How Does Your Small Business Fit Into Your Estate Plan?
Some people were made to be small business owners. When you are operating a business, there is always something to do, but there is no one bossing you around. You can make plenty of money if you apply yourself, but sometimes even if you devote all your waking hours to your business, you don’t even break even, for reasons outside your control. One of the most beautiful things about operating a business is that, while you may have a multitude of plans for the future, the fact that you are in charge of the day-to-day operations of the business requires you to live in the moment. Therefore, retirement planning for entrepreneurs differs greatly from retirement planning for corporate employees. If you have a corporate job, then you can take a “set it and forget it” approach to retirement, and simply have your employer’s payroll department deposit a certain amount from your paycheck, plus your employer’s matching contribution, each month for decades. Meanwhile, when you own a small business, the task of saving for retirement falls entirely on you. An Orlando estate planning lawyer can help you plan to use your business ownership to create a comfortable retirement for yourself and generational wealth for your family.
Baby Boomers and Small Business: A Whole Lot of Money, but Few Plans for Retirement
According to a recent report on the Small Biz Trends website, Baby Boomers own 2.3 million businesses in the United States; the total value of all Boomer-owned businesses in the nation is $68 million. More than half of the business owners born before 1960 do not have a retirement plan.
On a society-wide level, Boomer-owned businesses are a major source of prosperity. One out of every three employees who receive a W-2 in the United States get their paycheck from a business owned by a member of the Boomer generation. As for inheritance, if all the Boomers pooled the value of their business interests for the younger generation to inherit, every American born between 1970 and 1990 would receive an inheritance of $220,000.
In other words, if you are a Baby Boomer small business owner, the problem is not that you don’t have money. The problem is that you don’t have a plan. If you sell your business to a member of the younger generation, the proceeds of the sale can amount to a comfortable amount in savings so you can enjoy your retirement. You may find that you can take your pick of young entrepreneurs looking to buy an already established business. If you want to keep ownership of the business in the family, you may look into ways to have someone run the business for you so that you can retire from day-to-day operations.
Contact Gierach and Gierach About Estate Planning for Entrepreneurs
An estate planning lawyer can help you develop a practical estate plan if you are a self-employed entrepreneur. Contact Gierach and Gierach, P.A. in Orlando, Florida to discuss your case.