Are You Building Wealth for the Long Haul?

It has been quite a trip (pun intended) to watch the growth of the cannabis industry in NYS and beyond. The cannabis industry in New York has been growing at a dizzying pace, providing a unique, lucrative opportunity for those ready to jump into that business. It’s been quite a journey—from a single dispensary hours away to a dispensary in nearly every neighborhood. And while the market may not be saturated yet, we can expect that as the industry matures, the “easy money” phase will slow. In the end, only those businesses that evolve to continually deliver value will stand the test of time. 

For cannabis entrepreneurs, now is the time to consider not only today’s profit but also your financial future. As advisors, we see how a solid, proactive plan for life beyond the cannabis business, or any business for that matter, can make all the difference in securing lasting wealth. 

Two Types of Business Owners—Where Do You Stand? 

In our experience, we see two distinct types of business owners who achieve financial success but approach wealth-building differently: 

1. Lifestyle-Driven Owners: These owners have a profitable business that fuels a great lifestyle, supporting day-to-day expenses, travel, and more. However, their focus remains largely on today, without significant investments set aside to support their future lifestyle. While these businesses may cash flow beautifully, there’s often no long-term wealth-building strategy beyond their business.

2. Future-Focused Wealth Builders: This second type lives a similarly elevated lifestyle but takes extra steps to secure the future. In addition to enjoying current success, they leverage their business gains to acquire other assets—whether in real estate, investment portfolios, or retirement plans. This approach allows them to maintain financial independence even after they exit the business. 

Preparing for Life Beyond the Business 

Imagine a scenario where a 60-year-old business owner wants an asset that generates $300,000 annually to maintain their lifestyle in retirement. They would need a lump sum of approximately $7.5 million to comfortably achieve this goal. And if you’re a business owner at 40, planning for the next 20 years with a target annual growth rate of 8%, you’d need to invest about $164,000 per year to build that $7.5 million asset. 

This hypothetical example underscores how crucial it is to start planning now. Waiting until later can make building substantial wealth harder, especially in industries that are as volatile as cannabis. Setting aside funds regularly helps ensure you’re building a buffer for your post-business life. 

Leveraging Wealth Now for Tomorrow 

Business owners are no strangers to the power of leverage; you already know how to use outside capital—whether through bank loans, investor funds, or other forms of financing—to expand operations. But what’s often overlooked is how to apply that same principle to create a personal wealth strategy.

Building a future asset that continues to generate income post-business requires a strategic approach to leverage. If you’re in an extreme growth phase, diverting money outside the business might seem counterproductive, but understanding how to leverage wealth for your future will be invaluable. 

Whether you’re deeply invested in your business and need to optimize cash flow or are preparing for a long-term exit strategy, knowledge of wealth leverage is essential. This strategy ensures you’re not solely dependent on your business income and have a reliable income stream to support you after you step away from the industry. 

How We Can Help 

This is what we do every day at Thoroughbred Advisors. We specialize in educating business owners on leveraging their current success to create sustainable wealth for life beyond their business. Our approach is personalized, strategic, and results-driven. If you’re ready to secure your financial future, reach out to us for a consultation. Call us at 518-608-4608 to set up a time to discuss how we can help build a strategy that works for you—today and into the future. 

About Thoroughbred Advisors: Thoroughbred Advisors is a leading financial firm dedicated to providing tailored, transparent, and authentic financial solutions for their clients. Established in 2014, the firm focuses on empowering individuals, families, and businesses in the Capital Region to achieve lasting financial success. www.thoroughbredadvisors.com | 421 Troy Schenectady Rd, Latham NY 12110 

The information provided herein is for general informational purposes only and should not be considered investment advice. Any strategies described may not be suitable for everyone. Readers are encouraged to evaluate all information in light of their own situation, and seek the advice of an appropriate professional advisor. 

Registered Representatives and Investment Adviser Representatives offer securities and investment advisory services solely by Equity Services, Inc., Member FINRA/SIPC, 421 Troy Schenectady Rd, Latham NY 12110, 518-608-4608. Thoroughbred Advisors is independent of Equity Services, Inc. In CO, MO, NH and WI, Equity Services, Inc. operates as Vermont Equity Services, Inc. TC7358939(1124)1