How Entrepreneurs can Save Money for Retirement and Financial Independence

October 2, 2017

Show Notes

Today we have Bennie Evans from Purposed Consulting talking about: 

  • Why you shouldn’t keep your money at a bank?
  • “How can entrepreneurs prepare for retirement” since a 401k isn’t available?
  • Why financial independence or fully understanding your 401k is important as purchasing your first home/car.

You can find out more about Bennie here:




Christian: [00:00:15] Hey,what's going on? And today we're going to talk about how entrepreneurs can savemoney for retirement and/or financial independence. We're going to talk alittle bit about why you shouldn't keep money in the bank. We're going to talkabout 401ks. We have a lot of good stuff going on today, and we also have avery special guest, our good friend Bennie Evans, vice president at PurposeConsulting.


Bennie: [00:00:35] Wow.Wow. Thank you. Thank you. So glad to be here. Thank you for having me on theshow.


Aaron: [00:00:40] Allright. So we know you pretty well, but there's a lot of people who arelistening in from all over. I don't know. We've got to check out our Blubrryfrom where at, but there's a lot of weird places. They don't know who you are.So can you give us a little background about who Bennie is and PurposeConsulting?


Bennie: [00:00:54] Yeah,absolutely. My name is, of course, Bennie Evans. I grew up in Baltimore City,Maryland. Actually, myself, I actually went in the military back in '98. So I'ma veteran. So all the veterans out there, salute to you and everyone out therethat has actually served our country.


Aaron: [00:01:11] Salute.


Bennie: [00:01:12] Absolutely.So actually from there, own my own business and became an entrepreneur by- Ihad a little restaurant in Baltimore City, Maryland. Half Korean, and I'm halfAfrican-American. So I cook soul food and Korean food fused together, and I seethat's a big thing out here in the Dallas area. We have a-


Christian: [00:01:33] Lotof fusion.


Bennie: [00:01:34] Alot of fusion. So I'm loving that. And from there, I actually moved out toTexas. Good ole Texas. You know, they say everything is big in Texas besides myfeet, but you know, who's the judge? But anyway, I'm out here, you know. Iactually got into the lube business. Learned about cars because actually when Iwas in the military and U.S. Army, I worked on a lot of vehicles. From there, Idid that for nine years in the Texas scene. My wife, Kimberly Evans, who'sactually my soulmate who is actually the CEO of our company, wanted me to comeinto the money business with her. So she's actually a great influence of mine.A little bit of her background is she's a JD/MBA. She's an attorney by trade.She co-wrote the Home Affordable Modification Program, under the Obamaadministration. She's also a member of Mensa and-


Aaron: [00:02:31] What'sMensa for people that don't know Mensa?


Bennie: [00:02:33] Yes,so, that's like the top 2 percent of the smartest people in the world. So yeah,me, I think I'm in the 90 percentile. So, but yes, she's pretty smart and verymoney savvy and kind of taught me the ins and outs about a lot of things that Ididn't know growing up. So that's what actually made me jump into the business,and our tagline is "Real people with a real purpose," because we'relooking at our clients and business owners out there and just trying to helpthem out to actually have the safe money for retirement, the financiallyindependence.


Christian: [00:03:07] Right.You guys focused a lot in education.


Bennie: [00:03:09] That'sright. That's right.


Christian: [00:03:11] Makingsure that people and business owners and entrepreneurs have the education inorder to basically succeed.


Bennie: [00:03:17] Absolutely.


Aaron: [00:03:18] Onething I was going to point out is that - before we go any farther and Benniekind of explains this - is he's basically the safe money strategy master overhere. So the strategies and stuff we're going to talk about on this episodethat Bennie's going to break down for us are all safe money. Right, Bennie?


