Economic Termites: Building The Foundation

We all understand what a termite is. Little bugs that eat away at structures from the inside. If they go unnoticed for too long it can seriously damage the foundation of your home.

Bob’s economic termites work the same way but the economic termites silently destroy wealth. If they go unnoticed for too long, without a plan to combat them, your wealth will get slowly eaten up over time. Today we go over an introduction to the economic termites and review some of the terminology we’ll be using in the next few episodes breaking down the individual termites. We cover what is income, K1 distributions, lifestyle expenses, and non-lifestyle income (discretionary income).

Most basic income equations always forget to include taxes. Everything we buy on a day to day basis is bought using post tax dollars and that needs to be accounted for in the planning method. Remember our last video! Income is taxable, cash flow is planable!!

The information in these videos is for informational and educational purposes only and should not be construed as tax, legal, or financial advice. Linked items may create a financial benefit for Terra Firma and its affiliates.

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