
to give you high level what all of this bitcoin
digital assets are all about. It's just it's just a
it's just a blockchain, all right. A blockchain tells you, Okay,
if this thing has a side, it has a face.
And so that's why there is the belief that it's
(22:37):
going to supersede all of the fiat currency. Fiat currency
being this is money. This is the United States dollar,
this is the euro, this is and all of this
are just getting their value by reason of what the
government says. It is, not because there's something backing it.
But it's different when you are looking at the need
(23:00):
to assets. Digital assets are back back. It's it's following
a strong fundamental supply and demand logistics and because of that,
it's only a matter of time it will definitely surpass
the fiat currency. Okay, I don't know if that helps
anybody listening. I know everybody is different in terms of
(23:23):
how they embrace any new concept, but I personally, I'm
a fan believer that it's only a matter of time
it will become what it is.
Speaker 1 (23:30):
Here's a quack question that should take quick My daughter
when you graduated. We gave her my wife and I
gave her graduation gaire financial guilt, and we to look
put this in a compounded interest. I want to make
sure I'm giving a good advice. Okay, compounded interest account.
Was that the right advice to give her or she
we have steered her into other options?
Speaker 2 (23:51):
You know?
Speaker 1 (23:51):
And by the way she's listening.
Speaker 2 (23:56):
That was a good advice. But this is my advice.
Speaker 3 (23:59):
You you go, you should have done that even when
she was three four five, because what is well wealth
really is compounding interests less taxes.
Speaker 1 (24:15):
Okay, Okay, that's.
Speaker 2 (24:16):
What wealth is.
Speaker 3 (24:17):
So really you kind of lost anywhere from eighteen to
twenty years of that same money compounding before you give
it to her, So I know you definitely will know this.
I mean a lot of people talk about the Rocky
Feller method. I mean, what's all of the Rector Feller method.
All they've done is they figured out how to kind
of continue to pass well on from generation to generation
(24:42):
tax free, okay, and then they leverage good insurance products
in the process, which is tax free, to be able
to make sure that worth.
Speaker 2 (24:51):
Is passing on.
Speaker 3 (24:52):
I mean, what you did, if I'm to look at
it on the spectrum of what is wrong and what
is extremely great.
Speaker 2 (24:59):
What you did for your daughter was in the middle
of that spectrum, okay, meaning you gave her a gift
and you said, look, put this money away. Now what
she can do for herself is allow that money to
compound and not be eating up by taxes.
Speaker 1 (25:15):
Okay.
Speaker 3 (25:16):
Now, at the point where she want to transition it
at from whatever that instrument is, that's where the good
tax advice or she'll be talking to her and say, okay, yes,
what we need to do so that when you transition
this money at from this character to this next one,
we freeze or we do some discounting of the value
(25:36):
so that about sixty to seventy percent of that group
is shielded from taxes.
Speaker 1 (25:42):
I'll tell you you know, we've been going in circles
trying to get your most showed because you're very busy man,
and I appreciate it. But the knowledge you presented to
me on the show today, you know, people pay for
people pay for and they give it for free. On
my podcast, Money Making Conversations, Maclaed. As we exit more time,
give us your email address, Michael.
Speaker 3 (26:03):
My email address is taxs t A xs in Zero's
ees and Edward s as in some at Smith CPA.
That is spelled s I S in Sam and I
said Mary double e as in ed or ds in
David see us in Charlie ps in as in Apple
(26:23):
dot com.
Speaker 1 (26:24):
Brother, fantastic. I like your demeanor and I love your confidence.
That's key when you're dealing with people's money. Man, like
you say, you, your your your legacy of consistency, and
the fact that you like you said, man, your your
talents and your demeanors are incredible. Thank you for coming on.
Money Making Comments is a masterclass and we will talk soon.
Speaker 2 (26:46):
My brother, I appreciate it absolutely. Thank you so much.
Speaker 1 (26:49):
Now, if you want to be a guest on my show,
money Making Conversation Masterclass, please visit our website, Moneymaking Conversation
dot com and click to be a guest button. If
you're a small business owner, entrepreneur, motivational speaker, influencer, a nonprofit,
I want you on my show.
My guess is a season CPA and Master tax advisor
with over twenty five years of industry experience. He has
developed a proven system that helps entrepreneurs achieve financial freedom
within five to seven years through strategic tax planning and
well built Please work with the Money Making Conversation masterclass.
Speaker 2 (00:22):
He's a master.
