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Highlights from this episode include:

  • A “Common Sense” step you can take today to get the best return from your retirement investments (3:07)
  • Why traditional education teaches you nothing about financial knowledge and how self-education helps you take control of your money (3:34)
  • The “Transparency” secret to strengthening your cash flow (and your marriage) (4:46)
  • The “4 A System” for rock-solid cash reserves that will be there for you when you need them most (7:23)
  • 4 questions to ask yourself that guide you to income-generating investments that support your retirement lifestyle (9:54)
  • Why “Peer Optimism” destroys portfolios and how to politely decline such “opportunities” and stay friends (11:03)
  • A commonly overlooked financial tracking method that ensures you have the money you need when you need it (14:40)

Ready to stop doing what you hate? Go to RetireNowRetireWow.com and fill out the Game Changer form to secure your financial future

Read Full Transcript

Do you hate the thought of working past 55 or 60? Do you hate not being able to live the life you deserve today? Do you hate not knowing what your financial future looks like? It's time to stop doing what you hate, here's your host, Mr. Harold Green.

Aloha, every buddy, Merry Christmas, happy holidays. This is Harold Green of Brightree financial, and it's time to stop doing what you hate. How's everybody doing? I am doing fine. I'm doing much better. I think I was sharing with you guys a little while ago

(00:38): That I was sick for a little bit. Normally I don't tell people things of that nature, but you know, in the age of being transparent, I don't want to be too transparent, but you know, some things you've got to keep to yourself. But I was just kind of sharing with you guys that this has been a very difficult year and, and pushing and giving it everything I got and going 100, I just kind of ran myself down and basically here in Hawaii, I think a lot of you guys know that, but now here in Hawaii, there's not a lot of places you can go. I mean, we're on an Island and you can go to the mall. You can go out to eat at some restaurants here and there, but there's, there's just not a lot of new things to do.

(01:19): We can't just hop in our car and drive three, 400 miles to the next state over. We can fly out, but to get back, you need to take a test and it's hard to find a test and things like that. So, you know, a lot of us here are doing everything we can just to make S make sure we stay, you know, mentally sane and, and, you know, just trying to keep everything going. And you know, it can be quite repetitive. So I was just grinding and grinding and pushing and pushing and, you know, trying to keep my mind off certain things. And, you know, and it did have a, it did have an impact on me. So I had to kind of slow things down, like I said, and, and take things, you know, day by day step-by-step and just kind of look at things a little bit differently, but today today's show is three pillars of a successful retirement plan.

(02:06): And it's going to be a little bit of a recap and an overview on some of the things I've talked about before, but I think repetition is key when I was in high school, I took Spanish and there is a phrase called listen and repeat. So it was, it was one of our Spanish instructors, favorite phrases, listen, and repeat. And that's how, you know, I learned some Spanish, unfortunately I probably know more Japanese than Spanish. And and I kinda suck at both, but that's one of the things I want to look at doing better. And 2021 is, is basically brushing up on my Spanish and maybe some other languages in Japanese and just looking at doing something a little bit differently. So, but today I want to get into the three pillars of a successful retirement or three pillars of a successful retirement plan.

(02:57): The first pillar that I'm going to get, and it's kind of common sense, this cashflow management and, you know, my mom used to say common sense. Isn't really all that common. And, you know, growing up, I would hear that, but as I became older, that's, that's a surprise. It's surprising. And Asheville management is something that's not taught in our schools. It's not taught in colleges and universities. We may learn a little bit about it in business, if you're a business major. And I don't even really think they learned that much about cashflow management and economics, but it is a very big thing. And the inability to track finances in my 20 plus years of experience is a major reason why many people start financial plans, but they can stick with them. And again, this is due to a lack of education. So, you know, cashflow management starts with looking at a checkbook and managing that, looking at your credit card statements and managing those.

(03:56): But you're going to need to make sure you have a very solid system of tracking your inflows and your outflows down to the nearest penny. And one of the things, one of the reasons why couples don't really have a good cashflow management system is because there's not a lot of transparency and it's kind of like government spending or any kind of spending and big, huge organizations and institutions where, you know, there's a lot of murkiness for a reason. And one of the first ways the beginning of becoming successful financially is understanding and being transparent about the money that comes in and the money that goes out. So one of my first pieces of advice to couples is make sure that you're being fully transparent with your finances and to give each other allowances. I know that sounds a little bit immature and childish, but you're going to have to put a limit on what you, on what you spend, if you want to get to the next level unless you're making so much money already, but this show is not for people that are gazillionaires already and they don't need to track their numbers, but of course gazillionaires do track that numbers.

