In my experience, financial planners and entrepreneurs see the world from completely different perspectives. And they each think the other is a little bit crazy. For example, financial planners think entrepreneurs love risk; whereas entrepreneurs wonder why anyone would take the risk of putting money into the stock of companies you don’t know, understand or control. It is difficult enough to keep up with everything going on in the boardroom of one company, let alone a diversified portfolio with hundreds of companies.
Here’s another example: financial planners look at where your finances will be when you hit age 65, whether that’s in 10, 20, 30 years or more. Entrepreneurs, by contrast, focus on cash flow over the next few weeks, months and a handful of years at most.
It’s predicaments like these that prevent entrepreneurs from ever getting their finances in order at all.
When entrepreneurs do reach out to financial planners for help, they’re given the same advice as everyone else -- take money out of your business and invest it in a qualified plan like an IRA or 401(k). Never mind that entrepreneurs have risks, tools and advantages that “everyone else” does not.
The typical financial planner may not appreciate this, but for entrepreneurs, personal finance is a whole different animal. The rules are different and there’s more at stake.
Here’s another example: financial planners look at where your finances will be when you hit age 65, whether that’s in 10, 20, 30 years or more. Entrepreneurs, by contrast, focus on cash flow over the next few weeks, months and a handful of years at most.
It’s predicaments like these that prevent entrepreneurs from ever getting their finances in order at all.
When entrepreneurs do reach out to financial planners for help, they’re given the same advice as everyone else -- take money out of your business and invest it in a qualified plan like an IRA or 401(k). Never mind that entrepreneurs have risks, tools and advantages that “everyone else” does not.
The typical financial planner may not appreciate this, but for entrepreneurs, personal finance is a whole different animal. The rules are different and there’s more at stake.
The entrepreneurs faces more risk.
As a business owner, you face far more risk than the typical W-2 employee. If someone gets hurt at your physical location, you could be liable. If an employee is running an errand and gets in an accident, you’re responsible. Fortunately, liability insurance is affordable, but a financial planner who’s used to working with W-2 employees may not even know to recommend it.
Another important risk-management tool is liquidity. Financial planners often overlook liquidity because there’s no commission for recommending it, but liquidity is critical for business owners.
For example, when W-2 employees are low on money, at least they only have themselves and maybe their family to worry about. When business owners are low on money, they have to worry about themselves, their family and everyone on their payroll.
That’s just one reason why prematurely taking money out of your business to invest in the markets can be dangerous. It’s wiser to first build a “war chest” where you store cash that’s immediately accessible if you need it. hat way if your business hits hard times, you won’t have to finance payroll on your American Express at 18 percent interest. Even a simple savings account will do the trick.
Another important risk-management tool is liquidity. Financial planners often overlook liquidity because there’s no commission for recommending it, but liquidity is critical for business owners.
For example, when W-2 employees are low on money, at least they only have themselves and maybe their family to worry about. When business owners are low on money, they have to worry about themselves, their family and everyone on their payroll.
That’s just one reason why prematurely taking money out of your business to invest in the markets can be dangerous. It’s wiser to first build a “war chest” where you store cash that’s immediately accessible if you need it. hat way if your business hits hard times, you won’t have to finance payroll on your American Express at 18 percent interest. Even a simple savings account will do the trick.
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A retirement savings plan with liquidity for business owners
Advanced Savings Concepts has designed in unique retirement savings plan that uses a form of life insurance to shelter your retirement savings from market volatility while providing you with tax free access to your cash for business cash flow. Financial planners have been doing this for over 50 years. However, we have discovered a way to properly design and manage the investment that makes it unlike anything you will read about on the Internet. This retirement savings plan can provide you with a minimum guaranteed return and the earning potentials of as much as 35%. The amazing feature about this retirement savings plan is that you get to choose the amount of risk in proportion to the amount of potential return you want. Our clients were protected from the market crash of 2008 and have enjoyed an average double digit return over the past five years.
To find out more about the power of this amazing retirement savings plan go to www.advancedsavingsconcepts or email me at advancedsavingsconcepts@gmail.com
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