Dave: Hey everybody, thank you for joining the Philly Tech Entrepreneurs podcast. My name is Dave, I’m your host, and today I’m talking with Eric, a very engaged member of our community and the principal wealth manager at Savvy Wealth. Eric brings over 12 years of ultra-high net worth family investment management experience to Savvy. He lives in Media with his wife, young son, and rescue dog, and he’s quite the golf addict and fitness enthusiast. Eric, we’re happy to have you here to discuss personal finance, risk management, and entrepreneurship. How are you doing today?
Eric: Doing great, glad to be here. How about yourself?
Dave: Excited about this new podcast, featuring members and learning from their expertise. Eric, you’ve been in the Philly area ever since attending St. Joe’s, after growing up outside of New York City. Though Philly wasn’t initially high on your list, you’ve grown to love it, having lived in Center City before moving to Media to raise your family. It seems many share the experience of growing to love Philly after arriving.
Eric: Absolutely, Philly has become a place I truly appreciate, especially for raising a family.
Dave: Let’s dive into everyone’s favorite topic: money. Entrepreneurs are known for their ability to make and invest money but not necessarily for managing their personal finances. Can you share your insights on personal finance for entrepreneurs and your experience working with business owners?
Eric: My background includes working with successful business owners, often involved in selling businesses or investing in new ventures. Entrepreneurs are creative and visionary, but this can lead to challenges in managing personal finances. They might get excited about new business ideas, leading to investments that can become overwhelming without a top-down view of their finances. Managing investments, cash flow, taxes, and family relationships are crucial for long-term success, yet many entrepreneurs find these tasks daunting. It’s important to find partners who can help navigate these aspects.
Dave: For those earlier in their entrepreneurial journey, what foundational habits or practices do you recommend?
Eric: Understanding your cash flow is critical. Many struggle with managing various accounts and credit cards, but technology can help organize and track expenses. Knowing your annual spending is valuable, not just for personal planning but also for assessing risk tolerance when starting a business. Being mindful of spending allows entrepreneurs to focus on their big ideas.
Dave: Technology plays a big role in managing finances. Are there any tools you recommend?
Eric: I’ve used Mint and other advisor-specific tools like e-money, which impresses with its ability to pull in various account types. It’s important to find a tool that can consolidate all your financial information. Tools like Personal Capital (now Empower) can be very helpful for managing cash flow and tracking expenses.
Dave: Risk tolerance and risk management are key concepts. How do these affect decision-making in finance?
Eric: Entrepreneurs generally have a high willingness to take risks, given their readiness to start businesses and forego steady income. It’s important to consider both your willingness to take risks and your actual capacity for risk, which ties back to understanding your cash flow and how long you can sustain your business idea. Thoughtfully assessing risk tolerance can give you the confidence to pursue your entrepreneurial goals.
Dave: How often should people review their financial situation?
Eric: Major life changes warrant a closer look at your finances, but generally, reviewing your financial situation annually or as you’re preparing for significant business decisions is advisable.
Dave: When is the right time for someone to consider working with a wealth manager, and what are the benefits?
Eric: The decision to work with a wealth manager isn’t just for those with extensive wealth; it’s also about making informed decisions across various aspects of personal finance, from cash flow management to business structuring and estate planning. A wealth manager can provide personalized advice, helping navigate emotional decisions and ensuring your financial actions align with your life goals.
Dave: It seems like opening up about finances, even within families, can be challenging. How do you approach this with your clients?
Eric: It’s true; discussing money is often considered taboo. As advisors, we aim to facilitate these conversations, helping clients involve their families in financial planning and decisions. It’s about breaking down barriers and making informed choices together.
Dave: For anyone interested in reaching out, how can they get in touch with you?
Eric: I’m reachable via email at eric.yost@savvyadvisors.com, and I’ll be active in all the meetups and our Slack community over the coming months.
Dave: Thanks so much for joining us today, Eric. It’s been great having you.
Eric: The pleasure is mine. Thank you for having me.