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

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.

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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