Don’t Drop the Ball: Private Banking Can Help You Juggle Your Financial Responsibilities

BY: Jane Simon

For business owners, entrepreneurs, and professionals with significant responsibility – such as physicians, lawyers, CEOs, engineers, and more – it can be common to be hyper-focused on business and professional commitments, to the detriment of personal finances.

The most common explanation is usually that business finances are under constant scrutiny, and there's only so much energy and time left over to devote to the personal side..

Totally understandable.

That's where Private Banking can help. Much like a nurse navigator coordinating complex health care, your private banker can coordinate a team of specialists to identify any gaps within your personal and professional finances, so nothing gets missed.

COVID-Encouraged Financial Reviews

The events of the past year served as a catalyst for many to look at their funds differently. Many people who kept their investments and deposits on cruise control took the time for a full financial review for the first time in a long while.

A frequent result for many business owners and professionals was that they realized they had a bunch of different buckets – cash, investments, real estate, etc. – but no real unified plan for their money.

Sound familiar?

It might be time to admit that “hoping for the best” is not a successful strategy. As a private banker, I can sit down with you to review your complete fiscal picture and perform a fact-finding session to determine what needs attention and connect you with the right person to handle the job.

What Is Private Banking?

Private banking is an option that helps simplify the banking experience for those who utilize a wide variety of banking services.

Just as an individual’s or organization’s net worth grows over time, their banking needs also typically grow more complex. Usually there is a tipping point, when a person, family, or institution requires coordination among bank deposit accounts, personal or commercial lending, wealth management, college savings, succession planning, trust services, fraud protection, and more. While there are always exceptions, many people who take advantage of Private Banking often require both personal and professional assistance.

The real benefit of Private Banking comes from the easy coordination and management of your finances across many services. In addition to the simplicity of a single point of contact, getting to know your comprehensive banking needs enables us to provide customized options.

Helping You Juggle

Let’s look at a common example. I recently met with a client who was a business owner with the following “buckets”:

  • Liquid cash
  • Personal investments
  • Personal loans
  • Commercial finances
The client’s commercial loans needed to be renewed at the same time they required some personal funds. They didn’t want to use their home to secure those funds through a mortgage. They asked me for options.

I suggested they use their investment account to secure a line of credit. Let me be clear, they did not withdraw any money from those investments. They simply used that capital as collateral for a line of credit that enabled a short-term turnaround for money they could pay back over time.

As part of this strategy, I made sure to circle back with their commercial lender to be confident that this line of credit would not affect their business loan renewal by adding too much “loan load.” By having one point of contact with access to all their financial buckets, I was able to coordinate a cohesive solution to their need for short-term funds without any detrimental side effects.

How Do You Get Started?

Many people assume they don’t “qualify” for Private Banking services. In truth, the threshold at a large national institution usually coincides with the bank’s overall worth: a big bank means clients with big bucks. Conversely, Private Banking at a community bank, like State Bank of Cross Plains, is much more accessible. If you think it’s remotely possible, it probably is.

In addition to helping more people with more of their needs, SBCP has a local private banker who can work with you over the long haul. No shuffling you around.

For more information about whether you qualify for Private Banking and how we can customize your banking experience, please contact me today at (608) 828-2293.

Jane Simon

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