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INSIDE THIS EDITION:
The Math of Investment Returns
Weekly Technical Comment
Six Things to Consider Before Retiring From Your Business
401k Plan Manager
Most investors know the math associated with getting back to “breakeven” after sustaining a loss. The example that is typically given is that it requires a 100% return to recover from a 50% loss. In other words, to get back to even, the math of returns requires that an investor must participate in a more substantial rally to recover from the initial drawdown or loss.
Start of the Third Quarter
Monday started the third quarter of 2018 with a stumble as investors continue to wrestle with the uncertainty around trade and tariffs. The intense market volatility runs in both directions. All the while, the S&P 500 has not made a new high since January 26th and longer we go, the firmer the conviction that we are in the midst of a topping formation.
(Forbes Financial Council Highlights from June 2018)
I was recently asked to join the Forbes Financial Council. As I have talked very much in depth on the STA Money Hour about Business Exit Strategies and Business Succession Planning, the Forbes Finance Council asked me for my input about Six Things to Consider Before Retiring from Your Business. In this article, they asked several members about how business owners can coordinate their Business Succession Planning with their overall Retirement and Financial Plan.
For many business owners, a business is their life’s work. For others, a business is a primary source of income: one that has allowed them to live the life that they’ve worked hard to create. Whatever the result, a successful business must be protected because no business owner can work forever. When an owner is ready to retire, it’s too late to consider what should have been done. With that in mind, they asked me and other members of the Forbes Finance Council how a business owner can prepare for retirement and leave a business in the best possible state. The answers pointed at long-term planning that will ease a business owner into a comfortable, worry-free retirement.
For my part, I suggested:
Create a personal financial plan. Take the time now to coordinate your personal financial plan to protect your family and help assure the highest value you could receive at retirement. Business owners may spend 50 or more hours a week worrying about their business. That being said, in many cases, their largest asset is their business. For decades, vast wealth has been created for millions of Americans through growing private businesses. As Baby Boomer business owners reach the later stages of their careers, the 2016 U.S. Trust Wealth and Worth Survey shows that nearly two-thirds have no formal succession plan or exit strategy. Since most business owners rely on their businesses for income, the lack of such planning means that their main source of income could be in jeopardy.
To read the other 5 Suggestions, visit the article on our website at: https://www.stawealth.com/news/six-things-to-consider-before-retiring-from-your-business/
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by STA Wealth Management, LLC), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from STA Wealth Management, LLC. Please remember to contact STA Wealth Management, LLC, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. STA Wealth Management, LLC is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. A copy of the STA Wealth Management, LLC’s current written disclosure statement discussing our advisory services and fees continues to remain available upon request.
Financial Planning and Investment Advice offered through STA Wealth Management (STA), a registered investment advisor. STA does not provide tax or legal advice and the information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters or legal issues, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice
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