Investment and Retirement Planning for Business Owners with Pat Darby

I'm excited to share with you my conversation with Pat Darby, Certified Financial Planner™ (CFP®) and Enrolled Agent (EA). Pat and I dive deep into the world of investing and retirement savings for business owners.

Pat stresses the importance of having the right mindset to save for retirement and encourages us to ask ourselves the right questions to ensure we're on track to reach our retirement goals. We discuss how to start with individual accounts, investing in what you're an expert in, and when business owners should start thinking about retirement savings. Pat also shares insights on what financial professionals make sense in your life at different times. 

As entrepreneurs, we know the importance of setting clear expectations and communicating effectively with our team. That's why Pat offers tips on how to get your team on the same page with your business goals.

Pat's valuable insights and actionable advice will help any entrepreneur looking to take control of their financial future and plan for retirement.

"If you want to be financially free, income and wealth are not the same. So you can make a million dollars, and if you spend a million dollars, you're going to be on that rat reel forever. But if you invest in what you know the most about and start the habit of saving and investing, you can make your dreams of financial freedom a reality." - Pat Darby

In this episode, you will learn the following:

1. How to use retirement vehicles to invest in yourself and in your business.
2. The importance of developing a habit of saving or investing, even when in debt.
3. How to identify a financial advisor who can provide comprehensive and independent advice.

What you'll hear in this episode:
[4:18] Pat’s story of how he got into the finance industry “by accident”
[11:30] Recommended avenues that new business owners should begin looking at to invest their money.
[13:30] Tips to approach the question “How do I know what to invest my money in?"
[20:09] How do business owners know when it is the right time to start looking at investing their money in retirement savings or other wealth-building avenues?
[25:50] How do you know what kind of financial professional to use to help you manage your investments
[34:45] Why is your CPA not the right person to ask investing questions?
[38:00] The importance of having all of the financial professionals in your business communicating with one another.
[48:00] Advice for business owners on where to look for help with their long-term financial planning strategies.

Here are some brief snippets from this episode:

[00:08:27]
It's really about aligning the right professional with where you're at and what your goals are. Financial services industry has purposely pushed away the people that don't already have the money. More people would have money if they came and got the help along the way.

[00:11:01]
We want to unpack ways to approach retirement saving for business owners. I would start looking at the individual accounts, like either a Roth IRA or a traditional IRA. In order for it to grow, you have to have to invest it.

[00:13:45]
When it comes to investing with your Roth IRA or your traditional IRA, don't let Wall Street tell you all you can do is stocks and bonds. The answer to what you should invest in is what you know the most about. For most people, I would say invest in what you thoroughly understand.

[00:20:46]
Business owners who are making a profit should think about retirement savings. The habit of putting $10, $100 a month away is more important than anything. The hardest part too is that as business owners, we have to take control of our own future.

[00:25:36]
You want to find a very comprehensive and independent person who's going to tell you how to invest those dollars. Make sure that the person is a fiduciary. You need to figure out where you want from your own perspective.

[00:34:52]
I would also confirm that they can give tax advice because a lot of the big firms often they're not allowed to give tax advice. Can you tell everybody why you don't just go to your CPA and ask about investing questions.

[00:36:07]
A lot of times CPAs get obsessed with saving you taxes today, and they're not necessarily looking at what your tax situation is going to be over your lifetime. Financial planners are more in the business of looking at not just the vehicle, but what are you going to do with it.

[00:42:22]
If you can integrate your financial strategy with the right professionals in the right places, you become unstoppable at building wealth. Building assets is critical as a hedge to the fact that most of us will never sell our business. You better get your team talking to each other or you're going to have to make all those decisions.

Related episodes:

226: Deducting Business Travel

241: Five Key Financial Building Blocks for Your Business

265: Taxes for Real Estate Investors with Chris Picciurro

Resources:

Connect with Pat:

Online: Darbyba.com

IG + TikTok: @thepatdarby

Connect with Shannon:

Attend The CFO Accelerator Live: https://www.thecfoaccelerator.com/shannon

Find everything you need at www.keepwhatyouearn.com! https://www.keepwhatyouearn.com/

Questions about this episode? Text me!: https://my.community.com/shannonweinsteincpa

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See how much you can save with an S Corp: https://www.keepwhatyouearn.com/keep-what-you-earn-s-corp-calculator

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Meet me face-to-face on YouTube: https://www.youtube.com/channel/UCMlIuZsrllp1Uc_MlhriLvQ

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The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.