If you’re a successful business owner, you’ve already beaten the odds. Data from the Bureau of Labor Statistics show that almost half of businesses fail within 5 years.¹ But new challenges often accompany professional success. Many owners set their personal wealth planning on the backburner as they devote energy to growing their business. And growing a business requires new capabilities and resources for employees, from 401ks to insurance — and more.
A financial advisor can help you navigate all of these challenges and keep your personal goals a priority. He can tailor a wealth plan that fits your entrepreneurial mindset and a portfolio that aligns with your business needs. An advisor can also help you set-up benefits for employees and protect against emergencies or loss. And when you’re ready, a financial advisor can help turn your business into a family legacy or help you transition from the business, into retirement.
Here are five key ways that an advisor can help:
1. Investment Management
An entrepreneur’s wealth management plan should be both data-driven and based on their unique personal and business needs. At Magellan Financial, we apply a risk-based approach to investment management that is designed to achieve equity-like returns with potentially lower volatility. We want you to be thinking about how to grow your business and the risks it faces — not those in your portfolio.
Our goal is to uphold the wealth management plan of each small business owner with tactical asset allocation, in-house money management, and meetings to review portfolio performance and changes. Whether you have a startup or a well-established business, our team of professionals can help you build the right portfolio for your investment needs. We fit your wealth plan to the shape of your life and align it with your unique goals. Here are some ways we accomplish this:
- Asset Class Investing
- International Diversification
- Risk Mitigation
- Tax-Efficient Investment Planning
2. Risk Mitigation
According to the US Small Business Association, one of the most important investments an entrepreneur can make is a careful appraisal of risk.² Anything that could slow, halt, or impact the profitability of your business should be identified, and, if possible, mitigated against in your business plan. That’s where we can help.
We will help ensure that your business and personal assets are fully protected. Our role is to help protect you from major business disruptions and to ensure that you have the appropriate coverage to protect against a major financial event. This often includes planning and insurances for:
- Commercial Risk
- Life, Health & Disability
- Management Liability
- Personal Risk
3. Business Retirement Services
Happy employees lead to happy customers — which translates to greater success for your business. A tailored and well-managed retirement plan is one of the best tools for creating satisfied employees. Although many businesses have retirement plans in place, we commonly find a strong disconnect between the company and its employees’ interests, and what their provider offers.
Whether searching for an evaluation of your current plan or looking to create a new plan, make sure that you look for a variety of benefits and investment opportunities that can help enable financial success, as well as packages that encourage employee retention. A strong business retirement services provider will work with you to evaluate your full range of retirement planning options, including:
- 401k Retirement Management
- Profit-Sharing Structuring
- Defined Benefit Planning
- IRAs, Roth IRAs & Conversions
- Employee Stock Option Planning
4. Estate Planning Strategies
No one wants to think about their own mortality, especially when they consider themselves relatively young and healthy. But leaving your estate planning strategies to chance is one of the biggest mistakes you can make. You need to put a strategy in place that ensures that the business you’ve built lasts beyond you, and ensures the security of your loved ones.
It is critical that clients understand everything involved with these strategies to help preserve and distribute their wealth, on their terms. A professional estate planning advocate should be able to answer all of the questions you may have regarding estate planning strategies, from questions about an estate plan for your family business or questions about estate tax planning strategies. Here are some of the key areas of expertise where a financial advisor can help you with estate planning strategies, specifically:
- Asset Protection Planning
- Health Care & End-of-Life Directives
- Philanthropic Donor Services
- Trust Establishment & Administration
5. Transition and Succession Planning
For entrepreneurs with closely-held or family-owned businesses, transition and succession planning should be started years before retirement. This ensures that your legacy is secure and that you can ensure maximum value from all of your business-building efforts. We’ll work with you to determine the best path forward for you, your family, and your business while deploying the following strategies:
- Compensation Structures
- Liquidity & Exit Planning
- Internal Buyouts
- Pre-sale Planning
At Magellan, we believe it’s our job to match your vision of retirement with a plan to pursue it. Together, we will create diversified potential income sources, a dynamic spending strategy, a cash cushion, and a written retirement strategy.
Business owners face complex and, sometimes, conflicting responsibilities. At Magellan Financial, we offer business financial services to help ensure your company’s profitability today, and financial success in the future. If you’re a small business or a self-employed individual, there are many wealth planning services available to help you or your eligible employees prepare financially for every stage of life. We will take ownership in answering questions you or your employees may have. By creating and managing a well thought-out wealth plan, you can help enable employee retention and provide for a more secure retirement for you and all of the members of your team.
Wells Fargo Advisors Financial Network and its financial advisors provide non-fiduciary services only. They do not provide investment advice [as defined under the Employee Retirement Income Security Act of 1974 as amended (“ERISA”), have any discretionary authority with respect to the plan, make any investment or other decisions on behalf of the plan, or otherwise take any action that would make them fiduciaries to the plan under “ERISA”.
Wells Fargo Advisors Financial Network and its affiliates do not provide legal or tax advice. Transactions requiring tax consideration should be reviewed carefully with your accountant or tax advisor. Any estate plan should be reviewed by an attorney who specializes in estate planning and is licensed to practice law in your state.