Many people think wealth building is about a lucky break. Jeb, Ethan and Eric of Metcalf Money Moment the Podcast prove otherwise. In this episode, they unpack the financial habits that quietly separate millionaires from everyone else: early investing, tax diversification, estate planning, and treating money as a tool for freedom rather than status. Whether you earn six figures or are just starting, these strategies are not exclusive to the ultra-rich. They are disciplines anyone can adopt, starting today. Tune in for a conversation that could change how you think about money for good.

What you will learn in this Episode:

Why wealth-building habits like paying yourself first and early investing matter more than any lucky windfall, and how starting in your 20s, even with limited cash flow, creates dramatically different outcomes over decades.

How tax diversification strategies such as Roth conversions, after-tax savings accounts, and smart asset allocation help high earners avoid unnecessary tax burdens and build long-term financial freedom.

Why truly wealthy families maintain organized systems, surround themselves with a professional team including CPAs and attorneys, and regularly review their estate planning to protect and grow generational wealth.

Tune into the Metcalf Money Moment podcast for expert insights on wealth management and retirement planning! Join Jeb, Ethan, and Eric for practical Estate Planning strategies that you can implement to unlock financial clarity and confidence. Listen now to inspire your financial journey!

TIMESTAMPS:

00:00 Introduction to wealth-building habits and common careers of millionaires

04:21 The role of early investing, discipline, and long-term investing in building real financial freedom

06:01Tax diversification, Roth conversions, and saving outside your 401 (k) for smarter retirement planning

09:06 How wealthy families approach asset allocation, diversification, and avoiding get-rich-quick traps

13:14 Using money as a tool: experiences, philanthropy, estate planning, and generational wealth conversations and book recommendations

17:12 Final thoughts on building wealth

KEY TAKEAWAYS:

Wealth building is not about hitting a lucky investment. The wealthiest families Jeb, Ethan and Eric work with built their net worth through decades of consistent saving, long-term investing and disciplined financial planning, not windfalls or market timing.

Tax diversification is one of the most overlooked tools in wealth management. Balancing pre-tax, post-tax, and Roth accounts helps protect families from excessive tax burdens in retirement, especially when required minimum distributions come into play.

Wealthy families do not just accumulate money. They use it with purpose, funding experiences, practicing philanthropy, teaching their children about money, and building generational wealth through intentional giving and strong estate planning.

DISCLAIMER:

This information is not intended to be a substitute for specific individualized tax or legal advice. We recommend discussing your particular situation with a qualified tax or legal advisor.

RESOURCES MENTIONED:

Metcalf Partners - Website

Jeb Graham - LinkedIn

Ethan Hutchison - LinkedIn

Eric Wymore - LinkedIn

The Richest Man in Babylon - Book

Die With Zero - Book

The Millionaire Next Door - Book

Now your hosts.[00:00:30]

Ethan Hutcheson: Hanging

Ethan Hutcheson: Yep.

Graduations going on. [00:00:55] By the time people, uh, you know, actually listen to this, people will be [00:01:00] graduated, and we'll be well on the way to summer. So, um, so anyway, [00:01:05] today I think what we wanna talk about, and this is something that comes up a lot, uh, [00:01:10] with people, I think specifically as they're younger and, and growing money, and even people, uh, [00:01:15] when they start to retire, is, is, is studying kinda wealthy families, and what do wealthy [00:01:20] families, you know, throughout their lifetime do differently, uh, to [00:01:25] become wealthy than people that don't end up becoming wealthy.

So, um, so what do they do differently? And before we get [00:01:50] into the habits of people that become wealthy over time, I think it's important to define [00:01:55] what is wealthy, right? Because I think there's a lot of people that have a different, uh, interpretation of what [00:02:00] being wealthy means in America. But according to Yahoo Finance, today being in the top [00:02:05] 10% of wealthy households generally means that you have a net worth of [00:02:10] between 1.8 and $2 million.

Right [00:02:40] now, according to windfall.com, 30% to 32% of all [00:02:45] wealth in the United States is held by the top 1%, uh, of wealth holders in the [00:02:50] United States. So, um, you know, interestingly, like when we start talking about who [00:02:55] are these wealthy people, where do they come through from? What do they do for, for a profession?

Some of them are surprising, some of them are not surprising. You know, engineers, we have a [00:03:20] ton of engineer clients that are multimillionaires. Uh, but that was the first one that came up. Accountants and [00:03:25] CPAs, attorneys, management and business professionals, small business [00:03:30] owners, physicians. I think none of those are surprising.

And I think, uh, really what we wanna talk about today is that the bulk of these [00:03:55] people that have become wealthy, whether they're the top 1% or 10%, the vast majority of them did [00:04:00] not hit some huge investment that made them wealthy overnight. Uh, the vast majority of [00:04:05] them had discipline, long-term thinking, and intentional financial habits [00:04:10] over years and decades.

