The 15 Minute Round the World
Intro to Financial Planning for
Entrepreneurs: Burleson Business
Builders
Jason Hull
Hull Financial Planning www.hullfinancialplanning.com

• Anyone who doesn’t feel like their personal finances are in a rock solid position
• Anyone who doesn’t feel like their business is in a rock solid position
…in other words…
YOU!
www.hullfinancialplanning.com

• Common personal finance mistakes and how to avoid them
• Ideas for how to squeeze that little bit more out of your budget
• Ideas for how to make your business work for you www.hullfinancialplanning.com

• Army veteran
• Founded and sold a software development company
• Financial planner, CFP® candidate
• Personal finance columnist, U.S. News &
World Report www.hullfinancialplanning.com

Common Personal Finance Mistakes:
No Plan
No budget = money controls you
• If you don’t have a budget, you’re actually in the majority (51%) of Americans!*
• Don’t overcomplicate
– Use a simple spreadsheet
– Start with income
– Then known “must pay” expenses
– Then variable expenses
– Don’t forget to save!
www.hullfinancialplanning.com
http://www.pewsocialtrends.org/2007/02/07/what-americans-pay-for-and-how/306-3/

Common Personal Finance Mistakes:
No Plan
No retirement plan = don’t know if or when you can quit
• 4 out of 10 Americans have no plan besides Social
Security*
• 30% say they will have to work into 80s to retire; however, 22.5% between 60-84 report employment disability
• Start with the goal and work backwards – expenses in retirement and how much you have to save to get there www.hullfinancialplanning.com
http://www.pewsocialtrends.org/2007/01/04/most-americans-moderately-upbeat-about-family-finances-in-2007/

Common Personal Finance Mistakes:
Risk Management
The risk ostrich = you may be underinsured
• Optimism bias affects future thinking
• 70% of people over age 65 require long-term care*
• 43% of people who need to use their LTC policies are under age 64
• 10.2% of people age 19-64 can’t work because of disability or poor health
• Look at appropriate term life, disability, and long-term care insurance
– If someone tries to sell you something other than term life, make them show you quantitative aftcast to show superior performance www.hullfinancialplanning.com
http://www.longtermcare.gov/LTC/Main_Site/Understanding/Definition/Know.aspx

Common Personal Finance Mistakes:
Retirement Saving
If you save, are you saving enough?
• Only 51% save for retirement*
• 21% of workers covered by 401(k) don’t participate
• IRA limits
– $5,500/year/person
– $6,500/year/person if age 50 or older
• 401(k)/403(b)/457/TSP limits
– Your contribution: $17,500/age 50+ catchup: $5,500
– Total contribution (+ employer contrib): $51,000/$56,500
• Set aside money every month so you don’t have to think about it – automate!
• Think about your future self before making a decision on how much to set aside for retirement savings.
www.hullfinancialplanning.com
http://money.cnn.com/2012/05/10/retirement/saving-retire/index.htm

Common Personal Finance Mistakes:
Investing Mistakes
Fees and timing are your portfolio’s silent killer
• DO NOT PAY FOR LOADS IN MUTUAL FUNDS!
• Look at 12-b(1) fees
• Trying to time the market = -35.8% performance vs value cost averaging*
• In 2012, 89.8% of actively managed stock funds underperformed their index counterparts
• Depending on trading frequency, it takes between 20-
25 years to determine skill vs. luck in investing. Do you have that much time to waste on a gamble?
• Value cost average into INDEX funds with LOW FEES.
www.hullfinancialplanning.com
http://money.usnews.com/money/blogs/the-smarter-mutual-fund-investor/2012/11/05/herd-behavior-hurts-fund-investors

Remove recurring costs you don’t need
• Do you need cable TV?
– Try Netflix, Hulu, PlayOn, and stations’ websites
• Paying for more cell phone than you need?
– Lower minutes
– Get Google Voice
– Remove landline
• Gym membership you don’t use?
– Plyometrics, body weight exercise, home Crossfit www.hullfinancialplanning.com

Automate your finances
• Set up side accounts
– Christmas fund
– Home/car insurance fund
– Roof/car replacement fund
• Have investments automatically withdrawn
• Set up automatic bill pays so you don’t have to remember when to pay them www.hullfinancialplanning.com

DEBT SUCKS
• KILL YOUR DEBT OR IT WILL KILL YOU
• 46.7% of American households carry a credit card balance
• Pay absolutely everything you can towards debt
(credit card, personal loan, car loan, mortgage)
• Look at total interest payments first before deciding which one to pay down/off – combines psychology and math www.hullfinancialplanning.com

The Reality Check of Small Business
Often Bounces www.hullfinancialplanning.com
*http://smallbiztrends.com/wp-content/uploads/2012/08/survivalby-sector.png

Simple Formula for Succeeding in
Business
• You must…
• Provide something…
• Which other people will pay you for…
• That you can provide or produce…
• At a profit…
• While giving them value.
www.hullfinancialplanning.com

• Who?
– Customers want to connect on a personal level.
Make sure that your voice comes through.
• What?
– Nobody cares about the what. It doesn’t make you special. It is mandatory, but not differentiating.
• Why?
– The drive, the passion, what makes you tick. It’s your purpose and will resonate with customers.
www.hullfinancialplanning.com

WHY AM I A FINANCIAL PLANNER?
Because I want people to get good advice at a reasonable price and not be screwed by unscrupulous salespeople www.hullfinancialplanning.com

What's Your Why?
Because … www.hullfinancialplanning.com

Who you don’t serve is as important as who you serve
• If you’re everything to everyone, then you’re nothing to anyone
• Trolls should live under the bridge
• Create the in-group bias www.hullfinancialplanning.com

www.hullfinancialplanning.com
*http://www.flickr.com/photos/84263554@N00/255847189/

Don’t let self-employment tax kill your runway
• Create the right corporate structure
• Understand the difference between salary and distributions
• Are you taking all the deductions you can?
• Don’t let the tax tail wag the business dog www.hullfinancialplanning.com

• http://www.hullfinancialplanning.com
• jhull@hullfinancialplanning.com
• (817)476-0584
If you want to read more about the topics in this presentation, go to http://www.hullfinancialplanning.com/bbbpres www.hullfinancialplanning.com