Funding Your Retirement with Your Business

On June 7, 2011, in Asset Planning & Protection, by Todd Stewart

I read a study of family business owners recently that found:

88% said they strongly believe their business will still be controlled by the family in five years
26% said they have spent little or no time on succession planning
An average of half of their personal net worth is the family business.

That last bullet, in my experience, explains the other two. With so much wealth having been accumulated in the family business, business owners tend to convince themselves that a solution will present itself when the time is right. Most of them are mistaken. One of my firm’s goals is to reverse this trend among our clients.

I enjoy helping clients resolve the issues related to the fact that so much of their income is derived from the cash flows of the businesses they control. Once that is mapped out satisfactorily, owners are usually more at ease in discussing transfers of ownership and control to the next generation.

Please give us a call and we can discuss the many options you have available regarding your long-term vision for your business.