Speaker 1 (00:23):
Michael Wadi Ali, How you doing, Michael?
Speaker 3 (00:26):
I am great. Thank you so much for having me
on your show. It's society to be here.
Speaker 2 (00:30):
Let me just tell you straight.
Speaker 1 (00:31):
I got a degree in mathematics, a mining sociology, and
I am afraid to do my taxes. Okay, so I
just let you know. You're talking to a guy who's
super confident everywhere, Michael. But when it comes to the taxes,
I am intimidated.
Speaker 2 (00:45):
Why is that?
Speaker 3 (00:47):
Yeah, that's not a good thing. Let me put that
out there. It is that way just because that's the
framework most people have had over the years, which is
the tax code is supposedly very complex and it should
be left to just professionals to deal with. I do
(01:09):
disagree with that. The one thing I always say to
anybody who cares to listen is the fact that weld.
Speaker 2 (01:17):
Cannot be delegated Okay.
Speaker 3 (01:20):
You can delegate marketing, you can delegate human resource administration.
Speaker 2 (01:26):
There are lots of things in running a.
Speaker 3 (01:28):
Business that you can delegate, but when it comes to
you building wealth, it's always going to be your action
that matters the most. You can have advisors like me
and many other folks around you, So you got to
embrace tax coods. It doesn't require that you become an
expert like I. Okay, it does not require that. What
(01:51):
it does require is you need to have a good
tax advisor who is not just telling you what to do,
what is properly educating you in a street language so
that you can understand he's reasoning behind the recommendations that
he's giving to you.
Speaker 1 (02:12):
Because it's an education. You know, there are a lot
of things out there how you can save money. And
then could you read about you know, millionaires and billionaires
pay small taxes and they out there living a big life.
And you see a person an everyday employee and have
their check is going to tax. So explain how that
works there, Michael, you know, twenty five years in the
(02:33):
business CPA Maxter master tax expert talk to us.
Speaker 2 (02:39):
So let me let me say this.
Speaker 3 (02:42):
If you've ever read that book reached that product by
Robert Kiyosaki. Right, Roberts popularize what is known as the
cash flow quadrant. Basically, and I'm going to just put
this at here on the table for your listeners. The
tax code was not written for the little guys. Let's
(03:03):
let's just be real and honest to us, okay. The
tax code was designed by the very rich. They leverage
and influence what they wanted to become law.
Speaker 2 (03:19):
Okay.
Speaker 3 (03:20):
And the reality about the tax code is irrespective about
whether you are rich or or whichever side of the
cash flow quadrant you belong to, if you understand the
rules of the game, you can get the same benefit
that the big boys get. Now, the reality is most
(03:42):
folks they don't genuinely care to figure out what the
tax code is all about. So all they are doing
really is they're not getting into it. They're just whining
and griping about it, all right. So if you just
whine about it, then you're not going to get any
out of it, because the tax law is a set
(04:06):
of incentives that the government has put in place to
make us as citizens behave the way the government wants
us to behave.
Speaker 2 (04:15):
Okay.
Speaker 3 (04:16):
That's what the tax good is. And why do I
say that. I mean, the United States is one of
the greatest country in the world today in many respects.
I have the privilege of coming from a different part
of the world originally, and I can tell you that
there are lots of things that the US has been
very successful in doing.
Speaker 2 (04:36):
And one of the ways.
Speaker 3 (04:38):
The country has been very successful in achieving all of
that is leveraging the tax code. Because when you leverage
the tax cood, that drives money to that part of
the economy. Okay, for example, a lot of people rave
about real estate. You want to ask yourself, why are
there so much benefits tax benefits in real estate. The
(05:02):
reason for that is the government doesn't want to be
responsible for providing housing for citizens, right, So what they've
done is they've created the capital incentives to drive money
into that sector. So the idea is to always look
at what is the tax code saying today and be
(05:24):
able to use that code to your benefits. See the
rich people, they don't take their tax bill on this office.
They are very intentional in what they do. The tax
code is one of your fastest way of getting to
financial freedom and getting wealthy.
Speaker 1 (05:41):
If you know how to leverage it, Michael, before I
asked the next question, how do we get touttoed you?
Speaker 3 (05:48):
I have an email address that you can put on
your real taxes at SMITHSPA dot coms in terms as
in Apple X, as in Zero's ears in Edward as
in at SMIDCPA dot com SMEDCPA dot com. It's the
very easiest way to get me because there is two
(06:09):
folks who are just constantly monitoring that emails. Because I
get you, who's low people trying to get to who?
