Anderson Business Advisors Podcast

Financial Strategy Hacks!

December 10, 2019

You'll never go wrong, if you live by the Golden Rule: "Do unto others as you would have them do unto you." Today, Michael Bowman of Anderson Business Advisors and Bowman's Business Brief talks to George Antone, a financier and industry thought leader. George has the ability to take complex topics and make them easy to understand. He can change your perspective on financial life and teach you how to hack finances. His goal is to leave the world a better place by being in it.  

Highlights/Topics: 

  • Is there an overarching premise that George uses? Go straight to numbers; look at everything and ask, "How does this work, if it does work?"
  • When talking about investing and real estate, does George view leverage as good or bad? People need to understand and measure leverage; it can work for or against you
  • What is financial leverage? Borrow as much as possible vs. don't use debt for anything; find right amount of debt, not too much or too little
  • Is there good and bad debt? Good and bad debt exists; build wealth by focusing on using and measuring right debt and financial leverage
  • How much debt should you have? Determine debt-to-asset ratio as metric, depending on stage of life; most investors’ debt-to-asset ratio is too high (80-90%) 
  • What is a loan constant? Measure of flexibility and risk for loan; monthly principal and interest (P&I) payment, multiplied by 12, and divided by loan amount to get percentage
  • What should you consider when buying property? Know what to do when market goes down and be ready for it
  • Are reserves necessary when using debt? Anytime you use debt, you must have reserves; money in the bank gives you peace of mind when using leverage
  • What’s the difference between delayed vs. instant gratification? Be safe, especially when market goes down, reserves become allies
  • How George sets up his reserves? Create two types of reserves, primary and secondary
  • Should you use reserves to bring a loan down? Refinance to lower payments; never use debt for reserves
  • What /when to measure? Make sure every investment and entity line up each quarter 
  • Where’s the Finish Line when it comes to finances? Move faster, not backwards; generate a certain amount of money every year to maintain your purchasing power
  • What are banker’s rules? Play the spread game and pass all the negative impact of inflation to their depositors by being honest, ethical, and disciplined money manager
  • How to build wealth with fewer doors? Use new metrics and definition of success; start with good books and invest in knowledge
  • What are three metrics George recommends tracking? Debt-to-asset ratio, assets under management (AUM), maintain your reserves, and use right type of debt 

Resources

George Antone

The Debt Millionaire by George Antone

The Wealthy Code by George Antone

The Banker’s Code by George Antone

Rich Dad, Poor Dad by Robert Kiyosaki

Michael Bowman

Anderson Advisors

Anderson Advisors Tax and Asset Protection Event

Anderson Advisors on YouTube

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