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When health delays or stops the sale

Michelle Fritsch of Retirement Wellness Strategies is a member of XPX Charlotte
Michelle Fritsch
Retirement Wellness Strategies
4 weeks ago

You have been working on the transaction for months.  The business has gotten healthy with great valuation increase.  Now is the time to get it across the finish line.  Then… The owner struggles with the emotions of relinquishing the business. The owner gets overwhelmed with the process and gets cold feet. The owner’s health starts to decline changing the parameters of the sale. The owner’s spouse or child has an emergency or health crisis distracting from the final steps of the sale. The owner backs out due to fear of how to stay relevant and influential without the business. In the past most of the emphasis has been on financial planning and finance-related goals.   When you have an expert on your team focused on the Wellness Portfolio alongside the owner’s financial and the business’s M&A portfolio, these delays are prevented and addressed.

Sep 10, 2024
Charlotte
Owner Life & Legacy

Retiring as a Couple: Strategies for Writing Your Next Chapter Together

Larry Gard of Hamilton-Chase Consulting is a member of XPX Chicago
Larry Gard
Done With Work Retirement Coaching and Consulting
2 months ago

There’s an old joke about a couple who were celebrating their 50th anniversary. When asked about the secret to their long marriage the husband replied, “when we got married, we made a pact that no matter what happens, we would always go out twice a week.” His wife nodded in agreement. He then added, “We never missed a week. I went out on Mondays and Wednesdays, and she went out on Tuesdays and Thursdays.” Perhaps you have your own secret to a long and happy life together, but the reality is that retiring as a couple can pose challenges, both with regard to doing the planning and to actually implementing your plan. And plan you should, for there might be a lot of togetherness ahead. Maybe you’ve spent two or three weeks on vacation with your other half in the past, but we’re talking about (potentially) decades here. The Skipton Building Society is a financial services organization in the U.K. They conducted a poll about retirement in 2013 and found that 8 in 10 retirees said they no longer shared any of their spouse or partner’s hobbies or interests, while 29 percent they didn’t have same expectations for retirement as their other half. Our early family experiences can shape those expectations. For example, imagine that your father had few hobbies or interests outside of work, and after retiring he spent most of his time at home driving your mom crazy. It’s understandable that you would be wary about the same thing happening in your relationship. The retirement transition isn’t always easy, and in some cases, it can lead to an unfortunate outcome. Divorce rates in the United States are declining — except for people over 50. Twenty years ago, just one in 10 spouses who split were age 50 or older; today, it is one in four.  Couples who have historically avoided conflict may resist talking about retirement, which delays planning and can lead to rushed decisions. And couples who have not resolved past conflicts may repeat them, disrupting the planning process. But by recognizing the typical challenges surrounding retirement, you’ll be less apt to be alarmed by them, shy away from them, or view them as sign that your relationship is in trouble. Your retirement decisions and planning will likely revolve around two broad questions: WHEN will you begin the transition, and WHAT do you want it to look like and feel like as it unfolds? WHEN will you begin the transition?  Some people launch into retirement abruptly while others adopt a gradual path, but you still need to decide whether the process starts 3 months from now or 3 years from now. Will you retire separately or together, and how does that impact your timing? I was curious about how people actually decided to retire, so I conducted interviews and compiled a dozen personal stories into a short book called Done With Work. My respondents spoke of the internal thoughts and feelings that propelled them to retire, as well as the external circumstances at play. They typically decided to retire when there was convergence between the internal and external factors. They felt psychologically ready to retire, and their external circumstances supported their doing so. WHAT do you want retirement to look like and feel like?   There are many decisions you will need to make as a couple. For example, where will you live? What are you each looking for in terms of climate, type of community, type of residence, and so forth?  How do you anticipate spending your time, and how much time will you spend together?  How have you negotiated such matters in the past?  