Bennie: [00:03:33] Absolutely.You know, and nothing against anything risk based. We want to just- we thinkthat there is a great place for a lot of people- there's a lot of people outthere that just don't understand that they're losing money. One of the favoritequotes of mine is Warren Buffett. He states two things about money. Number one,never lose money. Number two, see rule number one. So. And that's what the mainpurpose of it is. It's just let's go ahead and educate a lot of people outthere who doesn't know. And one of the things is about the rule of 72. A lot ofpeople do know it. It's a simple rule. Albert Einstein said that it was actuallyone of the eighth wonders of the world. That when he discovered it, pretty muchyou get the- let's just say if you had a dollar, earning at one percentinterest rate and you're dividing 72. So one goes in a 72, how many times?


Aaron: [00:04:22] 72times.


Bennie: [00:04:23] OK.Now the question's going to get a lot harder than this, Christian, since youdidn't answer.


Christian: [00:04:27] I'mnot.


Bennie: [00:04:27] He'sover here pulling out a calculator. So yeah. So one goes into 72. One goes into72 72 times. So if you've got an interest rate at one percent, it would prettymuch take your dollar to turn into $2 automatically in 72 years, and if youactually think about that, if you look at the current CD rate, the current-what is it? .26 percent? I think the last time I looked was .55. So if youactually put .26 percent into the rule of 72, it'll take your money 288 yearsto double. And how many- 72.


Aaron: [00:05:05] I'llprobably lived to 300. So I can use that at least once.


Bennie: [00:05:09] OK,Moses. Yeah. So we just want to educate people because we were taught at ayoung age to put our money into the banks, and the reason we like the bank isbecause it's safe and that's all we knew because our parents did it. It'sconvenient. It's FDIC insured. So but what's the, you know, the definition ofdoing the same thing over and over again and expecting different results?


Christian: [00:05:37] Insanity.


Bennie: [00:05:38] That'sright. Insanity. So why's-


Aaron: [00:05:39] OK,so Bennie, I guess before we go farther down this bank road or whatever, whyare you advocating for us to not put our money in the bank?


Bennie: [00:05:49] Well,because- I'm advocating for you not to put your money in the bank is becausethere are trillions of dollars in the bank system right now earning less thanone percent. As I explained to you on the rule of 72. You know, you're keepingyour money in the bank for what? I mean, I'm sure that you're probably keepingyour money in the bank, right, Aaron?


Aaron: [00:06:08] Ihave some money in the bank, yeah.


Bennie: [00:06:09] Don'ttell how much you have right now, all right?


Aaron: [00:06:13] Tonsof zeros.


Bennie: [00:06:14] Allright. So let me ask you this, is that money for you for retirement?


Aaron: [00:06:18] No,that money is not.


Bennie: [00:06:19] OK.So and what about you, Christian?


Christian: [00:06:21] No.


Bennie: [00:06:22] No.


Christian: [00:06:22] Nota lot of money in retirement.


Bennie: [00:06:23] Notwo cents. OK. Great. So you know, why I'm advocating this is because a lot ofus are living for today. We live in this microwave society that we want to goin and double our money. The reason I'm telling you is that there's other waysto actually put your money into investments, safe investments such as aninsurance company. A lot of people don't actually know that you can actuallyput your money into an insurance company. Yes, you can, Bennie, and the reasonbeing because the bank only insures 26 cents to every dollar of your dollar. 26cents. An insurance company has to have a dollar and 11 cents to every dollar.Yeah. Makes sense? So let me ask you this, I mean, you have a nice office here.You know, great office. I mean, I'm just- I feel like a president in here. Youknow.


Christian: [00:07:16] Thankyou.


Aaron: [00:07:16] It'sthe executive desk.


Bennie: [00:07:18] Youknow, they rolled out the red carpet just for me. So if a tornado, God forbid,was to come through here and tear this office down, let me ask you this, who'sgoing to actually come in and build another one like this? Is it going to bethe bank or is it going to be the insurance company?


Aaron: [00:07:34] Theinsure- Well, technically I mean, you want to break down, it's going to be theconstruction company- I'm just playing with you, Bennie, but the insurancecompany is going to be the one who pays for it, right?


