Blog   Tagged ‘cash flow’

4 important steps after cashing out: Things you need to know about Liquidity Events

  |  Posted by

Several things may spark a personal liquidity event, or a large inflow of money, during your career. Selling a business, earning a large commission or accepting an executive buyout, are a few examples. And with that influx of cash comes many investment questions and options—particularly if your current employment is affected.

Understanding and evaluating the different personal and professional areas that may be impacted is important, as you will have many financial decisions to make once the event occurs. Career desires, market conditions, day-to-day finances and employer-provided benefits are a few of the items you will need to consider. Watch more on this topic in the below video. Also check out Part 1 of the Colorado Business Magazine video series where Marti discusses spring cleaning for your finances.

Below are the four important steps:

Continue Reading

1) Determine Your Next Career Step

First, determine your personal short- and long-term employment goals. Are you going to take some time off? Do you want to start a new business? Do you want to venture into an entirely new profession?  Understanding where you are now and where you want to land 12 months (or more) from now will help provide a framework for strategic planning and decisions.

2) Evaluate the Market Environment

The market has changed dramatically over the past few years, and these shifts could carry on for the foreseeable future. The current interest rate environment continues to provide challenges that didn’t exist for investors five years ago. It’s critical for you to have an understanding of current market conditions and how they will likely affect your investments.

3) Establish Your Cash Flow Plan

Now it’s time to look at your cash flow needs. Are you spending more than you’re earning? If the answer is yes, your asset allocation inside your current portfolios becomes extremely important, as there will be a need to fill the deficit without eroding your portfolio’s principal. For example, if you are making an annual salary of $100,000, one of your goals may be to replace that money with the interest earned from your portfolio as opposed to taking direct withdrawals. Advisors can provide you with recommendations and options on how to achieve these goals, while continuing to position your portfolio for your long-term needs.

4) Evaluate Your Ancillary Benefits

Health care, life insurance, savings vehicles, disability and similar benefits are often tied to employment and may end or need to transition when your current job service ends. Advisors can help you identify areas to review and provide recommendations on the best ways for you to move forward based on your strategic plan.

Liquidity events can provide you with many exciting opportunities, but they come with challenges as well. Taking the time to evaluate and plan how to proceed, both personally and professionally, is extremely important. A trusted advisor can work with you to navigate these different areas and make sure you are well positioned for the future.

 

When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.


Marti Brust joined UMB Private Wealth Management in 2006. As senior vice president and wealth advisor for the Colorado Investment and Wealth Management department, she works with high net worth individuals and not-for-profit organizations in the areas of investment, retirement, education and estate planning. Ms. Brust earned a Bachelor of Arts in Journalism with an emphasis in Public Relations from the University of Central Oklahoma. She has obtained the Certified Wealth Strategist designation and holds a state insurance and FINRA Series 7 and 66 licenses.

Leave a Comment

Tagged: , , , ,

Why Accept Credit Cards?

  |  Posted by

Consumers are increasingly using credit and debit cards to buy everything from a pack of gum to a new car. Small business owners need to adapt to this trend and accept credit/debit transactions from their customers so they don’t miss out on potential revenue.

The numbers don’t lie. Take a look at this infographic to learn more.

Continue Reading

Why Accept Credit Cards Infographic


Mr. Brown serves as a product sales specialist, supporting sales channel strategy for the business segment in Consumer Banking. He joined UMB in 2010. Brown received a master's degree in business administration from Arizona State University in Tempe, Ariz. and a bachelor's degree in economics from Morehouse College in Atlanta, Ga.

Leave a Comment

Tagged: , , , , , , ,