Wealth Building With Todd Tresidder

 

In this week’s episode of The Law Practice Doctor, Sam Gaylord interviews Todd Tressider, who has spent several years as an entrepreneur in the investment management industry. He previously worked in the hedge fund industry and retired at age 35. During the show, Sam and Todd discuss personal finance, the two stages in the wealth building equation, 401Ks, achieving happiness, and the seven steps to seven figures.

 

Main Questions Asked:

  • What are the primary questions people should be asking in order to get to first base in understanding finances?
  • Talk about financial advice for the professional side.
  • What are some of the steps you go through in coaching clients to build wealth?

 

Key Lessons Learned:

  • It’s not about hot stock tips and getting a good investment but rather a process to achieving a positive outcome.
  • There are layers of deception in the industry, some of which are sinister and some inherent or accidental.

 

Personal Finances

  • The key to wealth is spending less than you earn and investing the difference wisely. If you do this every month for your lifetime, you will become wealthy.
  • The sooner in life you start doing the above, the wealthier you will become faster.

 

Two Stages in the Wealth Building Equation

  1. Savings rate to your total spending:
  • This is the most important in the first half of your wealth building.
  • What percent of your total income are you saving, and what is spent?
  • People get stuck in the earning and saving pattern even when it’s no longer important to the financial picture.

 

  1. Return on Investment Minus Inflation:
  • Determined by your investment and not savings.
  • At some point in your financial journey you cross the dividing line, and this is where people get messed up.

 

401K

  • Low fee out produces over time, so getting rid of overhead is critically important.
  • A lot of 401Ks have limited investment selection, so they are difficult to get solid returns on.

 

The 7 Steps to 7 Figures

  1. Get Your Financial House In Order
  1. Habitudes of Success
  • Your financial outcome is a mirror of your habits and attitudes.
  1. Your Wealth Plan
  • Takes into account your personal values, interests, and personal resources.
  • This breaks everything into action steps

 

  1. Taking Massive Action
  • Overcome your personal obstacles to success.
  • Construct your environment so it pulls you toward your goals.
  1. Expectancy Investing
  • This is different to traditional buy and hold and more about protecting the downside.
  • Maximize the potential and minimize the exposure.
  • Diversification works 95{cf5d02f31badde63b68d55c0bed56ab5356094abc2057734bc0088249d8536d3} of the time you don’t need it and feels miserable the 5{cf5d02f31badde63b68d55c0bed56ab5356094abc2057734bc0088249d8536d3} of the time you do need it.
  1. Personal Investment Issues
  • As you achieve high net worth, your wealth requires change.
  1. Now That You’re a Millionaire, So What?
  • Freedom is about much more than money.
  • The core value of freedom is internal and must be projected outward.

 

Achieving Financial Independence

  • When you achieve financial independence, something changes and most people don’t ‘get it’ when it happens.
  • Your willingness to tolerate your life as it is ends.
  • Your life that was fine for so long is no longer satisfying.
  • You will pay a price for any path you take to get to financial freedom.

 

Fulfillment and Happiness

  • Fulfillment and happiness is a subtle process that is much deeper than you think.
  • Many good things are attached to your work and goal-oriented activity, including sense of purpose and contribution.
  • There needs to be balance between fulfilling work that reflects your values and enough leisure to pursue dreams outside of that work.

Thank you for listening! If you enjoyed this podcast, please subscribe and leave a 5 star rating and review in iTunes!

 

Links to Resources Mentioned

Financial Mentor

The Ultimate Return Calculator

 

Click To Tweet 

 

Want to know everything you need to about wealth in one sentence? Find out w/ @financialmentor @gaylordpoppllc http://www.gaylordpopp.com

 

What are the 7 steps to 7 figures? Find out w/ @financialmentor @gaylordpoppllc http://www.gaylordpopp.com

 

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