Family Businesses: The Ultimate High-Wire Act—With No Net!

Family businesses? They’re not just businesses. They’re emotional rollercoasters strapped to a P&L statement, racing through a minefield of chaos. Sure, they wrestle with the same brutal beasts as every other outfit—cashflow nightmares, tech glitches, supply chain snarls, cybersecurity boogeymen, and the eternal HR headache (good luck finding talent that doesn’t bolt at the first whiff of dysfunction). Add in political curveballs—tax hikes, trade wars, environmental regs—and a creeping dread of AI that’s got owners attention. But that’s just the warm-up act.

What sets family businesses apart? Feelings. Raw, messy, unfiltered emotions—from the dizzying highs of triumph to the gut-punch lows of betrayal. It’s a circus of joy and agony, and I’ve experienced it in my family business and I’ve seen it up close—advising, coaching, and financing for family firms teetering on the edge. Here’s my hit list of 10 gnarly problems I’ve tackled head-on. (Spoiler: there’s more where these came from!)

  1. Family Flunkies Dodging the Axe
    Can’t fire Cousin Jimmy, even when he’s a walking disaster? Blame Mom—the matriarch who’d rather hug it out than hand out pink slips. Or maybe the boss is a “Harmony” junkie (Gallup’s term, not mine). Either way, dysfunction festers.

  2. Nepotism on Steroids
    Junior gets the corner office before he can spell “ROI,” while non-family grunts grind their teeth. Or worse, the next gen’s forced to stay, half-hearted and hating it. Meritocracy? Ha!

  3. Vision Misalignment
    Patriarch says jump; everyone else says, “How high—or why bother?” Work ethic gaps and values clashes turn teams into warring tribes. Alignment? Dream on.

  4. Succession Planning Paralysis
    The big kahuna’s “my way or the highway” vibe steamrolls the next gen’s ideas. No plan? No future. I’ve seen this blow up in good times and bad—health crises or harmony be damned.

  5. Relationship Handoff Hell
    Founders cling to clients like life rafts, especially in sales. Short-term relief, long-term pain. Transition? They’d rather eat glass.

  6. Father-Son Cage Matches
    Dominant dads (think DISC’s “D” or Gallup’s “Command”) lock horns with sons itching to prove themselves. Decisions stall for years. Lawyers and accountants just fan the flames.

  7. Sibling Smackdowns
    Power, cash, favoritism—siblings build silos, rally minions, and turn departments into battlegrounds. Patriarchs play ref, but the rift grows. Coaching can tame this beast—sometimes.

  8. Staff vs. Family Smackdown
    Blood gets the perks—roles, info, dough—while staff eat crumbs. “Master Rules” workshops can shine a light, but don’t expect hugs all around. Blood’s thicker, period.

  9. Strategic Tunnel Vision
    Patriarchs lean on gut and loyal yes-men, shunning outside intel. Works till it doesn’t. Big accounting firms swoop in with fancy plans—but no follow-through. Acceptance? Execution? Good luck.

  10. Peer Group Pity Parties
    Roundtables and “Old Boys” clubs start strong, then devolve into whine-fests. Add accountants or advisors, and it’s a circle-jerk of stagnation. Succession? Entrepreneurship? Kiss ’em goodbye.

    Here’s the kicker: family businesses thrive on passion, loyalty, and grit—until they don’t. The fix? Open minds (Big 5’s “Openness,” anyone?). Patriarchs, matriarchs, and sulky heirs need to ditch the drama and act like adults (shoutout to Eric Berne’s Transactional Analysis). Embrace AI, outsiders, and fresh ideas—or watch the circus tent collapse. I’ve helped dozens dodge that fate. You can too. Call me.

Jacoline Loewen partners with family businesses to cut through the noise and build lasting legacies.

Great Family Businesses Need Good Governance

Institute of Corporate Directors, Southwest Ontario presents “Great Family Businesses Need Good Governance”

Ivey Business School's David Simpson discusses governance issues unique to the family-run business. 

 Given their portrayal in the media, it might be easy to dismiss family businesses as hotbeds of power playing, favor currying, and back-stabbing—preoccupations that can hurt the company, the family, or both. But despite the headline-grabbing tales, many family businesses have enjoyed success for decades, even centuries.

 David Simpson, Director and Lecturer, Entrepreneurship, Ivey Business School will speak about Family Business Governance. This event is an opportunity for current directors of boards, business families, and business leaders to gain insights into the real-world challenges of the complexities of family business governance. 

 Join this insightful discussion hosted by the ICD on Governance Lessons from Great Family Businesses.  Whether your company is publicly traded, partly owned by professional investors, or completely family-owned, committing to sound governance practices is essential for sustainable growth and success.

📅Date: 📍 Location:

Date: April 17th

Time: 4:30pm registration and networking, 5:00pm start, 6:00pm cocktails, 6:30pm end

Venue: The Hunt Golf Club, London

Don't miss this opportunity to network with peers and gain valuable insights. Register now and strengthen your knowledge and competence in family business's governance.

RSVP to: jloewen@burgundyasset.com

 David Simpson. Program Director and Lecturer, Entrepreneurship

Expertise: Entrepreneurship, Family Business, Corporate Finance

David Simpson is a London, Ontario-based financier with a broad range of business experiences and a passion for entrepreneurship. He has financed and operated a diverse range of businesses, including restaurants, golf courses, aircraft leasing, oil field serves, and retail.

David completed a B.A. in Political Science through part-time study while he played professional hockey in the New York Islanders organization. Upon retirement from hockey, David completed an MBA at the Ivey Business School, graduating in 1988. Upon graduation, David began a career as an entrepreneur engaging in all aspects of corporate finance in the small business sector.

In 1989, David was the co-founder of The New Enterprise Workshop, one of the earliest attempts (supported by the Ontario provincial government) to support fledgling entrepreneurs. As an operator himself in a family business, David is keen to support Ivey’s efforts to understand and support learning in this vital sector of the Canadian economy. As a practicing entrepreneur, David is passionate to promote this lifestyle choice as Program Director of FamilyShift™, an executive education program for entrepreneurial families.

Jacoline Loewen, ICD.D, MBA

Jacoline Loewen serves as the Director of High Net Worth Relationships at Burgundy Asset Management Ltd., an independent, global investment manager providing discretionary investment management for private clients, foundations, endowments, pensions, and family offices.

Jacoline’s strong passion for entrepreneurship and deep commitment to board involvement developed over two decades of experience in finance, including wealth management, corporate finance, and family office private equity investments. She is also the author of three finance books for business owners - the most recent book titled "Money Magnet" comes recommended by the Richard Ivey School of Business and Toronto Metropolitan University.

