The Golden Telescope. Doug McLarty

you have a plan to successfully transfer your business or the wealth you generate from it to your family when you stop working? Have you figured out what would happen if that day comes sooner than expected, in the event something happens to you before your planned retirement?

      We’re guessing you didn’t answer yes to all of those questions. If that’s the case, you’re certainly not alone. Gary and Sandra would probably answer no to all of them. Like many other busy people, you’ve been focused on responding to all of the immediate demands that are placed on you. That doesn’t leave much time for long-term planning.

      Maybe you have a vague sense that it will all work out in the end. Someday, you’ll organize things properly. Or maybe someone will come along and offer you a big cheque and take over what you’ve created. Then you and your family will ride off into the sunset and pursue all of your dreams.

      But deep down inside, you know it’s not that simple.

      You want to structure your affairs properly. But the truth is that when it comes to researching, analyzing, and planning the best way to extract, protect, and increase the money you earn, you just don’t have enough time left over after work and family commitments to be proactive, thoughtful, and comprehensive about your approach.

      The answers aren’t quick and easy, nor are they readily available from existing financial literature or the vast majority of financial advisers. Here’s why:

      AS AN OWNER-MANAGER OR PROFESSIONAL, YOU HAVE UNIQUE REQUIREMENTS AND UNUSUAL RISKS THAT MOST FINANCIAL ADVISERS AND AUTHORS SIMPLY DON’T UNDERSTAND OR TAKE INTO ACCOUNT IN THEIR ADVICE TO YOU.

      From years of working with clients just like you, we can tell you that owner-managers and professionals are exposed to a number of unique hazards and risks. These traps and dangers aren’t addressed by the plethora of generic financial literature that you find at the bookstore, nor by the financial advisers at most banks and brokerages, because these issues aren’t relevant to the majority of consumers, who are employees.

      As an owner-manager or professional, your situation is remarkably different. So you have to move carefully and strategically to avoid making the wrong decisions. We’ve identified 12 pitfalls that are unique to people like Gary and Sandra, and you:

      1.Thinking you are in the same situation as others who don’t have your unique requirements.

      2.Having an investment strategy that’s like a fad diet: too aggressive, risky and unrealistic.

      3.Stressing about your finances and looking up investment values daily.

      4.Thinking you’re diversified when you’re really not.

      5.Paying too much in fees, and paying fees that are not tax-deductible, therefore costing you extra money.

      6.Having too much or the wrong kind of life insurance.

      7.Paying too much in taxes because you’re taking money out of your business the wrong way.

      8.Relying on a cookie-cutter financial plan that’s actually a sales pitch to get you to invest or buy insurance or other financial products.

      9.Using a plan that doesn’t take into account all the facets of your life and business and all the members of your family.

      10.Thinking succession planning is a transaction you can work on when you’re close to retirement.

      11.Investing before reducing debt or borrowing unreasonable amounts to invest.

      12.Being afraid to spend because you don’t know where you stand. Believe it or not, you might actually be able to spend more than you think you can.

      If you don’t have a strategy to navigate all of these pitfalls, or rely on the wrong advice, you could be at risk of losing tens of thousands of dollars, if not more, over the next few years. You could be forced to retire a year or two later than you otherwise might, maybe even later than that. And you could be creating a much smaller nest egg for your family, despite all your hard work.

      You know what’s at stake. But we’re guessing that because of your busy life and the complexity of your financial requirements, you haven’t taken the time to sit down and create a comprehensive, customized, and detailed financial plan, or at least not one that addresses all of your needs. Perhaps the idea is daunting or even scary.

      Certainly, research shows that 65 per cent of owner-managers and professionals have no plan at all. Of the remaining 35 per cent, our experience is that about 34 per cent have a plan that isn’t thorough enough. Maybe they have something that was given to them from a financial service provider that looks like a plan, but it’s really just a rationale for investing with that adviser. We’ll address these cookie-cutter plans and explain why they are nowhere near what you need.

      If you’re in the remaining one per cent, congratulations and stop reading. You don’t need this book.

      But if you’re in the vast majority, this book can help you. And it’s not a long or tough read that feels like a homework assignment. It’s meant to be helpful, relatable, and interesting. There are no acronyms or charts and graphs. You won’t have to learn a lot of new terminology.

      The truth is that a lot of financial service providers don’t understand your world and the tax complications that come with it. However, we do. Over the last 30 years, we’ve worked with thousands of business owners and professionals. At McLarty & Co, we think like entrepreneurs and professionals because we are entrepreneurs and professionals.

      Our passion is helping owner-managers and professionals to realize the wealth that they’ve created with their hard work, and to avoid the many pitfalls of a financial service industry that doesn’t cater to their needs and can often be counterproductive or leave them exposed to significant risks.

      We can’t tell you the number of times we’ve seen clients who have been set on the wrong path by people in the financial industry who don’t understand their specific needs or — even worse — deliberately mislead them. And it’s not just the sharks that you have to be wary of. Unfortunately, many people in the financial industry treat every customer the same way, even though the needs of owner-managers and professionals are very different from those of the typical customer. The cookie-cutter approach of many big banks, brokerages, and insurance companies not only doesn’t work for people like you, it could actually be counterproductive and cost you thousands of dollars.

      Frankly, we’re tired of encountering business owners and professionals who are being given the wrong advice because their financial planner is acting in his or her best interests rather than theirs. It doesn’t happen every time, but it does happen often enough that we want to warn everyone to be careful.

      That’s why we’ve written this book. Our goal is to make sure you don’t become one of those clients.