Economy Archives - Keystone CPAs

March 23, 2026March 23, 2026Business, Economy, Finance, InvestmentMaggie Tredwell

Take Care of the People That Take Care of You!

By Brian Wheeler, Principal, Keystone Wealth Advisors

One thing I have noticed over the years is that the true “value” of a company comes down to a handful of key people.

The True Value of a Company

The individuals who keep operations running smoothly, maintain important client relationships, are the keepers of the Company’s “Institutional Knowledge” and help the business grow year after year.

The operations leader keeps everything running smoothly.

The salesperson who maintains important client relationships.

The manager who keeps the team moving in the right direction.

The Impact of Losing Key People

Over the years, I have seen situations where the departure of just one of these individuals created a ripple effect that impacted growth, operations, and sometimes even the perceived value of the business.

One of the questions I sometimes ask business owners is simple, “If one of your key people decided to leave tomorrow, how difficult would it be to replace them?”

The answer often opens the door to some very good planning conversations.

Incentivizing and Retaining Key Employees

Many of the business owners we work with choose to create additional incentives for the key people who help build the business.

These might include things like:

Deferred compensation plans
Phantom equity or stock appreciation arrangements
Executive bonus strategies
Supplemental retirement benefits

A Strategic Approach: Non-Qualified Deferred Compensation

One approach that can work particularly well is non-qualified deferred compensation.

These arrangements allow business owners to reward loyalty and long-term contribution while aligning key employees with the future success of the company—often without giving up ownership in the business.

Why Leadership Stability Matters to Buyers

Interestingly, when we work with business owners who are preparing for an eventual transition or sale of their company, one of the most important factors buyers often look at is the strength and stability of the leadership team that will remain after the owner steps away.

Protecting the Value You’ve Built

Taking care of the people who help build your business is not just good leadership.

In many cases, it is also one of the smartest ways to protect the value you have worked so hard to create.

If you would like to explore some of the strategies available for aligning and rewarding key people in your organization, I would be happy to share a few ideas.

March 16, 2026March 16, 2026Business, Economy, Finance, Investment, Retirement, TaxesMaggie Tredwell

The $200,000 Retirement Contribution Most Business Owners Don’t Know Exists

By Brian Wheeler, Principal, Keystone Wealth Advisors

Many business owners assume their retirement plan is already doing everything it can.

After all, they’re contributing to their 401(k), their employees have a plan available, and their payroll provider handles the administration. Everything seems to be working.

But Here's the Surprising Reality:

Many successful business owners are leaving six-figure tax deductions on the table every year.

Not because they’re doing anything wrong — but because their retirement plan was designed for simplicity, not optimization.

The Hidden Opportunity

Most retirement plans set up through payroll providers are prototype 401(k) plans. These plans are convenient and easy to administer, but they are typically designed to serve the broadest possible group of employers.

That means they often don’t take full advantage of the flexibility available under the tax code.

For business owners with strong income and stable cash flow, there may be an opportunity to significantly increase retirement contributions through a more customized plan design.

When a Retirement Plan Becomes a Strategic Tool

In the right situation, combining a 401(k) plan with a Defined Benefit plan can dramatically increase the amount a business owner is able to contribute each year.

Depending on factors such as age, income, and employee demographics, total contributions can sometimes reach: $150,000 – $300,000+ annually.

These contributions are typically:

Tax deductible to the business
Compounding tax-deferred for retirement
Building wealth outside the business

For owners in their peak earning years, this strategy can become one of the most powerful ways to reduce taxes while accelerating retirement savings.

Why Plan Design Matters

Retirement plans are not one-size-fits-all.

The amount a business owner can contribute depends heavily on how the plan is structured. Key factors include:

Owner age and income
Number and age of employees
Compensation structure
Business profitability
Long-term retirement goals

A properly designed plan can allow owners to maximize their own contributions while still providing meaningful benefits to employees and remaining fully compliant.

The Limits of “Off-the-Shelf” Plans

Payroll providers often offer retirement plans as a convenient add-on to payroll services.

While these plans are easy to implement, they are typically built using standardized designs that may not incorporate strategies such as:

Age-weighted allocations
Cross-tested profit sharing
Cash balance or defined benefit integrations
Advanced plan design techniques

For high-income business owners, these limitations can translate into missed opportunities for significant tax savings.

Beyond the Business

For many entrepreneurs, the business itself becomes their largest asset.

But relying on the eventual sale of the business alone can create risk.

