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Financial Planning for Entrepreneurs and Business Owners

We work with numerous business owners and entrepreneurs, helping them reduce their taxes, reduce their management fees, and improve their investment risk management.  We work closely with them as wealth advisors to create a diversified investment plan to not only achieve their financial goals, but also manage issues they didn’t recognize they had.

Entrepreneurs & Business Owners

Steven and his wife Leigh are in their fifties. Steven owns and runs a very successful business that he built from the ground up over 15 years ago.  It is a source of pride and he is always working to find new ways to build and improve his company.

When working with entrepreneur clients like Steven and his wife, our first goal is to learn more about the company and compensation structure to create a plan that maximizes his corporate structure.  Next we ensure they are in contact with both an accountant and a lawyer who are capable of implementing such a sophisticated arrangement – in some cases at almost half the cost of other advisors.

The goal is that within five years, the tax efficiencies and cash flowing investment results from implementing this new plan improve his portfolio and his rate of return. The success?  

Years later, when it came time to sell his business, Steven contacted us, letting us know that he had been in negotiations with a buyer and, after speaking with his accountant and securities lawyer, was ready to sign on the dotted line.

We asked to be involved and discovered that Steven hadn’t consulted a business broker.  He was ready to accept a deal that offered him 30% in cash, 70% in stock, and had several restrictions.

After learning more about the situation:

  • We put Steven in contact with a business broker and worked with them and his accountant to revise the deal.
  • We provided currency risk solutions to create investment security, because Steven was being paid in U.S. dollars.
  • We planned, implemented, and coordinated Steven’s exit strategy from his business.
  • We utilized a separate corporate account that we created in anticipation of his eventual business sale when Steven initially became a client.

With our involvement and quarterbacking efforts, Steven received a seven-figure deal with 65% in cash, 35% in stock, virtually no restrictions, and, as a result of the secondary corporate account we set up years ago, saw the entire transaction be essentially tax free.

This situation is hypothetical, does not represent any actual clients, and is not to be viewed as a guarantee of investment performance.

Self-Employed Consultants

Jeremy and Terri are both in their late 30’s.  Jeremy is incorporated with his own successful consulting business and Terri is an artist.

The couple was with a financial advisor who had them in a traditional portfolio of mutual funds. They each had a sizeable RRSP account and a joint non-registered account.  Jeremy’s income was all being paid out as salary from his corporation and what they didn’t need for lifestyle they saved, either in their RRSPs or in the joint non-registered account.

When working with successful self-employed individuals like  Jeremy, often our initial recommendations are to change compensation to dividend from salary, leave their savings in the corporate account (instead of RRSPs), and income split with their spouse.

We accomplish these objectives by putting clients like Jeremy in contact with an experienced lawyer who is able to help with restructuring to include their spouse (Terri) as a shareholder.  As a result of implementing these strategies, Jeremy saw his taxable income drop from 34% to 13%.

Being a consultant, Jeremy will likely have no eventual business value, so retirement planning is paramount.  Another recommendation is to create a tax-efficient asset allocation strategy where fixed income investments are held inside their RRSP and dividend/capital gains investments are held inside their non-registered account.  Combined with our cash flow investment approach, these tax efficiencies help build a foundation for solid retirement savings.

Jeremy and Terri felt like they were on a rollercoaster ride with their previous advisor and their returns were ultimately flat.  With these tax efficiencies now in place, they’re optimistic about their retirement as they watch their savings grow while still maintaining their lifestyle and cash flow.

With our competitive fee structure and the tax deductibility of the management fees on their non-registered accounts, they will also save on management fees over what they were doing previously. With these strategies in place, Jeremy and Terri expressed to us that they feel more at ease with reaching their retirement goals now, instead of years from now.

This situation is hypothetical, does not represent any actual clients, and is not to be viewed as a guarantee of investment performance.