Reassess your business assets
"To get started on the business side, the first step would be to evaluate cash flow needs for the business, with a focus on short-term liquidity," says Andrea Rothberg, UBS Wealth Planning Specialist.
Step 1: Review your most recent company income statement to assess your short-term liquidity needs. Work with your business manager to identify fixed expenses, such as payroll and rent, versus variable expenses, such as marketing and future capital investments. "Bring in your leadership team to review your company’s growth plan and decide which items are essential," advises Bianca Benedetti-Fang from the UBS Business Owner Segment group. If there is a gap in meeting short-term liquidity needs, discuss lending programs or stimulus relief options with your UBS Financial Advisor.
Step 2: Review the agreements and policies held for your business. It is critical to gather together your Buy Sell Agreement, Disability Insurance, and Property and Casualty Insurances. "You will want to have a conversation with an insurance specialist who can review and assess your current documents, policies, and coverage," advises Benedetti-Fang. It is necessary to also make sure you are referencing the current updated value of the business. "It may be advantageous to discuss with your UBS Financial Advisor who can help with business valuations and bring in specialists to review your policies and evaluate if your agreements still meet your needs should something happen to you or your business partners," advises Benedetti-Fang.
Reassess your personal assets
"For business owners, it is paramount to do this on a personal level also. The first step would be to start with a concrete understanding of your personal cash flow," Rothberg notes.
Step 1: Review expenses to ensure you have enough liquidity to meet short-term cash flow needs. Identify your family's fixed expenses, which may include rent/mortgage, utilities, taxes, and other personal costs, like childcare or clothing. Review those along with your variable expenses, like vacation or entertainment. "Now is a good time to begin to decide what you consider to be essential and non-essential, which is personal and will differ for every business owner," states Rothberg.
Step 2: Work with your UBS Advisor to reassess your medium- to long-term goals, making adjustments to these goals in your financial plan as necessary. Examples include retirement, education of children and grandchildren, travel, big celebrations, and the purchase of a new or second home.
Step 3: Review what you've done to protect your family and address any gaps. Gather insurance policy contracts on your various policies, such as life, disability, and property and casualty. Share these with your UBS advisor for review to ensure these policies still meet your needs. "Also, at this stage, you should collect executed estate documents, such as your healthcare proxy, power of attorney, will and trusts. Then, provide your documents to your UBS Financial Advisor, who can coordinate with your estate attorney to ensure that your documents are in line with current objectives," counsels Rothberg.
Neither UBS Financial Services Inc. nor any of its employees provide tax or legal advice. You should consult with your personal tax or legal advisor regarding your personal circumstances.
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