Financial Freedom: Winning the Wealth Game

Whether you realize it or not, we’re all playing the wealth game. Some never get off of first base while others do quite well for themselves on second and find financial freedom on third. But today, I want to talk about those of you who have won the game. You’ve rounded all of the bases and now find yourselves safe at home plate. So, join me as I wrap this series up with a look at what it means to truly win the wealth game.

Follow Along With The Financially Simple Podcast!

• What winning the Wealth Game looks like
• How to know you’ve reached home plate
• The three characteristics of people who reach home plate
• Teaching others financial literacy
• The books and people who taught me about the principles of wealth and financial literacy
• The definition of generational wealth
• Financial tools to leverage as you generate wealth
• The value of working with coaches and financial advisors

Winning the Game to Find Financial Freedom

It’s the bottom of the ninth and the bases are loaded. The pitcher winds up and unleashes a blistering fastball. Suddenly, there’s a satisfying crack of the bat as it makes contact with the pitch. At this, your third base coach yells to you to run with all your might to home plate. As you approach the plate, the crowd erupts in thunderous applause. They’re cheering for you as you step on home plate and win the game! Winning the wealth game and finding true financial freedom feels a bit like that.

Now, some of you might be thinking that financial freedom was achieved when you reached third base. However, I’m not simply referring to your independent wealth. No. Financial freedom comes when you’ve crossed home plate, leaving a legacy of generational wealth, financial education, and generosity. These are the primary characteristics of what Dr. Thomas J. Stanley referred to as Prodigious Accumulators of Wealth (PAWs). If you’ve crossed home plate, chances are, you’re a PAW. If so, I want to give you a virtual fist bump. Well done! However, if you’re still approaching home plate, let’s take a closer look at some of the common traits winners of the wealth game have.

Creating Generational Wealth

Investopedia defines generational wealth as “assets passed by one generation of a family to another. Those assets can include stocks, bonds, and other investments, as well as real estate and family businesses.” According to the Federal Reserve, the average value of generational wealth transfers is $350 billion per year. The same report, claimed around 2 million households get either inheritances or sizeable gifts per year. Think about that for a moment. That’s the direct result of so many people rounding the bases, reaching home, and then blessing those around them. There are tools at our disposal that can help create generational wealth.

The Internal Revenue Code

My friend and colleague, Chris Mahan, has been on the podcast a few times and he often says that the Internal Revenue Code is the greatest wealth-building tool we have in America. I agree with that because if you understand the way the IRS has set the rules of the game, then you can play it according to those rules. The majority of the IRC is information telling you how to legally not pay taxes.

Insurance

Insurance is another tool for creating generational wealth. Yet, many Americans remain uninsured or underinsured. According to the Insurance Information Institute, 41MM consumers say they need life insurance but do not have it. This presents a major financial risk when you consider the cost of funerals and expenses. Similarly, disability insurance is greatly underutilized. If you tripped somewhere between first and third base, you could lose a substantial asset, your ability to produce an income. Before you say, “Justin, that’ll never happen to me,” consider this. 25% of today’s 20-year-olds will be out of work for at least a year because of a disability before they retire.

Planning

If you truly want to build generational wealth and create financial freedom, you’ve got to have a great coach. The greatest professional athletes in the world still have a coach. I have a coach and advisor and I am a professional financial advisor. Everyone needs someone who can look at their lives objectively and provide sound advice, accountability, and a plan.

A recent study from Hearts and Wallets found that 52% of households with a written financial plan save at least 10% of their income for retirement. That doesn’t happen by accident. There’s a coach helping them with a plan. Meanwhile, just 36% of households without a written financial plan save at least 10% of their income. Wealth Game winners understand the importance of having a coach to help them reach their financial goals.

Wrapping Up…

To those of you who have reached home plate, well done! For the rest of you, don’t give up. You’ve got to fight, claw, dig, and will your way to home plate and financial freedom. It is possible. But you’ve got to have a plan. You’ve got to have a coach who can come alongside you and guide you to victory. I know because I’ve done it. If a good ol’ country boy from South Georgia can do it, why can’t you?

Hey, I know life is hard. Sometimes it just kicks you right in the teeth. But life is good. Winning the wealth game can be frustrating, but it doesn’t have to be. With a consistent effort and the right coach, you can make winning the wealth game, at least, financially simple. Let’s go out and make it a great day!

Are you stuck on one of the bases and need a coach to help you work through a plan to bring you home? Reach out to our team. We have a network of advisors all across the nation who would love to help you win the wealth game!

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