Wealth Management Birmingham for Business Owners

As a high net worth business owner, it is second nature to expend all your energy on growing your business. Despite the difficulties you face, you want to keep pushing forward and exploring new avenues of success. As important as this is, you must also think of retirement. How will you spend your time post-retirement? How much passive income will you need to generate to sustain your current lifestyle? If you plan to transfer your business interests to someone within the family, then who is the most suitable person to take your place? At Pillar Wealth Management, we offer high net worth wealth management planningto help you find an answer to all these questions. Wealth management, Birmingham lies at the heart of successful retirement planning, and with the right financial advisor, you can create a robust retirement plan that secures your future. If you are a business owner with over $10 million in liquid assets, click here to read our complete guide to choosing a suitable financial advisor.

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Pillar Wealth Management works with individuals having $5 million to $500 million in liquid assets. We offer wealth management for pre-retirees, Birmingham. Our wealth advisory services include financial planning, tax planning, estate planning, insurance planning, portfolio design, asset allocation analysis, and more. We understand that retirement planning as a business owner can be a challenge and take it upon ourselves to offer comprehensive strategies that help you achieve financial serenity and retire securely. To learn about our retirement income planning services, click here to book a free consultation with us.

In this article, we will discuss how high net worth business owners benefit from holistic wealth management and retirement planning. Let’s begin.

Table of Contents
Do High Net Worth Business Owners Need a Financial Advisor for Retirement Planning? Which External Factors Are Most Important for Achieving Retirement Goals? 3 Key Aspects of Wealth Management, Birmingham for High Net Worth Business Owners Work With Pillar Wealth Management to Achieve Your Retirement Goals

Do High Net Worth Business Owners Need a Financial Advisor for Retirement Planning?

In a 2019Business Owner Retirement Readiness survey, Bloomberg reported that as they grow older, most high net worth business owners tend to lose faith in the efficiency of their financial plans and whether they will prove sufficient for retirement. The survey interviewed over 1,000 high net worth individuals that owned a business. Some key findings of the survey include:

78 percent of millennial business owners showed confidence in their long-term investment plans and having access to a stable source of income after they retire.
69 percent of Gen Xer business owners were assured about their investment and retirement income planning.
Baby boomers displayed the lowest level of confidence with only 59 percent ofbusiness owners believing their long-term investment plans are sufficient for achieving retirement goals.

With respect to retirement age and the need for a financial advisor for wealth management and retirement planning, the survey indicated that:

66 percent of high net worth business owners plan to retire between 51 and 75.
13 percent of respondents said they never plan to retire.
15 percent of business owners expected to retire before they turned 50. These were between 18 to 34 years old. An additional 7 percent that planned to retire early were between 35 to 54 years old.
70 percent of business owners surveyed were working with a financial advisor for retirement planning. Among these, millennials were more likely to seek help from a financial advisor than baby boomers.

The survey concluded that business owners working with a financial advisor appeared to be more confident about generating stable retirement income than those who were not.Having a financial advisor can help business owners formulate viable exit strategies, succession plans, and estate plans. All of this helps them achieve their retirement goals.

Which External Factors Are Most Important for Achieving Retirement Goals?

The Business Owner Retirement Readiness Survey reported by Bloomberg asked high net worth business owners about which external factors they deem most important for wealth management. Here’s what they had to say:

Generating Stable Investment Returns

40 percent of high net worth business owners believe that market volatility can interfere with their retirement goals. Given how the market undergoes multiple highs and lows throughout the year, this is a given. Market volatility is particularly dangerous if your investments are concentrated into one type of asset. For instance, if you are investing too heavily in equities but not enough in bonds and cash, then a crash in the stock market can cause some serious damage to your net worth.

How can a wealth manager help:Seeking wealth management, Birmingham can help high net worth business owners make the most of bullish market trends while minimizing losses when stock prices decline. This can be done using carefully curated and diversified investment portfolios that have been tested for risk. At Pillar Wealth Management, we also ensure appropriate asset allocation to protect your wealth. We will discuss this in more detail in later sections.

To learn more about how a wealth manager helps high net worth individuals improve portfolio performance, click here to read our guide.

Economic Stability

As per 50 percent of high net worth business owners, economic uncertainty can also have a significant impact on their retirement income. From global catastrophes such as the Coronavirus pandemic to political instability, various factors can influence the economy, cause the value of your assets to depreciate, and interfere with your retirement plans.

How can a wealth manager help: No one can see into the future. However, thanks to high net worth wealth management planning, you can be better prepared for unforeseen situations that create economic instability. At Pillar Wealth Management, we test a portfolio’s performance during unfavorable conditions by utilizing extensive historical data that dates back to 1925. We refer to this technique as “portfolio stress tests.” These tests allow us to measure how your portfolio will respond to an economic crisis, and we use this information for contingency planning.

To learn more about our risk management techniques for optimal portfolio performance, click here to start a conversation with us.

Health Insurance

25 percent of millennial business owners with a high net worth and 34 percent of baby boomers are also wary of increased health insurance costs as they approach retirement.

