Taxes have an opportunity cost and more consequences than most can understand. In this episode Ken and Tammi talk about the different kinds of taxes and why minimizing your taxes now and forever should be a priority with your finances.
Ken Greene transitioned from being a Professional Engineer (P.E.) to the “Engineer of Finance.” His goal is to help people become financially independent and to help them earn better yields with less risk by investing Off Wall Street.
I recently watched the movie, “The Greatest Showman” with my family, and I loved it. I know it was inspired by a true story and I don’t know how accurate the movie reflects the reality at that time, but certain themes in the movie got me thinking. The movie was a great example of a pivotal concept: we are only limited by our imagination. This idea was instrumental in transforming my mindset around decision making. I first came across this idea when I discovered the “mastermind” about 20 years ago.
At that time I had just read the book, “Think and Grow Rich” by Napoleon Hill. I was fascinated by the ideas presented throughout that book.
A mastermind group–for those of you who like concrete definitions–is a peer-based mentoring group that allows people within common interests, goals or career fields to share advice and solve problems together.
A mastermind is an indispensable tool when you desire something bigger than yourself (or simply the support to do what you keep putting off). This week I want to discuss how you can apply the mastermind concept to your financial goals.
But it’s so much more than that. The consistent support from brilliant peers often leads to groundbreaking aha! moments. It’s amazing what a group of people with similar ambitions can achieve together.
My First Mastermind
When I made the big commitment to walk away from good income working as an engineer, my mastermind consisted of just me and my wife. She knew of my strong desire to do something special for others with their finances and she knew of my potential and what I taught was unique to the industry.
My wife and I had two important things in common (and still do!): the desire to do something extraordinary with our goals and the understanding that we are only limited by our imagination. Being on the same page as my wife helped encourage me to go from decisions based upon fear to decisions based upon doing something great.
My Current Mastermind
My current mastermind as a financial advisor includes some of the top financial advisors in North America. We meet about once a week and focus on topics and ideas that will create significant value for our clients and in turn our businesses. It is a positive environment focused on a common goal:
To improve ourselves and our companies to be the best at serving our clients in finances.
This mastermind has helped me provide better insight to my clients, and as a result my clients do extraordinary things with their finances that separate them from the majority of households in this country.
Want to start a Mastermind? Here’s How.
There’s this quote that has stuck with me since I was a kid. I don’t know where I heard it and I don’t know who said it, but here it goes, “Show me who you hang with and I know who you are.” To me this means when you put yourself in a certain environment, decisions and thoughts (good and bad) can be strongly influenced by that environment.
This leads me to the first step for creating a mastermind: audit your current environment. The people within your current environment are influencing your behaviors, whether you realize it or not.
Let me be clear, I am not advising that you only hang out with people that think like you all the time–that would be a small world. I am specifically talking about the environment where you choose to work on your goals. That environment should be selective.
Let’s say you want to create a finance mastermind specific to achieving financial freedom. Start with an observational checklist:
What circle are you going to create around you to make this happen? This is where you can be selective. Are you going to randomly seek guidance from your neighbor, your parents or friends you’ve had since college? If so, how successful have they been with their finances? Excellent? Good? Okay? Bad? If you did not answer “excellent”, why are they part of your financial decisions? Enjoy them for who they are, but don’t seek guidance on money. They should not be part of your financial freedom mastermind.
Find several good friends and peers that have the same vision of financial freedom (financial independence) as you. It’s that simple.
Meet with your mastermind consistently. Once a week or once a month, meet to discuss what you have done and what you are doing to put yourself in a better position financially. Some discussion topics for your mastermind include:
What you have done for protection
What you have implemented to create savings and liquidity in your household.
What you are investing or considering as an investment to help achieve those goals.
My clients that have created a mastermind have made great accomplishments. As their financial advisor, I have helped with unique ideas and concepts, but they did the work and ran different ideas past each other to best implement new ideas for them and their families. They have common goals and dreams. They call me to discuss ideas they have come up with to get my thoughts. They consistently encourage each other to take the next step and celebrate in each others accomplishments.
Today it is all about bright and shiny objects. Before you ask, Ken and Tammi will tell you what exactly are these objects, how cryptocurrency and Wall Street fall into this category and how these opportunities will seek you out.
