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Why Partnering With A Financial Advisor Can Help Business Owners Achieve Long-term Financial Success

Why Partnering With A Financial Advisor Can Help Business Owners Achieve Long-Term Financial Success

As a business owner, you quickly learn how important it is to plan ahead. You need to simultaneously focus on solving the problems that pop up today while preventing other problems from arising years down the line. Solid planning and decision-making along the way will help guarantee your long-term success in business. The same is true for your personal finances.

Long-term planning and goal setting are essential for your long-term financial security. Though you likely have a lot on your plate already, this is something you should prioritize. Luckily, you don’t have to do your planning alone. Partnering with a Financial Advisor is a good way to ensure your long-term success without getting overwhelmed in the present.

Financial Advisors Tailor Your Habits To Suit Your Goals

What investments should you make? How much should you invest in retirement each month? How large of a salary should you draw from your business? You and a friend could have very different answers to these questions, even if you own similar businesses and earn similar profits.

The bottom line is this: your goals determine your financial habits. Different goals necessitate different financial habits. Creating a financial plan without first honing in on your goals won’t get you very far.

If you’re not sure what your long-term goals are, exactly, then that’s a starting point for your first discussion with a Financial Advisor. They can help you think forward and imagine the life you want to live 10 years from now, 20 years from now, and beyond. Once you know what kind of life you want to live, your Financial Advisor can work with you to create a financial plan that will get you there.

When you’re a business owner, you have to set goals not only for your personal life but also for your business. Do you plan on growing over the next 10 years? Maybe your goal is to grow the business to a certain size, then sell it. Balancing your business goals with your personal goals can be cumbersome, but a Financial Advisor can help you work through it. They can help you determine whether your business goals and personal goals are compatible with one another. If not, they can help you modify your goals to the point that they are realistic and achievable.

Financial Advisors Can Help You Choose a Business Structure

There are so many different ways to structure a business. You can run your business as a sole proprietorship, an LLC, an S-corp, or even a C-corp. Ultimately, you will work with an attorney to make any desired changes to your business structure. However, a financial advisor can talk you through your options and determine which business structure is most suitable for helping you achieve your financial goals.

For example, if your long-term plan is to sell the business, then you may want to restructure as an S-corp or LLC as this will enable you to separate your personal and business income more readily. On the other hand, if your plan is to scale back your business operations to part-time in the next few years, there may be merits to sticking with a sole proprietorship. 

In many cases, choosing the most suitable business structure comes with significant tax savings. By lowering your tax burden over the years, you’ll be better able to meet your financial goals, whatever they may be.

Financial Advisors Help You Plan for Retirement

Sadly, many business owners work year after year without making any clear plans for retirement. Each person has their own reason for their failure to plan. Some business owners believe they can’t possibly make enough to save for retirement. Others don’t know which retirement plans they’re permitted to invest in as business owners. Or, you may simply be so busy with the day-to-day operations of your business that retirement planning gets pushed to the bottom of the list, time and time again.

The good news is that there are ways for every business owner to retire. You simply need to start planning for your retirement early on and then make small steps towards your retirement goals day after day, year after year. A Financial Advisor can guide you through the whole process, making it a lot more manageable.

Whatever your reason is for failing to plan for retirement, a Financial Advisor can address it. If you think retirement is impossible, they can help you make changes to your business plan, spending habits, and budget in order to make retirement possible. If you’re not sure which retirement plans to invest in, a Financial Advisor can help you review your options and weigh the pros and cons of each one.

If you, like so many business owners, are simply too busy to worry about retirement planning, then working with a Financial Advisor will allow you to hand someone else part of that responsibility. You’ll work alongside them to ensure you understand where and how your money is being invested, but you won’t have to do the nitty-gritty research, spend time moving money around, or spend every lunch hour with your head buried in the latest news article on the stock market. 

Financial Advisors Offer an Objective, Outside Opinion

As the old saying goes, “Two heads are better than one.” Many business owners are rather financially savvy and are quite capable of making wise financial decisions. That being said, there are still benefits of talking over your financial plans and decisions with someone else and seeking open, honest feedback and advice from that other party. This is especially important when it comes to long-term plans and goals for your business and personal future.

You may have others in your life with whom you can talk about your business and financial plans with. But are those people objective? Fellow business owners cannot often offer an objective perspective on your business plans; they’re biased by their own desire for success, especially if they’re your competitor in some way. Your own business partners may also be unable to objectively consider your own financial success separately from their own.

A Financial Advisor is a neutral, third-party with whom you can openly and honestly share your financial goals, woes, struggles, and desires. They don’t have a stake in your business, and they do want to see you succeed. They work for you, specifically, and will always give you advice that is in your own, personal, best interest. Even if you’re extraordinarily financially literate yourself, it is important to have a Financial Advisor in your corner to double-check your math, point out possibilities you may have missed, and offer a second, experienced opinion on your financial goals and plans.

Planning for the future is not easy when you’re a business owner. There are so many factors to consider, from when you’ll retire to what direction you should take the business in. You deserve to have someone in your corner to help you narrow down your goals and keep them in focus. That is exactly the role that a Financial Advisor can play in your life.

If you’re a busy business owner who would like to enjoy a secure future with fewer day-to-day headaches, please contact RLJ Wealth Management. We take a personalized approach, treating every client as an individual. We’ll help you clarify your financial goals and define the path that makes achieving them possible.