INTRODUCING THE CAPITAL EDGE

Welcome to the very first edition of The Capital Edge! If you’ve been rocking with me through The Devon

Kennard Newsletter, don’t worry—you’re in the right place. This is the evolution. I wanted the name to better reflect the mission: helping you build wealth, take control of your capital, and create a life of true financial freedom.

The Capital Edge is where investing meets ownership. Whether it’s real estate, private lending, or passive income plays, I’ll continue pulling back the curtain on how I’m building my portfolio—and how you can too. Same voice, same value, just with a sharper edge.

Let’s get into it!

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AVOIDING THE STUPID TAX: HOW TO PROTECT YOUR WEALTH LIKE A PRO

Hey Everyone,

There’s an expensive tax most people don’t talk about—but I see pro athletes and high-net-worth individuals (HNWIs) paying it all the time.

It’s called the “stupid tax.” And no, the IRS isn’t collecting it. It’s the money you lose to bad investments, shady deals, bad contracts, lifestyle creep, and financial ignorance.

The good news? You don’t have to pay it. If you handle your wealth like a real business, you’ll keep more of what you earn—and make it grow. Here’s how:

1️⃣ Don’t Invest in What You Don’t Fully Understand

The number of bad business pitches I get is unreal—restaurants, gyms, NFT projects, “the next big thing.” Pro athletes and HNWIs are prime targets because people assume you’re sitting on cash.

But here’s the truth: If you can’t explain the investment in one sentence, you probably shouldn’t be in it.

🚨 What to Do:

✔ Ask how this business actually makes money and how you’ll get paid.

✔ Demand full financials and track records.

✔ Never let someone rush you into a deal. The best investments don’t require FOMO.

2️⃣ Stop Overpaying for “Flexes” That Don’t Build Wealth

A lot of athletes blow through millions because they think they’re locked into lifetime money. Many HNWIs do the same, thinking their big exits or stock wins will last forever.

But cash doesn’t work like that. If more money is going out than coming in, it doesn’t matter how much you make—you’ll still go broke.

💰 Reality Check:

❌ A $1M home really costs $1.3M+ after taxes, upkeep, insurance, and interest.

❌ A $500K car loses 20-30% of its value the second you buy it.

✔ Instead, invest in cash-flowing assets FIRST—luxuries second.

3️⃣ Avoid Predatory Financial Advisors & Business Managers

Some of the biggest names in sports and business have been robbed by their own advisors.

The mistake? Blind trust.

•Many “advisors” put their own commissions ahead of your best interests.

•Some literally steal from client accounts.

•Others push high-fee investments that benefit them more than you.

🚨 What to Do:

✔ Only hire fiduciary advisors (legally required to act in your best interest).

✔ Ask how they make their money. If they dodge the question, that’s a red flag.

✔ Keep full control over your accounts—never give someone free access to move money.

4️⃣ Understand the True Cost of High-Interest Debt

I’ve seen athletes take loans against their future contracts and end up broke before retirement.

HNWIs do the same—borrowing against assets for risky plays, then getting wiped out in a downturn.

📉 Bad Debt Examples:

•Financing cars, jewelry, or vacations on credit

•Taking bad business loans

•Paying double-digit interest when you don’t need to

✔ If you’re taking on debt, make sure it’s attached to something that makes you money.

5️⃣ Read Every Contract (and Get Your Own Lawyer)

Pro athletes get signed to horrible contracts all the time.

HNWIs get locked into bad real estate and business deals because they didn’t read the fine print.

🚨 What to Do:

✔ Have your own lawyer review EVERY major contract.

✔ Never sign anything under pressure. If someone is rushing you, that’s a red flag.

✔ If you don’t understand a term, ask before signing.

6️⃣ Vet Every Business Partner & Investment Deal

If you have money, people will pretend to be your best friend—until the check clears.

Many athletes and HNWIs lose millions by trusting the wrong people.

🚨 What to Do:

✔ Check references and past results before investing in a business.

✔ Don’t let emotions dictate money decisions—use numbers, not feelings.

✔ If someone won’t provide financials or proof of success, walk away.

7️⃣ Play the Long Game—Avoid “Get Rich Quick” Traps

Athletes fall for Ponzi schemes, crypto scams, and MLMs.

HNWIs get sucked into overhyped private equity deals that never pay out.

🔥 If someone promises “huge returns with no risk,” it’s a scam. 🔥

🚨 What to Do:

✔ Stick to cash-flowing real estate, private lending, and blue-chip investments.

✔ Only invest in what you can afford to hold for the long haul.

✔ Compounding beats gambling—every time.

8️⃣ Protect Your Downside (LLCs, Trusts, Insurance)

Athletes and HNWIs get sued ALL THE TIME.

If your assets aren’t structured correctly, one lawsuit, divorce, or accident can wipe out millions.

🚨 What to Do:

✔ Hold investments under LLCs to protect personal assets.

✔ Use trusts for long-term wealth preservation.

✔ Get umbrella insurance to cover unexpected lawsuits.

9️⃣ Say “No” More Often—You’re Not an ATM

One of the biggest traps for wealthy people? Handing out money to everyone.

🚨 The problem:

•If you give one family member money, more will ask.

•If you invest in one friend’s bad business, others will follow.

•Saying “yes” to everyone guarantees you’ll run out of money.

✔ Instead, set up a family investment fund with clear guidelines.

✔ If someone asks for money, tell them to bring you a business plan, not a sob story.

🔟 Never Outsource Your Financial Education

Many pro athletes go broke because they trust someone else to “handle” their money.

HNWIs do the same—blindly following advisors instead of understanding their own finances.

🚨 What to Do:

✔ Learn about real estate, lending, and tax strategies—even if you hire experts.

✔ Keep your own personal P&L statement (like a business).

✔ No one will care about your money more than you.

Final Thought:

The stupid tax is what you pay for trusting the wrong people, rushing into deals, and not thinking long-term.

You don’t have to pay it. If you:

✔ Protect your capital

✔ Invest with a cash-flow first mindset

✔ Stay disciplined with spending and investing

Then you won’t just keep your wealth—you’ll grow it.

Let everyone else learn the hard way. You? You’ll still be winning long after the hype fades.

DK 💰

P.S. If you’ve read my latest book, Real Estate Side Hustle, I’d love to hear your thoughts! Leaving a quick review on Amazon helps more people find it and start their wealth-building journey. You can drop your review here (takes 30 seconds and means a lot!).