Offer a Business Owner Retirement Analysis
As families gather for the holidays, some business owners may be thinking about retirement and discussing things like when they want to transition out of their business and who will take over. For many, their business is their retirement. That’s why it’s important to look at how the business impacts the owner’s retirement plan by asking a few questions:
- Will the business be sold to a third party?
- Will the sale be a lump sum or installments?
- Will the business be transferred to family members?
- Will the buyer be an ESOP?
- Should the owner be taking more out of the business to reinvest and diversify his or her retirement portfolio?
A great planning tool is our personalized Business Owner Retirement Analysis. It can show the income stream from the business based on the strategy the owner plans to use. If the owner already knows the value of the business, we can use that. If not, we can do an informal valuation for most businesses using three years of financials. And by gathering information on other assets such as qualified plans, annuities, mutual funds and life insurance that will be used in retirement, a full retirement analysis can be completed. If a client comes up short in meeting his or her objectives, the analysis also offers ways to fill the gap.
Advisors have had great success using this tool and I’d like you to give it a try! You can learn more about it by calling our Business and Advanced Solutions Hotline at 833-803-8345.
In closing, I’d like to thank you for your business in 2018. We’ve had a great year in the business market, and we look forward to another outstanding year in 2019. I hope you all have a wonderful time with your family and friends over the holidays.
Mark West, J.D., CLU®
AVP- Business and Advanced Solutions
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