For 2023/2024, she was elected President of The Ticker Club. She is a director on the board of The Fraser Institute, and involved with the Institute of Corporate Directors, Southwestern Ontario chapter.  She served 14 years as a director on the board of The Atmospheric Fund, managing $100 million AUM. During her tenure, she chaired both the Strategy and Investment Committees and serving as a member of the Audit Committee. She served as Chair at the OCAD University Imagination Catalyst and a Director on the Board of the PCMA.

Jacoline completed the Institute of Corporate Directors Education Program and has the ICD.D designation from the University of Toronto. She holds a BA in IR from McGill University and a MBA from the University of the Witwatersrand, her MBA thesis was published by Cambridge University UK.

Beyond Rags to Riches: Strategies for Sustaining Family Wealth Across Generations

The saying "from rags to riches in three generations" echoes across cultures worldwide, encapsulating a familiar arc: one generation builds wealth, the next enjoys it, and the third squanders it. This pattern—sometimes called "shirtsleeves to shirtsleeves"—is a cautionary tale rooted in reality for many families. Yet, it’s not an inevitable fate. For families with substantial wealth, there are proven strategies to break this cycle, preserve their financial legacy, and even enhance it over time. So, what are the options to maintain and grow family wealth across generations?

The erosion of wealth often stems from a mix of poor planning, lack of communication, and shifting priorities. But families who defy the odds share common traits: intentionality, adaptability, and a focus on long-term vision. Let’s explore some practical and innovative approaches to safeguarding and building a family’s fortune.

1. Establish a Family Governance Framework

Wealth preservation starts with clarity. A family governance structure—think of it as a constitution for your family’s values and assets—sets the tone for decision-making. This might include regular family meetings, a shared mission statement, or even a formal council to oversee major financial moves. By aligning everyone on goals (e.g., philanthropy, business growth, or legacy investments), families reduce the risk of conflict or drift. The Rothschild banking dynasty, for instance, famously used family councils to maintain cohesion and strategic focus across centuries.

2. Educate and Engage the Next Generation

One of the biggest threats to wealth is an unprepared heir. Too often, the second or third generation lacks the financial literacy or entrepreneurial drive of their predecessors. Counter this by starting early: teach children about money management, investments, and the family’s history of wealth creation. Some families create “mock portfolios” for teens to manage or involve them in charitable giving decisions. Engagement fosters ownership—both literal and emotional—making heirs stewards rather than spenders.

3. Diversify Wealth Streams

Putting all eggs in one basket is a recipe for disaster. Families who thrive diversify their holdings—real estate, private equity, public markets, or even passion projects like vineyards or tech startups. Diversification isn’t just about risk management; it’s about opportunity. Consider the Rockefeller family, who transitioned from oil riches to a sprawling portfolio of investments and trusts, ensuring resilience through economic shifts.

4. Leverage Trusts and Estate Planning

A well-crafted trust can shield wealth from taxes, creditors, and mismanagement. Options like dynasty trusts, which can last for generations, or incentive trusts, which tie distributions to milestones (e.g., earning a degree or maintaining a career), offer flexibility and control. Pair this with regular estate plan updates to adapt to changing laws or family dynamics. The key? Work with advisors who understand your family’s unique story, not just the numbers.

5. Build a Culture of Entrepreneurship

Wealth often fades when families stop innovating. Encourage a mindset of creation over consumption—whether that’s launching new ventures, investing in cutting-edge industries, or mentoring the next wave of leaders. The Mars family, behind the global candy empire, kept their edge by reinvesting profits into new products and markets, balancing tradition with bold moves.

6. Philanthropy as a Unifying Force

Giving back isn’t just noble—it’s strategic. A family foundation or shared charitable mission can unite members across generations, reinforce values, and provide tax benefits. It also offers a training ground for younger relatives to learn leadership and financial oversight. Look at the Gates family: their foundation has not only impacted the world but also cemented their legacy beyond mere dollars.

The Alternative Path

The “rags to riches and back” narrative doesn’t have to be your family’s story. By blending structure, education, and innovation, wealth can become a tool for connection and purpose rather than a fleeting windfall. The families who succeed don’t just avoid catastrophic loss—they turn their resources into a living legacy, evolving with each generation.

What’s your family’s next step? Whether it’s a candid conversation around the dinner table or a call to a trusted advisor, the time to act is now. Wealth isn’t just about what you have—it’s about what

 




It’s Different This Time: Family Wealth Management in a New World

By Jacoline Loewen
February 25, 2025

“It’s different this time.” Those five words are the most dangerous in investing—a siren call that’s lured many to ruin. They whisper that history’s lessons and the bedrock principles of wealth-building—discipline, diversification, patience—can be tossed aside. But here’s the twist: in the world of family wealth management, it is different this time. Not because the rules don’t apply—they do—but because the societal and economic landscape has shifted so dramatically that families must think and act differently to secure their long-term goals.

For years, I’ve been a "Family First" advocate—practically a cheerleader—helping clients build not just wealth, but legacies. Yet today, the pressures facing families are of a magnitude I never anticipated. Inflation bites harder, technology disrupts faster, and the modern family itself is fraying at the edges. Marriages dissolve, children move far away and drift, global cousins barely know each other. The old certainties—stable unions, tight-knit clans, shared values—are eroding. And with them, the assumptions underpinning family wealth management are being tested like never before.

The Past Still Matters—But the Future Demands More

Success in this new world isn’t about abandoning the best of the past; it’s about preserving it while embracing what I call the "next practice." Compounding still works miracles. Diversification still shields against storms. But clinging to yesterday’s playbook without adapting to today’s realities is a recipe for stagnation—or worse. The families I work with know this: wealth isn’t just numbers on a balance sheet. It’s the family itself—the heart of every decision, the engine of every aspiration.

My role? Helping families articulate and achieve their broader vision—lifestyle, business, education, financial security, philanthropy—while navigating a louder, messier, and more fragmented landscape than ever. I used to believe divorce was rare, drug issues were outliers, and marriages were forever. I was wrong. Changes in the modern family aren’t just possible—they’re inevitable. Children increasingly carve their paths, separate from the family core. Global families stretched across continents, have less time together and fewer shared touchstones with their cousins. Community—the root of happiness—is harder to create and sustain.

The Non-Financial Key to Multigenerational Wealth

Here’s the issue: the most critical part of family wealth management isn’t financial—it’s non-financial. It’s the education and engagement of the family across generations, bridging divides of age, geography, and values. This may be the wisest investment a family can make—not in stocks or real estate, but in itself. Why? Because wealth is an advantage only if the family stays cohesive enough to wield it. Risk management, succession planning, and long-term preservation all hinge on this.