Family As you enter this transition, you may need to consider certain family relationships. For example, as a couple you might have older adult parents to care for. They may have differing needs, and you and your partner may have a different relationship with your respective parents, a different perspective on caregiving, different sibling involvement and so forth. Perhaps you have children, stepchildren, and/or grandchildren. Here too there are numerous circumstances that could potentially require honest conversation, healthy debate, lots of good faith effort, and perhaps a negotiated compromise. Money Money is another area that couples need to consider. By this point in life you probably have a sense of where and how you diverge when it comes to spending priorities and your approach to money. But the stakes can feel much higher knowing that you may live for decades on a fixed income. Your financial advisor likely has resources to help you have productive discussions about money and can suggest ways to reach a workable compromise. For example, if you’re very cautious about money and your partner tends to spend more freely, you could agree to adopt your partner’s style when it comes to smaller expenses but employ your prudent approach when it comes to big ticket items. Communication All of the decisions you need to make will require some degree of discussion, exploration, negotiation, and the like. As with other transitions in your life together, this one requires solid communication.  Roberta Taylor and Dorian Mintzer wrote a terrific book called The Couple’s Retirement Puzzle: 10 Must-Have Conversations for Creating an Amazing New Life Together. They wisely note that just because you’ve been together a long time doesn’t necessarily mean you can read each other’s minds. One barrier to effective communication is that fear gets in the way. One or both parties may avoid discussing an issue because they’re afraid of opening a “Pandora’s Box”. Some fears are realistic and give us warning about what we ought to be paying attention to. But Taylor and Mintzer note that other fears may be “related to a lack of information or an overreaction based on past experience.” And as noted cognitive therapist Robert Leahy says, “sometimes the disagreement we envision in our head is worse than what actually occurs.”  It’s rare for couples to always be on the exact same page. Disagreements are often due to differences of opinion, differences in your approach to problem-solving, or differences in your decision-making style. Those differences can obscure the fact that in reality you may be in greater agreement than you think. Stylistic differences can also hamper communication. Recognize them for what they are, but don’t conclude that they reflect character flaws.  Your husband isn’t necessarily uncaring because he doesn’t like talking about the future.  Your wife isn’t necessarily neurotic because she likes to talk about what’s troubling her.  The conversation is less apt to derail if you can remember that the friction you’re feeling is probably more related to style than to substance. Even if you’re unable to agree on something you both want (e.g. where you want to live), can you reach agreement on things you don’t want?  It can reduce tension if you reassure your partner that you won’t push for something that they feel is unacceptable. Individual Development Although it is important to plan together, you both need to figure out your own path as well. A very common concern involves identity. Who am I if my role changes, if I’m no longer a physician, a manager, a teacher? As Taylor and Mintzer wisely point out, “if one partner is dealing with issues of identity, chances are it affects both of you.” One of my professors, the late gero-psychologist David Gutmann discovered that with age, it’s not unusual for long-dormant aspects of our personality to emerge. For example, one member of a couple might wonder, “now that I no longer have to be the hard charging businessperson, can I also embrace the nurturing side that I had previously disavowed?”  Will your relationship flexibly accommodate such a shift if it appears? Look to Your Past Retirement is a transition, and as a couple you should consider how you’ve each dealt with past transitions. Do you deal with them differently (e.g. speed through vs. tolerate the journey) and how did you manage to support one another during the process? Thinking about how you navigated those inflection points.  Did you learn anything about yourself or your other half?  Past transitions can shed light on strengths that you can then apply to this one. For couples contemplating retirement, planning your next chapter can feel complicated. The good news is that you don’t have to do it alone. Your financial advisor has helped many other people just like you sort through the head and heart side of retirement. In the unlikely event that you reach an impasse, they should also be able to refer you to counselors who specialize in assisting couples who are going through this transition.

