As I write this, the 2024 presidential election is at its peak, bringing uncertainty for business owners across the country. Every headline focuses on fear, doubt, and worry about the future of our economy.
With so much uncertainty, it’s easy to feel overwhelmed. I can’t tell you which candidate to vote for. But I can you how to vote for yourself in three powerful ways that will safeguard your financial future.
Wise financial planning for business owners is founded on these three principles:
- ASSET: Treat yourself as your number one asset.
- INVESTMENT: Invest in your business, where you have knowledge, experience, expertise, and control.
- STRATEGY: Keep your wealth safe with guaranteed, protected, and liquid strategies.
No matter who wins any election, these principles help you take control over your financial destiny. They form the foundation of a strong wealth plan. This is the financial planning for business owners that enables you to thrive even in times of economic turbulence.
For more details on this wealth plan, read or listen to What Would the Rockefellers Do? by Garrett Gunderson and I. This bestseller details the financial system used by the ultra-wealthy to protect, grow, and pass on legacy wealth.
Why Most Financial Planning for Business Owners Falls Short
Your Greatest Asset May Not Be What You Think
Most financial planning for business owners focuses on external assets. But your greatest asset isn’t your business, real estate, or stock portfolio. It’s you.
Your human life value—your mindset, skills, knowledge, and character—creates all material wealth.
To build lasting wealth, start with yourself. Enhance your strengths. Develop new skills. Grow your mindset. This approach to financial planning for business owners will generate more wealth than any external investment.
Consider these key aspects of your human life value:
- Your specialized knowledge in your industry.
- Your skillset.
- Your clarity of your overall vision.
- Your ability to spot and seize opportunities.
- Your leadership skills and decision-making abilities.
- Your network and relationships.
- Your resilience and problem-solving capabilities.
Each of these elements contributes to your wealth-creating potential. Investing in these areas provides returns far beyond traditional investments.
To learn more about developing your human life value, read my book What We’re Worth.
The Smart Way to Invest as a Business Owner
Your business or career has been your main source of wealth. This won’t change. Your business is where you maintain control. It’s where you have expertise and passion.
Many business owners get distracted by the financial markets. They chase uncertain returns in areas they can’t control.
This is backwards. Take risks where you have knowledge and control—in your business.
Smart financial planning for business owners means focusing on what you know best. Don’t gamble on things you can’t control. Instead, optimize your business cash flow and operations.
Here’s where to focus your business investments:
- Systems that increase efficiency.
- Technology that scales your operations.
- Team members who multiply your effectiveness.
- Marketing that generates predictable revenue.
- Training that enhances your competitive edge.
These investments typically deliver better returns than external opportunities. You understand the risks. You can influence the outcomes.
The best financial planning for business owners focuses on your business over other investments.
The Wealthy Don’t Gamble Their Money
“High risk equals high rewards” is a poor person’s philosophy. The wealthy protect their core capital.
Similarly, as a business owner, your number one strategy should be to keep your money guaranteed, protected, and liquid.
This foundation gives you certainty and control. It lets you focus on growing your business without worry.
Properly structured overfunded whole life insurance can provide this foundation.
Think of it like a vault for your wealth. You maintain access to your money while keeping it safe. This security empowers you to take calculated risks in your business.
Consider these benefits of whole life insurance:
- Protection from market volatility.
- Access to capital when opportunities arise.
- Peace of mind during economic uncertainty.
- Tax advantages that preserve your wealth.
- A legacy vehicle for future generations.
Your core capital shouldn’t be at risk. Keep it safe while taking calculated risks in your business.
Building a Multi-Generation Legacy in Financial Planning for Business Owners
The ultra-wealthy, like the Rockefellers, use specific strategies to preserve wealth. They focus on passing down both assets and values. Their method works whether you have $1 million or $100 million.
True financial planning for business owners looks beyond immediate gains. It creates systems to protect and grow wealth across generations.
