Feb 18, 2021
Jim Dew specializes in working with owner/founder entrepreneurs.
Most financial advisors and wealth management people will work with
anyone who has money, but there are unique problems and
opportunities facing entrepreneurs.
- His ideal client is a business owner or entrepreneur who is
doing more than $1 million EBITDA (Earnings Before Interest, Taxes,
Depreciation, and Amortization). A company that has revenue and
profits is where Jim can really add value.
- Jim builds virtual family offices for entrepreneurs, which is
the wealth management solution that the billionaire club uses to
manage their wealth. A family office is where a billionaire will
simply hire all the needed tax, legal, insurance, and investment
professionals and bring them under payroll for the family.
- Jim learned about the process from a billionaire family that
was willing to show him the processes and he decided to help
entrepreneurs achieve similar results.
- Every entrepreneur needs to protect, manage, and grow their
wealth. Jim helps entrepreneurs in nine different areas under those
categories by coordinating the different professionals
- In most situations, the entrepreneur in the middle trying to
manage those relationships is the weakest link. Jim’s company takes
a central role so that all the players are collaborating and
coordinating together to achieve better results.
- Most financial advisors either get paid for selling products or
managing assets. Jim’s company does neither, they represent the
entrepreneur and negotiate on their behalf.
- Jim believes that the incentives need to be aligned because
they drive where you get advice and the results you get. This is
why all of Jim’s advisors are compensated with salary and bonuses,
this way they are aligned with the client’s needs in a true
- Covid-19 has affected entrepreneurs all over the world. If you
were in the right space your business exploded, like Peleton did.
If you were in the wrong space though your business suffered. Jim’s
company has been helping clients navigate the situation no matter
what they are facing.
- One of the lessons that Jim’s clients have learned is that you
have to know your numbers, that’s how you navigate hard times like
- Entrepreneurs need a great team with a CPA and a tax attorney
who are proactively looking at their situation and coming up with
- The tax code is complicated and set up in a way that an
experienced tax planner on your team is a major asset. You won’t go
to jail for screwing up the deductions, the danger is in hiding
revenue. There are a number of strategies that you can use to
minimize your taxes, but you have to be careful and have smart
people on your team to help you implement them.
- Jim was raised by parents that went through the depression, so
he learned to be very frugal with money. He had always been
idealistic and was good at math and science, so Jim started off as
a public school teacher. He did that for five years and learned two
important lessons from the experience. The first is that he loved
making a difference and helping people, and the second was that he
couldn’t work in a broken system. Jim got into financial services
and after getting into an argument with the manager of the firm Jim
went on the path of starting his own company.
- The basic fundamental truth is that entrepreneurs get rich by
being concentrated in a business, but you stay rich by being
diversified outside that business.
- Every great investor has a discipline. Jim starts with where
his clients are now and then comes up with a strategy to get to
where they want to go. This allows them to quickly evaluate
- Often people look at election results and other economic
indicators to try to determine their investment strategy. When it
comes to investing, you want to invest on probabilities, not
possibilities. Every politician promises a number of changes, but
they rarely get turned into law without considerable changes.
- Cash is historically the worst-performing asset class. Try not
to get worked up about apocalyptic predictions about the market and
avoid trying to predict the future of the market.
- Focus on your business. Don’t think you’re going to get rich
from Bitcoin or Tesla stock. Your business is what is going to make
you rich and improve your lifestyle.
Mentioned in this episode:
Michael Rozbruch's Tax & Business Solutions