Business Planning | Conversions & Spending

Protecting your Business Partnership

“All businesses are loosely functioning disasters.”

(Brent Beshore, CEO Permanent Equity)

For many business owners, the single largest asset on their balance sheet is the equity in their business. When you’re in a business partnership—it’s worth asking: What happens when your life (or your partner’s life) gets messy?

Dysfunction, lawsuits, divorce, destructive behavior, burnout, or health complications? How do you protect the business, your employees, your family, and legacy?

Years ago, Matt and I had to face those questions ourselves. As owners, we sat down and looked at the legal documents that were meant to govern our partnership. We had to ask:

What buy/sell documents, process and governance are actually in place?
How is the business valued & how often do we pay to get a valuation?
Do we have the adequate life and disability insurances?

We also had to build a team to support us. Legal, tax, valuation, governance, and insurances all had to be clarified, and we had to define a regular cadence for review. There are questions that I don’t think get asked enough of financial advisors: Do you eat your own cooking? Are you following your own advice? For Matt and me, the answer had to be yes.

So, if you’re in business with someone else, it’s worth asking:

How often is your agreement reviewed?
Is your valuation process clear and up to date?
Are life and disability insurances aligned with that valuation?
And who knows the plan besides you?

Tax Planning & Roth Conversions: Only 38 days until Roth Conversation Season starts for our team. Yes, this is an unofficial holiday around our office. We anticipate a record number of conversions this year. As needed, we can coordinate with your CPA and introduce the benefits of a partial Roth conversion.

Households are Still Spending:

And this is a jaw dropping perspective on Big Tech’s insatiable appetite on spending:

Year-end Conversations: As fall approaches, a few things to consider focusing on in your year-end financial choices to make the biggest impact:

Managing cash flow (always have a surplus)
Your investing rate (get this at >20% of gross income)
Avoiding lifestyle creep (keep fixed costs inline with your income)
Increasing your income (develop a skill set people pay for)
Avoiding bad debt (buy what you can afford)

We can help you evaluate your options and identify strategies that may offer meaningful financial benefits tailored to your goals and circumstances.

*The views expressed represent the opinions of Compass Ion Advisors, LLC, as of the date noted and are subject to change. These views are not intended as a forecast, a guarantee of future results, an investment recommendation, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial, or legal advice or service to any person. The information contained has been compiled from sources deemed reliable, yet accuracy is not guaranteed.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website here. Past performance is not a guarantee of future results.