Retiring Business Owners: Here's How NOT to Fund Your Retirement
Retiring Business Owners: Here's How NOT to Fund Your Retirement
According to a study by BMO Wealth Institute, 68% of business-owning Boomers nearing retirement have less than $100,000 saved for their future. Why have these owners saved so little? 32% say they haven’t saved for retirement because they plan to sell their business.
The question is: are you willing to put all your nest eggs in that basket?
Thanks to a glut of Boomer-owned businesses for sale, only 25% sell at asking price. As a result, many owners are forced to sell at a discount and work part-time in retirement.
What if there was a way to fund your retirement without having to sell the business—at least, not right away?
Looking again at the study mentioned above, about three-quarters of respondents neglected to consider selling or passing the business on to a family member.
Here are 5 reasons they (and you) should reconsider keeping the business in the family:
Legacy Protection - Watch your business thrive under the care of a hand-picked successor.
Value - Keep value in the company instead of selling at a discount.
Residual Income - Take regular distributions in retirement.
Stay Involved - Maintain a sense of purpose by contributing to the business on your terms.
Tax Savings - Write off several expenses (cell phone, vehicle, etc.) while still employed by the company.
You’ve spent a significant chunk of your life building a business you can be proud of. Why sell the goose that laid the golden egg when you can use it to fund your retirement? By the way, if you are a business owner in pre-retirement, check out the Retirement For Business Owners Course to discover how to use your business for peace of mind in your retirement or get in touch.
Succession Strength, Inc keeps businesses in business for generations. Learn more about our Succession and Business Transition services. If you are a family business, take the survey today to assess your family business succession efforts.