“My Business IS my retirement.” Really?

“My Business IS my retirement.” Really?
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I usually begin my talks at NAMM or sharing groups with three questions:

1-How many of you are relying, on the proceeds of your business to help fund, at least in part, your retirement?
Half the hands go up. I jokingly say, for those that have not raised their hands, you either have a rich spouse, are expecting an inheritance, or  plan on selling real estate, because we both know you can’t live on social security alone.

2- How many of you know how much monthly cash flow you’ll need from your business or other sources to support your personal retirement? Fewer hands go up.

3-And how many of you know how you’re going to create the cash flow in a tax effective manner, and know what you will do in your personal life after you exit?  Here hardly anyone raises their hand, but I do usually hear a few laughs.

The primary business continuity document, your lawyer will prepare is called the Buy/Sell agreement. This document ought to manage the risk of the 5Ds: Divorce. Death. Disability. Disagreement.Departure.

The Info graphics below (compliments of the Principal Financial Group) highlights the key components of the Buy/Sell. If you already have a Buy/Sell agreement in place which is not addressing all of the 5Ds stated above, your documents may be worth re-visiting.

InfoGrahic part 1 Principal Group Buy-Sell

InfoGraphic part 2 Principal Group Buy-Sell

Going to Winter 2018  NAMM?

Say hello to Jaimie at his talk at the Idea Center on Saturday 1/27/18 at 2:00

Written by Jaimie Blackman

Jaimie Blackman

Jaimie Blackman — a former music educator & retailer— is a Certified Wealth Strategist & Succession Planner. Jaimie helps business owners accelerate the value of their company so it can be sold profitably when ready to exit. He is a frequent speaker at the National Association of Music Merchants, (NAMM) Idea Center and has spoken at Yamaha’s succession advantage.

His content has been published in multiple trade magazines including:
Music Inc., Music & Sound Retailer, Canadian Music Trade Magazine, and Sound & Communications.
His column is now published monthly in MMR— Musical Merchandise Review—and contributes to NAMM U online.

Jaimie is CEO of Jaimie Blackman & Company, and Creator of MoneyCapsules® and the Sound of Money®.
To register for Jaimie’s live webinars, or to subscribe to his podcasts & webcasts, visit jaimieblackman.com.

The purpose of this post is to educate. Our content should not be construed as advice. If legal, tax or other advice is required by the readers, professional advice should be sought.

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