Creating Financial Independence
Many business owners see their business as their retirement plan – a means of one day raising capital from its sale to fund a comfortable family life. Whether this plan will eventually come to fruition depends on a wide range of factors, and it can often be something of a gamble. With appropriate financial planning, however, your financial dependence on your business can be reduced.
One sensible course of action is to extract profits steadily, investing them tax-efficiently in an appropriate environment such as a pension. While this can help build up assets outside the business, the value of investments will vary over time and the benefits of any tax planning will depend on your individual circumstances and the rules in force at the time. There are other options available too, and our expert advice can help you make the decision that’s right for you. It is important to note that as the value of investments can rise and fall, positive returns are more likely if you invest for the long term, but this is not guaranteed and you could get back less than you invest.
Furthermore, tax treatment depends on individual circumstances and may change over time. The value of any tax benefits or reliefs will therefore vary from person to person and cannot be guaranteed.
Protecting Against Future Risk
No one enjoys contemplating serious illness or death, but it’s important to protect your business and personal finances in case they occur. With sound financial planning, you can make sure that the people who benefit in the event of unforeseen circumstances are those you’ve chosen rather than HMRC. The extent to which this can be achieved will depend on the arrangements put in place, your personal circumstances and the tax rules applying at the time.
Through long-term planning, our service will help protect your financial wellbeing no matter what happens in the future. When it comes to financial protection, there’s much to consider, but with a robust plan in place, you’ll be well equipped to deal with the inevitable bumps in the road ahead. While planning ahead can improve your financial resilience, no plan can remove every risk or guarantee a particular outcome.