A well-structured retirement plan allows owners to systematically move wealth out of the business and into personal assets while benefiting from meaningful tax deductions along the way.

A Question Worth Asking

If your business is having a strong year, it may be worth asking:

Is my retirement plan designed for convenience… or designed to maximize opportunity?

The difference can be substantial.

Better Together

At Keystone, our teams work together across tax, wealth advisory, and business consulting to help business owners design retirement strategies that align with both their business success and their long-term financial goals.

If you’d like to explore whether your retirement plan could be working harder for you, we would be happy to start that conversation.

March 12, 2026March 12, 2026Business, Economy, Finance, InvestmentMaggie Tredwell

How Do Markets React to Global Conflicts?

By Brian Wheeler, Principal, Keystone Wealth Advisors

What History Shows May Surprise You.

When global tensions rise, many investors begin asking the same question:

“What does this mean for the markets?”

A Concerning Ripple Effect

For many business owners and investors, these moments can create uncertainty not only about their portfolios, but also about the broader economy and the businesses they’ve worked hard to build.

News coverage can make the situation feel urgent and unpredictable. Headlines focus on uncertainty, potential economic disruption, and the ripple effects across global trade and energy markets.

It’s natural to wonder whether events like these should change how you think about your investments.

The Initial Market Reaction: Uncertainty

When a major geopolitical event occurs, markets typically respond with short-term volatility.

Investors dislike uncertainty, and global conflicts create plenty of it. Questions arise about economic stability, supply chains, energy prices, and how governments and central banks might respond.

Because of this, markets often experience an initial pullback or spike in volatility as investors digest new information.

But that initial reaction is usually only the first chapter of the story.

What History Shows

Over the past century, markets have navigated numerous wars and geopolitical crises. While each event has its own circumstances, a consistent pattern tends to emerge:

Markets often react quickly at the onset of conflict.
As more information becomes available, markets begin to stabilize.
Long-term performance is ultimately driven by economic growth, innovation, and corporate earnings, not the conflict itself.

In many cases, markets begin recovering well before conflicts are resolved, as investors shift their focus back to long-term fundamentals.

A Look at History

While past performance never guarantees future results, history can provide helpful perspective:

Conflict / Event — Market Reaction — Longer-Term Outcome.

World War II (1941) — Markets initially fell after Pearl Harbor — U.S. markets recovered within months and rose significantly during the war years
Korean War (1950) — Short-term decline as uncertainty increased — Markets stabilized and resumed long-term growth
Vietnam War (1960s–1970s) — Volatility and inflation concerns — Long-term growth continued through economic expansion
Gulf War (1990–1991) — Markets declined leading up to the invasion — Rapid recovery once military action began
September 11, 2001 — Sharp but brief decline after markets reopened — Markets recovered within months
Russia–Ukraine Conflict (2022) — Initial volatility across global markets — Markets stabilized as investors refocused on fundamentals

While the events themselves were significant and often tragic, the broader lesson is that financial markets have historically been resilient over time.

Why Long‑Term Investors Stay Disciplined

Major geopolitical events can feel unprecedented in the moment, but history reminds us that markets have navigated:

wars
recessions
political shifts
inflation cycles
global crises

And yet over time, markets have continued to grow alongside the global economy.

This doesn’t mean volatility disappears. It simply means that long‑term investment success is usually driven by discipline, diversification, and patience — not by reacting to headlines.

The Value of Perspective

Periods of global tension remind us that investing is not just about numbers and charts. It’s also about maintaining perspective during uncertain times.

A well‑constructed financial plan is designed to account for volatility, uncertainty, and the unexpected events that inevitably occur over time.

While the world can feel unpredictable in the short run, long‑term investors who remain focused on their goals often find that staying the course is the most productive strategy.

For business owners in particular, moments like these often highlight the importance of coordinating investment strategy, tax planning, and long‑term business goals within a single, thoughtful financial plan.

Why Guidance Matters During Uncertain Times

Moments of global uncertainty often remind investors why having a thoughtful plan — and someone to help interpret the noise — can be so valuable.

Markets will always experience periods of volatility, whether driven by economic cycles, political developments, or global events. What matters most is having a strategy designed around long‑term goals, diversification, and risk tolerance, rather than reacting to each new headline.

During times like these, one of the most valuable roles an advisor can play is helping clients separate signal from noise, remain focused on their long‑term objectives, and make thoughtful decisions that align with their broader financial plan.

If you have questions about how current events may impact your financial plan or investment strategy, we are always happy to talk.

