How Wealthy People Invest w/ Alan Franks
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Episode Description
Welcome to the Freedom Point Real Estate podcast! Jeremy Dyer is excited to welcome Alan Franks to today's episode on building long-term wealth, leveraging alternative investments, simplifying complex finances, and reducing taxes strategically.
Alan is a financial planner with a passion for helping people live their fullest lives through sound financial management. After graduating Cum Laude from Mercer University with dual degrees in Economics and Entrepreneurial Management, he was deeply impacted by the 2008 financial crisis. It motivated him to enter the financial planning industry in 2010 with Northwestern Mutual, earn his CFP designation, and eventually found his own firm, The Mill Financial Partners, in 2018. Alan and his wife live in Atlanta, GA, where they love giving people the tools to protect their wealth, increase their income, and enjoy the life they've worked hard to build. In his book "EmPowered Money," Alan shares the principles and strategies he has used to help clients build a financially secure and fulfilling life.
CONNECT WITH ALAN FRANKS!
Website: https://empowered-money.com/
LinkedIn: https://www.linkedin.com/in/alanfranks/
Phone: 706-202-6424
CONNECT WITH JEREMY DYER!
Website: https://startingpointcapital.com/
Instagram: https://www.instagram.com/startingpointcapital/
LinkedIn: https://www.linkedin.com/in/jeremydyer
Facebook: https://www.facebook.com/startingpointcapital
Book a Call! https://calendly.com/startingpointcapital/discuss-investing-with-jeremy-dyer?month=2023-12
Summary
Tip #1: Don’t Specialize Yourself Into a Corner
“The crypto bros are crypto bros. The real estate bros are real estate bros. They all see the world through one lens.”
Franks highlights a major financial blind spot: becoming so specialized in one asset class or strategy that you miss the big picture. He compares a good financial advisor to a maestro who brings harmony between your cash, retirement accounts, insurance, and investments to create synergistic wealth growth.
Tip #2: Your Financial Plan Needs Perspective, Not Just Performance
“You know what you know, but there’s a lot you don’t know.”
Franks emphasizes the importance of outside perspective. Working with thousands of clients across demographics has shown him that success comes from seeing what works—and what doesn’t—across the broader financial landscape.
Tip #3: Estate Planning Matters More Than You Think
“Unless you plan on dying in the next four years, we’re looking at a huge drop in the estate tax exemption.”
He warns that the current $15M estate tax exemption may soon be cut in half. This means many more families could face massive estate taxes without proper planning.
Tip #4: Income Tax Strategy: Where the Real Leverage Begins
“If you’re a business owner, you have a totally different playbook.”
Franks dives into tax-saving tactics for business owners like the Augusta Rule, cost segregation, and pension plans. Even W-2 employees have tools—like the mega backdoor Roth IRA and HSAs—that can significantly improve their tax situation.
Tip #5: The HSA: IRS Code’s Best-Kept Secret
“Why would I use the most tax-advantaged vehicle in the tax code for a dentist bill?”
Franks advocates for maxing out your Health Savings Account, investing the funds, and letting them grow long-term. It’s the only account with a triple tax advantage: deductible in, grows tax-deferred, comes out tax-free for health expenses.
Tip #6: Where to Start If You're Overwhelmed
“I want you focused on two things: driving revenue and being a family man.”
His process starts with a one-to-two-month intensive to build the foundation of your plan, followed by streamlined quarterly reviews. He positions himself as your "personal CFO" so you can focus on what matters most.
Tip #7: Financial Freedom Starts With Clarity
“When people see money as a tool, rather than an emotional thing, that’s when doors open.”
Franks helps clients reverse-engineer a plan from their own version of financial freedom. Removing the emotional weight from money enables people to explore advanced strategies like alternative investments confidently.
Tip #8: Three Layers of Diversification
“Most people think about diversification in terms of assets, but we start with taxes.”
Franks outlines tax diversification (pre-tax, Roth, taxable), asset manager diversification, and asset class diversification as the pillars of a robust wealth plan.
Tip #9: How Real Estate Fits in Smartly
“Do you need income or growth? Lending or ownership?”
Instead of a one-size-fits-all approach, Franks helps clients choose between passive income (like hard money lending) or ownership (with tax-deferred upside) depending on their life stage and cash flow needs.
Tip #10: Leverage: Not Just for the Wealthy
“I never invest directly in real estate with my cash—I invest in the market, then borrow against it.”
Franks explains how he uses a securities-backed line of credit to access capital for real estate, maximizing growth and maintaining liquidity. He encourages others to think the same way—using leverage smartly, not fearfully.
