CREATING YOUR
RAT RACE
ESCAPE PLAN
VIRTUAL INVESTOR TRAINING
OVERVIEW
What you will learn and achieve
❖ How to evaluate your current situation
❖ Steps to create a plan to escape the rat race
❖ Ways to copy billionaire investors that could
accelerate success
Event guidelines
❖ Plan for a full day of training
❖ Turn off phones and other distractions
How to prepare for this training
❖ Print this workbook and have a pen/pencil ready
❖ Plan for a working lunch, so have something
prepared and ready
LETTER FROM ANDY TANNER
Welcome to this
full-day workshop!
I’m so excited to help you
learn and understand these
investing concepts that are
vital to growing your wealth
and investing
income.
For many people, this
information will be new.
And sometimes when we
learn new things it can be a little intimidating.
Don’t worry, I’m here to take care of you!
● Try not to feel overwhelmed, because my job is to
make learning all of this fun and simple for you
● I’ll connect the dots for you so that everything will
make sense
● It’s essential for you to attend the full workshop
and listen closely, because the best way to learn all
of this is with a trusted guide
Together, let’s make this a memorable event that has
the potential to bless your life for generations!
Andy Tanner
Founder
The Cash Flow Academy
AGENDA
Discover Your Numbers
Reclaim your full compounding power
(5-MINUTE BREAK)
Acquiring cash flow assets
The world's most simple investing system
(5-MINUTE BREAK)
How stocks and options make money
Get paid to buy assets
(5-MINUTE BREAK)
High-probability trading
Infinite returns
Q&A Session
Discover Your Numbers
YOUR LIFE CALENDAR
DISCOVER YOUR NUMBERS
YOUR WEEKLY MEETING
YOUR MOTIVES
Your first steps to creating a plan
that will truly change your life
Your Life Calendar
90 years in weeks
10 years 20 years 30 years 40 years 50 years 60 years 70 years 80 years 90 years
Circle your current week
“Your time is limited, so don't waste it living someone else's life. Don't be trapped by dogma –
which is living with the results of other people's thinking. Don't let the noise of other's opinions
drown out your own inner voice. And most important, have the courage to follow your heart
and intuition. They somehow already know what you truly want to become. Everything else is
secondary.”
― Steve Jobs
“Twenty years from now you will be more disappointed by the things that you didn't do than by
the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade
winds in your sails. Explore. Dream. Discover.”
― H. Jackson Brown Jr.
“Lost time is never found again.”
— Benjamin Franklin
“For everything there is a season, and a time for every matter under heaven: a time to be born,
and a time to die; a time to plant, and a time to pluck up what is planted.”
—Ecclesiastes 3:1-8
TIME > RATE > MONEY
Discover Your Numbers
Time and Inflation
Time goal in years Projected inflation rate
Expenses (enter annual amounts)
Food Transportation Travel Total Projected Expenses
Clothing Insurance Legacy
Shelter Personal Care Misc
Health Care Entertainment Other
Income
Income from Gov Other Income Surplus of Deficit
!
pe
es t
n
ca
yo rta
Income from assets Income Rate from Assets
or po
ur
r f im
be T
m OS
nu e M
Th
Assets
Current Assets Required Assets Required growth rate Rates of Return
Typical 0 to 4%
Atypical 4 to 10%
Advanced 10% to
Infinity
Assets Classes and Strategies
Typical Atypical Advanced
Stocks and
Dividends Covered Calls Advanced Options
Options
Real Estate Rent Syndication Investment Syndication Sponsorship
Business Small Business Big Business > 500
Franchise
Employees
Potential Return 1% ∞%
Potential Risk Low High
Education Min Max
Your Weekly Meeting
When, Where, Who
Participants Day of the Week Place
Time Accounting
Power of Six
Income Goals
Assets Goals
Expanse
Liabilities
Net income
Net Worth
Calendar Activities
Key Transactions Key Meetings Education
Success isn't always about greatness. It's about consistency. Consistent hard work leads to
success. Greatness will come.
