Why You Need a Financial Planner as a Business Owner

Financial planning is beneficial for everyone, but for business owners, the benefits grow drastically. Since your financial situation is much more complex, you can’t find the answers to your questions by searching the internet. This is where you need a financial planner to come in and help guide you.

How Having a Financial Planner Can Save You Money  

Whether it’s coaching you through market volatility, saving you tax, constructing your debt strategy, or building your legacy, the cumulative value a financial planner provides far exceeds the cost.

Financial planners take care of more than just investment or insurance. We look out for you and your future from a holistic perspective, considering all the factors that affect your finances.

At Ocean 6, we take into account the long-term impact of your goals when making recommendations.

Through these client stories, we’ll illustrate what it’s like to have a financial planner on your team and the thousands of dollars in difference it can make.

Client Story 1: Organizing Finances to Purchase a Bigger Home

A client had a plan to purchase a bigger home, but he felt unsure if they could afford it.

During the Blueprint process, we spent hours building out a new goals-oriented cashflow plan with debt management strategies. It allowed him to make larger mortgage payments while still having family adventures and luxuries. More importantly, the family could spend more time together because they knew exactly how much they needed to earn and they didn’t have to put on additional stress to make this happen. 

Client Story 2: Purchasing a Vacation Home as an Investment vs. for Pleasure

A successful business owner wanted to purchase a vacation home. It would mainly be an investment, but still a place to enjoy. The property was not a small investment, so we needed to make sure the proper structure was put in place or he could end up paying a heavy tax bill to own this home. After understanding his current corporate structure and financial position, it was clear the property should be owned in his holding corporation instead of his personal name. This saved him over $100,000 in tax because in this situation, buying the home using corporate dollars was much cheaper than using personal dollars. 

(Want to make the most of your investment property? Here are 3 ways to maximize its return

In a similar situation, another client wanted to purchase a vacation home to relax and host her clients and friends. However, after going through her financial situation, it was much more beneficial to own the home in her personal name. The main reason was that the vacation home was more for pleasure than an investment and since the money for the purchase was already in her personal name, it was wiser to purchase the property personally. This structure will save thousands of dollars in personal taxes for the next 20 years.

At face value, both clients wanted to purchase a vacation home but since the purpose of the home and their financial situations were so different, the recommendation was personalized to each of them. There’s no one size fits all solution here. This is why you need a financial planner to help you see all your blind spots.

Client Story 3: Taking Money Out of Corporation to Put Aside for Tax Season

A client wanted to know their average tax rate so they can take money out of their corporation and have enough funds come tax season. It was responsible for them to think ahead, but we advised the client not to take out funds from their corporation to put away for tax.

Instead, only take out the funds from the corporation when the taxes are due. This allows for a more efficient cashflow and rather than worrying about opening an additional savings account, you keep the corporate dollars inside the corporation and avoid unnecessary withdrawals. 

You could find at the end of the year some funds could be put back inside the corporation or you come into tax credits or deductions. By taking out additional funds from the company to set aside for taxes, you may end up taking out more than you need and paying too much tax. 

(Here are some important tax planning topics you don’t want to miss)

Although, it’s important to have enough funds to pay tax, we can manage that much better inside the corporation and withdraw it when taxes are due.

Seemingly small adjustments and strategies can add up to bigger tax savings and planning opportunities. Since this client had already gone through our Blueprint process, what they really needed was ongoing support with their financial plan. It’s not enough to just build a financial plan, we’re long-term partners in your life to support you and answer ongoing questions you have with your ever-changing life and finances.

Watch the video to hear about these client stories

There are many more examples of this, such as how you should buy a car or how to determine the proper risks related to an investment opportunity. 

(If you’re wondering whether you’re getting the right financial advice, here are some questions to ask)

Working with a financial planner gives you access to a professional whenever these questions come up for you and your family. If you want a financial planner by your side so you can confidently make informed decisions, book a call. We’d love to help.

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