(05:09): That's why they are gazillionaires right. But you're going to have to put limits on your, on your, you know, your spinning, give yourself an allowance. And if you're good at not spending all of it, that's great, but that way you don't have to hide things from each other. And I think when you start to hide things from each other, it leads to breakdown and trust, and it just leads to break. Not only in the financial arena, I mean, it leads to breakdowns in a lot of other areas. And so eventually I'm going to get up enough nerve to do a show called the divorce and money. And it's something I've been thinking about for a long time. You know, I've had clients get divorced and it's not, it's not a pretty thing. Some of them come out of it. Okay. And others are still dealing with the side effects of that, that relationship.

(05:55): And it's, and it's hard for them to recover because it's such a painful thing. But that's the first thing is, is where it starts is not being honest about the money, not being honest about, you know, spending behind your spouse's back or giving money to family members behind your spouse's back. You know, I've seen things like that before where, you know, one spouse made more money than the other, because she made more money than her spouse. She felt that it was her right, to do whatever with her funds that she wanted. And so, and that just kind of led to a lot of different things. And it's, you know, I've seen that really destroy families. And so being upfront about what you want to do with your money, being on the same page about your finances and your cashflow is a very important thing. So whether you use it a software system to track your inflows and outflows, or you sit down and use a spreadsheet to track your inflows and outflows, you're going to have to have something and being transparent about the money is steak sauce, a one, I mean, from a one from day one, that's what you have to do.

(06:58): Okay. So that's pillar number one is having a great cashflow management system. Pillar number two is having a great cash reserve system and my cash flow reserve system. I call it the four ACE system that bus speed, number one, adequate, it must be accessible. It must be after tax and it must always be there. Now, there are some variants of this that I've created in their arsenal wrinkles that I've added in, into my cashflow system for the sophisticated investor and the high net worth individual. So there's some things that we can do a little differently than I do for people that starting off. So there's a number of different things you can use for your cashflow system. You can use a regular bank account, which basically you can save an ad to that. And, you know, for some clients, they can use different types of leverage systems for cash reserves because they, they have a good stable income system and a good cashflow management system, which allows us to take advantage of some leveraging opportunities.

(07:59): And so in order to, in order to be really successful, you're going to have to master these three things, the cashflow management, the cash reserve system, and then the final one is going to be the income generation system. But going back to the cash reserve system, you know, being adequate, what is adequate six to seven months of income, a year's worth of income, 10 years worth of income in your cash reserve system. Normally we start off with about six or seven months of cash reserves in a place where, you know, if you lose your job, you can go in there and have access to it anytime you want. But what I've done is once we build up six or seven months of cash reserves, we can then make those cash reserves begin to create income, even if it's a nominal amount. And so it becomes a vicious success loop and your finances of, you know, building cash reserves, making those cash reserves generate income.

(08:48): And so they must be adequate accessible after tax. And always there, you must always have access to your cash reserves without anyone you, you can't get the money or there's a penalty for taking the money. And so you definitely want to make sure you have six to seven months of cash reserves and a place that you can get to it right away. And a lot of times this can be opportunity money, right? You don't necessarily have to look at it as just say emergency money. Sometimes it can be for opportunity. And that's a very important thing as well. And so going over into the last one is the income generation system, making sure you always, these have a way to generate income. You always have money is coming in all the time. And there's a couple of different things I look at when we, when we start getting into income generation and creating a system that constantly producing and constantly working.

(09:37): And so, and, and the rapid retire program and the income generation model I talk about or basic questions in regards to your money. Number one, where is it? Okay, number two, what is it doing? Number three, how long is it supposed to be there? And then number four, you know, is it safe? And when we start talking about, is your money safe? We get into things like, Oh, my friend, he gave me a recommendation for this and you know, they've been doing it for awhile. Then I think it something that I want to get into. And, you know, a lot of times you have to look at it as it's safe and can you get your money back when you want? So I don't know if I share it with you guys, but I had someone send me an email. My friend said, Hey, you know, this is something they want to get into.

