A recent survey from a financial advisors group found that nearly 75 percent of the small business owners in the lower middle market have a written financial plan. If the majority of individuals receiving professional financial advice see the value in a written plan, it stands to reason that it can be a valuable tool. But, it also begs the question of what the modern-day financial plan actually looks like? As the concept of financial and investment planning has evolved immensely over the years, it's important to understand the key components of a formal, written financial plan, and how it may benefit you in the long run. To help you get started, here are a few things to keep in mind. In the past, the basis for a financial plan was formed around the age-old question: "Will I have enough money to retire?" Today, the approach is more holistic, asking the broader question: "What will my retirement look like?" This includes timing for when you would, ideally, like to retire and, once you have retired, the type of lifestyle you'd like to enjoy.
Today, even the definition of retirement is evolving. For some, it could mean working part-time during the transition to retirement, taking on an encore career or starting a small business. For others, additional goals may take priority, including financial support for children or grandchildren, caring for aging parents, creating a legacy, minimizing one's tax exposure or paying off debt. Today's financial plan should address the shift from accumulating retirement income to achieving financial independence and maintaining the lifestyle you want – without having to worry about your finances. If you already own a small business, you may need to sell. If you finally want to work for yourself, you may need to look into acquiring a business or starting one yourself.
As the planning industry matures to address the holistic needs of its clients, so does the technology it relies upon. Gone are the days of your plan being outlined in a spiral-bound notebook – with little ability to adjust in real-time based on life events or economic conditions. Financial planning is no longer a one-and-done activity. It's become much more interactive, dynamic, accessible and conversational – and technology has helped to get it there. Planning tools have moved far beyond paper statements and stagnant budgets to digital, living, breathing plans that can be updated, adjusted or completely re-vamped if needed. This makes it easier for you to stay organized and make more-informed decisions and also creates a more collaborative relationship with your advisor. Many of today's planning tools also allow you to test multiple scenarios and evaluate the trade-offs – providing an informed outlook on what's feasible for the future.
Whatever the future holds for you, SA Capital Partners have mastered the lower middle market, and small businesses at any step in the financial planning process have an invaluable resource in SA Capital Partners. Selling, buying, or just starting out is easier with SA Capital Partners.
About SA Capital Partners: SA Capital Partners is an innovative financial services firm that specializes in mergers & acquisitions advisory and capital raising for lower middle market businesses. We aspire to give all the tools necessary to complete any transaction. SA Capital Partner’s financial services industry specialists provide comprehensive, integrated solutions to banking transactions. Our breadth of services and industry knowledge allow us to understand each client’s unique business needs. Our goal is to make all financial services available to every small business. Website: www.sacapitalpartnersllc.com Phone: (212)-235-2761 Email: info@sacapitalpartnersllc.com #sacapitalpartners #sacapital #sacapitalpartnersllc
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