Succession Planning Series Lesson 3: Well, I'm in the Market...and That's Scary


Well, I'm in the Market...and that's Scary

Yup. Sure is.

The most common misunderstanding of the market, stock or otherwise, is that you have retained control. Patently incorrect. Perhaps less incorrect than a misconception. You may retain ownership and the final "control" of decision making and veto power but it is the market that is truly in control. In addition to that, based on experience, the majority of your wealth is concentrated in retirement assets and the equity in your home, correct? Not surprised. So who is really in control?

Control vs. Ownership

Control is ownership in your company, ownership of the stocks and bonds within your portfolio, and the truly confidence inspiring residence and ownership of your residence are an illusion. Who determines what you can invest in, how much you can contribute, the amount, taxation and timing of the distributions of your retirement accounts? You, the Government, or the Market? Who decides upon value and taxation of your real estate? You, the Government, or the Market? Who decides on the value and taxation of your business? You probably get the point by now.

Despite our egos, efforts, intellects, and best intentions the value of the primary contributors to our net worth is truly controlled by externalities. Uncontrollable externalities at that.

So You Have Ownership. What About Control?

Control is synonymous with cash. Cash is the independence to snub markets, taxes, and buyers when you just don't feel like selling. Cash it the freedom to buy when you do. Cash is the ability to establish a long term plan based on variables beyond your control with a safety net to catch you.

The Ying to cash's Yang is cash flow. The ability to structure appropriate income producing vehicles while maintaining an economical tax reduction strategy will enable you to maintain your lifestyle after exiting the practice. In the face of potential contingencies and revenue requirements for the sold practice you will need an appropriate income generation strategy to fill your gap.


Ownership does not always mean control. However, once you have derived the FMV of your practice you can begin to put the investment and insurance vehicles in place to control your destiny in the marketplace. Stay tuned for strategies to take control in the second part of the Succession Planning series.

Click Here to read Lesson 1: The First Rule of Owning a Business is Always Be Prepared to Sell.

Click Here to read Lesson 2: How Do I Determine, and Convince Someone, of What My Practice is Worth?


Samuel P. Boyd is a CFP® and registered investment advisor based out of Capital Asset Management Group’s Bethesda, MD headquarters specializing in retirement planning, risk management, and succession planning for closely held business owners. He can be reached via email at

Securities licensed associates of Capital Asset Management Group Inc. are Registered Representatives offering securities through Cambridge Investment Research, Inc. A Broker/Dealer. Member FINRA/SIPC. Licensed administrative associates do not offer securities. Investment advisory licensed associates of Capital Asset Management Group Inc. are Investment Advisor Representatives offering advisory services through Capital Investment Advisors, Inc. A registered investment advisor. Capital Asset Management Group and Capital Investment Advisors are separate and unrelated companies from Cambridge.