Knowledge Exchange

Retirement

Search

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 months 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.

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
5 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.

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
5 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

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
1 year 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

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 former psychologist who now provides pre-retirement coaching, 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 retired 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

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

Paul Cronin of Touchstone Advisors is a member of XPX Greater Boston
Paul Cronin
Touchstone Advisors
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!

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 . . .

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
2 years 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!

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.

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.  

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

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.

Popular

What's Trending

Explore more

New Years Resolutions: Why They Miss the Mark, and What to Do Instead

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

Entrepreneurial business owners, is it time to consider a new approach to setting goals in the New Year? We’ve all been there. January 1 rolls around, and we set resolutions with the best intentions. “This will be the year I double my business,” we say. An article in Forbes 1 states by mid-February, 80% of people have made their resolutions a distant memory. Why? Because we have high ambitions hinging on mostly unrealistic and unsustainable methods, setting broad, lofty goals without a roadmap is like trying to sail a ship without a compass—directionless and daunting. There is a simple fix for this problem.  Start the road map with some pre-work. The root issue? New Year’s goals should always start with who you are, how you want to serve, and what you want to enjoy. If you start a New Year’s Resolution with what is trending in the world, in business, or in society, you will leave some or all your resolutions behind as you realize there is a misalignment between who you are and what is trending. It’s all one path! As business owners, we are bombarded with tasks that can be exhausting and lack enjoyment. Goals should be derived from envisioning a picture of your personal world: God, business, family, your unique personal desire to share creatively, and the core of who you are, so your business and your world are synced within a set of goals. What should your world look like in the New Year? Don’t compartmentalize! Your business cannot be separated from all the rest; successful business owners know who they are and how they intend to serve.  Get reacquainted with who you are, your personal talents to serve (clients, friends, family), and how you can get back to enjoying your life. Now we can talk about Business Resolutions You know what you want to achieve for your business. Now, make it a team effort. Go beyond your own efforts to engage your team in goals that are well aligned with their strengths and do it in a doable fashion that engages the spirit of growth together. The Problem with Most Resolutions Resolutions lack specificity, accountability, and, most importantly, our teams’ collective firepower. Transformative change doesn’t come from wishful thinking but from actionable, measurable steps involving everyone on deck. So, what’s the game plan? Shift from solo resolutions to team-powered actions. Set Specific Goals: Break down that big vision into smaller, achievable milestones. “Increase sales by 10% in Q1” beats “Double my business” for clear targets. Harness Team Strengths: Every member has unique skills. Use them to your advantage by assigning roles that match their strengths and watch motivation soar. Perform Regular Check-Ins: Make accountability a team effort. Frequent updates keep everyone on the same page and moving forward together. Celebrate Wins: Whether you hit a small target or make significant progress, celebrate as a team. This will help you feel more united and keep the momentum going. Making Sustainable Resolutions Remember, a sustainable resolution starts with the core of who you are as an owner, how you want to serve, and what is enjoyable to you.  Once you know what you want to achieve for your business your team can help you get there. With some pre-work, a New Year resolution might spark the fire, and then your team’s day-to-day actions will keep it blazing.

Quantum Computing Investments: Key Players, Risks, and Opportunities for 2025

Billy Amberg of Bloomwood is a member of XPX Atlanta
Billy Amberg
Bloomwood
4 days ago

Listen to this post as a podcast: www.adviserinfo.sec.gov). Please read the disclosure statement carefully before you engage our firm for advisory services. The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.   The views expressed in this commentary are subject to change based on the market and other conditions. These documents may contain certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.    All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed.  There is no representation or warranty as to the current accuracy, reliability, or completeness of, nor liability for, decisions based on such information and it should not be relied on as such. Bloomwood is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Bloomwood and its representatives are properly licensed or exempt from licensure. 730 Starlight Lane, Atlanta, GA 30342.

