In today's episode we speak about wanting to leave a legacy. Make sure to tune in if you want to leave a legacy for your family but are unsure about the execution in how to do it, and is stopping you for doing so.
The whole idea of legacy is not just to protect money. It's to transfer wisdom, and transfer good practices and principles to the next generation so that they don't just get the money, they get the wisdom as well. And that's really quite critical in the WealthBuilding process that we teach - in fact it’s point number seven in our own values in the Declaration of Financial Independence. In today’s episode you’ll hear how ‘leaving a legacy’ is the most common reason why our members wish to create wealth, and why it’s such a powerful motive that can make someone unstoppable. The challenge for many, however, is that whilst they may have good intentions, their execution and lack of a solid plan lets them down.
Resources Mentioned In This Episode:
WT003: The 5 Levels of Wealth and Knowing Your Reason Why
WT006: Using Wealth Dynamics To Find Your Personal Flow
WT008: Protecting Your Assets [The Roof]
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Unknown Speaker 0:02 The purpose of wealth talk is to educate, inform, and hopefully entertain you on the subject of building your wealth. Wealth builders recommends you should always take independent financial tax or legal advice before making any decisions around your finances.
Unknown Speaker 0:19
Welcome to Episode 32 of wealth talk. My name is Christian Rodwell, the membership director of wealth builders and live and by my side today. Good to be back with you, Kevin.
Unknown Speaker 0:30
Yes. Hi. Good to meet you again, Chris. And I'm we're spending some good time together. And we've heard some really good contributors over the last few episodes quite a lot, actually.
Unknown Speaker 0:40
Yeah, thank you to our guests. And thank you to our last podcast guests, which was shocking to us and lots of people giving us really good feedback talking about property tax, but yeah, that time.
Unknown Speaker 0:51
Yeah, and I guess taxes and overlays and that we talked about that for every asset and probably shares could have kept going for hours. If he was Talk about, you know, your own property, I think you mentioned rent to room, you talk about pensions, we could talk about all of the Seven Pillars, and each one of them will have a different way of dealing with tax. So it's really quite a critical strategy. And in a podcast, you're never going to get all that across. But it's definitely critical to have a tax overlay it and of course, one of the biggest taxes is inheritance tax. And it's a voluntary tax, it's almost a tax paid by people who like the non revenue more than they like their kids, you know, but in reality, it's not that it's a lack of planning. So I just thought it might be useful, just to try and build the thought of leaving a lasting legacy. And kind of put that into the mix of people's thinking as they start to turn the wheel on building their wealth, so they don't wait until they're wealthy to protect their wealth. You know, we know how we have a mantra within wealth builders, which is to create to build and protect wealth. A lot of people get that the wrong way around. They think it's, they protect once they're wealthy, but you don't do it that way you do it from the very beginning. In fact, it's enshrined in the Declaration of Independence that we've written. Yeah, it's a, it's number seven, out of seven. But it's still very critical. And it and I read it because it's very relevant, says, new declaration of financial independence. Number seven, passing on legacy, together with the principles and wisdom to maintain an expanded. In other words, the whole idea of legacy is not just to protect money. It's to transfer wisdom, and transfer good practices and principles to the next generation so that they don't just get the money, they get the wisdom as well. And that's really quite critical. And you know, you can do that from the very beginning, Chris, you don't have to wait until you've got that at the end.
Unknown Speaker 2:58
Well, obviously, walking through founding members the process aren't way of building wealth and one of those early elements other than the foundation is the roof and the protection of your assets. And that's very much integrity, isn't it to the legacy?
Unknown Speaker 3:12
Well, you really is integral, it's definitely worth trying to draw the threads of this together. But if you think about the very beginning, the very first module in the wealth building principles is the reason why. And what's the most common reason why we get legacy is it's really, you know, protecting people and leaving something that is substantial for people that they love. And that was absolutely my reason why, and continues to drive me forward. And those people with that strength of reason why are almost unstoppable, but what what stops them I think, sometimes is they, they don't really put the practices into place to protect that wealth. So good intentions and bad execution. And for those who may be done Know, you know my father who died very young, and he had a business. Don't think I've shared this part of the storey with you, Chris. might be useful because to me it's quite critical. So, you know, he had a business, he was organising workers who used to in the naughty Oh, and he would be like an agent, you know, bringing in labourers and bringing in steel workers and those sorts of things. And a nice little business. It was definitely showing signs of making some good progress, but I could definitely tell we are better cars and we had a better house compared to what we had originally. But unfortunately, as we both know, he died very young. He didn't have a business that work without him. He didn't leave a will. And he didn't really have any life cover. And as a result, he left the family with debt. Not great. But he was a great guy but just didn't execute things because people are the full on jobs are full on businesses often just don't do this. Things that they should do to take care of the roof, for example. So making sure they've got a will, and updating it, making sure they have got powers of attorney, so that even if you're not dead, but you're just not well, things can be taken care of making sure that you know how you own your home and putting things into trust, because a trust is a way of passing things on to the next generation. Because that's essentially what a trust is. It's a way of holding an asset or something that passes on to the next generation with some rules. And this is the essence of good legacy planning. It's thinking about your whole way of building wealth, like a trust fund, and creating rules and starting really from the very beginning. more than happy to share how I do that.
