The Baby Boomers are retiring and not just from the jobs they work but the businesses they own as well. However, after a lifetime of planning, certain steps should be taken to preserve the sale proceeds to ensure a comfortable retirement free from any worry. The first step should always be to plan if advance how the proceeds of the sale will be saved and invested. Even a lifetime of smart financial planning for a business can be undone by one bad decision after an income stream has been terminated by retirement. Using a team of advisers, particularly an attorney and financial planner, will protect the retiree and offer multiple viewpoints before an action is taken. In addition, if the business is being sold as an ongoing concern then take steps to preserve business structures for long time and loyal employees. While the owner might be checking out for a big payday, the workers must continue and they should be protected as much as possible by advance planning between the current and potential owner.
See Drew Horwitz, Business Succession Planning in the Twilight of the Baby Boomer Era, Wealth Management, September 8, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
