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The Value of Partnerships: Retired Small Business Owner Reaps Rewards of Having the Right Financial Strategy
At 30 years old, Maynard "Garf" Garfield started his own consulting/training company, Persuasive Communications. After only a few years, he was training employees, managers, and CEOs of some of the country’s most prominent Fortune 500 companies. As Garf’s business grew, he realized he needed to take on a partner if it was to continue to flourish.
"Although I owned a successful business, it felt more like the business owned me," said Garf. "I could never call in sick or take a vacation. I needed a little help."
Since business partnerships come with inherent risks, Garf wanted to set up a buy-sell agreement, which would allow the other partner to buy out the remaining shares and keep the business going in the event that one of them passed away. He sought the guidance of Jay Pollack, a Financial Representative with Guardian agency, Lanny D. Levin Agency, Inc.
Pollack recommended that Garf and his partner each purchase life insurance to fund their buy-sell agreement, a move that would ensure that if something happened to one of the owners, the business would stay afloat and their families would be financially secure.
Years later, Garf exercised that buy-sell agreement and his partner bought out his primary stake in the company. Now 79 years old and retired, Garf continues to reap the rewards of wise financial planning.
"Thanks to the buy-sell agreement that Jay set up, I was able to more effectively run a successful business," he said. "I’m now able to enjoy my retirement and focus on the important things in life."
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