Unknown Speaker 5:47
Yeah, and we've literally just come out and meeting Haven't we, and we touched on this and kind of see the eyes light up. And we often have this effect when it really becomes much bigger than the person themselves and they start thinking about Family and being inclusive and yeah, putting in theory around it as well.
Unknown Speaker 6:04
Exactly right. And maybe I'll explain how I approach that and why it always is a lightbulb moment for anybody we share it with. Because you know, we had a coaching call today we actually had a meeting with someone who's very great at what they do very busy, very successful in earning a living. But there was some gaps weren't there in some of the things that they were doing to build their wealth and the reason why was family. But the family weren't included in the plan was almost like this person was trying to build their wealth, to support the family, but doing it on their own is the way to try and include the family from the beginning. And this is the way I articulate to Chris which is why we thought it would be useful to share is this that we know that when we're asking people to create a wealth plan, we want them to create a level of income that will flow from assets. That will make them financially completely independent for the rest of their life. So let's think about that. So if we imagine and what's the average figure, we get Chris 10,000 pounds a month, 10,000 pounds a month, so decent, you know, income for most families, from assets to declare from assets, not from income. And so it's not 10,000 pounds a month in a job, or 10,000 pounds a month in profit from a business is 10,000 pounds a month in this example, that would flow no matter whether you were there or not, whether you showed up didn't matter, the money will show up. So you just that's the whole point of the legacy. The way to think about that is almost to imagine that the very objective of achieving 10,000 pounds a month is a business in itself. So the conversation might go along the lines of something like this. I'll use you as an example. Okay, so So Chris, you know, you have an objective and I'm very clear. You've got a very strong legacy and family committed Then what I want you to do the minute then is imagine you're creating a brand new business, not a real business, we're not going to create it in Companies House, we're going to create it together in our mind. And in our mind, we have an objective and that objective is to write a paycheck for life of 10,000 pounds a month, net of tax, net of all costs. So you've got 10,000 pounds a month coming no matter what, month in, month out forever. That's the objective of the business. So it pays you Chris, who pays a spouse if you had one. It pays your children it keeps paying forever. Now that's a laudable business when you agree, that will be something worthwhile spending some time on so let's give it a name.
Unknown Speaker 8:48
Let's call it Team Rodwell.
Unknown Speaker 8:52
Okay, so say was Team Rodwell, or whatever would be you know, you create a name and the name doesn't necessarily have to reflect your name. The name is Doesn't have to reflect your business, you know, so you could just create something that resonates with you. And what I've often find when I say to people think about a business name, that would resonate with your family, that they would see a trust fund with a name, that would mean something to them. And you get all sorts of different names, you know, you get big dogs, Little Acorns, red giraffe, Black Panther, whatever. And what's fascinating is what people choose. But once they've created that name, I asked them to go back to the family and think about a logo or an emblem that they would put to that business. You know, so in your case, it was Team Rodwell, you know, what would that logo look like but
Unknown Speaker 9:48
and that's a fun process sat around the table
Unknown Speaker 9:51
on a Sunday, and you know what, what happens is you get all my 14 year old son created a great picture of this and we want to just formalise that And almost just begin that process of getting, you know, children involved. And sometimes spouses, because you'll often find somebody who's taking the lead role in the wealth building and somebody taking a more passive role. You know, somebody is a driver, sometimes the passenger, not always, but very, very often that's the case, but also bringing them in as well. So it's not just the business name, it's a fictitious business, but it's a very, very laudable business, and then say, so you have the role, Chris, of being the MD. And in support, we are acting as long as we're invited to be a part time FD, not owning any of the shares, not owning any of the equity, not taking that money away from you, but trying to support you and making that work. And that's the essence of how it starts. And then you then start to determine the roles that you need to create to achieve that 10,000. So it's not that it changes the wealth building principles, you still got to do your reason why still got to know your wealth dynamic, you still got to know, you know, do your debits and do the roof and all of the things and use your leverage all of the things we've been teaching, but you're doing it and inclusively sharing that with the family, as opposed to just doing it on your own. So it's adding another layer of support. And another layer of visualisation, that usually is quite powerful. And many times when I do with husbands and wives together, you physically see the change in their emotion. You know, it's quite dramatic thing to see
Unknown Speaker 11:34
another powerful impact is, as we've seen, and we've talked about this on previous podcast is I don't have enough time. So in terms of building wealth, you have to find the time for that. And when you suddenly make it you have a much bigger purpose of bigger Why yes, not just about you, you suddenly find the time because it the importance is now stronger.