Picture a family enterprise spanning decades. The portfolio might be stellar—low fees, high returns—but if the kids don’t understand the "why" behind the wealth, if the cousins don’t trust each other if the next generation isn’t engaged, it’s all for naught. I’ve seen it: families fractured by divorce, addiction, or sheer distance, watching their wealth dissipate not from bad investments, but from bad relationships.

Adapting to Thrive

So, what does "next practice" look like? It’s doubling down on the principles that endure—rigorous planning, prudent diversification—while facing the new realities head-on. It’s investing in family retreats to rebuild bonds, in education to align values, in communication to span the generational chasm. It’s recognizing that wealth’s true power lies in giving families freedom and resilience—advantages that shine brightest when the world gets tough.

"It’s different this time" isn’t an excuse to ignore history; it’s a call to adapt with courage. But today, that means leading families through a world where the stakes are higher, the pressures are fiercer, and the rewards—for those who get it right—are greater than ever. Let’s build legacies that last—not just for now, but for generations.

The Wealth Paradox: A Tale of a Canadian Tire Franchise Owner

There he stood, an unassuming figure in a sea of everyday people—yet beneath the surface, he was the king of his own glittering kingdom. Our protagonist, a franchise owner of Canadian Tire and a private equity investor, held the keys to an Aladdin’s Cave of wealth. But you’d never guess it, given the lengths he went to downplay his affluence.

With a whisper, he confided his net worth. A number so astonishing, even Google might struggle to estimate it accurately. Yet, his intent was clear: he wanted the world to believe he was far poorer than reality. Why? To avoid the avalanche of problems that come with being rich.

In a world obsessed with wealth, his affluence had become a burden. Imagine meeting someone new, only to have them ask for an investment in their latest business venture. Picture a distant relative suddenly appearing, pleading for help with debt. Or even closer to home—family members expecting freebies from his Canadian Tire store. And then, there were the changes in behavior, the subtle shifts in how people treated him when they knew about his wealth. To him, being rich was not a blessing but a curse, a weight that occupied his every thought.

And yet, despite this, he found himself chasing more. More wealth, more investments, more success. The irony was palpable. Here was a man drowning in riches, yet he couldn’t stop himself from diving deeper into the pool. It’s a phenomenon many wealthy individuals grapple with—this relentless pursuit of more, even when they already possess an abundance.

Dan Sullivan, the Founder of Strategic Coach, calls this the “Gap and Gain” mindset. It's the idea that wealthy individuals often focus on what they haven’t achieved rather than appreciating what they have. They measure their success against others’ wealth, never pausing to give themselves credit for their accomplishments. It’s a vicious cycle, one that leaves them perpetually dissatisfied.

But let’s take a step back. Wealth, in its truest sense, is a process. It’s not just about the numbers in your bank account, but the journey you’ve taken, the lives you’ve touched, and the impact you’ve made. Our Canadian Tire franchise owner, for all his wealth, had created opportunities, provided jobs, and positively influenced countless lives through his investments and businesses.

Yet, as he stood on the precipice of even greater wealth, one question loomed large: on his deathbed, would he want to be surrounded by his financial statements, or by the people who loved him for who he was, not what he had?

It’s a question every wealthy individual must ponder. The chase for more is never-ending, but the true measure of wealth is found in relationships, experiences, and the legacy you leave behind. Our protagonist’s story is a reminder that wealth is not just about accumulating riches; it’s about recognizing and appreciating the gains, and understanding that sometimes, the greatest wealth lies not in what you have, but in who you are.

So, as we navigate our own journeys to wealth, let’s remember to celebrate our gains, cherish our relationships, and keep our eyes on what truly matters. Because at the end of the day, it’s not the wealth in our bank accounts that defines us, but the wealth in our hearts.

The Odyssey of Wealth Management: A Human Challenge

In a world where the pursuit of wealth often overshadows the pursuit of wisdom, Homer's *The Odyssey* provides a tale of adventure and return and a profound narrative on stewardship of wealth across generations. Despite his kingly status, Odysseus does not navigate through his epic journey with wealth at the helm but with human resilience, strategic thinking, and the undying quest for identity and belonging. This ancient tale resonates deeply with the modern challenge of wealth management, particularly the challenge of the rising generation.

The Challenge Isn't What You Think

Research and my own observations in the field of wealth management reveal that the core challenge isn't about the money itself. It's not about the complexities of investments, nor is it primarily a legal or logistical conundrum. Instead, it's a deeply human issue. The real challenge lies in overcoming the silence that often envelops family wealth, particularly when it comes to the next generation.

In many wealthy families, there exists an unspoken rule: wealth is to be seen but not discussed. This silence can lead to a lack of understanding, unpreparedness, and sometimes, resentment. Here’s what I've heard in the echo chambers of high net-worth families:

  • "I was never taught how to manage this; it was just handed to me."

  • "There's no talk about expectations, only obligations.I am expected to do an MBA,and work elsewhere for five years, etc. What if I want to be an artist?"

  • "How can I find my own path when this wealth casts such a long shadow?"

Unpacking the Human Challenge

Breaking the Silence: The first step is to foster open communication. Wealth, like any significant family matter, should be discussed with honesty and openness. Ask your wealth manager to invite your family to events they are holding. Go to workshops together. Ask your wealth manager to hold family meetings at their office. These are baby steps to changing the family dynamic. Even informal gatherings where financial literacy and family values are discussed can begin to break down these barriers.

  1. Empowering the Rising Generation: Education is crucial, but not just in the financial sense. The rising generation needs to be educated in the ethos of the family, its legacy, and its responsibilities. This involves:

  2. Creating a Voice: Each member of the rising generation must find their voice within the family's narrative. Easier said than done! This isn't about conformity but about creating a dialogue where each individual can express their vision for the future, their concerns, and their innovations. Don’t wait for the wealth creator to start this.

  3. Mentorship Over Monologue: Instead of a top-down approach to wealth transfer, mentorship from older generations to the younger ones can be transformative. It's about listening, guiding, and adapting to new ideas that the young bring to the table.

  4. Legacy Beyond Wealth: What does the family stand for? How can wealth be a tool for societal good? Engaging in philanthropy or social enterprise can give the rising generation a sense of purpose and a platform to exercise their values.

The Odyssey Lessons

Odysseus's journey back to Ithaca wasn't just about returning home; it was about reclaiming his identity, his leadership, and his place within his family and society. Similarly, the journey of wealth management for families is an odyssey of its own. The rising generation must navigate through personal growth, societal expectations, and the legacy of wealth with courage. Keep a copy of The Odyssey close by to keep on the journey.


