Hiring a financial advisor can be one of the best decisions you make as a business owner.
The more complexity you have, the more value an expert can bring to your financial life.
Oftentimes, business owners will reach out to me and ask why they should have a financial advisor.
Here are 7 great reasons why:
One of the biggest pain points business owners have before working with us is around managing their cash flow and taxes.
They have no clarity on what they need to save for safe harbor taxes or what they need to save for taxes above safe harbor.
This means they do 1 of 2 things: They hoard cash because they are so scared of their tax liability. Then April rolls around, they pay their tax bill, and then the same thing happens again for the net year. They allocate more cash than they have available and put themselves in a tough spot come April. Then end up either having to get on a payment plan to the IRA, sell investments when they don’t want to, etc.
Neither of these are good options. We help our clients know what they need to save monthly for safe harbor taxes and what they need to save monthly for taxes they will owe above safe harbor.
Then throughout the year, we do more projections and modify the plan based on how things are going. You have to stay on top of this to run your business well.
Let’s face it, life as a business owner is hard. You never run out of things to do on your to do list for your business. And on top of that, you also have a family and personal life. Personal finance often falls down to the bottom of the to do list and things never get done.
This is not what you want. You need to be improving your personal financial life while you build your business. Talk to any business owner in their 50s or 60s, they will tell you they regret putting it off.
You need to:
It is a lot to get done and having an advisor on your team helps ensure you get all the important tasks done yearly. The impact of doing everything right, every year is so huge.
I’ll be honest, my email is full of client questions every single day. One of the hardest parts of being a high income business owner is that you have so many options, decisions, thoughts, etc. It can be so hard to take action. You do not have the time to look up everything your friend tells you you should do. And honestly, you have no idea if they are relaying the right info and if it applies to you.
One of our biggest value adds for our clients is that they do not need to make any of these decisions alone. You get a second set of eyes.
My clients know they can email me and they will get a response that same day. I don’t end my day with a single email not responded to and I start my day responding to every email.
This means our clients go from wondering what to do to getting a response almost instantly so they can know what needs to be done and then move past it.
Quick action beats being stuck in decision paralysis over and over and over.
Let’s face it, you make a lot of money because you are great at what you do. If you spent 100s of hours on personal finance, tax, insurance, etc. you could figure it out. But that is not the best use of your time.
As you become wealthy, one of the best uses of your dollars is freeing up your time. It is the same reason you hire people in your company. Hiring a financial advisor is no different. You have someone taking all the heavy lifting off your plate so you can keep growing your business and increasing your income. Everyone is best staying in their lane of what they do best and what they enjoy doing the most.
Personal finance is not black and white. There is not a right and wrong answer for everyone. Your goals, your risk tolerance, how you feel about debt, investing, real estate, insurance, etc. dictates what makes sense for you.
We can have 2 clients with the exact same job, income, etc. yet they do entirely different things with their dollars.
When you have a great, long term advisor, you have someone in your corner who can help give specific advice to you that is right for YOU. This is incredibly impactful.
Now that you are running a successful business and making good money, you have probably outgrown your existing team.
You need a great:
We help vet and hire the team for you so you can ensure you have the right people around you for your situation.
Do not let your existing team hold you back.
Oftentimes clients ask me “what would you do” or “what do your other clients do.”
Most of my clients are very high income and net worth for their age. This means their family, friends, etc. are not in the same position as them. They do not really have anyone to turn to or learn from.
We are able to share our expertise, what other clients do, what mistakes they make, etc. so our clients can learn from that and avoid those big mistakes.
Avoiding big mistakes in life is how you end up winning.
You do not have to learn from your own mistakes, you can learn from others and avoid them!
At the end of the day, if you are making good money, have a bunch of complexity, etc. it makes sense to build out a team around you.
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Financial Advisor