For entrepreneurs and business owners…
… it’s the most prime, productive years that are stolen. And it’s an absolute shame.
Thirty or forty years lost to the theory of retiring “someday” in the distant future. When it’s absolutely possible to retire much sooner — in as little as 3-7 years — if you make one mental switch:
start focusing on cash flow over accumulation.
Our NYT bestseller, Killing Sacred Cows, busted the myth of accumulation theory (as you may have seen right here).
In short, accumulation theory is all about Wall Street’s promise: Give us your money for 30-years and through the magic of the (mythical)* stock market and compound interest, you will retire rich.
But the rip-off is easy to spot. Wall Street mutual funds need your money for 30 years for their “2%” cut to turn into 50% or more of your gains (graph).
Or, if the markets don’t cooperate, you lose and they still get paid (because they put all the risk on you).
Sound like a fair deal?
Thirty prime years of hard work.
Thirty years of producing value as a business owner and entrepreneur.
Thirty years of sacrificing and delaying happiness so that you can stuff “enough” money into mutual funds to live off of the rest of your life …
…and then it doesn’t work out.
It’s hard to choose the worst part — or the most dangerous part — of this plan.
It’s dangerous to take money out of your business to fund other businesses via the stock market.
It’s dangerous to invest in things you don’t know, understand or control in the name of “diversity.”
But the #1 most dangerous thing is that, when things aren’t going as planned and the market isn’t cooperating, you will be told not to worry because, “You’re in it for the long haul.”
Question: at what point during that 30 years would you know that the accumulation theory isn’t working?
And at what point would it be too late to turn back?
Can you afford to make a 30-year bet with no do-overs?
Cash Flow is the Key to Early Retirement
Everything changes when you make the mental shift from accumulation to cash flow.
The #1 fear people have when using the accumulation theory is that they’ll run out of money.
So when this question is asked: “Have I saved enough money?”
The answer is always “no.” The accumulation theory requires more and more of your money to work — and it’s never enough.
(How very convenient for Wall Street.)
But when you focus on cash flow, how much is enough? The answer is easy.
Are your taking in more money than is going out?
Are you growing richer and meeting your cash flow investment objectives?
Are you investing in yourself?
If so, then you are free to live wealthy today without guilt.
As long as your housing, food, transportation and all the works are paid for …
And as long as you’re funding your Wealth Capture, Living Wealthy and Wealth Creation accounts (which Wealth Factory members do) …
Then you don’t have to wait 30 years to (maybe) enjoy life. You don’t have to save, sacrifice or delay happiness to some day down the road if you’re meeting your financial objectives today.
You can live wealthy today (and tomorrow) because your financial plan is set — and, as you’ll see, you can retire far sooner.
The beauty of this method is that it’s not a 30-year bet. You don’t have to worry about using up 30 years of your life hoping you’ve made the right choice.
That’s because feedback from cash flow is instant.
If it drops or stops, then you immediately know there’s something to fix.
The answer is not to just “wait it out,” like the retirement planner will tell you. The answer is to apply your Human Life Value to create more value for others and increase your cash flow. You are always in control.
That does leave one question though — how do you keep the cash flow coming in when you retire?
Retire IN Your Business, Rather than FROM Your Business
What do I mean by that?
Instead of waiting to retire from your business in 30 years, you can retire into your business in 3-7 years by retiring away from the tasks you hate and moving towards the tasks you love.
Now — if you’re overworked and burnt out you may not be ready to think of your business as your retirement plan. Maybe you’re ready to sell the business and go fly-fishing or travel.
Totally understandable. But that’s another reason to stop doing the tasks that steal your energy now rather than trudging along for decades to come.
Start getting rid of the tasks that are not aligned with your Soul Purpose and what you’re passionate about, and embrace and improve at the tasks that you are passionate about.
This may mean delegating tasks to members of your team. This may mean hiring more team members. This may mean creating more systems in your business.
Or this may mean trusting your team to handle things without you.
One way to practice this is to go on vacation without accepting phone calls or checking your email — your team will be forced to solve problems without you.
Eventually your business will become so efficient at functioning without you that it may be possible to work just a few hours per week — or even not at all. But because you’ve built a well-oiled machine (a Wealth Factory, so-to-speak), the cash flow will continue to come in.
Note: If you think you’re indispensable to your business, you’re wrong. We’ve helped chiropractors and dentists — whose hands-on services are integral to the income of the business — escape and scale their businesses to the point where their physical presence is no longer needed. If they can do it, you can too.
“Retirement is just another way of saying ‘out of use,'” says our Chief Wealth Architect, Garrett Gunderson.
Our guess is once you’ve built your business the right way, you’ll never want to retire from your business. Because you’ve already retired into your business by getting rid of the tasks that seem like work and focusing on your passions instead.
And this is just good business: an entrepreneur who is passionate about what they do will always outperform the entrepreneur who is only doing what they think needs to be done.
Plus when you build a business that doesn’t rely on you, the value of the business skyrockets. If you ultimately do want to sell and move on to something else, you’re more prepared to do it.
It Takes as Little as 3-7 Years
To transform a business that needs you into a business that runs with or without you takes time.
You have to get efficient with your finances.
You have to fund your Wealth Capture, Living Wealthy and Wealth Creation Accounts.
You have to find A-Players who can run the business without you.
(If you’re unfamiliar with these terms, stay tuned. We have more to say about them very soon.)
But with a little effort, you can retire in your business in 3-7 years. And you can live wealthy along the way.
That’s what Wealth Factory helps you do.
If you want to retire in your business in 3-7 years, the #2 best thing you can do is to print out “10 Steps to Retiring IN Your Business” at the link below:
The #1 best thing you can do if you’re a business owner making more than $500,000 per year is to tell us more about yourself.
If we’re a good match for each other, you may be able to work with our wealth team to minimize your taxes, pay down loans faster and grow your wealth — while keeping it safe from financial predators and market volatility.
You can tell us more about yourself at the link below:
In the meantime, keep your eyes peeled for more from us at Wealth Factory. Coming up next are the wealth tools you need to empower your business and you.
*We call it a “mythical” stock market because, as we covered here, the stock market is not living up to its legend in the 21st century. Even after a substantial market rally, the Dow Jones was barely keeping up with inflation from January 2000 to January 2015. And in early 2016, the Dow gave up all its inflation-adjusted gains since 2000.