Bennie: [00:07:45] Right.The insurance company's going to come and build one. See, here's the thing. Alot of people don't understand is that, you know, it's insured as well. So withthat being said, you put protection on your house. You put protection on yourcars, but you don't put protection on your retirement dollars.


Aaron: [00:08:04] Bars.Right there. That's what we need to say, right?


Bennie: [00:08:07] Thisis grown people bars right here.


Aaron: [00:08:09] Grownpeople bars. All right, so I mean, the focus here is- or our audience is smallbusiness, entrepreneurs, and probably some friends and family, but so let'sfocus this on to some entrepreneurs and how can they prepare for retirement?And you know, is a 401K a viable option for them? So there's kind of like a twopart question in there.


Bennie: [00:08:32] OK,well you know, my memory is kind of bad so you're going to have to-


Aaron: [00:08:35] I'llrepeat the second part of it later.


Bennie: [00:08:36] OK.OK. Awesome. So yeah, definitely share that with me. With a 401k, I havenothing against 401ks. I think 401ks are a viable option for retirement. Like Isaid to the people out there listening, I have nothing against risk-basedproducts, but I think that there's an important place such as the foundation ofyour retirement money. So excuse me. If you have a 401k out there, I wouldsuggest everyone out there that if it's matching, take it. You know, that'sfree money, and I think if any adviser or consultant or strategist tells younot to do that, they're telling you wrong. And the reason I'm saying thatbecause if a company is actually matching five percent and you put in 50,000,and let's just say it'd grown up to 100,000, right? In the market because 401kis risk based, right? So if it drops down 50 percent and you had 100,000, howmuch do you have? Pull out your calculator.


Aaron: [00:09:33] Idon't know 100,000? 50,000?


Bennie: [00:09:35] Butthere you go. 50,000.


Aaron: [00:09:36] 50,000.Oh yes.


Bennie: [00:09:37] Solet me- ding, ding, ding, ding. You're the next contestant on The Price isRight. So yes, 50,000. So now that you've got the $50,000, now did you lose anymoney?


Aaron: [00:09:47] I'mguessing by the way you asked that we didn't lose money.


Bennie: [00:09:50] Youdidn't. You lost the company's money, right?


Christian: [00:09:53] Right.


Bennie: [00:09:53] Youdid because they matched it, right? So now you have a lot of people out therethat are actually put in, like, 10 percent and the company's only match five.So now let's put the same scenario. If it dropped down 50 percent, not only didyou lose the company's money, but you lost some of your money too. You know, sowhat we tell you is that the money that you invested, the 5 percent, if youwant to actually invest the other 5 percent, let's go ahead and move it tosomewhere else. You know, into a safe money strategy such as a tax-free retirementaccount or index account and which we can actually talk about as well. And I'msorry. Did I answer that second part of that question there?.


Aaron: [00:10:26] Youanswered the second part absolutely. So then I guess we go back to the firstpart which was a good preface from the 401k is how can they prepare forretirement?


Bennie: [00:10:35] Well,you can actually prepare for retirement such as a tax-free retirement account.Now what a tax-free retirement account is because you put your money into likea savings bucket. You know, just like a holding bucket. A savings bucket.However, we use the S&P 500 as a bench tool. So whatever the market does,we'll go ahead and credit this bucket. Now however, this bucket has a floorwhich is zero percent. You know, you can credit- you can actually put it intothis bucket such as a rollover. You've heard of rollovers. It's Fidelity andGuaranty. You've seen commercials and everything. 1035 exchanges. That's whatwe can actually do for you, or you would like to do a monthly deposit the sameway that you're actually going to a bank. And what happens is that every year,we look at your account and whatever that S&P 500 has done, we'll ahead andcredit your account. So let's say the count went up 10 percent. The S&P 500went up 10 percent, right? We'll credit your account 10 percent. All right. Sowe just look at it from a 12 month standpoint. We don't look at it every day.We call it the SWAN account. Sleep well at night. Now these accounts have beenavailable for over 26 years. The biggest deposit in tax-free retirement historywas right here in good ole Texas, and that's Ross Perot. Why? Because youactually dumped the money in there, and it grows tax free. Now why would I dothat? Grows tax free. Now if you know anything about a 401k and some people outthere may not know, that you may be sitting on a million dollars in your 401kright now, but let me tell you this, has it already been taxed?


