Make Rich Real-Three Principles Reserved For Billionaires Feat. Jim Dew

I believe that entrepreneurs are the reason for everything great in this country. You're the reason for the economy. You're the reason for innovation. You're the reason for giving. And I believe you deserve to make rich real. Now, that means different things to different entrepreneurs. So to one entrepreneur, it might mean something as simple as flying first class or flying private. For another, it might mean taking three months off a year to travel the world. For another, it might mean knowing that your great grandchildren never have to worry about the cost of an education. And for still others, it might mean serving a cause you care about, both while you're on this planet and beyond, which for Dave Asprey, is 180 years in my 24 years of helping entrepreneurs. To make rich real, you need three outcomes.

You are in this room because you are financially successful. Yet some of you, when you compare yourself to people doing 10 million, 100 million, or half a billion a year in business, you might not feel you are that successful financially. Let me reassure you, you are. Think of this fact. IRS table shows that you are, as being in this room, in the top 10% of earners in America. If you make more than $113,799 a year, some of you make 10 or even 100 times that. In order to be in this room, you have to be exceptional at making money. However, it takes an entirely different set of skills to make money than to keep money. I found this out way back in 1998. I was getting really good at making money, but I was not doing a good job at keeping my money. That's when I decided to hire Jim do as my financial guide and wealth protector. Now, after over 20 years of having Jim protect me from myself, advised me on where to put my money, and be my sounding board for all my financial decisions, I feel good about where I am financially. That's where I want every one of you to be. A place where you feel good about where you are financially. That's why I've asked Jim to talk with you today about some of the principles reserved for billionaires. Yet, since most of you in this room are millionaires, you need to be thinking like a billionaire. You'll know why in a few minutes. Jim has achieved a great deal in wealth management. He's a master. He's got a master's degree in business. He's a certified financial planner, a chartered financial consultant, a certified private wealth advisor, and so many other designations, it would take me longer than 10 minutes to tell you all of his accomplishments. Perhaps the most important Thing you need to know about Jim do is that he is one of us. He is first and foremost an entrepreneur. He understands the entrepreneurial mindset. He thinks big like you think big. He's an advisor to the entrepreneur. Jim knows how you think and has developed a system to help entrepreneurs keep more of what they make and a plan for a sustainable future. Jim's title for today is Make Rich Real. Please help me welcome my dear friend, Jim Duke.

Most of the time, speakers wait till the end to show the disclosures. So let me just take care of that right up front. Everyone got that? I'm going to begin by borrowing from the great book A Tale of Two Cities. It was the best of times and it was the worst of times. I went from being very happy to very sad in a matter of seconds. I left a big brokerage firm in 1999 when Mimi and I started our own wealth management company and began our entrepreneurial journey to this moment when I realized we had netted more than a million dollars from our company. But just when I was getting excited, I scanned down the tax return to see how much we had paid in taxes that year. And I remember thinking to myself, you could buy a pretty nice home for that much money. And then I was overcome with doubt. Doubt about the way I was managing our own wealth. Had we hired the right professionals on our team? Was I making mistakes? Was I missing big opportunities? And even though we lived a great lifestyle, was it sustainable? You have to remember, at that moment in time, I thought I knew everything there was to know about wealth management for entrepreneurs. So I started asking other wealth managers I respected and I kept hearing the same traditional answers. Then I heard about something called a family office, the way billionaires manage their wealth. And luckily I got introduced to a family office in New York City. I jumped on a plane, I flew out there and I met with the CEO and we hit it off. We just connected. And he shared with me how they would hire the best accountants, attorneys, legal, tax, insurance and investment professionals working for that one billionaire and his family as full time employees. I knew immediately that this was the best way to manage money for entrepreneurs. There was only one problem. You need about 200 or $300 million before that makes any sense. Then I thought, I wonder if I could create a virtual family office at a fraction of the cost for entrepreneurs like me and my clients who are making great money but don't yet have $200 million in assets I needed didn't exist. So I created it first for my own clients and our Family. And now we do it for every new client. I'm going to cover three things with you today. I'm going to cover the entrepreneur's virtual family office. So this is a structure how you should think about your wealth management as an entrepreneur. I'm going to go over stress testing which billionaires do and you should too. And finally, I'm going to cover some questions you can ask yourself for a self assessment to see where you are in your wealth planning journey. First, the entrepreneur's virtual family office. If I can get a slide up here. There we go. Perfect. So here's the framework. I want you to think about things. I believe that entrepreneurs are the reason for everything great in this country. You're the reason for the economy. You're the reason for innovation. You're the reason for giving. And I believe you deserve to make rich real. Now, that means different things to different entrepreneurs. So to one entrepreneur, it might mean something as simple as flying first class or flying private. For another, it might mean taking three months off a year to travel the world. For another, it might mean knowing that your great grandchildren never have to worry about the cost of an education. And for still others, it might mean serving a cause you care about, both while you're on this planet and beyond, which for Dave Asprey is 180 years in my 24 years of helping entrepreneurs. To make rich real, you need three outcomes. You need absolute confidence in your team. You need max wealth both inside and outside your company. And you need sustained wealth. I meet entrepreneurs all the time. They had a huge exit. They made a lot of money and they squandered it. Because as Joe said in the intro, it's a different skill set to make money than to keep money.

Hey, I hope you're enjoying this video. And I want to let you know that I have a new book that's come out and if you'd like to get it absolutely free, there's a link below in the description. Or you can wait till the end of this video or you can Simply go to joesfreebook.com and you can get.

