Entrepreneurs focus squarely on their businesses when it comes to finances. However, protecting personal financial interests is just as important. A comprehensive financial plan for wealth accumulation is especially important for business owners with spouses and children. But successful entrepreneurship usually leaves precious little time to focus on investment essentials such as wealth management and investment planning.
MDL works with each of our entrepreneur Clients to design tailored financial and wealth management plans. Financial plans for business owners have four foundational pillars:
- Wealth accumulation
- Eliminating avoidable tax burdens
- Wealth preservation
- Wealth distribution to themselves, their family, estate and charities
Successful wealth management strategies demand refined allocation of personal financial resources to grow assets to their fullest potential. Our wealth accumulation strategies integrate assertive tax optimization strategies with financial and investment plans. Tax optimization grows assets by allocating them to tax-efficient accounts such as RRSP and TFSA, diversifying account types, balancing tax-efficient investments with other instruments, and other tax mitigation strategies.
Naturally, success in wealth accumulation requires sound investment advice. Our Client’s situation, appetite for risk, and life goals frame and set the boundaries for their tailored investment strategy.
Some Clients desire pronounced portfolio growth and seek a mix of vanilla and semi-exotic investments. Other Clients are comfortable with a more conservative approach that emphasizes stable, long-term returns. Whether saving for retirement, new ventures, or building reserves for extraordinary family expenses, MDL will design a financial plan to bring these goals home.
MDL investment strategies include optimizing asset allocation, portfolio diversification, and account structuring and restructuring whenever required. MDL will rebalance asset allocations periodically to ensure that our Client’s plan is performing to expectations or to adjust for lifestyle or business changes. Our ultimate goal is to offer business owners a comprehensive financial plan that solidly meets their goals and approach to wealth accumulation.
Risk management is essential to a comprehensive financial plan for business owners. Creditor protection shields personal assets from creditor claims. Corporate life or disability insurance can help hire a replacement in case of disability or cover some business expenses.
Entrepreneurs often prefer to save for retirement rather than relying on selling the business for retirement income. This way, they can pass the company on to their children. An MDL financial plan will work precisely toward that goal through an estate planning element of a comprehensive financial plan.