Most auto dealers would agree that personal financial planning is important but too often multiple priorities and the daily pressures of the business distract from developing a comprehensive strategy.
Below we outline why financial planning is important and then see if you are ready to get started.
Part 1 Secure Your Future
As a proprietor that is not only heavily invested in the business but likely very involved in the day-to-day operations, it makes sense to use an outside, professional financial planner whose expertise is working with owners to understand the complexities of the business structure. The professional would develop a plan based on your current assets, corporate structure, family situation, future financial goals, income needs and taxation considerations. The professional would also incorporate input from all your trusted advisors including your accountant, lawyer and insurance representative.
Part 2 Manage Assets
In this part we reveal the second reason why developing a comprehensive financial strategy is important to an auto dealer’s long-term financial success.
After the plan has been developed, the portfolio needs to be managed. Recognizing that there are a multitude of great online brokerage systems, investing the time to research and monitor investments is often not an option for the busy business owner. An experienced financial planner dedicated to working for you, has the knowledge to manage and track your portfolio and understand the tax impacts of certain investment decisions.
Part 3 Account for Risk
An experienced financial planner will help you understand the risk level of certain investment decisions.
Most business owners don’t take into account the level of risk that they have in their own private business. When an investment portfolio is designed, the risk profile of the investor is analyzed to determine the type of investments to utilize. For most owners, your auto dealership holdings comprise a significant asset. As a result, your investment portfolio should incorporate that risk level into the selection of your non-auto dealership portfolio in order to properly balance your risk profile.
If you are interested in learning more about financial planning, please contact Greg Clarke, Partner at (905) 633-6323 or by email at gclarke@sbpartners.ca