What to Expect in 2025: Changes to the Three Branches of Government

Robert Brody of Brody and Associates, LLC is a member of XPX Tri-State
Robert G. Brody
Brody and Associates, LLC
1 week ago

As we enter 2025, businesses face a rapidly evolving employment law landscape shaped by dynamic shifts across all three branches of government. With a new president set to take office, significant developments at the Supreme Court, and the Republicans securing control of Congress, 2025 is shaping up to be a year defined by upheaval. Each branch of government will be different than any of us have seen in decades. The Executive Branch First and foremost, Donald Trump’s second presidential term is set to begin on January 20. Over the last four years, the Biden administration, known for their pro-employee policies, ushered in a wave of regulations aimed at expanding worker protections. Conversely, the Trump administration is expected to continue their pro-employer, laissez-faire approach that prioritized deregulation and employer flexibility during his first term. (Interestingly, the Trump Administration has started supporting more union issues and no one knows how that will impact his second term.) Significantly, labor and employment law developments often arise from action on behalf of various agencies such as the National Labor Relations Board (“NLRB”) and the Department of Labor (“DOL”). Because these agencies are part of the Executive branch, the president is effectively charged with overseeing them, and therefore plays a significant role in the implementation of their policies. Employers should expect Trump to utilize these agencies to implement his pro-business agenda. It is worth noting, however, that a 2024 Supreme Court decision (Loper Bright Enterprises v. Raimondo) overturned the long-standing Chevron doctrine, a legal principle that directed courts to defer to federal agency’s interpretations of law that agency is empowered to enforce. As a result of this decision, the Executive branch was effectively weakened, shifting greater interpretative authority to the Judicial branch. It will be interesting to see how much impact this change will have on the balance of power among our branches of government. The Judicial Branch Loper was not the only Supreme Court decision in 2024 that contributed to the shift in power in favor of the Judicial branch. The Supreme Court’s decision in Dobbs v. Jackson Women’s Health Organization, overturned the landmark abortion decision Roe v. Wade. Historically, courts, including the Supreme Court, follow precedent created by earlier decisions. But now the Supreme Court showed its willingness to overturn longstanding precedent based on a difference in their opinion of what is right or wrong. This shift away from strict adherence to precedent allows the Supreme Court greater latitude to reinterpret past decisions. With more flexibility to pursue a wider range of cases, as well as greater interpretive authority, the Judicial branch is shaping up to be much more powerful than it has been in the past. The Legislative Branch Lastly, in the 2024 election, the Republicans secured a majority in both the House of Representatives and the Senate. This means that the Legislative branch will have broad authority to enact their agenda over the next two years. Additionally, with Donald Trump in the White House, the likelihood of presidential vetoes decreases significantly.  This alignment will increase the likelihood that Congress will pass more new laws than is typically seen under a divided legislature. As a result, employers should closely monitor what new laws Congress enacts. Employer Takeaways Overall, the three branches of government are all undergoing significant changes. Donald Trump is likely to resume his pro-employer agenda, albeit with a slightly weakened Executive branch in the wake of the Loper decision. The Judicial branch is as powerful as ever, exemplified by the Supreme Court’s willingness to overturn longstanding precedent. Lastly, with Republicans in control of both the Senate and the House, the Legislative branch is primed for significant activity through 2026. With all these changes taking place, it is crucial for businesses to keep abreast of developments in labor and employment laws to ensure compliance and minimize legal risk in the new year. Brody and Associates regularly advises management on complying with the latest local, state, and federal employment laws. If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560.

Developing Leadership Depth for Business Exit Readiness

Marci Caudle of Tagro Solutions is a member of XPX Philadelphia
Marci Caudle
Tagro Solutions
2 weeks ago

