A highlight from Should You Start Your Own Business?

The Money Guy Show


The money guy guys. Just keep keep giving them to me. I'm going to start with this first. One from brian is bryan with a y. He said for a person in their early forties that has a net worth over a million. Is it okay to slow down in order to make a kid's dream come true specifically. He wants to be a race car driver. So it has a monetary cost to it so this is a little unique. He's asking all right. We're in our forties and we had his net worth over a million. Can we take our foot off the pedal and pursue this other thing for the benefit of much out or perhaps. If that's something they're thinking about doing how would they assess if they're at a place where they can do that and that is something that they've done the work to lay the foundation to be able to do. Well look at this. I mean i think this is a great time. Ask a question like this because we're right in the middle of the olympics right now and you and you just know. Every one of those olympic athletes had somebody in the background that recognized talent at a young age fully invested in it and then through their raw determination. Talent and discipline turned into these. You know gold medal seeking olympians and then he mentioned racing and i think about if you haven't gone on net flicks and watch that formula one series. It's fascinating to see that all these young folks that are running these formula. One cars typically started in go kart racing at earlier young age area. And so i think this is a great question but i do think that I'm just i. I have no problem. Especially if somebody was a financial mutant and they've laid out the foundation seven figure investable assets in your early forties son to be commended. And that's great that does provide you some additional flexibility to consider. Yeah what's beautiful is. If you go out to our website money guide dot com slash resources. Look at a wealth multiplier. You can see that if a forty year old has a million dollars without saving another dollar. That million is on track to be worth seven million by the time they get to retirement. That's a great resource to go use. So what my word of caution on this is a look at this as almost as a business endeavor i in some ways. Now look i want you. If you just for your kids happiness then you need to put with that. Happiness in a dollar amount is worth that. This is something. Because i was i went to the movies this past weekend with family when saw jungle cruise. How was the two actors on their carry. The movie i mean it's kind of if you thought about the concept or the plot. It's kind of hokey but those two actors really carried it but it was one of those things while the trailer was of the williams sisters. If you think about that there's a movie coming out and it shows his father that just putting all the energy into into these. Tennis fee gnomes at an early age and i love those stories and will smith's go be in that movie but but here's the thing i would ask if anybody has these type of aspirations just like in a business i have you do what you think will happen. Worst case scenario and then best case scenario. I want you to kind of sounds weird because this is you know your children in investing in talent. But i'm telling you this so you can go into it. Realistic on where you're putting a boundary or a stopping point on how much you're going to invest in this because what i don't want you to do is be that american idol parent where they tell you you go on camera and they tell everybody how awesome their child is and then their kids. I note is so off tune that you're like oh that has to be the love of a parent. We'll see that those people are unrealistic. So i don't have a problem with apparent investing in their children and putting hope as long as the kids have the passion not putting your dreams and your child but if the child has the talent in the passion but then be you'll get to a point that you just need to say. Is this worth it and you you coming from a baseball background. Collegiate baseball background. You probably have a unique perspective on this too. I was gonna say one of the things that i would i. Would you would need to assess is if you were going to go down this path with your child. Do you know how far that path goes when early on one of the big things. When i was coming up was travel. Baseball was turning into like this whole thing like in not like traveling the next county over like traveling from state to state and like it. Was this like interesting idea to play ten games and travel around for a five six seven year old kid but then as we got older. You know we're talking about playing forty fifty sixty games in a summer which is sort of mind blowing right so you need to understand if you're going to go down this race. It's one thing if you say all right we're gonna take our foot off the pedal in we're going to allow our child to pursue becoming a race car driver but that allow your assets to continue to build towards financial independence. The background or does it become something that begins drawing off of those assets that you've already bill because if it does that you really have to think through. Are we in a position where we can afford to do this. This is a great time. If you are thinking about large investments that have a very very long tail like a racecar driving career. I would say this might be a great time to think about going to the next level reaching out to a professional advisor to say. Hey let's play this out if we cut our savings and we know it's going to cost this much and we have this income. Does this actually work for the next eighteen years. Well you just. Because i was gonna say you need to be able to walk and chew gum at this time because you need to not only you've got to parallel things going here. You've got your

Coming up next