Ep15 The $10 Million Reality Check: Why You're Hosed If You Don't Change Your Money Game NOW

Joe Blackburn  0:00  
What I want people to start to understand is awaken yourself to the fact that most likely you're gonna live a lot longer than you anticipate, and most likely the price of living is not going down. So if I have to do it for a lot longer at a lot higher price, what would that predicate me to start making decisions around to stay where I'm at, to keep doing what my parents did, to think that I'm going to walk away from something at 65 years old.

Jason Croft  0:24  
Welcome to the lion's edge, where top performers sharpen their teeth, hosted by Joe Blackburn, founder of The Lion, who is relentlessly dedicated to helping business owners lead multi million dollar teams and me. Jason Croft, I transform unseen entrepreneurs into industry leaders by developing their market gravity. Each week, we reveal proven strategies and raw insights to help you maximize your business, multiply your wealth and make your family indestructible. Now let's create your edge. There is, there's this, there's this piece of, as you call it, self deception going on when we're trying to calculate, what do we really need, how much do we really need, and for how long?

Joe Blackburn  1:14  
Right? I look at it this way. My grandma's 97 and she went through the Depression and her hearing isn't great, and sometimes her memory, but physically, she's real active at 97 like she can do almost anything, you know, within walking, playing with great grandkids, doing all those things. So we have this picture in our mind of what old looks like. And I'm I look at myself and I'm like, I don't feel old other than nagging, stupid things I did as a kid that now come back. But I think people still see the arc as, okay, I'm gonna hit 6570, retire, and then live another 10 or 15 years, and if I just keep doing what I'm doing, that's gonna work. And if, if you had to tack on another 30 to that, if I make it to 70 and I'm healthy, my odds of going through 100 are through the roof. Well, and that's based on the boomers and that other generation. Well, for us people, you know, one of the things they say about why we look younger than these other generations at the same age, like, if you go, you know, they do that on the internet, where a 50 year old today versus a 50 year old of your parents and a 50 year old of your grandparents, it's because of not smoking sun lotion, like, all these little things that are like, you know, before is like, Oh, I'm just gonna put like, Tropicana on and get a tan instead of like, SPF. And smoking is actually bad for you, and maybe you should pay attention to your diet and exercise and all these little things. So projecting out my, you know, unless I get hit by a bus or taken out, which is probable. But if I go, if I'm 50 and I go to 130 that's 80 years, 80. So how, when I talk to some of these, and again, I always come off like, I'm like, Are you this dumb? It's not what I'm saying. It's like, can you conceptualize the length of time and the amount of money it's gonna take? And I just, I don't think people wrap their minds around it, and in the plan, you know, I came out of planning, and we've got a lot of clients that do planning, even in the planning world, they're saying 95 like to 95 but the actuaries that calculate like the risk of someone dying for insurance and things like that, their tables are going out to 130 135 so where are they gonna Be 15 years from now. So when I talk to someone about their wealth or their dreams or whatever it is, the what they visualize is probably their mom and dad retiring. Yeah, it's that

Jason Croft  4:15  
reference point that we all have, and we've had for you, know, you and I for the last 50 years, right? Like that's just ingrained and just like anything else and goals that we're going after, if you don't actually sit down on paper, what does this look like? What does this take? Oh, crap. You know, in your mind, the world has this vague Oh, if I can just get a million bucks, I'll be set for retirement at 65 that'd be everything that's that's gonna run out fast when you're talking 110 130

