Case Story – Business Owners Ready for Exit

Jack and Kate

Jack and Kate own a successful manufacturing business and are ready for exit. They have built it up together over the past 23 years and they are proud of the strong and profitable company they have created. However, COVID was a mixed bag for them, and managing their business throughout the pandemic has brought about new adjustments and challenges. As they work together through these decisions, they find themselves focusing more on what they want to do and when they want to do it.

Their Estate Planner

After meeting with their estate planner, to plan for their family’s future, they have realized that they are ready to take the next step in their lives and transition out of their business and into retirement. They are aware of how valuable their business is and are confident that their hard work will afford them a comfortable retirement.

However, Jack and Kate are quite aware of the fact that turning their existing business into an income stream, to fund their retirement, will require more than a “For Sale” sign in the front yard. The process and anxiety of the unknown have them feeling overwhelmed, luckily their estate planner has seen how we’ve helped other clients of theirs, and referred Jack and Kate to us at Retirement Solutions Inc.

Inflation, Rising Interest Rates, and Stock Market Fluctuations

Between planning the sale of their business and being inundated with headlines about market volatility, Jack and Kate’s heads were spinning. The first step in our planning process was to identify their retirement and legacy goals, and create a time-segmented plan for the proceeds from their business sale. At the same time, we connected them with the right investment bankers and transactional business attorneys so we could guide them through the business sale process together.

With Intelligent Clients

For Jack and Kate, they knew that the execution of this transaction and their retirement plan was crucial in meeting their retirement goals. In addition to funding their ideal retirement lifestyle, leaving a legacy for their family and meaningful charitable gifting were also top priorities. So, we mapped out their Retirement Income Distribution plan for them, taking life events, market activities as well as their goals and fears into account.

What We Came Up With

Our solution was a plan that provided for the retirement Jack and Kate dreamed of, as well as planned charitable contributions and tax efficient gifting to their children and grandchildren. Our main goal was to help Jack and Kate feel secure in the knowledge that if the markets went down, their assets would be in a strategic position to protect their wealth for many generations, while still giving them access to the funds they want today.