Financial Planning for Business Owners

Business owners face unique challenges—and opportunities—in terms of financial planning. You’ve worked hard to develop your ideas into a successful business, or perhaps you’re considering moving into self-employment. Regardless of your situation, choose a financial planning strategy that takes advantage of your unique situation.

Business Succession Planning

You worked hard to develop a business, and now is time to enjoy the results. Many entrepreneurs spend years of focused effort building up a business, but then fail to consider how to make the transition to retirement. A financial security advisor can offer expert advice in how to plan an effective business succession strategy.

Key Employee

One of the more devastating events a small business can suffer is the loss of a key employee.  Often times it’s a key employee who brings a special talent to the business and is responsible for much of the success of the business owner.  The loss of such a valuable asset could set the business back for a period of time, and at tremendous cost, while the business owner seeks to find a replacement, if one can be found at all. 

Employer-Sponsored Qualified Plans

Most employer-sponsored plans today are established as “defined contribution” plans whereby an employee contributes a percentage of his earnings into an account that will accumulate until retirement.  As a qualified plan, the contributions are deductible from the employee’s current income. The amount of income received at retirement is based on the total amount of contributions, the returns earned, and the employee’s retirement time horizon.  As in all qualified plans, withdrawals made prior to age 59 ½ may be subject to a penalty of 10% on top of ordinary taxes that are due.

Depending on the size and type of the organization, we can provide solutions that include options between a 401(k) Plan, a Simplified Employee Pension Plan or, in the case of a non-profit organization, a 403(b) plan.

Deferred Compensation

A non-qualified deferred compensation plan is an arrangement between an employer and a key employee whereby the employer agrees to pay additional compensation for a specified period of time in exchange for the continued service of the employee. 

Business Owner's Estate Planning

As if business owners didn’t have enough to contend in managing their business and personal finances, there is one particular aspect of their financial lives that is often neglected until it’s too late, and that is the management of their estate. Yet, it is the one area of their financial picture that, if not thoroughly planned and managed, could have the most devastating consequences for their family and their business.