Your Iconic Image : How to Build 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 \u2018Secure Your Retirement\u2019 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\u2026we get so focused on saying \u2018I\u2019m just going to reinvest in the company\u2026\u2019\u2026in addition to that, you\u2019ve gotta make sure you\u2019re setting aside something for yourself.
Down the road\u2026all you have is a big company\u2026and unless you can sell it and get something back out of it, it\u2019s really not gonna help you for retirement.
You need to have a cash reserve\u20266 months at the bare minimum\u2026than\u2026Roth IRA\u2026
With a Roth, I can pull the money back out.\xa0 I just can\u2019t touch the growth\u2026
You can also build your own\u2026401K
In my head I thought, I\u2019m a small business.\xa0 I might need capital.\xa0 If I put money into my 401K and I need that capital, I\u2019m gonna pay a penalty to get that back out.\xa0 So I did my order the way I just described to you.
From a finance standpoint, there\u2019s no advantage (LLC, DBA).\xa0 There is one on that S Corp because you can pay yourself an income\u2026and not pay some of that tax.
I never wanted to have to put money back into the company\u2026.I don\u2019t think you should take distributions\u2026leave enough of operating capital in your corporation\u2026so that you don\u2019t have to pull from savings. \xa0
I always make sure I\u2019ve got at least 3 months of operating capital in my corporate account\u2026
I have 3 months of operating capital to run the company.\xa0 Now, part of that might be paying me.\xa0 But then I\u2019ve got my personal\u2026there I need 6 months.
\u2026If push comes to shove, typically a small business owner will pay everybody but themselves\u2026so what if you had to go two months\u2026and I can\u2019t pay myself.\xa0 But I\u2019ve got my personal savings that say\u2019s I can survive\u2026
That\u2019s the juggling act\u2026but you\u2019ve got the big picture in your head\u2026
I think everybody needs an advisor.\xa0 What I mean by that is, I\u2019m a financial advisor, but I still need advisors.\xa0 I have business coaches.\xa0 Every single year I make it a rule that I have to have somebody in my life that\u2019s telling me what I need to do to do better\u2026mastemind groups, coaching programs.\xa0 Every year I have to be in two or three\u2026
A financial advisor can help you work along with your CPA to set things up\u2026you then need to have the money managed.\xa0 And if that\u2019s not what you do then I don\u2019t 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\u2019re starting to hit your goals\u2026how do I structure that\u2026I\u2019d say sooner than later (hire an advisor)\u2026.As soon as you can do it.\xa0 Do it.
Small business owners\u2026don\u2019t have as much of a retirement goal.\xa0 They\u2019ve got more of a time goal\u2026I want to get to a point where I don\u2019t have to come into the office everyday.\xa0 I want to get down to a two day work week\u2026whatever that is\u2026.and I want to hit that much earlier than 65\u2026and it\u2019s the easiest part of my business career because I have all the things that I\u2019ve built\u2026So unless I sell\u2026I don\u2019t really have a retirement goal.
Whatever your goal is, think that way\u2026.because it may be different.
Just think about time and compound effect.\xa0 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.\xa0 I\u2019m talking $100 or so dollars a month\u2026.The longer we wait\u2026we have to save a much larger amount of money in order to catch up.
The earlier you can save, the better.
There\u2019s lots of online calculators.\xa0 You just have to be careful about how you\u2019re calculating it\u2026
Our average client today\u2026lives on between $5-$8 thousand dollars a month net.
First, determine what you think your needs are going be in retirement\u2026.what would I dream out that I would want?\u2026If everything was paid off, what do I want coming in the door in today\u2019s dollars?
The big thing is, try to save as much as you can save and try to have goals there.
There\u2019s a blunt answer to this.\xa0 It\u2019s usually\u2026comes down to overspending vs wether or not you can afford it.
Whatever your story is, don\u2019t use the excuse I don\u2019t make enough money.
I\u2019ve got clients that are millionaires and they are teachers\u2026I actually have one client that had 3 children, a wife who did not work, he was a schoolteacher.\xa0 I think at the time he made about $42K a year and they saved money every single month\u2026It all came down to their choices\u2026
To me life insurance is a personal choice, but an easy way to take care of the \u2018unknown\u2019 scenario. \xa0
We think about a business plan for our business.\xa0 I think you need to have a personal plan for yourself\u2026Don\u2019t fool yourself saying I\u2019m gonna put everything back into the business.\xa0 Operate the business with the mentality of it needs to pay you. \xa0
If you\u2019ve got it in a plan.\xa0 It\u2019s a plan.\xa0 If you\u2019re shooting from the hip, it\u2019s not\u2026.otherwise you\u2019re gonna get down to the end of 5 years and say I don\u2019t know what happened to everything. \xa0
The personal plan says I have to make money doing this otherwise it\u2019s an expensive hobby.\xa0 It\u2019s not a business.
The podcast we talk from three different sides\u2026financial\u2026legacy\u2026and lifestyle\u2026Just like you would have a business plan or a personal plan, you need a retirement plan\u2026what am I going to do? \xa0
One of my favorite episodes\u2026episode 83 \u2018liberating your life for retirement\u2019
Live a balanced life.
The book \u2018The Present\u2019
I\u2019d love to go to South Africa and Austrailia
Hair and a day planner
Secure Your Retirement podcast
Audio : Ariza Music Productions