Get Retirement Right 1

Get Retirement Right

Group variable annuities are long-term investment vehicles made to accumulate money on a tax-deferred basis for retirement purposes. Distributions might be subject to regular income tax and, if used prior to age group 59½, a ten-percent federal taxes charges might apply. Purchasing a group variable annuity involves risk, including possible lack of principal. Ahead of selecting investment options for the program, plan sponsors should consider the investment goals, risks, fees, and expenditures of every option carefully. For this and other important info, plan sponsors should review the fee disclosure document or the program sponsor website. Read this information carefully.

I remember creating a discussion with the head of one of these captive M and A firms and she portrayed her frustration over having less client recommendations from the accountants in her own firm. She said that only a small number of the more than 300 accountants in her company had ever referred to an internal customer to her investment bank group.

Recently a national accounting firm with offices in 30 major towns and a head office in the Chicago area announced the closing of their capital markets group – their merger and acquisitions department. I find that exceptional given the existing demographic profile of companies. Baby Boomers is the owners of almost 50% of most privately kept businesses in America.

Baby Boomers are starting to retire in good-sized quantities. According to a BSI Global Research Study, 42% of most CEOs anticipate retiring within five years. The translation of this phenomenon to business owners is a growing number of companies are changing hands. 8.3 trillion in wealth will transfer over the next ten years due to ownership changes in privately held businesses. These lenders are either being sold, passed on to another generation, acquired in a management ESOP or buyout, or simply shut down.

  • NSF fees
  • What did you decide to do to find out if the role suits you
  • Verify the banker login without any data
  • Your Savings Rate
  • Have more than $40,000 in your SA

So, back to our accountants. This national accounting firm could not economically justify a merger and acquisition band of 8 people in this environment of exploding opportunity. Yes, I understand we have a rough patch, but this will pass and the quantity of activity will be progressively increasing for another decade.

What really occurred in this accounting firm? A similar thing that is going on in the whole profession. Your accountant does not want one to sell your business. Your accountant has an annuity with your business – your annual and quarterly tax filings, your audit, and an occasional special consulting task that you initiated probably.

Guess what. If you sell your business, your accountant manages to lose his annuity. He’ll have to displace you with a fresh account. Accountants hate to prospect for new accounts. He will not want one to sell your business. This position of denial from your accountant may hinder the planning necessary to get you the best results when you leave your business.