Skip to main content

Check out our 3Q2024 Market Review and Investment Outlook for the remainder of 2024

Christy Brothers Photography 700px

Business Owners: Taking Care of Your Most Important Wealth Management Asset is Like Playing Guitar

Photo of author, Dino Giovannone, CRPS®, CPFA®.
Dino Giovannone, CRPS®, CPFA®
Financial Strategist

When I'm not working with clients and helping them reach their retirement goals, I enjoy listening to music and playing my guitar. In fact, during my early adulthood (circa mid-1980s), I was a musician touring the U.S. with my rock band, The Toys, and opening for "newcomers" like Jerry Garcia of the Grateful Dead.

Playing guitar and helping business owners craft a successful wealth management strategy may seem very different -- but actually they share a common thread.

Just as a guitarist needs to fine-tune each individual guitar string to create that well-blended and balanced sound he desires, so too must business owners consider each and every asset they own and make the necessary adjustments (fine-tuning) as the market changes to create a well-balanced wealth management portfolio that successfully leads them to their retirement goals ("Stairway to a Good Life" so to speak).

Sounds logical, right? Unfortunately, experience tells us that business owners all too often make the same mistake. When discussing their wealth management strategy with their advisor, they focus solely on their personal assets and fail to take into account the greatest asset of all: their business. The business, in fact, should play a key role in one's planning, especially if that business is susceptible to market volatility.

Case in point, let's say you are the owner of a Deep Sea Fishing Tours company in Myrtle Beach, SC. When the economy is strong and on the upswing, you see your reservations list fill up with happy-go-lucky vacationers and corporate groups. But if the economy is sluggish and people are cutting back, do you see any impact on your bottom-line? Have you planned for alternative actions or corrections in other aspects your portfolio to absorb such a risk?

These are the "must have" discussions that should take place between business owners and financial advisors. The critical takeaway for business owners is a simple one: Your business is not a separate aspect to your wealth management portfolio and should not be treated as such; rather it is the bridge that holds all the guitar strings in place.

I encourage you to read the article,"Asset Allocation and the Business Owner: Is Your Wealth Management Strategy Ignoring Your Biggest Asset" as it digs much deeper into this issue. Feel free to call me or any McKinley Carter advisor with any questions.

{{cta('f4d919cf-9c18-4d3c-b6d9-0387f9fdcc54')}}

Photo Credit: @ChristyBrothersPhotography

Related Insights
Crypto Blog AMH DEC2024

The Rise of Cryptocurrency: Exploring the Future of Digital Money

Cryptocurrency has garnered significant attention in recent years, becoming a hot topic of discussion in both financial circles and politics. But what exactly is it? And how does it work? Learn more about this digital currency and why it matters in today's financial landscape.

Read More
JAE Blog Trusts and Probate Dec2024

Bypass Probate with a Trust

Generally-speaking, any asset with a directly named beneficiary is excluded from the probate process, such as 401(k)s, IRAs, life insurance policies, investment accounts with a transfer-on-death (TOD) registration, and bank accounts with a payable-on-death (POD) registration. In the event one of these account-types fails to name a beneficiary, that account would be transferred through the probate process. There are also key advantages to using a trust to avoid probate. Learn more.

Read More
NLG Blog Single Ladies

Attention Single Ladies: Financial Planning for ♀️ne

More and more women are becoming proactive when it comes to their financial futures, whether they find themselves suddenly without “a ring on it” or simply choose to maintain their independent lifestyle. Whatever the case, financial planning for a single woman differs from couples in a variety of ways due to income dynamics, financial responsibilities, and life goals. It’s important for single women to be aware and to understand these factors that affect their financial plan and future retirement. Learn more.

Read More
Play