One of my favorite jokes is I would like to become emperor for a month and fix all of the problems we have in our country. It’s not like I have a crystal ball, but I think there are some obvious things politicians and the talking heads on TV consistently miss when it comes to dealing with the promises were not going to be able to keep (at least the present ones we have).
Here are my 4 favorite things I would like to see changed to fix our economic problems:
If you work with an Exit Planner, they will tell you there are four ways to leave your business. Often, during this conversation your planner will lead you to the conclusion that all four are open and the decision is up to you.
Business owners always concentrate on their business when they think about building wealth. For a business owner who is still running their business, this is appropriate behavior.
I’ve often written about my concern that we have developed an entitled generation with our children. They haven’t learned how to lose and they often don’t handle constructive comments (otherwise known as criticism very well.)
I often see parents put a great deal of pressure on themselves to make sure their children have all of the things their neighbors have. I’m often not sure whether this is for the parents well being or their children’s. None-the-less that’s a situation I see on a regular basis.
One of the questions I am often asked is “how do I know if I’m financially independent?” Many times our Clients believe that their business is all they need to concentrate on to make sure they stay on track to become financially independent.
Adam Aardvark was taking his first steps towards The Objective Review. He was sitting with his advisor taking him through the process and was telling his advisor that his financial future was set. When he sold his business, he would have all of the money he needed for a very comfortable retirement.
Today’s environment is not a good one for selling your business. In many instances it’s better to sell your business to key employees and management than to a third party.
The goal when selling to your managers is to reduce the total tax cost of the transaction. We know that when we do a stock sale, the maximum amount of total taxes are paid. This is because the buyer uses after tax dollars to pay for stock.
This is a guest blog entry by Peter Montoya, one of the better minds in the investment business. I hope you enjoy his comments.