In today's episode we are joined by our own SSAS Director, Paul Brooks. Make sure you tune in if you want to now how to utilise SSAS pensions to build wealth long before you retire.
In this week’s episode of WealthTalk, we hear from our own SSAS Director, Paul Brooks. Paul helps our members come up with strategies to make the most of their pensions on a daily basis. Tune in to this episode to learn more about how you can utilise SSAS Pensions long before retirement age in order to build your wealth.
Resources Mentioned In This Episode:
>> REGISTER FOR THE WEALTHBUILDERS ACADEMY WEBINAR
>> WT18: SSAS Pensions [The Director’s Pension]
>> WT66: 6 Tax-Saving Tips For Business Owners
>> WT75: 24 Different Ways A SSAS Pension Can Help Build Your Wealth
>> REGISTER HERE FOR FREE RESOURCES ACCESS
Unknown Speaker 0:01 The purpose of wealth talk is to educate, inform, and hopefully entertain you on the subject of building your wealth. Wealth builders recommends you should always take independent financial tax or legal advice before making any decisions around your finances.
Unknown Speaker 0:19
Welcome to Episode 106 of wealth talk. My name is Christian Rodwell, the membership director for wealth builders. And I'm joined today by our founder, Mr. Kevin Whelan. Hi, Kevin. Hello, Chris. Good to be with you again. And I think we've got an old friend. in our midst today. We have indeed, we have wealth builders, SAS director, Paul Brooks joining us again, long awaited return from Paul. So we'll be listening to Paul in a very short moment. But before we do that, we've been busy again this week, Kevin, haven't we working on the launch of the wealth builders Academy, which is coming up next month in June. So it's looking great, we're so excited about all of the new content that we will be adding, and we're hosting a webinar. So if you'd like to join us on Thursday, the third of June and have a look inside the wealth builders Academy, we'll be walking you through the nine step recurring revenue roadmap. And if your entrepreneurial employee or a business owner, and you want to build more wealth and become financially independent within five years, then do join us. And we will show you our holistic process to create multiple streams of income. Well, okay, sounds like you've nailed that one, Chris.
Unknown Speaker 1:32
Well, we better better let people know where they can join us. So head over to wealth builders co.uk, forward slash, Academy, launch all one word. And you can register your place on the webinar third of June starting at 7:30pm. Good, good thing to mention about the Rename Chris.
Unknown Speaker 1:51
Partly, I think it's because as we we share our complete obsession, about how to improve the financial plight of our members, you know, we're so completely
Unknown Speaker 2:04
immersed in this process to make people wealthy, we can see there's not just our own content. But there's some great external content is there's some great people that we've built a sort of big black book, no little black book of just outstanding people over the last decade or so. And so gradually, we'll be introducing an academy feel, which isn't all going to be the IP of myself and Chris. So there's going to be other people who will share some content over time, we'll be curating some just brilliant content. And you'll see,
Unknown Speaker 2:41
I suppose, a more rounded, continue the holistic theme, but we'll be we'll be doing our damnedest to bring huge value, or a reduced cost, or some extra thinking and dynamics into the wealth building process. So it becomes hopefully, just the best, impartial, holistic wealth building process there is out there, whichever country you're in. Yeah, yeah. And, you know, we, we put so much effort into the support that we offer, you know, we really do want to be there to hold your hand every step of the way. So it's a really easy follow up process. It reduces overwhelm. I know, Kevin, we've talked about in previous episodes, people just not knowing where to begin who to trust, there's so much information out there. So we really try and lay out the process so that anybody can follow that and see progress, you know, within the first 90 days and then within the first 12 months be turning wheels in generating recurring income. Yeah. And while we, we never preach get rich quick, we never do that. We think it's a three to seven year process. But actually word last week, didn't we, in the last episode, Paul Ambler 18 months, you know, so everybody goes into different pace. And we don't judge that. Because everybody starts with a different level of knowledge already different level of financial leverage they can bring to the table, and of course, a different level of time. And we know how difficult it is for you guys who are caught up in the tyranny of the routine of doing things in your day jobs, or in your businesses that you have to be there to keep the wheels turning inside your business. And we know that if you can find two hours a month, I mean, two hours a week, I apologize for that two hours a week correction two hours a week, then you can build wealth, and you can become financially independent. Everybody can find two hours a week if you can't, you know, then you're doomed. Anyway, what are we talking about today? Well, we've got Paul Burks, as we mentioned, and Paul is our SAS directors every day Paul is helping our members to come up with strategies to help them you know, really make the most of the pension
