Funding your retirement income from your business depends on a number of factors, so it takes a systematic approach to make it work. I will cover some of the main points to consider to have a reliable retirement income.
The first question to answer is what is going to happen to your business in retirement? Are you going to be involved in running it, either on a full or part time basis? Do you want to maintain full or partial control of the business? Are there key employees or family members that you want to run or buy the business? How long will a full or partial sale of your business take? What is the value of your business, can it currently generate a cash flow to meet your expectations? For many business owners, most of their assets outside their home and possible vacation property are tied up in their business.
If you are planning to sell your business to a third party and move on, things should be fairly simple once the deal is done. Congratulations if Microsoft made your business an offer you couldn’t refuse. Then your only question is, “do I have enough money to retire on”, after the taxes and expenses are paid? I will address how much money it takes to retire in another post.
Business Lessons from Microsoft CEO Bill Gates
Microsoft had certainly a run like no other company on the market, and this is primarily due to its CEO, the famous Bill Gates. Through a combination of relentless focus, strategic brilliance and sheer determination, Bill Gates helped his company leverage the true power of computers, breaching the market by creating the legendary Windows for Pc. Moreover, Microsoft invented Internet Explorer, Office and BackOffice due to Gates’ persistence in creating top-notch services that could stand on top of today’s market trends.
Bill Gates Secrets
Even if Bill Gates dropped out of the reputable Harvard University in 1974, the next year he created the most innovative company in the world, called Microsoft, that would make Gates become one of the most wealthiest men in the whole world. Today, even if Bill Gates is no longer the most rich man on the planet, he still is worth $59 billion. He left behind a true heritage consisting of business lessons that can help any entrepreneur keep his head above water and give his competitors a run for their money.
The thought of traveling the world in your very own private jet truly sounds like something out of “The Lifestyles of the Rich and Famous.” Despite the belief that only the exorbitantly wealthy travel in this manner, purchasing your own jet for your travel needs may actually save you money in the long run. It sounds like the stuff of fiction or fairy tale, but it is actually true. The thing of it is, you need to be honest and in touch with your actual needs, have the funding to make the purchase, and have help with all of the filing necessities with the Federal Aviation Administration (FAA) and International Registry in order to make this fantasy a reality.
Do You Need Your Own Plane?
For those who travel a lot, be it for business or another necessary reason, flying on commercial planes can seem as though it takes an eternity. The fact of the matter is, having your own plane will save you a lot of time as you will be able to board and get on your way faster than a normal, commercial flight. This is not a time to be unrealistic though. According to Wiki How, flight experts agree that only those individuals who fly 350 or more hours per year would find this kind of purchase truly cost-effective. There are other options, such as having fractional ownership of a private jet, which would allow you to pay for the time you need it without having to worry about the cost of maintaining the plane.
Buying a plane is in the consumer’s court right now as well. According to Barron’s, private plane prices are down 20 to 50 percent from what they were in the early 2000s. If you do decide to purchase a plane, consider what size plane will meet your needs. You should not purchase a plane larger than what you actually need, so you need to consider how far you will be traveling and how many passengers the plane will be handling.
Cross Your T’s and Dot Your I’s
Buying a plane can be a bit of a hassle. There is a lot of documentation that is needed and just because you have the means to make this purchase, doesn’t mean you are well acquainted with all of the requirements from the FAA or International Registry. Not only that, the plane you purchase will likely need some improvements in order to meet all safety standards. Having an experienced professional help you through the purchase, filings, and escrow of the jet will greatly improve the ease of the transaction as a whole.
- License: Royalty Free or iStock source: http://office.microsoft.com/en-us/images/results.aspx?qu=jet&ex=1#ai:MP900427610|mt:2|
John Shelton is a business owner that utilizes his down time by giving advice to future and current business owners.