A robust leadership pipeline is crucial for any business, but it becomes particularly vital when preparing for a business exit. Whether you’re planning a sale, merger, or leadership transition, ensuring that your leadership depth is strong can significantly enhance the attractiveness and value of your business. This HR Insight explores how strategic human resources management can cultivate leadership depth to support a smooth business transition. The Importance of Leadership Depth in Exit Planning Leadership depth refers to a company’s ability to fill key leadership roles from within, ensuring business continuity and operational stability. For businesses considering an exit, strong leadership depth reassures potential buyers and investors of the company’s resilience and future performance potential. A well-prepared leadership team can effectively manage transitions, uphold company values, and drive growth, even during periods of change. Strategies for Developing Leadership Depth Leadership Development Programs: Implement comprehensive leadership development programs tailored to your company’s needs. These programs should focus on nurturing high-potential employees with critical skills such as strategic thinking, decision-making, and change management. Methods might include formal training sessions, mentorship programs, and leadership retreats that emphasize real-world business challenges and leadership responsibilities. Succession Planning: Effective succession planning is essential for ensuring that key positions can be filled quickly and competently. HR should work with current leaders to identify potential successors for each critical role. This process includes assessing the skills and readiness of potential leaders and providing targeted development opportunities to prepare them for future roles. Talent Identification and Management: Use talent management tools and assessments to identify employees who have the potential to become future leaders. Once identified, provide these individuals with customized development plans that align with their career aspirations and the company’s strategic goals. This approach not only prepares them for leadership roles but also helps retain top talent by actively investing in their career growth. Performance Management: Align performance management systems to leadership development goals. Regular performance reviews and feedback sessions help potential leaders understand their strengths and areas for improvement, ensuring they are on the right track to taking on more significant roles within the company. Cultivating a Leadership Culture: Foster a culture that promotes leadership from every level of the organization. Encourage employees to take initiative, lead projects, or mentor others. This environment supports leadership development organically and can identify and elevate hidden talents within the organization. The Impact of Leadership Depth on Business Valuation A strong leadership team can significantly enhance a company’s valuation during an exit. It demonstrates to potential buyers and investors that the company is well-managed, has a clear direction, and is capable of sustaining growth without the original owner or current leadership team. Additionally, companies with effective leadership transitions are more likely to maintain performance levels during and after the exit process, reducing risks associated with the transition. Developing leadership depth is not just about filling positions but about creating a sustainable framework that supports the company’s long-term goals and ensures a legacy of success. As businesses prepare for exit, the role of HR in cultivating this environment becomes a cornerstone of strategic exit planning. By investing in leadership development, companies not only enhance their marketability and potential sale value but also secure a stable and prosperous future for all stakeholders. At Tagro Solutions, we bring our deep expertise in Human Resources consulting to the table, aligning HR strategies with business objectives to enhance company performance and prepare for successful transitions. Our approach integrates seamlessly with the philosophy of the Exit Planning Exchange, which fosters collaborative exchanges of information and experiences among its members. Together, we aim to empower business owners through strategic insights and actionable solutions, making the journey from business operation to exit as profitable and smooth as possible.

New York City Mayor Signs Legislation Regulating Hotel Safety: What Employers Need to Know

Robert Brody of Brody and Associates, LLC is a member of XPX Tri-State
Robert G. Brody
Brody and Associates, LLC
1 month ago