Aug 5, 2024
Chicago
Owner Life & Legacy

A Dozen Questions to Begin the Exit Planning Discussion

Larry Gard of Hamilton-Chase Consulting is a member of XPX Chicago
Larry Gard
Done With Work Retirement Coaching and Consulting
2 months ago

As an advisor, your role is to help clients prepare to exit their business, yet many people resist thinking about the future because it involves so many unknowns, decisions, and choices.  And emotions typically complicate matters further, sometimes derailing the process altogether.  Here are some questions that can help you establish rapport with your clients, learn more about their concerns, and move the conversation forward. How are you feeling about your work/profession/business these days? Which aspects of work are you still enjoying, and which are you ready to leave behind? Do you envision retiring from work at some point, or are you contemplating an encore career? What part of planning for your future feels most challenging? How do you imagine your life in retirement will be different from how it is now? What process are you using to figure out what you’ll do next after you retire? What would you like to see happen with your business long term? What options have you considered for the transfer of your business? What steps have you taken to make your business more attractive to a potential buyer? What are your concerns about transitioning your firm to new ownership? What would be your ideal scenario for transitioning out of your company? What topic(s) have we touched on today that we should put on our agenda to revisit? So, what happens after you pose a few of these questions and your clients open up about emotional matters?  Remember, the most helpful thing you can do is to listen attentively.  You’ve created a valuable opportunity for them to talk about things they may not share with other advisors.   Here are some tips for managing the conversation when clients raise emotionally loaded topics: Don’t try to “fix things” by immediately offering suggestions. Doing so sends the message that you’re uncomfortable hearing their concern.  You can offer suggestions but do so later. Don’t say anything that conveys the message that their feeling or concern is unwarranted. “There’s really no need to feel that way” or “I’m sure it will be just fine” may sound reassuring to you but could be experienced as dismissive by your client. Don’t immediately offer a logical counterpoint to your client’s emotion. Remember, feelings don’t have to make sense; they’re “as is”.  Put another way, if feelings made sense, they would be thoughts. People report concerns and characterize their feelings differently from one another, so it’s in your best interest to seek amplification and clarification by inquiring as follows . . . “I want to make sure that I understand exactly what you mean by ___.  Can you tell me more?” “People sometimes mean slightly different things when they talk about ___.  What does ___ mean for you?” “Before I suggest anything, I’d like to learn more about it from your perspective.” It’s possible that during early conversations your client may hint at mixed feelings about exiting their business.  That’s perfectly normal, but you need to bring it out into the open.  You want to foster an atmosphere such that your client keeps you apprised about where they’re at.  If they keep their ambivalence to themselves, it has greater potential to blindside you and complicate the sale.  You can say: “In my experience, it’s normal to have some mixed emotions about selling.  Those thoughts may not always be top of mind, but when they do pop up let’s be sure to talk about them.  Believe it or not, they can help inform our process and alert us to aspects of the sale that are important to you.” You may also find that your client is overly risk averse.  If so, consider saying the following: “Our work together won’t be comprehensive if we only plan for what could go wrong.  That’s just half the equation.  It’s fine to be conservative and err on the side of caution, but to be truly realistic we should also consider a range of possibilities both good and bad.”   Author’s Note:  The concepts in this article are derived from Robert Leahy’s book, Overcoming Resistance in Cognitive Therapy.  New York:  Guilford

Jul 26, 2024
Chicago
Practice Tips

Avoiding Boredom In Retirement

Larry Gard of Hamilton-Chase Consulting is a member of XPX Chicago
Larry Gard
Done With Work Retirement Coaching and Consulting
10 months ago

One of the most common concerns I hear about retirement is the fear of being bored.  Given the weeks, months, and years ahead that need to be filled with something other than your job, it’s understandable.  To make matters worse, many of us know a relative or friend who was aimless and miserable in retirement.  In this article I’ll share some suggestions for how to occupy yourself, but before doing so let’s look at boredom from another angle. When you’ve spent decades being busy, having an afternoon with absolutely nothing to do can feel unsettling, especially if you were raised to value industriousness and productivity.  While those internal notions about hard work may have served you well during your career, they can become a source of distress during retirement.  It’s perfectly normal to have downtime once you’ve left your job, yet some people feel ill at ease during those periods.  The key is to adopt a broader definition of what constitutes a good use of your time.  Learn to welcome occasional idleness as a chance to recharge or reflect, or perhaps go one step further and embrace the Italian notion of “Dolce far Niente” which means “the sweetness of doing nothing.” When idle, people sometimes mislabel their discomfort as boredom.  Boredom is the belief that there is nothing interesting to do.  And yet unless you’re clinically depressed, there are probably lots of interesting options available to you.  One caveat: you’ve got to be open to the idea that something other than your former work can be fulfilling.  Let’s look at some possibilities . . . One strategy for finding compelling pursuits (shared by my friend G.C.) is to commit to trying something new each month, whether it’s taking an introductory class, trying a new restaurant, reading a new book, exploring a new neighborhood, or listening to a new podcast.  You don’t have to stick with anything unless it’s satisfying, but you must do something new each month.  An added benefit of this approach is that over time it’s a nice way to meet people (or reconnect with old friends you invite along).  If you’re having difficulty finding new things to do, you might want to visit

Dec 1, 2023
Chicago
Owner Life & Legacy

Six Psychological Hurdles When Planning an Exit

Larry Gard of Hamilton-Chase Consulting is a member of XPX Chicago
Larry Gard
Done With Work Retirement Coaching and Consulting
1 year ago

