How do you get your partner or spouse on the same financial plan as you? Especially when it’s not the same message that every Wall Street salesman talks about.
It’s easy if you ask 3 simple questions. Let’s take a look…
They say opposites attract. And so entrepreneurs often marry traditional, play-it-safe personalities.
Trouble arises when the entrepreneur takes one risky step too far — and now both partners are in a financial mess. We’ve seen it time and time again. And for this reason, the partner or spouse of an entrepreneur usually takes control over the finances.
But this rarely leads to a financial plan fit for an entrepreneur. So that begs the question:
As an entrepreneur, how can you get your partner or spouse on board with a financial plan that empowers you and your business — like the Wealth Architecture we’ve developed at Wealth Factory?
It may be easier than you think.
Here are 3 simple questions to ask your spouse to get them on board with a financial plan fit for an entrepreneur.
Question #1: “Do we want the backbone of our financial plan to experience guaranteed year after year growth, or do we want to speculate?”
Most retirement planners will advise you to lock money into an IRA or Roth IRA for 30 years or more. But now that money is off limits — it’s not helping your business grow, it’s helping other businesses grow.
Worse, you’re not even guaranteed to get the money back. You are 100% dependent on the markets, and if they don’t cooperate you can lose half your wealth overnight (like during the Great Recession).
This isn’t investing, it’s speculating.
That’s why we are fans of the Cash Flow Banking system. It uses financial technology to deliver guaranteed 4-5% growth every year. And your balance never goes down no matter what the markets do — so your money is always there.)
As a bonus — Cash Flow Banking gives you important access to capital at any moment. You can have a check in 72 hours or less for any reason — including to invest in or grow your business.
Question #2: “Do we want to work with an advisor who recommends high risk investments?”
To help select your investments, one of the few questions a typical financial advisor will ask is your “risk tolerance.” Do you prefer low risk or high risk investments?
But risk isn’t in the investment, it’s in the investor. For most people, investing in the stock market is a high-risk proposition. For Warren Buffett, who is an expert at picking stocks, it is low risk.
So risk is based on your knowledge of the investment. And choosing high-risk investments is an admission that you don’t know what you’re doing.
Wise investments will match your unique knowledge and strengths — and that is most often in your business.
Question #3: “Do we want a comprehensive financial plan unique to us, or generic investments picked because they pay our advisor a commission?”
Most financial advisors get paid based on silent commissions. Therefore they have a handful of generic investments to recommend — and they recommend them to everyone of similar age and “risk tolerance.”
But investments are just one part of a comprehensive financial plan.
What about optimizing cash flow? Loan management and paying less interest? Credit score? Liquidity? Asset protection and estate planning?
And what about investing in your best wealth creator — you and your business?
A proper Wealth Architecture will address all of these personalized factors and more.
Clearly this is an important issue for you (because you’re still reading). So here are 3 steps to getting your partner or spouse on board with a financial plan fit for an entrepreneur:
Build the life you love,
The Builders at Wealth Factory
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