You’ve built the company. You’ve signed the big contracts. On paper, you’re worth millions.
But here’s the twist: success can be one of the riskiest stages of your financial life.
Entrepreneurs often assume stress comes from failure. In reality, wealth can become a burden if it isn’t accessible, transferable, or protected.
I met a business owner whose company had taken off after winning international contracts. He wasn’t celebrating; he was worried. All his money was locked in his business. He had no liquidity, no estate plan, and no flexibility to protect his family or seize new opportunities.
That conversation was a wake-up call: wealth without strategy can trap you instead of freeing you.
Paper Wealth Isn’t Real Wealth
Business owners often focus on growing their companies, not realizing how vulnerable they become when their net worth is tied up in illiquid private equity. Their company’s asset sheets may look impressive, but try covering taxes or preparing for an emergency and their assets can feel painfully out of reach.
That’s why liquidity matters. One way to achieve this is using some funds to build a ladder of conservative certificates of deposit (CDs), or using money market funds, or short-term Treasury bond funds, giving access to cash without derailing long-term plans.
Illiquidity Can Jeopardize Opportunity
Growth is exciting, but it brings its own risks. Without flexibility (read: liquidity), founders can’t respond quickly to market opportunities or protect themselves during downturns. Locking up wealth in the name of growth may stall future progress.
Building liquidity isn’t about playing it safe; it’s about giving yourself room to move when timing matters most.
Estate Planning Isn’t Just for Retirement
As valuations rise, so does estate tax exposure. The $15 million U.S. exemption per person (as of 2026) can disappear faster than expected if the political pendulum swings. Many founders assume there’s plenty of time to plan later, but growth doesn’t wait. By gifting shares early at discounted valuations or making cash gifts, you can reduce your future tax burden while creating opportunities for your family today. Successful entrepreneurs should begin their estate planning earlier than other people.
Success alone won’t secure your future. Only a deliberate strategy, built on access, flexibility, and foresight, can do that. Schedule your free Cross-Border Financial Evaluation here and let’s make sure your wealth works for you, not against you.
Douglas Goldstein, CFP® is the director of Profile Investment Services, Ltd. www.Profile-Financial.com. He is a licensed financial professional both in the U.S. and Israel. Call (02) 624-2788 for a consultation on how to set up your American assets to meet your financial goals. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of Portfolio Resources Group, Inc. or its affiliates. Neither PRG nor its affiliates provide tax or legal advice.
Published January 7, 2026.