I’ve recently seen a few professionals and some business people who’ve left their wealth building a little too late in life.
They’ve come to me for advice on property investment in their 50’s (and one in his 60’s) saying they left their run late, hoping their business or practice would have provided for their old age.
And now they realise it won’t!
By the way…
Even if you are not an employee or self employed, this blog will be useful for you, because I’d like to share 6 important tips on building wealth independent of your job, profession or business:
1. Risk comes from not knowing what you’re doing, so pay the price to learn what you’re doing!
Sounds obvious I know, but most business owners and many professionals I know are ego driven – that’s what makes them successful in business – but they are uniformed investors.
As you can imagine this is an explosive combination.
They tend to let their business or professional success blind them into thinking that they know more than they really do in the investment arena.
2. Make sure your investment plan matches the financial stage you’re at.
I see many people with a good job, or sound professional or business income invest in what they think are “cash flow” investments.
They don’t really need more cash flow at this stage of their lives – they don’t realise cash flow won’t get them out of the rat race.
What they should be doing is to put their money into capital growth investments that would help them build a substantial asset base – that’s what will get them out of the rat race.
The lesson: make sure your investments match your current financial situation, don’t just follow your old plan that got you to your current position.
Even if it worked brilliantly it may no longer apply to your current situation – that’s because if you have your ladder up against the wrong wall, every step will get you further from your destination.
3. Concentrate your investments in fewer, better deals
There is a cost to every deal, so make sure your deal is meaningful enough to merit the time, focus, and expense.
The wealthiest people believe in concentration of capital.
They become experts by doing the same thing over and over again, rather than one hundred things once.
4. Invest a portion of your time and energy (at least 10 percent) to creating and executing your wealth plan
Building a successful business or profession is obviously going to be a big part of that plan, but it cannot be the only leg to the plan.
Because there will be a day you may no longer have the business.
Either you may sell the business, then you’ll need the skills of how to invest the cash from the sale to generate the passive and passive residual income you need.
Or the business could fail, in which case it will be even more important to have “run some of your money from the table” and have this money invested wisely in a way that ensures your financial future.
Or we’ll have another Black Swan event, a pandemic or X Factor that will be out of your control
The same goes for professionals and employees…
Ken’s wealth plan calls for him to build our business into a great mid-sized Financial Planning and Wealth Advisory firm, but he doesn’t stop there.
He also invests a portion of his time and financial resources in building his family’s investment portfolio.
Like Ken, if you’re a professional or own a business it’s important that you have a wealth plan bigger than just running your business or running your professional practice.
5. Leverage your strengths when looking for investment opportunities
There is a learning curve in mastering any investment vehicle, which is why it is so valuable to leverage the advantages you already have.
Do you know a specific industry and have a network of contacts that give you information advantages?
Of course if you are investing in publicly traded securities you can’t trade on “insider information” – that is information that is not publicly available.
Which is one of the reasons I like investing in property, since I not only get paid for my “insider information” but it’s totally ethical and legal to trade on this privileged information!
Take the example of finance strategist Andrew Mirams, who has been part of the Wealth Retreat faculty for a decade.
Apart from running a successful finance advisory business, Andrew and his wife and have been active and very substantial property investors for many years and have now become property developers .
He can leverage his experience, his network, and his research to supercharge his returns and access some great investments.
What are your advantages?
What contacts, expertise, and experience do you have that you can leverage?
6. You must become your own most trusted investment advisor—no one can do it all for you
Too many business owners make the monumental mistake of thinking that investment success is a matter of choosing the right investment advisor to handle their wealth for them.
It costs them dearly!
Sure you need a great team around you and you don’t need to be (in fact shouldn’t be) the smartest person in your team.
But no one—no one—will be able to manage your wealth like you can.
So while you need good advisors, you need to have the sophistication to filter and use the best of your advisors.
This means you’ve got to invest the time, energy, and money to master the skill of managing your own net worth.
I’ve watched a number of business owners spend 10 years building a multi-million business, then through dumb investment decisions they lose much or all the money they had made with their businesses.
If you want my specific model on how to build your business and your wealth in lock step with each other then join me at Wealth Retreat 2021 on the Gold Coast from June 12th (it’s the long weekend – so no excuses!)
Our faculty will include my business coach Mark Creedon who is also my business partner in Business Accelerator Mastermind.
There will be lots of business people and professionals attending so we have some extra special sessions especially for them including a special session from from Simon Kuestenmacher about some big shifts that all business owners and property investors must understand.
Plus we have a swag of structuring, tax, property, finance and share investment experts.
That’s why I urge you to find out a bit more about Wealth Retreat 2021 by clicking here, where you’ll not only learn from a top faculty of experts (not theorists) but you’ll also meet an instant new peer group of movers and shakers – a group of already very successful investors, business people and entrepreneurs and a number of others who are on the way to achieving the success they’re looking for.
This is very different from other seminars – and it is NOT a motivational seminar – and yes there’s follow up afterwards to ensure you take action afterwards.
And I chat with everyone who would is keen to attend to make sure it is suitable for you.
So who else will be there?
When you chose to join us at Wealth Retreat this year who will your new peer group be?
Firstly this year it looks like around 20% of the attendees have been before.
Some are coming for the second, third or fourth time.
You may ask why do they come back if they are successful. I could say they are successful because they come back.
The second group of attendees are high net worth individuals, property investors and business owners.
They come to grow and nurture their property portfolios by updating their Wealth Plans – you’ll walk out of Wealth Retreat with a structured plan to create Lifetime Wealth and Leave a Legacy.
The the bulk of attendees are experienced property investors with between 2 and 10 properties, who are looking to expand their network and super-size their investing and learn skills and techniques that they would not find elsewhere to enable them to build a property investment business.
Wealth Retreat works so well because each of these groups of people adds something essential to the mix.
But don’t count yourself out!
Every year a few well read beginners join us at Wealth Retreat to shortcut their financial journey by developing an instant peer group of successful people.
This year we will be having special sessions at Wealth Retreat to assist investors with their biggest challenges including finance and empowering them with proven techniques for our changing markets.
Many of the attendees want to learn how to step out of the world of being paid by the hour and into the world of building their own property investment business.
In fact I can think of many past graduates of Wealth Retreat who left their jobs to pursue their passions.
BY THE WAY…
When I observe the most successful participants from Wealth Retreat over time I notice that those people who have “made it” financially all have moved to a place that the money isn’t what motivates them.
Sure they enjoy the money, but it is not their main driver.
Let me explain… money is a sufficiency need.
Once you have enough of it, it ceases to be important.
So what is it beyond the money that pushes and prods and sparks and motivates you to perform at your best and to build and dream and dare?
Maybe you’ll need to come to Wealth Retreat and find out how to pursue your passion.
Please register your interest on line by clicking here, or better still email or call Jo Fitt now on 03 9591 8888, [email protected] to find out more. If you’re interested in coming I’d love to chat with you personally to see if it would be worth your while.
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