This is the question I received yesterday from one of our participants. Here is the exact scenario she ran into in her words:
First I want to say I really enjoyed session 1 it was basic enough for me, and I am going to keep up with you, understand and learn all that you are teaching.
This past Fri I went to see the Bank Financial Advisor (they had called me in). Of course, they wanted me to buy Mutual Funds. I did nothing. They asked me what steps I was taking for my Financial Future. I told them that I was taking a course with a Wealth Strategist….The bank financial advisor told me that I was not wealthy enough for a wealth strategist. I did not really respond…Just “oh”. I told him that I would get back to him in late August or first part of September and let him know what I was doing/or planning. I have a job and I have a lot of equity in my home. My accountant told me that I can not become a business because I wanted to do the same thing…more or less…than what I now do…I told him I would do whatever it took to become a business…or whatever to bring down my taxes…he has not helped me. So…my question… am I not wealthy enough for a wealth strategy?
A: Congratulations on not caving to the strong-arm tactics of this sales person! The short answer to your question is: The less wealthy you are, the more you need a wealth strategy. Otherwise, how will you ever build the wealth you are looking for? I am constantly amazed by the thought processes of so-called financial advisors. It's pretty clear that the Bank Financial Advisor is nothing more than a salesman with very little training in financial principals. My guess is that he has less wealth than you have and is not well-equipped to respond to someone like you who is serious about creating wealth.
As for your accountant's comment – maybe it's time you found another accountant. Tax planning is a crucial part of wealth creation, as fewer taxes means more money that can be devoted to capital accumulation.The fact is, there are a multitude of ways to bring down your taxes if you have a creative tax professional and a willingness to learn. It is totally possible that you could create a business doing what you are doing to help lower your taxes. Our CPAs at ProVision help people with this type of planning every day.