When I quit my job in 2006 and started my first business, nobody told me how to save and invest for retirement. There was no longer a 401(k) plan, no matching, and nobody there to help me. Not a single entrepreneurship book I read or seminar I attended even mentioned the word “retirement.” Apparently, everyone who starts a business thinks it will be successful enough to fund their retirement. Unfortunately, in most cases, that’s not true.
After 10 years of self-employment and saving minimal amounts into traditional IRAs, I realized I wasn’t going to be able to retire until at least age 70. Something had to give. Either I’d have to start living off of rice and beans, or I’d have to dramatically increase my investment returns. Since then I’ve been obsessed with investing and retirement planning, and through my research, along with some good (and bad) decisions, I’ve been able to shave almost 10 years off my working life.
If you’re self-employed and you want to retire sooner, wealthier and happier, I can help you. I’m not talking about the traditional 60/40 portfolio that leaves you stuck with the 4% rule for the rest of your life. My passion is helping entrepreneurs to re-frame the way they thing about saving and investing for retirement. I help people to invest in cash-flowing assets that will massively increase returns. I also love to talk about tax-reduction strategies, asset protection, macroeconomics and other financial goodness, along with other info self-employed people need to know as they approach retirement, including social security, medicare, travel, health, longevity and more.
Why are entrepreneurs so BAD at planning and preparing for retirement?
After appearing on Shark Tank, I’ve had the opportunity to speak with hundreds of entrepreneurs about all things business. One thing that is nearly universal is our overall lack of preparedness for retirement. For multiple reasons, we self-employed people are TERRIBLE when it comes to retirement planning.
But it doesn’t have to be painful. It doesn’t have to be terribly time-consuming. We entrepreneurs just need to treat our retirement planning like a business. And that’s where I come in. I can help you create a framework for retirement success, whether you’re just starting or if you’ve been saving for 20 years and need better returns.
Stop hoping that you’ll be able to retire and start planning for it. Who knows? You might actually have fun in the process!
Entrepreneurship talking points:
Shark Tank. What’s it like to be on the show? It’s terrifying. And I, Matt Franklin, am the only Shark Tank contestant to have been punched in the face by another contestant.
Likability as a strategic advantage: No matter how great your product/service is, if you’re not likable, you will not succeed. As you start your business, working on yourself, developing “EQ” (emotional intelligence, or “emotional quotient”) could be the most important asset in your entire business toolkit.
Fledgling inventors – where do I start? Since I was on Shark Tank, I’ve had literally hundreds of entrepreneurs who have product ideas contact me, asking, ‘where to start’ toward getting their product created. My advice often surprises them: 1) Stop worrying about protecting your idea and get going on making it. 2) Find a similar product and find out who manufactures it. 3) Don’t trust your family’s advice/feedback on your product.
Retirement/Finance talking points:
Four reasons entrepreneurs are so bad at retirement planning:
1) The variable nature of self-employment income makes it difficult or impossible to arrange automatic salary deductions like people with real jobs and 401(k) plans can do.
2) They think their business will provide ‘auto-pilot’ income, or they’ll be able to sell it to finance their golden years (when in truth, the MAJORITY of businesses fail by the 10-year mark).
3) They say the “LOVE what they do” so they plan to keep working into their 70s.
4) Nobody teaches entrepreneurs how to plan for retirement. I’ve read dozens of entrepreneurship books, been to seminars, etc. and NEVER was the topic of retirement planning raised. Many entrepreneurs simply don’t know where to start and what to do.
Why a paid off home mortgage is a sign of financial illiteracy:
Currently we’re at the lowest interest rates for 5,000 years. Your home will appreciate the same amount whether you have 20 or 100% equity, so rather than put your money into hibernation in the form of equity, put it to work for you while you pay history’s lowest interest rates on the mortgage. Also, the value of the money you’re borrowing is declining at (arguably) around 5% per year. So that means if you’re paying $1,500 a month today, in 12 years, it will feel like you’re paying $750. Want real rent control? With a 30-year fixed mortgage, in REAL terms, your payment actually goes DOWN every year. And finally, home equity is like putting your money into a savings account that pays no interest and that you have to PAY if you want to make a withdrawal.
Why Dave Ramsey and David Bach’s advice to pay down your home mortgage is DUMB
The gurus will tell you to pay an extra $100 a month toward your mortgage, and you’ll pay it off five years early. Do that and you’ll lose out on at least $85,000 (you would have made if you had just invested that $100 per month instead)
Your two biggest expenses in life. It’s not what you might think: I’ve informally asked a lot of people what their biggest expenses in life will be. Most say, house, car, and college. I say it’s actually TAXES and INFLATION. But you can fight those expenses and decrease them through planning and knowledge. The best hedge against inflation is A) having that 30-year fixed mortgage, and B) investing in commodities whose prices increase with inflation. The best way to avoid taxes is to A) Convert your IRAs to Roth, B) make investments that pay passive income (like real estate), C) BORROW against your assets, because you don’t get taxed on loans. That’s what rich people do…
I have a current generation MacBook Pro with an HD camera. I have an SM58 dynamic mic for excellent quality audio.
