How to Pave the Way to Financial Security – for You and Your Business

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By iA Private Wealth, February 05, 2019

Everyone told Dennis and Deidre they were crazy to give up their stable jobs, especially with a newborn son. They took the plunge anyway and started their own business, pouring their hearts, souls and a large chunk of their savings into making their dream a reality.

Fast forward 20 years, their business is thriving and their son will soon graduate from university. While they have much to be happy about, the couple now faces a different set of challenges. A recent health scare that saw Dennis briefly hospitalized has prompted Dennis and Deidre to shift gears away from work and instead focus a bit more on themselves and their family.

The situation

Dennis and Deidre’s business has always been a priority. As a result, retirement planning was never top of mind. Like many entrepreneurs, they assumed selling the business would fund their later years; however, they have yet to find an interested buyer and their son wants to pursue a career of his own. While they don’t know a lot about investing, they keep up with the news and wonder what the current environment of volatile stock markets, trade uncertainties and low interest rates could mean for them. For the first time in a long while, they are worried.

The issue

The couple’s continued success depends on proactively planning for the sale of their business. As it stands, they are asset “rich” and cash “poor.” This lack of liquidity does not impact the financial needs or objectives of their business today, but it does weigh on their ability to meet their longer-term financial goals. Who can they turn to for guidance?

The solution

The role of an Investment Advisor is to help business owners like Dennis and Deidre map out a comprehensive and personalized plan for their future, with support that includes:

  • Determining what their business is worth and how to maximize its value
  • Minimizing the tax consequences related to selling their business, while being able to draw cash flow from the proceeds to meet their retirement income needs
  • Structuring their retirement income to effectively manage taxes and take advantage of any government benefits they may be entitled to
  • Taking into consideration personal and business insurance coverage for greater peace of mind
  • Investment and estate planning solutions to grow their capital and preserve their legacy

The payoff

Dennis and Deidre chose to meet with an Investment Advisor, who offered them a holistic wealth management  approach – from understanding all the implications of selling their business to diversifying their assets and staying on track to meet their short- and long-term needs through ongoing reviews. This has allowed Dennis and Deidre to get the most out of what they worked so hard to achieve and has eased their minds as they move into the next phase of their lives.

Your first step is to speak with an Investment Advisor

Does Dennis and Deidre’s story sound familiar? Are you a business owner seeking a more clearly defined path to long-term financial well-being? Help is available from our team of highly experienced Investment Advisors at iA Private Wealth.

Contact us today to take the first step toward your personal and professional financial well-being.

This article is a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. iA Private Wealth is a trademark and business name under which iA Private Wealth Inc. operates. iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

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Are You a Business Owner? Consider These 5 Tips to Help Your Business Thrive

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By Nader Hamid, June 20, 2019

Running a business isn't easy. It takes hard work, perseverance and resilience. It also takes good advice and having the right people in your corner. Here are a few guidelines on growing a business that owners often overlook as they get caught up in the day to day.

Partner with professionals who understand your business

Different business owners have different goals, especially depending on where they are in their business life cycle. Some want financial security and control, others want to build a legacy.

That’s why it’s critical to find an Investment Advisor who understands the importance of getting to know you and what motivates your decisions. Understanding a company’s business dynamics is paramount to giving quality advice. For example, how did you start your business and why do you continue building it? How involved is your family? What’s your exit strategy? Initially, business building starts with the desire to be your own boss, but this can change as your business grows and evolves. It’s crucial that your advisor understands what drives you.

To plan for success, start with a plan

As an independent business owner, I understand the different aspects of running an enterprise and how it can eat away at your time – whether it’s lease negotiations, hiring and managing staff, or problem-solving urgent issues. Developing and monitoring a long-term plan is key to steering your business in the right direction.

