You’ve worked hard, maybe 40 years without a break, you’ve seen your business grow, have enjoyed the fruits of the labor, but now the landscape is changing. New online services are replacing those you offered. Products from abroad that are sold cheaper and with higher quality are replacing those you sell to your customers. How do you cope?
To have a business and get older is one of the hardest occurrences that happens to people. It is unfortunate to grow old without a succession plan, and have financial problems at the same time. Especially with all the cuts to Social Security Benefits, and closure of SS offices that leaves many over 65 who are not internet savvy clueless on how to access their service.
How can business owners transitioning their business protect themselves against financial losses especially at older age?
I’m amazed at how many accounting firms cover succession planning, though it is not difficult to see why, there are many financial and accounting implications in succession planning, managing the business side of succession planning is as important.
As important as the succession planning topic introduced in our blog post on succession planning, retirement income planning, and the amount of income needed to retire are just as important topics. Family businesses rely on their own initiatives to create income, they don’t always have a pension in place, or any kind of outside income to supplement. So, what could they do to have a savings plan in place, where they lost what they had?
Bankrate.com offers some hopeful solutions.
1. Set realistic goals , don’t fret, be hopeful
2. Call in professional help, or alternatively you can go to free meetup.com groups to meet people in person
3. Catch up on contributions
4. Plan the exit, so you can save enough to help carry after retirement
5. Pay off any debt that you may have.
6. Prepare for any unexpected medical costs
Another article by Forbes shows a few more tips:
1. Most people in the States save 3.7% of their income for retirement, but it needs to be more than that, for example, living on 25% and saving 75% is a good way to hedge against financial meltdowns and save for retirement
2. Move to a cheaper part of the country, a house that costs 1 million takes longer to pay off, than one in a cheaper area.
3. Join a house swap, or barter to enjoy luxury lifestyles.
4. Move to a place with solid public transit– cars are expensive to maintain and lose significant value over time.
For more articles related to retirement from Forbes check out their online blog at www.forbes.com/retire
We will be covering more news on family businesses, and unconventional ways to save and earn income in the coming weeks.