You’ve spent years building a successful business and now you’ve decided to sell. Soon you will be counting your millions, but what do you do next? For many, they know how to run their business; however, they don’t know how to manage a large pot of money. Firstly, the key is not to rush, both in terms of your money and your life. Contrary to popular opinion, you will not miss the next big opportunity by delaying investing.
You’ve spent years building a successful business and now you’ve decided to sell. Soon you will be counting your millions, but what do you do next? For many, they know how to run their business; however, they don’t know how to manage a large pot of money. Firstly, the key is not to rush, both in terms of your money and your life. Contrary to popular opinion, you will not miss the next big opportunity by delaying investing. Missing a small amount of investment growth is nothing compared to making huge mistakes with long-term ramifications. Now is the time to take stock and think about your life and gain a new sense of purpose, possibly replacing the missing focus that was your business. Once you have done this, relevant financial decisions can be made that target these new life goals. One area that is often overlooked is that of tax. Shares in owner-managed businesses are often free of Inheritance Tax (IHT) as they fall under the Business Property Relief (BPR) regime. However, on the sale of a business the full value of the proceeds will fall into your estate for IHT purposes. In addition, you are now responsible for generating your own income from the proceeds. With cash rates at rock bottom, this is not as simple as it seems. Especially when considering that you are battling against the twin risks of inflation and longevity. Inflation risk is that prices will rise quicker than your portfolio grows, eroding the buying power of your capital. With everyone living longer, this brings the very real possibility that you will outlive your portfolio. Therefore, design and management of a robust and suitable investment portfolio is a must. At OCM Wealth Management, we specialise in working with you to create an investment strategy which is underpinned by your comprehensive financial plan that addresses tax, risk management and is focused on what outcome you need to achieve from your portfolio to enable you to do what you want with the rest of your life. If you would like to discuss this further, please contact us on 0845 3381971.