Unknown Speaker 5:00
Today, he's talking about three strategies that business owners can use to build more wealth, which is very much firmly focused on Step six of the roadmap, which is all about strategy. Yeah, and you know, pensions are not the sexy subjects, you know, that other assets can bring. But one of the things I like, is just this huge focus on being tax free. I mean, tax free havens does not sound good. I mean, think about it as a tax free trust, fund a sasses, whatever country you're in, there's, there's an option for this, which is to build money, tax free. So you're not going to pay tax on the income, you're not going to pay tax on the growth, you're not going to pay tax on inheritance. You're just building up a fantastic tax free pot. Why would you not do that? given every country is going to have to increase the level of overall taxes to pay for the cost of the pandemic and the protection of lives and the protection of livelihoods that countries work so hard to do. So as your tax bill goes up, it puts more pressure on keeping more money, and therefore learn tax free ways. And don't worry, it's called a pension or not. It's tax free. So you know, take take a few minutes, listen to what Paul has to say, we'll come back. And, you know, I suppose widen some of those lessons. So not not just about those people who are eligible for SAS pensions. By the way, if you want to know whether you're eligible for that, just what's the best way for people to reach out Chris, and I would say became a discovery call is the easiest way, have a chat with one of our team. So wealth builders.co.uk, forward slash discovery call? Yeah. And you're for eligibility tests. And we'll help you can decide whether SAS might be right for you. Now, we only can take those calls, if you're here registered in the UK, however, you know, book a call with somebody else, if you're living in another country, and there's something similar in the country you're in. So definitely look into that. Yeah. And if you're not sure what a SAS is, perhaps you're just tuning into wealth talk for the first time, then do head back and listen to one of our earlier episodes, where we talk about the different ways that SAS can help you. So Episode 75, and also, Episode 18, when we first talked about what a SAS pension is, so I'll link to those in today's show notes. Yeah, I mean, it's just nothing more than a pension fund aimed directly at entrepreneurs so that they can do entrepreneurial things. It's like being in complete control. And those of us who are pushing against the trend, you know, where we're going against the tide, we're trying to build our wealth, when everything tells us, you know, we should just be good employees or good business owners. We're bucking that trend, and a SAS boxer trend, it says, you know, you should take control of your own pension Do what you can do, which means learning more, of course, about what's possible, is, we often refer to a SAS small self administered scheme, as a hugely powerful vehicle. And like any very powerful vehicle, a very powerful tool, you need a bit of instruction to learn how it works. And Paul and his team were just outstanding, giving that instruction from videos, and guides, and face to face or screen to screen coaching and counseling. So, you know, check it out, it's definitely worthwhile. It's a big part of my own wealth building plan. And for everybody who's in our wealth builder program, almost all of them at some point will be seeking that eligibility criteria for their as their sasses and take control of their pensions and make their pensions a part of their future, not a sad reflection of the past. Okay, let's hand over to our SAS director Paul Brooks. Hey, Paul, good to have you back on wealth talk today. Hi, Chris. Thanks for having me. Yeah. Well, it's been a while actually, just having a look back. And back in July 2020. In in the thick of it right then, weren't we? And that we were talking about six tax saving tips for business owners. And if you have not listened to that episode, absolutely do make sure you go back and do so that was Episode 66. And I'll put a link to that in the show notes. But today, talking about more tips for business owners, Paul. So today we're talking about three SAS strategies that business owners can use to build more wealth. Yeah, absolutely. Yeah. Excited to get stuck into it again, and I promise it won't be another almost year before I'm on again. So
Unknown Speaker 9:47
Well, we know you're busy man. We're all busy each day helping our members now clients are wealth builders and lots of positive feedback. Don't worry, we've been shouting you out in many of the episodes with all the lovely reviews that we get on trustpilot
Unknown Speaker 10:00
And all the people that are so grateful for the help that you give them. Fantastic. So Paul, let's dive in. So SAS strategy, a number one that business owners can use to build more wealth. Was that one? Yeah, sure. So
Unknown Speaker 10:14
number one is using the money you've built up. And whether that's from contributions or whether that's from you know, amalgamating existing pensions into your SAS, and using it to support your business by buying your own business premises,
Unknown Speaker 10:34
from your self.
