If you are building it inside your business, how will you convert it to cash? There are only three things you can do with your business — sell it, retain it for the family (assuming there is someone who is willing and able to run it), or liquidate it. If your choice is to sell it, who will buy it? Partners, key employees, or competitors? Under some circumstances, the business can actually buy itself. Maybe you are grooming an heir apparent. Do you have the proper planning in place to make sure there is a smooth transition when the time comes?
Asset Protection Planning: Does Your Estate and Business Planning Provide Asset Protection?
Unless your estate planning is current, the answer may be "no". Are your Will documents up-to-date? Do they reflect the value of your assets as well as your desires? Do your business and personal legal documents protect your assets from creditors, bankruptcy, unnecessary taxation, and divorce? What about the same questions relating to your children? Unfortunately, most planning is done in a vacuum, resulting in a lack of coordination, which leaves gaps that can produce substantial financial loss. If your documents are three years old or older, a check-up is in order.
Retirement Planning
We all know the sooner you start planning for retirement the better off you are. The key is to start regardless of where you are. There are several ways that you can begin "catching up" in funding your retirement. 401(k) retirement plans allow individuals over 50 to make additional contributions over and above prior plan limits. Defined benefit plans (412(i)) allow you to fund substantial retirement benefits if you qualify. Various executive benefit plans can assist you in saving more money for retirement.
Annual Worming
My vet sends me notices to bring my animals in for their annual check-ups. Unfortunately, your advisors may not be sending you notices to come in for annual reviews. It would be to your advantage to have an objective financial and business planning update. It's not as bad as worm medicine, but it could eliminate some wiggly problems in the future.
About the Author
Tom Fowler is the president of Bellevue, WA-based Fowler Financial Group with more than 30 years of experience assisting individuals and owners of closely held and family-owned businesses in estate and business planning, as well as retirement and financial planning. See more on Tom at www.fowlerfinancial.com.
The Fowler Financial Group
Your Business Strategy Experts
365 118th Avenue SE, Suite 200
Bellevue, WA 98005
Phone: 425-453-1585
Fax: 425-451-2687
Email: tfowler@isimail.com
Toll Free 800-999-5300