In the end, managing family wealth isn't just about numbers on a balance sheet. It's about nurturing the human spirit, ensuring that each generation not only inherits wealth but also the knowledge, values, and voice to use it wisely. Like Odysseus, they must learn to lead, to listen, and to find their way home, not just to a place, but to a purpose.

You Have Choices

It was serendipity that I bumped into the sons of a remarkable entrepreneur I have known for decades. Let’s call him James. He built his company to become a towering giant in the food industry, winning industry awards by the dozen, and had recently retired. James had mentioned his three sons and told me they worked in the family business but that they would go on to do their own thing. As I chatted with them at a Family Office event, it was evident that they were now in control of the wealth created by James. They were young Vikings, tall, confident, and with their father’s strong spirit and twinkling eyes. I was glad to see their confidence in taking over the family office because, for many “Rising Gens”, they do not get to this stage of independence. Rather, they get stuck in their father’s shadow and feel guilty and forced to live a pre-determined life.

Hello, future stewards of wealth! This isn't just another lecture on managing your inheritance; it's a conversation about empowerment, choice, and personal growth. As someone who has observed the dynamics of wealth across generations, I want to share insights that will encourage reflection and perhaps prompt action.

The Illusion of No Choice

One of the most pervasive myths in families of wealth is the notion that choices are predetermined by those who came before you. This can force a life lived under the shadow of expectations, similar to what we've observed in royal families like the British monarchy. Prince Charles, now King Charles III, has lived much of his life under the immense gaze of public and familial expectations, as have his sons, William and Harry.

In your own life, you might feel that your career, lifestyle, or even personal relationships have been influenced or decided by the wealth your family has accumulated. This can breed a sense of helplessness, making you feel like you're merely a custodian of wealth rather than a creator of your own destiny.

The Burden of Expectations

From my own family's experience, I've seen how the weight of expectations can stunt personal growth. I was shocked by some family members who at 40, were still grappling with issues they faced at 20, unable to move forward because they were too focused on living up to the legacy of the wealth creator. In comparison, James had asked his sons to figure out their own lives and how to manage the family wealth. The sons had agreed to do “family wealth” and had been given that choice. They also had made the decision not to be part of the family business but to pass it to professional management.

Inheriting great wealth sounds wonderful. It isn't just about money; it's about identity, self-worth, and autonomy. The real challenge isn't managing the financial assets but overcoming the belief in your capacity to forge your path.

Taking Action: Your Role in Shaping Your Future

Here's where the narrative shifts for you from passive acceptance to active engagement:

Understand the Commonality: Recognize that feeling trapped by wealth is not unique to you. Many in similar positions struggle with similar issues. This understanding can be liberating because it means there's a path forward, trodden by others.

  • Embrace Your Agency: Wealth doesn't dictate your life unless you allow it to. You have the choice to innovate, to start ventures, to invest in what you believe in, or to use your resources for social good.

  • Seek Knowledge and Guidance: Don't wait for the wealth creators in your life to hand you a manual on life. Educate yourself about finance, but also about psychology, leadership, and personal development. Engage with mentors who can guide you beyond just wealth management.

  • Redefine Wealth: Look at wealth not just as money but as an opportunity for impact. How can you use what you have to create something meaningful? Whether it's through philanthropy, environmental initiatives, or cultural contributions, your wealth can be a tool for positive change.

  • Build Your Own Legacy: What do you want to be known for? Not just as an inheritor but as an innovator or a leader managing your own direction, right? This thought should drive your daily actions. Wealth can be both a blessing and a curse, but the real curse is believing you have no control over it. You're not just the next generation of wealth; you're the next generation of thinkers, leaders, and changemakers. By choosing to engage actively with your circumstances, you can transform inherited wealth into a legacy that reflects your values and vision.

So, as you manage your family wealth, reflect on your current path, take action where you see fit, and remember, the greatest wealth you can accumulate is the richness of a life lived by your design, not by default. Here's to your journey in redefining wealth for you. Stay curious and as Steve Jobs said, stay humble.

 

Jacoline Loewen, Board Director, Wealth Management, Author of ‘Money Magnet’






The Millionaire Mindset: Breaking Through Barriers to Wealth

In the quest to become a millionaire, the road is steep and often shrouded in myths about who can make it. The stark reality is that the wealth gap looms large, making the "Canadian Dream" feel like a distant fantasy for many. Yet, the numbers paint a different picture.

““Every day, negative thoughts bombard us. Without filtering them, we adopt a scarcity mindset leading to what I call ‘broke-as-hell decisions.’””
— Quote Source

According to the Credit Suisse Global Wealth Report, while millionaires in America constitute less than 9% of the U.S. population, there were 1.7 million new millionaires minted in the U.S. in 2020 alone. One of my favourite books, that oldie but goldie, Thomas J. Stanley's research in "The Millionaire Next Door" reveals that 80% of these millionaires are self-made, not born into wealth. So, what's the secret sauce?

The first step isn't about financial wizardry or entrepreneurial genius; it's about mindset. After working in Wealth Management for many years, I work with many people who’ve broken through the economic barriers. I've come to see that wealth-building starts with a seismic shift in how you perceive your potential for abundance. It's less about what you do and more about how you think.

I work with many women under 40 who've achieved millionaire status not through inheritance but through sheer willpower and strategic thinking. They tend to stress the importance of challenging limiting beliefs.

The harsh truth is, systemic barriers exist. Many financial systems were not built for everyone to thrive, particularly those from marginalized communities. However, this doesn't mean wealth is unattainable. It requires a conscious effort to rewire your brain for abundance. I advocate for "thought work" - actively choosing empowering thoughts over disempowering ones. This daily practice can lead to what I call "million-dollar decisions" long before you see a million dollars in your bank account.

A common misconception many hold is that money is inherently evil. Shifting to the philosophy that wealth could be a tool for good, enables many of the millionaires I know to support education or something for the community. This revelation can came after years of thinking you have to work in non-profits or religious institutions to make a difference. Money, when used wisely, can amplify your impact in the world.

But here's the kicker: high income isn't the golden ticket to wealth. Wealth accumulation demands intentionality in managing expenses and, crucially, investing. Inflation erodes money's value, so without investment, even a hefty salary can lead to a stagnant financial life. Starting small with investments, even as little as $45 invested automatically each month, can grow significantly over time through compound interest.

Michelle Richburg, another financial guru, stresses that there's no universal blueprint for building wealth. It might be through real estate, stocks, or entrepreneurship. The key? Consistency and a tailored strategy that suits your life, not someone else's.

So, if you dream of being a millionaire, remember this isn't just about making money but about reshaping your mindset to see wealth as a reachable goal. It's about believing in your worth, redefining your relationship with money, and taking actionable steps towards financial freedom.