Speaker 1 (06:16):
You don't want to miss an episode of Money Making
Conversations Masterclass. So right now follow a subscribe to Money
Making Conversations.
Speaker 2 (06:24):
It's free and you can find.
Speaker 1 (06:25):
It on the iHeartRadio app, Spotify, Apple Podcasts, or wherever
you get your podcasts.
Speaker 2 (06:32):
Please don't go anywhere.
Speaker 1 (06:33):
We'll be right back with more Money Making Conversations Masterclass.
Welcome back to Money Making Conversations Masterclass with me with
Shan McDonald. You have a proven six step system they
have entrepreneurs. Entrepreneurs achieve financial freedom within five to seven years.
I'm not asking you to reveal the entire concept, but how
(06:54):
did you come up with this concept and why does
it work.
Speaker 3 (06:57):
We call it the design E E c ID. Okay,
it's a six step framework. This stands for Discover your
Wealth DNA. Basically, what that means to us as advisors,
if you come to us and you want to walk
with us, the first thing we need to figure out
(07:19):
to get you to make us know is how in
the world are you making money? Because in the life
that we live in, every dollar in the bank are
not equal when it comes to taxes.
Speaker 2 (07:32):
So we need to know.
Speaker 3 (07:33):
And understand how you're making money. So that's what Discover
your Wealth DNA stands for. And the next thing is
the E stands for we engineer tax freeze structures. See
how you do business drives in the long run, how
much of the money you make you are going to
(07:55):
be able to keep. Okay, there's one thing to make money.
There's a different thing on how to be able to
keep more of that money than Uncle Sam wants to take.
By the way, the Uncle Sam is not asking you
for more money than you deserve to give to them.
It's just that most people don't know how to do that.
So the EAST stands for engineer tax free structures. The
(08:19):
SEA stands for we tasue you how to capture your
growth and appreciation and freeze them here because if you
don't freeze wealth as your wet is green, what that
is going to do is someday when you transition out
of this world, your beneficiaries who inherit your wealth, Uncle
(08:42):
Sam is going to be waiting in the corner to
take forty five percent bite.
Speaker 2 (08:46):
Out of that estate. O care. So that's important.
Speaker 3 (08:51):
And then we do what we call we integrate very
advanced tax strategies because really these are what you were
saying about the very wedy's going all over the place.
Believe me, there's nothing they're doing that is illegal, all right,
otherwise they we all have been in jail. Now, the
this stands for we defend against tax erosion. And lastly
(09:13):
the E is we then also teach and put in
place how to empower the multi generational legacy that is
following you.
Speaker 2 (09:22):
That's the decide.
Speaker 3 (09:24):
I mean, we've done this over and over and over,
I'll say since twenty seventeen, twenty eighteen. And the answers
to why it works is because within those six steps
we are going to papsure whatever any entrepreneurs situation is
and be able to bring them to a happy place.
Speaker 2 (09:46):
So that's why we've decided to trademarket.
Speaker 3 (09:49):
The trademark application is with the Trademark Office and it
should be out in the couple of weeks.
Speaker 1 (09:56):
Congratulations on that and thank you for the breakdown or
the desired framework, as Michael's proven six step system help
entrepreneurs achieved by the actual freedom within five to seven years.
There are actually tricks of the trades of things you
can give advice on, like how to legally play your kids.
You know, I've heard that method. You don't have one child,
(10:20):
but there are some people have more than one child.
Their their tax coach a tax setup where you could
legally play your kids and then right off the deduction.
Speaker 2 (10:29):
Uh So the answer to that is absolutely yes. See,
these are exactly these are not these are no means,
these are nothing illegal, These are nothing, These are not
unethical things. These are not imral thinks. So, by the way,
anything any good tax advice or is telling you, you
got to check it against theory frameworks. Is it legal?
(10:51):
Is it ethical? Is it morrow?
Speaker 3 (10:53):
It has to meet those three tests all right now?
The question you just ask, honestly, that's is taxation one
O one in my fame, all right. Okay, hiring your kids,
that's not an advanced tax strategy, all right, that's not
some sof skateed thing.
Speaker 2 (11:14):
It's so basic.
Speaker 3 (11:16):
Everybody should be doing that if you have a business.
See the tax code allows for it, all right, The
tax code encourages it.
