The basis of wealth planning: The asset structure
The distribution of available liquidity and a corresponding withdrawal strategy have a significant influence on wealth planning, and the asset structure is also key. Entrepreneurs generally divide their assets among four pots:
Business assets are often not liquid, as they are tied down in investments in equipment, real estate, and/or inventories. What's more, non-listed company shares are only liquid to a limited extent.
This is why many entrepreneurs hesitate to transfer their corporate profits to their private assets. They prefer to maintain a certain liquidity reserve in their company while also avoiding the taxes associated with salary payments or dividend distributions.
Define a withdrawal strategy from a long-term perspective
Looking for a withdrawal strategy that optimally accounts for the tax implications on both the private side and the company side and minimizes your tax burden? We would be happy to provide personal advice and to analyze how assets can be transferred from the company to private wealth across the entire life cycle.
Withdrawal strategy across the life cycle
The withdrawal strategy depends to a large extent on the current situation. There are two phases for the life cycle of a company:
For example, during a company's growth period, the focus is on questions related to financing, and private assets can only be accumulated to a limited extent.
Subsequently, when the company has become established, there are often questions related to the transfer of company assets to private assets, along with the targeted accumulation of pension assets. During an even later stage, there are questions regarding company succession. Issues can arise if the withdrawal of funds has been delayed for too long.
Avoid negative interest with the withdrawal strategy
Not least due to the economic effects of negative interest rates, it is advisable for many SMEs to take a look at their withdrawal strategy. This should be reviewed periodically with regard to salary, bonus, BVG contributions, and dividends. Changes in the legal framework offer opportunities to optimize the withdrawal strategy in terms of the following:
Dividends, in the form of privileged dividend taxation
Capital repayments
Shareholder loans
Dividend recapitalizations
Private investments in wealth planning
Once an entrepreneur has transferred funds to their private assets, the actual private investment process starts with an analysis of the overall financial situation. Two questions are essential for your investment to succeed:
How much risk do you want to take with your private investments?
What is your investment horizon?
The answers to these questions depend on many factors. For this reason, entrepreneurs would do well to get an overall picture of their business and personal wealth planning. The experts at Credit Suisse can provide you with systematic support for succession, financial planning, taxes, investments, and financing.
Personal consultation
Do you have any questions? Would you like advice about withdrawal strategies and your personal financial planning? We look forward to assisting you. Complete the contact form and arrange a personal consultation with our experts.