According to a study by BMO Wealth Institute, 68% of business-owning Boomers nearing retirement have less than $100,000 saved for their future. Why have these owners saved so little? 32% say they haven’t saved for retirement because they plan to sell their business.

The question is: are you willing to put all your nest eggs in that basket?

Thanks to a glut of Boomer-owned businesses for sale, only 25% sell at asking price. As a result, many owners are forced to sell at a discount and work part-time in retirement.

What if there was a way to fund your retirement without having to sell the business—at least, not right away?

Looking again at the study mentioned above, about three-quarters of respondents neglected to consider selling or passing the business on to a family member.

Here are 5 reasons they (and you) should reconsider keeping the business in the family:

    1. Legacy Protection –  Watch your business thrive under the care of a hand-picked successor.
    2. Value – Keep value in the company instead of selling at a discount.
    3. Residual Income – Take regular distributions in retirement.
    4. Stay Involved – Maintain a sense of purpose by contributing to the business on your terms.
    5. Tax Savings – Write off several expenses (cell phone, vehicle, etc.) while still employed by the company.

You’ve spent a significant chunk of your life building a business you can be proud of. Why sell the goose that laid the golden egg when you can use it to fund your retirement?

By the way, if you are a business owner in pre-retirement, check out the free 15min Retirement For Business Owners Masterclass to discover how to use your business for peace of mind in your retirement.

 

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Succession Strength, Inc helps entrepreneurs and family business owners pass the business smoothly from owner to heir. Take the free survey today to assess your succession readiness.