Unknown Speaker 11:55
Well exactly in the same way as if you got a job, but you create your wealth business, then you give time for the wealth business and you earmark that time. And it's sometimes just becomes easier to visualise that and you box it in as Rodwell, Team Rodwell, or whatever it would be. So to me, it's very interesting to think about the legacy by beginning with the end in mind, rather than looking at the protection and doing those things like,
Unknown Speaker 12:22
so how else might someone get the family involved in this process? Kevin,
Unknown Speaker 12:27
I think the important thing to do certainly as a starting point, is to get sponsors to do their wealth dynamics. Because when you understand how both sides will interact, you can overlay them and see how they work. You'll often see challenges, you know, areas of challenge, I'll give you some examples. So, somebody might be really interested in property, but their source of leverage might be the equity in their home. But the spouse could be all about the security of the home. And they'd be unwilling for that home to be used. Now, you remember, I've made mentioned this myself. So one of the decisions that that I made very clearly, which was in consultation with my wife, who's the boss was, don't tap into the equity though she didn't say that. She said, You know, I understand what you want to do. And that's you. But please do not put the home at risk. So the home is never been at risk, and it will never be at risk. So there is no mortgage and there won't be one. And we paid it off fast. And that could be a way to recognise now I didn't do too well dynamic of my wife, but I knew that's her highest value order was security. And that was really important. So you can either do that by having that conversation and understanding where the conflicts arise. But also looking at the wealth dynamic, which is an easy thing to add on. I think, you know, we've got a link where people can go and do additional wealth dynamics of that show notes. Yeah,
Unknown Speaker 14:03
of me. I've had many cases where people have done this in relationships, and they suddenly become sympathetic and yeah, fought back to all those times where there's maybe been a disagreement and they suddenly go, aha, okay, well, now I understand that that's just your way and in the future, we'll just both be mindful of.
Unknown Speaker 14:22
And of course, that awareness is really important because it is about respecting the dynamic. It's not saying, you know, we there's a cause for disagreement, it's understanding where that cause could show itself and then deal with that, you know, so that's a very powerful thing. And I know there's been, there are some people we know who use the equivalent version of wealth dynamics called talent dynamics, which is not necessarily focused on wealth. It's more focused on where you add value. Ideal for people in jobs, for example, but there's a specific version for children. So that if you're not that you need to do that but if you are curious or you have Children who would definitely showing signs of being interested in in the kind of monetary side of things not by being greedy, but just by being curious then looking at the talent dynamics can be an interesting way to include them. I think we heard from one of our founding members in the foundation course talking very actively about how their kids are hugely interested in doing some things
Unknown Speaker 15:24
yeah looking one member looking at the business pillar and really involving the children and asking you know, what kind of ideas if you got and I think they went out car booting and selling items and you know, teaching the children the value of money and learning some sales skills along the way and making it fun.
