Today’s Smart Money Question:
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Here Are Just A Handful Of Things You’ll Learn:
A lot of times when I’m talking to a business owner, they’ll say, “If I execute my business plan, my retirement plan will go ahead and take care of itself.” There’s an assumption that somehow, some way on the back end it’s going to provide them some type of income when they’re not working there anymore.
They’ll say, “I don’t have a lot of investments, I don’t have a lot of money in the bank, but I really have a high net worth when you look at my business.”
Many business owners think they’re going to sell their business or pass the business to their kids and still take a salary and that will be their retirement plan. The problem is business owners often think their business is worth more than it actually is.
Then there’s the family situation. A family transition usually takes 5 to 15 years of having your family involved before you can transition out.
If you’re a business owner and one of your thought processes is, “I’m going to sell my business. The family is going to come and take it over,” it’s time to start evaluating and planning your exit strategy.
Business owners tend to put their heads down and grind. But you don’t want to lose sight of what your exit strategy should be. You want to be investing in other areas outside of your business so your total net worth is not wrapped up into an asset that could be very difficult to transition out of.
Listen to the full episode or use the timestamps below to jump to a specific section.
2:25 – Discussions with business owners
5:28 – Selling your business
8:04 – Your family situation
13:00 – The tax man cometh
14:05 – Question about Roth 401k
18:19 – Question about HSA
“You want to be investing in other areas outside of your business so your total net worth is not wrapped up into an asset that could be very difficult to transition out of.”
-Matt Hausman
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