4 ways to align your business and personal finances as an MD
Aligning your business and personal finances benefits your company and your lifestyle. There are plenty of ways to leverage your position as a Managing Director and/or business owner for the benefit of your personal financial goals (that make great business sense too). You can find four of them below.
1) Use your business to protect your family
What would happen to your business (and subsequently your loved ones) if an owner, shareholder, or key person becomes critically ill or dies? When it’s your company, it’s your personal life too.
There are numerous protections that can be put in place to safeguard your company and your family - and they needn’t cost the earth. There’s even a specific way for company directors to get life insurance that saves you money over the long term.
And what about if you’re planning to leave your business – whether via sale, retirement, or just moving on to a new chapter? Have you considered all your options and thought about what areas of your personal life will be implicated – like your mortgage? Then there’s the tax... fortunately there are smart ways to make these moves, and we’re happy to talk it through.
2) Reap the financial benefits of tax-efficiency at home and at work
Tax efficiency is a brilliant way to align your business and personal finances. You’ve probably got a great accountant who helps you out from time to time with business tax advice. But there are so many areas to look at, and the most tangible benefits are hidden in the details.
Whether it’s maximising tax allowances, considering business property relief, corporation tax, income tax, capital gains tax, inheritance tax or estate planning... the list goes on, and the financial benefits at both work and at home are real. We can look at your individual circumstances and aspirations to tailor a bespoke approach.
3) Hit your retirement goals
Have you thought about when you might like to retire? And what standard of living you’d like? Putting a plan in place so that you can utilise your business to achieve your retirement goals is crucial.
From reviewing pension schemes and tax-efficient contributions to taking benefits at retirement, the decisions you make now will affect you, your family and your business for years to come – so let us help you make the right ones.
4) Invest wisely
Investing wisely can open a world of opportunity; growing your capital might give you the chance to explore new business ventures, or you might want to invest for your children or family to secure their future.
We can help you manage your portfolio no matter where you are in your savings and investments journey. We'll use Modern Portfolio Theory and industry-leading technology to establish a suitable investment strategy for you, monitor your investments and make ongoing recommendations. With a variety of savings products available, we can also make your portfolio as tax efficient as possible.
If you’d like to talk through your situation, book a free consultation today. We have decades of experience helping MDs and business owners meet their financial objectives both at work and at home.
