As a business owner, your business and your life are pretty hard to separate. Your business partner or right-hand employee may be a spouse, a sibling or that college roommate. Chances are your assets are entirely bound up in the company, and you might even intend to sell the business to fund your entire retirement.
This was the advice given in a recent New York Times article titled “Sell a Business to Cover Retirement? Don’t Count on It.”
When it comes to your business, you might be OK with the idea that it is empowering your financial life (or is it your life that is empowering the business itself?). Regardless, there will come a time when you and the business must part. This will be one of the most important events in your life and in the life of your business.
Question: will this even be a planned event or just happen?
If the business is your greatest asset, you are just going to sell it and live comfortably in retirement from the sale proceeds, right? Perhaps. What if the business is not "worth" as much in the market as it is in your mind?
If the business is your principal retirement asset, then knowing its value and preparing the business for the transition is of utmost importance. This transaction will determine your future well-being, and perhaps the future well-being of your entire family for a long time. Accordingly, this transition will take structuring and forethought whether you are in Overland Park or elsewhere.
Will your business be your retirement? If yes, then it is never too early to structure the transaction?
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.For more information about estate planning in Overland Park, KS, and to download free tools to help you organize your estate, visit my estate planning website.
Reference: The New York Times (July 24, 2013) “Sell a Business to Cover Retirement? Don’t Count on It”