Unknown Speaker 10:38
So, this is for existing business owners who've already got a business premises, but they're looking to perhaps change the way they hold their assets, or make things slightly more tax efficient.
Unknown Speaker 10:56
And basically, what I'm talking about is using the money they've accumulated in their SaaS, as I say, to to buy their premises from their selves, actually exchange, the SAS, with the cash, buying the premises. So effectively switching the property and the money around, the business has now got an injection of capital into its bank account, it can use that money for anything it wants, go out and buy more equipment, or pie or more staff or invest in new systems, you know, all those important leverages that you teach so well in the academy, Chris.
Unknown Speaker 11:35
But you know, effectively, what you've done then is take that commercial premises, plunk it inside the tax free environment of the SAS. And that creates a few things, it creates a new stream of income coming into the SAS in the form of the rental income from the property, the business becomes the tenant, and the SAS becomes the landlord. So because there's a landlord and a tenant, the SAS has to charge a rental income, it charges a rental income to your business, that rental income is a tax deductible expense. So not only are you generating a new flow of income into your SAS, which is in a way, kind of like a new source of contribution,
Unknown Speaker 12:23
you're also being able to offset the cost of that rental income against corporation tax bill smart. Pretty cool, right? So just a very, very simple change, nothing hugely sophisticated, but but just simply by shifting the way your sass and your business own things can can really actually make quite a big difference to your tax position to the growth and the value of your SAS which of course, is is entirely free of tax and and is a tax free legacy when you're no longer here. You know, everyone's sick to death of hearing about COVID, I'm sure but I suppose what it highlighted is that, you know, businesses can be susceptible to volatility and you know, things that you can't
Unknown Speaker 13:09
see coming can have a massive impact on the business. And I suppose one of the added benefits to having the property in the SAS is that it's ring fenced. And that means that it's now no longer owned by the business. And therefore if the business were encountering a problem, and it owned a valuable asset, well, that asset could come under attack from creditors. Bankruptcy insolvency claims, if there's been a transaction and that asset has moved into now being ring fenced into the SAS, it's now no longer the property of the business. It's actually owned by the SAS. So you're almost safeguarding that, that asset for the future as well. What you know, it's just a natural part of that transaction. Hmm, that's pretty cool. Okay. worth pointing out very quickly, I guess to that, you know, if you're buying and selling an asset, you might well find that any gain on that property that's been made could be subject to tax. So obviously, something you need to to have a good chat with your accountant about if that was something that was that was of interest. Okay, that's, that's really cool. So that's strategy number one. Now what about if you don't own your own premises already? Well, then strategy number two is
Unknown Speaker 14:24
using the money you've built up in your SAS to see if you can go out and buy yourself a new premises.
Unknown Speaker 14:32
There are lots of benefits to owning your own premises and running from there and I suppose, Chief among which is you stop paying rent to somebody else and start paying it to your SAS instead.
Unknown Speaker 14:46
Most businesses need a premises to operate from right no matter what you do, and therefore the chances are, you're probably renting somewhere at the moment if you don't own that.
Unknown Speaker 15:00
That means you're paying good money out to somebody else and building their wealth. Well, by using your SAS to buy a business premises that you can then operate from, you're effectively switching from paying rent to somebody else to pay it into your own pension instead. Hmm. And with the, you know, the situation as it is, there may now be some great opportunities out there, because, you know, it's been a shift in the way people are working. So there may now be some really good premises available. Well, absolutely. And, you know, we always see, sadly, whenever there's a crisis, you know, it's that, especially something like, you know, COVID happening, it's, there's always opportunity and, and, you know, the commercial property world, I suspect, you know, was taken a bit of a battering in certain, certain sectors and lots of property now is perhaps undervalued creates a great opportunity for somebody else, but it's also the opportunity to, to, you know, see if you can find a new way of creating wealth by being inventive.
