What is a Business Financial Advisor?

Tax-saving investments are investments that minimize fees while focused on maximizing tax-free growth. Of course, any investment needs to be aligned with your risk tolerance as well as timeframe.

Not every investment's goal requires a 20-year commitment. Some goals are more short-term. As such, this impacts the tax-efficient techniques available.

In addition, the investment strategy should first review your current tax situation. Depending on your tax needs, some tactics may be more appropriate than others.

Your investment strategy should review your current scenario and align everything to be as effective as possible.

Premium financing is a technique used for large life insurance policies that use the cash surrender value as collateral for a third-party loan to pay for the policy's premium.

A business can finance to pay the majority of the policy's cost for key individuals within the organization. It allows for a business to receive the life insurance policy without critically hurting the cash flow.

Premium financing can be a great tool if the right conditions are met. In times of high inflation or interest rates, it is best to steer clear of this method. When inflation or interest rates are high, the return on investment may not very enticing.

Captive insurance is a self-created insurance policy by the business that allows for:

• Risk mitigation
• Enhanced cash flow
• Wealth accumulation
• Wealth preservation
• Potential mitigation of insurance costs
• Potential favorable tax treatment

Captive insurance's primary purpose is to protect the risk of its owners. It allows business owners to work outside of the commercial insurance market.

By creating their own insurance, owners can put their own capital at risk to achieve their financing objectives.

The cost-benefit analysis truly depends on the risk they are insuring for and how it is set up or designed.

The business owner will pay him or herself the insurance premium each year for the coverage. Doing so can help lower a company's commercial insurance costs while simultaneously providing more specific coverage.

By applying this methodology, it can consequentially create a tax advantage for businesses, however, it is not the primary purpose.

Tax loss harvesting takes advantage of down investments, replacing them with other alternative investments and offsetting realized gains.

Golden Handcuffs are designed for your key employees, including the executive team.

These packages are developed to retain or recruit key employees for businesses. In some ways, the design can help reduce your tax burden, while providing additional benefits to your organization.

It all depends on how the executive compensation program is packaged.