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succession plan getting started

Business Succession Planning: Getting Started

The best time to have a succession plan in place is the day you start your business. If you do not already have a succession plan in place, today is the day. While many business owners believe getting started is difficult, it is quite simple. The majority of people think it can wait because it’s too big of a topic to cover. When creating a plan, remember to keep it simple and aim for progress, not perfection.

First, business owners need to consider what would ideally happen under two scenarios, retirement and death. The first is easier to think about for a lot of people, so we’ll start with that one and cover death in another post.

When considering retirement, business owners should think about it at least three to five if not ten to twenty-five years in advance. According to the Department of Labor, it is never too early to start planning for retirement. First, talk with your advisors and family, 3-5 years out. Your team of advisors should include your CPA, Attorney, and Financial Planner.

Conversation Starters for Your Team of Advisors:
  • What is my business worth today?
  • How much money do I need in retirement?
  • What can I do between now and my retirement date to build the business valuation?
  • What do I want to happen with the business when I retire?
    • Am I passing it to the next generation of family?
      • Will it be a gift?
      • Will it be bought with cash or over time?
    • Am I going to sell it?
      • Who are the potential buyers – individual buyers, financial buyers, or strategic buyers?
    • Should I let the management team run it, but I will own it still?
      • Are they capable?
      • What type of incentives do I need to put in place to make this work?
  • What am I going to do in retirement?
    • Am I going to stop working completely?
    • Will I do some consulting or gig-economy type work?

This is the starting point. Of course, there are many subsets of questions that will drive the conversation. Discuss these topics with your family to ensure everyone is aligned about what retirement looks like from a timing and lifestyle perspective. These questions can lead down many different avenues. Your team of advisors will guide you down the path that best fits your goals. Business succession planning is far from one-size-fits-all plan and more like a custom “one-size-fits-one”. Build a plan to satisfy your desires, needs, ambitions, employees, and family.

Not sure if you have the right team of advisors in place to help? Contact us today!

Introducing Guidance Planning Strategies (GPS) For Wealth Management

LBA Haynes Strand is proud to introduce a new financial planning program for all of our clients. The tool is called GPS which stands for guidance, planning, strategies, and is offered through our wealth management affiliate, HK Financial Services. It allows us to work with our clients to assess their current financial situation as well as project what it could look like in the future.

GPS is a powerful program and experience because clients can keep track of their financial information while being able to see their “financial life” on a screen through images, charts, and graphs. GPS helps us highlight and discuss questions such as:

  • When might I be able to retire?
  • Will we have enough money in retirement?
  • What could my cash flow be like at retirement?

We incorporate tax and financial planning into the process to make certain our clients’ plans are on track and managed efficiently for tax purposes.

If you are interested in learning more about our GPS program and discussing your financial future, do not hesitate to contact one of our office locations today!

LBA Haynes Strand Wins Top Wealth Management Excellence Award

North Carolina CPA firm, LBA Haynes Strand, PLLC has been awarded the 2015 Top Wealth Management Excellence award from HK Financial Services (HKFS). LBA Haynes Strand earned this award by helping clients with strategic wealth management planning.

LBA Haynes Strand was founded on the belief that personal attention, trusted advice, and quality services are key elements to helping clients succeed. In order to further clients’ success, the Firm decided to designate HKFS as their preferred service provider of wealth management services.

This strategic partnership with HKFS provides independent and objective financial services to all clients. HK Financial Services is a Registered Investment Advisor, managing over $1.7 Billion for the clients of its 65+ CPA firms, while providing insurance, brokerage, and retirement planning for its CPA affiliate clients. LBA Haynes Strand is proud to be a part of this partnership.

To learn more, visit our Wealth Management page or contact any of our three office locations!

How Much Should You Save For Retirement?

It’s never too early to save for retirement! While it may sound a bit cliche, it’s true! No matter how long you’ve been in the workforce, determining a retirement plan and regularly reviewing your strategies is of vital importance.

Deciding how much you should be saving for retirement each month can be confusing. Check out the savings plan below for a helpful guide on how much to set aside for retirement. Keep in mind that your plan should offer immediate tax benefits as well.

How Much Should You Save?

Number Of Years Until RetirementEstimated Monthly Savings Needed Per $1,000 Desired (assumes 10% return)
15$ 239.23
16$ 210.97
17$ 186.22
18$ 165.02
19$ 146.63
20$ 130.55
21$ 116.41
22$ 104.06
23$   98.11
24$   83.33
25$   74.74
26$   67.07
27$   60.28
28$   54.17
29$   48.73
30$   43.88
31$   39.51
32$   35.61
33$   32.10
34$   28.95
35$   26.12

The sheer number of retirement plans that are available can be overwhelming. How do you select a plan that will best provide for you at the time when you need it most? Is a combination of plans more suitable?

Are you ready to save for retirement? The partners and staff at LBA Haynes Strand are eager to help you choose the retirement plan that makes sense for you. Our team can also advise you on how changing tax laws will impact your current plans. Ready to discuss your future? Call or email us today for a FREE consultation!