Unknown Speaker 16:05
And, you know, picking a property that, you know, fits the needs of business owners today, you know, far more people working more flexibly working from home shared office space is probably on the up, all those sorts of things, all those types of property are certainly possible, told within a sense. Absolutely. So that potentially leads us into strategy number three, which is being more creative with your thinking, and and what's that one pool? Well, I guess you'd call that spare capacity.
Unknown Speaker 16:37
So what I mean by that is, whether you own your own premises, and you strategy one and have your SaaS buy it from you, or you go out and you find a premises to buy,
Unknown Speaker 16:49
there's always a question mark, for me about whether there's the ability to use any of the spare capacity of the building to generate more wealth to leverage more income, if you like. And by that, I mean, seeing if you can take a piece of your property, the space in your building, whatever it might be, and creating something that could be rented out to another business, you know, I'm sure lots of businesses have got space they don't use in their building, you know, all sorts of different types of businesses and properties. But you know, most people I'm sure, have got space that they don't use so much, or perhaps they don't use at all, and it's effectively just, you know, dead space that they could potentially turn into a completely new stream of income. And, of course, by doing that, it's it's tax free injection of income into the SAS, they're boosting their pension wealth, and all the good things that come with that. And,
Unknown Speaker 17:48
you know, it's I suppose one of the fundamentals of what we teach Chris, isn't it, you know, is to try and create sustainable income. And if you've got an asset already leveraging it to try and you know, boost the income ease is a really powerful tool. Yeah, yeah. It's all about shifting your mindset thinking like an entrepreneur. And I can see such huge opportunities here. Because, as we've said, people are changing the way they work. But a lot of people, they don't necessarily want to work from home all the time, they just want a bit more flexibility. So I can see a lot of local businesses now maybe shops who've got space upstairs and a few extra rooms where there will be people locally, who would happily come in and hire a desk. And, you know, that could be reconfigured pretty easily without much costs, I imagine. Yeah, absolutely. Absolutely. Great. So there's are three strategies that business owners can use to build their wealth. And, Paul, for anyone perhaps, who's not even familiar with SAS, and, and certainly the process of wealth builders, you've been our SAS director for for many years now, Paul, so just explain to people you know, what is what is the process? How do we help people leverage their pensions? Yeah, sure, of course. I mean, basically, what what we do with business owners is, is take them through a clear step by step journey, which shows them the tools that a SAS has and the strategies that it can use and, and basically help them build a strategy based around their circumstances, their goals, there's no one size fits all in business, there's no one size fits all in SAS. So what we do is we work with people on a one on one basis, we give them one to one guidance and support, which which effectively means walking them through the journey of firstly creating their SAS and having it registered and we've got a really exciting, you know, unique proposition with some fantastic trusty administrator partners that we work with.
Unknown Speaker 19:53
To do that, we then help them think about the fuel that's going to go into their SAS and that can be exist
Unknown Speaker 20:00
In pensions, it can be contributions, it can be the importance of taking advice and guidance from other professionals, if phas and accountants to do that properly and safely. And then you know, the most exciting part, of course, is helping them understand how their SAS can be a fantastic tool to to leverage their wealth to grow their assets to create streams of income inside their SAS, but also to synergize with their business. So that sort of one on one, hand holding, if you like, if you want to call it that support guidance, you know, take them through the journey and support them on into, you know, making the shift from planning for deployment into actually then deploying them on and of course, that's a whole new exciting stage that, that we're a big part of, yeah. And if anyone listening now is interested just to find out a little bit more, have a chat with one of our team, they can head to wealth builders.co.uk forward slash discovery call. And just to find out a little bit more about that. Absolutely. We'd be delighted to chat for sure. Great, Paul, thanks so much for sharing with us today. Pleasure, Chris. Thanks again.
