“My Business IS my retirement.” Really?

“My Business IS my retirement.” Really?

retirement_road-150x150

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

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.

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