TME 12 | Why High Earners Stay Broke (and How to Escape the W-2 Trap) with Rich Fettke

Title: Why High Earners Stay Broke (and How to Escape the W-2 Trap) with Rich Fettke

Summary:

On this episode of Raise the Bar Radio, Seth Bradley welcomes Rich Fettke, co-founder of Real Wealth, to share his incredible journey from a life-threatening cancer scare to building a real estate empire. Rich explains how his wife's pivot to real estate investing during his health crisis led to the creation of Real Wealth, which has since helped over 70,000 members acquire more than $1.2 billion in assets. Together, Seth and Rich dive deep into the mindset shift required to escape the grind, the importance of clarity and vision, and why hard assets like real estate are the key to sustainable wealth, freedom, and major tax advantages — especially for high-income professionals like attorneys and doctors.

Rich also breaks down the difference between passive and active investing, explaining how Real Wealth offers vetted markets and property teams for investors who want a more hands-off experience. He shares insights from his book The Wise Investor, which is designed to inspire readers to take control of their financial futures through compelling storytelling. Wrapping up, Seth and Rich emphasize the power of passive income in creating freedom, reducing stress, and ultimately living life on your own terms without sacrificing health, family, or personal passions.

Links to Watch and Subscribe:

https://youtu.be/rF_4-7G7vYw

Bullet Point Highlights:

• Rich Fettke shares his powerful origin story and the creation of Real Wealth.
• Real Wealth has helped 70,000+ members acquire $1.2B+ in assets.
• Importance of clarity, vision, and avoiding reactive life decisions.
• Hard assets like real estate provide stability, tax advantages, and true passive income.
• Real Wealth offers turnkey, vetted investing options through preferred property teams.
• Passive income helps professionals reduce tax burdens and escape active income traps.
• Rich's book The Wise Investor inspires readers to take action through relatable storytelling.

Transcript:

Seth Bradley (00:02.094)
What's up, Builders? This is Raise the Bar Radio, where we talk about building wealth, raising capital, and all in all, raising the bar in your business and your life. This is the No BS podcast for capital raisers, investors, and entrepreneurs who are serious about scaling their business and living life on their own terms. I'm Seth Bradley, securities attorney, real estate investor, and entrepreneur, bringing you world-class strategies from the best in the game.

If you're ready to raise more capital, close bigger deals, build a better you, and create true financial freedom, you're in the right place. Let's go.

So.

Rich, what's going on brother? Welcome to the show.

Rich Fettke
Thank you, good to be here.

Seth Bradley (00:47.054)
Absolutely, man. Thanks for coming on. Really appreciate it. Let's just dive right in. Tell us a little bit about yourself and your background and feel free to take it back as far as you'd like.

Rich Fettke
Okay, well... (continues storytelling about business origins and melanoma diagnosis)

Seth Bradley
Yeah, that's an incredible story, man. I just think about those inflection points and obviously that was a major inflection point in your life. How do you think other people could shift into investing or making a change without having something catastrophic happen?

Rich Fettke
Thank goodness I don't want that to happen to anyone... (continues explanation about clarity and creating vision)

Seth Bradley
Yeah, I love that. I mean, it's almost like just slowing down for a second and thinking about your life.

Rich Fettke
And that is it. Yeah. Investment properties, whatever that looks like... (continues explanation about real estate, passive income, etc.)

Seth Bradley
Yeah, yeah. So is that the first step? I'd really like you to walk us through what you would do with a potential client or person who comes to you and says, "I'm a highly paid W-2..."

Rich Fettke
It's vital. Yeah. Starting with the why like we talked about... (continues explanation about active vs passive income and tax advantages)

Seth Bradley
Yeah, for sure. And that retirement gets farther and farther away.

Rich Fettke
100% and getting hard assets... (continues explanation about why hard assets like real estate matter)

Seth Bradley
Yeah, yeah, for sure. For sure. Now, I'm sure you've seen a lot of people you've helped. What are the changes you've seen in their lives after they start investing?

