“If you have a successful business, make sure that you find an advisor that understands you and gets you, that's a fiduciary,” explains Tammy Trenta, Founder and CEO of Family Financial. Tammy is a certified financial planner, tax coach, and exit planning advisor. Today, Tammy joins host Kiley Peters to talk about how to integrate holistic financial planning into your business and why it is so vital to work with a fiduciary.
Most certified financial planners are not also fiduciaries. A fiduciary is someone who has a legal obligation to put their client’s needs ahead of their own. For example, anyone who works for a publicly traded company cannot be a fiduciary. It can be complicated to determine as your business grows what you should incorporate and what type of business you should file your taxes as. This can lead to complications with deductions and if you’re not careful, you could end up owing a lot of money in back taxes to the government. The benefit of a holistic approach to financial planning is having someone who really understands your business needs and your overall financial goals.
When it comes to financial planning, it is important to do your homework and hire a certified financial planner that really understands your needs. It can be difficult to find a CFP that is also a fiduciary, but it is worth the extra work to find the right advisor.
“A fiduciary is somebody who has a legal obligation to put the client's needs ahead of their own. So if you work for any publicly traded company, are you advocating for the client? Is it even possible to advocate for the client when really you're accountable to the shareholders?” (5:53-6:14 | Tammy)
“Many business owners are underserved primarily because even if you are a certified financial planner, many certified financial planners who are not self employed themselves, don't know what it's like to be a business owner. They don't understand the needs that a business owner has.” (7:19-7:39 | Tammy)
“You need to be careful with schedule C. Because they will take your company, whatever business it is, and they're going to compare it to other companies. And they're going to see what the average is and they're gonna make you prove all of these deductions as to whether you're legitimate.” (16:52-17:10 | Tammy)
“When it comes to incorporating, we might need a lawyer to come into play. But, in my opinion, the lawyer is not going to be helpful, unless they have the context.” (32:01-32:17 | Tammy)
“If you have a business and you have a successful business, make sure that you find an advisor that understands you and gets you, that's a fiduciary. Make sure that they're a certified financial planner, and that they do planning.” (35:34-35:52 | Tammy)