― Dwayne Johnson
Your Motives
Reasons to learn
I have a specific financial problem that could be solved by a
specific amount of cash
I want passive income that is above expenses to control my time
I want to leave a legacy to my family or a charity
I have all the wealth I want. I just want to protect it
I think tough times are ahead and I want to capitalize on a historic
transfer of wealth
I really love financial education and want to learn as much as possible
Other reasons ______________________________________________________________
Attitude Toward Financial Education
Urgent Urgent
and but
Important Not important
Important Not Important
but and
Not Urgent Not Urgent
Values
What value do you place on things other than wealth?
Family and Friends Knowledge
Freedom Personal Development
Honesty Other ________________
Faith Other ________________
“Always be bigger than your money”
Reclaim Your Compounding Power
CURRENT BALANCES
WALL STREET FEES
SELF-CONFIDENCE
The Next Step:
Huge Decision
Huge Opportunity
Current Balances
How do you compare?
Age Median Balance
<25 $1,948
Your Age Your Balance
25-34 $11,357
35-44 $28,218
45-54 $48,301
55-64 $71,168
65+ $70,620
4% Rule
Balance Annual Withdrawal Projected Monthly income
Current Balances (CONTINUED)
Long term impact of fees
“If returns are going to be 7% or 8%, and you are paying 1% for fees, that makes an enormous
difference in how much money you’ll have by retirement.”
— Warren Buffett
Wall Street Fees
$1,000 INVESTED AT 8% WITH 2.5% WALL ST. FEES
Wall Street Fees (CONTINUED)
$1,000 INVESTED AT 8% WITH 2.5% WALL ST. FEES
Self-Confidence
3 Step Formula
to permanently eliminate any fear for investing on your own:
1. ___________________________________________________________________________
2. __________________________________________________________________________
3. __________________________________________________________________________
Acquiring Cash Flow Assets
THE GOOSE THAT LAID GOLDEN EGGS
THE CASH FLOW JACK-IN-THE-BOX
CASH FLOW AND CAPITAL GAIN
SHOOTING FISH IN A BARREL
The Secret to Becoming
Financially Independent
The Goose That Laid Golden Eggs
Circle the
smarter
investment!
VS
VS
The Cash Flow Jack-in-the-box
2. _____
3. _____
1. _____
Cash Flow and Capital Gain
Buy Price Rent ROR Buy Price Sell Price ROR
_______ _______ _______ _______ _______ _______
Shooting Fish in a Barrel
_____________________ _____________________
_____________________ _____________________
“I make many mistakes. Consequently, our extensive collection of businesses includes some
enterprises that have truly extraordinary economics, many others that enjoy good economic
characteristics, and a few that are marginal. One advantage of our common-stock segment is that –
on occasion – it becomes easy to buy pieces of wonderful businesses at wonderful prices. That
shooting-fish-in-a-barrel experience is very rare in negotiated transactions and never occurs en
masse. It is also far easier to exit from a mistake when it has been made in the marketable arena.”
—Warren Buffett
The World’s Most Simple
Investing System
HOW TO FIND VALUABLE ASSETS
HOW TO UNDERSTAND PRICES
HOW TO GENERATE CASH FLOW
HOW TO MANAGE RISK
INSTANTLY MAKE BETTER INVESTING DECISIONS
Any Asset — Anytime — Anywhere
How to Find Valuable Assets
Fundamental
Analysis
How to Understand Prices
Technical Analysis
How to Generate Cash Flow
_______ _______ _______
Cash Flow
_______ _______ _______
_______ _______ _______
“Operating earnings are what
count most, even during
periods when they are not the
largest item in our GAAP total.
Our focus at Berkshire is both
to increase this segment of our
income and to acquire large
and favorably-situated
businesses.”
—Warren Buffett
How to Manage Risk
Risk Management
Above all, be mindful Bring on another position with enough
keep your positions power to neutralize the position that’s
small. Make your misbehaving.
money work for you.
