Before you sell your business, make sure your finances are appropriately set up for the retirement phase of your life. Start by reviewing your portfolio to ensure that the investment options you chose will provide sufficient retirement income for the future.
Your investments need to pay out enough to cover all current expenses as well as those associated with lifestyle changes you plan to make, like traveling more. Getting professional guidance can help guarantee you’re on track. After your finances are sorted and you have sold the business, it’s time to think about what you want to do with all the free time you suddenly have.
You’ll quickly learn that, like most people who’ve put in the blood, sweat and tears it takes to build a business, you were getting a lot more from the experience than a paycheck. Running a business gives your days structure and provides social contact, and a sense of purpose, but what happens after you sell your business?
Making the transition
There are a number of meaningful consequences associated with selling a business that are often not anticipated by former business owners. While you’ve gained a lot financially, you’ve lost the regular routines that gave your days and weeks structure.
One day can blend into the next, which may leave you missing the satisfaction that comes with being productive. And you’ve likely taken for granted all of the social interaction you got at work. Retirement can be a shock, which is why it’s not surprising that many people seek to buy back their old company or start a new business late in life. Transitioning from life as a business owner to that of a retiree can be rough, but you can make it significantly smoother by planning ahead.
Think about setting goals regarding what to do with your time, such as committing to retirement activities that provide structure and a sense of accomplishment. Volunteering for a charitable organization is a good example. The charity can benefit from the wealth of business experience you’ve gained in your lifetime, and you’ll benefit from the human connections volunteering provides.
Retirement may not be what you thought it was
There is a lot to think about when making the jump from owning a business to retirement, and we can help you work through the process. Blankinship & Foster, a San Diego fiduciary financial advisor firm, offers in-depth analysis and advice on everything you’ll need for this life transition. Our comprehensive services include, business succession planning, wealth management, estate planning, insurance review, and much more.
Schedule a free consultation today with one of our experienced financial planners. Together, we can design a strategy that meets all of your financial goals, allowing you to focus on planning your post-retirement life.