It’s not what you make, it’s what you keep…but how?

Our last issue started the discussion on preserving your wealth and prosperity with an examination of spending and risk. This issue goes a bit deeper and looks at two topics that no one enjoys talking about. Why? Because they deal with unpleasant events and transitional decisions that we’re not ready for and hoped we'd never have to make.

In the last issue, we discussed that since tomorrow is promised to no one, we all need to enjoy life. This examines a different aspect of that cliché…how can we protect ourselves and our families if tomorrow doesn’t come?

CONTROLLABLE #3: PROTECTION:

Are you prepared for the unknown and unexpected? That sounds kind of silly, doesn’t it. How can you protect yourself from the unknown or unexpected? You can’t completely. But here is what we know…people get sick, people become disabled, people die, and people sue other people. We don’t know if this will ever happen to us (unknown), and if it does, we don’t know when it might happen (unexpected). Don’t fail to plan for these unknown and unexpected events. Understand your state’s asset protection laws, maintain proper liability insurance to protect yourself and your business. And investigate adequate life, disability, and long-term care protection so that if the unthinkable happens, you and your family are protected. These sad, tragic events don’t just happen to someone else.

CONTROLLABLE # 4: BUSINESS CONTINUITY:

Do you have a written plan in place that would provide for the continuation of your business if one of the unknown or unexpected events discussed above occurs to you? Do you also have a formal plan for your ultimate exit from your business? Most business owners don’t, and the result could be tragic. Planning and executing on succession or exit are two distinct and separate processes. Planning today doesn’t mean transition or exit tomorrow. What it does mean is an orderly transition or exit, whether by choice or necessity, when the time comes.

Finally, whether or not you own a business, you should make certain you have updated legal documents in place including a will, power of attorney, healthcare directives and even a trust. The absence of very simple and inexpensive legal documents could force your loved ones to make some difficult and complex decisions at a difficult time.

So where do you start? Considering that the net worth of many business owners is concentrated in their business, do you know what your business is worth? Not just to you, but to a potential buyer? Further, do you know who your potential buyers are? If you answered no to either, or both questions, consult with a team of experienced business advisors to start the process of valuing and/or creating value in your business. Taking the time to understand these important aspects of succession/exit will save much needed time when transition or exit are either your choice or forced upon you.

CONCLUSION:

Achieving wealth and prosperity, however you define them, are satisfying and noteworthy accomplishments. However, once you get to the top of the mountain, you have an entirely new set of responsibilities and challenges. How to maintain perspective and live the life you desired to build without compromising your values and the discipline you demonstrated on the way up the mountain. You also must figure out how to maintain the wealth, prosperity, and lifestyle you built. Without discipline and proper planning, this can be as big a challenge as the pursuit of them.

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Live Well-Retire Better? is a unique financial planning process that was developed based on my philosophy that you don’t have to choose between enjoying the comforts of life while working and saving for a comfortable retirement. Although nothing is guaranteed, with commitment, discipline and careful planning, you can enjoy the comforts of life now, AND when you retire.

The Live Well-Retire Better? newsletter will explore a wide variety of financial, tax, estate, and business succession planning topics exclusively for entrepreneurs, corporate executives, and healthcare professionals. If you have any specific questions, concerns, or topics that you would like to hear more about, please send me a note at [email protected]. .

If you’d like to talk about The Live Well-Retire Better? method of financial planning, or have questions or concerns, please set up a call. There is never a charge or any obligation for an introductory conversation.

For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Advisors LLC nor any of its representatives may give legal or tax advice. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.

Securities and advisory services offered through Cetera Advisors LLC, member FINRA/SIPC, a broker-dealer and Registered Investment Advisor. Cetera is under separate ownership than any other entity.