Just because you run a successful business doesn’t necessarily mean that you will exit from it successfully. Planning can increase the odds that you will transfer your business on terms you’re comfortable with.  Yet very few business owners engage in proactive exit planning, failing to establish arrangements for a thoughtful transfer of ownership that protects their interests and the interests of other stakeholders including employees, vendors, and valued clients.  As a psychologist who works with late career individuals, here are six obstacles I frequently see that make it harder for business owners to plan for their exit. Inertia Exiting from your business takes time and energy.  Your advisors will make things as efficient as possible, but you will still need to devote considerable resources to the process.  It’s not surprising that a busy owner would prefer to focus on running their business rather than adding another item to their agenda.  Particularly if all is well it’s easy to say, “I’ll deal with exit planning when the time comes.”  Allowing yourself and the business to coast along can be tempting, but you run the risk of not being ready when a good exit opportunity comes along.  Related to inertia is the fear of making a mistake.  Some owners worry that they will regret selling, so they opt not to prepare for their exit in any substantive way. Resistance to change  Many business owners attribute their success to sticking with a winning formula.  They’re not interested in making modifications that could make the business easier or more profitable to sell, nor are they comfortable knowing that a buyer might make big changes to their company, and thus they avoid exit planning.  Others are wary of how their lives might change once they do exit.  Will their scope of authority diminish during the buyout period?  Will others still treat them with respect?  As an owner, you need to consider how your roles might change (in your family, company, and community) once you leave work.  How will it feel to relinquish some of those roles, and what new ones might you take on? Biased thinking If human beings were 100% rational, I’d be out of business. There are lots of ways that we can be our own worst enemy and shoot ourselves in the foot.  Let me point out two very common human biases that can impact our planning for the future. Confirmation bias is our tendency to look for evidence that supports our beliefs, while discounting or ignoring evidence to the contrary.  Think about how this might trip you up if you’re exiting your business.  For example, when it comes to assessing the worth of your business, this bias might lead you to reject an objective valuation. If you’re considering appointing a successor, this bias could cloud your judgement regarding the ability of key staff or family members to take the helm. Another pothole to watch out for is the availability bias.  That’s the tendency to make judgments about the likelihood of something based on how readily and vividly examples come to mind.   Let’s imagine that in the past month, you ran into two friends who both said they were unhappy after selling their companies to private equity firms.  Do you think you would be fully objective if your advisor raised the same idea in your next meeting? Loss of identity The thought of no longer working may sound appealing, but for many people it’s extremely unsettling because so much of who they are is wrapped up in their job.  Reverend William Byron wrote, “if you are what you do, when you don’t, you aren’t.”  Our personal identity can be threatened by the loss of our work role, particularly if we have not established and developed other aspects of ourselves outside of work.  It’s analogous to diversification in financial matters.  You’re better able to handle a downturn in the market if your portfolio is diversified.  Similarly, you’ll be better positioned to deal with the loss of your work identity if you can tap into other sides of yourself.  Recognizing your identity (beyond work) may seem daunting in the abstract, but I’ve found that most people can make progress if they spend some time looking for patterns in their historical experiences and relationships. Your personal history Speaking of history, our early family experiences can shape our assumptions and expectations about exiting work.  For example, some people find it hard to envision stopping because they never had a role model of life after work; their parents worked until they got sick.  Others saw friends or relatives who fared poorly in retirement, and they worry that the same fate will befall them. I hear from business owners all the time who attribute their parent’s death to retirement. They insist that they themselves have no intention to stop working, proclaiming “they’ll have to carry me out on a stretcher.”  I admire their fortitude, but their decision to remain at work indefinitely may not be optimal for the company nor is it objective.  Ask yourself, are you playing these historical tapes internally?  If so, is it really in your best interest and that of your business? Uncertainty about the future Exit planning involves grappling with unknowns, decisions, and choices.  What is the best option for transferring ownership?  What will happen to your company when you’re no longer there?  What will your life be like after the sale?  How will you structure your time?  These are huge questions, and without a crystal ball the uncertainties can feel overwhelming.  Your advisors can be of great help, but don’t overlook the lessons you’ve learned from past transitions.  Think about past inflection points in your life when you faced major uncertainty.  How did you handle those situations?  Did you learn something about making decisions in the face of the unknown?  Can you apply that wisdom to your current circumstances? Eventually you will exit If you’re a business owner, in the future you won’t be.  It’s just that simple.  There is no escaping the reality that eventually you will exit from your business.  If you wait to plan until it feels perfectly right, you might be waiting a long time.  Don’t expect that this process will be without some misgivings, ambivalence, and uncertainty.  Don’t allow yourself to be paralyzed by those psychological obstacles, and don’t feel as if you can’t talk about them.  A trusted exit advisor can guide and support you as you navigate the emotional side of leaving your business. Larry Gard, Ph.D. is a psychologist and author of the book “Done with Work: A dozen perspectives on the decision to retire”.  He provides pre-retirement coaching to late career professionals and business owners.  For more information, please visit