The journey to becoming a millionaire is not just about the destination but about transforming your life along the way. It’s about creating options, living on your terms, and, perhaps most importantly, proving to yourself that regardless of your starting point, you can indeed shape your financial destiny. Remember, while I can't promise you'll become a millionaire by following these insights, I can assure you they'll enrich your journey towards wealth in ways you might not expect.

From Income to Wealth: A Journey of Financial Enlightenment

On a sunny Sunday morning, nestled near the beach during a family vacation, my father threw me a curveball. "Do you know the difference between wealth and income?" he asked, stirring the calm with a question that would echo through my financial journey.

I, with the naivety of youth, retorted, "Umm, I think income is the money you make at work, and wealth is what you inherit," trying to mask my irritation with the impending adult conversation.

My father, with a knowing smile, corrected me: "Not really. Wealth is what you build with the income you earn. It’s about using the money you have to make more of it."

That lesson didn't sink in immediately. It wasn't until years later, post-grad school, swimming in student loan debt, and barely scraping by in Toronto, that his words hit home. My income was just a drop in the ocean against the rising tide of expenses.

Here's the hard truth: Earning more or saving a little each month isn't the silver bullet for financial freedom. Building wealth is the game. It's about making your money work as hard as you do, if not harder.

The Journey - Watercolour by Jacoline Loewen

The Road to Wealth:

  • Budgeting Like a Pro: I embraced the 50/30/20 rule. Half my income for necessities, 30% for the joys of life, and 20% for my future self. It's not about cutting out fun but about smart allocation.

  • The Emergency Fund: Aiming for an emergency fund that totaled the amount of one year’s pay was the goal. It took longer than anticipated to save my annual income in liquid cash for those unforeseen storms. It was my first piece of my financial plan and it was tough, but the peace of mind it brings? Priceless.

  • Retirement Isn't Just for the Old: I started a retirement fund, understanding that the magic of compounding interest could outpace my savings account by leaps and bounds. It's a long game, but one worth playing. I started in my twenties and am grateful that I did.

  • Diversify, Don't Just Save: I learned the hard way that bank savings lose to inflation. Even GICs do not keep up with inflation. So, I've ventured into funds, stocks, bonds—diversifying my investments to spread the risk and aim for greater returns.

These steps are part of my ongoing education and are available for all to learn.

For Those on the Path:

Books Like "Rich Dad Poor Dad" by Robert Kiyosaki - A classic that challenges conventional wisdom on money.

  • The Automatic Millionaire by David Bach - Simplifies how to make wealth building almost automatic.

  • Your Money or Your Life by Vicki Robin and Joe Dominguez - A transformative look at how we spend our life energy.

Wealth isn't an inheritance; it's an inheritance of knowledge, discipline, and strategic action from your income. It's about turning every dollar into a soldier in your army of financial freedom.

So, let's not just live from paycheck to paycheck; let's create a legacy of wealth, understanding that it's not about how much you earn but how you use what you've got.

Join me in this journey of turning income into wealth, one smart decision at a time. Be in touch!

The Two Skills: Getting Rich vs. Staying Rich

Warren Buffett once spoke to a group of students about the perils of leverage. He referenced the collapse of Long-Term Capital Management, a group of brilliant investors who used excessive debt to juice returns but ultimately went bankrupt. Buffett’s message was simple yet profound: “You only have to get rich once.” Getting rich is one thing, but staying rich? That’s a whole different game.

The skills required to get rich often conflict with those needed to stay rich. The ambition, risk-taking, and confidence that propel you to wealth can clash with the caution, patience, and humility necessary to preserve it. This contradiction makes financial longevity a rare and underappreciated talent.

Muskoka Cottage - Watercolour by Jacoline Loewen

Bill Gates: A Case Study in Survival

In the 1970s, a young Bill Gates took what seemed like an enormous risk, dropping out of college to start Microsoft. But Gates had a safety net: his family’s support and his unrelenting focus on software’s potential. Despite the apparent gamble, Gates wasn’t reckless. He avoided over-leveraging and ensured he could adapt to changing markets. That blend of calculated risk-taking and long-term thinking is why he became one of the wealthiest people in history.

Jesse Livemore: Survival Over Intelligence

Jesse Livermore, one of the greatest stock traders of his era, epitomized the dangers of overconfidence. By 1929, he was worth an inflation-adjusted $100 million, yet he lost it all due to risky bets and lack of restraint. His story underscores what Andy Grove, former CEO of Intel, once said: “Only the paranoid survive.”

Survival isn’t about intelligence or insight—it’s about enduring. It’s about managing risk, preparing for uncertainty, and staying in the game long enough to reap the benefits of compounding. Livemore is a sad case.

The Counterintuitive Math of Compounding

Compounding is like planting an oak tree. The first few years show little progress, but give it decades, and it becomes extraordinary. The longer you stick around, the more compounding works its magic. However, compounding only works if you avoid ruin. Whether it’s excessive leverage, ill-advised investments, or emotional panic during market downturns, anything that forces you out of the game can derail decades of growth.

Lessons from Warren Buffett

Buffett’s success isn’t just about finding great investments; it’s about what he avoided. Over 80 years, he:

  • Steered clear of excessive debt.

  • Didn’t panic during recessions.

  • Avoided fads and stuck to his principles.

  • Preserved his reputation.

These actions allowed him to stay in the game and let compounding work its wonders. His financial longevity is his greatest asset.

Rick Guerin: A Cautionary Tale

Rick Guerin was once part of Buffett’s investing trio with Charlie Munger. Equally brilliant, Guerin’s downfall was impatience. He leveraged heavily and was wiped out during the 1973–74 market crash. Buffett later bought Guerin’s Berkshire Hathaway stock for under $40 a share. The lesson? Even brilliance can’t compensate for poor risk management.

Three Survival Mindsets for Wealth Preservation

  1. Prioritize Resilience Over Returns Instead of chasing the highest returns, focus on being financially unbreakable. Holding cash during a bull market might seem conservative, but it provides the liquidity to avoid desperate, ill-timed decisions during downturns.

  2. Plan for Plans to Fail Financial plans are essential, but reality rarely cooperates. Unexpected events—pandemics, market crashes, or personal emergencies—can derail even the best-laid plans. Build flexibility and redundancy into your strategy.

  3. Longevity Beats Brilliance Compounding doesn’t require extraordinary returns, just steady ones over a long time. The ability to endure—through patience, discipline, and risk management—is the true key to staying rich.

Final Thoughts

In my career, I have been able to observe many different people and their long term success in growing and preserving their capital. Here’s my big takeaway: Getting rich requires skill, ambition, and sometimes a bit of luck. Staying rich demands humility, caution, and the willingness to play the long game. These are two very different skill sets.

