Episode 76: Managing Personal Investments with David Banks - A Tech Professional's Journey

Ready to explore the latest in tech careers and financial insights? Click here now for an eye-opening journey at https://www.techequityandmoneynews.com/!

Host: Christopher Nelson

Guest: Davids Banks

In this episode of Tech Equity and Money Talk, David Banks shares insights from his career transitions, particularly focusing on moving from a successful tech sales career to becoming a money manager.

David had a 40 year career in software sales that saw him through three IPOs, Interwoven, VMware, and Splunk.

David built valuable skills in Tech Sales that allowed him to work in sales and sales management roles in companies like VMware and Splunk.

After Splunk, David continued building his financial company, Addison Financial LLC which is the vehicle for managing their real estate investments and hard money lending portfolio.

Connect with David Banks

https://www.addisonfin.com/

https://www.linkedin.com/in/davidlbanks/

In this episode, we talk about:

• Establishing a Business Mindset - David Banks emphasizes the importance of treating investments as a business. By forming an LLC, he and his wife were able to separate their personal finances from their investment activities. This separation not only provides legal protection but also creates a clear framework for managing their investments. It allows them to pay themselves from the business, track expenses, and maintain a professional approach to their financial activities.
• Regular Performance Reviews - David mentions that he and his wife conduct monthly reviews of their investment performance. This regular assessment helps them stay informed about how their investments are performing and allows them to make necessary adjustments. By tracking metrics such as cash flow and the health of their investments, they can identify trends, successes, and areas needing improvement. This discipline ensures that they remain proactive rather than reactive in their investment strategy.
• Financial Audits and Goal Setting - Before David left his job at Splunk, he undertook a financial audit of their expenses. This process involved analyzing their spending habits and identifying areas where they could cut back. By understanding their financial landscape, they could better prepare for the transition to a lifestyle without a regular paycheck. This kind of financial audit is crucial for anyone looking to manage their investments effectively, as it helps in setting realistic goals and understanding the cash flow needed to sustain their lifestyle.
• Intentionality in Financial Decisions - By treating their portfolio like a business, David and his wife have cultivated a more intentional approach to their finances. They set clear goals and develop plans to achieve them, which is akin to a business strategy. This intentionality helps them avoid emotional decision-making that can often lead to poor financial choices. Instead, they focus on data-driven insights and strategic planning, which ultimately leads to better financial outcomes.
• Networking and Continuous Learning - David highlights the importance of networking and continual learning in managing investments. By engaging with other investors and industry professionals, they gain valuable insights that inform their investment decisions. This collaborative approach mirrors business practices where networking and knowledge sharing are vital for success. It also reinforces the idea that managing a portfolio is not a solitary endeavor but rather a community-driven process.

Episode Timeline:

• [00:01:20] Transitioning to money management.
• [00:05:00] Cash flow investment strategies.
• [00:10:10] Cash flow investment strategies.
• [00:12:07] Running your portfolio as a business.
• [00:17:12] Transitioning to full-time investing.
• [00:20:18] Private equity education and networking.
• [00:25:44] Financial audit for lifestyle changes.
• [00:28:15] Tech business cycles and resilience.

Episode 75: A Unlocking Skills for Tech Equity: How David Banks Leveraged 3 IPOs

Ready to explore the latest in tech careers and financial insights? Click here now for an eye-opening journey at https://www.techequityandmoneynews.com/!

Host: Christopher Nelson

Guest: Davids Banks

In this episode of Tech Equity and Money Talk, host Christopher welcomes David Banks, a seasoned sales executive with over 40 years of experience in technology companies like Interwoven, VMware, and Splunk.

David had a 40 year career in software sales that saw him through three IPOs, Interwoven, VMware, and Splunk.

David built valuable skills in Tech Sales that allowed him to work in sales and sales management roles in companies like VMware and Splunk.

After Splunk David continued building his financial company, Addison Financial LLC which is the vehicle for managing their real estate investments and hard money lending portfolio.

