The Importance of Building Your Wealth Management Team
Many entrepreneurs believe that business success equates to financial security. But this is only partly true. Without a solid plan and sound advice, these same entrepreneurs risk paying too much tax, neglecting effective retirement and exit planning, or worse, failing to pass on their wealth to the next generation.
As an entrepreneur who wants to develop their business while ensuring the growth and protection of their wealth, putting in place a wealth management team made up of different experts should be one of your top priorities.
What Are the Benefits of Working with a Wealth Management Team?
A wealth management team ensures that the success of your business translates into long-term financial security for you and your family by drawing on expertise from various financial disciplines. Working in partnership, the experts who make up your team align your business and personal finances to ensure that your tax strategies, investments, insurance, cash flow, and debt management work in harmony to minimize your risk and maximize your financial growth.
The synergy between various professionals allows you to strategically reduce your tax liabilities while protecting your assets against economic fluctuations, legal liabilities, and unforeseen events. An experienced team also ensures a seamless succession process that preserves the continuity of your business and your individual financial security through investment and retirement strategies that promote sustainable financial independence.
Many entrepreneurs underestimate the value of a cohesive wealth management team until faced with a costly financial oversight. For example, one business owner reinvested heavily into their business, achieving significant growth, but lacked proper tax planning. This oversight led to missed opportunities for tax-efficient corporate structures, costing them tens of thousands in avoidable taxes each year.
Conversely, another entrepreneur worked proactively with their wealth advisor and succession lawyer, drafting comprehensive shareholder agreements and establishing trusts well before retirement. As a result, they seamlessly transitioned the business to their children, preserving wealth and minimizing disruption.
Who Should Be on Your Wealth Management Team? |
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A strong wealth management team is not just one person—it’s a group of experts who bring specialized knowledge to different areas of financial planning.
1. Wealth Advisor (Your Strategic Partner)A wealth management advisor represents your interests first and foremost, ensuring that all aspects of your wealth management strategy are consistent with your professional and personal financial vision, both immediate and long-term. To draw a parallel with ice hockey, your wealth management advisor is your team’s coach. Not only do they act as your guide, but they also work closely with the various members of your team to develop a comprehensive solution that optimizes both your tax efficiency and wealth growth while mitigating your risks. They basically help coordinate everything from tax and investment planning to estate and insurance planning. They also help you plan for major life transitions, such as starting a family, retirement, and business exits. 2. Tax AccountantIf a wealth management advisor is your team’s coach, a tax accountant is your goalkeeper. This professional is invaluable to entrepreneurs, helping them develop tax-efficient financial strategies that help reduce corporate and personal tax liabilities. Working with the other experts on your team, including your wealth management advisor, he or she is involved in important decisions that impact your tax efficiency, including investment choices, inheritance, trust creation, charitable giving, intergenerational wealth transfers, and more, to optimize your savings while remaining compliant with regulations. 3. Estate and Succession Planning LawyerYour business may be one of your greatest assets, so when transitioning ownership–be it to family members, partners, or third parties–proper legal planning must occur to protect it and its ownership. An estate and succession planning lawyer is your team’s defenseman, protecting your business assets and your wealth transfers from potential risks by drafting critical legal documents such as wills, shareholder agreements, and buy-sell agreements. They safeguard assets in trusts to reduce tax burdens while simultaneously creating seamless transfers that preserve wealth for future generations. 4. Investment AdvisorEntrepreneurs typically hold most of their wealth within their businesses, making diversification essential to financial security. The investment advisor helps you develop a balanced portfolio, including stocks, real estate, bonds, and corporate investments for long-term financial growth. They are your attackers. They maximize your returns while controlling your risks and protecting your personal wealth from the volatility inherent in business ownership. By leveraging corporate investment structures, an investment advisor can also help optimize tax efficiency, allowing for better financial planning overall. 5. Insurance AdvisorThe insurance advisor plays a key role in wealth preservation and tax planning. They are your physical player who steps in when risks arise. They help you protect your business and your family from unexpected events that could threaten the stability and continuity of your business, as well as your personal income. In addition to various types of individual insurance policies, the insurance advisor specializes in company-owned insurance products that help protect your business and save taxes at the same time. |
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Building Your Wealth Management Team – Where to Start?
The first step in building your wealth management team is identifying your financial goals. It is essential to have a clear understanding of your priorities before adding any new professionals to your team.
Once your goals are defined, assess your current team. Do you already have a tax accountant? An investment manager? Do you need succession planning, risk management, or investment diversification? You will most likely need a wealth management advisor to coordinate all aspects of your financial strategy with the rest of your team.
The next step is to start looking for experts to complete your team. Assess their expertise and credentials, and contact or meet them to learn more. If you are looking for a wealth management advisor along with other experts, know that wealth management firms, like the St-Georges Group, offer a comprehensive range of services that can help you fill the gaps in your team. Select a wealth management advisor you trust and feel comfortable with, as they will come to know every aspect of your life – financial situation, aspirations, family dynamics – to help you make the best decisions for your situation.
At The St-Georges Group, a CI Assante Wealth Management firm, we help business owners build customized wealth management teams that support business success while securing personal financial independence. We ensure that your strategies are regularly reviewed and adjusted as your circumstances evolve, emphasizing ongoing management rather than a one-time consultation. Contact us for a confidential consultation to discuss your financial goals and dreams.
