Building Wealth While Building a Brand
Radon Stancil - Peace Of Mind Wealth Management
Radon Stancil, CFP, is a best-selling author and The Founder of Peace of Mind Wealth Management, a firm committed to helping individuals retire with excellence. As the Co-host of the ‘Secure Your Retirement’ show his insights have been featured in Forbes, Newsweek, Fox, ABC, NBC, and the Wall St Journal. With over 25 years of experience, Radon is an award-winning advisor who is highly sought after to work with executives, business owners, engineers, pharmaceutical professionals and more.
First of all…we get so focused on saying ‘I’m just going to reinvest in the company…’…in addition to that, you’ve gotta make sure you’re setting aside something for yourself.
Down the road…all you have is a big company…and unless you can sell it and get something back out of it, it’s really not gonna help you for retirement.
You need to have a cash reserve…6 months at the bare minimum…than…Roth IRA…
With a Roth, I can pull the money back out. I just can’t touch the growth…
You can also build your own…401K
In my head I thought, I’m a small business. I might need capital. If I put money into my 401K and I need that capital, I’m gonna pay a penalty to get that back out. So I did my order the way I just described to you.
From a finance standpoint, there’s no advantage (LLC, DBA). There is one on that S Corp because you can pay yourself an income…and not pay some of that tax.
I never wanted to have to put money back into the company….I don’t think you should take distributions…leave enough of operating capital in your corporation…so that you don’t have to pull from savings.
I always make sure I’ve got at least 3 months of operating capital in my corporate account…
I have 3 months of operating capital to run the company. Now, part of that might be paying me. But then I’ve got my personal…there I need 6 months.
…If push comes to shove, typically a small business owner will pay everybody but themselves…so what if you had to go two months…and I can’t pay myself. But I’ve got my personal savings that say’s I can survive…
That’s the juggling act…but you’ve got the big picture in your head…
I think everybody needs an advisor. What I mean by that is, I’m a financial advisor, but I still need advisors. I have business coaches. Every single year I make it a rule that I have to have somebody in my life that’s telling me what I need to do to do better…mastemind groups, coaching programs. Every year I have to be in two or three…
A financial advisor can help you work along with your CPA to set things up…you then need to have the money managed. And if that’s not what you do then I don’t think you need to be doing it.
I think you have an advisor so you can concentrate on what you know how to do best.
If you’re starting to hit your goals…how do I structure that…I’d say sooner than later (hire an advisor)….As soon as you can do it. Do it.
Small business owners…don’t have as much of a retirement goal. They’ve got more of a time goal…I want to get to a point where I don’t have to come into the office everyday. I want to get down to a two day work week…whatever that is….and I want to hit that much earlier than 65…and it’s the easiest part of my business career because I have all the things that I’ve built…So unless I sell…I don’t really have a retirement goal.
Whatever your goal is, think that way….because it may be different.
Just think about time and compound effect. If a person is starts at 20 and they go to 65, they can save $1M with just some growth and a very small amount of money. I’m talking $100 or so dollars a month….The longer we wait…we have to save a much larger amount of money in order to catch up.
The earlier you can save, the better.
There’s lots of online calculators. You just have to be careful about how you’re calculating it…
Our average client today…lives on between $5-$8 thousand dollars a month net.
First, determine what you think your needs are going be in retirement….what would I dream out that I would want?…If everything was paid off, what do I want coming in the door in today’s dollars?
The big thing is, try to save as much as you can save and try to have goals there.
There’s a blunt answer to this. It’s usually…comes down to overspending vs wether or not you can afford it.
Whatever your story is, don’t use the excuse I don’t make enough money.
I’ve got clients that are millionaires and they are teachers…I actually have one client that had 3 children, a wife who did not work, he was a schoolteacher. I think at the time he made about $42K a year and they saved money every single month…It all came down to their choices…
To me life insurance is a personal choice, but an easy way to take care of the ‘unknown’ scenario.
We think about a business plan for our business. I think you need to have a personal plan for yourself…Don’t fool yourself saying I’m gonna put everything back into the business. Operate the business with the mentality of it needs to pay you.
If you’ve got it in a plan. It’s a plan. If you’re shooting from the hip, it’s not….otherwise you’re gonna get down to the end of 5 years and say I don’t know what happened to everything.
The personal plan says I have to make money doing this otherwise it’s an expensive hobby. It’s not a business.
The podcast we talk from three different sides…financial…legacy…and lifestyle…Just like you would have a business plan or a personal plan, you need a retirement plan…what am I going to do?
One of my favorite episodes…episode 83 ‘liberating your life for retirement’
Live a balanced life.
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