Sometimes the most valuable thing an advisor can provide during uncertain times is clarity and perspective.

March 9, 2026March 9, 2026Business, Economy, Finance, InvestmentMaggie Tredwell

Buyer Beware: How Deferred Maintenance Destroys Enterprise Value

As we move into the final stretch of the year, it’s time for every business owner to take a closer look at their policies and documentation for company-provided vehicles and employee reimbursements.

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March 9, 2026March 9, 2026Business, Economy, Finance, InvestmentMaggie Tredwell

Before You Buy the Golf Course: Protecting the Wealth You’ve Spent a Lifetime Building

By Brian Wheeler, Principal, Keystone Wealth Advisors

There is something deeply appealing about owning a “lifestyle” business. You love golf, so buy a golf course! Be the central gathering point for friends and family at your newly purchased restaurant, having private tastings at your winery.

The list goes on and on.

The Allure of the Lifestyle Business

For many successful business owners and professionals, these opportunities feel like the natural next chapter — a blend of passion, prestige, and investment.

But as wealth advisors, we have to ask a harder question: Are you investing… or are you risking the “farm”?

Charlie Lieder, former PGA professional and one-time owner of Arrowcreek Country Club once said, “our members are generally captains of industry, and are very successful. But they don’t know what it takes to run a golf course!”

Golf courses, restaurants, hotels, wineries — these are not just financial assets. They are emotional assets. And emotional assets are often priced differently in the mind than they are in the market.

When Passion Meets Concentration Risk

The danger is not the dream.

The danger is over-concentration.

If 60–80% of your net worth is tied up in one operating business, and you leverage additional capital to buy a capital-intensive lifestyle asset, you may unknowingly expose everything you have worked decades to build.

The Hidden Cost of Lifestyle Businesses

These Businesses Are Capital Hungry. Unlike asset-light advisory firms or professional practices, lifestyle businesses are infrastructure-heavy.

Golf Courses

Irrigation systems
Equipment fleets
Clubhouse maintenance
Seasonal labor swings
Weather dependency

Restaurants

High failure rates
Labor volatility
Food cost compression
Lease exposure
Thin operating margins

Hotels

Cyclical occupancy
Renovation cycles every 5–7 years
Brand standard capital requirements
Heavy fixed debt structures

These are not passive investments. They require consistent reinvestment just to maintain cash flow — let alone grow it.

I’ve seen successful entrepreneurs leverage real estate, brokerage accounts, and even retirement assets to support a struggling lifestyle acquisition.

That is when passion turns into panic.

Wealth Planning Before the Purchase

Before signing a letter of intent, I encourage clients to walk through five critical questions:

1. What Percentage of My Net Worth Is at Risk?

If this investment fails entirely, what does my life look like financially? Do I have enough time left in this life to recover financially?

2. Is This Funded With Excess Capital — or Core Capital?

Excess capital is investable surplus.
Core capital is retirement security.
Never confuse the two.

3. What Is the Downside Scenario?

Model:

20% revenue decline
Two years of flat cash flow
Major capital expenditure
Higher interest rates

If the model breaks your personal balance sheet, the deal is too large.

4. How Correlated Is This to My Other Income?

If you own a business sensitive to economic cycles, adding another cyclical asset compounds risk.

5. Is There a Defined Exit Strategy?

Lifestyle businesses are often harder to sell than they are to buy.

Debt Magnifies Emotion

Lifestyle acquisitions are often financed with significant leverage.

Debt:

Amplifies returns in good years
Accelerates losses in bad years
Removes flexibility
Forces decisions under pressure

When personal guarantees are involved, the line between business risk and personal risk disappears.

The Psychological Trap

Many high achievers believe:

“I built one successful business. I can fix this one too”, and sometimes that’s true. But lifestyle businesses often operate on lower margins, require different skill sets, and face customer expectations that are far less forgiving.

A Smarter Approach

Owning a lifestyle business can absolutely be rewarding — financially and personally.

The key is structure and scale.

Keep it to a manageable percentage of total net worth.
Avoid cross-collateralizing core family assets.
Maintain personal liquidity reserves.
Stress test the numbers with conservative assumptions.
Separate identity from investment.

You can pursue passion — without jeopardizing protection. Protect what you’ve built — so you can enjoy what you buy.

Michael D. Bosma, CPA Brian Wheeler

Keystone CPAs Keystone Wealth Advisors

Better Together.