Unknown Speaker 21:09
Okay, we can dive into those points. Kevin in just a second. Before we do that, let me head to trustpilot and read out one of our recent reviews from the last seven days. So we have one here from Gary who says, a personal thanks to Christian and Kevin for the connection. The wealth builders community and the network it supports is understated but quietly powerful, driven by a desire by its members to connect, share, learn and grow. We find it reassuring as we rewire our lives away from our work life careers, to a more rewarding future, that there are normal people within the wealth builders community traveling a similar journey that share our wealth vision, man. Wow, I like that rewiring concept there. I've never had anybody frame it that way. It's very interesting, isn't it rewire my career. That's interesting, isn't it? I mean, often when you talk about property, there's in the seven episodes, the there's this one of the Epson in properties, fixing his net, fix the property. And often that fixing is something to do with, you know, changing utilities making more efficient, making more effective. That thing so often, rewiring will make, you know, building more efficient, I think it's very interesting idea from Gary, that he's rewiring his career and that his wife actually as well. So yeah, I like to get them right. Yeah, like,
Unknown Speaker 22:33
again, once a more rewarding future. And I think that's the key point, isn't it? It's so many people don't have a clear plan. And know when you get that clarity, you can see other people achieving what you want to achieve. They're not that far ahead. As Gary said, you know, normal people getting results, and it gives you that confidence that it's possible for you to Yeah, that's a good good one from Gary. So thank you, Gary. for that. When When did we last hear from Paul? Because it seems like an age ago? Well, it was a while ago, we did joke about that. It was back on episode 66, where we were talking about relevant life, again, a very tax efficient, you know, tool there, well, relevant life. Look, the terminology and wealth
Unknown Speaker 23:20
is kind of speaking a new language, you know, when you want to enjoy your journey, if you want to go to France or Italy or Spain, or excuse me or anywhere, it's always good to have a smattering of the language because it just lets people know that you're participating, you're learning and your you're willing to engage, you're taking the journey seriously. And wealth is no different. So SAS is a piece of language. Relevant life is a piece of language. It's inappropriate or badly chosen language, but it's kind of legal accuracy, not ease of understanding here. So relevant life, which is another powerful tool in the hands of a business owner kind of says this.
Unknown Speaker 24:05
If you know you're not wealthy yet, but you're planning to be one of the ways to make sure that your family would be wealthy, there'd be enough income flowing in so you could fuel the life that you planned for them is to have a life insurance policy. Now, not to worry about our demise, but to say, well, you are currently driving the assets. If you can't drive the assets anymore. Why not have life cover to essentially replace the assets you're trying to build? And if you value that, and I'm not for me to say whether you value life cover or not in your situation, but if you do, then why would you pay for that policy with after tax money? Why would you not pay with pre tax money? So the government chips in
Unknown Speaker 25:00
reduces the cost of providing a benefit for your family. And that's what relevant life is. So we were grateful for Paul, to share that with us. And definitely re listen to that if you're a business owner, it's only for business owners. It's not for employees, only for business owners. But the essential knock on effect, Chris, is it either pretty much Hobbs the cost of any live cover you choose to have. And we've got access to a team of experts who can help you kind of sort that out. Or, instead of having the cost, you can double the benefit. So instead of having a few 100,000, you could have several 100,000. And that just means in the worst case, should the worst happen, your family are protected, they will be financially independent. And the proceeds are all written into a trust, just like us acts as a trust, tax free haven remember, then those proceeds sold proceeds should a payment be made, will be paid into a trust fund completely free of tax. So it's just good stuff to learn. You know, I said earlier on that tax in keeping money tax is an all pervasive challenge, it's a break on our money, it reduces the amount of money we keep. And while we've got to pay our taxes, of course, but it makes sense to become tax savvy, and find ways to reduce the cost of our tax, and improve the retention of our money with which we plant those seeds. And we build more wealth. And this is just true. As a wealth builder, this is what we do is we find ways to reduce our costs, and ways to increase our revenue. And ways to actually enjoy the journey, Chris, which is just as important, isn't it? Because, you know, while the language can be sometimes Dorian Gray and opaque, what we're trying to bring is a sense of what this means to you, and to fire your life to give you some ideas that you can use to do something very seriously different about building wealth for you, for your family, and for future generations. And I'm very passionate about this subject. And if you're not a business owner, Kevin, obviously, you know, the strategy is for business owners. And if you're not a business owner, and you have a pension, you know, what are some of the first things that you could be doing just to try and, you know, make more out of what you already have? Yeah, that's a good question, Kristen. And we know that many of our wealth builder members are trying to break free of that time for money trap in employment, nothing wrong with employment, we know that it's a pathway to play on a team work for a team and build more knowledge and skill. But turning to the pension question, I would say the number one
Unknown Speaker 27:56
strategy that anybody should follow, when they've got a pension of any kind, particularly if it's invested in the tradition of the stock market where you have no control, all you're really doing is investing in the future profits are big companies. And you know, they have a history of providing long term reasonable returns five 6%, probably, in the long term, when you iron out booms and bumps and all that sort of thing. Trust me, I'm an economist, that's, you know, I can speak for these numbers. I'm a keen enthusiast of economic history. And while it's more volatile, than it's ever been before, that's reasonable to expect five 6% over the long term. Now, if you know that that's what you're going to get over the long term, back to the tax being a break on your money, the big break, are the cost that people overlook, I think your pensions is the charges they pay. And we're very passionate about trying to bring low cost charges, low, low, low cost, because ultimately, there is no evidence at all, no consistent evidence at all. I said again, none that says if you pay higher fees, you get a better return. There's no correlation to this at all. The opposite is true. The lower your fees, the bigger your return, because you're keeping more of your money. And one of the challenges with this is because the whole market of pensions is what we call an intermediated market. It's almost always somebody in the middle, providing a service. And that service historically is being provided in a higher touch environment. You know, when it was people talking to people, people talking to their broker, people choosing funds now with the use of technology. The cost of investing is being driven down, but unfortunately, that has not been transferred automatically to the lives of people holding pensions.