Unknown Speaker 15:41
Yeah, exactly. And, you know, in I think I wrote the book called save a fortune, which again, can make available for free to anybody, Chris. It's the How to completely eliminate your mortgage loans and credit cards fast. Okay, that was the first book I wrote and that actually helped me pay my mortgage off in seven years flat, which was a pretty good outcome. But one of the secrets in the book and the 12 secrets is to what I call in the book become a great salesman. And it's not really that it's just a play on words, is to recognise that sometimes we have in our life, clutter and things that are just not serving a purpose anymore. And then you can sell those things, identify things that are redundant, not needed, and kids are perfect for that. You know, I remember, one of my sons would would, you know, I used to always go to charity shops and buy books, and then take them back to the junk shop, these sort of things. And he was getting all my books as engineer that dad knows, and that was a music magpie or something, and he was selling all the books and he's sold all the old mobile phones and yeah, CDs that nobody listens to anymore for Spotify, you know. So, there's just different ways kids can look at what's redundant. sell it to create a value And then show them the value of money, either a bit for themselves, you know, in terms of the savings account, or to even in some cases, you know, have it regularly and they almost see themselves as being a mini part of Team other. Yeah, yeah. And so they're contributing something. All these things sound a bit unusual, but they're, they're not a bit about including them. Because so many even see adverts on the telly these days, which is money is the hardest conversation for people to have. And it certainly is for older generation. So bringing it to the table, and that's the best way to do it at table. Yeah, and having conversations and being open and honest about that. Which is the reason why it's best for husbands and wives to be completely comfortable with themselves. Because when they are they can bring the kids and you can immediately see the differences in how your kids react. You know, some unnatural business minded, they're thinking your creative solutions, some are very cautious. You know, I've got three kids and are all completely different and the way they approached So even though I'm the same and my wife's the same, they are very, very different and how they will end up contributing to our family trust fund by participating is very, very different. So being unique to spot that or spot that uniqueness is a key skill to then try and help that one of our clients who's been on the podcast is a contributor Mark Stokes. Yes. very passionate about young entrepreneurs. So we don't teach entrepreneurship at school. So why not feed that entrepreneurship and encourage people to see value? It's not business, really, we're not trying to create millionaires. But increasingly, the children are open minded and creative. And you can use that creativity not necessarily purely for academics, but for seeing ways they can add value. And I think it's a brilliant thing when you see creative kids doing it that way, or we should take this opportunity to congratulate Mark because his new book actually has gone to number one this week, which is advice to you younger self, and what a brilliant idea you know. So having best part of 50 people thinking about what advice they would give to their younger self, and I bet half of the nuggets in that book, have yet to read it, of course, but I will do avidly. But I bet vast majority of the lessons of things that they would have taught themselves when they were much younger, and it would be about embracing and being more open minded about sharing.
Unknown Speaker 19:27
Great, so I hope we've given our listeners something to think about there. And if you are listening right now, maybe use this and and start thinking about a name for your wealth, business, your your legacy that you wish to leave behind,
Unknown Speaker 19:40
you know, and I'd love to hear some storeys about, you know, people doing that because what I've noticed when people create businesses of their own, they will often create a business with the initials of their kids, they'll often have some significance. So go off creating wealth business, you know, with that huge plan to create financial Independence and then abundance for you and your next generation, the generation after that, and think about them toasting you in 150 years time saying, you know, raise a drink took care of he set it all up, but we've taken it on, we haven't just spent the money and think about a name. And really do think about it. And if you get a name that you really resonate with, send us a note, let us know you. You've thought that this is a great idea, and you've done something with it. And I know many of our clients have and I'm looking forward to some feedback. I just thought this would be a useful interlude. From the focus of dealing directly with the assets on the
Unknown Speaker 20:35
Yeah, yeah, we're just taking a brief break as you say, we spent quite a few episodes on property pillar pillar for you and we're Of course moving through the pillars in order and we'll be moving towards the business pillar
Unknown Speaker 20:47
for our favourite favourite pillar will be getting to the but that's such a huge topic. I need to get my head in gear and so how are we going to teach this in the right way, but start now make your own children entrepreneurs. Think about your wealth as a And get ready for the learn lessons will share with you on the business pillar or to come very
Unknown Speaker 21:04
soon. And of course, in between podcast we're very, very busy supporting our founding members. And, you know, everyone's really, really, you know, coordinating jelling. We're building such a fantastic community that we've been foundation programme. And one thing we've picked up on, on our coaching calls recently is, is an area we've touched on before and it's it's around this area of leverage. And we talked about this in Episode 11, actually, where we went through the FYRST. Yeah, but with our founding members, we've we've kind of spent a bit more time haven't when it's worth maybe sharing some of those insights on next week's podcast.
Unknown Speaker 21:40
I definitely think so. The whole idea of needing leverage up can't create wealth without leverage. It's simple as that you have to get some form of leverage in play. And if you imagine that the wealth is a business, then you've got to choose the right form of leverage to bring to your business and Right order where you are today, and that's where people have been struggling just a little bit. So I think giving them a good insight and sharing that with a wider audience Chris will be really helpful. That'd be great. Okay, a lot of that came in. Okay. Okay, so yeah.
Unknown Speaker 22:17
We hope you enjoy today's episode. Don't forget that we are constantly updating our resources inside the wealth builders membership site to help you create, build and protect your wealth. Head over to wealth builders.co.uk slash membership right now for free access. That's wealth builders.co.uk slash membership
Transcribed by https://otter.ai