On November 4, 2024, NYC Mayor Eric Adams signed into law the Safe Hotels Act (Int. No. 991-C) aiming to promote hotel safety and boost tourism. The Act, taking effect May 3, 2025, requires hotel licenses, restructuring of employment agreements, and a number of new staffing requirements. Hotel License Requirements Hotel operators defined as persons who own, lease, or manage a hotel, and control day-to-day operations, must obtain a hotel license from the Department of Consumer and Worker Protection (DWCP) to legally operate a hotel. Hotel operators must file an application with the Commissioner of the DWCP to obtain a license. The application must contain contact information as well as details of safeguards and procedures which show the hotel is in compliance with the Act’s staffing, safety, employment, and cleanliness requirements. The application will differ if the operator has a collective bargaining agreement (CBA) with a union. If the operator has a CBA which contains the required information and references the CBA in their application this may satisfy the Acts notification rules. The notification requirement will be satisfied for the term of the CBA or 10 years from the date of the application (whichever is longer). The commissioner must be notified if there are changes to the CBA which remove references to the Act’s requirements. The hotel license may be denied or revoked if operators fail to comply with the Act, however there are a number of notice requirements for the Commissioner prior to revoking a license. The Commissioner must notify the licensee of a potential revocation in writing. The licensee must be given 30 days from the notification to remedy the violation and this notice must be in writing. A license will not be revoked if it can be demonstrated that the condition has been resolved in the 30-day period. Evidence of this correction can be delivered electronically or in person. Upon the Commissioner’s decision, the licensee has 15 days to request a review of the decision. A license will not be revoked in the following situations: service disruptions such as construction work noise; conditions that the hotel is aware of and treats within 24 hours such as bed bugs, rodents, etc.; unavailability of hotel amenities for a period of 48 hours; unavailability of utilities for a period of 24 hours; and importantly any strike, picketing, lockout, or demonstration at or by the hotel. Hotel operators must display their license in a public area.   Employment Agreement Requirements The Act requires hotel owners, with 100 or more guest rooms, “directly employ” all “core employees”, except a single hotel operator to manage operations on the owner’s behalf. This rule effectively eliminates intermediaries such as staffing agencies or management companies. Core employees include those whose work relates to housekeeping, front desk, or front service. Valets, maintenance workers, parking security, and employees mostly working with food and beverages are not considered core employees. This provision greatly impacts employers who utilize subcontractors; however some contracting agreements may be grandfathered in if they are entered into prior to the effective date and have a specific termination date. Violating this provision may serve as the basis of license revocation. Staffing Requirements In order to maintain safe conditions for guests and hotel workers, the Act implements a number of new staffing requirements. One employee must provide front desk coverage at all times (during night shifts a security guard who has received human trafficking training may take this employee’s place). Hotels with more than 400 guest rooms must have a minimum of one security guard providing continuous coverage while any room is occupied. Hotels must maintain cleanliness and not impose fees for daily room cleaning. Core employes must receive training on how to identify human trafficking within 60 days of employment. Hotels must not accept reservations for less than 4 hours. Penalties and What Else Employers Need to Know Hotel operators are strictly prohibited from retaliating against any employee who discloses a potential violation or assists in an investigation. Hotel operators are also prohibited from retaliating against employees who refuse to partake in a dangerous activity that is not part of their job. As previously discussed, noncompliance can result in a hotel operator’s license being revoked, but that is not all. Anyone alleging a violation can seek a civil action within 6 months of the alleged violation. Furthermore, the Act provides for civil penalties which vary based on the number of violations: $500 for a first violation, $1,000 for a second, $2,500 for a third, and $5,000 for subsequent violations. The Commissioner is expected to issue rules by which this law will be enforced. A timetable for their issuance has yet to be set. Brody and Associates regularly advises management on complying with the latest local, state and federal employment laws.  If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560  

Navigating Business Exits: An HR Roadmap

Marci Caudle of Tagro Solutions is a member of XPX Philadelphia
Marci Caudle
Tagro Solutions
1 month ago

