This article are provided for information purposes only, and are not intended as legal advice.

Do I plan my retirement before or after selling my business?

December 6th, 2008

If you are selling a small business, you may not have a lot of cash in your bank account.  Have you ever noticed that financial planners will say that you do not have enough assets to be qualified for them to represent you? If you are planning to retire, should you work with a financial planner who will work with you prior to selling your business.  Many advisers are reactive, when you get the money call me.  The market is changing, everyone is looking for new clients.  Find someone to assist you to plan what to do with your money after you sell the business.  Do you have enough to retire on or do you have to watch what you are doing with your capital?

Are all financial planners the same?  Definitely not.  Many financial planners say that they are looking out in your best interest but are they?  Do they recommend products which generate the highest commission for themselves or are they listening to your request, your risk tolerance.  Interview several financial planners before deciding on which one to use.  I have also seen some sellers split the investment capital from the sale of a business and let two people invest the money for a year.  At the end of the year, they looked at the financial planner who generated the most money and then transferred the rest of the portfolio to them.

You can also ask friends and advisors for recommendations of financial planners who they have used and are happy with.  Remember, a financial planner may make more money for one client than for you – why?  Your investment strategy may be different.  You may have a very conservative strategy and your friend may have a very aggressive strategy.  You cannot compare the success of a financial planner based on the highest returns, you also have to look at their mandate.  Conservative portfolios will tend to minimize risk and look for investments yielding income vs an aggressive porfolios which are looking for capital appreciation.

Filed under: Financial planning — Gary Landa @ 12:01 pm

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