Business Owner’s Wealth Trajectory

Laura was a business owner, telling me what bothers her most: "No one is taking care of ME", she said. "I've put my heart and soul on the line for this business. But even after 15 years - and presumably building my wealth here - I don't know what I'm going to get out of it!"

Laura has been taking care of others: clients, staff, everyone! But no one was protecting her! No one sat down to plan the freedom and fulfillment she wants to enjoy now and when she retires.

Wealth Trajectory for a Business Owner

Your wealth trajectory avoids the tragedy of not knowing how you're reaching your goals-or not having enough when you get there. Planning requires a commitment of time with a certified advisor who can build your trajectory.

We look at all your resources, and the growth rates and circumstances that apply. We consider your family matrix-older and younger generations. We see every personal and financial matter that impacts your future.

That's what Laura is missing. No one has told her, "You'll have $8,000 per month for the rest of your life, indexed for inflation, until you're 105 years old." Laura has never heard or seen this, because no one has done the calculations.

Now as Laura and I work on her plan, we can see the future. We find money, and plug in the variables so Laura can control the way her money will
serve her.

Laura can tell you the freedom and confidence she feels now because she can see her future, and she knows how she will be able to enjoy it.

Building your Wealth Trajectory

Wealth trajectory_picAs a business owner you know the overall plan will include your business interests, your home, tax-sheltered savings accounts, open accounts, special properties, insurances, debts, trusts, etc.  All these go into your plan.  They include guaranteed, variable, liquid and tax efficient assets.

Guaranteed assets include term deposits perhaps paying 2-to-3%, annuities at 4% (or much more) and the equity value of whole life insurance perhaps at 6% or more.

Variable assets can include tax-sheltered accounts with long term growth assumed at 6 to 8%, universal life insurance ranging 4% to 6%, and business interests that may range 5% to 35% depending on the nature of your business.

Liquid assets include short-term deposits which earn little or nothing but are readily available when needed. In event of severe illness, critical illness insurance can also be a quick source of $100K to $2 million when you need it.

Tax-efficient assets can include TFSAs here in Canada or similar accounts in other countries, allowing you to draw out value without paying tax. Whole life insurance is also a vehicle for accessing income with little or no tax. Tax-efficient investment funds can help reduce or defer tax for 10 or 20 years. A home-equity reverse line of credit can also create tax-free income.

Simply put, we bring all these (and more) into your wealth trajectory. We also "work the variables" so you have peace of mind today. Regardless what future events may bring, the wealth trajectory (plan) we put in your hands is the proof of comfort and confidence you're creating for your future.

How we use your wealth trajectory

I wrote the wealth trajectory for a business owner painting the picture from age 58 to 95. We considered 4%, 6%, and 8% growth rates, also varying inflation patterns.

Since life isn't a straight line, we built in a lot of travel and other activities to age 75. We also considered a lower spending rate to age 90, and a final period when health costs skyrocket. In the end, we showed safety in every period to age 95 and could have continued past 100.

Talking about your life and future - beyond your business - becomes more enjoyable when you have the proof of future income in your hands.  You can already experience what it's like to enjoy the rewards you so richly deserve.

Click here for 5 Benefits of your Wealth Trajectory.
Also find Exit Strategies for Business,  here in video, and here in print.
More in our learning modules at:
Amazon or Kindle:   "A Lifetime Of Wealth -- And How Not To Lose It."
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Brian Weatherdon, MA CFP CLU CPCA MDRT

1 comment

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