Six things to know at the start of any transaction
________________ ________________ ________________
________________ ________________ ________________
How to Manage Risk (CONTINUED)
“You know, we think diversification is — as practiced
generally — makes very little sense for anyone that
knows what they’re doing.
Diversification is a protection against ignorance.
I mean, if you want to make sure — (laughter) — that
nothing bad happens to you relative to the market, you
own everything. There’s nothing wrong with that. I mean,
that is a perfectly sound approach for somebody who
does not feel they know how to analyze businesses…
…And to have some super-wonderful business and then
put money in number 30 or 35 on your list of
attractiveness and forego putting more money into
number one, just strikes Charlie and me as madness…
…And it’s conventional practice, and it may — you know,
if you all you have to achieve is average, it may preserve
your job. But it’s a confession, in our view, that you don’t
really understand the businesses that you own.”
—Warren Buffett
Instantly Make Better Decisions
Fundamental Technical Cash Risk
Analysis Analysis Flow Management
Personal Corporate Sovereign
Real Estate Stocks Currency Business Commodities
What if?
How Stocks and Options
Make Money
STOCK RISK GRAPH
OPTIONS RISK GRAPH
MARK CUBAN CASE STUDY
EXXONMOBIL CASE STUDY
Leverage Without Going into Debt:
Protection Average Investors Wish They Had
Stock Risk Graph
Options Risk Graph
Mark Cuban Case Study
Insurance Exercise
Initial Home
Policy Time Value Policy Intrinsic Value Initial Policy Value
Price
Final Policy
Final Home Price Policy Time Value Policy Intrinsic Value
Value
Claim
Cost
Home Value
Mark Cuban Case Study (CONTINUED)
Self-Made Maverick
Correspondent Steve Kroft
He had a company with $15 million in revenue. A year later, it
sold for $5.7 billion in Yahoo! stock. "Just as shocking to me
even now as it was then," says Cuban, laughing.
More than 300 employees also became millionaires - at least
“I was on paper. But Cuban, sensing the Internet bubble was about
to burst, made his shrewdest move. He began unloading his
covered" Yahoo! stock, using a hedging strategy that would lock in his
profits. “I was covered," says Cuban. "And then some."
Put Option Exercise
Initial Stock Price Option Time Value Option Intrinsic Value Initial Option Price
Final Stock Price Option Time Value Option Intrinsic Value Final Stock Price
Profit
Loss
Stock value
ExxonMobil (XOM) Case Study
Put Option Exercise
Initial Stock Price Option Time Value Option Intrinsic Value Initial Option Price
Final Stock Price Option Time Value Option Intrinsic Value Final Stock Price
Profit
Loss
Stock value
Get Paid to Buy Assets
COCA COLA CASE STUDY
DOW CASE STUDY
YOUR NEXT INVESTMENT
ACCELERATE COMPOUNDING
A New Cash Flow Pattern
Coca Cola (KO) Case Study
Dow (DOW) Case Study
.81 .81 .81
$43 $43 $43
Your Next Investment
Accelerate Compounding
“If returns are going to be 7% or 8%, and you are paying
1% for fees, that makes an enormous difference in how
much money you’ll have by retirement,”
— Warren Buffett
High Probability Trading
DIRECTIONAL TRADING
PREDICTING A RANGE
TIME IS MONEY
No More Guessing
Directional Trading
Profit
Loss
Predicting a Range
Profit
Loss
Time is Money
Infinite Returns
A FRESH LOOK AT THE COMPOUNDING FORMULA
BREAK THE RISK-REWARD RULE
THE WEALTH BUILDER’S ONE-TWO PUNCH
EDUCATION IS THE NEW MONEY
Investing With a Warp Drive
A Fresh Look at the Compounding Formula
Amateur Pro
Final Value Final Value
Initial Value Initial Value
Lim Final Value - Initial Value
Initial Value = ∞
Initial Value
➔0
Break The Risk-Reward Rule
Conventional Unconventional Intelligent
Risk
Risk
Risk
∞
Reward Reward Education
Investment Investor
Mindset Mindset
The Wealth Builder’s 1-2 Punch
Education is The New Money