Speaker 2 (11:27):
See.
Speaker 3 (11:28):
Laws didn't just come to be. Laws are put within
the framework. Again, I said at the beginning of our
time together that look, these things were designed by the rich.
But you know what, you don't need to be rich
to implement them, all right.
Speaker 2 (11:44):
You just only need to know the rules of the game.
Speaker 3 (11:47):
How do you employ your kid? Oh my god, most
of us have home offices, all right. Your kid doesn't
necessarily need to be coming to your physical office location
to do the work that they need to do.
Speaker 2 (12:00):
All right. You can give them some things to do
at home.
Speaker 3 (12:03):
They can be the one taking out your trash from
your home office.
Speaker 2 (12:07):
They can be the one washing that car once a week.
Speaker 3 (12:10):
That is a business, big I mean in my office
we have taken seven ideas that kids can do in
their businesses of their parents. Okay, and then when you
do that, you are allowed to pay them up to
fifteen or sixteen thousand dollars, which when you look at that,
that child ends up not paying any taxes. You as
(12:33):
the business owner, get sixteen thousand dollars. Right, That is
off your taxable income. That is passing onto the kids. Now,
whether you like it or not, your minor kids, you're
already taking care of them anyway, instead of you just
bringing the money.
Speaker 2 (12:49):
Out of your pocket.
Speaker 3 (12:50):
Literally, the government is subsidizing your upbringing off your kids now.
But even better than that, I can tell you I
have lots of clients. I have one particular attorney. Every
time she meets with mess like, Michael, my kids are
going to be thanking you because all of them are
going to be millionaires before they become twenty one.
Speaker 2 (13:09):
Do you know why?
Speaker 3 (13:11):
Because since her kids were five and seven that she's
been our client. I have taught her how to implement
that strategy, and she's been putting all that money away
into an individual retirement account for those kids, okay.
Speaker 2 (13:28):
And I have taught her what to.
Speaker 3 (13:30):
Do and how to move those moneys from the IRA
accounts into a rough account when the time. So my
point is that whole issue of employing your minor kids
is a no brainer.
Speaker 2 (13:43):
Wow.
Speaker 1 (13:44):
Well, first of all, thank you, and I hope everybody
listening and watching took notes because Michael Wadiali knows what
he's doing. He's a master, you know, tax strategist and
a CP over twenty five years.
Speaker 2 (13:58):
Correct, Michael, that's correct.
Speaker 1 (14:00):
Let us talk about this. You know, I much about
business owners and taxes. You know, you know, you get
the basic taxes, employee taxes, you know, property taxes, all
use utilities. But there's a general tendency that owners of
business overpay in taxes.
Speaker 2 (14:16):
Why is that.
Speaker 3 (14:20):
Eighty close to eighty percent of small business owners.
Speaker 2 (14:24):
Over pay in taxes.
Speaker 3 (14:26):
The reason for that is there is this profound fear
for taxes, and so most people have come to have
this love hate relationship.
Speaker 2 (14:38):
And what they do is they completely avoid these subjects
of taxes all through the year, okay, and so they
only meet with some guy who do tax return when
it becomes very clear that April fifteen is around the corner. Okay.
You cannot operate like that and win the game of money.
(15:02):
You just cannot.
Speaker 3 (15:04):
Really, taxes must be one of the tripods upon which
your wealth is built, because if you can really plan
your taxes legally. That's why we say we help you
get to financial freedom five to seven years faster. And
that's a very conservative number really, because when you are
(15:24):
not doing tax planning, you literally put yourself into a
tax jail for like eighteen years.
Speaker 2 (15:30):
What do I mean by that? When you don't do
any tax planning.
Speaker 3 (15:34):
For every average of eight hours that you walk every day,
almost three hours out of that eight hours is given
to the tax guy.
Speaker 2 (15:42):
Wow, Now, yeah, I'm serious. Think about it.
Speaker 3 (15:45):
Because you have taty seven percent margin a tax bracket
at the federal level. If you're in the state that
has stayed taxes, you got another five to eight percent.
So if you are not doing any planning, three hours
of that eight hours it's going to the tax guy. Now,
if you slip that with the guy who is doing
tax planning and it's giving only less than one hour
(16:08):
a day to the tax guy, who do you think
we make more money and get faster to their goals
the guy who is doing tax planning.
Speaker 2 (16:14):
Most people.
Speaker 3 (16:16):
They they don't know they work with tax preparers.
