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» Building a successful business is often a study in intentional tunnel vision. Your firm demands an extraordinary investment and focus of your time, attention and resources. You, and perhaps your family, have made sacrifices to your personal life. Earnings are often reinvested and ultimately your business equity becomes the dominant asset on your personal balance sheet. All during this process, perhaps over the course of an entire career, you justify the risk of such a concentrated life focus and financial position with the mantra:
“One day, it will be worth it”
» The Problem While this is accepted wisdom, it makes the assumption that one day you will be able to extract your business equity in an efficient manner. Perhaps you also intend to create the legacy of a family business and transfer ownership to children. Given the complexity of our tax and legal structure, the task is challenging.
Additionally, business planning is not an isolated event, separate from the rest of your personal financial plan. A good solution impacts all aspects of your financial life while integrating the often conflicting interests of business co owners or successors, heirs involved in your firm, heirs that are not, key employees, clients, creditors and charitable beneficiaries.
Lastly, the rules change often. Today’s plan can quickly become obsolete.
» Our Proposal Create a business continuation/exit strategy as part of your comprehensive financial plan. Enlist the services of a financial planning firm with specific expertise and experience in this area; someone who can work collaboratively with your tax and legal advisors.
Good financial planning encompasses both an optimal strategy for the best case scenario as well as contingency plans for the unpleasant or unintended events that may happen along life’s way. Good financial planning is a process, not a singular event. Begin the process early and know that it will evolve over time as your circumstances and the regulatory environment change.
» Mahoney/Frontier Financial Group has the specific experience and the resources to assist you and your professional advisors in designing a comprehensive financial plan, implementing the plan efficiently and managing your plan over time systematically.
Click here for a more detailed description of our business owner wealth management system
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