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057: Helping Ordinary People Achieve Extraordinary Financial Results (w/ Todd Tresidder)

Todd Tresidder is a successful entrepreneur who has built many businesses and actually retired at age 35 from his position as a hedge fund investment manager responsible for over $20 Million dollars. He is now a financial coach and educator at financialmentor.com where he offers coaching, a blog and ebooks on how to build wealth and invest smarter.  

He is the author of five financial planning books including “How Much Money Do I Need To Retire?,” “Don’t Hire A Financial Coach,” and “Variable Annuity Pros and Cons.” 

 

Period in full-time business 

He says he has been in business his whole life. He only worked as an employee for 6 months and then got fired. When in college, he was the associate students’ business manager at the University of California which involved running the student run businesses on campus. He had been an entrepreneur since childhood starting out with paper routes and working his way up. He also had a boating business, taught sailing and had a pool supply company when in college. He says he is unemployable. He worked for HP straight out of college but was fired after 6 months. 

He had made them millions by cleaning up their service contracts but got fired because his great performance made the boss look bad. 

Core revenue streams 

Currently, his revenues come from www.financialmentor.com. He sold the coaching business about 3 years ago. The coaching generated good revenue but he never wanted to become a thousand dollar an hour coach which is how people make money in coaching. He knows he could have done it but he didn’t enjoy it anymore after a while because it started becoming like a job. 

He is in the process of converting the business into the seven steps to seven figures courses. He began the coaching business because he used to ask himself how he could help ordinary people achieve extraordinary financial results. From coaching people, he learnt that acquiring wealth involves 7 processes that people go through and he finally got it down to a system that worked for clients. He then had to figure out how to formalize it into a structure that worked for everybody regardless of their class. It took some time for him to figure it out but he eventually broke it down into a 7 step process and he is now turning all that into product form so that he can be able to scale it in the long term. 

Retiring at 35 

He says it was planned. He worked his way through college and came out with debt. He used to work all summer while other students went on holiday. He didn’t want to struggle in life and was determined to have financial independence so he figured out how to do it and mapped a path with the hedge fund business being a big part of it.  

He figured that since he had to learn how to compound wealth then he might as well get paid to learn how to do it. Hedge funds were the only way for him to achieve that so he went to work for a hedge fund where he was responsible for developing statistical and mathematical trading systems. 

Tip: You have to have a plan that‘s built around your interests, skills, resources and abilities because otherwise it won’t work: This is step 3 of the seven steps to seven figures 

A hedge fund 

Todd says that the difference of a hedge fund from a mutual fund is that it’s skill based (the return is a function of skill) but with a mutual fund, the return is the function of what the market gives. If the market is up, most mutual funds are up and vice versa. A hedge fund has skill based strategies and therefore they can make money under any market condition. 

The 12 years to success 

At the hedge fund, Todd started working in the marketing department and all he had to do was attract company presidents and vice presidents into what they called medium size return plans. They had a strategy for soliciting them and started building the business. One day as he was looking at the accounting, he realised that it was wrong and his boss asked him to fix it which he did a few weeks later. He later started developing statistical and mathematical trading systems. His boss then started trading side by side with him and Todd out-traded him. Working together made the business very successful. Eventually, he was made partner and he later made a successful exit. 

The Exit 

After leaving the hedge fund, he tried doing business but it was not fun anymore after a while so he sold the business. 

Tip: When you are creatively producing in alignment with your values, fulfilment tends to follow. It doesn’t mean you have to make money 

Coaching people how to enjoy building towards their plan 

Todd says there is going toward goals Vs. going away from goals. Most people want to achieve financial freedom because they are trying to get away from something and those are the people who never get fulfilled once they achieve that financial freedom. If Todd sees that in a person he is coaching, he teaches them to go toward goals because it’s much more fulfilling and driving.  

The other thing, he says, is to have a next step once one has achieved the goal they had already planned. That helps to avoid having a vacuum in life after they have achieved their goal. It helps people to keep working so they can have a community, social connection, and sense of purpose. It also gives people a clear definition of their daily life but once they achieve financial freedom all that can be lost. 

Tip: The pursuit for financial freedom becomes an interesting excuse for all the reasons why you are unhappy. Once you have achieved that financial freedom, you are stripped of all those excuses and suddenly happiness is your responsibility. For most people that responsibility is a burden 

Tip 2: In “going toward goal”, one of the keys is to have a clear next step that you are excited about  

Seven steps to seven figures 

Todd says they are paired in terms of personal and financial steps one can take. The first one is the foundation which is step one and two (personal foundation and financial foundation). In financial foundation it’s all about the basic financial planning one can get for free on the internet like how to spend less than one earns, planning to get a home, and others. Personal foundation is about the habitudes that result in wealth. Habitudes are an amalgamation of habits and attitudes as they work together since one drives the other and vice versa.  