These costs can impact your retirement income and prevent you from living the type of post-retirement lifestyle you envision for yourself.

How can a wealth manager help:Wealth managers with expertise in insurance planning can help you choose suitable life insurance and health insurance policies. These can keep your premiums to a minimum while providing you with the coverage you desire. They can also secure the future of your family.

To learn more about choosing a suitable financial advisor that can help with insurance planning, click here to read our short guide.

Diversified Income Sources for Retirement Planning

Selecting the right income sources is imperative for retirement planning as a business owner. Most high net worth business owners rely on diversified sources of income for their retirement fund. According to the survey, high net worth business owners rely on 4 options for meeting their retirement goals. These include:

Retirement savings plan
Investment portfolio
Social Security
Personal savings

A percentage breakdown for how these income sources contribute to the retirement fund of high net worth business owners is presented below.

How can a wealth manager help: A qualified wealth manager can help you make the most of these diversified income sources to introduce more growth in your retirement fund.At Pillar Wealth Management, we help high net worth business owners with strategic asset allocation to ensure their financial security. Depending on your risk threshold, your retirement goals, and the type of lifestyle you desire, we can distribute your wealth across a healthy investment portfolio that consists of cash, bonds, and equities. We also assist our clients with rebalancing their portfolios to reflect their investment objectives and changing market conditions.

Our asset allocation and portfolio rebalancing strategies allow our clients to enjoy stable growth, reduce losses, and realize their retirement goals more easily.

If you are a high net worth business with over $25 million in liquid assets, then we suggest you also order a free hardcover copy of our book to understand the role of asset allocation and portfolio rebalancing in protecting your wealth – The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies For Families Worth $25 Million To $500 Million.

3 Key Aspects of Wealth Management, Birmingham for High Net Worth Business Owners

Besides the aforementioned factors, there are other critical aspects that contribute to wealth management for pre-retirees, Birmingham. At Pillar Wealth Management, we emphasize on the following for retirement planning as a business owner.

Estate Planning

If you have a family-owned business, it’s essential to account for your business assets when drafting estate plans. In such cases, your business may be responsible for a significant portion of your net worth. This can reduce the diversity of your portfolio, and you will have to come up with a suitable strategy to sell the business to a family member or a third party for funding your retirement.

Pillar Wealth Management can offer the help you need for estate planning and protecting your wealth here. To learn more about this, click here to schedule a conversation with us.

Business Transition and Succession Planning

A smooth business transition and succession plan are vital for wealth management, Birmingham. Preparing these plans can be a time-intensive process, so you must get started on one as soon as possible.

Unfortunately, most high net worth business owners get so busy with daily business operations that they find it difficult to establish a foolproof succession planfor ensuring their financial security. You can seek help from your financial advisor, legal advisor, and tax specialists here. Discuss your retirement goals with them so they can create a succession plan accordingly.

A business transition and succession plan also include elements such as the ownership structure, taxes, the price at which you want to sell the business, and identifying a suitable successor. If you are transferring your business to a family member, then we suggest you start grooming them early so they can uphold your legacy and ensure the long-term sustainability of the Company.

On the other hand, if you are selling your business to a third party, then you can discuss your requirements regarding your eventual successor. Once your team understands your priorities, they can work toward finding potential buyers that offer the best possible value.

Remember, a succession plan must be reviewed regularly to ensure it still aligns with your retirement goals and the current business environment. Having a qualified wealth manager, legal advisor, and tax specialist can optimize this process and ensure you have a strong succession plan in place when you choose to sell your business.

Controlling Taxes

You can’t discuss wealth management for pre-retirees without talking about taxes. As a high net worth business owner, we are sure you are aware of the tax implications of selling your business when you finally retire. These gains can lead to a high tax bill, which can greatly diminish the value of your retirement fund.

Depending on the buy and sale agreement between you and the buying party, we can help minimize these taxes in a number of ways. Our wealth management experts can also help you reduce the tax costs associated with capital gains and maximize tax benefits through investment in tax-free bonds and other assets.

To learn more about other critical shifts that can help refine the wealth management process, click here to read our guide.

Work With Pillar Wealth Management to Achieve Your Retirement Goals

Pillar Wealth Management is a fiduciary advisory firm that specializes in helping high net worth business owners with $5 million to $500 million in liquid assets. We understand the difficulties of retirement planning as a business owner and are here to make the process easier for you.

Our wealth advisors have over 60 years of experience in wealth management, Birmingham, and you can count on us to create a retirement plan that keeps your goals at the forefront, lowers your risks, and ensures that you can pursue the lifestyle you desire post-retirement.

To learn about our high net worth wealth management planning services, click here to schedule a free consultation.

Authors

Hutch Ashoo

Chris Snyder

To be 100% transparent, we published this page to help filter through the mass influx of prospects, who come to us through our website and referrals, to gain only a handful of the right types of new clients who wish to engage us.

We enjoy working with high net worth and ultra-high net worth investors and families who want what we call financial serenity – the feeling that comes when you know your finances and the lifestyle you desire have been secured for life, and that you don’t have to do any of the work to manage and maintain it because you hired a trusted advisor to take care of everything.