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Business Owners Face an Interesting Retirement Dilemma

January 23, 2018 | BerganKDV Team

Business owners face an interesting retirement dilemma, different from the average work and the corporate ladder climber. We recognize this and have the specific business design to help business owners through this complicated transition from successful business owner to the successful retiree.

When a business owner is asked what they’re doing for retirement you’ll likely hear “my business is my retirement plan” and therein lies the uniqueness of a business owner when it comes to retirement planning. Most career professionals save for retirement by saving a portion of their income and receiving company matches and other incentives like bonuses, stock, and even stock options. For business owners, however, their resources get plowed back into the business, and saving for retirement becomes largely an afterthought since they have more pressing priorities like growing a business. For them, their energy and resources each day and year go into growing the business and for good reason because their company is more than their retirement, it’s their livelihood, their kid’s education, and it’s all of those things to their employees as well. So then what are some of the challenges that are unique to the business owner?  Here are a few:

  • First, since all your time and energy has been focused on the business, you likely haven’t done any retirement planning over the years, creating a pent up demand for advice to the large and many complicated questions they have, and a steep learning curve to being reacquainted to the concepts of retirement planning.
  • Second, since most of their wealth has been tied up in the business they’ve likely been underserved by the investment community and their experiences have also likely been less than impressive almost given the “call me when you sell the business.” This can create a lack of trust with advisors and they may even recoil backward after they sell their company as the sharks start to circle now that they’ve become “private client material.”
  • Most importantly, business owners and their family are now faced with some very serious questions like how do I get income now? How do I manage my taxes during the sale and subsequent years after? How do I protect my family and assets and, how do I prepare my family to make sure we stay true to our values? These are very deep and complex decisions that take time and care to make sure they’re implemented correctly and that enough thought has been given to make sure these decisions are the right ones, they cannot be rushed.

At BerganKDV wealth management, we understand the challenges and concerns that are unique to retirement planning for business owners, especially since many are clients are, just that, business owners. We recognize that at the end of the day, clients want expert advice from someone who cares about their situation and will make their lives simpler.

So there it is, if you are having a lot of the same questions and concerns we’ve addressed, we’d love the opportunity to serve as your advocate and help guide you through the exciting and sometimes scary transition from a successful business owner to a successful retiree. We would be honored to start the conversation today. We know you’re busy so we will work around your schedule to have a discussion over the phone or over your favorite morning or afternoon beverage. Contact us!

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