Finding Your Freedom Point: The Financial Milestone Most Business Owners Miss

Would an extra $80,000 in annual savings change how you think about your business's financial future?

Isn't this a hypothetical figure? It's an actual result shared during my recent conversation with Michael Stohler on The Richer Geek podcast, where I revealed why many business owners leave money on the table without knowing it.

What emerged from our discussion was a powerful truth: most business owners are missing crucial opportunities to maximize both their business and personal wealth.

The Wake-Up Call Every Business Owner Needs

During our conversation, Michael asked me a question that gets to the heart of what many entrepreneurs face: "Why didn't I start my own Keogh or IRA?" he wondered. "I thought you had to be an employee to start some of these things. I just took owner draws."

His candid admission sparked a meaningful discussion about the opportunities many business owners miss. As I explained, "It really matters what's important to the owner in terms of what they are trying to achieve with their life and their essential life goals. And then how could we use the tax code and the opportunities that the government gives you to be able to really benefit from that and optimize your personal wealth."

Breaking Down the Advisor Silos

I shared a startling fact: Among the 4,000 independent wealth management firms in our country, surprisingly few truly understand business owners' unique needs and concerns. Most entrepreneurs work with various advisors: CPAs, financial advisors, attorneys, but these experts typically operate in isolation, missing crucial opportunities for coordinated strategies.

The Freedom Point: Your True Measure of Success

In our discussion, I introduced the most crucial milestone in any business owner's journey—the "Freedom Point." It is when you've accumulated enough wealth to do whatever you want, whenever you want, within reason. It encompasses:

• Freedom of time
• Freedom of relationships (who you work with, types of clients)
• Freedom of purpose

What's eye-opening is that "most business owners have no clue of what their freedom point is." They're too caught up in day-to-day operations to step back and assess this critical milestone.

The Virtual Family Office

To bridge this gap, I shared how we've developed a Virtual Family Office approach: a network of over 80 different professionals and specialists providing expertise in:

• Tax strategies
• Wealth management
• Risk mitigation
• Legal services
• Business advisory services

This innovation gives business owners access to family office-level expertise without the traditional multi-million dollar price tag.

The Cost of Waiting

After running his business for 27 years, Michael finally experienced the transformative impact of having professional financial guidance. The revelation was immediate and significant. As he shared during our conversation, "They've saved me so much money... they look at taxes, they look at this and say, 'Michael, day one, we can save you 80,000 a year because you're not doing this, this, this, and this.'"

Like many business owners, his biggest regret wasn't the money he saved - the opportunities he had missed over the years. His question resonated deeply: "Where were you guys 15 years ago?" It's a powerful reminder that while it's never too late to optimize your financial strategy, the sooner you start, the more value you can capture.

Conclusion: As Michael shared during our conversation, realizing the impact of professional guidance was truly transformative. Don’t wait to find out what opportunities might be passing you by. Whether you're focused on growing your business or planning for your eventual exit, the right guidance can significantly enhance both your business outcomes and personal wealth.

Ready to start planning your optimal business exit?

Schedule a no-obligation, exploratory call with me. We'll delve into your business specifics and long-term goals, formulating strategies to build and protect your wealth as you prepare for your ideal business endgame.

Joseph LoPresti, leads ?Arlington Wealth Management, and brings over 39 years of wealth management and business expertise to the table. Joseph is passionate about guiding fellow business owners? through a smooth and satisfying transition, and coordinating all aspects of their wealth toward a secure and prosperous life.

Arlington Wealth Management is a Registered Investment Adviser ("RIA"). Registration as an investment adviser does not imply a certain level of skill or training, and the content of this communication has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority. Arlington Wealth Management provides individualized responses to individuals in a particular state only after complying with the state's regulatory requirements, or pursuant to an applicable state exemption or exclusion. All investments carry risk, and no investment strategy can guarantee a profit or protect against loss of capital. Advanced Tax Reduction Group (ATRG), an affiliate of AWM, may receive a portion of the fees from the services mentioned in this communication. ATRG offers tax planning, consulting, and preparation, as well as estate and business consulting for separate compensation. AWM clients are not obligated to use ATRG for these services.