(10:25): And, you know, we're all kind of the same age and, you know, friends or whatnot. And, you know, we've all kind of talked about it and, you know, blah, blah, blah, blah. And when I hear that, eh, it just kind of me, it's my skin crawl because I've seen so many people taken advantage of because they go into something, you know, together, friends and, and it's not peer pressure, but it's, it's pure optimism. I'm gonna, I'm gonna just put that word out there to you guys. It's I call it peer optimism. Everybody gets it all hyped up about something and the potential to make money is there with them not having to do anything for it. And so that's, that's my biggest concern. Anytime somebody gives you an opportunity that looks super good and you don't have to really do anything for it. And it just makes you money, hand over fist.

(11:11): That's sometimes things that sound too good to be true are actually to be too good to be true. And you're going to have to do your research and understand like what you are getting yourself into. And so, so it's very important to keep in mind that prior to investing or putting money in any place, you must have very specific goals and objectives. And quite frankly, many people do not. And that's why they get in trouble. So you're going to have to set goals for your money, just like you set goals for yourself. And so without them, you know, you're really not going to understand if you're making progress or you're meeting your metrics or your benchmarks and things like that. Yeah. I use planner by grant Cardone. It's the 10 X planner and basically in the 10 X planner, you sit down and you, you know, you map out your day and then you go into your goals or whatnot.

(11:59): And so I love my 10 X planner because it really helps me focus at the very start of my day. You know, I write down what I'm going to do. My day starts at four 30 for the most part. And so, but grants planner starts at 6:00 AM. I'm like, bro, like I'm up like hour and a half before that, and I'm already cracking at it. So, you know, but I write out what I'm going to do. And then I write out, you know, when I'm going to leave the office and you know, what time I'm going to get rest or what time I'm going to work out. You know, I kind of put that in at the end of the day. And I'm at the second page of it talks about your goals as far as with your goals. And then it talks about your motto.

(12:35): Like what's your model or your, your, for the day. And a bine is basically don't give in, finish strong. And that's, I write that in my, my 10 X planner every single day. And then I go into my targets or whatnot. And then at the end of it, at the end of the day, it says, okay, so success story or whatever he calls it. And then you write your goals again. So I do my best to keep him on track with my, my, my goal planner every day. And there's that part about it. It can be a little overwhelmed whelming because once you hit one goal, you have to immediately like put the next step to that goal. So I have my goals kind of like in steps. And so I have goals for my firm and, and goals for my personal life.

(13:18): And so yeah, and steps. And so each step is a goal to the ultimate goal. Just kind of break it down in chunks. And so eventually someday you'll get there and then you also have to like put a timeframe on it and I feel you should do the same thing with money, you know? And, and, and I've done that from a early age. From the, by the time I was 30 where I said, okay, I want to make this much income by this age. I begin to map that out. And then I want to make this much income by this age. And then I began to map that out. And then I'm 47 going on 48. And so I also have a goal for, by the time I hit age 50. And so by the time I hit 50, you know, I want to be at a specific place in my life.

(13:57): And so I've started at 30 and I've just been working my way up for the last 17 years to him, these income and revenue goals. And so it comes down to money. You definitely want to start making sure that you're setting goals, whether you're self-employed, you have your own business, whatever it might be, you want to set these goals. And so what I've found is when you set goals and you work hard, basically opportunities, just, they kind of find you, you know, and then Proverbs talks about, you know, a person with great skill will stand before Kings or something of that effect. And so when you're diligent, you're honing your skill, you're working hard, you're setting your goals, opportunity loves those kinds of people and are those types of people. And it will find you, but you know, definitely having a great income generation model set up, but it does start with goal setting.

(14:47): So you can kind of build some of that in, and then that's the way you're going to be able to tell if you're on the right on the right track. So all of these things are going to have to be set up well, before you, you retired. And so I find that some people come in and meet me in their fifties and they don't have a great cashflow management system set up. And that makes it tough. They've just kind of been given. They make good money. They've been working hard, but they just haven't really, you know, perfected the system maybe because they advisors, they work with just simply focus on growing the wealth and nothing else. But here in my plan and the rapid retired plan, I believe that we're very holistic in regards to how we look at the, the three pillars of a successful retirement plan. But thanks for listening in some mean today. If you guys want to know more about the program, go to my website, retire now, retire wild.com or just give me a call five two one four four zero one. And we'll be able to get you on the schedule and then sit down and create a plan to take your from where you are today, to where you want to be. Again, Merry Christmas, happy holidays to you folks. And until next time, one, two, three, let’s get it.

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