You are reading: Step 19 – Investment Planning

Craig West

Founder & Chairman

You’ve made it. You’ve sold your business, pocketed that hard-earned check, and now you’re faced with a new reality. As a business owner, you were accustomed to the ebb and flow of finances, investing in your business when needed and reaping the benefits when possible. But post-exit, this dynamic undergoes a seismic shift. You’re no longer pouring money into your business, and it won’t be generating income for you either. So, where does your revenue come from now? This is where ongoing investment planning steps in, and it’s vital.

Understanding the New Reality

The first thing to recognize is that for the first time, your primary source of income will be your investments. While this is perfectly feasible, it necessitates a shift in mindset and a solid strategy. Previously, the business provided; now, your investments will.

Prolonged Life Expectancy and Increased Spending

Life expectancies have dramatically risen, presenting a unique financial challenge. You may live 20 to 30 years after retiring, meaning you need your finances to last longer than ever. Moreover, post-retirement, having more free time often translates to more spending. Travel, hobbies, and adventures become part of your routine, potentially costing more than your working days.

This brings us back to the importance of setting the right financial goals. Meticulous financial planning ensures you know exactly what you need to fund your retirement. How much do you need from the sale of your business, combined with other assets, to sustain your desired lifestyle?

Seek Professional Guidance

Investment planning at this stage is not a do-it-yourself project. It requires expert guidance. A financial advisor can help you chart a course based on your goals, debt situation, desired lifestyle, and other critical factors. They can help you select appropriate investments and design a strategy that aligns with your vision.

In essence, this episode underscores the shift from preparing for the exit to navigating life after the sale. Your wealth, once anchored in your business, now sails through the seas of investment. Planning for these waters requires careful attention and the right guidance to ensure you continue to ‘exit like a boss’ even after the sale is complete.

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