Wealth Management For Small Business

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Cornerstone Wealth Advisors Can Meet the Following Needs of Small Business Owners

  • Buy Sell Strategies

Having worked with thousands of small business owners over my 35 year banking and financial planning career, I have found that business owners are focused on growing their business without giving much thought to their exit strategy. When I ask the question “What is your exit strategy?” very few have an answer. An essential part of the second half game plan for the small business owner is planning their exit, identifying a key successor if there is one available, and structuring with one of our business attorney resources a buy sell agreement which is usually funded by cash value life insurance. If a key man cannot be identified that can take over the business then we introduce the owner to a small business broker and develop a plan to get the business positioned to sell.

  • Key Man Insurance

Key man insurance is used to fund the replacement cost of loss of a key employee or to fund a buy sell strategy. In some cases the business owner is looking to make sure their spouse will receive value for the years of sweat equity they have invested when they are gone, since there is often no liquidity for the small business’s equity without a good buyer.

  • Business Valuations

Whenever we need a business valuation to substantiate a buy sell agreement or the sale of a business, we will refer the valuation to one of our subject matter experts familiar with the industry involved.

  • Business Re-capitalization

Most businesses fail to succeed because they are successful and their sales growth outstrips their ability to generate sufficient working capital to fund the growth. Whenever during the planning process we find a need for re-capitalization, we will work with the client to find a reputable business lender or equity partner.

  • Family Owned Business Succession Planning

Business Succession Planning within the context of a family estate plan requires bringing an estate planning attorney onto the team who has expertise in transferring business assets to future generations in the most tax efficient manner. If the family wants to keep the business or specific assets in the family for future generations, dynastic planning may be involved. During my banking career I have seen many businesses forced to sell because of improper estate planning.

  • Deferred Executive Compensation Planning

For business owners who are looking to defer more retirement savings than permitted under qualified plans, we can help you look at Non-Qualified Deferred Compensation Plans for Key Executives. Participation rules are more flexible than under qualified plans in exchange for the lack of tax deferral on the contribution amounts.

  • Qualified Retirement Plans

We have worked with small business retirement plans including, Individual(k), 401(k), Simple 401(k), Profit Sharing, Money Purchase, Roth 401(k), Defined Benefit, Roth IRA, 403(b) and 457 plans. We believe that a retirement plan is one of the most important benefits you can offer your employees and yourself. However, to be most successful, a retirement plan must engage participants and move them to action. This requires thoughtful planning and execution. That’s why it’s important to work with experienced, objective professionals who can provide the necessary assistance to both you and your retirement plan participants.

At  Cornerstone Wealth Advisors our role is to help you define and reach your retirement plan goals, as well as to help ensure plan participants receive the education and resources they need to prepare for a solid financial future. We also will focus on the fiduciary liabilities you assume as a plan sponsor.

The service model for Cornerstone Wealth Advisors focuses on the following key areas of your company sponsored retirement plan.

  1. Plan Evaluation Services and Plan Design Review
  2. Fiduciary Review and Risk Management Services
  3. Participant Services
  4. Investment Line-Up Selection and Monitoring

Call us and ask for our Brochure “Choosing a Retirement Plan for Your Business” and “Commitment of Retirement Plan Services.”