The Forbes List has all these people in California, but California has the highest taxes.

0:00I looked at the the Forbes list, and all these people in the US were in California, but I was like, but California has the highest taxes. [music] How is this possible? They understand something about wealth creation that I don't understand. What is that? And that was when I dove deep and understood this level of wealth creation, or what I like to call now, wealth alchemy. Let's say that you live in a high-tax state, and you get taxed 50% for tax reasons. So, you're going to take home 1.5 million dollars after taxes. Now, you're really butt hurt about this cuz you're like, what the heck, government? You're taking half of what I made. But, if you added 12 million dollars to the business, and you spent this money to do that, what did you really increase? Well, you increased your personal net worth by 120 million dollars. If you had 120 million plus the 3 million that you made in cash flow, and you only had to pay 1.5 million on 123, now you're paying, I don't know, 1.5% in taxes, as long as you keep building it, and you don't want to cash it out. All of that growth is tax-free and compounds. When I realized this, it fundamentally shifted how I played the game.