Wealth Management

Voted #6 on Top 100 Family Business influencer on Wealth, Legacy, Finance and Investments: Jacoline Loewen LinkedIn Profile
Showing posts with label job. Show all posts
Showing posts with label job. Show all posts

March 22, 2019

What job do you want your money to do?

Business Transition Forum and speaker, Jacoline Loewen
When an owner of a business sells, it is a challenging time as they go from being the smartest guy in the room in their business, to being a money manager.

These owners find it tough to trust a wealth management expert, even if they are asking the most important question:

What job you want your money to do?

To have that fancy car, that new home with the best furniture, that golf club membership, that cottage in Muskoka,, that home in Costa Rica?
Or is to educate your kids, support a charity, gift to your alma mater or for scholarships? Or to invest into the VC community?

One question I do not hear being discussed with enthusiasm is how can the wealth take you to retirement and beyond?  The latter question is rarely examined early in the sale of business process. It can be more appealing to have to go to the dentist, it seems.

Sudden wealth does happen for business owners, people inheriting wealth and the notorious lottery winners. There are popular strategies used by those gaining this sudden wealth.

Fire Hose Strategy

One of my top prospects sold his trucking company a few years ago and has been all over the place with managing his cash outflows. Probably managing his wife and grown up offspring was the hardest. as they were spending money using the fire hose strategy. He just called me all excited because he had just figured out that he only needs dividend strategy.

"So I don't touch the capital, live off the dividend and if you get 5% interest, you are fine.  The market is going up 90% of the time, and I get a check every month."

I was frustrated that my conversations with him had not unearthed that central and very core point about managing wealth.  Needless to say, he has not become my client.

We are actually doing a highly complex business of wealth management and along the way, this entrepreneur had got the message from his own networking because that is what he trusts.

Pin the Tail on the Donkey Strategy 

What seems blindingly obvious to you, often is not the full answer or even close to the possibilities. If you are relying on your golf buddies or YPO Forum to figure out your wealth management, you will not be getting a full picture of what your could really achieve for you. Your strategy is to go forward blindly and put the tail where you hear your friends telling you to press that pin.  When you take off the blindfold, you discover your buddies did not do a good job of guiding your guesses and also, they don't need to care.  You need to care.

What job do you want your money to do?   What is your money for? It can be difficult to get going and it is helpful to think about these questions to prod, push and poke your thoughts. there is no correct answer.

  1. What gets you out of bed in the morning,  What would get you out of bed?
  2. Do you think globally or locally?
  3. Are you concerned with making a difference? Where? With your family?  Or with the community or with a large internet audience?
  4. Are you impulsive or considered?
  5. How much control do you have over your time?
  6. How much money do you need monthly?

Use my coupon to get a discount to the Business Transition Forum. 20% discount  you can share with your network using the code jloewen20
The Business Transitions Forum<https://businesstransitionsforum.com/> (BTF) is a multi-city conference for business owners seeking expert insights for how to approach the most monumental decision in their company’s journey. Whether their objective is to grow, sell or buy, BTF will give them the tools to enhance the value of their business. Our 2019 Spring line-up includes BTF Atlantic (April 2-3), BTF Edmonton (April 15-16) and BTF Toronto (May 28-29).