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• If you are doing something worthy, with vision and passion that fuels your ambition and drive towards success, people will follow.



• If you treat others with kindness, respect, truth and dignity, and own up to mis-steps and mistakes – even when you falter as a leader, your team will still be there and rally to help you get things back on track.



• When difficult times come, a leader will be the first to go into the storm, and they will lead their team through to the other side, out of the storm.



• There is no staying power in a leader without genuine gratitude. People will stay if you treat them the way you want to be treated. Say “Please” and “Thank You” with true appreciation and you will develop a loyal following.

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• Depending on retirement age, you could accumulate in excess of $2,000,000.


• Contributions to the plan are made with tax deductible dollars.


• Pension assets are generally protected from bankruptcy and creditors.


• If there are changes within the company, there is flexibility to amend the plan.

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1. An FLP allows parents to have some indirect control over cash flow that goes to their children. When a parent “gifts” a limited partnership interest to a child, the child does not receive something that may be “spent,” as would be the case when a cash gift is given. Therefore, the parents maintain some leverage over their children’s spending.


2. By holding family assets in an FLP, such as non-homestead real property, a family is able to transfer that “undivided” interest while also maintaining consolidation of the property as a unit. This eliminates the fear of the asset itself being subject to “fragmentation” or “partition” in the future. This also allows the assets to be managed in a more comprehensive and prudent manner.

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3. The FLP allows simplified annual gift giving by allowing “percentages” of partnership interests in the FLP to be transferred, thus, maintaining the family assets as a whole.


4. The FLP helps keep the assets in the family because it provides Buy-Sell restrictions on transfers through the partnership. Typically, these Buy-Sell restrictions provide that if a child wishes to relinquish his/her FLP interest, the remaining family members may buy that interest themselves at a discounted fair market value. This applies to both voluntary and involuntary transfers.
   
   In addition, if a child (who is a limited partner) is going through a divorce, the FLP could function as protection in keeping any interest from being awarded to the non-partner spouse. Even if the non-family member spouse obtained interest previous to the divorce, they may be compelled to “sell” their interest back to other family members at a discount, if adequate restrictions on transferability are put in place.


5. Limited partnerships are considered to be one of the best asset protection entities in which to do business. The FLP can provide limited liability to the limited partners from the FLP’s creditors and some protection from the limited partner’s judgment creditors.


6. The “Business-Judgment Rule” applies to the FLP partners, as opposed to a higher fiduciary standard to the Trustees of a Trust, when investment decisions are made on behalf of family members and their assets.


7. The FLP can be used to reduce or eliminate probate and guardianship proceedings in foreign jurisdictions, and if used with a revocable trust, can eliminate those same proceedings in Texas.

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• Organizations with high levels of engagement continue to outperform the total stock market index and posted total shareholder returns 22% higher than average in 2010.
• On the other hand, companies with low engagement had a total shareholder return that was 28% lower than the average.

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1. “I know what my business is worth.”
   
   If you have a partner and are relying on your buy/sell agreement, an up-to-date valuation will ensure that your spouse gets the maximum amount possible. A current valuation done by a third-party valuation firm is one of the few things that will stand up in a court of law. A business owner who simply uses a multiple of last year’s earnings is not a figure that can be relied on. If a partner dies 5 years after a valuation has been done, if one has even been done at all, there have been many court battles where the spouse of the deceased challenges the value of the company. This disrupts business, cash flow, company growth, and more.



2. “I’m too busy running the company.”
   
   One family was too busy running their very successful company, and didn’t realize their life insurance policies that funded the buy/sell agreement for the partnership had lapsed. When a family member/partner unexpectedly passed away, the company nearly went bankrupt.



3. “That’ll never happen to me.”
   
   There are three ways in which business owners leave a company: a sell/transfer, disability or death. So far, the statistics show that 1 out of 1 people experience some form of death – mostly involuntary, and at an unexpected time. As far as the other two probabilities in which an owner leaves the company, they are represented in The New York Times article “Six Companies that didn’t make 2010.” Having a proper plan in place now will ensure that details are appropriately handled before an unexpected event occurs. As we all know nothing is ever guaranteed.



4. “There’s plenty of time for that.”
   
   Many business owners are too busy working in their company, instead of working on their company. Taking time out now to design a proper plan can save you months, even years of agony in trying to get a company back on track, which was derailed due to a lack of direction or clarity in focus. There is never a good time to get derailed – a proper plan now can ensure that doesn’t happen.



5. “My business is my retirement.”
   
   Sunbelt Business Advisors say that 84% of former business owners were depending on sale proceeds to help fund their retirement. However, only 40% felt their transaction was somewhat successful and only 10% felt they were even close to what they thought their business was actually worth.



6. “My CPA and Financial Advisors have assured me there will be minimal tax ramifications upon the sale or transfer of my business.”
   
   Most business owners have advisors working on portions of their business who have a singular biased approach. The attorney is only worried about legal issues, the CPA handles the taxes, and the financial advisor handles your investments and retirement accounts. However, this approach will most likely leave you with contradictory advice on what you should do next. Having a team approach where advisors collaborate respectively on what’s best for you and your long-term goals, will ensure that a plan is developed to pave the way for your legacy and what comes next in life, securing a future for you, your family and the next generation. 
   
   It is never wise to think you (or your CPA) can beat Uncle Sam – but you can have a better plan.

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