A summary of things you should know about How Much Money Do I Need To Retire? according to Todd Tresidder: Introduction In this episode personal finance expert, Todd Tresidder takesRead More
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]]>In this episode personal finance expert, Todd Tresidder takes a deep dive into his book, How Much Money Do I Need To Retire?, where he shows you how to start your retirement savings.
In his book Tresidder argues that the conventional approach to retirement planning is flawed and reveals a much more stable formula for calculating the amount you need to save for retirement. The goal of the book is to teach you ways to spend less while improving your life, how to reduce the amount you need to retire, 3 models for estimating your retirement needs, and how to not run out of money.
This book is perfect for entrepreneurs who are within 5 – 7 years of retiring and need help figuring out exactly what it will take to ensure they are financially safe for retirement.
Most books about this topic come at it from an assets approach. Although I think that’s important, that’s only a small portion of what’s to be learned.
It’s designed to be read from front to back because I start with the traditional model and then I explain alternative models.
I want the reader to understand that there is no magic number. You need to recognize that everything is an estimate and your retirement planning is an iterative process, it’s worth doing to get a generalized goal but understand that it’s a range of outcomes. There is no definitive number and you will work with your retirement number throughout your retirement as numbers come in.
The whole first half of the book is all about the traditional model but I take it a whole cut deeper. So you start with the traditional approach which is using the retirement calculator, you plug in all these assumptions, but then I take you through the assumptions one by one and explain why they can’t be made properly. For example one of the assumptions is life expectancy, nobody knows when they are going to die that’s an impossible assumption to make. Or an investment return, nobody has any idea what their investment return will be over the next 30 years, it’s a guess at best. So I go through these assumptions one by one and I help you create a range of viable values and help you to understand how to work with that assumption in a constructive way.
From there we build a confidence interval using a traditional approach called The Assets Base approach.
Then the book goes through what I call Lifestyle Planning for Retirement and this is where you can start having breakthrough results. And the whole premise here is that for every one thousand dollars per month you spend in retirement, it requires anywhere from three hundred to four hundred thousand dollars in assets to support it. You will find that there are a lot of different ways in which you can redesign your life so it can be every bit as fulfilling or more fulfilling at a fraction of the cost. This is what I call Lifestyle Planning around retirement and it’s a great way to make ends meet if they don’t already.
In the third part of the book we discuss what I call Cash Flow Base Retirement Planning. In this second I point out that really retirement or financial independence at any age is about cash flow exceeding expenses. So then we go into cash flow base models and it’s a complete turnaround in the approach to retirement planning.
NOTE: That was just a summary. To get the full deep dive, play the audio clip at 06:28
“The only function of economic forecasting is to make astrology look respectable.” – John Kenneth Galbraith
I have a background in hedge fund investing. I came out of college and I had a crazy idea that I could make money from investing statistically or mathematically without actually knowing the investments themselves. My two icon investors were my professor and father and they both told me it wouldn’t work but despite their opinion I was sure it would and I was right. I was one of the early pioneers of the hedge fund business and so I was able to “retire” at age 35. After retirement I decided to take the knowledge that I had and share it with others. This led me to build a company called Financial Mentor which is an advanced education website that is geared around wealth building. This website is focused on people who are past the basics and ready for the next step.
The inspiration was my coaching clients. Since I was coaching people on how to build wealth the number one question was how much money do I need and so I wrote the book on this subject because nobody else had done a proper job at it.
The War of Art by Steven Pressfield
Buy How Much Money Do I Need to Retire by Todd Tresidder on Amazon today
Visit FinancialMentor.com to learn more about Todd and his work
Follow Todd Tresidder on Linkedin and Twitter
Download the full transcript here (coming soon)
Listen on iTunes, Stitcher , and SoundCloud
Related books:
You Can Retire Sooner Than You Think by Wes Moss
The 5 Years Before You Retire by Emily Guy Birken
Get What’s Yours by Larry Kotlikoff
What did you like and not like about this episode? Fill out this one minute survey here.
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]]>A summary of things you should know about Cash Flow Diary according to J. Massey: Introduction In this episode investment expert J. Massey takes a deep dive into his book,Read More
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]]>In this episode investment expert J. Massey takes a deep dive into his book, Cash Flow Diary, where he discusses 10 steps to creating wealth in any economy.