Aaron: [00:12:08] Yes,sir. No.


Bennie: [00:12:10] No,it has not been taxed.


Aaron: [00:12:11] Yeah,afterwards.


Christian: [00:12:11] Ifwe take that money out.


Bennie: [00:12:13] Yeah,but you take that money out, it will be taxed, right?


Aaron: [00:12:16] Right.


Bennie: [00:12:16] Atone point in time in history, we were taxed at 92 percent. This is not back in1911, 1920s or 30s. This is in the 50s. All right. 92 percent. All right. Solet me ask you this, are the taxes going to drop or are they're going to get alittle bit higher?


Aaron: [00:12:32] Absolutelyhigher.


Bennie: [00:12:33] OKso let me ask you this, you got your 401k out there, in the next 15 to 20 yearscan you tell me what the tax rate is going to be then?


Aaron: [00:12:42] High.


Bennie: [00:12:43] Right.Yeah, that's right. So let's just say if you had a million dollars today and itwas 40 percent, you don't have a million dollars. You only have 60,000. Allright. So.


Aaron: [00:12:53] That'sthe difference in a house right there.


Bennie: [00:12:54] That'sa big difference, right? And this is why I'm advocating this because it's aboutthe education, but we can talk more about that, you know, further down theline. And the reason I'm saying that is because a tax-free retirement account,you do the same thing into a tax-free retirement account. That money grows taxfree. You've already paid the taxes on it already. All right? Because you can'tactually pay taxes on the same dollar more than once. You've already paid adollar. So what we believe in is taxing the seed and not the harvest. That'sright, Uncle Sam. Taxing the seed and not the harvest. So when you're growingthat million dollars and at the age of financial independence or retirement,for a lot of people they like to be financially independent, you get to putthat money out tax free. Makes sense.


Christian: [00:13:39] Awesome.I mean, the thing here is that, you know, Bennie has bombarded us with awesomeinformation, and obviously, we cannot cover every single thing here in thisepisode. But Bennie, how can people find out about you, your company, andeverything that you do?


Bennie: [00:13:57] Well,you can actually follow me on Facebook at Purpose Consulting. Instagram,Purpose Speaker or at Purpose Consulting. Twitter, @purposespeaker or@purposeconsulting, and Instagram, Purpose Speaker if you want to actually seea lot of-


Aaron: [00:14:14] Whatabout a website? You got a website?


Bennie: [00:14:16] Yeah,it's www.purposeconsulting.com.


Aaron: [00:14:18] Allright. And we know you guys are driving or doing something. So we'll link allthat stuff up in the show notes.


Bennie: [00:14:23] Thankyou. Thank you.


Christian: [00:14:24] Yes,we sure will, and you also have a lot of events coming up. Do you have anythingcoming up that you want to shout out to?


Bennie: [00:14:29] Yes.Yes. Thank you. We have a Blue Mesa Grill. Write this down. Blue Mesa Grill at6:30 p.m. at 8200 Dallas Parkway in Plano October 2nd. So if you're actually inthe metroplex area, please come on down. Free dinner on me. Just ask for BennieEvans, the safe money strategist, and I'll go ahead and pay for your dinner.And then we'll go from there, and we can help you out. And it's free. It's nota sell seminar. We're just here to educate you.


Christian: [00:14:56] Awesome.


Aaron: [00:14:57] Allright. And as always guys, go ahead and pull out your phones. Clicked thosethree little dots in the right hand corner. Share this episode with somebodywho needs some financial advise or your friends, whoever, and we will- well,you'll hear us next week.


Bennie: [00:15:13] Awesome.


Christian: [00:15:13] Seeya.

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