Sep 1, 2023
Chicago
Owner Life & Legacy

Buyer and Seller Goals eventually must align when selling a business – but it may not start out that way

Paul Cronin of True North Advisors Group, LLC is a member of XPX Greater Boston
Paul Cronin
True North Advisors Group, LLC
1 year ago

It seems intuitive: a deal requires compromise. Sellers and buyers each have their own goals (some more realistic than others) and should come together, but each often begins the process oblivious to the other’s needs. Suppose you’ve owned an auto service station for 30 years. You are tired of all the hassles and have made a lot of money over that time, plus you are in the typical “retirement age” of your 60’s. You also own the real estate and think you should keep it for “retirement income”. A reasonable goal on its own. After going to market with your friendly M&A advisor, you find the perfect buyer – “young blood”, an excellent mechanic who ran a competitor’s shop for 5 years. Perfect situation, right? Then the buyer looks at bank financing and sees that the cash flow of the business is enough to buy the business, but at current interest rates (11% in 2023), not at the price you want. He asks for some heavy seller financing and you balk. The buyer’s banker says ‘hey, if you buy the real estate, I can package it with the acquisition loan and stretch the term to 30 years” – which makes the cash flow sufficient to cover the loan and a lot closer to the price you want. ‘But what about my rental income?’ you ask. Reasonable question, but your goal of keeping the real estate is in conflict with your goal of avoiding heavy seller financing. Goal vs. goal, as it were. The buyer is thinking that you are greedy, not listening to his needs and begins to withdraw. But your business is near where he lives, bigger than his current job and will help him achieve his goal of financial independence. He is not listening to your goal of retirement income, but risks losing his big life goal. As the seller, if you sell the real estate you are giving up the future rental income, while gaining significant immediate capital from the sale. You are also reducing risk of the buyer not paying back all the seller financing (in truth, many deals require some seller financing). Of course, you will face higher capital gains taxes, the larger the transaction. The buyer’s CPA asks to speak with your CPA and they come up with some ideas that will mitigate your risk and still provide you with retirement income. (I’m saving some ideas on that for another post). Bottom line: talking to trusted advisors, can help you assess your goals/needs versus the buyers goals/needs to arrive at a win-win deal. Cue the champagne!

Aug 15, 2023
Greater Boston
Business Value Transfer

Curious about how pre-retirement coaching can help you?

Larry Gard of Hamilton-Chase Consulting is a member of XPX Chicago
Larry Gard
Done With Work Retirement Coaching and Consulting
1 year ago

Pre-retirement coaching is designed to help late career professionals and business owners sort through the head and heart side of the retirement transition.  For those who have never availed themselves of coaching, the process might seem like a black box.  How does coaching help a person get from point A to point B?  This chart presents one example of how coaching addressed a client’s key objectives . . .

Jun 28, 2023
Chicago
Owner Life & Legacy

Accomplishment and Pride vs. Unfinished Business

Larry Gard of Hamilton-Chase Consulting is a member of XPX Chicago
Larry Gard
Done With Work Retirement Coaching and Consulting
1 year ago

For many of us, work is a primary source of accomplishment and pride.  Throughout the course of our career, we point to projects completed, problems solved, and people helped.  If you’re contemplating retirement, it’s easy to imagine you will find yourself missing the satisfaction that comes from a job well done, not to mention dwelling on the things left undone. Unfinished business and unmet goals can make it hard to stop working.  Our inclination to focus on what we didn’t accomplish reflects a psychological phenomenon called the Zeigarnik effect.  It’s the tendency to remember interrupted or incomplete tasks more easily than those that have been completed.  This phenomenon was first noticed in the early 1900’s and has been reproduced in a number of studies.  The point here is, just because we more easily remember what is unfinished doesn’t mean those things should unduly influence our decision about stopping work.  There is no guarantee that if you stay on longer or put more pieces in place, what was unfinished will finally be achieved. You should also prepare yourself for the possibility that once you leave, your place of business will change.  The processes and priorities you established may be altered, no matter how much you carved them in stone.  The goals you sought may be set aside by others.  How will you react if you learn that your successors changed (or eliminated) projects that were important to you?  After you exit, will new employees even learn of your history with the firm?  Nobody wants to be forgotten, but keep in mind that regardless of your legacy your departure will create an opportunity for others at the organization to step up, make their own contributions, and take pride in their own achievements.   Other points to consider Some people remain in their job or business long after they should because work is their primary source of accomplishment and pride.  They continue to work, by default and sometimes against their own interests, because they haven’t explored other ways of making noteworthy, meaningful contributions.  They might be well served if they could broaden their definition of what constitutes an accomplishment.  Allow me to offer an automotive analogy.  Driving is not just about reaching a destination or how fast you get there.  It also involves your ability to read traffic, avoid hazards, and treat other motorists with courtesy.  Accomplishments in your career are more than just goals met.  They can also be the skills you’ve mastered, the people you’ve mentored, and the mistakes you’ve learned from.  Perhaps you’ve accomplished more than you realize!

