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Value Creation Blog

Introducing The Financial Freedom Project

Posted by Josh Patrick

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I often go to financial planning conferences, and the topic of planning for business owners comes up. When I listen to the solutions and methodology I see presented for business owners I often cringe.

You see, planning for a private business owner is not like planning for someone who works for IBM. It's much simpler planning for someone who is an employee versus someone like you who's an employer.

For the past several years I've been focusing on planning for business owners that works and provides a roadmap to financial freedom. 

Too often people like you plan on your business doing more than it will in retirement.

You might be wondering what I mean by this. It's very simple. If you're like many business owners I've worked with you put too much confidence in the value of their business when it comes to you reaching financial independence.

The Financial Freedom Project is designed to help you know where you are on the road to financial freedom. We find there's a very good chance that what you thought was going to take you to retirement (your company) is not really going to do it.

You might need to fix some things that are wrong in your business. You might have to assemble some outside savings vehicles while you're still working. Or, you might need to find some way of buying the real estate you operate your business.

Our Financial Freedom Project is designed first to help you know where you are on the road to financial independence and then if you're not there yet, come up with a way for you to achieve financial independence.

Let's start with the value of your business.

Setting an incorrect value of your business is the biggest mistake I see when it comes to planning for a business owner. Too often people in the planning profession will take your value and run with it. I rarely find that the value a business owner places on their firm is an accurate one. Instead, what I see is owners often over-value their business, and they overvalue by as much as two or three times it's worth.

I don't want you to be in that position. I want you to have a value that is close to what your business would be worth. And, the biggest question when it comes to the value of your business is who's going to be the buyer.

You see, who the buyer is can impact the value of your business by a huge margin. If a strategic buyer buys your company, you'll get more money. If the buyer is a financial buyer, the value will be significantly less.

In the Financial Freedom Project, we give you an estimate of value based on five transition methods. These values give you an idea of what your business is worth and what you're likely to get paid when it's time to leave.

How about taxes and fees.

The amount of taxes and fees that are expected to be paid is the second mistake I see made in plans for business owners. In the Financial Freedom Project, we'll help you understand what you'll have after paying taxes and fees to transfer your business.

I find that most businesses lose between 35% and 60% of their business value depending on how the deal is structured and what type of fees accompany the sale.

If you don't adequately account for this very large number when you think about selling your business, you might be in for a nasty surprise when you put your business up for sale, or even worse, after you've sold your company.

Now, let's move on to personal expenses.

Most private business owners I know run at least some personal expenses through their business. When you transfer your business to a new owner, you will no longer have what I call a pre-tax lifestyle. Those personal expenses the company paid will no longer be available.

When it comes to how much money you'll need in retirement, you will want to make sure that you allocate those pre-tax expenses to your retirement expenses. I don't know anyone who likes surprises. Instead, we'll make sure we catch those expenses and make sure they're accounted for in your Financial Freedom Project.

What happens if I get bad news from my report?

This is where the Financial Freedom Project is different from any financial plan you've seen. Most planners would say your plan fails and not have a full understanding of what you can do to fix it.

Your project will not only tell you where you stand but also will give you strategies that you can use to fix it. You see, I'm a business owner and have faced many of the issues I see other business owners face.

I've helped hundreds of business owners think about their business in a strategic way that has gotten results. I'm an expert at qualified retirement plans (401(k)'s, profit sharing plans and cash balance plans) that help you pre-fund your retirement.  I've spent years studying and helping business owners implement plans that successfully get them to financial freedom.

It's usually not very difficult to help you develop solutions that will get you to financial freedom. You just have to know what the possibilities are.

I want you to learn what you can do to create a business that you love while you're working and one that will allow you to leave with the financial freedom when you're done. If you do this mindfully, there's a good chance you'll be successful. And, I want you to be successful.

If you're interested in applying to join The Financial Freedom Project, click on the button below and we'll set a time for us to talk and see if this is the right thing for you.

Topics: retirement planning, financial planning, retirement planning for business owners, financial freedom project

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