We often treat borrowing money as a math problem. We assume that if the credit score is good and the collateral is there, the loan is approved, and the risk is managed. But as Walt Postelwait explains, the spreadsheet doesn't tell the whole story. As a former commercial lender and the Co-Founder of Portfolio Watch, Walt spent years on the other side of the table. He learned that while assets get you to the table, it is "Character" that gets you the check, and more importantly, helps you survive when things go wrong.

In this episode, we move beyond the basics of debt. We discuss the critical difference between "Consumer Borrowing" and "Strategic Leverage." Walt shares the specific metrics lenders use, like the 1.25 Debt-Service Coverage Ratio, and explains why "Gateway Businesses" like laundromats are often a trap. Most importantly, Walt shares the raw, unfiltered story of his own 66-unit real estate development failure. He walks us through the "Sunk Cost" trap, the red flags he ignored, and how he relied on relationship capital to pay everyone back and avoid bankruptcy.

Key Talking Points:

• The Character Metric and why lenders prioritize grit over cash flow
• The difference between Bad Debt (consumer) and Good Debt (strategic leverage)
• Understanding Debt-Service Coverage Ratio
• A real life lesson of leveraged borrowing gone wrong
• How AI is changing how borrowing will work in the future

Escape The Clock Resources:

• The Book: https://escapetheclock.com/book
• The Planner: https://escapetheclock.com/toolkit
• The Podcast: https://escapetheclock.com/podcast
• 1:1 Help: https://escapetheclock.com/schedule
• Free Weekly Insights: https://escapetheclock.com/subscribe

Episode References & Resources:

• Business owners have a median net worth nearly 9 times higher than wage earners ($1.3M vs $155k) — Federal Reserve Board (2023) — https://www.federalreserve.gov/econres/scfindex.htm
• Roughly 20% of new businesses fail within the first two years — U.S. Bureau of Labor Statistics (2024) — https://www.bls.gov/bdm/us_age_naics_00_table7.txt
• Construction projects specifically face a 98% chance of cost overruns or delays — McKinsey & Company (2022) — https://www.mckinsey.com/capabilities/operations/our-insights/the-construction-productivity-imperative
• 52% of financial services companies are accelerating their AI adoption for risk management — PwC (2025) — https://www.pwc.com/us/en/industries/financial-services/library/ai-in-financial-services.html

Connect with Walt:

• Website: https://portfoliowatch.co/
• LinkedIn: https://www.linkedin.com/in/walt-postlewait-0082ab31b/

Support the podcast:

• Subscribe and leave a review
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Thank you for listening. This podcast is for education only and is not financial advice.

Most parents hide their wealth to "protect" their children, but in business, hiding the financials from future CEOs is negligence.

In this episode, Dan speaks with John Knowlton, author of Thinking for Success, about the concept of "Shared Governance" for family wealth. John breaks down why 52% of parents fail to discuss money with their children, the critical distinction between "Good Success" and "Bad Success," and how to use tools like a Family LLC and a "Golden Triangle" framework to turn your legacy into a business that every family member helps run.

Key Talking Points:

• The danger of "Authority without Information" in parenting
• Why "Good Success" requires relationships, not just capital
• The "Golden Triangle" framework: Why, How, and What
• Using a Family LLC to shift the psychology of inheritance
• The "Shared Governance" model for decision making
• How to start the "Board Meeting" at the dinner table

Escape The Clock Resources:

• The Book: escapetheclock.com/book
• The Planner: escapetheclock.com/toolkit
• The Podcast: escapetheclock.com/podcast
• 1:1 Help: escapetheclock.com/schedule
• Free Weekly Insights: escapetheclock.com/subscribe

Episode References & Resources:

