“Procrastination is a huge problem, but the bigger problem is the lack of awareness of the need for owners to start planning now, whether you're selling in three years or 13 years.” – Adam Koós
The finer details of this episode:
- Financial strategies for clients with appreciated properties
- Challenges faced by business owners in managing real estate assets and company structures
- Tax implications of selling a business and recasting financials
- Importance of proactive financial planning and business transition for business owners
Episode resources:
Timestamps:
The introduction (00:00:00)
The hosts introduce the podcast and its mission, providing insights on accounting strategies and innovative tools.
Adam's career story (00:00:55)
Adam shares his unconventional career journey from pre-med to becoming a financial advisor and the founding of Libertas Wealth Management Group.
Services provided by Libertas (00:04:45)
Adam discusses Libertas' services, including financial planning, retirement planning, exit planning for business owners, and working with working professionals.
Financial strategies for clients with appreciated properties (00:07:26)
Adam explains the 1031 exchange and passive real estate investing as a solution for clients with appreciated properties who want to avoid active management and taxes.
Liquidity and risk management in passive real estate investing (00:13:51)
The discussion explores the liquidity and risk management aspects of passive real estate investing, including spreading risk by investing in multiple properties.
Impact of COVID-19 on commercial real estate (00:15:39)
Adam discusses the potential impact of COVID-19 on commercial real estate, including lease expirations and mortgage debt held at community banks.
Elevate your firm with a virtual CFO playbook (00:16:36)
An advertisement for a comprehensive online series to create and deliver scalable CFO services.
Real estate and business ownership (00:17:18)
Discussion on the strategy of keeping the building and retaining an income stream after retirement.
Transition planning and exit planning (00:18:00)
Clients' experiences in selling their companies, keeping properties, and the process of selling properties.
Engagements with business owners (00:18:55)
Exploration of the two types of engagements with business owners, focusing on personal and business guidance.
12-step process for business owners (00:19:47)
Explanation of the 12-step process to increase the value of the company, decrease time in the business, and increase efficiencies.
Risk assessment and advisory work (00:21:34)
Discussion on risk assessment, tax planning, and the need for expert assistance in various aspects of business planning.
Recasting and tax strategies (00:23:47)
Importance of recasting business expenses and tax strategies for business owners preparing to sell.
Cash balance plan and retirement strategies (00:26:27)
Explanation of cash balance plans, retirement contributions, and tax reduction strategies for business owners.
Exit planning and retirement (00:31:05)
Discussion on optimizing cash, Roth conversions, and planning for retirement and exit strategies.
Procrastination and Lack of Awareness (00:33:17)
Consequences of procrastination in business planning and the lack of awareness about the need for owners to start planning now.
Running a Good Business (00:35:22)
The importance of running a good business and differentiating between a lifestyle business and building an asset.
Transition Planning and Business Value (00:36:32)
The importance of business transition planning and its impact on the value of the company, providing an analogy for understanding the benefits.
Selling a Business and Pitfalls (00:39:46)
The speakers discuss the pitfalls of selling a business without proper planning and the impact of disagreements between owners on the selling process.
Taking Action and Accountability (00:42:12)
The need for taking action, breaking down steps into smaller tasks, and the importance of accountability in business planning.
Spreading Awareness and Seeking Expertise (00:44:23)
Adam urges CPAs to spread awareness about business planning and transition, emphasizing the role of experts in facilitating the process.
