#556 FULL BLUEPRINT: How To Build LASTING Wealth In 2025 w/ Josh Jalinski
Dec 31, 2024
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Josh Jalinski, a seasoned financial advisor and host of the Financial Quarterback podcast, shares vital insights for business owners seeking financial stability. He highlights the importance of annual life insurance reviews and proactive financial planning, especially during busy seasons. Josh emphasizes cash value life insurance as a wealth-building tool and discusses the significance of diversifying investments. Personal stories illustrate how strategic planning can lead to significant wealth, while he stresses the need for ongoing communication with advisors.
Engaging a proactive financial advisor, or 'quarterback', is essential for business owners to coordinate effective financial strategies and prevent costly mistakes.
Consistently investing a portion of annual income into diversified assets can significantly enhance long-term wealth and provide financial security outside of business income.
Deep dives
The Role of a Financial Quarterback
Having a financial quarterback is essential for business owners to navigate complex financial landscapes effectively. A quarterback-style advisor coordinates various professionals, such as CPAs and attorneys, to ensure that all aspects of financial planning are aligned and optimized. It is crucial to have a dedicated advisor who meets regularly to review your financial strategy and adjust it according to business and personal needs. Being proactive in this area can prevent costly mistakes later, especially during critical financial periods like year-end tax planning.
Importance of Preparation for End-of-Year Tax Planning
The final weeks of the year are pivotal for tax and financial strategies, particularly for business owners. Engaging in activities like establishing small business retirement plans, tax loss harvesting, and making charitable contributions can significantly enhance financial outcomes. While many professionals may slow down during the holiday season, proactive advisors are busy maximizing their clients’ tax advantages before year-end deadlines. This urgency emphasizes the importance of being engaged with your financial advisor throughout the year, not just during tax season.
Building Wealth Beyond Business Success
Business owners often make the mistake of relying solely on their business for financial security, neglecting the importance of diversifying their assets. Setting aside a portion of annual income—ideally 10 to 15 percent—into retirement accounts or investment vehicles can help create additional wealth independent of the business. Real-life examples, such as a client transforming a small investment portfolio into significant wealth through strategic diversification, underscore the potential benefits of this approach. By prioritizing long-term wealth-building strategies, entrepreneurs can safeguard their financial futures, irrespective of their business's viability.
The Value of Life Insurance in Financial Planning
Life insurance plays a critical role in comprehensive financial planning, particularly in ensuring financial stability for loved ones. A distinction is made between term insurance for essential protection and cash value insurance for wealth accumulation and legacy planning. Advisors emphasize that understanding one's life insurance portfolio and conducting regular reviews can prevent unforeseen financial pitfalls, especially in light of changing life circumstances. The conversation stresses that everyone who cares for dependents should at least consider term insurance, as it can provide crucial financial support when needed most.
In this episode of the Main Street Business Podcast, Mark J. Kohler and Josh Jalinski discuss the key elements of successful financial planning for business owners. From annual life insurance reviews to emergency funds and disability insurance, they share practical steps to avoid costly mistakes and achieve lasting financial stability.
Here are some of the highlights:
Mark Kohler welcomes Josh Jalinski, financial advisor, RIA owner, and host of the Financial Quarterback podcast.
Mark begins by emphasizing the importance of building wealth and the need for a reliable quarterback for business owners.
Josh discusses the significance of life insurance and the ability to generate income as the best investment.
Mark Kohler and Josh cover the value of being busy in December and the challenges of managing client expectations during this period.
Having a reliable tax and financial advisor who is actively planning and not just preparing taxes is worth its weight in gold.
Financial advisors need to be proactive and not take extended breaks during the busiest time of the year.
Josh shares real-world stories of clients who built significant wealth by investing a portion of their income and diversifying their assets.
Annual reviews of life insurance policies are necessary to ensure they are still effective and meet the client's needs.
The benefits of cash value life insurance and the importance of having a permanent policy.
To Learn more about Josh Jalinski, check out his Jalinski Advisory Group - https://jalinski.com/