We don’t sing your praises enough. But business owners are the people who create our communities. As business owners, you have so many balls in the air, that it is easy to lose focus on your own needs.
In your valuable but virtually non-existent spare time, think about your wealth and how you can protect it. Working in your business is ‘active income.’ It requires genius and hard work. How attractive does ‘passive income’ sound? You have sacrificed so much to be a business owner. Is it time to make your investments work for you?
Here is some fuel for thought.
- Diversify your Assets. Avoid having all of your net worth tied up in the name of the business or in your real estate holdings. Consider diversification strategies such as bonds, individual stocks, ETFs, structured investments or alternative investments. Speak to a professional so that you understand all your options. Always ask if they are a CERTIFIED FINANCIAL PLANNER TM.
- Within your investment portfolio, think outside the mutual fund. There are so many choices…each with their own risk/reward characteristics.
- What happens to your company if you cannot work? What happens to those who depend on you? Disability insurance can be an important asset.
- Make sure your liability insurance covers the inherent risk of running your business.
- Always have a personal umbrella policy. This protects your personal assets from any claims that exceed your other policies.
- Speak to an attorney and a tax professional about your business structure. Does it make sense to separate your business into multiple entities? Is your business real estate separately owned?
- Is an Employee Stock Ownership Program right for you? It can be a great motivator for your employees and a tax-advantaged retirement program for you. This is a specialized field. Seek advice from someone who is experienced in this field.
- Understand strategies for the ownership of personal assets and investments: Joint Tenants with Rights of Survivorship, Joint Tenants by the Entirety, Revocable Living Trusts, Irrevocable Trusts, and ownership by your spouse.
- Take the advice you receive from the attorney and review with a tax professional. Is this the most cost-effective tax structure in which to own assets?
- Ask your financial professional about tax free gifting ideas. If your estate is subject to inheritance tax, the time to start planning is while you are still building your worth.
- Business owners have immense responsibility. Build a team of professionals that you can lean on. You deserve it!