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Dec 7, 2016

Why should you consider a ‘personal CFO’ when looking to reduce your family’s financial complexity?

As a top executive, you manage the big picture of running your business, not its mundane day-to-day operations. And because you establish overarching goals for your company, you likely rely on a competent Chief Financial Officer to quantify those goals, develop strategies and measure progress.

Your company’s CFO also serves as a liaison with banks, investors and lenders and manages cash flow and investments. You hired him or her to maintain and improve your company’s financial health, and this trusted person works closely with you to achieve this goal.

Yet the irony is that while most successful entrepreneurs know the value of their CFO for their company, they fail to apply this lesson to their personal financial affairs. Indeed, CEOs and other executives are experts in leadership and vision but may struggle when it comes to routine financial details.

As these executives juggle the many responsibilities of leading their companies, important
routine personal financial items are often neglected, and complex items impacting their families financial health sometimes receive less attention than they deserve.

While most successful entrepreneurs know the value of their CFO for their company, they fail to apply this lesson to their personal financial affairs.

Even if an entrepreneur has a team assembled for his or her personal planning, it is often not well integrated: Attorneys, CPAs, insurance professionals and investment advisors may be working independently and not coordinating efforts.

This lack of coordination leaves the busy business owner with the difficult job of quarterbacking the whole family team, thus robbing focus from his or her business and personal priorities.

That’s why a “personal CFO” is needed. A personal CFO can help you shoulder this burden and leverage the same financial principles you use to grow your business, to build a better plan for your family.

A FEW THINGS TO LOOK FOR IN A PERSONAL CFO:

  • Find an independent fee-only, fiduciary advisory firm. This will ensure that your interests are put first.
  • Look for someone who works with a team approach and is capable of addressing a broad range of needs: investment, tax, estate-planning, charitable giving, business succession and risk management. A few specialists to look for on the team are: a CFP®, a CPA, a CFA®, a ChFC® and an estate attorney.

A personal CFO can help simplify your family’s financial complexity and help you keep your personal financial plan healthy and on track. Just as your business benefits from a CFO, you and your family deserve a financial ally who can develop strategies, vet your ideas and work with you to plot a course toward your ideal future.

To learn more about Savant and how we can help reduce your family’s financial complexity, visit savantcapital.com. Or call Brian Conroy at 847.441.0410

This is intended for informational purposes only and should not be construed as personalized investment advice. Please see your financial professional regarding your specific situation.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP® and CERTIFIED FINANCIAL PLANNER™ in the United States., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements..

Savant Capital Management is a registered investment advisor. Please contact Savant to find out if the firm is qualified to provide investment advisory services in the state where you reside. Savant’s marketing material should not be construed by any existing or prospective clients as a guarantee that they will experience a certain level of results if they engage Savant’s services.

Please see important disclosures at savantcapital.com
This article was originally published in the December 2016/Janaury 2017 issue of Worth.

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