Unscripted: Life, Liberty, and the Pursuit of Entrepreneurship pdfdrive com

Early “retirement” and dream pursuit
3. 
Tax relief

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1. LIFETIME PASSIVE INCOME
While a business can spawn semi-passive income, a money system, regular
monthly income generated from investments, is 
numero uno
on the passivity
scale. Unless you count regular royalties from 
Seinfeld
syndication, the money
system has no match insofar as regularity and “hands-off” management. Since
you aren’t Costanza, purposed saving, while growing your business, needs to be
your go-to plan.
Recall our discussion on compound interest in Chapter 24. The mainstream
errantly uses compound interest to grow wealth, which makes it pathetically
slow, risky, and ineffective, akin to rearranging deck chairs on the Titanic.
Growing your net worth is a job assigned to your business. The end game is the
money system, which can be funded from two sources: (1) purposed saving from
business income; and (2) a business sale, known as a liquidation event.
Regardless of how the system is funded, large sums of money transfigure
compound interest from an impotent wealth creator to a potent passive-income
machine. Remember, 5 percent interest on $10 million is a whopping $46,000
per MONTH for life—and that’s without touching the principal! After fifty years,
your $10 million is still there! Can you and your family survive on $46,000 per
month? Or would you need to cancel HBO?
2. EARLY RETIREMENT AND DREAM PURSUIT
I technically “retired” in my thirties. By retired, I don’t mean I’m teeing off
every morning at 6:00 a.m. and drinking champagne by midafternoon.
Retirement can mean anything, but at its fundamental roots, it means that
working by force
is replaced with 
working by choice
. Because of this freedom, you
can do whatever you want without money's constraint or validation.
Remember, “doing what you hate” can beautifully lead to “doing what you
love.” If authoring a knitting book for MMA fighters is what you want to do, you
can. When money is strained from the equation, suddenly market wants and
needs become secondary. You just do it. My first two books exemplify this: I
wrote them from my heart and not my pocketbook. I don’t worry about
commercial viability or how palatable the concepts are for certain “special-
interest” groups. Yeah, I’m not expecting your financial planner—the one who
makes a 3 percent front load on your mutual-fund investment—to recommend
my books.

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Anyhow, what’s interesting about retirement and the money system fueling it
is this: In the ten years since retiring, my net worth hasn’t gone down; it’s gone
up. And that’s in a horrific low-interest environment! Sure, I still own multiple
businesses, but let’s be honest: I treat them more like hobbies and mostly avoid
“do what I hate” because I can afford to.
So the big question is what would you be doing if money wasn’t a concern?
For many entrepreneurs, the answer is nothing different. They would start
another business. Such is the addictive flavor of nourishing the world with value
—it nourishes your soul.

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