THE 3 CIRCLES OF WEALTH
THE 3 CIRCLES OF WEALTH
In our experience, every businessowner has two things in common. First, they are so busy being successful they have little time to pay attention to their own personal planning. What planning they have done becomes obsolete and barely relevant a few years later because of the tax taw changes that pours out of Washington. Secondly, they have all spent thousands of dollars implementing and administering concepts, strategies and products meant to build wealth and pass it on to the next generation of leaders/ They want to preserve what they have built during their life for the benefit of their family. At BMI, we refer to this planning as the Three Circles of Wealth – Wealth Accumulation, Wealth Succession and Wealth Preservation. Each circle is unique and usually managed by a different set of advisors who are specialists in that particular circle. The unfortunate thing is, these circles become isolated and inefficient because the advisors operate in their own silos. The left hand does not know what the right hand is doing. As a result, inefficiencies and conflicts arise that actually thwarts the overall objectives. At BMI Consulting, we see the problem differently. We see the circles overlapping and that efficiencies can be created by combining strategies with the “end in mind.”
fI you knew your wealth accumulation plan could deliver significantly more value for the same outlay, would you consider employing an alternative strategy? Most of our clients say they were unaware there were alternative ways available until they met us and heard our ideas. BMI Consulting is well known for their innovative and efficient planning strategies. Our retirement funding program is unique and unknown to most advisors. Successful implementation requires more than active management to deliver meaningful results. The tax implications, hidden costs and ongoing administration are key elements to the success of any long term strategy. By allowing BMI to give you a “second opinion” on your current portfolio of accumulation plans, you risk nothing. However, you stand to gain from our combined 120+ years of evolving skills and experience
Most owners of a closely-held company will regrettably ignore the potential consequences that death or disability could have on their THREE Circles. Stock restrictions, lack of marketability and economic cycles can all conspire to bring financial distress to the best plan. BMI Consulting has fashioned creative buy-sell agreements to allow owners the ability to build equity, create liquidity and still maintain control of their enterprise. Many times, owners need to retain key executives, design an acceptable exit strategy and/or prepare for the
BMI Consulting has assisted many families, helping them to pass the company to their children in an equitable and economic fashion. Alternatively, to help them transition their company to key management or market their company to independent third party buyers. Each method has different tax issues and complexity. The worst time to do tax planning is after the sale is made. Review our case studies and read the thumbnail profiles of consulting assignments we have completed that are common among many businesses. If you see one that fits, talk with us about how we can help you. BMI Consulting has the answers to the most complex business problems you will face – transition and succession.
Will you work your entire life only to end up having your heirs liquidate virtually half of your assets just to satisfy the tax lien they didn’t have to pay? This is the plight of many families who are too busy being successful to plan ahead. It has been our long held belief that estate taxes are optional. Yes, voluntary! Part of the assets you now control are what we call “Social Capital.” The prevailing attitude of the IRS is they are allowing you to use their money, until you have to pay it back. You own and control it during your lifetime, but eventually, that capital is going to be transferred to society when you expire, unless you plan to avoid this outcome. Forty to fifty percent of what you control is “social” capital. But you have a choice. You can control where this social capital is going to go. You can choose to distribute it to your favorite social causes – the ones you care about – or – you can send your assets to the Federal Clearing House in Washington D.C. (The IRS). Too often, people who have successfully amassed significant wealth have overlooked exactly how much control they have over the disposition of their social capital. Instead of carefully planning their ultimate exit, they leave their plan to chance. Instead of proactively designing a legacy compatible with their life goals and values, they abdicate the job to their attorney and heirs after the fact. BMI Consulting has dedicated years to helping clients visualize and implement their legacy through the skillful combination of legal, ethical and effective tools, BMI can help you dictate the terms of your legacy. Combining these three circles into a comprehensive and coordinated strategy requires comprehensive knowledge. Jonathon, Stan and Guy have developed the expertise and skills to manage this process for their many and varied clients. Their combined 120+ years of experience brings substantial knowledge, understanding and insight to the planning team.