Joe Blackburn  4:50  
I don't wanna bring shame to your mind that you're doing this because you're an idiot, or you're not smart enough, or you're not courageous enough, or what I. To Be careful there. It's just like an, I want them, like, having, like, an awakening of like, this is for real. Like, look, just look back and thinking that if I'm making 250 $500,000 now, and they're probably not safe. I mean, and I'm not a big savings person, unless you're in in a company, but entrepreneurs, wise, like you, you have to understand the leverage that it's going to take to sustain the income you're taking now. It just, it's, it's, so it's an underestimation of time and money based on current reference point. And I'm telling, I am telling you again, we we talked that silver tsunami. This is that, this is like that window, and you see where you see it most is the exit planning, because that's, there's a lot that goes into that in coordination with, you know, all the different strategic alliances, and the valuation the company, all those details where it's not really being talked about is, how do I get one of those? How do I grow mine? How, you know, and part of it, especially in the, you know, under the M and A, you know, line where you're not doing six months of due diligence. Hell, we had a deal we were looking at yesterday with a client. They want to get it done in 60 days, like a house closing. So it's, it's not as sophisticated, it's not as exact. The frame of reference is lower. So it's like a weird, uncharted territory of that tail end of boomers giving the opportunity to absorb or acquire. Because those you could do, you could absorb it, they don't have a choice, or I can acquire it and compensate them, maybe a combination of both. But if I wait, let's just say I wait 10 years. That is gonna play itself out, and then it's gonna be in the hands of young, healthy specimens like me. And if I live to be 130 as I I'm gonna put that in my affirmations. I'm gonna make it to 130 I am 130 30. I am 130 but nice. Well, then, then it's now what, and you had, I saw this this morning on, like, white collar panic or something. Well, also you're gonna have all these people that may or may not have jobs. It's like a weird, this is weird time. I know it's aI driven and technology driven, but it's also driven by the age, the age of, you know, and by the way, there aren't as many of us as there are boomers or millennials. We're sandwiched like Gen X, but we're further ahead than most and financially ahead, and a hell of a lot smarter and better looking. So if you're in that, let's call it 45 and that's probably early, or, yeah, early millennial to 55 or even going back to 35 to 55 this is this, is it? It doesn't mean other businesses aren't going to sell, but it's going to be different in the fact that, like I talked about, the absorption and the acquisition window right now is is huge, and there's tons of resources out there on how to sell your business and make an exit. So they're being encouraged, and there's support, and there's coaching and M and A advisors and brokers, and so they're trying to get them to market as well. I just think that if you're serious about sustaining and enjoying the longevity that's in front of you, you're gonna have to do something different than your parents did. That's, I know I have gone on about this for about 30 minutes before we hit record.

Jason Croft  8:58  
There's there's another piece to it, and I'll do it on your behalf, and I promise we're not. This isn't just so join the line. Oh, but well, you should do that. There is exactly, oh, I put that in subliminally every frame anyway. It's fine. But there is a piece too, because this just came up for you in the group, like, go having a support network enough to not only spot and think about these things, but then run it by a group of peers and things like that. Because that just came up, yeah, Illinois too, that he, you know, someone was about to write that check and like, oh, hang on, look out for this, this and this, and that's, that's another piece of this. Go after them, but you'll get that that, I guess. Make it an informed decision more than just yourself.

Joe Blackburn  9:56  
I don't want to tamp down the ambition of doing it. Just make. Sure you do it in a way that doesn't, you know, take Well, speaking of longevity risk, there's another side of that coin. If the value is trapped in a Boomer's head, which I don't know if you've met any, but most of them aren't like doing SOPs and all that bullshit. They're they know what they're doing, and they just do it. Well, people get hit by busses, so before you strike a check, and it's all in their head, and it's skill based, like, it's not like me trying to, you know, put together a office chair, which I did Sunday, and that was scary, and didn't go well. So if it's like skill based, then you have that risk of, like, what you know something, we know this, something can happen any day. So it's that. That's the, I mean, just big word, the dichotomy of something happened immediately and the longevity. Why have to protect against this? And that's hard to I mean, how do you value it? So what I want people to start to understand is the first thing is, you know, awaken yourself to the fact that most likely, most likely, you're gonna live a lot longer than you anticipate, and most likely I am. I mean, just based on what I've seen, price of living is not going down. Let's just call it the price of living. The price of living is not going down. So if I have to do it for a lot longer at a lot higher price, what would that predicate me to start making decisions around to stay where I'm at, to keep doing what my parents did, to think that I'm gonna walk away from something that's 65 years old. I mean, shit, there's 65 year olds out there that look like they're 40 that haven't had drastic cosmetic changes. We just so I wanna, I wanna send the message and help people. You know, it's like, oper, you don't wanna be like a vulturistic opportunist. Because in that conversation we had, the person that was thinking about buying it has a good heart, and they're like, Well, I want, you know, that guy worked his balls off for 4050, years. I want him to get something, you know, I don't, I don't want to just execute him. And I get, you know, there's two schools of thought. And you know, business is war, and I gotta kill everybody. Great. Well, I actually admired that. I'm like, You know what? That's that's a good sentiment. Like everyone does. You know, someone doesn't have to, like, get throttled for you to win. So how do I do that? I call it the bridge. How do you make that transition as smooth as possible on both sides to get to where, you know, there's a lot of people that need what they do so you can have a human aspect of it. It's just the realization of, I have to do something different, like and no one's really talking about that. It's, it's not easy to execute either, because the frame of reference on a $4 million business is what? Is there a market for that? Is there a playbook for that? Kinda but I don't wanna let it slip through my hands, and then I'm standing here 10 years later, and now I'm forced to you know, buy something, I'd assume at a huge premium if it's in the market, but it's not. I don't even see them change like hell. Why if 55 if you're 45 at 55 Why would someone, if they're they have the same paradigm they got to live a long time. They want to transfer to their kids. So I I get into my diatribe mode. I just want, I think people need to really think about what this next. I call it five years. And I, dude, I'm not a statistician, but you just numbers. You know the numbers aren't lying. There is a huge opportunity. And if you're like, I'm just gonna do my thing. I think you're gonna miss this one. You know, it's kind of like Bitcoin 20 years ago, because I hear that on the internet now, you should have bought Bitcoin in 2013 Are you fucking kidding me? If I was in financial services in 2013 coming out of the financial crisis? Like someone tell me even what Bitcoin is. I mean, I guess I'm a boomer now. But my point is that, you know, the supply and demand of that, yeah, that's probably going to happen. And you're seeing the gurus and online people say, Buy Bitcoin. Buy Bitcoin. Buy Bitcoin. You know, I the only thing, and I could, I hope I'm wrong, because I know a lot of people have, well, I think I've ever seen on like, that game of chance is people get wrapped up into something they don't understand. Can't get their money out, the government regulates it, and now they're stuck holding a bag. I hope that's not the case. Hell, I may buy the ETF or whatever. I don't know, but I'd make the bet if I was making the bet now, if I had capital and time. Time and energy, I'd make the bet on me and my ability to grow and lead and make good decisions for longevity, because it could be a portion of what you're doing, but it's not the end all be all like anytime everybody's chirping about something, my experience has been this ain't the right time. So maybe you can say that about what I'm saying on the silver tsunami, but I will tell you the number of age, meaning this many people with this much business at this age, their sustainability is going this way. So if I was going to make the bet, because I could put it either place, I'd bet on this thing and take my chances and put my money where, you know, my ability to earn is my greatest asset. That's me. I'd bet on me, and I see people wanting to shuck it and say, I'm gonna do this, stay what I'm doing, and save and I think that's a recipe for disaster. And maybe I'm wrong. I don't know.

Jason Croft  16:04  
I just, I think it's, I think it's that mental piece too. It's a weird dichotomy.

Joe Blackburn  16:10  
Again, new work. Gary, that's

Jason Croft  16:13  
right. That's right. I get a new shirt there where there is this feeling coming through of, Wow, we are going to live maybe another 40 years than we thought, and that instant you can take that as, Oh, good. So I got time. Wow. No, that's a good point, bro. This is you're gonna live another 40 years, so holy shit, you better get in gear.

Joe Blackburn  16:48  
That's how I'm seeing it. If I were looking at it from the aspect of less people that can actually work in society, with the AI thing going on, and I still have to sustain my lifestyle based on what it is today. That's where I would go. I would accumulate and grow where I'm great. And so this kind of applies to the entrepreneur or the business owner, whatever. I don't know. I mean, someone got some medical with me the other day about entrepreneurs and versus calling them a business owner, and it's like, who's taking the risk? Let's just, can we just make it? Who's taking the risk? Who's making the payroll happen, whether they have the money or not, that person's it. That's tag. You're it. If I have to make payroll, regardless of what's in the checkbook, I'm it. So that's where I would see you can multiply the best and the fastest and always put the money in the greatest asset, which is your ability to earn first. Doesn't mean if I have excess capital, I don't do other things. But if I can old gusher principle, if I can just keep making this thing bigger. That's where capital goes first. Then I allocate. And if I keep doing that, and let's say you did wanna retire at 75 from 55 or from 4530 years from now, exponentially. But Don't miss this little window right now where some of these old boys are just done, you know? And like my good friend Ben said, Well, I want him to get something. I don't think that's terrible. Happy Tuesday.

Jason Croft  18:36  
Happy Tuesday, you're gonna live another 40 years better get to work at

Joe Blackburn  18:40  
least. All right, awesome.

Jason Croft  18:43  
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Speaker 1  19:20  
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