Every business owner needs to know the basics of managing the profits that the business makes. What are the best things to do with the money the business makes? How much should you invest back into the business? When do you know it’s right to take money out of the business and begin investing in other things? This episode of Freedom Fast Lane gives you answers to those questions and more. Ryan’s friend Matthew Paulson shares his approach to cash-flow investing, business profit margins and investments, and much more.
Why a ROTH IRA is the first thing everybody should invest in.
One of the biggest burdens for every citizen, but especially for small business owners, is taxes. It’s only right to pay your fair share of taxes but there’s no reason you should be paying more than you should. On this episode, Matthew Paulson shares his approach to taxes and the use of the legal tools – such as ROTH IRAs that can save you taxes and enable you to get started with investing in simple, but powerful ways.
What about crypto currencies like Bitcoin? Are they good investments?
One of the more trendy and new ways people are investing these days is through crypto currency – a digital form of currency that many people are predicting will be the way we buy and sell in the future. Matthew Paulson, Ryan’s expert guest on this episode feels that these types of investments are far too volatile and that investing in them is more like speculation than it is a true investment. You can hear Matthew’s reasoning and the things he’s learned in running his own businesses and investing his own profits, on this episode.
Are municipal bonds a good investment strategy?
Matthew Paulson believes that for most investors who are in a particular tax bracket, certain bonds are good financial investment vehicles to use. Though the earnings are typically much lower than most investors are hoping for (around 6%) there is a particular use for this kind of investment that Matthew believes every investment portfolio needs. You can hear his thoughts and understand more of whether or not bonds are right for you by listening to this episode.
Is real estate a good investment? If so, at what level does it make sense?
The internet is abuzz about the power of investing in real estate and many people seem to be doing very well purchasing properties, flipping houses, wholesaling, and more. But from Matthew Paulson’s chair, real estate investing only makes sense if you do it on a larger scale, simply because the work required to keep the properties up and managed well is much more than the passive, cash-flow style of business he likes to run. You can hear how Matthew has come to these conclusions and how he advises you consider real estate investing realistically, on this episode of Freedom Fast Lane.
Outline Of This Great Episode
- [0:01] One of the most popular classes we’ve taught.
- [1:00] Ryan’s introduction of Matthew Paulson and the idea of cashflow investing.
- [7:16] When should you take money out of your business?
- [10:15] How do you know which investments to make in your business?
- [13:54] What should you do to invest the money you take out of your business?
- [16:35] The 3 basics everyone should do when it comes to investing.
- [25:42] What things should you NOT buy with your profits?
- [27:04] Why digital or crypto currencies are volatile and not a good investment.
- [30:27] The types of investments you SHOULD buy.
- [33:30] What about municipal or government bonds?
- [36:05] Owning real estate as an investment.
- [40:04] All-in on your business and diversification in your investments.
Action Steps From This Episode
FOR GETTING STARTED: When you are first starting you’ll likely have to put most of what you earn back into your business. That’s what fuels growth and cash-flow and enables you to learn how things are going to work.
FOR GREATER SUCCESS: Set a minimum profit margin in your business. It will help you when evaluating opportunities and keep you focused on what you really want to accomplish.
Connect With Today’s guest: Matthew Paulson
Resources Mentioned On This Episode
- www.FreedomFastLane.com/investing – get in on the next class
- BOOK: Automatic Income by Matthew Paulson
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