Business owners often have complex financial circumstances as their personal wealth often gets tied up with business wealth. It is also likely that company performance and dividends plays a large part of a business owners income.
Business owners often have very little time to think about their personal finances as they put so much time and effort into making their business a success.
Here are three key steps that will help business owners to plan their finances effectively. You may wish to discuss these at a no-obligation meeting with one of our financial advisers.
Book a no-obligation review meeting with a financial adviser
Tax planning
Restructuring your finances in a tax-efficient way can save you a lot of money by helping you to make use of available allowances so that you do not pay more tax than you need to. Investing tax-efficiently will mean that your investments will work harder for you.
Tax rules are complex and do depend on individual circumstances. A financial adviser at Four Wealth Management can review your existing finances and recommend ways that make sure you are fully utilising your reliefs and allowances.
Find out more about tax planning
Plan your retirement
Business owners often rely on the success of their business to fund their retirement which can be a risky strategy. If the business is not as successful as you were hoping you might not receive what you were hoping for when it comes to selling the business which could mean that you have insufficient income at retirement.
Business owners also do not normally benefit from the government’s auto-enrolment scheme into a pension. Instead, business owners are responsible for their own pension arrangements and savings. This often means that it is neglected until it is too late or there are far fewer options available.
The sooner that you begin saving for retirement and have a plan in place, the more options that are available to you and the more time your assets have to potentially grow in value.
To find out more about creating a bespoke retirement plan and reviewing any existing pensions, you can book a no-obligation meeting with a financial adviser.
Protect yourself and your business
We cannot prevent the unexpected from happening, but we can help business owners to be prepared through our bespoke protection planning service.
Taking action to protect yourself, your family and your business now could save you money in the long term as protection policies typically cost more as you get older.
We can offer tailored solutions for personal protection such as life cover, and also business protection.
When a business partner dies, the value of their share in the business is included in their estate and distributed according to their will. This could be a difficult time for the remaining partners and business. The beneficiaries might not be interested in running the business and likewise, the business might not have liquid funds to buy out the deceased partner’s share from his or her family. Business protection is an effective way to help keep continuity in the business. It is a life insurance policy that provides funds to the business which can be used to purchase the remaining shares from the estate. The cover is combined with an agreement between the partners on how the remaining shares should be bought and distributed amongst the remaining partners.
Book a no-obligation meeting to discuss protecting your assets
Start planning for your future today
As a business owner, you may also want to consider an income protection policy. Income protection is designed to replace a portion of your salary should you be unable to work due to illness or injury. This payment can continue until retirement.