To be truly successful, we believe you need to focus on working on the business as opposed to working in the business. To do so, it helps to have business analytics and tools that allow you to delegate tasks and empower others, while still maintaining overall control. Many owners need to be able to deliver high-level information on demand, but still have a working grasp of day-to-day operations. A seasoned advisor can help by providing a financial dashboard of your business, enabling you to see both a high-level overview of your company as well as smaller cash management details.

Benefit from a holistic wealth management plan

An experienced advisory team will create a fulsome wealth plan to give you a bird’s-eye view of multiple aspects of your business and personal finances. The power of having a go-to person for information and recommendations is invaluable. Whether it’s for business decisions like cash flow, insurance, acquisitions, buy-outs and succession planning, or personal issues like purchasing a second property, funding retirement or estate planning, these can all be addressed by a knowledgeable wealth management team. Along with using research and advanced planning software, the team will implement solutions that come from a deep understanding of your short- and long-term business objectives.

Leverage an experienced network of professionals

An experienced advisor can also leverage a large network of professionals in different areas to ensure you receive the necessary accredited support and services. These can include tax and estate planning, personal and business insurance, legal advice on corporate structures and family trusts, as well as banking support for all aspects of money management.

Always prepare for the unexpected

One of the greatest benefits of working with an advisor is the value they provide in helping prepare for the unexpected – from changing market conditions and economic volatility to sudden acquisitions or economic or market dynamics. Having the ability to walk through these different scenarios and discuss their potential impact on you or your business with a wealth professional can be critical to your success.

What All Small Business Owners Need to Know

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By Brent Vandermeer, November 19, 2018

Small business owners have a lot on their plate, from growing their business to managing their employees, and sometimes their finances can take a backseat. But that shouldn’t be the case. Like it or not, finance is the backbone of every organization, no matter how big or small, and as a small business owner, it’s imperative you know what to be aware of. Here are five areas of your finances you need to ensure you’re on top of:

1. Investments

While small business owners typically don’t have pension plans, they have invested significant personal capital in their venture – precisely why they need a good financial advisor who can develop a customized personal pension plan savings strategy. With proper planning, business owners can often take advantage of different corporate structures to increase tax efficiency and accelerate asset accumulation.

An investment advisor who is acting as a fiduciary becomes a trusted partner for the small business owner to ensure they can attain their personal goals outside the business.

2. Legal

Many small business owners have partners and unfortunately these relationships can break down over time. Proper upfront planning and advice can save a lot of heartache down the road. Each partnership needs to have a shareholders’ agreement that covers what has to happen when a partner decides to depart or suffers a long-term illness, or when conflicts can’t be resolved. It also needs to account for a partner’ death, because without an agreement that plans for this scenario, the estate will become the surprise partner to the remaining shareholder(s) – likely not an intended consequence.

Proper planning and guided discussions can ensure that a whole range of potential problems are avoided, bringing peace of mind and allowing the business owner to stay focused on what matters – growing the business.

3. Succession planning

Many small business owners put succession planning off until the eleventh hour, not realizing it can be a very complex and time-consuming process. Particularly important is determining whether there’s a succession candidate emerging from within the business or if the company will be sold to an outside party.

An advisor can help with tax and legal structures, and provide guidance on how the succession buyout can be structured financially. Importantly, with the sale of the business the departing owner now has liquidity and investments to consider as part of their long-term financial plan.

4. Insurance

Small business owners are often so busy they overlook planning for their own disability or death. What would happen if the owner or key employees could no longer function as they do in the business? Covering these risks is very important and yet can often be overlooked or passed over due to cost.

A skilled and strategic advisor can build a risk management plan that balances proper coverage and cash flow needs. It’s a balancing act between covering the risk and diverting money away from growing the business.

5. Tax planning

Tax law seems to be changing frequently and the typical small business owner has no way of keeping up to date on these changes. When there’s a change to the tax rules for income or investment growth generated within an operating or holding company, the long-term plans that optimize withdrawals for the business owner need to be updated as well.

A good advisory firm can provide expertise from accounting professionals to help the small business owner optimize their after-tax income.