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
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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
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]]>A summary of things you should know about Build Your Money Muscles according to Joan Sotkin: Introduction In this episode Joan Sotkin takes a deep dive into her book, BuildRead More
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]]>In this episode Joan Sotkin takes a deep dive into her book, Build Your Money Muscles, where she shares 9 simple exercises for improving your relationship with money.
In her book Sotkin provides a common sense, step-by-step guide that will create an achievable pathway to financial security and prosperity through personal growth rather than quick fixes. The goal of the book is to help you build a secure financial base, understand why you are struggling with money, manage money more healthfully, and climb out of any financial slump.
This book is perfect for entrepreneurs who have a hard time managing personal finances and want a natural approach to becoming financially happy with their money.
There is nothing quite like it because of the depth that I go in to about emotions and money. It’s very practically and really helps you get in touch with yourself and not just your money.
It’s good to read straight through and then go back as you feel needed.
I like the idea that your emotions are behind your behaviors and to understand that there are no good or bad emotions. They are just emotions and habits and whatever those habits are they can change.
If you read the book and do the exercises I can promise you that your ideas about money and yourself are going to change and improve because your money is really an extension of who you are. If you want to change your money there is an awful lot that has to change internally.
The book is structures in to two parts. The first is preparation for financial change and the second part is working towards a new financial identity. You can’t just dive in and expect to change your life very quickly and dramatically and not have resistance.
Exercise one is conditioning yourself for change and the idea is to be able to recognize the discomfort that comes with change so you don’t give up and walk backwards. Then there is developing financial awareness which is about overcoming financial vagueness syndrome. The idea is to become more financially aware and not to be afraid at looking at your numbers. Exercise three is identifying financial patterns and underlying emotional themes. There is a chart in that exercise which outlines what I call the five main feelings that people act out through their money. These five feelings are anger, shame, deprivation, aloneness, and a since of being trapped. So the chart shows you what you are probably feeling underneath the behaviors because the theory in the book is that you create your life stories with emotions as the creative force. So by understanding your emotions you can understand your behaviors and you don’t have to have a good emotional vocabulary in order to do what I talk about in the book. The fourth exercise is setting attainable goals. A lot of people will set goals that are so far beyond what the position they are in now and it paralyzes them and they wind up doing nothing.
In the second part, which is the healing part, exercise five is replacing unproductive financial thoughts. This helps you look at the voices you hear in your head and what you believe about money. Exercise six is adopting functional financial beliefs. There is a great chart in this chapter where it shows the beliefs that are holding you back and ones that are going to work instead. Exercise seven is cultivating healthy money feelings. Once you learn to recognize these feelings that are behind your money you need to learn what to do to change the programing in your brain. Exercise eight is establishing responsible behaviors and includes how you have to adapt to these behaviors. The final exercise is improving your relationship with yourself and others which is about connecting and learning to trust yourself.
NOTE: That was just a summary. To get the full deep dive, play the audio clip at 03:56
“Money represents the energy of relationship and the way individuals handle money reflects how they deal with their relationships with themselves and others.” – Joan Sotkin
I started out in life on the lower end, I had two very successful brothers and I could barely make it. I was sick emotionally, financially, and it’s been a journey. I love to share what I’ve learned along the way and I’ve been on the internet since 1995 doing just that.
I really like sharing what I learned and I saw that a lot of financial books were either heavy on the mindset piece or they were very hardcore how to count your money and handle cash flow books. I wanted something that combined both because that’s what I saw had to be done.