Ethan Hutcheson: Yeah. Th- thanks, Jeb. And one thing y- you said that really stood out to me is [00:04:25] not everyone who's wealthy hit a good investment, right?

So they're out there, but it... [00:04:50] Kind of coming back to, to talking about early planning and planning ahead, [00:04:55] you don't plan to hit that lottery ticket. You don't plan to get that Bitcoin investment or whatever it is. You, you plan to [00:05:00] not have those things pop up in your life. And so one very, very common thing [00:05:05] that we have seen is the wealthy folks that we deal with in their 50s, 60s, 70s [00:05:10] and 80s They started investing in their 20s, and they started [00:05:15] when they had free cash flow or when they didn't have free cash flow, when they had debt, when they didn't have debt.

Um, one year you might have a great year, you could max out your [00:05:40] 401that year. The next year you have your second or third kid, daycare's tight, y- you can't max it out that year. [00:05:45] So there's a lot of things and, and discipline along the way that these wealthy families [00:05:50] have learned, and it- it's, it's been a struggle.

Let's say they've got five to six million in an IRA, all pre-tax. [00:06:15] They live off $100,000 a year, fairly simple lifestyle that they live. When they [00:06:20] become RMD age, they're gonna have to pull out four to $500,000 of RMD. They don't need... They need [00:06:25] 100,000 of that. So they're literally pulling money out of their portfolio simply just to pay taxes [00:06:30] because that's the way the tax code's written.

Tax diversification is [00:06:55] huge. So not only just, you know, doing what you're supposed to do and saving into that 401, but branching [00:07:00] out and looking at asset location, tax diversification, Roth conversions, charitable giving [00:07:05] strategies. There's a lot of common themes that these wealthy families have, and they're, they're all kind of [00:07:10] thinking about, about the same thing over time.

When the ESOP comes out, when the dividends [00:07:30] hit, they are, they are buttoned up. Systems, you know, very, very well in place. [00:07:35] Um, people that are very wealthy are organized. They know where their documents are. If we call them and [00:07:40] say, "Hey, can I get a copy of your 401statement?" We have it in five minutes. They know where their [00:07:45] things are at, and, and they, they, they're conscious of, of where they put things.

And sitting down and [00:08:05] strategizing as a group and as a team, I think is very impactful. Um, it might [00:08:10] not mean we're sitting in the same meeting for an hour or whatever, but we're- we have an open relationship with these, [00:08:15] uh, professionals, and we can talk about these clients together. Estate plans are being reviewed, uh, [00:08:20] often.

Um, there's a lot of other things, you know, that, that people that are [00:08:40] wealthy have done, whether it's liquidity events. But the main thing that we've seen is discipline [00:08:45] and just taking the time to ask the questions and understanding the strategy, and, and those [00:08:50] folks typically have a very, very high likelihood of being that wealthy [00:08:55] family that we talked about a little bit ago.

Eric Wymore: Good-- Very good question. So, so no, they... I think the wealthy [00:09:10] families, you know, they think long term, right?

And so, um, you know, the big thing that they also do... And, and, and keep in [00:09:45] mind, all of these traits and habits are available to everyone. [00:09:50] This isn't some kind of special sauce that's being created that's only available for certain [00:09:55] people. It's available for everyone, and I think that's something you need to keep in mind, uh, if you're [00:10:00] the average investor, so to speak.

[00:10:20] They're very well diversified, okay? They're gonna own large growthy stocks and, [00:10:25] and, and, and bonds for some kind of stability, but they're gonna have international, they're gonna have emerging [00:10:30] markets, they're gonna have some real estate in there. Um, you know, wealthy [00:10:35] investors or families also have businesses, right?

So they're just very [00:11:00] well diversified. And the reason for that is when the markets are kind of volatile, [00:11:05] they don't have to panic, right? They... You know, wealthy families need money just like everybody [00:11:10] else, but they always have a place that they can go, you know, sell something that's not necessarily [00:11:15] down.

You know, "Are we looking for opportunities to, to be buying [00:11:40] at this price?" Um, that's a big difference between some of that average mindset and the wealthy [00:11:45] family mindset. Um, I think the other, the other [00:11:50] thing that they really value is, or look at, [00:11:55] is they really avoid that get rich quick [00:12:00] mentality. Ethan, you mentioned it, the lotto ticket.

They wanna make sure... They use the old adage, "If it sounds too good to be true, it [00:12:25] probably is." You know, they wanna h- they wanna see the results, uh, before jumping in, and they [00:12:30] realize that it takes time, and that's, that's the value of having [00:12:35] patience that they have. You know, it's the compounding strategy of investments, that [00:12:40] compounding takes time.

