Monthly Archives: April 2021

Peace of mind that you’re on the right track

How to plan for a confident retirement to live the lifestyle you want

Retirement might seem a long way off but the later you leave planning for it, the less chance you have of achieving the retirement you want. We all dream of how we’ll spend our retirement but that dream looks different for everyone.

Succession planning

Preparing yourself, your family and your business for the future

The operational demands of running a family business or other closely held enterprise can be all-consuming, but it’s vital that business leaders take the time needed to assess their organisation’s business succession planning.
After pouring years of your life into building a profitable business, it’s natural that you’ll want to pass it on to someone who will take equal care of it, whether that’s a member of your family or a buyer. That’s why succession planning is so important.
In the context of your business, succession planning is the process that ensures a smooth transition in ownership from you to someone else, so that a new owner can continue to pursue your company’s goals.

Why is succession planning important?

A succession plan can help to leave the business without negative repercussions, secure your legacy at the company, ensure a seamless transition to new management and reassure employees and stakeholders.

What are your succession planning options?

The three most common options are:

1. Keeping the business in your family
You might want to pass on your business to a family member, such as an adult child. While this option has many benefits, the relationships and emotions involved can make objectivity difficult, so it can help to involve an external adviser who can remain impartial.
2. Selling the business
It can be difficult to find a buyer with the skill and expertise to run your business, and the inclination to do so. But once you find them, this option can be profitable and strategically successful.
3. Management buyout (MBO)
Another option is for your company’s managers to become owners by raising the finances together. This can be the best way to ensure continuity of your business’s progress towards its goals, as the same team continue to operate it and service customers.

How can you ensure successful succession planning?

A successful succession plan takes time and dedication. It will be unique to your business. But all good plans involve the following steps:

Goal setting
Consider your personal goals and the goals of the business. You may have shareholders or other stakeholders whose goals you must consider.
Timeline planning
You need to establish the date you’re working towards, which may be definite, for example, your retirement at a specific age or indefinite, your eventual death.
Communication
Keep your employees, customers and clients informed. When people feel ‘out of the loop’, they get uneasy and you may lose them.
Seeking professional advice
You’ll likely only create a succession plan once. So, to maximise your chances of success, speak to a professional adviser who’s helped other businesses create theirs. An expert’s perspective provides insights you may not be aware of and keeps your plans on track.
Succession planning checklist 
For a business, working without a succession plan can invite disruption, uncertainty and conflict, and may endanger your future competitiveness. Do you know the answers to these ten questions?
1. Have you defined your personal goals and a vision for the transfer of ownership and management of the company?
2. Do you have an identified successor in place?
3. If applicable, have you resolved the family issues that often accompany leadership and ownership decisions?
4. Does your plan include a strategy to reduce estate taxes?
5. Will there be sufficient liquidity to avoid the forced sale of the business?
6. If succession will one day require the transfer of assets, have you executed a ‘buy-sell’ agreement that details the process ahead of time?
7. Is there a detailed contingency plan in case you die or become unable to continue working sooner than anticipated?
8. Have you identified and considered alternative corporate structures or stock-transfer techniques that might help the company achieve its succession goals?
9. Have you determined whether you or anyone else will depend upon the business to meet retirement cash flow needs?
10. Have you recently had the business valued and analysed in the same way potential buyers and competitors would?

Do you have a comprehensive financial plan? 

Succession planning is a complex process that draws upon many business disciplines. There are many benefits for companies and owners who plan properly and strategically for an orderly transition of management and ownership. To find out more, please contact us.

Live the life you want

How much pension income will you need for a comfortable retirement? 

The purpose of a pension is to provide an income for you to live the life you want once you have retired. But, due to longer life expectancies, less generous schemes and lack of understanding around saving, a common problem is that some people don’t retire with enough to last them.

Funding your child’s future lifestyle!

Early preparation in life is key to becoming financially independent

As the coronavirus (COVID-19) pandemic continues into a second year, we’re learning more and more about its financial impact. While many individuals and families are struggling up and down the country, there is a particular strain placed on the parents of adult children.

Generation Xers chronically under-saving

57% face financial difficulty in retirement years

According to The International Longevity Centre UK (ILCUK) report, a substantial proportion of Generation Xers (those born between 1965 and 1980) in the UK face financial difficulty in retirement, with one in three expected to face significant disadvantages.[1].

Post-work income

How much annual income will you receive from your pension and savings?

Retirement will probably be one of the biggest events you ever go through in your life, so it’s not something you’ll leave to chance. But knowing how much you’ll need, and how to get there, isn’t always easy

Don’t put all of your eggs in one basket

Reducing the risk of your portfolio by choosing a mix of investments

One of the most effective ways to manage investment risk is to spread your money across a range of assets that, historically, have tended to perform differently in the same circumstances. This is called ‘diversification’ – reducing the risk of your portfolio by choosing a mix of investments.

Suspending pension contributions

Think carefully about how action taken now could affect your retirement

As more people worry about money and are struggling financially as a consequence of the coronavirus (COVID-19) pandemic, it’s likely that reducing or stopping their pension contributions may be an option to ensure they survive financially.

Retirement finances

COVID-19: third of retirees fearful due to negative impact

Six years on from pension freedoms, non-advised savers aged over 50 are facing a ticking time bomb at retirement, according to a new survey[1]. 66% of those saving into a defined contribution pension and 58% of those who have already retired have either no firm plans or no plans at all for their retirement finances.

ISA transfers

Time to widen your range of investment choices?

If you have accumulated a number of Individual Savings Accounts (ISAs) over the years, keeping them all in one place could give you better control and help you save money. There’s a common misconception that you can’t move your existing ISAs from one provider to another.