Be Here Now by Ram Dass
The Power of Now by Eckhart Tolle
Buy Build Your Money Muscles by Joan Sotkin on Amazon today
Visit ProsperityPlace.com to learn more about Joan and her podcast
Follow Joan Sotkin on Facebook and Twitter
Download the full transcript here (coming soon)
Listen on iTunes, Stitcher , and SoundCloud
Related books:
The Financially Savvy Entrepreneur by Emily Chase Smith
Live Richer Challenge by Tiffany Aliche
From Worry to Wealthy by Chellie Campbell
Relevant advice and tips:
5 Personal Wealth Management Tips For Financial Stability
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 The Financially Savvy Entrepreneur according to Emily Chase Smith Introduction In this episode Emily Chase Smith provides small business owners with aRead More
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]]>In this episode Emily Chase Smith provides small business owners with a step-by-step guide to staying financial healthy. In her book, The Financially Savvy Entrepreneur, Chase Smith shows you how to save your financial system from crumbling by teaching you to understand how an entrepreneur’s financial decisions are different from others and to establish a business that can stand on its own financially. This book is perfect for the entrepreneur who is searching for a clear process for avoiding the financial consequences that derail so many small businesses.
There is a lot written on personal finance but I wasn’t finding what I needed for the small business person that really addresses the reality of what they are going through in terms of building a business and trying to dovetail that with their personal life. When your business is really small, what’s going on in your business and your personal life are intricately linked. I wasn’t finding anything that I was seeing on a daily basis with my clients.
There are financial systems that are necessary in your business no matter what size it is and if you are serious about your business that is a necessary thing to learn. I am a firm believer that if you can run a small business, you’ve got this, but it’s not something you have ever been taught. I went all the way through law school and nobody ever taught me any of this stuff, this was information I went and sought out on my own. I think small business owners will be very well served by putting some effort into having that financial savvy because it’s the gift you get to keep your whole life.
This book is directed towards someone who is probably five million in business and who is trying to understand how to bring some financially savvy principles into their business. I start out by laying out how we are different from the regularly employed people and why everything out there on personal finance doesn’t apply to us. We talk about how much time you have to make this business really fly based on the resources you have at hand. We break out what those resources might be, start to put some numbers to them and start to look at how long you have.
There are a couple chapters that talk about exactly what you should be doing with the finances. We talk about how to look at the numbers and how can that help you guide your business.
There is a whole section on drafting and exit plan. I am a firm believer that when you start a business you should know how far you’re willing to go in terms of time, money and effort. The act of just writing those things out is very healthy and hopefully you won’t have to come close to those markers but you know what those are.
We talk about cash flow projection in the book and how to do that. We have a whole section in the book that I call money spaghetti, that idea of entanglement. We identify where you are vulnerable and put together a plan to extricate yourself. And because of my background we talk about debt settlement, negotiation and there is a part on bankruptcy.
“It’s not my quote but I love the concept. “Everything should be made as simple as possible, but no simpler.” – Albert Einstein
I come from an entrepreneurial family; my great grandparents were self-made citrus farmers in Santa Barbara California, my dad has been a self-employed architect for many years and I’m an attorney by education and trade. I morphed that through the experiences I’ve had over the years into being a financial educator for small business.
I had a heavy influence in my legal practice in the area of bankruptcy and I worked primarily with small business owners filing personal bankruptcies. With that I had the chance to be up close and personal in peoples personal and business financial lives. I did this for many years and after a while I started to see some of the same patterns occurring over and over again which was really hard to watch. Working with smart entrepreneurs I realized that if they just had some simple symptoms in place, a lot of them wouldn’t be sitting in my office needing me to file a bankruptcy.
48 Days to the Work You Love by Dan Miller
Buy The Financially Savvy Entrepreneur by Emily Chase Smith on Amazon today
Visit EmilyChaseSmith.com to check out Emily’s blog and podcast
Follow Emily Chase Smith on Twitter and Facebook
Download the full transcript here
Listen on iTunes, Stitcher , and SoundCloud
Related books: Profit First: A Simple System to Transform Any Business from a Cash-Eating Monster to a Money-Making Machine by Mike Michalowicz | Zero to One by Peter Thiel | The Millionaire Master Plan by Roger Williams
Relevant advice and tips: Top Financial Mistakes Entrepreneurs Make When Creating a New Business
What did you like and not like about this episode? Fill out this one minute survey here.
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