Why Do Small Business Owners Need a Financial Advisor?
As a small business owner, you might ask yourself, "Do I really need a financial advisor?"
top of page
Look for a financial advisor with a strong track record, relevant designations, transparent fee structures, and a fiduciary duty to act in your best interest. It is also essential to choose a financial advisor who demonstrates genuine care for their clients and aligns with your personal values.
Financial Advisor Qualifications
Most fiduciary financial advisors have fees based on assets under management (AUM). Typically, these fees are structured as a percentage of the total assets they manage for you, with the percentage often decreasing as your asset level increases, or as a flat annual fee.
Paying these fees is an investment in your financial future.
A skilled financial advisor can provide valuable guidance, helping you make informed decisions that align with your unique goals.
This benefits you in the short-term and long-term because the help you receive covers all your financial bases. Instead of playing ball by yourself, you’ve got an entire team helping you to play the game!
When working with a wealth management team that helps you with tax planning, estate planning, financial planning, and investment management, the services you receive typically far outweigh the cost.
Just make sure you work with fiduciary financial advisors who are obligated to give you the best advice at all times and always act in your best interest.
It’s important that the advisor's fee structure is transparent, easy to understand, and aligns with the services they provide and your financial goals.
Costs and Fees
A financial advisor can provide personalized strategies and professional guidance that can help grow your wealth.
On your own, you may not have a portfolio that’s sufficiently tailored to your risk tolerance and goals.
You will also be on your own when it comes to managing tax planning, estate planning, and retirement planning. This partnership allows you to focus on other important areas of your life, saving you the time and effort required for comprehensive investment planning and portfolio management.
Benefits of Paying for Advisory Services
There's no specific net worth threshold for needing a financial advisor. Many individuals seek professional guidance as their financial needs grow more complex.
At 360 Financial, we work with clients who have significant investable assets, typically $1M, or the potential for substantial financial growth.
For instance, if you have significant financial assets and have prioritized investing, our services may be well-suited to you.
When to Get an Advisor
360's proprietary LifeWealth Planning Process allows us to deeply understand your goals and dreams, crafting a customized financial plan and investment portfolio designed to help you pursue them.
360’s financial advisors offer personalized, comprehensive financial strategies with a proactive, client-centered approach and a commitment to your long-term success.
We also partner with Rapacki & Co., a CPA and accounting firm, to provide integrated financial and tax planning.
Serving a variety of clients, including young professionals, business owners, and retirees, our active investment committee strives to make sure your investments are managed effectively and aligned with your objectives.
360's Unique Approach & LifeWealth Process
At 360 Financial, we take potential conflicts of interest seriously and address them proactively.
We maintain clear communication with our clients, transparently explaining any potential conflicts that may arise and how our firm's structure operates.
As fiduciaries, we are legally bound to prioritize our clients' best interests in all circumstances. This commitment certifies that our advice and recommendations are always aligned with helping you pursue your financial goals without compromise.
Transparency and Fiduciary Duty
At 360 Financial, we have extensive experience working with over 1,000 families, including young professionals, retirees, business owners, and executives.
Our team excels in providing comprehensive financial strategies tailored to meet the unique needs of clients in various life stages. We prioritize building long-term relationships and are committed to supporting our clients through every step of their financial journey.
Who 360 Financial Serves
As a boutique wealth management firm, we pride ourselves on our ability to accommodate our clients promptly. You can typically schedule an appointment with an advisor within 72 hours.
Advisor Availability
Financial Advisor FAQ
Business financial planning involves creating strategies for managing a company's finances effectively, including budgeting, forecasting, and investment planning.
It’s crucial to collaborate with a wealth management team experienced in supporting business owners, as they can also assist in developing an exit strategy, optimizing tax strategies, and building personal wealth outside of the business.
This integrated approach helps make sure the business is financially resilient and the owner's personal financial goals are also well-supported.
At 360, working with business owners is a foundational part of what we do.
We help business owners with personal financial planning as well as setting up retirement plans for their employees.
Rapacki & Co, our trusted tax agency partner, can aid with professional bookkeeping services. As well as at our Elk River location, 360 Financial can assist with comprehensive buy-sell insurance solutions to support robust risk management strategies.
Financial Planning for Businesses
Business owners need a financial advisor to navigate the complexities of financial operations, plan strategically for growth, and secure long-term financial stability.
Given their busy schedules, business owners may overlook crucial aspects like personal financial and retirement planning.
A skilled financial advisor can help maintain a diversified investment portfolio, establish a succession plan, and comprehensive estate planning. This professional support allows business owners to focus on core operations while their financial matters are skillfully managed by a dedicated team.
(There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk (26-LPL).
Financial Advisors & Planners for Business Owners
The purpose of a financial advisor for business owners is to provide experienced guidance across all financial areas, including managing finances, planning for growth, optimizing tax strategies, and promoting long-term financial health and stability.
They also play a crucial role in facilitating comprehensive long-term planning and providing accountability in financial decision-making.
This allows business owners to make informed choices that align with their goals and lead to sustainable business success.
Financial Guidance for Business Owners
Business Financial Planning FAQ
You can typically expect to pay a wealth manager between 0.65% to 2% of managed assets annually, which should include comprehensive financial planning services.
Typically, the greater the assets under management, the lower the cost. A skilled team actively managing your portfolio can seek opportunities for further returns in the market, helping your financial strategies adapt to the increasing complexity of your assets over time.
Cost of Working with a Wealth Manager
Having $500,000 or more in liquid investments is a strong indicator that consulting a financial advisor would be beneficial.
If you have $1 million or more in investable assets, it may be risky to invest on your own. It’s important to have a financial plan, do critical tax planning to prevent overpaying your taxes and losing money, and establish an estate plan.
