At Lunchtime Leaders (April 21, 2011), David Cougevan – Financial Planner, provided some wonderful insight to a variety of financial strategies and tools that can be used to make your business more effective, attract and retain employees, and preserve wealth for yourself and your heirs.

Here are some notes I can share from his presentation.

Use the right tools when working towards your business and personal goals.  Consult with and attorney, CPA, or a Financial Planner when developing a financial strategy and when selecting investment tools.  These people can help you make sense of what is out there and how the tools can be applied to your specific situation.  Also make sure these people are authorized to talk to each other about your finances.  Doing so simplifies the communication process and lets one hand know what the other is doing.

Re-evaluate yourself, your business, your goals, and your financial plans on a regular basis.  Things change over time.  Strategies and tools that were at one time right for you may no longer be.  Review your situation once or twice a year to see if you are still on the right financial track.

Create value for employees by providing incentives for them to work with you.  A salary may not be enough.  401ks and insurance can make employment at your business more attractive than at other places.  Use vesting periods to prevent employee loss.  Employees may last longer if there is some sort of reward for dedication.  There are many ways to compensate employees.  Find a solution that is right for you, your business, and your employees.

Life Insurance Retirement Packages (LIRP) are a great way to provide additional long-term compensation and protect your business.  LIRPs offer many tax-free and tax-deferred advantages that other investment tools may not, which can make these investment tools an attractive component of an overall compensation package.

Disclaimer:  The contents in this article are by no means to be considered as financial advice.  Seek advice from your financial planner, CPA, and attorney to determine what investment tools and financial strategies are best for your specific situation.

Stewart Savage, Abaton Consulting – Website Design Studio

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