The sale of a business is often a huge transition that can feel overwhelming not only from a personal standpoint, but from a financial one as well. I have helped people in this situation by focusing on these five things to make the transition a little easier to manage.

 

1. Evaluate your plans for retirement: What types of things will you be doing in retirement? Will you be gifting money to children and/or grandchildren? Moving or buying a second home? More traveling? How much will all of this likely cost? 

2. Evaluate your sources of income: Will you be receiving social security? How much did you receive from the business sale? Do you have rental income or pensions? 

3. Come up with an investment strategy: Your fixed sources of income will likely not pay for all of the things you want to do in retirement. It’s a good thing you just sold a business! With the help of a trusted financial planner, the proceeds can be invested in a way that is geared towards your spending needs and life-long goals.  

4. Review your old insurance policies: Your financial situation has just changed drastically. The reasons that you purchased insurance in the past may no longer be valid. Among other things, you may need less life coverage and more liability coverage to protect your assets.  

5. Review your estate planning goals: Now that your business has been turned into a liquid asset on your balance sheet, we know exactly what we have to work with. How much can you afford to give away without compromising your own plans? Might you need to create a trust to pass on your wealth to the next generation or charity? An estate planning attorney can help you determine a course of action based on your goals and wishes.

​

Often times it can be helpful to have a conversation around these topics with somebody who has successfully helped facilitate the transition first hand. I invite you contact me if you have any questions or would like to discuss any of these items in detail.