Instead of saving steadily for retirement, some small business owners plan to sell their enterprise for a lump sum that will fund their golden years. However, this can be a risky strategy. It’s important to contribute to a retirement savings plan as much as you can. As for selling your business, you might want a contingency plan there as well.
For example, Plan A may be to sell for a generous profit, but Plan B could be to retain equity in the business and train a younger employee or one of your children to take it over when you retire. It’s a good idea to consider the demographic of potential target buyers of your business in the future and to manage operations to enhance its appeal to that group of individuals. For example, upgrade your technology systems to increase its value. Remember, too, that if you continue to own a share of the business, it could generate passive income to supplement your nest egg.
If we can be any assistance in helping you with your retirement strategies, please call us at 801-990-5055.
Our firm assists retirees and pre-retirees in the creation of retirement strategies utilizing insurance products.
The information contained in this material is provided by third parties and has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. It is given for informational purposes only, and no statement contained herein shall constitute tax, legal or investment advice. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. You should seek advice on legal and tax questions from an independent attorney or tax advisor. We are not affiliated with the U.S. government or any governmental agency.