Unknown Speaker 30:00
Here in the UK, and I'm sure in other countries too. So I would just say drive your cost down use technology, there's plenty of places. And again, you can make contact with us have a discovery call,
Unknown Speaker 30:12
you know, we can show you how you can dramatically cut the costs of your funds. And the the big thing, Chris is a 1%, for the average pension owner in the UK, a 1% reduction in costs will increase the value of their pension on average by 50,000 pounds. So who would give 50,000 pounds to the financial services industry? When a little bit of research, or a discovery call with us, or anybody else that you trust and resonate with? could find you 50,000 pounds worth of extra money for the sake of a phone call? Now, Chris, I don't like trading time for money, you know that. But I'd spend an hour to save 50 grand when you Yeah, for sure. Right. And I'm not overestimating this. I'm not saying this perfect. And certainly not self serving Lee, there's plenty of places where you can go and shop around to reduce the costs of running your money, not just in your pension, but in your ices tax free wrapper, not a tax free haven. Because you know, you don't have tax relief. You do with pensions you don't with ISIS and similar things in different countries, there's always something tax free. But if you can build that tax free, that's great, but also reduce your charges. And this is a big part of the foundational elements Chris, in our program. When we talk about the debits, which is
Unknown Speaker 31:43
what stage on the roadmap is that again, remind me step two, depth to see somebody knows what they're doing. And it's a really important foundational element because it says I'm taking stock of what I've got. And taking stock means looking at returns, looking at charges, looking at what you can do to increase your return, reduce your charges, and enjoy the journey. And that's what it's all about these vehicles are or they're just there to get us somewhere. So enjoy that journey. Don't DIY, don't drift. It's no fun. In a whirlpool, it's no fun paddling
Unknown Speaker 32:23
entirely on your own. There's so much enjoyment, listen to that review from Gary, saying how fantastic it is to share and be part of a community. And I would encourage you to join us that's what we're about is trying to make this an enjoyable place to to help you build your wealth and create that financial independence that most people crave but so few reach. So we focused on pillar two, which is the pension pillar today. But of course, that's just one of Seven Pillars of wealth that you can use to generate recurring income streams. And we'll be showing you all of those pillars on the webinar on the third of June. So I'll just remind you again, if you'd like to join Kevin and myself, then head over to wealth builders.co.uk forward slash Academy launch. And we will walk you through all nine steps of the roadmap. So you get a really clear view of that process from a to b of a place from financial insecurity where you haven't got enough recurring income to cover your outgoings to a place of financial independence where you have more than enough income every month to do everything that you wish for you and your family. So yep, we're looking forward to that on Kevin. Yeah, so just just a few short weeks away now. Yeah. Good. Okay, then. So that wraps up today's episode. Thank you for listening as always, and we'll be back Same time, same place next week, Kevin. Until then, my friend so yeah.
Unknown Speaker 33:50
We hope you enjoy today's episode. Don't forget that we are constantly updating our resources inside the wealth builders membership site to help you create, build and protect your wealth. Head over to wealth builders.co.uk slash membership right now for free access. That's wealth builders.co.uk slash membership.