Balanced Money | Balanced Life
As a small business owner myself, I know the demands placed on you are enormous. All too often important, but not seemingly urgent, matters get put to the wayside as you focus front and center on the business. You know how to make money and will get to everything else when it either boils over or things slow down.
If only you had more time
You have both family and business challenges that need to be addressed but require you to take time and attention away from your day. You know you may have dozens of financial, tax, and legal strategies available but don’t have time to understand which ones are a fit for your situation.
How do you weed through complex concepts and make good decisions on what may or may not be a good solution for the problems you face. You may have implemented a couple but not sure if they are providing the value you had hoped for or may even be working at cross-purposes to each other.
Your Family CFO
I will help you get your financial house in order. I will take time on the front end to make sure I understand your values, goals and priorities. I then work with your team behind the scenes to collectively consider the options available to us. We will start by addressing the 7 Financial Risks and addressing any family needs. Once all ideas are cross-vetted by your inner circle and agreed to we will provide you will a list of recommended action steps and help you on an implementation schedule.
A consistent issue I learned over the years is that business owners are often given conflicting advice from accountants, attorneys, financial advisors and insurance experts. Each one is speaking from their point of view. No strategy is perfect and someone is not going to like it. By engagement through a collective understanding of your values, goals, and priorities and by working together we can pull together a plan is in your best interest and considers all of the variables.
Access my Network
I’ve spent a career focused on putting together client needs with appropriate strategies. As appropriate I may not be the provider but rather the general contractor who subs out the solution set. I vet the providers, manage the projects and communicate progress reports regularly to my clients. I work with both local and at times nationally recognized implementation experts for addressing advanced techniques. Before any work is done, all costs, potential benefits and conflicts of interest are addressed up front.
Regardless of where you are in the life cycle of your business, it’s never too early to start planning. In fact, the earlier you start, the more innovative options we’re likely to discover to help you maximize your business value and get where you want to go.
John owns 3 different businesses and knows how to create wealth. He is 63 is looking to sell 2 of the businesses and retain controlling interest in the 3rd. He came to Sarasota to buy a second home and start the process of becoming a Florida resident and slowly transition into his “Semi-retirement”. I met John initially as I helped finance his Sarasota home.
In review of John’s documents for credit purposes it became apparent that while he was great at making money it was very difficult to ascertain where it all went. He had multiple commercial properties, a private jet, and an enviable lifestyle. He had a smattering of financial products but all held in ways that contributed to more of a tax problem than a solution. In speaking with John he admitted he did not have time or the inclination to focus on his personal wealth and was focused solely on the business.
John, Mary and I met to discuss their plans in light of a 3 year transition to Florida residency. We discussed their values and goals and determined a course of action to leverage and restructure their balance sheet in light of the new objectives. John gave me access to his assistant, CPA and Attorney to stress test some strategies and come back with a plan.
Collectively -with John & Mary’s stated values and goals as our guide- we went through a fact pattern analysis that revealed several strategies for reducing the tax impact of the business sales, and moving much of the equity out of John & Mary’s estate while leaving them with control. We provided detailed ideas on increasing cash flow, reducing liability, and estate techniques. We then presented a solution with options to John & Mary to consider.
John and Mary approved the plan with greater clarity about why this was in their interest and confidence that it had been cross-vetted across tax, legal and financial specialties. We refinanced the properties increasing cash flow and minimizing liability. We restructured his insurance to reduce premiums, provide liquidity to Mary and keep the proceeds out of the estate. We created a tax-deferred vehicle for maximizing his annual contributions and reducing his income tax burden.
We now review the plan every four months to track progress towards goals, enhance protection, and ensure we address any new goals or event driven needs. There is a plan for how to handle future proceeds from business sales. John and Mary are comfortable that they can do what they love and feel confident that everything else is being managed and accounted for.
Paul is a small business owner that has great income that is tied to a 7 year contract. He is 60 years old and concerned about the future of his industry and his ability to continue to live his lifestyle. Paul would like to take advantage of strategies to shelter income tax and save for future purposes.
After a good dialogue around goals it was apparent that Paul doesn’t see himself retiring in a classical sense. He is very talented and has the ability to reinvent himself as necessary. Paul is divorced and single. He does not want to be a burden on his children and has taken care of all family obligations through both gifts and life insurance and for the most part only needs to take care of himself. He has assets tied up in various real estate properties and some valuable equipment from a business venture he has for sale.
After gathering an employee census and working with his CFO and CPA we were able to pair a defined benefit plan with his existing 401-k. We further implemented some non-qualified planning to give him additional savings and to incent loyalty in his key personal. The combined plan provided a better safety net for 7 years out and allows him to focus more on the next phase knowing his management is taking care of the current operations.
We addressed more personal issues such as providing advice around long-term care and utilizing his current insurance to provide a tax free exchange into a hybrid long-term care life policy.