Eric Nelson

When to sell and who to sell to are significant decisions for most business owners. Transferring ownership of a closely held business may affect many people, including family members, employees, suppliers and the local community. The exit planning process should continuously clarify the stakeholders’ goals, desires and intentions.

Different exit pathways should be evaluated to determine how to monetize business interests. The size of the transaction may warrant coordinating the exit plan with the owner’s estate plan. The advisory team will most likely include a business planning or transaction attorney, a CPA and a CFP®.

The objectives and timeframe influence implementation of the plan. Many exit plans can span years if value enhancement strategies need to be applied. The planning process should be fun and energizing while providing you with peace of mind.

Council Post: Business Owners: Why You Should Have An Exit Plan What is an exit plan, and why will having one usually increase your net worth when it’s time for your exit payday?

Spoiler: There is no "best age" to retire. However, there may be an ideal time for you. Check out our recent blog post on determining your ideal retirement age.

What is the Best Age to Retire? - Financial Advisor South Jersey - Independence Wealth Fiduciary Financial Planner helping business owners, corporate executives, and retirees acheive financial independence. Personal financial planning for the South Jersey and Greater Philadelphia Area.

Tax Loss Harvesting and Why it Helps

What is tax loss harvesting?
Tax loss harvesting is a process where you sell securities in a non-retirement account in order to realize (harvest) the loss for tax purposes. This allows you to deduct $3,000 per year in capital losses, it also allows you to offset any realized gains against the losses. Lastly, you can carry forward the losses into the future to offset future gains.

Why is it more important today?
2022 has been a rough year for investors. A lot of people feel like they “need to do something” when the markets are down. Going through your portfolio and realizing losses might just be that thing to do.

Who should pay attention to TLH?
If you have a taxable brokerage account, especially if you have legacy positions that have large amounts of gains.

Who should ignore this?
Anyone who has the lion share of their assets in qualified retirement plans and IRAs shouldn’t concern themselves with tax loss harvesting because you cannot realize gains or losses in retirement accounts. You should however consider Roth conversions during a market downturn if appropriate.

If you have questions feel free to reach out!

Surprising Ways Gen X and Boomers Are Worlds Apart Financially

Surprising Ways Gen X and Boomers Are Worlds Apart Financially While older Americans proved especially vulnerable to the coronavirus' worst ravages, no age group was immune from the pandemic's economic fallout. All demographics were forced to change their money...