Speaker 2 (16:22):
They are not working with tax advisors. They see difference.
Speaker 3 (16:26):
Okay, yeah, so a tax preparer is just the guy
who is just taking all of your documents at the
end of the year and feeding it into a software,
and the software spits out a number and tells you
this is what your tax situation looks like.
Speaker 2 (16:45):
That's compliance.
Speaker 3 (16:46):
And that's why to your question about eighty percent of
small business owners, they are overpaying in taxes. Now, if
you are doing planning, you are meeting with an advisor
at the very minimum, no less than once every quarter.
You are very intentional and how to be strategic on
(17:07):
all the money decisions.
Speaker 2 (17:08):
You are making.
Speaker 3 (17:09):
In fact, before you are taking any money decisions, you're
talking to your tax guy, okay, and he or she
is making you understand and know how to structure that
transaction in the way that we optimize your tax situation.
Speaker 2 (17:23):
Okay.
Speaker 3 (17:24):
In fact, when you are doing tax planning, you've already
designed the end game before the years starts, and so
as the year is going, all you are doing is
like you're driving. Sometimes your slow dance because you come
into a cove. Sometimes you speed off because the road
is straight and clear. So that's what tax plan is
all about. People are over paying taxes. They are over
(17:45):
donating money the government has not asked them for because
they have not put in the time to work with
good tax advisors.
Speaker 1 (17:54):
You don't want to miss an episode of Money Making
Conversations Masterclass. So right now, follow a subscribe the Money
Making Conversations. It's free and you can find it on
the iHeartRadio app, Spotify, Apple Podcasts, or wherever you get
your podcasts.
Speaker 2 (18:09):
Please don't go anywhere.
Speaker 1 (18:11):
We'll be right back with more Money Making Conversations Masterclass.
Welcome back to Money Making Conversations Master Class with me
Rashaan McDonald. Digital currency and bigcom mining. That's another area
where I will tell you, Michael, I've been I've interviewed
probably over one hundred people. I still don't get it.
(18:33):
Can you educate me and my listeners are simplified to
show us how that process works? You know, the digital
wallet and all these things.
Speaker 3 (18:44):
So, like I said, now I decide the first thing
is the DED which is discovery your wealth DNA. Right,
So in this case, you're saying, hey, sitting across the
table from me is a guy who is trying to
get to that place of financi your freedom right through
digital asset. Now, there are almost three components if I'm
(19:09):
to break that down. One is the tax component, which
of course is my forte every day. The tax component
here is to look at that line of business or
that line of how to make money and say, okay,
what are the tax benefits in the air? Okay, how
does this persing? How is the ires wanting to tax
(19:29):
this guy or this bootload of money? I have a
tax PAYI client. He makes on the average anywhere from
two to three million every year from his digital asset treading.
Speaker 2 (19:40):
Okay.
Speaker 3 (19:42):
Now, the kind of strategies of structures were put in
place from him is very different from the guy who
is a manufacturer. Okay, So that's why I said how
you make money is important. Now let me go to
the cross of what I think your question is just
trying to explain what is digital assets?
Speaker 2 (20:05):
All right? Okay, Now when you really look at it,
let's kind of zoom back to win.
Speaker 3 (20:14):
The United States currency was back by good. I mean,
most people don't realize this. It's only as recent as
nineteen seventy two that that requirement was removed by the
then president. In the past before then, every time that
(20:36):
is in circulation, there is a corresponding amount of backing
or collateral, if you will want to put it that way, right,
that is sitting in a good deposit boat. Now, with
the taking away of that requirement, what has happened is
that many governments are not free to literally print money.
Speaker 2 (21:01):
Literally.
Speaker 3 (21:02):
I mean, so if you look at what happened during
the COVID era, we don't a lot of money into circulation,
and that was what created our inflation. Now, why is
this whole digital currency, Bitcoin.
Speaker 2 (21:16):
And all of that coming into place?
Speaker 3 (21:19):
All what I just explained about the big print, It
has put the next generation in the place where they
are a little bit neighbors.
Speaker 2 (21:27):
They consign that there is a whole lot of thing. Yeah.