Nov 11, 2022
Chicago
Owner Life & Legacy

Five things you tell yourself . . . that prevent you from properly preparing for retirement

Larry Gard of Hamilton-Chase Consulting is a member of XPX Chicago
Larry Gard
Done With Work Retirement Coaching and Consulting
2 years ago

There is something I’ve noticed when people tell me about their first year of retirement.  Occasionally they will mention adjusting to living on a fixed income, but more often it’s the non-financial side of things that occupies their mind. In some instances they sound pleased. For example, they’re eager to talk about new hobbies, interests, or educational pursuits. In other cases, they’re more negative. They’re feeling unsettled in a new home, unmoored without their former routine, or unhappy with how they’re spending their days. The financial services industry has done much to educate Americans about saving for retirement.  Sound fiscal preparation is essential, but we also need to prepare ourselves for the head and heart side of this transition.  Preparing ourselves psychologically is challenging, in part because unlike financial planning, there is very little “hard” data.  Instead, we’re asked to consider subjective factors like beliefs, emotions, values, and the like. There are many things we tell ourselves that prevent us from doing this important psychological work.  Here are five things I hear quite often: I’ll figure it out when the time comes. You’ve never had a hard time deciding what to do on weekends and vacations, and you have a long list of interests you intend to explore once your time is your own. It’s great that you’re able to occupy yourself, but we’re not talking about two days or two weeks here.  Depending on your health your retirement may be measured in decades; you need to plan accordingly.  Similarly, the list of interests you hope to explore could be insufficient if it’s not fully thought through.  For example, becoming fluent in Spanish might be something that you always wanted to do and it might help keep your mind sharp, but are you really willing to put in the effort?  Playing golf several times per week may sound appealing and for some people it’s quite satisfying, but others find after a while that it falls short, failing to fuel their sense of purpose. I’ll become a part time consultant, so I don’t need to think about retirement. People over 50 are more entrepreneurial than is commonly believed.  Rather than retiring, many opt to start a consulting business based on their decades of experience.  On paper it certainly makes sense. They still have industry contacts, their knowledge is encyclopedic, and they’re keen to continue working.  I’ve met lots of people who successfully made this transition late in their career, but I’ve met just as many who struggled. Most of them were talented, decent, and hard-working, but they vastly underestimated the headwinds they would face striking out on their own. True, they had industry contacts, but many no longer wielded the influence they once did.  They counted on known referral sources, but age bias led some of those sources to look elsewhere. They were experts in their field, but it didn’t guarantee that prospective clients would beat a path to their door.  I’m not suggesting that consulting isn’t an option, but it requires an extremely clear-eyed assessment of your strengths, limitations, and the marketplace. I love my work and have no intention of stopping. Good for you, but I respectfully suggest that life has a way of throwing us curveballs as well as unexpected opportunities, so you might want to have a Plan-B.  What if you receive an unsolicited yet compelling offer for your business?  What if the firm you work for is purchased by a competitor that wants to clean house?  What if your health suddenly declines?  The point is, even if you want to keep working you may change your mind or life might change it for you.  Giving some serious thought to how you could enjoy life beyond work can provide you with greater flexibility and help you adapt if your next chapter is different than what you thought it would be. My father retired and within a year he got sick. There is no doubt that our family history can significantly influence the decisions that we make.  Many of my clients have shared how a relative’s experience with retirement affected their own beliefs and feelings about leaving work. Watching a parent or grandparent suffer in retirement can have a profound and lasting impact. That can’t be denied, but it’s important to remember that this doesn’t have to be your mother’s or grandfather’s retirement.  With some thoughtful planning you may have far more options than they did and more time to enjoy them. None of my friends who retired gave it much thought and they seem to be doing just fine. It’s possible that some of your friends moved smoothly into retirement without preparing for it psychologically, but your assertion could be mistaken.  First of all, getting oneself emotionally ready for this transition is typically a private process, so it’s unlikely you can ever really know exactly how much thought your friends put into it.  Secondly, your sense that they are doing fine may be clouded, either by their effort to portray themselves in a good light and/or your desire to see them that way. We tell ourselves these things not just because we believe them, but because they help us avoid the hard work of emotionally preparing ourselves for what could be the biggest transition in our life.  If you want to avoid feeling bored, aimless, unproductive, or dissatisfied, your retirement planning needs to include psychological preparation.