Connect with David Banks

https://www.addisonfin.com/

https://www.linkedin.com/in/davidlbanks/

In this episode, we talk about:

• The Importance of Networking: David emphasizes that networking is not just beneficial but crucial for anyone looking to advance their career. He states, "Network, network, network," underscoring the idea that building relationships within and outside one's profession can open doors to new opportunities. This is particularly true in the tech industry, where many positions and companies may not be widely known or accessible through traditional job search methods.
• Gaining Insight into Private Companies: One of the challenges of working with private companies is the lack of publicly available financial information. Unlike public firms, private companies do not have stock prices or detailed financial reports that potential employees can analyze. This is where networking becomes invaluable. David shares his experience of leveraging his network to gain insights into companies he was interested in, stating, "What I did was find somebody that I knew within the company, through LinkedIn, through my network."
• Validating Company Potential: Networking also allows candidates to validate the potential of a company before committing to a position. David recounts how he spoke with a sales director at Splunk, who had previously worked at VMware. This conversation provided him with valuable insights into Splunk's technology and market position, confirming that it was a company worth joining. He notes, "He was able to confirm a lot of those things and then put me in touch with other people inside of the company."
• Building Relationships for Future Opportunities: Networking is not just about immediate job opportunities; it also lays the groundwork for future career advancements. By establishing relationships with industry professionals, individuals can create a support system that may lead to mentorship, referrals, and insider knowledge about upcoming job openings. David's success in his career can be attributed, in part, to the relationships he built throughout his journey, which helped him transition from one successful company to another.

Episode Timeline:

• [00:01:33] Equity compensation and personal wealth.
• [00:05:06] Rapid IPO and equity experience.
• [00:08:36] Financial market volatility and decisions.
• [00:15:39] History rhymes in investing.
• [00:18:31] Trading skills for equity opportunities.
• [00:21:09] Virtualization technology opportunities.
• [00:27:01] Stock options and company success.
• [00:30:16] Risk of concentrated stock investment.
• [00:34:11] Startup decision-making mistakes.
• [00:37:16] Evaluating Pre-IPO Companies.
• [00:41:16] Sales leadership evaluation criteria.
• [00:48:01] Retirement and investment transitions.
• [00:49:36] Managing yourself as an asset.
• [00:53:19] Differentiating skills in AI.

Episode 74: My Framework on How to Build Wealth with Tech Equity From Equity to Exit

Ready to explore the latest in tech careers and financial insights? Click here now for an eye-opening journey at https://www.techequityandmoneynews.com/!

Ever had a startup fail on you?

Yeah, Christopher Nelson's been there.

In this episode of Tech Equity and Money Talk, Christopher opens up about the wild ride after his own 2010 startup flop and how it pushed him to crack the code on tech equity.

He’s dropping serious gems on how to escape the corporate grind and build a life that’s actually fulfilling.

Get ready to dive into his 'From Equity to Exit' framework, designed to help you turn your tech equity into real wealth.

If you’re feeling stuck in the hustle, Christopher has the strategies to help you take control of your financial future. Don’t miss this one!

Connect with Christopher

https://www.linkedin.com/in/christophercnelson/

Highlights:

• Expertise: This is where it all begins. Developing your skills to a level where you can trade them for high-value equity is crucial. Whether you're in marketing, engineering, or any other field, your expertise is your most valuable asset.
• Equity: Understanding and maximizing equity compensation is key to building wealth. I discuss strategies for identifying valuable equity, emphasizing that liquid, appreciating, and tradable equity is often found in public companies.
• Evergreen Portfolio: This involves building a diversified portfolio that generates ongoing income without depleting the principal. I stress the importance of shifting from making money to managing money and diversifying into private equity.
• Exit Plan: This ties everything together, helping you plan your financial future with clear goals and timelines. Your exit plan should be a living document, adaptable to life's changes, and focused on achieving financial independence.

Episode Timeline:

• [00:01:03] Building wealth through tech equity.
• [00:04:23] Equity to exit framework.
• [00:07:41] Expertise and equity for wealth.
• [00:10:34] Valuable equity in public companies.
• [00:15:50] Evergreen portfolio management strategies.
• [00:19:00] The importance of financial independence.
• [00:21:37] Lifestyle changes through geographic moves.
• [00:25:08] Unlocking financial freedom principles.