Speaker 3 (21:32):
Right, So there's just this consign that all of this
is a mirrd and so that is how digital assets
or currency began to gain popularity. Now what is digital
currency really? It's really science. I mean it's awesome. I
personally pregate it may not be in our time, but
I personally pregnate we are going to get to an
(21:54):
era where digital assets will be the main currency of
doing business every day because it's a system that does
what we call a double entry check, Meaning if I
send something out, science puts us in a place where
the person receiving it and the person is sending it
(22:16):
out it matches at the same time. Now I'm trying
to give you high level what all of this bitcoin
digital assets are all about. It's just it's just a
it's just a blockchain, all right. A blockchain tells you, Okay,
if this thing has a side, it has a face.
And so that's why there is the belief that it's
(22:37):
going to supersede all of the fiat currency. Fiat currency
being this is money. This is the United States dollar,
this is the euro, this is and all of this
are just getting their value by reason of what the
government says. It is, not because there's something backing it.
But it's different when you are looking at the need
(23:00):
to assets. Digital assets are back back. It's it's following
a strong fundamental supply and demand logistics and because of that,
it's only a matter of time it will definitely surpass
the fiat currency. Okay, I don't know if that helps
anybody listening. I know everybody is different in terms of
(23:23):
how they embrace any new concept, but I personally, I'm
a fan believer that it's only a matter of time
it will become what it is.
Speaker 1 (23:30):
Here's a quack question that should take quick My daughter
when you graduated. We gave her my wife and I
gave her graduation gaire financial guilt, and we to look
put this in a compounded interest. I want to make
sure I'm giving a good advice. Okay, compounded interest account.
Was that the right advice to give her or she
we have steered her into other options?
Speaker 2 (23:51):
You know?
Speaker 1 (23:51):
And by the way she's listening.
Speaker 2 (23:56):
That was a good advice. But this is my advice.
Speaker 3 (23:59):
You you go, you should have done that even when
she was three four five, because what is well wealth
really is compounding interests less taxes.
Speaker 1 (24:15):
Okay, Okay, that's.
Speaker 2 (24:16):
What wealth is.
Speaker 3 (24:17):
So really you kind of lost anywhere from eighteen to
twenty years of that same money compounding before you give
it to her, So I know you definitely will know this.
I mean a lot of people talk about the Rocky
Feller method. I mean, what's all of the Rector Feller method.
All they've done is they figured out how to kind
of continue to pass well on from generation to generation
(24:42):
tax free, okay, and then they leverage good insurance products
in the process, which is tax free, to be able
to make sure that worth.
Speaker 2 (24:51):
Is passing on.
Speaker 3 (24:52):
I mean, what you did, if I'm to look at
it on the spectrum of what is wrong and what
is extremely great.
Speaker 2 (24:59):
What you did for your daughter was in the middle
of that spectrum, okay, meaning you gave her a gift
and you said, look, put this money away. Now what
she can do for herself is allow that money to
compound and not be eating up by taxes.
Speaker 1 (25:15):
Okay.
Speaker 3 (25:16):
Now, at the point where she want to transition it
at from whatever that instrument is, that's where the good
tax advice or she'll be talking to her and say, okay, yes,
what we need to do so that when you transition
this money at from this character to this next one,
we freeze or we do some discounting of the value
(25:36):
so that about sixty to seventy percent of that group
is shielded from taxes.
Speaker 1 (25:42):
I'll tell you you know, we've been going in circles
trying to get your most showed because you're very busy man,
and I appreciate it. But the knowledge you presented to
me on the show today, you know, people pay for
people pay for and they give it for free. On
my podcast, Money Making Conversations, Maclaed. As we exit more time,
give us your email address, Michael.
Speaker 3 (26:03):
My email address is taxs t A xs in Zero's
ees and Edward s as in some at Smith CPA.
That is spelled s I S in Sam and I
said Mary double e as in ed or ds in
David see us in Charlie ps in as in Apple
(26:23):
dot com.
Speaker 1 (26:24):
Brother, fantastic. I like your demeanor and I love your confidence.
That's key when you're dealing with people's money. Man, like
you say, you, your your your legacy of consistency, and
the fact that you like you said, man, your your
talents and your demeanors are incredible. Thank you for coming on.
Money Making Comments is a masterclass and we will talk soon.
Speaker 2 (26:46):
My brother, I appreciate it absolutely. Thank you so much.
Speaker 1 (26:49):
Now, if you want to be a guest on my show,
money Making Conversation Masterclass, please visit our website, Moneymaking Conversation
dot com and click to be a guest button. If
you're a small business owner, entrepreneur, motivational speaker, influencer, a nonprofit,
I want you on my show.
Host
Rushion McDonald
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