83: Accumulating Wealth Effortlessly from your Business with Justin Goodbread (Part 1)
If you want to save $60,000 on business taxes this year, Justin Goodbread is the guy to talk to. In this episode, Justin explains in real time how he saved thousands in taxes for his clients. Plus, if you've ever wondered about those life insurance pension funds, Justin has all the info about what you should and shouldn't use life insurance plans for.
We also discuss Justin's struggle of building trust and loyalty among his staff members and how to delegate effectively without pulling your guts out in the process. Tune in for an episode packed with gold (literally!).
My Guest: Justin Goodbread
Justin A. Goodbread, owner of FinanciallySimple.com, is a nationally recognized financial planner, financial educator, wealth manager, author, speaker, and entrepreneur. He has 20+ years of experience starting, buying, owning, and selling businesses. Justin is a two time winner of the Investopedia Top 100 Advisor award and Exit Planning Institute’s Exit Planner Leader of the Year.
Recently, Justin published his first book: The Ultimate Sale. In it he shows business owners how to create long-term value and accelerate growth in their company with the ultimate goal of selling the business for top dollar when the owner wants to retire.
Episode Highlights:
4:54: I walked into this financial person's office, making more money than my mom who worked full time as a nurse and I said, "I need to start saving for my retirement." He goes, "Yeah, whenever you can make more money, come back and see me." I gotta tell you, I instantly had like this sour taste for Wall Street personality types. That hey-bring-me-your-money-let-me-fix-it-for-you-because-I-know-everything.
8:27: He was in the financial world. He was with a real big popular firm. And he said if you could do these three tests, I'll give you five grand... He said five grand, well crap, I can pass any test for five grand. So I went in and lo and behold passed the test and became this financial person.
16:39: Do you want to hear pain? This is painful. I sat with one of my clients, single mom, six kids, and she's telling me that she has to pay $7,000 in taxes. I said, "That is not possible!" I know what she's earning. It's not possible, not with the new child tax credit, there's no way. She said, "Yeah, that's what my accountant said." I said, "Then you need a new accountant."
19:41: We have a dentist, let's say. Comes out of school, they have student loans at $200,000. Now they want to go buy a practice and they're gonna spend $400,000 to $700,000 to purchase a practice. Their negative net worth, a million dollars. They have no income because when they buy the practice, they're going to get a 179 deduction for all the purchasing of the equipment, the goodwill, there's gonna be some amortization too.
22:27: Here's why Michael Phelps is interesting to me. I've not seen another swimmer in the world who can do what he did at this point. Michael Phelps has a coach. The coach can't swim anywhere near as good as Michael Phelps. The coach was simply there saying, "Hey, your strokes are a little off. Hey, your dives are a little off. Hey, you said you want to go for medals, if you're going to do that, here's what you got to do." And in finances it's really all about behavior.
29:33: That allowed him to actually place $200,000 of his profits that he didn't need into his retirement account, which lowered his adjusted gross income and reduced his tax bill. He was originally paying $80,000 in taxes and it went down to about $20,000 which means that $60,000 he was paying the government, now he maintains. We took the $60,000 he was paying the government and we accelerated his debt.
39:47: Mr. Owner, you're the center of the business now, and you're really good at sales. Let's make you the executive salesperson for right now, and let's move you eventually out of sales where now you truly have a business, not an over risky job.
45:48: You buy life insurance for one thing and one thing only. Most of the time that is to cover you in a bit of a death. That's the idea behind it. It's not a place to accumulate assets.
55:54: I take my net worth, my baby that I've created and put them in somebody else's hands, who calls in sick? That's a struggle that I have.
Quote:
See us now man, diligent in his work, he will stand before kings. -Proverbs
Resources & Links:
- Find Justin: financiallysimple.com
- Find Justin's Book: The Ultimate Sale
- Find Justin on Social: LinkedIn
- Find Justin's Podcast: Stitcher
- Work with Estie: www.strandconsulting.net
- Join us on the Show: www.estierand.com/breakthrough
For Part 2 of this episode, where you can hear more business advice from Justin, go to estierand.com/83-2.
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