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Business Investment Management

Most private business owners concern themselves with three types of investing activities:

Having a cash stash for a rainy day
Managing their qualified retirement plan (401(k), Profit Sharing or SIMPLE Plan)
Deciding what is the appropriate investment for any excess cash they might have.

Working with owners of private businesses on investment planning requires that we first understand what strategies, if any would make their lives better. We find that many private business owners like the idea of being able to reduce their income taxes while saving money. This is accomplished through design decisions that are made with their qualified plan.

The second major investment planning issue many business owners work on is how much in marketable securities they should leave inside the corporation. We often assist our Clients in developing scenario plans that help them discover how much cash and marketable securities should be left in the company and why.

When businesses develop excess cash there are decisions the owners have to make. The third leg of investment planning is to help owners decide the wisest use of their cash in order to receive the best return with the amount of risk they are willing to take.

Some of the activities involving business investment planning are:

Qualified plan design for business owners
Due diligence requirements and analysis of retirement plan options
Analysis of investment opportunities with the business
Analysis of held capital within the business
Use of excess cash that is produced by the business
Analysis of periodic distributions versus re-investment by the business
Understanding how outside investments can impact the owner’s ability to leave the business
Analyzing real estate opportunities as a diversification business strategy
Developing a business investment policy statement
Understanding risks and responsibilities of having a qualified plan in the company

DISCLOSURE: Securities and Investment Advisory Services offered through NFP Securities, Inc. (NFPSI), member FINRA/SIPC. Stage 2 Planning Partners and NFPSI are not affiliated.

This site is published for residents of the United States only. Registered Representatives and Investment Advisor Representatives of NFP Securities, Inc. may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all of the products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact the NFP Securities, Inc. Compliance Department at 512-697-6000.

NFP Securities, Inc. does not provide tax or legal advice. Any decisions whether to implement these ideas should be made by the client in consultation with professional financial, tax, and legal counsel.

Asset protection plans should be developed and implemented well before problems arise. Due to the fraudulent transfer laws, asset transfers that occur close in proximity to the filing of a lawsuit or bankruptcy can be interpreted by the court as a fraudulent transfer. Proper structuring of these assets is imperative please seek proper legal and tax advice prior to engaging in re-titling/structuring of any assets. Please note that laws are subject to change and can have an impact on your asset protection strategy.