In his book Massey provides a roadmap of successful investment strategies in real-estate while taking readers along his personal journey into becoming a super successful real estate investor. The goal of the book is to teach you the ups and downs of real-estate investing, how to negotiate with real-estate brokers, how to solve typical real-estate challenges, and how to build wealth with retirement plans.
This book is perfect for entrepreneurs who are interested in real-estate investing to build passive income and are looking for lessons from someone who succeeded from the ground up.
People tell me what makes my book different is the amount of quality information that they have heard is available for many thousands of dollars elsewhere. My book is not just the information it’s the actual instruction of what to do with it and how to interpret it.
You can skip around to the different chapters that pertain to you most however I always recommend you go through it completely first.
It’s not about you, wealth is a team sport.
One of the most important concepts in the book is literally how to fail and I believe that this is one of the things our education system fails to prepare us for. Most of us don’t know how and you’re going to experience failure, in fact if you haven’t experienced failure then you haven’t tried something that is challenging to you enough. And you must learn to do three things, fail forward, fail fast, and fail frequently. At failing to do that you rarely see success and I share with you some of the largest failures I’ve gone through. I want you to understand that they are normal and I give you the ways to get through them. Not only that but I also want you to understand that your business can have a mission and that’s one of the things that I get excited about. The number one skill that I see missing today are interpersonal skills and as entrepreneurs we must develop and get better at this skill. It starts with our team and then our customers. I literally put in the book the 10 steps required to create wealth in any economy. We have broken down the steps so that you can begin from reading the book, taking the action steps, and putting your vision out there into the marketplace and actually making it happen.
NOTE: That was just a summary. To get the full deep dive, play the audio clip at 05:45
“Move at the speed of instruction.” – J. Massey
After facing some difficult situations in both my life and my wife’s I decided I needed to do something about it and wanted to provide more for my family. It was during that time that I decided to become a real estate investor and that was when self-employment failed for me. Today, through the service I offer, I am able to spend a majority of my time with my family which was my goal all along.
I was inspired to write it because I kept getting the same questions over and over again. I didn’t know how to keep answering them differently plus the book can be in more places than I can. Cash Flow Diary exists simply because I wanted to document this process for my kids.
Awaken the Giant Within by Tony Robbins
Buy Cash Flow Diary by J. Massey on Amazon today
Visit CashFlowDiary.com to learn more about J. Massey and his book
Follow J. Massey on Facebook and Twitter
Download the full transcript here (coming soon)
Listen on iTunes, Stitcher , and SoundCloud
What did you like and not like about this episode? Fill out this one minute survey here.
The post A Preview of Cash Flow Diary with J. Massey appeared first on The Entrepreneurs Library.
]]>Once an entrepreneur has become established and they have built their business to a point where it can become self-sufficient or the infrastructure is strong enough to withstand a transferRead More
The post 5 Questions Entrepreneurs Should Ask Before Exiting A Business appeared first on The Entrepreneurs Library.
]]>Once an entrepreneur has become established and they have built their business to a point where it can become self-sufficient or the infrastructure is strong enough to withstand a transfer of power, there are many questions that should be asked. Exiting a business that you have built is not a decision that should be made quickly, so take a moment to ponder the following questions before making a choice that could adversely affect your destiny.
Here are the top questions some authors on exit planning suggest entrepreneurs ask before exiting a business:
Entrepreneurs often make the mistake of stepping away from their business too quickly, before the business has had a chance to grow to a point where exiting is feasible. Most business experts recommend taking at least two years to properly evaluate the marketplace and their business’ place in the landscape. Business trends that can torpedo everything you’ve built can emerge seemingly overnight and scuttle even the best laid plans.
In order to get the best sale price for your business or pass it down to the next person in line, you need to be able to show all of the correct paperwork. Entrepreneurs will often try to execute a rapid transfer, but you need a great deal of time to ensure that your exit goes smoothly. If you are planning on being able to exit your business within a month or two, you should reconsider this plan.
Putting together the correct plan for exiting your business takes years of careful preparation. Do not allow yourself to be swayed by those who present you with plans that entail walking away in a more expeditious fashion.
Before you exit your business and pass it on, you should know what members of your current team are going to remain in place after the transition has been made. You will also need a team that can help you through the transitional period. This means hiring experienced business attorneys, accountants and appraisers. If you are inexperienced in these matters (and even if you aren’t), you should bring in a consultant to provide valuable advice.
