Planning Your Exit: Lessons from Someone that Got Out!

Hey there, equity earners!

Ever feel like you're playing a high-stakes game of Monopoly with your career, but someone forgot to include the rulebook?

Well, buckle up, because we're about to demystify one of the trickiest moves in the game: the exit strategy.

Picture this: You've climbed the corporate ladder, you're sitting pretty with a portfolio full of equity, and suddenly you realize - What's next?

How do you turn those digital stock certificates into your financial freedom business?

Don't worry—I've been there, too. In fact, I'd bet my favorite ergonomic office chair that most equity-compensated folks have stared at a blank 'Exit Plan' document, wondering where to even begin.

But here's the game-changer: learning from those who've already crossed the finish line.

Ready to peek behind the curtain and see how David Banks broke out? Let's dive in!

Case Study: David Banks' Exit Plan from Tech

David Banks masterfully crafted a transition from Tech Sales Executive going through 3 x IPOs to becoming his Portfolio's CEO.  

Here is the first part of his journey through three IPOs (LINK)

This wasn't an overnight success story, but rather a journey that required a clear vision, time, and patience.

Let's break down the 7 steps that David took to exit:

David Banks' Exit Framework: From Money Maker to Money Manager

1. Early Planning

• Started considering transition around 2012, 10 years before leaving Splunk

• Recognized software sales as a "younger person's game"

• Created a vision for what his life could be after full-time tech

2. Initial Steps

• Began by learning different types of investing outside the stock market, focusing on income

• Leveraged existing network for opportunities

• Focused on quick turnaround and simplified processes

3. Risk Profile Adjustment

• Shifted from high-risk pre-IPO equity to more conservative cash flow investments

• Conducted due diligence on investments with track records and public information

• Diversified across multiple asset classes

• Invested in multifamily properties, mobile home parks, and other hard money lenders

4. Lifestyle Adjustment

• Conducted a financial audit 12 months before leaving Splunk

• Reduced expenses to align with new income structure

• Planned for covering benefits previously provided by employment

5. Built Portfolio as a Business

• Created Addison Financial LLC to manage investments

• Treated portfolio as a business for tax advantages and liability protection

• Implemented regular financial reviews and goal-setting

6. Continuous Learning

• Took classes on specific asset classes (e.g., mobile home parks, multifamily apartments)

• Joined investor forums for idea sharing and learning

• Networked with operators and general partners

• Pro tip: David found the "Mobile Home University" course particularly helpful for understanding this niche market (one of his favorites)

7. Ongoing Management

•   Dedicates 25-30 hours per week to investment activities

•   Regularly reviews investment performance and market conditions

•   Maintains flexibility to adjust strategy based on economic cycles

While not easy, David made it happen.

By talking to and studying people like him, I was able to do the same thing in 12 years. This is not to boast but to let you know you can do it too!

Key Takeaways

1. Start planning early - the sooner, the better

2. Diversify your investments beyond the tech bubble

3. Treat your portfolio like a business

4. Never stop learning and networking

5. Be prepared to adjust your lifestyle and risk profile

Where Are You on Your Equity-to-Exit Journey?

Now that you've seen David's roadmap, you might wonder, "Where do I stand on my journey?"

Well, we've got you covered!

It takes just a second, and it will help me help you.

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Your journey from equity to exit starts now - let's make it count!

Questions? 

Hit reply. We're always here to help you navigate the exciting world of equity management and exit planning.

What are your takeaways?

How does David's journey inspire your exit strategy?

Tech Equity & Money Talk is a Weekly Podcast that explores the process of building wealth through Tech Equity and managing the money that comes with it.

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076 🎙️ Managing Personal Investments with David Banks - A Tech Professional's Journey

Ever wonder how tech executives transition from high-powered careers to successful investors?

In this episode of Tech Equity and Money Talk, host Christopher Nelson sits down with David Banks, a veteran of three IPOs including Splunk and VMware.

David shares his journey from tech sales to full-time money management, offering invaluable insights on hard money lending, cash flow investing, and running your portfolio as a business.

Learn how David leveraged his tech experience, embraced continuous learning, and adjusted his risk profile to build a thriving investment career.

Whether you're a tech professional planning your future or an aspiring investor, this episode is packed with practical advice and inspiration.

Tune in to discover how to transform your tech equity into lasting financial freedom!

When you are ready, there are 3 Ways I can Help You:

1.) Start up-leveling your knowledge - 🎧️ Follow our Podcast

2.) Get our detailed How To Videos- 📺️ Subscribe to our Channel

2.) Accelerate your actions, work with me 🧠 Book a 1:1 coaching session

Disclaimer: This newsletter is for informational purposes only and does not constitute financial or career advice. Always consult with qualified professionals before making any decisions based on the information provided.