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Advisors of Horizon are Registered Representatives of Cetera Advisors LLC, a broker/dealer and Registered Investment Adviser.

Nov 27, 2017

Wealth Building & Cash Management

-Podcast Show Notes-




In this episode, the Bush brothers, Bill and Pete of Horizon Financial Group talk about the next two critical categories on the Confident Wealth Scorecard – wealth building and cash management. Planning is ESSENTIAL when it comes to succeeding in these two areas. Those who struggle are often blind to the details of their portfolio and spending and don’t actually realize how much money they’re burning. Tune-in to learn why having proper SYSTEMS in place can transform your sporadic cash flow into a steady stream and some other insights that will help you score highly in these two critical areas.


Time Stamped Show Notes:


  • 00:43 – The Confidence Wealth Scorecard helps business leaders assess where they are right now and enables them to compare it to an ideal
  • 01:35 – Today, we are going to tackle wealth building and cash management; wealth building involves asset allocation and lifetime income planning
  • 01:52 – People who score the lowest are not keen on advance planning; their lifestyle and business consumes all their cash
  • 02:30 – A score of 4, 5, or 6 is for someone who directs all their money back into their business

o                   03:49 – Business owners often tend to overestimate the worth of their businesses

o                   04:40 – Diversification ensures that while you may not be making a killing on every dollar, you will NOT get killed either

  • 05:18 – A score of 7, 8, or 9 is assigned to someone who has built up a portfolio, but has not rebalanced their asset allocation, run retirement income projections or performed a fee analysis in the past several years

o                   06:32 – Ensure that there is minimal portfolio overlap and hence, less risk

o                   07:32 – Having a sizeable portfolio results in overconfidence and avoidance of going into the details

  • 08:00 – Ensure that your money outlives you and not the other way around
  • 08:38 – A score of 10, 11, or 12 is only possible if you started planning a long-time ago
  • 09:48 – You cannot accumulate sizeable wealth without a rock-solid plan
  • 10:34 – Cash management includes income, expenses and use of debt
  • 11:14 – Determining if you score a low 1, 2, or 3 in cash management

o                   11:37 – A poor cash management score is common in the initial phases of a business where you are probably the owner and sole employee

  • 12:32 – A cash management score of 4, 5, or 6 is assigned to someone with a moderately successful business but inconsistent cash flow

o                   13:32 – Not having proper SYSTEMS in place results in a sporadic business income

  • 14:19 – A cash management score of 7, 8, or 9 is for someone with a high income, good savings, but too much cash stashed away on the sidelines

o                   15:48 – Having too much cash results in losing out on an opportunity to generate additional income

  • 16:28 – Regular business, personal financial reviews and an ability to reliably predict profits are some of the factors which will help you score higher

o                   17:31 – Ensure you have methods and systems that will prevent loss

o                   18:36 – Diligent planning, a proactive approach and professional help will lead you to a score of 10, 11, or 12

  • 20:00 – We have tackled 5 of the 8 categories of the Scorecard now; we’ll tackle the last 3 in the next episode
  • 20:47 – Apart from making money, success is defined by how you’re doing in your personal life as well
  • 21:20 – Check out ourwebsite to know more about our team and our various services


3 Key Points:


  1. To accumulate a sizeable portfolio, you need a rock-solid plan; AVOID having too much cash stashed away and ensure there is minimal portfolio overlap.
  2. Owning a small to medium-sized business often results in a sporadic cash flow; scale your business by implementing systems that will ensure your cash flow remains stable.
  3. Diligent planning, a proactive approach and proper financial help will ensure that you score highly as far as cash management is concerned.


 To view the Confident Wealth Scorecard, click here.