Eric Nelson

02/13/2023

When to sell and who to sell to are significant decisions for most business owners. Transferring ownership of a closely held business may affect many people, including family members, employees, suppliers and the local community. The exit planning process should continuously clarify the stakeholders’ goals, desires and intentions.

Different exit pathways should be evaluated to determine how to monetize business interests. The size of the transaction may warrant coordinating the exit plan with the owner’s estate plan. The advisory team will most likely include a business planning or transaction attorney, a CPA and a CFP®.

The objectives and timeframe influence implementation of the plan. Many exit plans can span years if value enhancement strategies need to be applied. The planning process should be fun and energizing while providing you with peace of mind.

What is an exit plan, and why will having one usually increase your net worth when it’s time for your exit payday?

02/10/2023

About half of business owners want to transfer their business to a child but only 30% do so. Families are not without their conflicts, especially in family businesses. By having annual family meetings to discuss the possible succession plans for the company, you will be more prepared for an exit.

Managing a Family Owned Business involves navigating business decisions as well as family relationships. Without a detailed succession plan, you are setting your daughter up to fail in a business that has not maximized its value prior to transition. Without having tough conversations about the future of their business, family business owners will fail to have a succession plan in place.

33% of those surveyed received their business from family and 6% purchased the business from their family. Even if the child can afford to purchase the business outright, are they qualified to run the business? 95% of children who inherit a family business after both their parents pass will choose to leave the advisor who worked with their parents.

Your business is likely your largest financial asset, and as such, the success and potential sale of your business impacts each member of your immediate family.

11/01/2022

Spoiler: There is no "best age" to retire. However, there may be an ideal time for you. Check out our recent blog post on determining your ideal retirement age.

Fiduciary Financial Planner helping business owners, corporate executives, and retirees acheive financial independence. Personal financial planning for the South Jersey and Greater Philadelphia Area.

10/28/2022

Tax Loss Harvesting and Why it Helps

What is tax loss harvesting?
Tax loss harvesting is a process where you sell securities in a non-retirement account in order to realize (harvest) the loss for tax purposes. This allows you to deduct $3,000 per year in capital losses, it also allows you to offset any realized gains against the losses. Lastly, you can carry forward the losses into the future to offset future gains.

Why is it more important today?
2022 has been a rough year for investors. A lot of people feel like they “need to do something” when the markets are down. Going through your portfolio and realizing losses might just be that thing to do.

Who should pay attention to TLH?
If you have a taxable brokerage account, especially if you have legacy positions that have large amounts of gains.

Who should ignore this?
Anyone who has the lion share of their assets in qualified retirement plans and IRAs shouldn’t concern themselves with tax loss harvesting because you cannot realize gains or losses in retirement accounts. You should however consider Roth conversions during a market downturn if appropriate.

If you have questions feel free to reach out!

10/26/2022

If you are eager to secure the 9.62% annual interest for Series I bonds the deadline is Friday, October 28th. The rate is expected to drop to 6.48%. A few quick facts about I Bonds:

--> I Bond rates change twice yearly based on inflation

--> Your money is locked up for 12 months and you cannot take it out for any reason

--> Each individual may purchase up to $10,000 worth of series I bonds in a year (plus up to $5,000 if you are owed a tax refund)

If you have any questions feel free to reach out.

06/16/2022

When the stock market is down, it feels awful. You may be looking at the market down 20% asking yourself, “what do I do now?”

Feel free to check out my latest blog on the current market.

Fiduciary Financial Planner helping business owners, corporate executives, and retirees acheive financial independence. Personal financial planning for the South Jersey and Greater Philadelphia Area.

02/23/2022

When the markets look scary, perspective is extremely important. If you find yourself concerned with how the markets might impact your financial future feel free to reach out. I am happy to chat!
https://calendly.com/independencewealth

11/02/2021

Many financial advisors charge an asset-based fee such as 1% of your assets managed. Is an asset-based fee financial advisor right for you?

09/11/2021

03/22/2021

Surprising Ways Gen X and Boomers Are Worlds Apart Financially

While older Americans proved especially vulnerable to the coronavirus' worst ravages, no age group was immune from the pandemic's economic fallout. All demographics were forced to change their money...