Ken Greene transitioned from being a Professional Engineer (P.E.) to the “Engineer of Finance.” His goal is to help people become financially independent and help them earn better yields with less risk by investing Off Wall Street.
How To Prepare For A Meeting With Financial Advisor (i.e. Engineer of Finance) Ken Greene
I’m consistently asked by prospective clients, “how can we meet and what should I bring with me?” Great questions, and the answer is it depends on what type of meeting we’re having. I basically have three types of meetings: a quick intro meeting, a full intro meeting, and a strategy and design meeting. The type of meeting determines your homework assignment (what to bring).
Prepping for the Quick Intro Meeting (15 minutes)
If you were referred to me by a friend, you’re a listener of my podcast, “The Engineer of Finance Podcast,” and/or you’re a reader of my blogs, you might have a few questions. You might wonder how to prepare for a quick intro meeting with me. There’s not much to do, other than write down a few of the questions you have for me and then pick up the phone and give my office a call to schedule a time for us to talk for 15 minutes. Or go to the ‘Contact Us’ page on my website and schedule a quick intro meeting with my online scheduling page to set a time that’s convenient for you for an online meeting or phone call. Whatever is easiest for you. The online calendar system is simple and convenient. If you prefer to call, I assure you, you will never get a call tree. You’ll always get a friendly voice that is happy to help you.
Prepping for the Intro Meeting (60 minutes)
In this meeting, you probably have a bunch of questions (especially, if you’re an engineer – in which case, awesome. I love lots of questions and answering all of them). I would recommend the same steps as what I mentioned previously to set up an appointment, but this time schedule 60 minutes. Write down all of your questions, don’t be hesitant to ask anything and everything. You worked hard to earn your money and you should ask me a lot of questions to determine if I am the right person to help you take the next step. I am confident that after our meeting, you will have gotten a lot of value out of our time together. Even if we determine I’m not the right person to help you, I’ll be able to point you to the right person that can.
Prepping for the Strategy & Design Meeting (90 minutes)
This is the next step after an introductory meeting if you have determined that I am the right person to serve you. You like and trust me. I like and trust you. And you have determined that I’m extremely competent at what I do as a financial advisor. This is where you start learning a different way to play the financial game! This is a focused 90-minute session. In this meeting, working together, we will create a custom strategy and design, based on your wish list (priorities & dreams).
As an engineer, I am very good at identifying something in a design or project that could be improved. I love troubleshooting. This background and skill set has really helped me as a financial advisor. I take an efficient and unique approach to finances for my clients. Now if you need my help on clothing choices, interior decorating, architecture, (anything related to looks & style) I don’t recommend you ask my opinion.
In order to create the right strategy and design, I need to understand where you’re at. What’s your current financial environment? Therefore, I ask for all the documents that show your income, debts, liabilities, assets, and how it’s all protected (e.g. trusts, insurance, state law). This is your homework.
Below is a sample of some of the questions that we will address:
How much liability protection do you have for your home, cars/trucks, toys, etc.?
What are the deductibles?
Did you file a homestead on your home?
Do you have disability insurance?
Do you have life insurance?
Do you have debt?
What liabilities do you have?
What are the interest rates on those liabilities?
What are you invested in? The stock market? Real Estate? Cryptocurrency? Rare Metals?
Are you using qualified plans such as 529s, IRAs, 401Ks?
What tax liabilities do you have (e.g. income taxes, property taxes)?
What tax mortgages are waiting for you at retirement?
What assets are creditor protected?
The above questions are a snippet of what we will address together. The more thorough you are with your homework, the better I can identify areas where we can change how money flows and recapture hundreds of thousands of dollars if not, millions of dollars for you and your family. My goal is to create a lot more cash flow and wealth (financial independence) for you and your families as opposed to the norm: banks and brokerages getting wealthier and wealthier by teaching their clients to do the exact opposite of what they’re doing.
To learn more, and to get a copy of my homework assignment: call my office, send me an email, or use the online scheduler to set up a quick intro meeting with me. If you read through this entire blog there is a good chance you will enjoy meeting me and I’ll enjoy meeting you.