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Sound Financial Group - Bothell, Washington

 

Podcast Episode 132: Your Business is Not YOUR Wealth

| March 27, 2019
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Episode Summary

In this episode of the Sound Financial Bites Podcast, Paul and Cory discuss why it is imperative that business owners diversify from their businesses to their personal balance sheets. They cover the common mistakes that many entrepreneurs make when valuing their businesses as it relates to financial independence. Finally, Paul and Cory discuss the Wealth Design-Build Model that focuses on planning and building the best financial future possible.

What Was Covered

  • 01:42 – Paul introduces today’s topic: Why Your Business is Not Your Wealth as it relates to the mindset of financial independence
  • 03:45 – This Week in Planning
  • 05:10 – Paul and Cory play a clip of a Ben Stein interview from 2012
  • 12:04 – The Relay Race example
  • 13:51 – How your business may prevent you from achieving financial freedom
  • 18:17 – Paul provides an example from a recent event he spoke at
  • 22:21 – Understanding the actual value of your business
  • 24:42 – The Four Percent Rule
  • 28:11 – The major financial question Paul asks every prospective client
  • 30:54 – The Wealth Design-Build Model that Paul’s company utilizes
  • 33:46 – Cory interrupts the podcast to provide the audience with a special offer
  • 35:31 – The importance of diversifying from your business to your personal balance sheet
  • 41:30 – Paul urges the audience to calculate the four percent rule
  • 42:41 – Two roles all business owners hold: Investor and Chief Executive
  • 43:44 – Key takeaways from today’s episode
  • 47:37 – Paul and Cory announce a special giveaway
  • 50:14 – Paul features a review left on the Sound Financial Bites Podcast

Tweetables

“The amount of people that have saved for retirement is virtually nil.”

“The more successful your business is, the more it may prevent you, unintentionally, from reaching the ultimate financial freedom that you would like.” 

“That four percent is enough that it doesn’t take so much out in the down years, or as I like to say, because of my country upbringing, ‘You just cannot eat your seed corn. You gotta have enough to replant the field every single year.’”

“That’s what we end up building in our financial lives is a big junk drawer of these separated decisions because we never collected all of the materials with an end in mind; we started building without design.”

“You may love your business, but your business doesn’t love you. In fact, if things go perfectly, your business is planning on leaving you.”

“You have two jobs. You are both the investor in that business and you’re likely its chief executive.”

“For you, leave today, go do some math, sit down with your spouse, start a new conversation you maybe haven’t had before about the importance of building, continuing to build that business, continue to drive your income. And yet, in a disciplined way with strategy, we want you to be able to build your personal balance sheet also.”

Links

Sound Financial Group’s Website for a Financial Inquiry Call - [email protected] (Inquiry in the subject)

Sound Financial Group on Facebook - @SoundFinancialGroup

Sound Financial Group on LinkedIn

Ben Stein Video 

The Fallacy of the 4%

6 Wealth Factors

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