• 71% of parents would rather talk about death than money — T. Rowe Price Parents, Kids & Money Survey (2019) — https://www.troweprice.com/corporate/en/press/releases/t-rowe-price-parents-kids-money-survey.html
• 52% of parents have not discussed their net worth with their kids — Fidelity Family & Finance Study (2025) — https://newsroom.fidelity.com/pressreleases/fidelity--study-finds-the-great-wealth-transfer-leaves-families-poised-to-build-stronger-financial-f/s/3c72b6d3-9ab6-400a-95e7-f4b30e43db64
• 70% of wealthy families lose their wealth by the second generation — The Williams Group (2018) — https://www.williamspgroup.com/

Connect with John:

• Website: https://abundantthoughtrevolution.com/
• Book: https://indiepubs.com/products/thinking-for-success
• LinkedIn: https://www.linkedin.com/in/john-knowlton-516b828/

Support the Podcast:

• Subscribe and leave a review
• Share this episode with others
• Join the free newsletter at escapetheclock.com/subscribe

Thank you for listening. This podcast is for education only and is not financial advice.

We are living in a financial reality where money and capital are no longer the same thing.

In this deep-dive episode, Dan speaks with Paul Musson, author of Capital Offence, about the "Great Category Error" most investors make: confusing the currency they save with the wealth they create. Paul breaks down how the Fiat system punishes savers, why your home’s appreciation might be a hidden mechanism of wealth redistribution, and how to build a portfolio of "Real Assets" that allows you to opt out of the distorted reality and escape the clock.

Key Talking Points:

• The fundamental difference between Money (currency) and Capital (productive capacity)
• Why the "Wealth Effect" in housing is actually a transfer of wealth from the young to the old
• The "Paradox of Thrift" and why central banks are incentivized to punish prudence
• How to use the "Central Bank Lunacy Hedge" to protect your portfolio from policy errors
• The danger of "Zombie Companies" in passive index funds
• Why you must balance financial defense with living for today

Escape The Clock Resources:

• Book: www.escapetheclock.com/book
• Planner: www.escapetheclock.com/toolkit
• 1:1 Help: www.escapetheclock.com/schedule
• Free Weekly Newsletter: www.escapetheclock.com/subscribe

Episode References:

• The M2 Money Supply exploded by 40% between 2020 and 2022, while real productivity barely budged - Federal Reserve Economic Data (2024) - https://fred.stlouisfed.org/series/M2SL
• Since 2009, US Household Wealth has nearly tripled to $150 Trillion, largely driven by asset price inflation rather than GDP growth - Federal Reserve Financial Accounts of the US (2023) - https://www.federalreserve.gov/releases/z1/
• The percentage of "Zombie Companies" (firms that can't cover interest payments with profits) rose to nearly 20% in the US by 2020 - Bank for International Settlements 2020) - https://www.bis.org/publ/qtrpdf/r_qt2009a.htm
• Over the last 100 years, gold supplies have increased at an annual rate of only 1% to 3%, making it hard to manipulate - Mark Skousen, The Structure of Production (2015) - https://www.amazon.com/Structure-Production-Mark-Skousen/dp/1479848522

People & Concepts Mentioned:

• Michael Green: Portfolio Manager known for his research on how passive investing strategies (index funds) distort market prices.
• Paul Volcker: Former Fed Chair (1979–1987) who famously raised interest rates to 20% to crush the inflation of the 1970s.
• Paul Krugman & Paul McCulley: Economists referenced regarding their 2002 arguments for creating a "housing bubble" to replace the dot-com bubble.
• Bob Kierlin (Fastenal): The founder referenced by Paul as a prime example of ethical stewardship for distributing wealth to his employees.

Connect with Paul:

• Website: https://paddingtoncapitalmgmt.com
• Book: https://paddingtoncapitalmgmt.com/capital-offence-book-paul-musson-economic-policy-inequality-money-management-financial-intelligenc/
• LinkedIn: https://www.linkedin.com/in/paulbmusson/

Support the podcast:

• Subscribe and leave a review
• Share this episode with someone who would benefit
• Join the community at escapetheclock.com/subscribe

Thank you for listening. This podcast is for education only and is not financial advice.