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© 2024 Canaccord Genuity Wealth Limited
Legal & Regulatory information |
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Contact us
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Internet use policy |
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Risk warnings & legal disclaimer
Risk warnings & legal disclaimer
Investment involves risk. The value of investments and the income from them can go down as well as up and you may not get back the amount originally invested.
The information provided is not to be treated as specific advice. It has no regard for the specific investment objectives, financial situation or needs of any specific person or entity.
The tax treatment of all investments depends upon individual circumstances and the levels and basis of taxation may change in the future. Investors should discuss their financial arrangements with their own tax adviser before investing.
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Navigating life after business: the therapeutic side of cash flow planning
Steven McKelvie, a Wealth Planning Director at Canaccord, talks about how he helps business owners who are often too busy to think about their personal expenditure and post-business priorities – and about how cash flow planning can prove to be a remarkably therapeutic endeavour.
Understanding the need for personal cash flow planning
Like most financial planners, I have dozens of business clients from all different walks of life. I work with people who have sold small businesses for a modest sum, right through to those who will never have to think about money ever again, as well as people who have inherited family businesses and even a successful artist.
Nearly all of them are familiar with cash flow planning in their business context and the mantra of ‘Cash is King’ – but have rarely thought about it for personal financial planning.
For clients at the stage of selling their business, I will offer a lot of educational support – especially if the business owner hasn’t had very much personal financial planning and investment help in the past. This can be the case because all their money has been tied up in their business until now – and so they just haven’t had to think about it. It is often a great opportunity (and can be very therapeutic!) to go back to basics.
Identifying post-business priorities
Finalising a personal wealth management plan
I can work as quickly, or often as slowly, as a client wants. I am here to educate, prompt, guide and advise. After they have sold their business, I want to ensure my client achieves the outcomes they want, with the benefit of my help and a well-thought through personal financial plan.
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At Canaccord Wealth, we have a team dedicated to supporting business owners like you. Remember, if you have £250,000+ to invest (including ISAs and pensions) you can book a free, hour-long financial health check with an independent financial planner.
This is complimentary and there is no-obligation to go any further.
File size: 5MB
Our exclusive free guide for business owners explores the eight key insights for personal wealth optimisation, to ensure you don’t lose sight of yourself in a business exit or sale.
Download our guide
Investment involves risk. The value of investments and the income from them can go down as well as up and you may not get back the amount originally invested.
The information provided is not to be treated as specific advice. It has no regard for the specific investment objectives, financial situation or needs of any specific person or entity.
The tax treatment of all investments depends upon individual circumstances and the levels and basis of taxation may change in the future. Investors should discuss their financial arrangements with their own tax adviser before investing.
First, we will take our time to consider their post-business priorities. A key question I explore is ‘what do you want to do now that you have left your company behind?’
Over the years, I’ve found everyone is different and so it is a matter of looking at each individual case and understanding their personal requirements vs. their financial aspirations.
Some want to try their hand at something new straight away – but they may or may not know what this could look like. Many want to start another profit-making business. Others will be ready to make the move into full retirement, spending time with loved ones and grandchildren. Still more have philanthropic aspirations (you can read more about this in my other client story).
It really depends on who they are and how they are wired. It’s my job to get to know them and help financially shape what they want for the rest of their post-business sale life.
Set aside adequate time to really think about your post-business-sale priorities
Write down your current personal expenditure (a banking app can really help) and think how much your future plans might cost - ask a financial planner if you want some help
Cash flow planning can be very therapeutic when discussing your future with a financial planner
Cash flow planning can also mitigate any shortfalls, which can be addressed by careful financial and investment planning.
In summary:
At Canaccord Wealth, we have a team dedicated to supporting business owners like you. Remember, if you have £250,000+ to invest (including ISAs and pensions) you can book a free, hour-long financial health check with an independent financial planner.
This is complimentary and there is no-obligation to go any further.
Sometimes busy businesspeople haven’t had time to think about their personal expenditure – be that their current spending, let alone their future requirements for their money. Banking apps can help us here and give us a baseline of their essential expenditure.
I’ve had clients go away and come back with detailed spreadsheets that they’ve created (it’s probably the businessperson in them!). They’ve gone on to tell me the exercise has been a real eye-opener in terms of where their money goes each month, which I love to hear.
How much money will you need to meet your new lifestyle goals and aspirations?
I can work as quickly, or often as slowly, as a client wants. I am here to educate, prompt, guide and advise. After they have sold their business, I want to ensure my client achieves the outcomes they want, with the benefit of my help and a well-thought through personal financial plan.
Finalising a personal wealth management plan
With an idea of their personal drivers and future priorities, as well as their current expenditure, we will undertake some cash flow planning. This will illustrate their future wealth trajectory and highlight any shortfalls that we can address by careful financial and investment planning.
Sometimes, I might need to say, “Having this amount of money to spend each month is non-negotiable, unless you can make major changes in your lifestyle”. After that, we can start to look at their discretionary spending and aspirations – round the world trips, family holidays, buying a holiday home or investment properties.
These sorts of conversations tend to take place over two or three meetings, although I’ve had clients where we really take our time and allow many more sessions.
The importance of cash flow planning for personal wealth management
Sometimes busy businesspeople haven’t had time to think about their personal expenditure – be that their current spending, let alone their future requirements for their money. Banking apps can help us here and give us a baseline of their essential expenditure.
I’ve had clients go away and come back with detailed spreadsheets that they’ve created (it’s probably the businessperson in them!). They’ve gone on to tell me the exercise has been a real eye-opener in terms of where their money goes each month, which I love to hear.
How much money will you need to meet your new lifestyle goals and aspirations?
With an idea of their personal drivers and future priorities, as well as their current expenditure, we will undertake some cash flow planning. This will illustrate their future wealth trajectory and highlight any shortfalls that we can address by careful financial and investment planning.
Sometimes, I might need to say, “Having this amount of money to spend each month is non-negotiable, unless you can make major changes in your lifestyle”. After that, we can start to look at their discretionary spending and aspirations – round the world trips, family holidays, buying a holiday home or investment properties.
These sorts of conversations tend to take place over two or three meetings, although I’ve had clients where we really take our time and allow many more sessions.
The importance of cash flow planning for personal wealth management
In summary: