A Year-End Wealth Planning Guide

For many business owners, the term ‘liquidity event’ immediately brings to mind a complete sale of the business. While a full business exit is one path, it’s far from the only one. What Is a Liquidity Event? Throughout a business owner's journey, there may be opportunities to access liquidity through partial sales, recapitalizations, ownership transfers, or other strategic transactions that provide financial flexibility while allowing continued involvement in the business. For founders and key employees, these events are often life-changing financial milestones, allowing them to cash out or diversify their personal wealth away from a single concentrated business asset. Because these events can significantly impact both personal and business finances, thoughtful planning before a transaction occurs can be critical for creating greater flexibility and alignment with long-term goals. Understanding Different Types of Liquidity Events Liquidity events take many forms, each carrying its own set of risks, potential opportunities, and important considerations. For instance, a business owner may decide to sell a minority stake to an outside investor to support future growth. Others may participate in a recapitalization, exchanging a portion of their ownership for liquidity while retaining operational control. Some owners pursue gradual ownership transitions through family succession plans, management buyouts, or employee ownership arrangements. In each case, the transaction creates a potential opportunity to convert a portion of a business asset into personal liquidity. However, the structure of the transaction often influences taxation, cash flow, estate planning considerations, and future business decision-making. Understanding the potential paths available to business owners can help them evaluate opportunities more effectively when they arise. Recognizing the Value of Early Planning A common challenge surrounding liquidity events is timing. Many transactions move quickly once discussions begin, leaving limited opportunity to address planning considerations after the fact. Planning well in advance of a liquidity event allows business owners to evaluate potential outcomes before key decisions are made. This may include reviewing ownership structures, understanding tax implications, assessing personal cash flow needs, and identifying how proceeds could support broader financial objectives. By bringing professional legal, tax, and financial advisors into the conversation before a transaction is imminent, owners may have more flexibility to explore options, evaluate risks, and consider strategies that may not be available later in the process. Evaluating Tax and Cash Flow Considerations In many cases, a liquidity event can significantly impact an owner's financial position. In addition to receiving proceeds, owners may encounter new tax obligations, shifts in income sources, and changes in long-term cash flow planning. The timing and structure of a transaction can influence how proceeds are taxed. Depending on the circumstances, considerations may include capital gains taxes, installment payments, retained equity interests, or future earn-out arrangements. Beyond taxation, business owners should evaluate how proceeds may fit into their overall financial framework. Questions may include: How much liquidity is needed to support current lifestyle needs? What portion should remain available for future opportunities? How should risk exposure change after receiving proceeds? What adjustments may be necessary to support retirement or legacy objectives? Addressing these questions in a proactive manner may help provide greater clarity as financial circumstances evolve. Aligning Decisions with Long-Term Goals Liquidity events represent more than financial transactions. They can serve as a catalyst for broader planning discussions about family priorities, retirement objectives, philanthropy, business ventures, legacy, and wealth transfer strategies. Proceeds from a liquidity event may provide some owners the flexibility to pursue new entrepreneurial opportunities. Others may focus on creating sustainable retirement income or establishing a long-term legacy plan for future generations. However, without a clear framework it can be easy for short-term decisions to overshadow long-term priorities. Taking time to define objectives before proceeds are received may provide an opportunity to align financial decisions with personal values and future goals. Planning ahead can also help reduce uncertainty during what is often a significant transition period. Maintaining Perspective During Transition Liquidity events frequently involve both financial and emotional considerations. Even when an owner remains involved in the business, a transaction can represent a significant milestone after years or decades spent building an organization. Since periods of transition can bring uncertainty alongside opportunity, maintaining perspective and focusing on long-term objectives may help owners navigate changing circumstances with greater confidence. Rather than viewing a liquidity event as an isolated transaction, it may be helpful to view it as part of an ongoing planning process where strategies adapt over time as business conditions, personal goals, and market environments evolve. Ready to Continue the Conversation? Whether a liquidity event is years away or already under consideration, thoughtful preparation may help better position today's decisions to support tomorrow's objectives. At Return on Life Wealth Partners, we help business owners think beyond the transaction and focus on what comes next. Call us at 440.740.0130 to talk about business exit planning strategies tailored to your goals. Visit us anytime at ReturnOnLifeWealth.com. Important Disclosures Investment advisory services are offered through Planned Financial Services, LLC, dba Return on Life Wealth Partners, an SEC-registered investment adviser. This material is for informational purposes only and is not intended to provide, and should not be relied on for, investment, tax, or legal advice. You should consult your own financial, tax, or legal professionals before making any decisions based on this information. All investing involves risk, including the possible loss of principal. Any strategies discussed may not be suitable for all individuals. Business exit planning strategies discussed are educational in nature and may not be appropriate for all business owners or situations. Discussions related to business exit planning, succession planning, valuation readiness, legal risk management, or ownership transition strategies should not be interpreted as personalized recommendations. Outcomes vary significantly based on individual facts, circumstances, and timing. This content does not constitute an offer to buy or sell securities or financial instruments. This content may not be copied or distributed without express written consent. For additional information, please refer to our Form ADV Part 2A Brochure, available upon request or at https://www.adviserinfo.sec.gov.

As 2025 draws to a close, many of us start reflecting on what we want to improve in the year ahead. Not surprisingly, two of the most common resolutions are about health and wealth. But what if the key to improving both lies in realizing how deeply connected, they are? At Return on Life ® Wealth Partners, we believe your financial well-being and physical well-being aren’t separate pursuits — they’re part of the same balanced life. The choices you make for your body, your business, and your bank account all influence each other. For example, financial stress doesn’t just affect your wallet — it can impact your sleep, mood, relationships, and even long-term health. Likewise, neglecting your physical or mental health can lead to costly medical issues and lower productivity. more When you invest time in your health — through exercise, rest, or preventive care — you’re also improving your ability to make sound financial decisions. After all, it’s hard to think clearly about your money when you’re running on empty. If you’re looking for ways to strengthen the connection between health and wealth to create greater balance in your life, consider the tips and action steps below. Create healthy habits Successful people don’t achieve balance by accident — they create it intentionally. Start by identifying your core values and non-negotiables, then schedule time for them. The key to forming new habits is to be specific and clear about your goals. Whether you’re saving for the future or working toward fitness goals, success often comes down to consistency and mindset. Consistency counts: Saving money and staying active share a powerful trait: delayed gratification. Small, repeatable actions, like contributing regularly to a savings plan or committing to daily walks, compound into long-term results. Mindset matters: A scarcity mindset can keep you stuck in fear and hesitation, while a growth mindset helps you make progress and adapt when challenges arise. And don’t underestimate the value of rest. Mental clarity can lead to financial decisions that support, rather than undermine, your goals. Focus on the long game Just like training for a marathon, building wealth is about pacing yourself, staying disciplined over time, and monitoring progress toward your desired outcomes. The start of a new year is an ideal time to review your financial “fitness plan” to help ensure your investment, insurance, retirement, tax, and estate planning strategies are aligned with your current lifestyle and future goals. Keep in mind, skipping your financial checkups can be as risky as skipping medical ones, since small issues can compound over time. Lead by example If you’re a business owner, you know firsthand how intertwined your personal health and your company’s success can be. It’s easy to sacrifice sleep, exercise, or family time in pursuit of growth — but those sacrifices can eventually hurt your business. Sustainable success comes from systems, delegation, and boundaries. When leaders prioritize their health, they model balance for their teams. Investing in employee wellness also pays off through higher engagement, lower turnover, and a stronger bottom line. Remember: You can’t lead a healthy business if you’re not a healthy leader. Maintain balance While maintaining balance can be difficult at times, it is by no means impossible. For example, the holiday season can be a joyful but challenging time for waistlines and wallets alike. Consider the following strategies to help you maintain balance and stay on track as the year wraps up: Celebrate with moderation — both financially and personally. Review year-end opportunities for charitable giving, income deferral, and tax strategies as appropriate for your situation. Avoid “holiday hangovers” from overspending, overeating, or overcommitting. Use downtime to reflect on what went well this year — and what you want to improve next year. Get a jumpstart on your goals Seeking to put your best foot forward in the new year? Get started with the following action steps: Automate smart habits. Set up automatic savings and recurring investments. Schedule your checkups. Your financial and physical health both deserve annual attention. Protect your time. Build non-negotiable self-care into your schedule. If you can’t do everything at once, start small. Consistency beats perfection! Ready to plan for the health and wealth outcomes you seek in 2026? Call us at 440.740.0130 or visit ReturnOnLifeWealth.com to talk about strategies tailored to health and wealth goals. And be sure to follow Frank Wealth Insights for more conversations about building balance in every area of life. Investment advisory services are offered through Planned Financial Services, LLC, dba Return on Life Wealth Partners, an SEC-registered investment adviser. The views expressed are for informational and educational purposes only and do not constitute specific financial, legal, investment, or tax advice. Please consult a qualified professional before making any financial decisions.

Making Real Estate a Core Pillar of Your Multigenerational Wealth Strategy You may be familiar with the “Great Wealth Transfer” – the estimated $84 trillion in assets that are expected to change hands over the next 20 years. This transfer of wealth is one of the most significant factors affecting today’s high-net-worth households and its impact is expected to increase in the coming decades. 1 The transfer of real estate assets will play a substantial role since 24% percent of this wealth is tied to real property in the form of primary residences, vacation homes, rental properties, and commercial assets. 2 Advantages of building wealth with real estate Real estate investments may offer opportunities to generate income during your lifetime and potentially create a lasting legacy by passing valuable assets to future generations in a tax-advantaged manner. However, it can also involve risks such as property value fluctuations, liquidity constraints, and ongoing management responsibilities. Despite these risks, real estate investments can provide: Equity growth: As mortgages are paid down and property values appreciate over time, owners build equity that can be leveraged or passed on to future generations. Passive income: Depending on market and occupancy conditions, rental properties and commercial real estate may provide ongoing cash flow that can be used to supplement primary income or be reinvested or saved. Inflation hedge: Property values and rental income tend to rise with inflation. As the cost of goods and services goes up, property values and rents generally follow suit, helping to offset the loss of purchasing power. Diversification: Adding real estate to an investment portfolio may help manage  portfolio risk by increasing diversification across asset classes with the goal of enhancing overall returns while reducing volatility Tax advantages: Real estate offers numerous tax benefits through strategies like depreciation and property-related deductions. Additional tax-saving strategies that may be available include: cash-out refinancing, bonus depreciation for rental properties, and 1031 exchanges that allow owners to defer capital gains taxes by reinvesting sale proceeds into another income-producing property. Active vs. passive investing There are many ways to invest in real estate. Depending on how involved you want to be in managing your real estate portfolio, you could choose an active or passive approach – or a combination of the two. Examples of an active approach to investing in real estate include buying a house to use as a short-term vacation rental, owning long-term tenant-occupied properties, or renovating and flipping houses for a profit. Purchasing and managing commercial real estate is another example. An active approach allows investors greater control and influence over lease terms and conditions, as well as the timing of a purchase or sale. Active investors typically collect rental income, build equity as property values appreciate, and reap important tax benefits. The downside of an active approach may include high up-front costs, significant time spent conducting due diligence and managing properties and paperwork, ongoing maintenance expenses, and lack of liquidity, among other considerations. Keep in mind, you may be able to outsource some of these tasks for a fee. Passive real estate investing, on the other hand, requires far less time and effort on the part of investors. Typically, a third party performs all of the work for you, from property selection and due diligence to the timing of the purchase and sale of individual holdings, property management, ongoing bookkeeping, tax reporting, and more. Passive real estate investors may also experience lower upfront costs and increased liquidity. As a passive investor you should expect to split profits with other investors and fund managers and share any tax benefits. Some of the ways to invest in real estate as a passive investor include: Real estate investment trusts (REITs), which allow investors to earn a share of the income produced by a real estate portfolio without having to buy, manage, or finance property themselves. R eal estate fund s that allow investors to purchase shares in a mutual fund or exchange-traded fund (ETF) that invests in REITs. Crowdfunding, where real estate platforms connect investors with real estate developers or project sponsors who are seeking funding for property acquisitions, renovations, or new construction projects. While real estate can be a powerful tool for preserving generational wealth, it can also present challenges. Real estate is relatively illiquid, requires upkeep, and can be difficult to divide equitably among multiple heirs. Market fluctuations, tax implications, and family discord can add further complexity when passing these assets to your heirs or the charitable organizations you support. That makes it important to work closely with qualified legal, tax, and financial professionals to develop a strategy tailored to your needs and objectives that reflects your goals, timeframe, risk tolerance, and need for liquidity. An experienced wealth advisor can help ensure that your real estate strategy is aligned with your overall financial plan and wealth management goals and take the lead in coordinating and implementing the advice you receive from your other advisors. To learn how your team of independent wealth planning professionals at Return on Life ® Wealth Partners can help you and your family pursue the Return on Life ® you desire, contact us today for a free consultation. About Return on Life ® Wealth Partners Return on Life Wealth Partners is an independent Registered Investment Advisor (RIA) founded in 1994, with headquarters in Cleveland. The team provides comprehensive wealth planning services to individuals, families, and business owners. By examining clients’ lives before their money, Return on Life ® aligns its advice with clients’ values. This personalized approach also extends to the institutional and corporate retirement plan services available through 401(k) Prosperity ®. 1 Cerulli, Associates, JAN 2022, https://www.cerulli.com/press-releases/cerulli-anticipates-84-trillion-in-wealth-transfers-through-2045. 2 Business Insider, NOV 2023, https://www.businessinsider.com/real-estate-investment-market-mortgage-rates-baby-boomers-down-payment-2023-11. Important information This blog post is for informational and educational purposes only and does not constitute investment, legal, or tax advice. Return on Life ® Wealth Partners is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training. The views and opinions expressed are those of the author(s) and do not necessarily reflect the official policy or position of the firm. Any strategies discussed may not be suitable for all individuals and are not guarantees of future results. Investing involves risk, including the possible loss of principal. Tax laws and regulations are subject to change, and strategies outlined may not be suitable for all individuals or entities. You should consult a qualified tax professional regarding your specific tax situation before implementing any tax-related strategy. Real estate investments, including REITs, funds, and crowdfunding, involve risks such as illiquidity, property value fluctuations, management fees, and market or economic conditions. Investors should carefully review offering materials and consult with qualified legal, tax, and financial professionals before making any investment decisions. Investment advisory services are offered through Planned Financial Services, LLC, dba Return on Life ® Wealth Partners, an SEC-registered investment adviser. For additional information and disclosures related to our firm and services, please visit https://www.returnonlifewealth.com/additional-disclosures.