Unlocking Wealth: Insights from Garrett Gunderson and Myron Golden

This conversation dives deep into the mindset and strategies of the ultra-wealthy, featuring author Garrett Gunderson and host Myron Golden. They explore unconventional approaches to wealth creation, decision-making under pressure, and the importance of value over profit. The discussion also touches on personal finance philosophies, family legacies, and the psychology behind financial success.

From Scarcity to Abundance: A Personal Journey

Garrett Gunderson's journey into financial services began in 1998. Initially, his sales skills were far from polished; he recalls a disastrous first attempt at selling, where his prospect opted for penny stocks over his advice. However, his entrepreneurial spirit was evident from age 15 with a car detailing business. A competition for young entrepreneurs, where he won prize money for his presentation skills, highlighted his aptitude for speaking over manual labour.

His family background, with roots in Italy and Ireland, instilled a deep-seated sense of scarcity. Stories of his great-grandfather leaving Ireland to find opportunity in America, facing hardship and separation from family, and his grandfather's dual life as a coal miner and entrepreneur, shaped his early views on money. He recounts a moment at 17 where spending $7 on jerky felt like a significant financial loss, illustrating his initial tendency towards being a "miser."

Shifting the Financial Paradigm

Gunderson's perspective began to shift, influenced by his grandfather, a coal miner and entrepreneur who played the accordion and ran a TV repair shop. Witnessing his grandfather's ability to create value and be appreciated by his community sparked an entrepreneurial ambition in Gunderson.

Upon graduating college in 1999, he chose to pursue financial services independently rather than accept traditional job offers. This decision was met with apprehension from his family, who urged him to seek stable employment. A pivotal moment came when he connected with a former professor at Southern Utah University who had managed billions in municipal bond funds. Gunderson, after preparing meticulously, presented a strategy to the professor that aimed to avoid capital depreciation risk and offered tax-free benefits with a death benefit. This led to a significant commission and his grandfather's proud endorsement, marking a turning point in his career and family legacy.

The Rockefeller Strategy and Beyond

Gunderson shared how his financial strategies were inspired by the Rockefeller family's long-standing practice of using life insurance to preserve and grow wealth across generations. This involved purchasing life insurance on family members, with the death benefit replenishing trusts and offsetting expenses, regardless of market fluctuations or tax changes. He even collaborated with a CPA from the Rockefeller family office during the writing of his book, gaining direct insight into their methods.

He explained a strategy, derived from General Electric's approach in the 1940s, where companies recruited top talent by offering pensions, funded by life insurance on those individuals. The death benefit would then replenish the company's spending and provide a return. Gunderson adapted this by suggesting that individuals could spend down their assets to zero during their lifetime, knowing that the death benefit would replenish them tax-free, potentially doubling their return.

Understanding Financial Terms: A Clearer Picture

To clarify key financial concepts for a broader audience, Gunderson defined:

• Asset Allocation: Strategically distributing investments across different asset classes to create a stable foundation. It's about identifying what you can count on and what aligns with your personal strengths and values, rather than simply diversifying to spread risk thinly.
• Capital Depreciation: The decrease in the value of an asset, particularly bonds, when interest rates rise. If interest rates go up, newly issued bonds offer higher returns, making older bonds with lower rates less valuable.
• Bonds: Essentially loans made to governments or corporations, which pay a fixed interest rate. Their value can fluctuate based on market interest rates.
• Stocks: Representing ownership (equity) in a company. Stockholders benefit from dividends or an increase in the company's value, but they are paid after bondholders if the company goes bankrupt.

He cautioned against the common practice of investing in index funds without understanding the underlying companies, highlighting the importance of aligning investments with personal values and understanding.

Redefining Retirement and Financial Independence

Gunderson challenged the conventional notion of retirement, suggesting it often leads to sacrificing present experiences for a future that may not materialize as planned. He advocated for creating a life one doesn't want to retire from, rather than planning to retire to. He also critiqued the "millionaire next door" mentality of excessive frugality, suggesting it can lead to misery and that wealth needs to be built with the capacity to handle it.

He stressed that risk isn't in the investment, but in the investor. Developing one's "investor DNA" – understanding competencies, values, and drivers – is key. He also touched on the idea that people often become "divorced" from their money by investing in things they don't understand, leading to negative feelings when those investments falter.

The Power of Vision Over Goals

A core theme was the distinction between goals and vision. Gunderson argued that goals are often limiting, whereas a vision is something beyond current reach, requiring growth and commitment. He identified three common limiting beliefs that hinder achieving extraordinary visions:

1. "I don't have the time." This is often a symptom of poor delegation skills or the use of "escapisms" (like excessive TV watching) to avoid responsibility.
2. "I don't have the money." Money follows value, and value is created by a compelling vision. Commitment, not just interest, attracts resources and support.
3. "I don't have the ability." People with vision attract those with the necessary abilities. Speaking a bold vision into existence can rally others and inspire action.

He also debunked the idea that sacrifice is necessary for success, framing it instead as giving up what's valuable for what's immediate. True success, he suggested, comes from having the right boundaries and the willingness to create value for others.

Key Takeaways

• Focus on Value Creation: True wealth is defined by your ability and willingness to create value for others, not just by money.
• Vision Drives Success: A compelling vision, pursued with commitment, attracts the necessary resources, time, and ability, far more effectively than setting limited goals.
• Embrace Abundance: Shifting from a mindset of scarcity to one of abundance is crucial for financial growth and personal fulfillment.
• Invest in Yourself: Your personal growth, skills, and understanding of your "investor DNA" are the most important assets.
• Rethink "Retirement": Create a life you love now, rather than sacrificing present experiences for a future concept of retirement.
• Commitment Over Interest: True commitment to a vision means becoming resourceful and seeking support, rather than merely being interested.
• Rhetoric for Creation: Boldly speaking your vision into existence, like historical leaders and innovators, can catalyze action and bring about desired outcomes.

A Call to Action

Gunderson offered his audiobooks, "What Would the Rockefellers Do?", "Killing Sacred Cows 2.0", and "Money Unmasked," for free to those who DM him on Instagram (@GarrettBGunderson) with the word "Golden." This conversation underscored that wealth is not about shrinking oneself but about expanding one's capacity to create and receive value.