Sep 16, 2022
Chicago
Owner Life & Legacy

How to Quit Being a Landlord & Retire

Stephen Davis of Safe Harbor Asset Management is a member of XPX Tri-State
Stephen K Davis
Safe Harbor Asset Management
2 years ago

Great news! Your CPA has informed you, “you will make a lot of money through your real estate portfolio…the bad news, you will have to cut a fat check to the IRS; you’re getting killed on Capital Gains Taxes and Depreciation Recapture.” Sure, you’re familiar with the 1031 Exchange Tax Code. You are at the point in your life where you just want to unload your real estate and get out of the business of “Tenants, Toilet’s, and Trash.” Your really do not want to buy other real estate that will have to be managed in order to satisfy the 1031 Exchange requirements. You do not want to repeat the cycle for the sake of avoiding the tax bill. So, what are you to do? The Delaware Statutory Trust (DST) may be the golden ticket that you are looking for. It permits fractional ownership where multiple investors can share ownership in a single property or a portfolio of properties, which qualifies as replacement property as part of an investor’s 1031 Exchange transaction. Key Benefits: No management responsibilities Access to Institutional-Quality property Limited personal liability Lower minimum investments Diversification Estate Planning Insurance policy Eliminate Boot Swap until you drop You can have access to a fully vetted, investment-grade real estate alternative. As a Registered Investment Advisor, not a Broker-Dealer, our process makes for a simple and straightforward 1031 Exchange as well as a less costly one. Now take the trip, make those plans, and do the things you’ve wanted to do. To calculate your property’s replacement value and to view available Investment Grade Properties, visit our site www.investsafeharbor.com   *Must be an accredited investor. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Safe Harbor Asset Management, Inc. unless a client service agreement is in place.  

Mar 17, 2022
Tri-State
Owner Life & Legacy

Gifting to Help Adult Children with Retirement Planning

Diane DeCesare of Armanino LLP is a member of XPX Philadelphia
Diane DeCesare
Armanino LLP
2 years ago

It’s the start of a new year, and the perfect time to plan ahead for this year’s gifts. Annual gifts are not only a great way to benefit your children or grandchildren, but also an opportunity to teach them smart financial management. When we last wrote about this topic five years ago, we discussed teaching this to teenagers. Many of those teenagers are now young adults just starting their careers and may have access to retirement plans provided by their employers. This opens additional ways that annual gifts or cash gifts can be used to help them to maximize their retirement plan benefits early in their careers. Click

Feb 17, 2022
Philadelphia
Business Value Growth

Market Outlook: Pricing power

Michelle Jackson of Capital Group is a member of XPX Atlanta
Michelle Jackson
Capital Group
2 years ago

After a powerful advance last year, the stock market has started 2022 on a down note. Between elevated inflation, heightened volatility and the Federal Reserve’s more hawkish stance, where could markets go from here? If we can’t expect another 20%-plus gain, what can we look forward to? And what kinds of businesses have the right set of traits to help them prosper in today’s environment?   Please join me for a strategic discussion covering the markets and some of Capital Group Private Client Services’ perspectives for long-term investors. Click the link below to learn more and register.

Feb 9, 2022
Atlanta
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Why Your Exit Planning Process Needs a Fractional CFO

Michael Stier of FocusCFO is a member of XPX Charlotte
Michael Stier
FocusCFO
23 hours ago

What is your goal for your business? As fractional CFOs, when we first meet with our clients, this is among the first questions we ask. Your goals will inform much of our work supporting your company – whether we focus on preparing you for a near-future exit or growing and building the value of your business over time. This is what makes our fractional CFOs – many of whom are also CEPAs – a vital (and often missing) piece of the exit planning puzzle. Many business owners enlist exit planning experts as they approach the exit process, bringing in an army of resources to make the most out of what has already been built. A fractional CFO, however, becomes embedded in your business over time and, in the process, comes to serve as a value growth advisor – a financial expert who can help you 

Oct 7, 2024
Charlotte
Business Value Growth

Tax Advantages of ROBS Rollovers for Business Funding

Greg Silberman of Ritterband tax & Accounting Solutions LLC is a member of XPX Atlanta
Greg Silberman
Ritterband Tax & Accounting Solutions LLC
2 weeks ago

