Prosperitas Financial & Insurance Advisors
Planning, preserving and protecting your future
"By failing to prepare, you are preparing to fail." Benjamin Franklin
Business Owners
If you are like most of our self-employed clients, you have certainly dedicated a lot of time and effort into building your business. Consider this question...do you want to make sure that your business will continue to succeed, even if you, a partner, or a key employee suffer a serious disability, critical illness, or untimely death? What would it mean to your business if you suddenly were unable to work for six months, a year, or even longer. What if it's your top salesperson, foreman, or manager who can't work due to an illness or injury? Approximately 45% of small business foreclosures are tied to the owner or a key employee suffering an unforeseen serious illness or disability. It costs very little to protect your business from these unfortunate realities with a properly designed policy.
While you may never be able to replace key people, key-person insurance can be used to keep lines of credit open, train another person for the same skills and expertise, and help assure the completion of ongoing projects and initiatives. If necessary you can have funds available to transition out of the business in a worst-case scenario. If you have a business partner(s), it is smart to have a buy-sell agreement and a disability buy-out agreement. This will protect all parties involved and prevent unnecessary confusion and turmoil when injury, sickness or untimely death happens.
If you have not already done so, you should consider establishing a qualified retirement plan to help you prepare for your future, and reduce the taxes you pay today. There are many ways of designing both qualified and non-qualified plans. We will work with you to determine the appropriate strategy for you and your business.
Continuation Strategies
Your business provides current income for you and your family, may be the primary source for your retirement income, and eventually may become a legacy for your children. Some things that you need to plan for are:
- How to transfer your business to a family member or successor owner.
- Protect against the loss of a co-owner or key employee.
- Reward and retain your best people.
- Ensure your retirement security.
- Provide estate equalization for family members who will not have a remaining interest in the business.
Contact us today for a free consultation!