In wealth management, the common focus tends to be on accumulating financial assets, ensuring security, and achieving financial success. With recent changes in tax policy, particularly the new inclusion rate for capital gains, many business owners, especially in agriculture, face challenges when trying to unlock their capital for future investments or growth. But there are innovative solutions that not only address the financial concerns but also aligns with the deeper values of living a fulfilled, purpose-driven life: leveraging insurance strategies to unlock trapped capital.
The Burden of Capital Gains Taxes
For many farmers and business owners, capital gains represent a substantial portion of their wealth. However, realizing those gains often comes with significant tax implications, which can limit opportunities for reinvestment or growth. By using carefully structured insurance solutions, it’s possible to unlock this capital in a way that minimizes tax exposure. Insurance solutions can serve as a tool for deferring taxes while still providing the liquidity needed to fund investments in the future whether it’s purchasing new equipment, expanding operations, or improving sustainability practices. This approach offers a unique solution to navigating the complexities of tax laws, allowing business owners to free up capital without having to sell assets or take on additional debt.
The Freedom to Focus on What Matters
However, the true value of this strategy goes beyond just the financial benefits. When business owners are able to unlock their capital and access the funds they need, they gain the freedom to focus on what truly matters: pursuing their long-term goals, fostering meaningful relationships, and investing in personal and professional growth. Financial success is not just about accumulating wealth, but about using that wealth as a tool to live a life that is fulfilling, purposeful, and aligned with one’s core values.
Stewart Gillott
Insurance Advisor, PWM Financial Services