Having a team to guide you through the process of exiting your business gives you the help you need in avoiding a variety of common pitfalls. You should also know which members of your current team wish to remain on board after the transition period has been completed. Some team members may wish to exit as well, in order to pursue new opportunities. Others may decide that they wish to remain a part of the company, but may be concerned about potential changes to their role.
In the business world, certain periods are much more tumultuous than others. As a result, the timing may not be right for you to step away from the business that you carefully shepherded through its infancy and watched grow into what it has become. A lot of entrepreneurs choose the wrong times to sell their business or hand it down to the next person in line.
If you are trying to exit your business during a period of decline, don’t. In order to think like a true entrepreneur, you must strike when the iron is hot. The best time to exit your business is when things are on an upswing. Stepping away when you are at the peak of your powers is incredibly difficult, but necessary.
When you decide to remain at the helm during a period of prosperity, this is thinking with the mind of a business owners, not the mind of an entrepreneur. Make sure the timing is right before handing your company off to the next person.
Is whoever you are passing your business down to ready to handle the responsibility? Is there a strong infrastructure in place that will allow them to succeed, even after you are gone? A business that has become entirely too dependent on its owner is one that is doomed to failure, should they ever decide to exit.
The best businesses are the ones that can still run at maximum efficiency if the owner is not there. Take a moment and consider times in the past when you decide to step away. When you have gone on vacation, was the company able to run properly or were there a variety of hiccups? Or were you never able to go on vacation because you were worried about potential complications?
No one wants to see everything they have worked for crumble the moment they step away. So make sure you know for certain that the business can continue to thrive and grow without your constant presence.
After control of the business has been transferred over, the new executive or executives may need your help to ensure that the transition goes smoothly. Are you willing to remain on board, albeit in a smaller, more advisory type of role? The person who you are handing the company down to could want your help and they may have a certain level of trepidation during the early going.
Before exiting your own business, be sure that the new regime has the ability to hit the ground running. If not, then you may need to stay attached for a little while so that the transition period is not as rocky. Staying on and becoming a consultant can help ease the growing pains for whoever you are passing your company down to.
Finish Big by Bo Burlingham
The Exit Strategy Handbook by Jerry Mills
Sell Your Business for More Than It’s Worth by Michelle Seiler-Tucker
Final Act of Onwership by Jerry Baltus
The Art of Resignation by Steven Feiner
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]]>A summary of things you should know about Finish Big according to Bo Burlingham: Introduction In this episode Bo Burlingham takes a deep dive into his book, Finish Big, whereRead More
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]]>In this episode Bo Burlingham takes a deep dive into his book, Finish Big, where he discusses how great entrepreneurs exit their companies on top.
In his book Burlingham dissects dozens of interviews he made with entrepreneurs that have left their companies and pieces together actionable information that all business owners must know about creating a solid exit plan. The goal of the book is to help you find the right time to exit a business, overcome the stress of leaving a company, and leave your company in better shape.
This book is perfect for seasoned entrepreneurs who are close to meeting all their business goals and are ready to start planning an exceptional exit from their organization.
There are very little amount of books out there on exiting your business and the ones that are out there are all about the financial side of it. This book focuses on the emotional side of things after exiting your business. There are true stories of people who have sold their business and explain what they went through good and bad.
I tried to set the book up so that the reader could jump and in out where needed but you can also read straight through.
If it was only one thing that you could take out of the book I would say it is that you need to start preparing for it early. There is no point that is too early to start preparing and thinking about your exit.
What you will find throughout the book is stories of real people having real experiences in exiting their business.
The introduction is the story of how the book came to be written. I wanted to know the difference between a good exit and a bad exit and in order to do that I had to figure out what a good exit was. I came up with five qualities of a good exit and one is that at the end of the process you feel as though you’ve been fairly treated and appropriately rewarded for the work that you did in building the business. Number two is that you have a sense of accomplishment and you can look back with pride on what you did when you had the business. Number three you are at peace with what has happened to the other people who were on the journey with you. Number four is that you have a new sense of purpose outside the business. And finally it is important to some that the company is still thriving without them.
