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.
How Much do I Need to Save for Retirement?
This is a Retirement Planning video that goes along with my complete article on Retirement Planing and How Much to Save for Retirement at http://businesstowealth.ca/retirement-plans-how-much-to-save-for-retirement/. Business to Wealth is my blog to help Business Owners turn their enterprise into the lifestyle they are striving for, both before and after retirement.
This article will look at your retirement plans in order to answer the question, how much to save for retirement? There are several different ways to calculate this number, and of course the value will vary from person to person depending on their circumstances. But, to give you a ballpark number, for most retirees if you have around $500,000 at age 65, and have a home paid for and no debt, you should be able to have a comfortable if modest retirement, and you will be much better off than the majority of other retired people. If you want an above average or deluxe retirement you will need more savings.
So you’ve finally done it. Congratulations! After years of hard work, and the proverbial blood, sweat, and tears, you’ve made it to retirement. The only problem is, after decades of getting up dutifully and going to work, you all of a sudden have no frame of reference for how to spend your days. From a regimented schedule to suddenly an open-ended year of nothing, retirement can seem daunting with uncertainty.
But assuming you’ve done the leg work, and saved up money for your retirement life, you’ve got an amazing couple of decades ahead of you, and a great time to enjoy retirement, life, family, and all the things you missed along the way.
In fact, if you’re out of ideas, there are a few things you can do and ways you can enjoy your retirement that are cheap, easy, fun, and will leave you with plenty to do when it comes to life and a new lifestyle.