March 2, 2026March 2, 2026Business, Economy, Finance, InvestmentMaggie Tredwell

From the Desk of Business Brokerage: When a Business Asset Sits Idle

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March 2, 2026March 2, 2026Business, Economy, Finance, InvestmentMaggie Tredwell

Innovation Is Rewarding. It’s Also Risky.

By Brian Wheeler

In this latest episode of Bosma on Business, Mike and TJ— often called the “godfather of golf” in Northern Nevada — talked about the realities of running golf courses, expanding operations, and exploring new models like simulator-based businesses.

The conversation wasn’t just about golf. It was about innovation.

Challenging Industry Norms

The most successful business owners don’t simply follow industry norms. They:

Reimagine revenue streams
Reinvest strategically
See opportunity where others see saturation

That kind of thinking creates growth. But innovation is never neutral.

Growth Requires Capital — and Clarity

New ideas often require:

Capital investment
Debt
Operational shifts
Hiring changes
Long-term commitments

When innovation works, it can be transformative. When it doesn’t, the financial consequences can move quickly — affecting both the business and the owner personally.

When Vision Outpaces Financial Modeling

We’ve seen expansions that looked exciting on paper compress margins in practice. We’ve seen new divisions strain liquidity. We’ve seen equipment purchases outpace cash flow.

Vision without modeling can be expensive.

Before You Pull the Trigger

At Keystone Wealth Advisors, our role isn’t to slow innovation — it’s to stress-test it.

Evaluating the Full Financial Picture

Before major decisions, we help owners evaluate:

Cash flow durability
Liquidity reserves
Tax impact
Personal exposure
Debt service risk
Exit timeline implications

Because business risk and personal financial risk are deeply connected.

Asking the Better Question

The better question isn’t: “Is this a good idea?”

It’s: “How does this idea impact my entire financial ecosystem?”

Innovation + Planning = Durability

Innovation builds momentum.

Planning protects it.

A Thoughtful Second Look

If you’re considering expansion, acquisition, capital improvements, or launching a new revenue line, it may be worth modeling the impact before committing capital.

A thoughtful second look today can prevent costly surprises tomorrow.

Better Together. Keystone Wealth Advisors

February 23, 2026February 23, 2026Business, Economy, Finance, InvestmentMaggie Tredwell

Unlocking Growth: Why Strong Operators Build More Valuable Businesses

By Brian Wheeler

On a recent episode of Bosma on Business, Mike Bosma spoke with Derek Fredrickson, CEO of The COO Solution, about a reality many founders quietly face:

At some point, growth demands structure.

The Evolution of the Founder

In the early days, the founder is everything—visionary, rainmaker, problem solver, and culture driver. But as the business grows, complexity increases. What once worked… stops working.

That’s when operational leadership becomes critical.

The COO as the “Air Traffic Controller”

Derek described a strong COO as the air traffic controller of the business.

Not the visionary pilot — but the leader ensuring:

Roles are clear
Accountability is defined
Systems are documented
Execution happens consistently

Clarity reduces friction. Structure creates scalability. And scalability builds value.

Where Operations Meets Enterprise Value

Through the Exit Planning Institute’s CEPA framework, we know business value is driven largely by Intangible Capitals, including:

Human Capital – the strength of your leadership team
Structural Capital – systems and operational processes
Customer Capital – revenue predictability and loyalty
Social Capital – brand and culture

A strong COO directly strengthens all four. When accountability improves, systems mature, and dependency on the owner decreases, enterprise value rises.

Exit Readiness = Stronger Bottom Line

Owners often tell us: “I can’t step away.” “Everything runs through me.” “I’ll think about an exit later.”

But operational weakness isn’t just an exit issue — it’s a profitability issue. Businesses with strong operational leadership tend to:

Improve margins
Reduce risk
Scale more efficiently
Command higher valuation multiples

Even if they never sell.

The Wealth Advisory Perspective

For many owners, the business is:

Their largest asset
Their retirement plan
Their legacy

Operational clarity isn’t just about running smoother meetings — it’s about protecting and growing the value of your biggest investment. When leadership depth increases, optionality increases. And optionality is freedom.

A Simple Test of Your Infrastructure

If you stepped away for 30 days: Would the business thrive… or stall?

The answer tells you everything about your intangible capital. If you’d like to explore how operational leadership impacts the value of your business — whether you’re planning to grow, transition, or simply gain more clarity — we’re always happy to have that conversation.

Because building a stronger business today builds stronger wealth tomorrow.