Chapter one begins with a story of a very good exit and the title of the chapter is Every Journey Ends. You must think about your experience as a business owner as a journey and it’s a journey that has a beginning, middle, and an end. Building a company is the middle of the business and the end of the business is when you decide to leave that company. The other thing I want people to understand is the exit is a phase of the business and not an event. You have the startup phase, you have the growth phase, you have the maturity phase, and you have the exit phase. There are four stages to the exit stage; the first one is what I call the exploratory phase which is when you are educating yourself about what the possibilities are. The second stage to the exit phase is the strategic phase which is when you have an idea of the kind of exit you want and you go about building into your company the qualities that are going to allow you to have that kind of an exit. The third phase is the execution phase, when you actually go out and look for a buyer. Most people start at the third phase without going through phases one and two and it’s a huge mistake. The fourth phase is the most difficult and that’s the transition phase. That’s after you’ve sold the business, what happens between the sale of the business and whatever comes next.
When I looked at the difference between the good and bad exits I came up with seven and a half factors and I really structure the book around those factors. So chapter two is titled Who Am I If Not My Business and it’s about the importance of knowing who you are, what you want, and why. This is something that I have found over and over again in all the years that I have been covering entrepreneurs. Those who do best in terms of building a business and do best in terms of exiting a business have worked very hard on trying to figure out who they are, what they want, and why. The second factor has to do with building a company that’s sellable and what I mean by that is one you can sell when you want, to whom you want, at a price you want. There is something called a forced sell and that happens when something you totally don’t foresee comes along when you have a very good company and all the sudden something happens that catches you by surprise and then you are forced to sell it. It’s very important to understand what a sellable business is and I write about the eight factors that go into it and I also give you other places to go to learn about building a sellable business. The third factor has to do with time. Most business owners do not give themselves anywhere near enough time to do the preparatory work and when I talk about time I am talking in terms of years, not months. The fact is there is no point too early to start at least the exploratory phase and you can do that even before you start the company. The next point is related to not having enough time and that’s about having a successor. And for a lot of people you need to give yourself a lot of time to have a successor.
Chapter six has to do with making sure you get the advice you need and I make a very strong case in here for making sure you have a guide who has been through himself or herself before. These guides have a perspective on it that is different from the perspective you will get from an exit professional because they know the exit doesn’t end with the deal. It’s not over for the business owner and you need somebody guiding you who will understand that. The next factor has to do with what happens to the other people who you’ve been on the journey with. Nobody builds a company alone and you need to be at peace with whatever is going to everyone else who has been with you on the journey.
The sixth factor is what I call Let the Seller Beware. If you are selling a business it’s easy to forget that the buyer is also selling themselves, they are selling themselves that they are going to be a good owner of the company. It’s very important to understand why the buyer wants your business.
The final chapter is called Over The Rainbow and after the sell itself which is sometimes the hardest part. I’ve realized in writing this chapter that there are a lot of things that people get out of their businesses that they are not aware of until they don’t have them anymore. For example a sense of purpose, an identity, a tribe, a sense of accomplishment, and structure and when you suddenly don’t have those things and you haven’t prepared yourself adequately you can feel totally lost. The people who have really good exits figure out how to get them back and usually, because they have money now, they are able to get it back and do what they did before at a higher level.
NOTE: That was just a summary. To get the full deep dive, play the audio clip at 08:20
“You should build your business as if it’s going to last forever but you could sell it tomorrow.” – Bo Burlingham
I am an editor at-large at Inc. magazine and been on staff for 32 years. I co-authored a couple books and I’ve also written Small Giants.
It began with my sometime co-author Norm Brodsky. I had been writing a column with him in Inc. magazine for almost 20 years now. Back in 2006 Norm decided to sell his company and he and I decided to write about it on a month by month basis. From those writings we got a tremendous amount of reader response and I realized that there was a huge appetite out there for understanding the experience of selling a company.
The Killer Angels by Michael Shaara
Buy Finish Big by Bo Burlingham on Amazon today
Visit BoBurlingham.com to learn more about Bo and his books
Visit SmallGiantsBook.com to learn more about Small Giants
Visit TheKnack.info to learn more about Street Smarts
Visit EvolveUSA.org to learn how Evolve is using Finish Big to build its organization
Follow Bo Burlingham on Facebook and Twitter
Download the full transcript here (coming soon)
Listen on iTunes, Stitcher , and SoundCloud
Related books:
The Exit Strategy Handbook by Jerry Mills
Walk Away Wealthy by Mark Tepper
Selling Your Business For More Than It’s Worth by Michelle Seiler-Tucker
Relevant advice and tips:
7 Important Things You Need To Know When Selling Your Business
What did you like and not like about this episode? Fill out this one minute survey here.
The post A Preview of Finish Big with Bo Burlingham appeared first on The Entrepreneurs Library.
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