As Buffett’s career shows, the real secret to wealth is survival. Those who endure, adapt, and avoid catastrophic mistakes are the ones who turn fleeting riches into enduring prosperity.

Family and Wealth - How great families inspire everyone to live their best lives

Successful entrepreneurs know that their wealth will impact on their lives. They think deeply about their money, and its impact on their children, their loved ones, their philanthropy, and their legacy. What they really worry about is their family and their next generation. The most asked questions are, “How do I effectively pass the money to them? How do I create some prudence around the wealth management? How do I provide them with an education about wealth and responsibility?” “How do I get them to feel gratitude?”

Building Wealth together as a Family.

Business Owners earned money through hard work and now want to enjoy the fruit of their labour.

They also want their family to enjoy the fruits of their hard work. Entrepreneurs want their children and grandchildren to grow up with confidence, integrity, and strong values. In addition, founders want their families to understand the impact money can have on the community and others who are less fortunate and, finally, to keep their families and siblings close together.

To begin, the number one question is “Why do wealth as a family?” From this starting point, the meaning and purpose of family wealth will develop the values that drive the individuals, their families, and the estate planning. Family and Wealth shares how other families prepare heirs in at least four ways—education, engagement, experience and gratitude.

There are stories from entrepreneurs who have made the choice to do wealth as a family, and their best practices. They have managed to pass on wealth that expands the next generation’s lives, rather than the shadow side of subsidizing and potentially warping them.

The ultimate goal is to discover that the word wealth has a meaning that is far broader than material wealth, and it is these other areas that endow confidence, strength, and knowledge. The great families inspire everyone to live their best lives

The biggest challenge for a private company board

The People Factor: The Biggest Challenge for SME Boards In the world of small and medium enterprises (SMEs), the most significant issues often boil down to one thing: people. Imagine a business run by five individuals, with a board overseeing their efforts. Now, picture two of those board members who simply shouldn't be there. This scenario is more common than you might think, and it underscores the critical need for retooling both the management team and the board itself.

Private Equity's People Problem Private equity firms consistently find that their biggest challenge is people. Recruiting the right board directors is paramount. It's not just about filling seats; it's about getting crystal clear on the specific skills and attributes needed for each board. A thorough skills assessment is essential, diving deep into the granular details to ensure the right fit for the board's unique needs.

The Perils of a "Gotcha" Attitude One of the most detrimental attitudes a board can adopt is a "Gotcha" mentality, where the primary goal seems to be catching the CEO and management team off guard. This approach is counterproductive and shocking, considering that the board's role is to support and motivate the management team. Boards must remember that they are there to help, not hinder.

Fiduciary vs. Advisory: Clarifying Roles Is your board fiduciary or advisory? This distinction is crucial. Everyone around the table must have clear expectations. Without alignment, the board and the company are destined to go nowhere. Understanding the voice of the shareholder is also vital. What do the shareholders expect? This clarity can guide the board's actions and decisions.

The Importance of a Board Charter Every board should have a charter. This document outlines the role of the board, helping to define its mandate. When new directors come on board, the charter serves as a valuable reference, detailing the terms of reference and the time commitment required. It ensures that everyone is on the same page from the start.

Independent Shareholders: A Valuable Asset The size of the board matters, and independent shareholders are becoming increasingly useful. Unlike shareholders with a vested interest, independent shareholders don't have skin in the game, which can help keep the board out of trouble. Their impartial perspective is invaluable.

Committees: Do You Need Them? Committees can be beneficial, but they should be used judiciously. Ad hoc committees can address short-term projects effectively. However, without a clear board charter, even the best people can't contribute at their highest level. Structure and process are essential.

The Need for Structure People need structure to thrive. An annual calendar with key meetings scheduled in advance is crucial. Board materials should be prepared thoughtfully. Sending out 200 slides 24 hours before a meeting is a waste of time and does not allow for meaningful discussion.

In conclusion, the success of SME boards hinges on the people involved and the structures in place to support them. By focusing on the right people, clear roles, and effective processes, boards can truly make a difference in the trajectory of their companies. Remember, it's all about people, process, and purpose.

Why Every Entrepreneur Needs a Financial Advisor

Entrepreneurs, let's face it: your business is your baby, but putting all your financial eggs in one basket? That's like betting your life savings on a game of Monopoly. Don't be a one-trick pony. A financial advisor can help you spread your wealth across stocks, bonds, real estate, and maybe even another business venture. Think of it as not just protecting your wealth but also giving it room to breathe and grow.

Master Cash Flow Management: Cash flow for entrepreneurs can be as unpredictable as the weather in April. Know where your money is going. A financial advisor equips you with the tools to forecast, budget, and sometimes, just hold on tight. They'll help you secure lines of credit when the sun is shining.

Prioritize Retirement Planning: Retirement? What's that? For many entrepreneurs, it's a distant dream. But many entrepreneurs are saving zip for retirement. A financial advisor can turn this dream into a reality with strategies like Cash Balance Plans or leveraging life insurance for tax benefits. It's like planting a tree today for the shade you'll enjoy tomorrow.

Develop a Succession Plan: "What happens when you're not around?" Whether it's selling, passing the torch, or dissolving, a succession plan is your business's exit strategy. A financial advisor helps you navigate this complex terrain, ensuring your legacy continues or your assets are distributed as you wish, not as the tax man wishes.

Protect Your Assets: Entrepreneurs, you're not just playing the game; you're the game. Legal risks are part of the territory. You know the importance of asset protection. A financial advisor can set up structures to shield your wealth from business liabilities, ensuring that if your business takes a hit, your personal life doesn't follow suit.

Conclusion: Wealth management for entrepreneurs isn't just about making money; it's about keeping it, growing it, and ensuring it lasts. With a financial advisor, you're not just planning for today; you're securing your financial future. Remember, in the marathon of wealth-building, having a guide who knows the terrain can make all the difference. So, let's not just dream of wealth; let's strategically plan for it. #Entrepreneurship #FinancialPlanning #WealthManagement

Retirement planning often takes a backseat for entrepreneurs

Many people start a business with dreams of getting rich – which is not necessarily unrealistic. Roughly 88% of millionaires are self-made, meaning they did not inherit their wealth, but instead earned it through entrepreneurship or other means, according to research from Fidelity Investments. But getting wealthy does not happen overnight, especially for entrepreneurs known for their risk-taking ability and innovative mindset.

Wealth management for entrepreneurs involves a comprehensive approach to handling personal and business finances, focusing on growing, protecting, and efficiently utilizing the wealth generated through entrepreneurial ventures. It differs from traditional wealth management due to the unique challenges and opportunities entrepreneurs face.

