The following text has been selected from the Condensed Overview: Wealth Management for Business Owners. This document is currently available in the the Resources section of the TWP website.
Introduction
Owners Win.
Congratulations, you are a Business Owner and you’ve made it to the Business Owners section of the Trusted Wealth Professionals (www.TrustedWealthProfessionals.com).
Companies are in business to provide you with a standard of living. You decide if you want to be an Owner, or an Employee. And that sets the course for your Wealth Management strategies.
The purpose of this Condensed Overview is to create a memory aid, talking points per se, so that you can help yourself along with your Wealth Management goals. Verbal Knowledge Transfer only goes so far but this Condensed Overview is documented so that you may take notes and guide yourself as you converse with other Business Owners and Wealth Professionals.
You may already have a Team of Wealth Professionals that are helping you Win; namely a Tax Accountant, Corporate Banker, Corporate Lawyer and Investment Professional. The Investment Professional could also be helping you with your insurance needs as well.
As you invest, and there are many assets classes to invest in; your own company, your personal self, securities (i.e. stocks, bonds et al), collectibles, private equity, real estate, etc. … diversification, liquidity, and associated risk tolerance, all should be considered along with tax consequences.
The underlying principles of Wealth Management are:
- You don’t have enough Wealth. With respect to Risk, can you preserve and grow your Wealth, in conjunction with Inflation? In other words “How Big Is Your Stack?”
- Taxes really matter. Taxes probably are your overall largest expense to your Wealth, and require professional expertise to manage. Especially when considering the Sale, Succession or Winding-down of your business’ operation. When your business is operational, the tax bracket for individuals earning over $220,000 is 53.53% in Ontario, and the tax bracket for individuals earning between $200,000 and $220,000 is 51.97% (varies by province).
- Wealth Professionals’ Fees are important. The Fees are controllable by you and should correlate to the Wealth Services rendered because the Leadership and Guidance from your team of Wealth Professionals is invaluable.
This Condensed Overview of Wealth Management for Business Owners complements the Business Owners section of the Trusted Wealth Professionals website and is categorized into 4 distinct sections:
- Business Structure,
- Wealth Accumulating,
- Exiting; Sale, Succession or Winding-Down, and
- Estate Planning
This Condensed Overview will be periodically updated and will also be supplemented by questions (and answers) at AskGerry@TrustedWealthProfessionals.com. And please feel free to email questions, if Gerry doesn’t know offhand the answer, or Google searching doesn’t yield an answer, but only begs more questions, Gerry can find a Trusted Wealth Professional who can help you. Please note that there is a Wealth Professional Locator on the website (www.TrustedWealthProfessionals.com) that is initiated by you entering your postal code.
What won’t be covered in this Condensed Overview are the detailed Tax Solutions that are available to you via your accountant. Many of these detailed Tax Solutions, or probably better known as Tax Strategies, involve International/Foreign Investments, Real Estate and Employees. Your Tax Accountant can help you as this is an evolving area especially around the annual timeframe of Canadian Federal Budget announcements (first quarter of each calendar year).
Also for the most part, Province specific rules will be generalized, as it is best to connect with your Tax Accountant and Lawyer, to ensure your Business Strategies avail themselves of the most current and accurate legislation.
The starting point to comprehend this Condensed Overview is some familiarity with Business. It is not an Introductory to Wealth Management but more so of a practical hands-on guide or template to dialogue with your Trusted Wealth Professional. The latest version of this Condensed Overview will be found in the Resources tab of the Trusted Wealth Professionals website.
Owners Win. Let’s keep extending the Winning Streak.
Please note: There may be the occasional ‘One Sentence’ Strategy contained within this document. And that is purposeful because the intent is for you to take the idea to your Team of Trusted Wealth Professionals and discuss the concept. Also the Strategies contained within this document are not meant to be exhaustive; there are business operations that may require different/unique strategies that are not outlined in this Condensed Overview.
Disclaimer
All Wealth Management strategies contained within this Condensed Overview need to be verified through and by engaging with the appropriate regulated Wealth Professional.
