Description
One of the three legs of the stool, personal financial planning, is critical to the exit planning process for a business owner. In this module, the advisor learns high level wealth management and financial planning tactics and techniques including portfolio management, retirement planning, risk management, and estate planning.
Learning Objectives
• Wealth Management is an extremely valuable service that many business owners take on themselves without the expertise to tackle the various components of the investment management and comprehensive planning: Portfolio Management | Retirement Planning | Risk Management | Estate Planning.
• Portfolio Management: An individual’s stock-to-bond allocation is the driving factor behind investment performance. This allocation should be thoughtfully chosen based on risk tolerance, cash flow needs, and unique personal goals and implemented with a low-cost, tax-efficient, well-diversified portfolio.
• Retirement Planning: Retirement cash flow analyses can help business owners identify how much they need, how much they can spend, and what rate of return is acceptable for their portfolio in order to enjoy a successful retirement.
• Risk Management: A business owner’s risk management needs are extensive and should include life, disability and umbrella insurance often with. Buy/sell agreements are an additional key component for business owners to provide protection and facilitate guidelines for companies in transition.
• Estate Planning: Wills and Powers of Attorney (at the very least) and Living and Irrevocable Trusts (in some cases) are a necessity for business owners as they help minimize estate tax liabilities and ensure greater privacy and specificity for control and protections of assets before and after death.