Planning for Business Owners

Planning

Some possible recommendations for this situation (depending on their personal circumstances) may include:

• A financial plan will help Tyler and Lauren determine how much longer they need to work, how much money they can spend, and are they missing any opportunities. We can run through different scenarios to see which has the best outcome for their situation including evaluating different business exit valuations.
• Reviewing potential tax-saving strategies for Tyler & Lauren, including are they using the right business structure (S-Corp, C-Corp, LLC, etc.), maximizing their Qualified Business Income (QBI) deduction, and selecting the right retirement account(s) (e.g. 401k, SEP IRA, Simple IRA, etc.) for tax efficiency.
• When evaluating whether to sell their business determining the appropriate exit valuation to help them reach their goals.
• To maximize long-term investment returns, implement a disciplined investment strategy across all their accounts including how much risk to take, what holdings to own, tax efficiency, and ongoing monitoring for opportunistic rebalancing.
• Review estate documents to determine whether they are set up correctly.  Evaluate whether a trust is needed and if more advanced estate planning strategies are necessary to minimize future estate taxes.
• To pay for college for their children, Tyler and Lauren can invest in a 529 account (here’s a list of 7 ways that you can use a 529 account) or other options. In addition to investing in a 529 for their children, they may be eligible for a complicated tax strategy where they’d gift appreciated stock to them.
• Reviewing their amount of life, disability, and umbrella insurance to confirm they have enough given their unique situation.

Implementation and Monitoring

Save time by utilizing our Wealth Management service to make sure everything gets done, avoid missed opportunities or big mistakes.  Additional benefits of this service include:

• Reviewing the financial plan regularly to provide peace of mind that you are ok.
• Ongoing monitoring of your investment, cash flow, and estate situation for opportunities.
• Assistance setting up a 401(k) or another retirement plan for the business.
• Annual tax planning to maximize tax efficiency.
• Click here to get additional details regarding the different small business retirement plan options including eligibility, contribution limits, timing, etc.