Tips for business owners dreaming about retirement

We asked business owners to tell us their challenges. Not surprisingly, more than 88% said their greatest financial concern is being able to maintain their lifestyle in retirement and transition their business to the next generation. If this is a worry you share, we can help.

Experience has shown us that proactive planning and a true understanding of the value of your business can help create a liquidity event that addresses the financial needs of each generation, using strategies such as:

A discounted sale to the next generation. This approach allows for the creation of some liquidity while making sure the next generation of owners has “skin in the game.” However, it is only feasible if you have enough savings to forego the proceeds from selling shares at a full market value.

Recapitalization of the business. For a business with a history of growth and consistent cash flows, issuing additional equity or replacing a portion of equity with debt can allow for the potential generation of sizable liquidity to be generated while the family still retains control of the business.

A long-term savings plan. A suitable combination of after-tax and non-traditional owner focused retirement plans can create substantial liquidity and generous tax savings, but often goes unutilized by business owners.

Luma Wealth’s Andrew R. Connors, CFP®, CEPA, uses a personalized approach to advise family and closely held businesses and would be happy to help yours. Call him, toll free, at 866-995-6808 or email


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Disclosure: The survey results are based upon the responses from 123 self-identified U.S. business owners in a 2013 survey conducted and paid for by Fairport Asset Management. The survey captured common challenges and concerns faced by the respondents. Additional questions were included in the survey; the actual survey, as well as complete results, are available upon request.