| There are two components for building a wealth | | | | Here's an example: you take the maximum |
| account... income and capital gains. | | | | contribution to your 401K Plan of $22,500 and |
| Income is the money you earn from your | | | | you invest in marketing your brand of chiropractic. |
| practice and interest or dividends from other | | | | In both cases, you get to deduct the $22,500, so |
| investment vehicles like stocks, bonds, real estate | | | | it doesn't impact your lifestyle or Profit and Loss |
| and retirement accounts. How has that worked | | | | Statement. |
| for you? | | | | But, in the 401K your contribution will "grow" |
| Capital gains is tax-advantaged growth in the | | | | provided the market is good... 10-15% in a good |
| value of an asset, i.e., stocks or real estate. How | | | | year. And, the growth is also tax deferred until |
| is that working for you? | | | | you withdraw. |
| In recent years, stocks, bonds, mutual funds and | | | | Invest the $22,500 into marketing and add |
| real estate have not been very profitable | | | | another $100,000 to your collections in the year |
| investment nor have they contributed any | | | | and you: |
| significant rewards to your wealth account. | | | | 1. $100,000 increased collections. |
| The best return on investment has been gold | | | | 2. $70,000 increase in your wealth account |
| recently, but, nothing lasts for ever. The stock | | | | subject only to capital gains taxes when you sell |
| market grew by 1% during the past 10 years... | | | | retire from the practice. |
| real estate? Well you probably know the story | | | | 3. You continue to receive the income, plus the |
| about real estate. | | | | next year increase, etc., until you retire. |
| But, the one source of income and wealth is your | | | | If you grew your practice $100,000 each year |
| practice. By far, it will outshine most other wealth | | | | over the previous year for 10 years, you would |
| producing schemes. | | | | have a million dollar practice, earning you $500,000 |
| On average, for every $10,000 your practice | | | | or more per year, and a equity value of |
| collects, you earn $5,000 in pre-tax dollars and | | | | $700,000! |
| you gain 70% or $7,000 more in equity when it is | | | | Compare that to a retirement account. Look at |
| time for you to retire. | | | | your plan statements and then compare the end |
| Essentially, for every $10,000 you increase your | | | | results. Only fixed income people should worry |
| collections this year, you add $12,00p to your | | | | about a poor performing retirement account. |
| wealth account! | | | | Chiropreneurs can grow their wealth much faster |
| Now, that's a wealth building program that you | | | | with a larger number by focusing on the growth |
| can control and not be subject to the ups and | | | | of your practice and not waiting to see if the |
| downs of the markets. | | | | market performs. |
| Every dollar that you put into an retirement | | | | Ah, you say, you have to pay taxes on the |
| account is a dollar that you were not able to use | | | | increased income... it's not tax deferred. True, |
| to build your practice. Ah, you say, but it is tax | | | | provided you don't REINVEST, your increased |
| deferred and when I withdraw, it will be tax at a | | | | income into more marketing for faster growth or |
| lower tax rate. Hogwash! First, taxes will never go | | | | you don't expand with additional offices... and do it |
| down and who wants to enjoy retirement at a | | | | all over again two, three or more times! |
| lower tax bracket? | | | | You have the greatest wealth-building plan... your |
| Grow your practice and you gain both increased | | | | practice. Maximize it and you will retire with a real |
| income and bottom line profits and you build your | | | | wealth account and the ability to enjoy the |
| equity in the practice when it is time for your exit | | | | lifestyle of the rich and famous. |
| strategy to kick in. | | | | |