“Research suggests that financial literacy gaps impact wealth, and individuals who actively engage in comprehensive financial planning tend to achieve better long-term financial outcomes compared to those who do not,” says Charmaine Green-Forde, Founder and CEO of Chapter Too, an organizational and leadership development company.

Let’s look at five strategies entrepreneurs can use to build and manage their wealth so they can achieve their goals.

1. Diversify Beyond the Business

“Entrepreneurs often have most or all of their wealth tied up in their businesses. While reinvesting in your business can be a powerful growth strategy, it's equally important to avoid having all your financial eggs in one basket,” explains Todd M. Villarrubia, founding partner of Wealth Planning Law Group. You never know when something out of your control, like a global pandemic, can completely disrupt your business plans, jeopardizing everything you have worked so hard for.

“To mitigate risk it’s important to invest in a diverse portfolio that includes stocks, bonds, real estate, and possibly other businesses so that they are roughly equally weighted. This not only protects your overall financial health from the volatility of your business sector but also ensures steady growth through other channels,” says Villarrubia.

2. Cash Flow Management

“If you want to build and effectively manage wealth, the first and most important step is to gain full awareness of your financial position. This involves assessing your assets, liabilities, income, and expenses — including potential inheritances,” says Green-Forde.

“Entrepreneurs often face the challenge of managing irregular and unpredictable income streams. Understanding how to manage cash flow is vital to ensure that an entrepreneur’s business and personal finances remain stable and can support growth,” says Villarrubia. “Implement robust cash flow management strategies. Start by maintaining a clear separation between personal and business finances, establishing an emergency fund to cover fluctuations in income, and using forecasting tools to plan for future cash needs. Regularly monitor and adjust budgets based on business performance and personal financial goals.”

Looking ahead and planning is crucial. “Apply for a line of credit or a loan when you don't need it. The chances are, your numbers look a lot better when you are not in need of those. This means you will likely get a better deal, such as more funds or lower interest. Having access to these can bring peace of mind. Also it helps build business credit. Debts can be viewed as a negative thing, but in business, it can be neutral and used as a tool,” adds Maiko Sakai, Founder of Airtight Concepts Inc., a business strategy firm for small businesses.

3. Retirement Planning

Over one-third of entrepreneurs lack retirement savings, according to a report from SCORE. Without adequate planning, entrepreneurs can find themselves needing to work long past retirement age instead of living out their retirement dreams.

“While building and running a business, retirement planning often takes a backseat for entrepreneurs. However, unlike traditional employees, entrepreneurs don't have the benefit of employer-sponsored retirement plans. It’s important to treat yourself like an employee, even though you’re running a business. Work with a professional to create a retirement plan that will secure your future,” says Villarrubia. Entrepreneurs and business owners often seek guidance from CPAs, attorneys, and financial advisors, who might not always be fully versed in the nuanced, advanced planning strategies that can significantly impact long-term financial success.

4. Succession Planning

Every entrepreneur will eventually face the question of what happens to their business when they retire, become unable to run the business, or pass away. “The time to plan for the future of your business is now. Take the time to develop a clear succession plan that defines what will happen when you need to step away from the business permanently. This might involve grooming a successor, setting up a buy-sell agreement, or planning for the sale of the business. Ensure that this plan is legally sound and aligns with your personal wealth management goals,” says Villarrubia.

Estate planning is part of succession planning. “For entrepreneurs, estate planning is not just about deciding who will take over the business. It encompasses a broader strategy to ensure that all business and personal assets are distributed according to the entrepreneur’s wishes upon their death. This process involves legal documentation such as wills and trusts, which dictate the distribution of assets and can help minimize taxes and legal hurdles for heirs,” he adds.

5. Asset Protection

“Entrepreneurs are often more exposed to legal risks than regular employees. Lawsuits, business debts, and other liabilities can threaten personal assets. Use tools to protect personal assets from business liabilities. It’s crucial to separate personal and business finances and to have adequate insurance in place,” says Villarrubia.

Wealth management for entrepreneurs is not just about growing wealth but also about protecting it, ensuring its longevity, and aligning it with personal financial goals. These strategies require a balance of financial acumen, foresight, and the willingness to seek professional advice when necessary. Effective wealth management is a continuous process, requiring entrepreneurs to continually adapt.

Family Business Lawyers Go Beyond the Law

Special to THE GLOBE AND MAIL

David Simpson knows all too well the tough battles that need to be fought to successfully transition a family business. He has worked with many of Canada's leading family businesses and he has worked in one himself, with his brother. He now teaches the next generation of entrepreneurs at the Richard Ivey School of Business MBA program in London, Ont.

He also knows the important role played by lawyers.

"When talking about transition success, your long-time lawyer may not let you in on a little secret," says the founder of the Ivey Business Families Centre. "The lawyer may not ask if you realize that the legal documentation of your transition or success strategy is the easiest part of the succession process."

Is Mr. Simpson implying that family business lawyers have it easy? Not at all.

A family firm lawyer will know the law, but a good lawyer will also get to know the family very intimately and how the members interact. This close and frequently personal relationship brings its own set of challenges, often requiring a lawyer to step outside of the legal box. The lawyer is like a ring master, advising the owner on when to call in experts to deal with various non-legal family issues encountered when running a business and balancing the long-term succession planning.

"The toughest part of transition is asking three key questions, which have nothing to do with the law or the business itself, but they will challenge every family business," Mr. Simpson says.

His questions are as follows:

·       Does your family speak the same language? A successful transition requires a common frame of reference, and even the simplest everyday terms such as “soon” – as in we’ll meet soon on that – or “long term” can mean different things to each family member. A daughter might ask to run a philanthropy event, but when the founder says ‘we can do it later,’ it means next year. Meanwhile, the daughter thinks her father means next month and conflict arises. It is critically important to meet together as a family to work out common frames of reference to avoid misinterpretations within the family, which can then spill over and confuse staff, customers and other stakeholders.

·       Are the children dependent on the business? While children are growing up, they are dependent on their parents. When the business relationship is added to the family dynamic, it can be emotionally difficult for adult children. They have to be at peace with working for a parent while competing with their parents’ legacy goals for the other “baby” in the family: the family business. Children need to realize that their livelihood may not come from the family business if their skills are not a good fit with the requirements of the industry. Author and family business adviser David Bork said it best: “The purpose of family is to raise responsible adults, who have high self-esteem and can function independently in the world – acceptance is unconditional.” Now compare that unconditional love with Mr. Bork’s description of the uncompromising world of business: “The purpose of business is to generate profits! Acceptance is based on skills, competence, the ability to produce and perform.”

