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Considering your personal finances

Wealth Management UK



Considering your personal finances

With such a full agenda, matters relating to personal wealth are often overlooked as something that can be sorted out post-sale. However, there can be financial implications to waiting until afterwards, particularly when it comes to dividing business and personal assets, tax planning and making charitable donations.

There are points at which personal financial interests can be optimised and managed more smoothly before, during and following a business sale, so it’s important to think about your personal wealth, no matter where you are in your journey as a business owner.


Getting the right personal finance advice early can help you avoid the common structuring, planning and taxation pitfalls - expensive mistakes if you get them wrong. Whether it’s the taxation applied to the proceeds, or enhancing the value of charitable donations, important considerations can be missed if left as an afterthought.

Instead of waiting until you secure your cash post-sale, accumulating a nest egg as you start finding success as a business owner can help you prepare early for your future spending needs.

A good adviser can help with all the above, as well as preparing family, friends, and children for the reality of a business sale. Any public announcement will erode privacy, so careful preparation and sensitivity is key.

The point of sale

As you reach the point of sale, it’s important to consider how to secure cash from the sale on day one.

While this might sound straightforward, there are relatively few places where cash over £85,000 is fully protected. It’s important to review your options with liquidity and security in mind, making sure you open any accounts you night need in advance.

The sale of a business is invariably a life-changing event, for you and your family, so the immediate aftermath is not the time to be making long-term, hard-to-change financial decisions. It’s a good idea to wait a few months and think carefully about what you want to do with your wealth.


As you consider your longer-term aspirations and how you wish to enjoy your newfound wealth, it can be helpful to divide your assets into ‘pots’ with varying degrees of risk and return.

Key decisions will include how much to commit to a ‘nest egg’ fund to preserve and grow wealth for you and your family’s future to meet specific future objectives. Rather than a prescribed percentage or proportion of assets, this nest egg can aim to be an amount from which the returns after inflation are sufficient to meet your anticipated future spending needs.

Other pots have varying degrees of risk and return, ranging from a lifestyle pot – primarily tangible assets such as the family home or jewellery – cash, to enable spending and future investments, through to riskier growth assets, such as any remaining business interests.


As for many business owners, your capital is precious and usually irreplaceable. Investing for the long-term is therefore the best way to protect your heard-earned wealth for generations to come.

At Rothschild & Co Wealth Management, we set out to preserve our clients’ wealth, not make them a second fortune. We aim to deliver inflation-beating returns over the long term, while offering protection in the event of a market setback. To help us deliver our return objectives, we select every investment based on its individuals merits, risks and expected long-term returns, in a conviction-led approach.

Whatever stage you are at in your entrepreneurial journey, we’re here as a trusted adviser to help you plan and deliver your long-term aspirations. To find out how we can help you with your business and personal finances, please send us a message.



This content is produced by Rothschild & Co for information purposes only. This content does not constitute a personal recommendation or an offer or invitation to buy or sell securities or any other banking or investment product. Nothing in this blog constitutes advice of any sort and no responsibility is accepted in relation to the content accuracy or any reliance on the information provided.

The value of investments, and the income from them, can go down as well as up, and you may not recover the amount of your original investment. Past performance should not be taken as a guide to future performance. This content should only be used or reproduced with the express written permission of Rothschild & Co.