ROBS – or use funds from their existing personal 401(k) or other retirement accounts as capital for buying a business.   In addition to creating cash flow and minimizing the use of debt, ROBS are an attractive source of funds unlocking value from an individual’s retirement savings to fund a business, what are the tax advantages that make considering a ROBS strategy worthwhile?  First, there is the aspect of tax deferral. Financing through ROBS avoids the early withdrawal penalty normally incurred when funds are withdrawn from retirement savings prior to retirement. When you use the capital from your 401(k) to fund a new income taxes or penalties, more money is available to go into the business, thus maximizing your available capital.  In addition to increasing capital efficiency, you avoid loan obligations because ROBS is not a debt product. It’s simply accessing the equity you already have built up in your retirement plan, so there’s no monthly repayments or interest like you would incur with a loan.  Accessing Business Capital Through ROBS  Here are some points to remember about how the flow of money works when using a ROBS strategy:  The new business entity to be funded must specifically be established as a C-Corp.  After a new 401(k) or profit-sharing plan is the business advisory space and how to implement a ROBS strategy. For a consultation on your business plans and objectives, please contact us at 770.740.0797 or email info2@SJGorowitz.com. 

Sep 19, 2024
Atlanta
Business Value Growth

Mastering the Art of the Strategic “NO” for Business Growth

Maria Forbes of FIREPOWER Business Catalyst, LLC. is a member of XPX Atlanta
Maria C Forbes
FIREPOWER Business Catalyst, LLC.
2 weeks ago

As a small business owner, your instinct might tell you to seize every opportunity that knocks on your door. Let’s face it: saying yes can be a thrilling ride into new ventures. Sometimes, you need to remind yourself of your organizational Sweet Spot.  Does your team have the bandwidth, the people power, and the infrastructure to take it on? Sometimes, saying no is not just the better option; it’s a powerhouse move that aligns your business with your growth goal. Here’s the lowdown on when, how, and why flexing your “no” muscle is your smartest play. The Unmanageable Yes When you’re overcommitted and under-resourced, every additional yes is like adding more weight to an already overstretched team. If saying yes means sacrificing the quality of your work, spreading your resources thin, or burning out your team, then it’s time for a firm, resolute “no.” Remember, quality over quantity isn’t just a great saying – it’s the golden rule for sustainable growth. The Misaligned Opportunity Some opportunities seem golden on the surface, but they won’t help you achieve your business mission, vision, or values. Listen up: Your business is your compass; every decision should steer you to your true north. If it doesn’t fit, say no. It’s not just about avoiding the wrong turn; it’s about staying true to your course and your team’s potential. The Power of Prioritization Here’s a reality check—you can’t do it all. When you say no to less important things, you say yes to more focus, energy, and time for what truly matters. Embrace the art of prioritization because knowing what to decline is as vital as knowing what to pursue. Make your yes count! Cultivating Respect Saying no isn’t just about protecting your time and energy; it’s about setting boundaries. Assertiveness isn’t rude; it’s a sign of respect – for yourself, your team, and your business’s vision. When you respect your limits, others will follow suit. It signals to the world that your time, team, and resources are valuable. Conclusion Saying no is a tough decision. It’s not a negative judgment; it’s a selective choice. Think of the word no as a complete sentence and a powerful tool to guide your business to where it truly belongs. So, the next time you’re faced with a request that doesn’t feel right, plant your feet, take a deep breath, and remember that saying no is not just okay—it’s essential for your business’s health and ongoing success.   Do you need to get in your Owner Sweet Spot?

Sep 18, 2024
Atlanta
Business Value Growth

The GAAP Traps

John Dini of The Exit Planning Coach is a member of XPX San Antonio
John F Dini
The Exit Planning Coach
3 weeks ago

GAAP traps often occur when a business owner sells a company to a third party. The transaction is commonly memorialized by a Purchase Agreement. That agreement contains certain representations (or “reps”) and warranties. Some of these are common sense and should pose no problem to someone who has operated a good business. The Accounts Receivable represent money that is actually owed to the company. Taxes have been filed on a timely basis. The seller doesn’t know of any pending litigation. The owner has the right and authority to enter into a sale agreement. There is one, however, that is frequently required by attorneys who don’t understand privately held business, and agreed to by owners and their attorneys who don’t understand what they are guaranteeing. They are Generally Accepted Accounting Principles, or GAAP. What is GAAP? To start, the term “Generally Accepted” is misleading. It could easily be interpreted as “what everyone typically does.” Nothing could be further from the truth. GAAP is determined by two organizations, the Financial Accounting Standards Board (FASB) and the Securities and Exchange Commission (SEC). Per I

Sep 17, 2024
San Antonio
Business Value Growth
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