It's not a special secret for the wealthy families. But Jeb, maybe you can kind of share [00:13:05] a little bit more what, you know, what, uh, what they look like when [00:13:10] they, when they use money as a tool, um- And some of the other things they would be doing

And I th- I think that discipline is such a big [00:13:25] discipline. Um, you know, I... And I wanna talk about a few different books, [00:13:30] uh, just for listeners that if you're kinda wanting to, to read. Ones that kinda maybe were [00:13:35] impactful in my life or just that I thought were very interesting. Uh, but one of 'em, [00:13:40] to what you were talking about there, is called The Richest Man in Babylon.

So basically paid [00:14:05] himself first 10, you know, 10%, uh, of his income. I always thought that was a good book, super easy [00:14:10] read. One called Die With Zero, a little bit different. People might think that that's a book, [00:14:15] um, that is geared toward, you know, ba- basically being frivolous and [00:14:20] spending everything in your lifetime.

Always loved that book. Millionaire Next Door is another good one. Uh, you [00:14:50] know, it's older and, and there was a couple variations of it after the original. Uh, but it just really talks [00:14:55] about, you know, kinda like in the intro when I was talking about, you know, what professions are actually [00:15:00] millionaires out there and where do they live and all that stuff, and it just kinda talks about habits of [00:15:05] people that, that, that accumulate wealth over time.

Um, but that was a good book that I had read back in the day. And then Rich Dad Poor Dad. Um, you know, [00:15:30] uh, I think Ethan you had said you had read that one as well. But, but really the theme there is, is ownership, and I [00:15:35] think both Eric and Ethan in your guys' segments were talking about wealthy people own things, right?

One, one of the themes is that they [00:16:05] value time over stuff, okay? Meaning, uh, the... What they [00:16:10] wanna do is becau- they're not really focused on impressing people, but they wanna use money to [00:16:15] create freedom and flexibility, and they invest in experiences in their [00:16:20] life, okay? Meaning, you know, maybe that $20,000 vacation that some people think is, uh, [00:16:25] is blowing money, uh, they would value that as a way to connect with [00:16:30] family, a way to see and experience things that they haven't seen before, and I think that's a very, very [00:16:35] common theme, uh, among wealthier people.

It was something that they made a, a part of their lifestyle, uh, [00:17:10] when they were younger. So anyway, lastly, I'd say that, that most when you're talking [00:17:15] from a family perspective, uh, a lot of them have kind of a long-term family vision, [00:17:20] you know, which is, uh, they have intentional conversations with their kids [00:17:25] about money and about values.

Uh, and then also creating purpose around wealth. A good, a good [00:17:55] example of that would be, you know, a family that has a vacation home or a lake house and really [00:18:00] the, the... So, so that's something that they needed money to purchase. But, but really the value there isn't the home, [00:18:05] it's the memories that are created, it's the fun that's had, and it's all that stuff.

Eric Wymore: Yeah. And I think you hit on it, you know, and I'll... It's worth repeating, and we've [00:18:25] said it before. I mean, I think when we're doing, you know, the financial planning on things and [00:18:30] we're, "All right, what's your, you know, monthly expenses needed, and here's all the other income sources [00:18:35] that you have, and here's the projected returns of your investments, and this is what we need to take [00:18:40] out for, you know, each month or each year to, to live o- live..."[00:18:45]

Ethan Hutcheson: Mm-hmm.

And man, what a memory you get [00:19:10] to create when you get to take your family on a vacation or you're, you're gonna, like you said, you buy that second [00:19:15] home so all of a sudden it's not, you know, to show off your money, but it's a gathering place [00:19:20] for your family to come and, and make those memories together.[00:19:25]

Ethan Hutcheson: when you- For sure ... when you remove the facts and, like, when [00:19:35] you're sitting down with a family for the first time, you can tell a lot about them when you ask them what's important to them. [00:19:40] And if they say, "Oh, I, I want 18% returns guaranteed," blah, blah, blah, you kind of know, you know, [00:19:45] what, what's probably behind that curtain versus someone who says, "I just want time to spend with my family long here."

Jeb Graham: Yep, 100%. Yep. They, they wanna, [00:20:05] they wanna s- uh, they wanna know that their money's in a good place so that they can live their [00:20:10] life, right?

Right. And that's kind of where they're at. So- Yeah, they're more- Well- ... focused

Jeb Graham: You know?

I want to plan this, you know, this vacation with [00:20:25] the kids. Yep. You know, that's, that's what they're wanting to do. Yep,

Voiceover: Thanks for tuning in to Metcalf Money Moment, the podcast. [00:20:50] We hope today's episode provided valuable insights to help you unlock financial [00:20:55] clarity, confidence, and peace of mind. For more expert advice and resources, visit [00:21:00] Metcalfpartners.com. Until next time, make every money moment [00:21:05] count.[00:21:10]

The opinions [00:21:25] voiced in this podcast are for general information only, and are not intended to provide specific advice or recommendations for any individual. To [00:21:30] determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.