It’s also important that your investment portfolio effectively reflects your risk tolerance, values, and goals. Diversification is the key to managing and growing your wealth over the long term.
When to Get a Wealth Manager
A typical fee for wealth management ranges from 0.5% to 2% of assets under management annually. The greater your assets and the more complex your financial situation, the more value you get from working with a wealth management team.
Cost of Wealth Management
At 360 Financial, we track and report your investment performance through regular Vision Reviews.
During these reviews, we update your LifeWealth Plan and thoroughly discuss portfolio management, providing clear insights into how your investments have performed across various time periods.
This structured approach promotes transparency and keeps you informed about the progress of your financial goals.
Tracking Performance
At 360 Financial, we start with a discovery meeting to understand your unique financial situation, goals, and values.
Using our F.O.R.M. Data approach, we create a personalized LifeWealth Plan and portfolio tailored specifically to you. F.O.R.M. stands for Family, Occupation, Recreation, and Money.
We place a high value on building strong, caring relationships with our clients, so you feel supported and understood throughout the entire process.
After implementing your plan, we provide ongoing monitoring and meet with you 1-2 times per year to review and adjust your plan and portfolio, helping you stay on track towards your financial goals.
Our commitment to your long-term success drives everything we do.
Setting Financial Goals
Wealth Management FAQ
It's advisable to start estate planning at age 18, or as soon as you begin accumulating assets or have dependents.
If you have children, you must have a clear and comprehensive estate plan in place. A will is not enough, it may not suffice to avoid probate, which can be a lengthy and costly legal process.
Begin your estate planning promptly and update it regularly to reflect changes in your life circumstances. Get our Estate Planning Checklist HERE.
When to Start Your Estate Planning
The main steps include:
-
gathering net worth information
-
understanding the implications of death or incapacitation
-
determining your estate planning goals
-
creating essential legal documents such as wills, trusts, and beneficiary designations
-
planning for incapacitation
It's crucial to regularly review and update your plan to verify it remains aligned with your current circumstances and goals.
Additionally, estate planning aims to move towards your legacy goals by structuring how your assets and values will be preserved and passed onto future generations.
Estate Planning Steps
-
Creating a will is specifically about outlining how your assets should be distributed after your death, it is only a small part of estate planning.
Estate planning involves broader considerations such as setting up trusts, naming beneficiaries, planning for estate taxes, and addressing potential healthcare decisions.
Creating a Will vs. Doing Estate Planning
The main purpose of a trust is to manage and preserve assets for the benefit of designated beneficiaries.
Trusts
The major disadvantage of a trust is the cost and complexity involved in setting up and maintaining it.
Additionally, making changes to a trust requires formal amendments, which can add to the complexity. While trusts offer significant benefits in terms of asset protection and control, they may not be necessary for simpler situations.
We recommend discussing your specific situation with a financial advisor or scheduling a call with a 360 Financial advisor to explore how trusts can enhance your estate planning and support your legacy.
Disadvantages of Trusts
The best type of trust depends on your specific needs.
Commonly recommended options include revocable living trusts for their flexibility and benefits, irrevocable life insurance trusts, and testamentary trusts.
Best Type of Trust
Estate Planning FAQ
When you inherit money, you should consult a financial advisor or planner. Take time to plan carefully and consider the tax implications before making any major decisions.
Managing an Inheritance
The first steps should include assessing your financial situation, seeking professional financial advice, and developing a comprehensive financial plan. Consider paying off any outstanding debt and exploring low-risk options like investing in T-bills to secure your assets.
(Government bonds are guaranteed by the US government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value).
Taking Careful Action
A financial advisor, estate planner, or tax professional can provide advice on managing your inheritance effectively.
Seeking Guidance
Sudden Wealth & Inheritance Planning FAQ
While you can benefit from financial planning at any income level, many individuals start seeking advice with $100,000 or more in assets.
Having $500,000 or more in liquid investments is a good point to consider hiring a financial advisor. Professional advice becomes especially critical with $1 million or more in investable assets, as, as you may be overpaying your taxes or holding an excessively risky or under-optimized portfolio.
When to Get a Financial Planner
Yes, paying for a financial planner can provide tailored advice and strategies to help you pursue your financial goals. If you don’t have a financial planner, we recommend that you schedule a call with a 360 Financial advisor HERE.
Getting a Financial Planner
The best choice depends on your needs. It's advisable to work with a financial advisor who also functions as a financial planner.
This dual role provides you with comprehensive guidance, covering both investment management and broader financial strategies. For individuals with substantial assets and high income, seeking advice from a combined financial advisor and planner is crucial for financial management.
At 360 Financial, you get a team of specialists who will help you with every aspect of your financial planning and investment management. Every aspect of your financial situation will be reviewed and optimized.
It’s also critical that you receive tax planning advice and make sure your estate planning is complete.
For those with assets over $1 million, we recommend working with a comprehensive wealth management team that operates within a fiduciary environment.
Financial Advisor vs. Planner
The amount needed varies, but a general goal is to aim for around $1 million dollars in liquid assets for retirement.
Consulting with a financial planner can help you determine a personalized target based on your specific retirement goals and lifestyle preferences.
Retirement Planning
A CFP (Certified Financial Planner) is a professional trained in comprehensive financial planning, including investments, retirement planning, and estate planning.
An AIF (Accredited Investment Fiduciary) has deep expertise in fiduciary standards, prioritizing the financial well-being of clients, employees, and beneficiaries when managing investments.
Designations
Financial Planning FAQ
.jpg)
Schedule a 15-minute call with a 360 Financial advisor to find out if we're the right fit, how we can help you, and how the process works.
Speak with a Fiduciary Financial Advisor
Get the best financial guidance for your exact situation and goals.
No more cookie-cutter solutions or high-cost products.
bottom of page