How do you address those components?
To help protect a portion of your income in the event that you become unable to work due to injury or disability, you should have a solid disability income insurance policy in place to provide a benefit — a policy that you own personally and is portable and can travel from business venture to business venture. This is something that would complement, not replace, any group benefits that may already be in place through the business. Talk to your advisor about ways to build up reserves to deal with a financial crisis.
Life insurance can be a good vehicle to address the possibility of premature death. You can’t predict if you’re going to need insurance later in life for personal or estate planning needs, so you need to start building it now. That way, you can ensure that you have an adequate amount of life insurance to provide your business partners with liquidity to keep the business going successfully and provide for your family members.
How can a business owner find an advisor to help accomplish both business and personal financial goals?
Look for someone to quarterback the process that has the ability to collaborate with other professionals in the legal and tax arena to help you work through the process and keep you on track. A good business advisor should also be a good personal advisor, someone who will involve other family members in the process.
Find someone you like and trust, because you will build a strong personal relationship with this advisor. This professional will help you think about how to create solutions to overcome roadblocks and create opportunity to have the flexibility necessary for accomplishing your personal and business goals.
Treat your personal planning like planning for your business. Delegate management to your trusted advisors who will keep you accountable to the goals that you’ve established.
What are the consequences of failing to plan?
The biggest consequence of failing to plan properly is the loss of time. As a business owner you have enough to deal with on your plate as it is. If a plan is not in place to handle life’s unexpected events, time will be hard to come by amidst the challenge of coping with such events. Time is one of your biggest allies. By being consistent and planning on a regular basis, events or issues that arise become minor bumps in the road, rather than a major derailment.
This is why it’s so important to build in financial flexibility; because you never know what may be down the road.
Anthony Brant is a financial advisor specializing in closely held business planning with Skylight Financial Group. Reach him at (216) 592-7352 or [email protected]. Anthony Brant is a registered representative of and offers securities, investment advisory and financial planning service through MML Investors Services, Inc. Member SIPC. Supervisory Office: 1660 W. 2nd St. Ste 850. Cleveland, OH 44113. 216-681-5680. CRN201210-141091