He used to accept get-out-of-debt client engagements but he doesn’t anymore, while coaching some clients on how to build wealth and others on how to get out of debt, he discovered that they were diametrically opposite clients because their habits and attitudes were opposite to each other, so that’s where Todd’s Habitudes of the Wealthy came in and he just formalized it into a course. One of the key habits that people need to take up is “self-responsibility”. People who are in debt always blame it on someone or something else but people who are self-responsible will look at where they made a mistake and work towards correcting it. 

Step 3 is about how to design one’s life so that financial independence is the result. It matches up the characteristics of the 3 asset classes people build wealth with which are paper assets (traditional stocks, bonds, mutual funds, and others), business entrepreneurship and direct ownership of real estate, with the resources, interests and skills that someone brings to the equation then integrates it all into a plan and engineers it with maths and calculations in order to correctly work out what they are doing, when and how. It formalises all that so that a person moves there very efficiently. This is the starting point that Todd has with every coaching client. 

Step 4 is about implementing the wealth plan by taking a lot of action. Todd’s course has several modules that teach very specific steps about how to overcome personal obstacles, how to structure life to create massive action and how to produce great results. 

Step 5 is about expectancy investing, this is the course people demand the most from him. It stems from his hedge fund days. Step 6 is about investment strategies that are relevant which involves reworking your investment plans to convert them into income so that you can enjoy the rest of your life. Step 7 is the personal side of step 6 which is about what to do after you have achieved millionaire status. Todd plans to turn step 7 into a membership site instead of a course. 

Tip 1: If you want to achieve goals and grow then self-responsibility is the only productive place to come from because it’s the only place where learning comes from. Learning is how you compound and grow your internal beingness just like you grow your wealth because one is a mere reflection of the other. 

Tip 2: A plan without action is worthless 

Tip 3: Financial freedom is passive cash flow (cash flow from businesses that don’t require your time) exceeding expenses 

Success story 

Todd had a client that just left him because they had accomplished their goals. The client went to Todd because he had a large net worth but no cash flow and had a high paying job but no freedom. Within 2 years, Todd taught him the expectancy investing principles, he liquidated certain real estate holdings and replaced them with other real estate holdings then reallocated their portfolio and is now traveling the world for 2 years. 

Todd had another client who came to him and has been with him for several years. She has accomplished all the goals she was working towards, she wanted to be married and is now married. She wants financial freedom and is very close to achieving it because her income has multiplied dramatically. 

Achieving financial freedom while in a normal job 

For people in a normal job, Todd applies his Advance Planning Framework which involves business entrepreneurship and direct ownership of real estate. It works a lot for people who are struggling, having difficulty saving, and the traditional planning isn’t working for them. 

Todd built wealth from a combination of paper assets. He made a lot of money from his career in his youth but he was not a big spender. He has always had the philosophy that happiness comes from experiences not stuff. He used to keep his spending down to a college lifestyle but he raised his income up dramatically and so ended up saving 70%+ of his income which he then rolled over the paper assets category and had his hedge fund strategies to multiply them. Even today, he is not a big spender but he has a nice house, nice cars and wears decent clothes. 

His Books 

He has 5 books and his best is How Much Money Do I need to Retire. It’s a great read for anybody who cares about financial freedom. The book generates a fairly good passive income for him. 

Faith, Fun, Family, Friendships and Finance 

Faith comes first and it’s important to all the other areas, then Family and friendships, Fun and Finances. 

Book recommendation for entrepreneurs:   

  1. Essentialism: The Disciplined Pursuit of Less – Greg McKeown 

Legacy: 
To be remembered as a good guy who made a serious contribution, really went for it and lived the adventure fully – Todd.   

Best way to connect: 
www.financialmentor.com – Todd’s Business website (His Step 3 Wealth Planning Course is available. He gives away a free book and a free course to people who become subscribers)
 

Get Your Hopes Up and Maximize Your Dreams [Symbol] 

Cheers,
Davis!

About the author, Davis

My Dream of sharing inspirational success stories started many years ago and this Podcast is an amazing show that brings some of those conversations to light.

This show is dedicated to being a voice of encouragement to you because I believe God created you and I with a purpose to fulfill and I want to be here to cheer you on through this Podcast, our Blog and through our other channels of interaction via our comments section after each Podcast and Blog as well as on social media.

I love business and entrepreneurship and I truly believe you have greatness inside of you 🙂