I Need to Start Planning for Retirement Now

For most business owners, the proceeds from the sale of their business generates a significant portion of the basis for their retirement investments. Therefore it is important to integrate the exit planning for a business with the retirement planning of the owner.

Tax planning can also be important, particularly if portions of the retirement plan focuses on providing assets or cash flow to grandchildren or non-family members. And depending on the size of the estate, care has to be taken to minimize estate and gift taxes.  If enough time is available company assets and/or shares can be transferred into an Asset Protection Trust.

The deal structure also has significant impact on the owner's retirement plan, particularly if an earn-out stretches out of several years, or stock of the acquiring company is a significant part of the purchase price.

Ultimately the deal structure, wealth management, estate planning and tax planning are all linked together.