Many business owners do not know when – or if – they can afford to retire. They spend their time and efforts building a business but often don’t create a plan beyond it. A financial planning professional can help organize a retirement plan by using a systematic approach that considers all aspects of a business owner’s financial life.
A financial planner will start the process by reviewing the business owner’s current income, income tax, budget, and investment statements. This information will help identify current strengths and weaknesses and determine what’s needed to accomplish retirement goals.
As business owners get older, many look to sell. Even if they are approached to sell the business for millions of dollars, it might not be enough to sustain a long retirement. A successful retirement plan will factor in a number of selling prices, helping the business owner decide which most closely matches long-term goals.
Recently, a local business owner was approached to sell his business. It was determined he needed to sell it for $3 million so he could retire and maintain his current standard of living. Since he and his wife did some early planning, they felt more comfortable when they started negotiations.
Such analysis should be done at least 10 years before retirement. The sooner planning starts, the more successful the business owner will be in accomplishing his or her goals.
To learn more about how SS&G can help your bottom line or to schedule a complimentary one-on-one consultation, please contact us at 877-772-6341 or Rx@SSandG.com.