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Intelligent Investing for Time-Strapped Center Owners
To be a successful bowling proprietor means being good at many different things. We are our company CEO, CFO, and COO; the complete "C" Suite. We are also responsible for "soft" business skills, like human resource management, sales, and my least favorite of all, marketing. Then there are mechanical fixes, and janitorial cleanups to handle. In business school, I was taught that these various roles were individual career paths. Never did I once consider I'd have to juggle all of them simultaneously and mostly alone. All I can say to that is, hats off to the individual who survives the variety of roles and breadth of responsibility called 'managing a bowling center.'

With an intent to help you prosper, I offer a common-sense framework for building wealth with simple investment strategies.

Thomas J. Stanley and William D. Danko, in their book The Millionaire Next Door, analyzed numerous real-life examples of small business owners getting rich slowly. They conclude that it's all about saving and not spending the money. They found that millionaires are mostly frugal people who live simple lifestyles below their means. Bowling alley proprietors, I like to joke, are frugal because we have no time to spend our money. That's a nice discipline to have, even if it is forced upon us.

For most of my Wall Street career I earned a high income, and thought I was rich. But I wasn't. That's because I also lived a high lifestyle, spending my savings on consumable items and experiences, instead of investing in appreciating assets. For example, most of us have a mortgage on our property and may think of it as a burden. I now find comfort knowing that a portion of each monthly mortgage payment goes toward principal, a form of savings. Regardless of how well the month went at the bowling center, if I pay the mortgage, then I saved money. And saving money in an income-producing property that you know better than anyone else is intelligent investing.

Stanley and Danko do a good job in their book instructing us how to save the money, but not a very good job telling us what to do with it. Putting savings back into our business is smart, by paying down the mortgage or investing in new attractions. But what if we want to diversify and invest outside of bowling? How have our small business skills been honed to do that, when we eat, drink, and sleep only bowling every day? Well, it starts with a savings plan.

In Profit First, Mike Michalowicz turns a traditional business formula on its head. Instead of: Sales - Expenses = Profit, he proposes his Profit First Formula: Sales - Profit = Expenses. The subtle difference is game-changing. Your business can ensure profitability by saving first.

With the new year upon us, I challenge you to a resolution of saving a little right off the top every month. In addition to investing in a traditional IRA, this year you might consider funding a SEP (Simplified Employee Pension). A SEP IRA allows small business owners and self-employed individuals to contribute as much as 25% of their income towards their retirement plan. Or maybe it is time to set up a 401k plan for you and your employees.

Regardless of the direction you choose, stick to the plan and put a little away every month. You'll be richer for it.


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WARRANTIES & DISCLAIMERS

There are no warranties implied.
Any opinions expressed on this website are the opinions of WT Wealth Management and its associates only. Material listed on this website is neither an offer to buy or sell securities nor should it be interpreted as personal financial advice. You should always seek out the advice of a qualified investment professional before deciding to invest. Investing in stocks, bonds, mutual funds and ETF’s carry certain specific risks and part or all of your account value can be lost.

At WT Wealth Management we strongly suggest having a personal financial plan in place before making any investment decisions including understanding your personal risk tolerance and having clearly outlined investment objectives.

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WT Wealth Management is an SEC registered investment adviser, with in excess of $100 million in assets under management (AUM) with offices in Flagstaff, Scottsdale, Sedona and Tucson, AZ along with Jackson Hole, WY and Las Vegas, NV. WT Wealth Management is a manager of Separately Managed Accounts (SMAs). With SMAs, performance can vary widely from investor to investor as each portfolio is individually constructed and managed. Asset allocation weightings are determined based on a wide array of economic and market conditions the day the funds are invested. In an SMA, each investor may own individual Exchange Traded Funds (ETFs), individual equities or mutual funds. As the manager we have the freedom and flexibility to tailor the portfolio to address an individual investor's personal risk tolerance and investment objectives – thus making the account “separate” and distinct from all others we manage. An investment with WT Wealth Management is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Any opinions expressed are the opinions of WT Wealth Management and its associates only. Information offered is neither an offer to buy or sell securities nor should it be interpreted as personal financial advice. Always seek out the advice of a qualified investment professional before deciding to invest. Investing in stocks, bonds, mutual funds and ETFs carries certain specific risks and part or all of an account's value can be lost. In addition to the normal risks associated with investing, narrowly focused investments, investments in smaller companies, sector and/or thematic ETFs and investments in single countries typically exhibit higher volatility. International, Emerging Market and Frontier Market ETFs, mutual funds and individual securities may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles or from economic or political instability that other nations experience. Individual bonds, bond mutual funds and bond ETFs will typically decrease in value as interest rates rise. A portion of a municipal bond fund's income may be subject to federal or state income taxes or the alternative minimum tax. Capital gains (short and long-term), if any, are subject to capital gains tax. Diversification and asset allocation may not protect against market risk or investment losses. At WT Wealth Management, we strongly suggest having a personal financial plan in place before making any investment decisions including understanding personal risk tolerance, having clearly outlined investment objectives and a clearly defined investment time horizon. WT Wealth Management may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Individualized responses to persons that involve either the effecting of transactions in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption. WT Wealth Management's website is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of WT Wealth Management's website should not be construed by any consumer and/or prospective client as WT Wealth Management's solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the internet. Any subsequent, direct communication by WT Wealth Management with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of WT Wealth Management's current written disclosure statement discussing WT Wealth Management's registrations, business operations, services, and fees is available at the SEC's investment adviser public information website (www. adviserinfo.sec.gov) or from WT Wealth Management directly. WT Wealth Management does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to WT Wealth Management's web site or incorporated therein, and takes no responsibility therefor. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.

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