The foundation of a lasting legacy starts with values and education. As business owners, we must actively teach financial literacy to our children and grandchildren. This goes beyond basic money management. It means sharing our business principles, ethics, and the lessons we’ve learned along the way.
Asset protection forms another crucial pillar of multi-generational wealth. Smart legal structures shield your wealth from unnecessary risks. Tax-efficient strategies ensure more of your wealth passes to the next generation.
I’ve seen too many families focus solely on passing down assets while neglecting these crucial elements.
Without proper education and values transmission, inherited wealth often becomes a burden rather than a blessing. The next generation needs to understand not just how to manage wealth, but why it matters and what responsibility comes with it.
To learn more on this, read or listen to What Would the Rockefellers Do? by Garrett Gunderson and I.
The Power of Properly Structured Whole Life Insurance
A cornerstone financial planning for business owners is properly structured, optimally funded whole life insurance.
Let me be clear: I’m not talking about basic life insurance that merely provides a death benefit. The wealthy don’t “buy term and invest the difference.”
I’m talking about a sophisticated financial tool that the wealthy have used for generations to protect and grow their wealth.
The living benefits of whole life insurance are what make it so powerful. First, it provides tax-advantaged growth. Your money grows tax-deferred within the policy, and when structured correctly, you can access it tax-free through policy loans.
This feature alone makes it a powerful tool in financial planning for business owners looking to minimize their tax burden.
The protection aspect is equally important. In many states, the cash value in your whole life insurance policy is protected from creditors. As a business owner, this gives you an extra layer of security. Your wealth remains protected even if your business faces challenges.
Unlike volatile market investments, properly structured whole life insurance provides guaranteed returns. The insurance company contractually guarantees both your death benefit and a minimum cash value growth rate. In today’s uncertain economic environment, these guarantees become increasingly valuable.
One feature I particularly appreciate as a business owner is access to liquid capital. You can borrow against your policy’s cash value at any time, for any reason. Need capital for a business opportunity? Want to fund an expansion? Your policy can provide quick access to cash without credit checks or lengthy approval processes.
The estate tax benefits are substantial too. The death benefit passes to your beneficiaries income-tax-free. This creates an immediate estate for your family, separate from your business assets. It provides liquidity exactly when your family might need it most.
But here’s what really excites me about properly structured whole life insurance: it becomes your private family bank. Think about this for a moment. Rather than borrowing from traditional banks, you can borrow from your own policy. When you repay the loan, you’re paying yourself back rather than enriching a bank.
This banking concept creates remarkable opportunities for future generations. Your children and grandchildren can borrow against the policy for their own business ventures or investments. They maintain the policy’s guaranteed growth while accessing capital for wealth-building opportunities.
I’ve seen families use this strategy to fund business startups, real estate investments, and education.
However, I must emphasize the importance of proper structure. A poorly designed whole life insurance policy can become a financial burden rather than a wealth-building tool. The key lies in maximizing the policy’s cash value growth while minimizing the insurance costs. This requires careful planning and expertise in policy design.
When structured optimally, your whole life insurance policy becomes more than just insurance. It transforms into a multi-generational wealth preservation and creation tool. It provides certainty in uncertain times, access to capital when opportunities arise, and a legacy that can benefit your family for generations.
Reduce Risk with the Proper Financial Planning for Business Owners
The best financial planning for business owners starts with these fundamentals. Master them, and you’ll thrive no matter what happens in the world around you.
Remember, your success doesn’t depend on who wins elections or what happens in the markets. It depends on your ability to:
- Increase your human life value.
- Build and optimize your business.
- Protect and leverage your wealth.
- Create systems for lasting success.
Take control of your financial future today. Focus on what you can control. Build wealth that lasts for generations.
To learn more, read or listen to What Would the Rockefellers Do? by Garrett Gunderson and I. This bestseller details the financial system used by the ultra-wealthy to protect, grow, and pass on legacy wealth.