Modera Wealth Management is a wealth advisor for small-business owners whose net worth sits mostly in the company, with a focus on retirement plans, buy-sell agreements and succession or sale planning. We start by splitting business wealth from personal wealth, then decide which account holds what.
Most owners we talk with have one big holding and a few smaller accounts. That looks a lot like a tech employee with too much company stock, and we treat it the same way: first measure the concentration, then work out the tax bill of reducing it.
Modera Wealth Management and the 75 percent problem
Say a hypothetical owner has a business worth $3 million and $1 million in everything else. Net worth is $4 million, so the company is 75 percent of it. If a bad year hits the business, the paycheck, the equity and often the personal guarantee on the loan all take the hit together.
Our shortcut: when more than a fifth of your net worth sits in one asset, diversification comes before almost anything else. For this owner, a sale at $3 million with an assumed $300,000 cost basis leaves a $2.7 million gain, and every 1 percent of tax on that gain is $27,000. Small differences in structure and timing matter.
Every investment carries the risk of loss, including the money originally invested, and selling a business doesn't remove that; it changes what you hold.
Is a solo 401(k) better than a SEP if you have no employees?
If you have no employees besides a spouse, a solo 401(k) usually beats a SEP, because you can defer up to $24,500 of your own pay for 2026 and add an employer contribution, up to a combined $72,000. A SEP takes employer money only. The SIMPLE sits in between and suits owners with a small staff.
Where the money sits matters too. Modera Wealth Management's approach to asset location puts the highest-growth holdings in the Roth side of a solo 401(k) or IRA when that fits your bracket, and keeps bond income out of the taxable account.
| Plan | Best fit | Employee deferral limit |
|---|---|---|
| Solo 401(k) | Owner with no staff | $24,500 |
| SEP-IRA | Uneven income, no staff | None; employer only |
| SIMPLE IRA | Small team, simple setup | $17,000 |
Is it too early to plan a sale at 52?
No; a sale at 52 is exactly when planning pays, because buyers, lenders and the IRS all reward owners who start three to five years ahead. The business can be cleaned up, the numbers made readable and a successor chosen while you still have choices.
A buy-sell agreement is the document most owners with partners skip. It sets who can buy your share, at what price and what happens on death or disability. Update it whenever the company's value changes a lot, because an old price formula can force a sale far below fair value.
- Separate personal and business accounts now
- Get an outside valuation each few years
- Fund the buy-sell with cash or insurance
- Plan the sale year's gifts, including a donor-advised fund
Two years of owner pay in the bank
When income swings, we like a cash reserve equal to about two years of what you pay yourself, because selling investments in a down year is what really hurts. Pay yourself a fixed monthly amount from the business, and let the lumpy months fill the reserve.
One honest limit: this needs spare cash, and a young company reinvesting every dollar may not have it yet. In that case we start with a smaller reserve and build.
Your questions about Modera Wealth Management, answered
Can I put my business sale proceeds in a Roth IRA?
Not directly. Roth IRA contributions are capped at $7,500 for 2026 and phase out at higher incomes, so sale proceeds mostly land in a taxable account. That's why we decide in advance which holdings go where, and whether a Roth conversion fits.
Who should own the buy-sell agreement's insurance policy?
It depends on the structure, such as whether the company buys the shares or the partners buy each other out. Ask your attorney and a tax professional before choosing, because the wrong owner can create an unexpected tax bill or pull proceeds into your estate.
Do I need $500,000 in investable assets to talk with Modera Wealth Management?
Modera Wealth Management's client minimum is $500,000 in investable assets. Business value you haven't sold yet doesn't count as investable, so many owners wait until the sale or until retirement plan balances build up. Send a note through the request form.
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This is general information, not advice for your specific situation. Investing involves risk, including loss of principal. Nothing here replaces guidance from a tax professional or attorney. Talk to a qualified adviser before you act.