You worked day and night for a long time to build your business, to make it successful, it’s your “Baby”. The business generated you a considerable amount of income every year you could count on, but, at some point, you know you’ll make an “Exit.” So now the big question is how do you turn the sales proceeds from your business, and your savings, into dependable retirement monthly paychecks, that will last for as long as you live, so you don’t have to worry about running out of money?
All you have to do is follow 7 Simple Rules.
Rule #1- Create a full comprehensive written retirement income plan that details every aspect of what you will do with your money from now all the way throughout your retirement. Written means written – get it in writing.
Rule #2 - showing how much income you will receive every year, where each income source will come from, and knowing when each income source starts, stops, increases, and decreases.
Rule #3 – do not take excessive risks with your sales proceeds. You already took a lot of risks as you operated your business, but now is not the time to gamble. You cannot let the stock market steal your retirement from you. You must avoid large stock market losses and never suffer through another 2008 type market crash again. Get the amount of risk you are taking in writing.
Rule #4- Create income that is guaranteed to be paid to you for as long as you and your spouse live, not maybe income that could decrease or end at any time. After your business is gone, you can’t afford to run out of money. Get it in writing.
Rule #5 – Know how much taxes you’ll pay on your annual income and know how much net income after-taxes you’ll have every month to spend. Get it in writing.
Rule #6 – Know how much you’re paying in total fees, both direct and hidden. Get it in writing.
Rule #7 – Know how much you can potentially leave to your beneficiaries after you use your assets for income your entire life.
If you’d like help implementing these 7 rules for business owners, call us today.
Vipul Varma
VIP Financial
402.547.0395
Financial Advisor in Parker Colorado
Estate Planning