Business owners are often fully devoted to running and growing their companies that they hardly pay attention to both business and personal assets’ acquisition, accumulation, protection, and transition.
In March 2020, Executive Forum Silicon Valley (“EFSV”) members had a great educational discussion with Nico Wiborg of the New York Life Insurance Company around a holistic view of how business owners and leaders should think about, protect and plan for business and personal finances. The educational discussion was segmented into four key areas:
- Sources of Income
- Threats to Income and Assets
- Application of Income and Assets
- Legacy Choices
As business owners and leaders, we are often expected to provide the right answers to our customers, teams, and employees. At Executive Forums Silicon Valley, we often focus our peer groups to make sure that leaders also are skilled at asking the right questions. It is through asking the right questions that the best and correct answers often emerge.
Income and Asset Protection, Retirement and Estate Planning
When it comes to Addressing the Six Key Areas of Capital Accumulation and Protection, it is necessary to ask the right questions. Nico Wiborg led the group through a comprehensive review of the six key areas with thought-provoking questions that resulted in a rich discussion between the business owners. Questions that were covered and addressed with the business owners are shown in the table below.
| Asset Area | Key Questions to Ask |
| Income Protection(Source) | When will you be finished accumulating assets?How many assets will be required to replace future income?What other sources can provide the necessary income? |
| Income Tax(Threat) | Are you trying to predict future tax rates?Do you know how to tax-diversify for the best flexibility?What strategies do you have for a rising tax rate environment? |
| Capital Risk(Threat) | Do you have a specific strategy to grow your assets (not income)?Do you monitor, review, and adjust your strategy on a regular basis?How are you using your business for income now and legacy later? |
| Asset Protection(Threat) | Are you aware of the impact of creditors, lawsuits, and judgments?Do you have assets that you can shift to a different owner?Have you integrated insurance into your asset protection plan? |
| Retirement Plans(Application) | Do you have enough assets to allow your income to completely stop?How much do you need and now much more needs to be set aside?Where should you put the assets for growth, protection, and income? |
| Estate Planning(Legacy) | Do you have a proper inventory and accounting of your assets?Are you directing your assets or letting the existing law dictate your plan?How do you want your heirs to receive your legacy? |
Get a holistic picture of your assets and planning ahead
Sometimes as business leaders we are so focused on leading our teams and serving our customers that we neglect to rise up to 50,000 feet and take a holistic view of our assets and establish a strategy that covers all of the sources, threats, application, and legacy issues. If you think you have answers but are unsure if you are being asked the right questions, I would highly recommend that you contact Nico Wiborg (nwiborg@ft.newyorklife.com 408 655-5964) and have a great discussion about how to build and protect your assets to create the legacy that you deserve. Wouldn’t you feel better if you did that right now?
About EFSV
Executive Forum Silicon Valley (“EFSV”) is a platform where successful business owners, CEOs, and executives act as their fellow collaborators, co-inventors, partners and even “co-conspirators”, in getting a clear picture of where they want to go, what stands in the way, and how to achieve their respective growth goals. Forum members share resources, conduct self-assessment, and identify opportunities. Members get clarity about the way forward, obtain strategic insights to overcome their leadership blind spots. They hold each other accountable with support and encouragement. If you are interested in learning more about becoming a member at Executive Forum Silicon Valley, please contact gperkins@executiveforums.com or call 408-901-0321. For more information visit http://www.execforumssv.com/