Rich Fettke
You know, that was the whole intention of that book I just wrote... (continues explanation about The Wise Investor and people creating real wealth)

Seth Bradley
Absolutely. I talk to folks, especially attorneys, who are unhappy with where they’re at...

Rich Fettke
So much. At Real Wealth we call them Henrys — high earners, not rich yet... (continues explanation about tax savings and financial freedom)

Seth Bradley
Yeah, that's right. Taxes are the thing...

Rich Fettke
Mm-hmm. Ain’t that?

Seth Bradley
Yeah. So tell us a little bit more about this book. Is it out? Can we buy it now?

Rich Fettke
Yeah, it’s been out for almost a year now... (continues explanation about The Wise Investor, story format, and why he wrote it as a parable)

Seth Bradley
Yeah, same here. Same here. Sounds like the hero of that story, I think a lot of people can relate to that.

Rich Fettke
Yeah, and that's how I wrote it... (continues explanation about hero's journey format and story impact)

Seth Bradley (27:11.202)
Yeah, yeah. I love that. I mean, Rich Dad Poor Dad — story form impacts millions.

Rich Fettke
Number one finance book of all time. Pretty amazing.

Seth Bradley
Yeah. I'd love to dive into passive vs active real estate investing. I know you do both. What do you think about that and what do you advise folks?

Rich Fettke
Yeah, great question. I love that you said it's a sliding scale... (continues explanation about passive LP investing, single family properties, active oversight)

Seth Bradley
That's right. Yeah. It's that first action that changes everything...

Rich Fettke
Yeah, it's like buying your first house... (continues explanation about mindset shift and leverage)

Seth Bradley
Yeah. And going back to what you said about active vs passive... it's about finding the right team members, right? Broker, coach, property manager...

Rich Fettke
Yeah, yeah. Don’t try to do it yourself... (continues explanation about importance of team and referrals)

Seth Bradley
Absolutely. Alright Rich, before we jump into the Freedom Four, do you have one last gold nugget for our listeners?

Rich Fettke
One last gold nugget... (explains importance of working with tax attorney and CPA)

Seth Bradley
Love that. Alright, let’s jump into the Freedom Four. What's the best thing you do to keep your mind and body healthy?

Rich Fettke
Oh, working out, exercise every morning... (cold plunge and workout routine)

Seth Bradley
Perfect. What's one limiting belief you've crushed along the way?

Rich Fettke
Mostly crushed... (story about overcoming "I'm stupid" belief and weight training for discipline)

Seth Bradley
Yeah, I love that. What's one actionable step listeners can do right now to start creating more freedom?

Rich Fettke
I would say get clear on that vision... (setting life goals and clarity)

Seth Bradley
And last but not least, how has passive income made your life better?

Rich Fettke
Me personally, I can live life on my own terms... (adventure sports, freedom, job optional)

Seth Bradley
Love that, man. Rich, this has been great. Where can our listeners find out more about you?

Rich Fettke
Our company website is realwealth.com... (social media handles, Amazon book link, etc.)

Seth Bradley (38:22.082)
Thanks for tuning in to Raise the Bar Radio. If you enjoyed today's episode, make sure to subscribe, leave a review, and share it with someone who needs to hear it. Keep pushing, keep building, and keep raising the bar. Until next time, enjoy the journey.

Links from the Show and Guest Info and Links:

Seth Bradley’s Links:

https://x.com/sethbradleyesq

https://www.youtube.com/@sethbradleyesq

www.facebook.com/sethbradleyesq

https://www.threads.com/@sethbradleyesq

https://www.instagram.com/sethbradleyesq/

https://www.linkedin.com/in/sethbradleyesq/

https://passiveincomeattorney.com/seth-bradley/

https://www.biggerpockets.com/users/sethbradleyesq

https://medium.com/@sethbradleyesq

https://www.tiktok.com/@sethbradleyesq?lang=en

Rich Fettke’s Links:

https://x.com/FettkeRich

https://www.facebook.com/rich.fettke

https://www.threads.com/@richfettke

https://www.instagram.com/richfettke/

https://www.linkedin.com/in/fettke/

https://realwealth.com/about/rich-fettke/