Does Selling Your Small Business Count As A Retirement Plan?
If you believe the histrionic news reports and the snarky listicles on social media, all the Baby Boomers retired at age 65 from corporate jobs and rode off into the sunset toward their houses with paid off mortgages and their retirement pensions and savings accounts that would enable them to lounge on the beach or schmooze on the golf course for the next 30 years. By this logic, the younger generation, who were never offered the perks that Boomers got, have realized that work is for chumps and have decided to make their bread and butter by monetizing their YouTube channels. These are just stereotypes, however, and they do not account for the numerous self-employed Baby Boomers. The Small Biz Trends website has just published a report about the state of Boomer-owned businesses in the United States. In summary, Baby Boomer entrepreneurs are a major source of financial stability for themselves and their communities, but they will need to retire soon, and many of them have not thought that far. If you are an ageless Boomer entrepreneur, a Tampa estate planning attorney can help you build your eleventh-hour estate plan.
No Plans to Retire and No Retirement Plans
Some professions are so much fun that it is nothing out of the ordinary that those who practice them never want to retire. Economists and rock musicians are the first such professions that come to mind, but entrepreneurship is another line of work where there is never a dull moment. According to Small Biz Trends, 2.3 million Boomer-owned businesses are helping to keep the U.S. economy afloat. They represent almost every possible industry, from restaurants to home services, from one-person operations to big corporations. If you added the value of all the Boomer-owned businesses together, you would get $68 trillion, and if you divided the money evenly among the next generation as an inheritance, then every American born between 1970 and 1990 would inherit $220 million.
This is not what Baby Boomer entrepreneurs have planned. In fact, they haven’t planned much of anything. While more than three quarters of Boomer-owned businesses are profitable, more than half of the proprietors have not made any plans for retirement. If they were to decide to sell their businesses to younger entrepreneurs, though, everyone would win. Established businesses are a safe investment, and Boomers who sold their long-established businesses to risk averse Millennial entrepreneurs would soon be able to ride off into the sunset and join their corporate drone peers on the golf course. The only difference is that the retired entrepreneurs would have much better stories to tell about life before retirement.
Contact David Toback With Questions About Estate Planning for Entrepreneurs
A Central Florida estate planning lawyer can help you if operating a small business has been keeping you young, but you are only now starting to realize that you will not be young forever. Contact David Toback in Tampa, Florida to set up a consultation.