·       Have you discussed personal goals within the family? It is critical for the leader who is passing the torch to not snare the next generation in a trap. There can often be a conflict between the founder and his vision of how the legacy will continue and the next generation’s goals. For example, the younger generation might want to move marketing efforts online and use Google Adwords, Facebook and Twitter. The founder says, “What’s this Facebook – it’s for teenagers?” or “I don’t want to tweet or do TikTok,” and puts a kibosh on the plan. To pass the torch to a new generation, a founder needs to grant full freedom. Great families honour the founding entrepreneurs and understand stewardship of family assets, but they are also mindful that success lies in allowing the next generation to remain entrepreneurs. This means providing the new leadership with the fullest autonomy to take the business in new directions.

Building True Wealth Across Generations: Avoiding Three Pitfalls

Family business succession is not just about transferring assets and ownership, it’s about values and vision.

Every successful family business starts with a founder who pursued a dream, overcame challenges, got smarter, maybe a little lucky, and created wealth. But what happens when the founder is no longer around? How can the next generation build true wealth beyond money?

Jeff Noble, a family business expert with BDO, shares three stories illustrating three common pitfalls in family business success: lack of self-awareness, inadequate support for the next generation’s decisions, and getting stuck in the founder’s legacy.

Story #1: The Janitor's Dream

Irwin was a janitor who took courses after his work hours and became a licensed electrician. In a few short years, he started an electrical contracting company. His children, twin daughters and a son, did not have to work hard and struggle like their father. They grew up in a comfortable and affluent environment and never developed their own identity and passion. When it was their turn to take over, they felt pressured to follow in their father's footsteps, but they lacked the same vision or skills. The sisters were married with children of their own, and their brother was an avowed bachelor.  Instead of pursuing their own lives, they unsuccessfully tried to replicate their father's success. Irwin had no idea that by gifting them the business, he would crush his family.

Jeff says that this is a common scenario in many family businesses. The founder’s dream often traps the next generation in the same business. To break free, they need to discover their own purpose and discuss it with their family, finding a meaningful role in the business or pursuing their own path with support.

Story #2: The Successor's Challenge

Ian, a second-generation business owner, told his daughter Susan on her first day as CEO that her number-one responsibility was to find a successor. Ian knew the business needed to grow beyond his and Susan’s skills and had a succession plan that was not restricted to family. Susan knew she was not the ultimate owner of the business, but a steward of it. Without her father’s years of mentorship, Susan may not have had the confidence to adapt to the changing market conditions. Seeing that competitors were gaining ground and realizing her own limitations, she decided to sell the business, believing that was the best option for the family’s wealth.

Jeff says that Ian understood behaviour, and he prioritized letting his daughter exercise self-judgement. Ian and Susan understood that money was not the only measure of wealth and valued the quality of their relationships. 

Story #3: The Inherited Portfolio

Siblings Gordon and Liz inherited a portfolio from their father and chose to keep it unchanged out of respect and because they thought it was performing “well enough.”

Jeff says the portfolio was no longer Gordon and Liz’s father's legacy. It was one of the tools to steward and grow wealth. If the father were still alive, he would encourage his kids to adapt the portfolio to achieve their own goals and dreams, and those of their children.

Hear Your Next Generation’s Voices

Three stories show us that family business succession is not just about transferring assets and ownership, it’s about values and vision. The older generation can encourage their children to find their own purpose, even outside the family business.

Too often, the voices of the next generation are stifled by legacy, expectations, and fears. Successful wealth transfer requires a shared vision and collaboration with the next generation.

Get in touch: Jacoline Loewen - Burgundy Asset Management Ltd.

Technology Companies benefit from Board Governance

On May 2nd, I'll be hosting an ICD fireside chat at Gowling WLG in Waterloo with Barb Stymiest, known for her roles on the RIM board, CEO of the TMX and on the Forbes list of World's Top 100 Most Powerful Women. Founders of Technology firms will hear directly from Barb, about her views on the use of boards for technology companies. She will discuss the recent ChatGPT board governance flare-up and its implications for tech leaders, investors, VCs, and PEs.

Barb will share her corporate governance insights from the TMX/ICD report which she authored. Technology Founders and VCs, PEs, will gain insights on board formation and governance to help scale their companies and why it is so powerful in preparing a company for the stock exchange.

Reserve your spot for a conversation that could shape your company's future.
Register here: https://lnkd.in/ggycBCDy

Elevate Your Financial Wisdom with “Wall Street Vision” podcast.

Elevate Your Financial Wisdom with “Wall Street Vision” podcast.

Reshape the way you think about wealth. Wall Street Vision’s podcast interview with Ted Oakley, Oxbow Advisers, is an absolute game-changer for business owners.

Here are my top three takeaways:

1.      Know the Difference Between Inheritance and Business Sales: As Ted Oakley asserts, inheritance sales and business sales represent separate categories. Rather than approach them as one, the investment advisor needs to understand the varied emotional motivations guiding each group of clients. Understanding these diverse mindsets is key to providing tailored financial advice.

Ted digs into the mindset of post-sale business owners. Accustomed to winning, they often assume their prowess in one domain translates to expertise in everything. However, transitioning from managing a single asset to a diversified portfolio of many assets can be challenging. Many entrepreneurs find themselves investing in schemes with family and buddies, and so on, rather than adopting a wealth-preservation strategy (boring, but predictable). On the other hand, inheritors of wealth must navigate a delicate balance, oscillating between financial conservatism and extravagant spending.

New York City Winter - Watercolour Sketch, 8x10, by Jacoline Loewen

2.      Emotional Mastery Unveiled: In the crucible of financial storms like the COVID-19 crisis, seasoned investors recognize the impact of emotions on decision-making. We know Warren Buffett’s advice – buy when everyone is fearful – but rarely do we act on what seems contrarian at the time. People tend to go on a bit of a spending spree after inheriting wealth or selling a business; however, as Ted points out, this often doesn't lead to happiness. Ted says that one of the best books he has read in the last couple of years to counteract overspending is Michael Singer’s Living Untethered.

3.      Diversification Wisdom: Ted advocates not just for beating the market but preserving your hard-earned capital through diversification. It's not just about winning; it's about smart, calculated plays that safeguard your financial stronghold.

4.      Cash Flow Reigns Supreme: Ted's investment strategy is anchored in companies boasting predictable cash flows and robust business models. In the dynamic world of investments, cash flow is the bedrock of sustainable success. Beyond the thrill of the trade, it's the steady rhythm of cash that paves the way for enduring prosperity.

Check out the full podcast by Wall Street Vision with Ted Oakley for a deep dive into preserving wealth, conquering challenging markets, and making informed investment decisions.

#InvestingWisdom #FinancialStrategies #WallStreetVision #TedOakley #WealthManagement