presentation I handed out at the meeting

The 15 Minute Round the World
Intro to Financial Planning for
Entrepreneurs: Burleson Business
Jason Hull
Hull 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…
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
Who Am I?
• Army veteran
• Founded and sold a software development
• 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!
Common Personal Finance Mistakes:
No Plan
No retirement plan = don’t know if or when you can
• 4 out of 10 Americans have no plan besides Social
• 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
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
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 –
• Think about your future self before making a decision on how much
to set aside for retirement savings.
Common Personal Finance Mistakes:
Investing Mistakes
Fees and timing are your portfolio’s silent killer
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 2025 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.
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
Squeeze More Out of Your Budget
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
Squeeze More Out of Your Budget
46.7% of American households carry a credit card
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
Simple Formula for Succeeding in
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.
Make Your Small Business Work
Because I want people to
get good advice at a
reasonable price and not
be screwed by
unscrupulous salespeople
Make Your Small Business Work
What's Your Why?
Because …
Make Your Small Business Work
Who you don’t serve is as important as who you
• 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:[email protected]/255847189/
Make Your Small Business Work
Don’t let self-employment tax kill your runway
• Create the right corporate structure
• Understand the difference between salary and
• Are you taking all the deductions you can?
• Don’t let the tax tail wag the business dog
How to Reach Me
• [email protected]
• (817)476-0584
If you want to read more about the topics in this
presentation, go to

similar documents