Your Business, Your Retirement?

Is Your Business Your Retirement? Are you close to retirement and becoming concerned about how much money you will need to retire comfortably?
Are your worried that you may not have enough capital on which to retire?
You have spent a great deal of time and effort in building your business and it forms a great deal of your wealth.
Now you are thinking of retirement.

Just what role will your business play in your retirement planning?

If you are in this position, where you are going to use the value of your business for your retirement, you must have a Business Succession Plan.

You need to determine:

what your income need in retirement will be.

how best you are going to protect your capital

a strategy to unlock the value in your business to meet your retirement needs.

As a business owner, your retirement plan is more complicated than normal. Your business is not a simple investment. It is part of your life. Your blood, sweat and tears are built into it. To be able to move from active owner to retiree requires psychological preparation. It's not an easy process to take. Complex issues around valuing, selling and tax will influence your decision.
With most of your retirement capital in your business, you have a higher investment risk.

And a Business Succession Plan is the only way to clarify what you should do.
You need to address these and other issues well in advance of your intended retirement date.
Without a plan, you cannot ensure your income and security in your post-business years.

Can your Business be Your Retirement?

Here are some questions you need to have answered;

• What are your income needs in retirement?
• How will the business meet this need? Will it provide on-going income?
  Will you sell it, or redeem your interest over time?
• If there is not enough value in the business, have you other retirement savings?
  Is your worth mostly in the business? Is your retirement at risk if you cannot realise enough value from it?
• Have you an exit strategy? Have you considered successors?
  If so, have you identified future objectives to be met?
  Have you a structured plan for that succession? A time frame for transfer of ownership.
  Have you defined the roles for family and non-family members?
• Have you communicated your plan to suppliers, creditors and most importantly - your staff?
• What about shareholder's agreements, your Will and insurance portfolios?
• And the most vital need - what about the death or disability of your successors?
  You don't want your future income to be affected by their loss.
• Have you a backup plan in case your main plan fails?
• What about family members who do not wish to be in your business?
  You need to treat them equally.
  Have you other assets or insurance to meet their needs?
• Do you need to financially assist your successors while they settle into their new roles?

You need professional advice.
Someone who can assist you in formulating a retirement plan that will best meet your future needs.
Someone who is outside of your business, with a critical eye to point out potential threats.

PLEASE CALL ME for a no-nonsense, free and objective look at Your Business as Your Retirement. A second opinion cost you nothing, yet without it may cost you dearly! Cell: 083 377 8893

The sooner you address it, the sooner you will have peace of mind.

Don't leave your concern here. Call me for advice - no obligation!

pyburn@peterpyburn.co.za

Especially if Your Business is Your Retirement.