Smart Wealth Building with Todd Tresidder 193

Smart Wealth Building with Todd Tresidder episode 193

 

Todd Tresidder is known as the financial mentor looking at smart investment strategy wealth building advanced retirement planning and entrepreneurs and with a distinctive human twist and if you heard him before you know he's distinctively human.

 

Todd's call to action is invest more build wealth retire early and live free and I like to live free part

 

Today we get to talk about the financial stuff on how to take the profits that we make and put them somewhere so that we have more money for the future.

 

 Todd talks how to catch up on your retirement savings when you're behind and there are so many thoughts behind that.

 

First of all, when you design a wealth plan you know the whole premise here the starting point is you have to have a plan to achieve wealth because if you don't have a plan then you're going to produce random results.

 

The saying is if you don't have a plan and somebody else has a plan for you.

 

Right where you become part of somebody else's plan and so you know if you're a contractor or you're building the business on your own.

 

You're a guy that's moving your life or you need to create your plan that's going to Chief financial independence because it's not enough just to make the money see there's there's a couple components to the equation in traditional financial planning but we're also going to go into nontraditional strategies here, but in a traditional model you know you make the money in your work and then you have to translate it from earning income over to the asset side and there's a fission in efficient ways to achieve that goal and so one of the things about having your own business which is one of the asset classes you can work with you.

 

You must match the asset classes to the skills resources abilities and goals you bring to the equation.

 

So yes one of things is different from the way I teach wealth planning from how most people are how traditional financial planning teaches it in traditional financial planning right you go sit down your financial planner and what does a guy do he asked you some risk profile stuff and looks at your goals and looks at your spending level and then they, they punch this stuff in no computer and then they print out this beautiful brochure thing glossy with you know pretty pride charts and all this stuff.

 

And so what people do this initially bring it home stick it on a shelf and let it collect dust they never doing with it and there's a couple problems with that one is that it's not actionable there's nothing for you to do because the premise of the entire plan is that you supposed to make as much money as you can spend as little as you can and shovel that savings over to your financial planner so he can stick it in a magical asset allocation form a so you're rich some day in the future right does that sound familiar

 

Again it's just easy to call out because that's how it's done every day in the business and so the way I teach it's totally different OK what you want to do is you come to the equation with skills abilities resources goals.

 

 OK you've got to take those and then there's three asset classes you can use to build your wealth in this is different from how traditional financial planning teaches it traditional is it's all about

1.Paper assets as they can sell you like stocks bonds mutual funds insurance

 

Because that's how they make their money they're selling you investment products of course that's what's going to go into the financial plan and so the way I teach it is there's actually three asset classes the ones that are the traditional financial planning offers are what I call paper assets right against stocks bonds mutual funds insurance that kind of stuff and so that's what in one category called paper assets the

 

2 . The 2nd asset is something each contractor's already building which is your business business entrepreneurship and the

 

3.Third asset is a real estate and income producing real estate and so one of the favorite strategies I have with entrepreneurs right on the whole which doesn't exist in most financial plans is owning the real estate that your business is housed in.

 

Yeah so you know pretty much any accountant worth his salt would tell you that if you plan on being in business for fifteen to twenty years in most people do if you have that kind of time frame in your business it almost always makes sense to own the property

 

Even if it doesn't make sense on a straight cash flow basis in the long term it almost always pans out on the property now why that's key in a financial plan for a contractor is that that can become a source of retirement income when you sell right because then you can lease the property if you can what you can do is you can have the business become the lesser you beat you're the owner the business then leases it from you and that way that's a way of translating money out of the business and into the air and into your personal equity side and then what happens is fairly low risk because as long as you stay in business you stay profitable the business pretty much guarantees that you'll be positive cash flow on the property by right.

 

It's an extremely low risk way for you to  begin to build wealth and the other thing that's great about owning real estate that your business is housed in is it will usually almost always provide inflation adjusting income that you can never outlive and there simply aren't that many assets you can say that about.

 

And then another aspect that makes sense she strategy for contractors one it's not rocket science right you have to become some big investment genius to do it most contractors own their home you know at least they intuitively understand how to buy a home or buy a piece of real estate and so an intuition will take you a long way on real estate and so I'm not some big Let me be clear in some

 

I'm not some big real estate advocate right I'm talking about this mainly because it's a sort of a no brainer strategy for most contractors in their wealth plan and it's not commonly taught by financial advisors because again they can't sell it to you just as I can't sell to you but I'm an educator I'm not I don't sell investment products.

 

 

Todd Tresidder’ s call to action invest smart, build wealth, retire early, live free.

If you want to check out Todd Tressider s website to get an example of what he is talking about

Go to  www.financialmentor.com  (website)

and see how it is set up to give potential customers what they are looking for in his services.

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