Recently, Jason Noble, CFP®, RICP® and Ryan Shannon of Prime Capital Financial in Charleston, South Carolina appeared on ABC’s Lowcountry Live hosted by Tom Crawford. At the outset of the segment, both Jason and Ryan agreed that Prime Capital Financial’s team approach is an important aspect of their work.
As Jason Noble noted on the show, when Prime Capital Financial first meets with a couple that comes into their office in Charleston, having two advisors in the meeting allows them to pick up on something one of them may have missed. Then later, getting together as a team allows them to go through multiple “what-if” scenarios. Just being able to have a couple of different sets of eyes on every client’s situation that the firm is working with can help make financial plans more robust and comprehensive.
The financial advisors at Prime Capital Financial in Charleston do a lot of work with retirees and individuals transitioning to retirement. They also provide help to business owners.
Ryan Shannon discussed one of their business owner clients who sold their business for around $4 million, which they will receive over the course of a four-year period. Rather than be able to just take that cash and invest it, then withdraw 4% a year for a cool $16,000 per month to spend in retirement, it’s much more complex than that. A lot of taxes can be owed without proper planning.
In fact, it’s important to plan ahead by working with a team of financial advisors and accountants who can help you minimize the effects of taxation on the sale of such a large asset. Your professional team can potentially help you find ways to offset some tax liability. (You may want to look for the designation “certified exit planning” if you are a business owner.)
Rather than Uncle Sam being your biggest business partner when it comes time to sell and retire, your team of professionals can help you engineer a plan that will have you owing a fair and legal amount of taxes, but not an excess amount that potentially could have been mitigated.
For instance, some clients may want to use donations to nonprofit organizations to help offset taxes, perhaps even utilizing a giving trust that could allow some beneficial tax write offs. Other types of trusts might also come into play, depending on your goal.
Consider harvesting the value of your business while you are working—before you sell.
Ryan warned business owners that a majority of businesses often don’t sell at all, so contingency planning is also important. He likened the firm’s approach to a three-legged barstool comprised of business planning, financial planning…and also personal planning.
Think of it this way. If you are like many business owners and you are working 60, 70, 80 hours per week, you must really begin to think about what you will do after you exit out of your firm. How will you fill that time and void in your life? This is where the personal aspect of retirement planning can really help, and it’s too often overlooked.
If you would like help planning for retirement, or you are a business owner looking to create a retirement and exit plan, please reach out to the financial advisors at Prime Capital Financial in Charleston. You can reach us at (843) 743-2926.
This information does not constitute legal or tax advice. PCIA and its associates do not provide legal or tax advice. Individuals should consult with an attorney or professional specializing in the fields of legal, tax, or accounting regarding the applicability of this information for their situations.
Advisory products and services offered by Investment Adviser Representatives through Prime Capital Investment Advisors, LLC (“PCIA”), a federally registered investment adviser. PCIA: 6201 College Blvd., Suite#150, Overland Park, KS 66211. PCIA doing business as Prime Capital Financial | Wealth | Retirement | Wellness.
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