Retirement can be an exciting but daunting prospect for many business owners. The fear that your retirement won’t be enough to fund your dreams is a valid one but you can confront it. You didn’t create a business with sheer luck, and you won’t retire with sheer luck, either.
Having a long and well-deserved retirement requires diligent planning with your goals in mind.
Start by asking yourself meaningful questions about what you expect from your retirement and you can begin to build this plan.
Details Matter When Planning For Retirement
Of course you can afford to travel when you retire but the important question is how well can you travel?
To make the most of your retirement, plan the details, make a financial strategy that satisfies your goals and think realistically.
If your retirement goals involve travelling, be specific on the kinds of travel you would like to do. The financial commitment needed to take African safaris is very different than weekends in the countryside.
Buying a holiday home will require more upfront than staying at hotels. Will you remain in your home or downsize so that you have disposable income for travelling?
Setting these priorities will ensure that you enjoy your retirement on your terms. Look at your travel goals carefully and build your retirement strategy around them.
A Solid Financial Strategy to Meet Your Retirement Goals
Having a well-researched exit strategy will be essential to creating a long-term retirement plan. If you plan on selling your business, you will benefit from working with a financial planner on how to make your initial windfall last through your retirement.
Keep in mind that the right buyer may take years to arrive.Have your records up to date and a sales portfolio ready at all times so that you’re ready for the perfect buyer.Your spotless record-keeping and documentation will make your business a valuable commodity, which will equate to higher value.
If your exit strategy means the passing of your business to a trusted partner or family member, be aware that you may have a more fixed income in your retirement years.
Knowing your exit strategy beforehand will allow you to plan your retirement accordingly.
If you would like to travel during your retirement, be honest and realistic with your retirement lifestyle expectations.
If you want to travel to exotic locales, take luxurious trips, and enjoy the well-earned fruits of your labour in style, have a realistic idea of the cost.
A concern for many business owners when they retire is that they may not have saved enough. Don’t just plan to live until you’re 80 – plan to live to 100.How does that affect your retirement plans?
By looking at your retirement funds over the course of 30-50 years, you can more easily see what you will need to save in order to live comfortably. Plan to live a long, healthy life and let that guide your decisions.
After running a successful business, the fear that your hard work wasn’t enough for a comfortable retirement is valid, but with a little forward planning it’s a fear that shouldn’t hold you back.