Jim Dew is the CEO of Dew Wealth Management. He has 24 years of experience building high-functioning wealth management teams and virtual family offices for entrepreneurs.
Wealth Mastery Matrix – Find out where you fit on the Wealth Mastery Matrix!
3 Value Bombs
1) Have the right structure. It may seem overwhelming depending on where you are as an entrepreneur, but you can put that out as a goal you can start working toward
2) Go DEAPR on your tax planning. D is for defer; E is for eliminate; A is for arbitrage; P is for pay now, not later; R is for reduce.
3) The tax code is very complicated, and there are many opportunities to do things legally to dramatically reduce taxes.
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Today’s Audio MASTERCLASS: The Entrepreneur’s Playbook for Expanding Wealth, Freedom and Time with Jim Dew
[01:07] – Jim shares something interesting about himself that most people don’t know.
- His first job was a math teacher. Before he went into wealth management, he did door-to-door sales for about 18 months.
[03:57] – What’s the structure that billionaires use that we can adapt to better manage our wealth?
- How billionaires structure their wealth management is called “family office”, where a very wealthy family will hire all the needed professionals to manage their wealth.
- What Jim helps with is building a virtual “family office” for a fraction of the cost.
[05:47] – What’s one thing we can do to better manage our wealth using this type of structure?
- The first thing you need to know is where you’re at today on the Wealth Mastery Matrix.
- The four quadrants are:
- Ostrich – lives by “avoid and ignore”.
- Juggler – tries to manage all of the stuff by yourself.
- Air traffic controller – when you have excellent advisors around you, but you’re managing the advisors yourself.
- Virtual family office – you have A-player advisors around you collaborating on your behalf and managing your wealth in a way that’s not so difficult.
- Wealth management doesn’t have to be difficult. If you start moving towards better structures, all things start to clear up.
- The structure is the most fundamental thing for good wealth management moving forward.
[10:54] – Basic building blocks to protecting your assets.
- Asset protection is protecting yourself from all sorts of outcomes, like unexpected lawsuits.
- I.L.A.T.E. – different asset protection strategies.
- I is for insurance – have umbrella liability insurance for your personal situation and liability protection for your company.
- L is for laws – utilize homestead protection laws.
- A is for annuities and life insurance – some entrepreneurs put money in annuities and life insurance if the state they live in has really good protection under the law.
- T is for trusts – a Domestic Asset Protection Trust would create ‘rainy day money’. If you ever get sued, it will be very hard to get to that money.
- E is for entities – separating different entities in your business can create asset protection.
[18:32] – Even if you’re doing the I.L.A.T.E., you probably aren’t as protected as you think you are.
- Even if you have the umbrella and other coverage, if you don’t have the right exclusions, then you may not be protected.
- It’s critical to read your exemptions and inclusions.
[21:30] – Are those who move to Puerto Rico paying too much in taxes?
- You have to think of warning signs and pay attention to them.
- The tax code is very complicated, and there are many opportunities to do things legally to dramatically reduce taxes.
- As an entrepreneur, your number 1 expense in your life is taxes.
- If you think you’re paying too much in taxes, you want to have the right CPA and a tax attorney as part of your team
- Go DEAPR on your tax planning. D is for defer; E is for eliminate; A is for arbitrage; P is for pay now, not later; R is for reduce.
[24:18] – Jim talks about an area of estate planning that almost every entrepreneur gets wrong.
- First, you need basic documents.
- Jim asks, “what do you want to pass on to the future generation other than estate planning?” If you can only pass on one thing, it should be wisdom.
- The part that most entrepreneurs miss is passing on the wisdom of a lifetime.
[28:23] – When selling your business, how could exclusively using an investment banker cause you to miss out on millions of dollars?
- When you have the right wealth manager involved, there’ll be some planning techniques that come forward an investment banker may not be aware of.
[31:11] – Jim’s parting piece of guidance
- Have the right structure. It may seem overwhelming depending on where you are as an entrepreneur, but you can put that out as a goal you can start working towards.
- If you get the structure right, then you’ll have a greater chance of not making mistakes in the future.
- Wealth Mastery Matrix – Find out where you fit on the Wealth Mastery Matrix!
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