the 15 minute round the world intro to financial planning for entrepreneurs: burleson business...

www.hullfinancialplanning.com

The 15 Minute Round the World Intro to Financial Planning for Entrepreneurs: Burleson

Business Builders

Jason HullHull Financial Planning


Who Is This Presentation For?

• Anyone who doesn’t feel like their personal finances are in a rock solid position

• Anyone who doesn’t feel like their business is in a rock solid position

…in other words…

YOU!


What Will You Learn?

• Common personal finance mistakes and how to avoid them

• Ideas for how to squeeze that little bit more out of your budget

• Ideas for how to make your business work for you


Who Am I?

• Army veteran• Founded and sold a software development

company• Financial planner, CFP® candidate• Personal finance columnist, U.S. News &

World Report


Common Personal Finance Mistakes:No Plan

No budget = money controls you• If you don’t have a budget, you’re actually in

the majority (51%) of Americans!*• Don’t overcomplicate– Use a simple spreadsheet– Start with income– Then known “must pay” expenses– Then variable expenses– Don’t forget to save!

http://www.pewsocialtrends.org/2007/02/07/what-americans-pay-for-and-how/306-3/


Common Personal Finance Mistakes:No Plan

No retirement plan = don’t know if or when you can quit

• 4 out of 10 Americans have no plan besides Social Security*

• 30% say they will have to work into 80s to retire; however, 22.5% between 60-84 report employment disability

• Start with the goal and work backwards – expenses in retirement and how much you have to save to get there

http://www.pewsocialtrends.org/2007/01/04/most-americans-moderately-upbeat-about-family-finances-in-2007/


Common Personal Finance Mistakes:Risk Management

The risk ostrich = you may be underinsured• Optimism bias affects future thinking• 70% of people over age 65 require long-term care*• 43% of people who need to use their LTC policies are under

age 64• 10.2% of people age 19-64 can’t work because of disability

or poor health• Look at appropriate term life, disability, and long-term care

insurance– If someone tries to sell you something other than term life, make

them show you quantitative aftcast to show superior performance

http://www.longtermcare.gov/LTC/Main_Site/Understanding/Definition/Know.aspx


Common Personal Finance Mistakes:Retirement Saving

If you save, are you saving enough?• Only 51% save for retirement*• 21% of workers covered by 401(k) don’t participate• IRA limits

– $5,500/year/person– $6,500/year/person if age 50 or older

• 401(k)/403(b)/457/TSP limits– Your contribution: $17,500/age 50+ catchup: $5,500– Total contribution (+ employer contrib): $51,000/$56,500

• Set aside money every month so you don’t have to think about it – automate!

• Think about your future self before making a decision on how much to set aside for retirement savings.

http://money.cnn.com/2012/05/10/retirement/saving-retire/index.htm


Common Personal Finance Mistakes:Investing Mistakes

Fees and timing are your portfolio’s silent killer• DO NOT PAY FOR LOADS IN MUTUAL FUNDS!• Look at 12-b(1) fees• Trying to time the market = -35.8% performance vs value

cost averaging*• In 2012, 89.8% of actively managed stock funds

underperformed their index counterparts• Depending on trading frequency, it takes between 20-25

years to determine skill vs. luck in investing. Do you have that much time to waste on a gamble?

• Value cost average into INDEX funds with LOW FEES.

http://money.usnews.com/money/blogs/the-smarter-mutual-fund-investor/2012/11/05/herd-behavior-hurts-fund-investors


Squeeze More Out of Your Budget

Remove recurring costs you don’t need• Do you need cable TV?– Try Netflix, Hulu, PlayOn, and stations’ websites

• Paying for more cell phone than you need?– Lower minutes– Get Google Voice– Remove landline

• Gym membership you don’t use?– Plyometrics, body weight exercise, home Crossfit



Automate your finances• Set up side accounts– Christmas fund– Home/car insurance fund– Roof/car replacement fund

• Have investments automatically withdrawn• Set up automatic bill pays so you don’t have to

remember when to pay them



DEBT SUCKS• KILL YOUR DEBT OR IT WILL KILL YOU• 46.7% of American households carry a credit card

balance• Pay absolutely everything you can towards debt

(credit card, personal loan, car loan, mortgage)• Look at total interest payments first before

deciding which one to pay down/off – combines psychology and math


The Reality Check of Small Business Often Bounces

*http://smallbiztrends.com/wp-content/uploads/2012/08/survival-by-sector.png


Simple Formula for Succeeding in Business

• You must…• Provide something…• Which other people will pay you for…• That you can provide or produce…• At a profit…• While giving them value.


Make Your Small Business Work

• Who?– Customers want to connect on a personal level.

Make sure that your voice comes through.• What?– Nobody cares about the what. It doesn’t make you

special. It is mandatory, but not differentiating.• Why?– The drive, the passion, what makes you tick. It’s

your purpose and will resonate with customers.



WHY AM I A FINANCIAL PLANNER?

Because I want people to get good advice at a rea-sonable price and not be screwed by unscrupulous salespeople



What's Your Why?

Because …



Who you don’t serve is as important as who you serve

• If you’re everything to everyone, then you’re nothing to anyone

• Trolls should live under the bridge• Create the in-group bias


Small Business and Money

*http://www.flickr.com/photos/84263554@N00/255847189/



Don’t let self-employment tax kill your runway• Create the right corporate structure• Understand the difference between salary and

distributions• Are you taking all the deductions you can?• Don’t let the tax tail wag the business dog


How to Reach Me

• http://www.hullfinancialplanning.com• [email protected]• (817)476-0584

If you want to read more about the topics in this presentation, go to http://www.hullfinancialplanning.com/bbbpres

http://www.hullfinancialplanning.com/

mailto:[email protected]

http://www.hullfinancialplanning.com/bbbpres

the 15 minute round the world intro to financial planning for entrepreneurs: burleson business...

Documents

personal finances

mistakes fees

retirement plan

business work

variable expenses dont

retirement savings

budget ideas

report employment disability