As an entrepreneur or business owner, you know all about hard work and commitment. You’ve overcome challenges and achieved milestones along the way. It’s only natural you want someone with that same understanding when it comes to getting the financial advice and solutions necessary to take your business to the next level.

That’s where we can help. Because McGee Wealth Management, Inc., is a family business, we understand the nuances of family members working together and the challenge of planning for transitions. Passing the baton from generation to generation is a difficult and emotional task that takes time and expertise.

While most founders (76%) had an estate plan*, heirs opined that business failures were due to inadequate estate/financial planning, poor transfer preparations, and inadequate assets to cover estate taxes, plus conflicts with non-active family members, and insufficient capital to run the business.

We understand the challenges business owners often face and have helped many new, growing and mature businesses. Most important, we recognize your business is unique. Working with you as a partner in your success, we’ll take the time to understand your goals and help you address a wide variety of needs, including asset preservation, cash management, employee retention, insurance, financing, succession planning and, of course, your own retirement.

Best of all, you’ll enjoy the confidence of knowing you have a trusted source for financial advice – and more time to devote to growing your company.

* Source: Heirs of Failed Businesses National Survey, conducted by Karen File, an Associate Professor at the University of Connecticut’s Business School and Russ Prince of Prince and Associates for their book on family businesses.

Dave wants a financial partner to help with his business and personal goals.

Dave appeared bigger than life to all who knew him. He bought his manufacturing business 30 years ago and paid for it with company earnings. The former owner was generous and made it easy for Dave to learn the business. Dave has a 20% minority partner who wants to retire in the next seven years. About ten years ago Dave brought his son, Jim, into the business. Jim had proven to be an outstanding salesman, growing new markets and greatly adding to the bottom line. Dave continued to hold tight to the purse strings and controlled all but 24% of the Sub S stock. He owned all equipment and real estate. His generosity toward employees led to amazing loyalty and financial success.

Dave is now 72 and ready to transfer the business. He trusts that Jim can handle the job. But to sell the company to Jim outright would be a tax hit for Dave and an insurmountable task for Jim.

The Solution

The McGee wealth managers, Dave and his wife, Sue, began a process of comprehensive financial planning, including life planning goals and the transition of the business. Sue wondered if there would be equity for their two other children who had no business interest and did not live nearby.

Family meetings were held. Jim became a Trustee of the company’s pension plan along with Dave and his minority partner. The three Trustees managed the plan professionally with the guidance of their Investment Policy Statement and regular investment management reviews. Sue and Dave defined their dreams, built a new home, and started a regular gifting program to their children. Sue sold her home-based business and Dave started working less.

Investment management for their personal assets was designed to provide reliable retirement income. The minority partner was bought out on contract. Dave and Sue sold their interest on contract to Jim using allowable discounts and the current low interest rates.

The McGee team played an integral role in a well-ordered, tax-efficient and affordable transition for the company. We consider the business, tax and estate planning are a win-win for Dave, Sue, Jim and all concerned.

This investment profile is hypothetical and not indicative of any specific situations or clients. Individual circumstances and results will vary. It is presented only as an example and not intended as investment advice. Please note, changes in tax laws or regulations may occur at any time and could substantially impact your situation. Raymond James financial advisors do not render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.

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