Where each of these options are certainly an option, how does one benefit from the sale and ensure that the funds will support their lifestyle in retirement. Some business owners attach the sale to a portion cash buy-out along with a percentage of the profits over a certain period of time. Some opt to accept a balloon payment at a later date. There is an emotion here more so when the business is sold to family or a friend. This can be a dangerous red flag in that there is no guarantee the new business owners will turn a profit despite the reputation and track record of our client who is the current business owner. Our service is to offer an objective overview of the options and advise on the tax consequences that if not careful, can destroy the retirement goals of our client. There is also the challenge that if a business owners has more than one child and each are expecting to inherit the business, this calls for a team of advisors to ensure that there is balance—not just what is fair for the continuation of the business but simultaneously, protecting the business owner’s retirement plan.

If you fit into this business owner category, perhaps now is the time to call us and let’s explore the options, understand your goals, and see if we can bring this into reality for you.