A copy there to get these three outcomes. There's three main drivers. Entrepreneurs love to grow, but I'm going to leave that to third. The first is protect, moving from vulnerable to secure manage, which is moving from uncoordinated to worry free and finally grow the part you're excited about, moving from incremental to exponential. So when you protect and manage, you get absolute confidence. When you manage and grow, you get maximum wealth. And when you Grow and protect, you get sustained wealth. For each of these Protect, manage and grow, I created three catalysts and this is where the work is really done. First, asset protection. This is having a plan so your assets can't be taken by a lawsuit. Second is wealth transfer. So making sure the right people get your stuff and money when you're done with it, at the right time, in the right way, without ruining your kids. If you don't have kids, your wisdom as an entrepreneur should be passed on through stories and videos. And then finally, the time energy shield. You should have a wealth manager on your team that protects you from other professionals, pitches and projects. Under Manage business value, your business is the most valuable asset you have. You need to get a business valuation to know it's worth. You need a monetization strategy which could be a high multiple exit. Or it could be turning your company into mailbox money, where you live a great lifestyle and you go out to the mailbox and pick up a check. If you're under 30, ask an old person at your table what a mailbox is so we can move to the next one. The next is the wealth wheel. You're going to pick up advisors and professionals over your life as an entrepreneur. You're going to pick up an accountant, you're going to pick up an attorney. You're going to pick up an insurance agent. Often they're not all a players. They're not talking to each other. And the worst part is you're in the middle trying to manage that team and you shouldn't be in the middle. And then finally, the linchpin partner. This is who holds the whole thing together. This is a wealth manager who has three distinct qualifications. First, a specialization in working with entrepreneurs. Most financial advisors are generalists. Second, experience in working with entrepreneurs at least 10 or 20 years. And third, a fiduciary standard of care in all dealings with you. That's a fancy legal term that means the advisor has to by law represent you and your interests before their own. Under Grow tax planning, your largest expense as a successful entrepreneur is going to be taxes. You should have a well thought out, annually updated and implemented tax plan investments. I put these in three categories. Private equity, real estate and stocks and bonds. You want to have a smart strategy for how you're handling those areas to build wealth outside of your company. And finally, the profit accelerator. Knowing what are your critical drivers to profitability. Having a simple way to monitor and improve those key drivers and by doing that increase your cash flow. Second thing I want to cover today is the stress test. CEG Worldwide did a study of 199 family offices. These are families that have more than $500 million and 93.5% of them do stress testing. What is stress testing? What does that look like? It's a deep dive with a wealth expert on everything that touches your wealth. So it's looking at your business insurance, your personal insurance, your liability coverages, your estate documents, your asset protection plan, your investment statements, your business tax returns, your personal tax returns, Your P&LS, your business operating agreements, your buy sell agreements, your debt, and even the plans you put together for your employees. At an event like this, I get asked a lot, Jim, what's the first thing I need to do on my wealth management? You need to get a stress test by a qualified wealth manager that does this on a regular basis. We do it for all of our clients and we do it to answer three questions for them. First, are you making any big mistakes? Second, are you missing any opportunities? And third, does your team consist of a players and are they talking to each other? The third is the self assessment within the nine categories that I went over earlier. I created a question for each so an entrepreneur like you can find out. Where are you in your wealth planning journey? I only have time to go over two today of the nine, but let's do this together. So question seven of nine is how convinced are you that your annual plan for paying less tax is delivering on all the legal opportunities available to you? This is one to ten. One is bad, ten is excellent. So one might be. Every year the US treasury sends me a birthday card. I hope that's not you. And a 10 would be my plan is second to none and most likely you're somewhere in between 1 and 10. Question number 5 of 9 How confident are you that you could completely forget about your wealth management and still know for sure that your wealth team is proactively driving your wealth forward? A1 would be it's a hot mess and A10 totally confident. We created for the nine questions the make Rich Real scorecard. And this is my gift to you. Go to makerichreal.com and you can get the scorecard. There's no required opt in. I promise you're not going to be tagged, pixeled, prodded or poked. A lot of smart people in the room could show me how to do that, but that's not the purpose of this. I'm going to leave you today with this story. My office manager buzzed me one day and said, jim, Steve just called and Steve and Joanne are coming in tomorrow and they said it's urgent. And that concerned me because Steve was a high flying entrepreneur. We had been working together for more than 10 years and Joanne never came in. It was always Steve. He said she didn't care about the finances and then he handled everything. The next day, I walked into the lobby to greet them. First I saw Joanne. Her face was pale and she looked sad. Then I looked over and saw Steve. He was in a wheelchair and his hair had fallen out. And I knew immediately that Steve had cancer. No one mentioned the elephant in the room. I got them back into my office and as soon as we got settled, Steve went into the meeting like normal. Started talking about our plan and the strategies about the professionals on the team. And when he finished, he looked at me and he said, very matter of fact, Jim, I've got pancreatic cancer. I only have a couple of months to live. Can we go over the part of the plan where I'm not here and it's just Joanne? I looked at Joanne and she had tears streaming down her face. So I went over the plan the way it worked without Steve when he's gone. And when I finished, I looked at Steve and I was surprised to see this look on his face. This look of peace, this look of contentment. And then he looked deep into my eyes and I looked deep back into his and he simply said, you got her? I said, yeah, Steve, I've got her. And we teared up. A couple of months later, Joanne called me to tell me that Steve had passed. And as I hung up the phone, I said to myself, don't worry, Steve, I've got her. Who's got you? Who's got your family? You deserve to have a team of a players. You deserve to have a team that talks to each other. You deserve to have a team that puts your interests before their own. Now is the time to get the team that you deserve. Okay.

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