Business owners collaborate with financial professionals to safeguard their wealth, minimize tax liabilities, and expand their assets. Depending on your income, expenses, goals, and liabilities, these specialists can help you create a personalized financial plan. Here are some different types of financial planning services for business owners:
Investment Management
Financial planning services can recommend suitable areas of investment to enhance your holdings, putting your money to good use. Advisors conduct market research to determine which investments carry higher risks and those that have a greater chance of growing your money. To help support your retirement, specialists evaluate how much access you’ll need to your money to decide whether your investments should be easily available or kept for the long term. These professionals also suggest areas to invest in, including private equity, hedge funds, real estate, and private credit. To strengthen your portfolio, some planners adjust your investment whether you’re making a huge purchase or preparing for a business exit.
Tax Planning
A financial advisor helps you plan tax strategies to minimize liabilities and comply with tax laws. To reduce or eliminate estate and gift taxes, planners may suggest giving gifts under the annual exemption limit. These experts also advise business owners to use trusts because they reduce estate taxes and control how assets are distributed. They also may advise you in setting up family limited partnerships that allow you to transfer wealth at a discount. If you have complicated annual taxes to file, professionals can assist you in this entire process to benefit from various deductions.
Business Succession Planning
Whether you’re selling, retiring, or transferring business ownership, you need a reliable strategy. A financial planner discusses different exit options, such as merging with another company, going public, or passing responsibilities specific to employees or family members. Before the process begins, these experts work with you to set a realistic sale price based on how valuable your company is. They also get accurate business valuations to understand how much you’ll net after taxes and fees. Using various tools like installment sales, a team of specialists spreads out tax liabilities to help you get the most out of your earnings.
Risk Management
Managing financial risks is one of the ways to protect your finances, company, or family’s future. During your consultation, your advisor may recommend purchasing business continuity insurance, which covers lost income in case of a fire or flood. If you pass away, life insurance helps replace income for your family and pays for estate taxes. Disability insurance shields your income if you’re unable to work due to an illness or serious injury. For your health, long-term care insurance covers the cost of nursing homes, assisted living, or in-home care.
Choose Comprehensive Financial Planning Services
As a business owner, financial planning involves many strategies, including maintaining wealth and directing it to the right sectors. Whether you want to retire, grow your finances, or pass over assets, advisors can assist you in the entire process. To learn more about financial planning services, call a trusted company today.
