So you’ve decided to
initiate your Business Succession plan by accumulating capital to buy-out a
partner (s) interest in your business.
By the way this works also if you are a sole proprietor just as
effectively. There are a few items to
keep in mind when selecting an investment.
The first thing you want
to do is carefully assess your risk tolerance.
My team and I frequent meet with investors who say they are very
conservative but when we review their portfolio, we discover they are invested
in some of the riskiest investments you can imagine. There are two causes of this. In some instances, they do investments on their
own. In other ways they do not do a
quick risk-reward analysis. We can
provide this survey for you. Simply send a quick email at rfowler@americanportfolios.com.
After you have completed
the risk-reward survey, you must ask for or be given a Summary Prospectus. This is a SEC requirement that ALL investors
be given this document. In years past,
the prospectus was 40 + pages of legalese.
Hard to understand and simply boring to read. However, today investment companies have streamlined
this document. It can be read in a few minutes. Why all the fuss and emphasis on this paper?
Simply put, the prospectus
will explain ALL the fees, expenses and charges in each particular
investment. Additionally, it will
describe the risks involved in each particular investment. Please keep in there is a different summary
prospectus for each investment.
Next, we will explain the
different classes of different investments.