The Role of Culture in M&A Success: Navigating Integration with HR Insights In the dynamic world of business, effective exit planning is crucial for ensuring a smooth transition and securing the legacy of a business owner’s life’s work. Mergers and acquisitions (M&A) are more than just financial transactions; they are a fusion of values, people, and aspirations. Amid the complexities of these business maneuvers, the significance of company culture cannot be overstated. It is the glue that holds an organization together and can be a make-or-break factor in the success of M&A activities. This post explores the pivotal role of company culture in M&A success and how HR can drive positive outcomes through strategic cultural integration. The Importance of Cultural Compatibility: Cultural compatibility is crucial in M&A scenarios. When two companies merge, they bring together distinct cultural identities, which can either harmonize to drive the company forward or clash and impede integration efforts. A study by Deloitte found that nearly 30% of M&A failures could be directly linked to cultural issues, illustrating the need for a deliberate focus on cultural alignment during the merger process. HR’s Role in Cultural Assessment: Human Resources departments play a strategic role in assessing cultural fit before a merger is finalized. HR professionals can conduct cultural audits to identify the values, beliefs, and behaviors that define each organization. This assessment helps predict potential areas of conflict and synergy, enabling informed decision-making during the merger or acquisition. Strategies for Cultural Integration: 1. Identifying Core Cultural Elements: Before any integration can begin, HR needs to identify the core cultural elements of each company. This involves understanding not only the explicit elements like company values, mission statements, and codes of conduct, but also the implicit elements such as communication styles, decision-making processes, and the level of formality or informality prevalent in the workplace. 2. Evaluating Compatibility and Areas of Divergence: With a clear understanding of each culture, HR should evaluate which aspects are compatible and which are divergent. This step is crucial because it highlights potential areas of conflict that could disrupt integration efforts. 3. Designing the Blended Culture: Once key elements have been identified and evaluated, HR can begin designing a blended culture. This doesn’t mean creating a culture that is merely a mix of pre-existing ones; rather, it involves selecting the best aspects of both cultures based on how well they align with the merged company’s new strategic goals. 4. Developing Transition Plans: With a design in place, HR should develop detailed transition plans to implement the blended culture. This includes setting up cultural integration teams, conducting training sessions to introduce and reinforce the new cultural norms, and using change management techniques to help employees adjust to the new environment. 5. Monitoring and Adjusting: Cultural integration is not a one-off event but a continuous process. HR should monitor the implementation of the blended culture using predefined metrics such as employee satisfaction scores, retention rates, and feedback from leadership. 6. Celebrating Cultural Milestones: To reinforce the new culture, celebrate milestones that reflect cultural integration. This could be through company-wide events, recognition programs, or internal communications that highlight success stories and examples of the new culture in action. 7. Communicate Transparently and Frequently: Regular, clear communication from HR and top management about the integration process can alleviate employee anxieties and build trust. This involves not just sharing what is happening and why, but also how employees can contribute to the integration efforts. Measuring Success and Adjusting Strategies: Post-M&A, it’s important for HR to measure the success of cultural integration efforts through employee feedback, surveys, and other metrics like turnover rates and engagement levels. These insights should inform ongoing adjustments to integration strategies to ensure long-term success. The role of company culture in mergers and acquisitions extends far beyond the initial deal-making phase. It fundamentally affects employee morale, retention, and ultimately, the success of the new entity. By placing HR at the helm of cultural assessments and integration strategies, companies can enhance their chances of a successful merger or acquisition. For businesses preparing to embark on this journey, understanding and proactively managing cultural integration is not just advisable; it is imperative.   Navigating Business Transitions – The Strategic Partnership of Tagro Solutions and the Exit Planning Exchange At Tagro Solutions, we bring our deep expertise in Human Resources consulting to the table, aligning HR strategies with business objectives to enhance company performance and prepare for successful transitions. Our approach integrates seamlessly with the philosophy of the Exit Planning Exchange (XPX), which fosters collaborative exchanges of information and experiences among its members. Together, we aim to empower business owners through strategic insights and actionable solutions, making the journey from business operation to exit as profitable and smooth as possible. This partnership enriches our weekly roundtables, where I, alongside other business owners, delve into discussions that span the spectrum of exit planning. These conversations are not just theoretical but are grounded in the real-world challenges and successes that define the business exit landscape. Through our collaboration, Tagro Solutions and the Exit Planning Exchange bring a unique, holistic perspective enhancing both our insights and our impact. As we unfold this series of insights on how HR strategies integrate with and support successful business exits, we invite you to engage with us. Whether you are contemplating the future sale of your business or are in the process of shaping the strategic direction of your company towards a transition, this series will provide you with the knowledge and tools essential for navigating these complex waters. Join us as we explore the critical role of HR in business exits and how strategic HR planning can significantly influence the outcomes of mergers, acquisitions, and business sales—ensuring a legacy that endures beyond the sale. Interested in learning more about Tagro? Email info@tagrosolutions.com Interested in learning more about XPX or joining a Roundtable?

Previous
Next

Explore the Knowledge Exchange

Search
Make XPX Part of Your Business Plans
Attend an event
Join a chapter
Start a chapter
Find an advisor
Explore
Learn
Account
Connect
Help & Support

© 2025 XPX Global LLC.          Privacy Policy         Norms & Principles          Site Map           Terms of Use

Paper-plane Linkedin Youtube

© 2025 XPX Global LLC. All Rights Reserved.