Baby Boomers Retiring at Alarming Rates…But Are They Ready?
“It is estimated that the Baby Boomer generation is entering retirement at a rate of approximately 10,000 people per day. That is a startling figure.”Some Boomers are prepared for retirement, but others are not, says Moultrie News in the article titled “Securing retirement through engaging in business exit planning.”
Many soon-to-be retirees are closely-held business owners who have created and operated very successful businesses for years, but they’re now considering what their next move will be.
These people frequently have questions about transferring their interests to their children, key employees, or even selling to an outside third-party. They wonder what the company is worth and if they’ll be able to achieve financial independence. Another big issue is how to create a plan that keeps them in control and provides greater options.
Because the vast preponderance of closely-held business owners’ net worth (up to 85%) is wrapped up in their businesses, it’s vital that they start the exit planning process early.
Starting early, lets an owner consider and address critical planning needs. Every successful exit begins with deciding when the owner wants to exit, to whom they wish to sell or transfer their business and how much equity they want or need from the business.
Your exit plan should address both personal and business asset protection, strategies for tax minimization and value maximization, successor development, business continuity planning, and estate planning.
Your exit plan is your blueprint that keeps you in control of the exit planning process.
Baby Boomers should carefully consider and integrate this into a comprehensive, tailored plan.
Planning for these important parts of your strategy today, helps make for a successful exit tomorrow. It also gives business owners more options and peace of mind.
Reference: Moultrie News (March 30, 2018) “Securing retirement through engaging in business exit planning”