BLOG, ARTICLES, & RESOURCES
Explore insightful articles, expert analysis, and timely updates on the latest trends and best practices in regards to retirement, social security planning, taxation, and risk management. Discover actionable steps and thought-provoking perspectives from The AFI Group's seasoned professionals and industry experts to help you maximize your family legacy.
Taxes in Retirement
Retiring While Owning a Business
Being a small business owner is a unique life experience that can provide many personal and professional rewards, such as being in control of your career. But, this also brings specific financial challenges when creating a path to retirement. As a business owner, you should put important strategies in place before you’re ready to retire, so you can exit your business when and how you want. Read on for some brief reminders on how to plan for challenges and opportunities you may find as you prepare for life after your career.
REMEMBER TO SAVE FOR RETIREMENT
Here is a potential reality shock for you: According to a BMO Wealth Management survey, 75% of small business owners have saved less than $100,000 for their retirement.1 That means only a quarter of small business owners may be financially preparing themselves for their retirement years.
Considering that a retiree today may need as high as $350,000 in retirement for healthcare costs alone (depending on how healthy they are or aren’t), many business owners savings' wouldn't even cover their medical needs.2
Further, if you are relying on selling your business to fund your retirement, you may be left unable to make that vision a reality. In fact, only 20% of companies listed to sell successfully find a buyer.3 As a result, up to 28% of business owners have stated they would delay retirement if they could not sell their business or receive the proceeds they needed.4 So, having adequate savings and other backup financial strategies can help you diversify your retirement funds, should certain goals not pan out as you expect.
ASK YOURSELF:
How much have I saved so far for retirement? Knowing the true value of your savings can help you also identify how this sum will help or hinder you future income goals.
How long do I want to keep working? The difference between how long you will work versus the time you spend in retirement can help you create a real picture of the amount of years you need to financially cover.
CONSIDER HOW YOUR CASH VALUE LIFE INSURANCE CAN HELP YOU
If you hold permanent life insurance, such as whole life, then you have probably built cash value in your policy. For business owners with a retirement-income gap, you may want to consider using your insurance’s cash value as a financial strategy.5 Not only can taking income from your life insurance help you avoid increasing your tax bracket, it can also provide you with immediate funds — that you can delay paying back.6
In addition, should the stock market fall early in your retirement, you can draw from this income without having to sell your investments in a down market.7
ASK YOURSELF:
How much cash value have I built up in my policy? Identifying how much money you have available will help you identify how large a gap this income could fill.
How much longer will I hold this policy? Remember, not paying back your cash-value loan plus interest before you distribute your policy has consequences: You will decrease the amount of distributed benefits in order to settle the loan.8 So, making sure you have enough time to pay back that cash value is part of a sound borrowing strategy.
As a business owner, your financial needs are uniquely yours — and which strategies help you retire from your business when you hope to will depend on your specific goals and income needs. If you’d like to explore how prepared you are to retire, feel free to contact us today. We’re ready and happy to talk.
Social Security
Retiring While Owning a Business
Being a small business owner is a unique life experience that can provide many personal and professional rewards, such as being in control of your career. But, this also brings specific financial challenges when creating a path to retirement. As a business owner, you should put important strategies in place before you’re ready to retire, so you can exit your business when and how you want. Read on for some brief reminders on how to plan for challenges and opportunities you may find as you prepare for life after your career.
REMEMBER TO SAVE FOR RETIREMENT
Here is a potential reality shock for you: According to a BMO Wealth Management survey, 75% of small business owners have saved less than $100,000 for their retirement.1 That means only a quarter of small business owners may be financially preparing themselves for their retirement years.
Considering that a retiree today may need as high as $350,000 in retirement for healthcare costs alone (depending on how healthy they are or aren’t), many business owners savings' wouldn't even cover their medical needs.2
Further, if you are relying on selling your business to fund your retirement, you may be left unable to make that vision a reality. In fact, only 20% of companies listed to sell successfully find a buyer.3 As a result, up to 28% of business owners have stated they would delay retirement if they could not sell their business or receive the proceeds they needed.4 So, having adequate savings and other backup financial strategies can help you diversify your retirement funds, should certain goals not pan out as you expect.
ASK YOURSELF:
How much have I saved so far for retirement? Knowing the true value of your savings can help you also identify how this sum will help or hinder you future income goals.
How long do I want to keep working? The difference between how long you will work versus the time you spend in retirement can help you create a real picture of the amount of years you need to financially cover.
CONSIDER HOW YOUR CASH VALUE LIFE INSURANCE CAN HELP YOU
If you hold permanent life insurance, such as whole life, then you have probably built cash value in your policy. For business owners with a retirement-income gap, you may want to consider using your insurance’s cash value as a financial strategy.5 Not only can taking income from your life insurance help you avoid increasing your tax bracket, it can also provide you with immediate funds — that you can delay paying back.6
In addition, should the stock market fall early in your retirement, you can draw from this income without having to sell your investments in a down market.7
ASK YOURSELF:
How much cash value have I built up in my policy? Identifying how much money you have available will help you identify how large a gap this income could fill.
How much longer will I hold this policy? Remember, not paying back your cash-value loan plus interest before you distribute your policy has consequences: You will decrease the amount of distributed benefits in order to settle the loan.8 So, making sure you have enough time to pay back that cash value is part of a sound borrowing strategy.
As a business owner, your financial needs are uniquely yours — and which strategies help you retire from your business when you hope to will depend on your specific goals and income needs. If you’d like to explore how prepared you are to retire, feel free to contact us today. We’re ready and happy to talk.
Estate Planning
Retiring While Owning a Business
Being a small business owner is a unique life experience that can provide many personal and professional rewards, such as being in control of your career. But, this also brings specific financial challenges when creating a path to retirement. As a business owner, you should put important strategies in place before you’re ready to retire, so you can exit your business when and how you want. Read on for some brief reminders on how to plan for challenges and opportunities you may find as you prepare for life after your career.
REMEMBER TO SAVE FOR RETIREMENT
Here is a potential reality shock for you: According to a BMO Wealth Management survey, 75% of small business owners have saved less than $100,000 for their retirement.1 That means only a quarter of small business owners may be financially preparing themselves for their retirement years.
Considering that a retiree today may need as high as $350,000 in retirement for healthcare costs alone (depending on how healthy they are or aren’t), many business owners savings' wouldn't even cover their medical needs.2
Further, if you are relying on selling your business to fund your retirement, you may be left unable to make that vision a reality. In fact, only 20% of companies listed to sell successfully find a buyer.3 As a result, up to 28% of business owners have stated they would delay retirement if they could not sell their business or receive the proceeds they needed.4 So, having adequate savings and other backup financial strategies can help you diversify your retirement funds, should certain goals not pan out as you expect.
ASK YOURSELF:
How much have I saved so far for retirement? Knowing the true value of your savings can help you also identify how this sum will help or hinder you future income goals.
How long do I want to keep working? The difference between how long you will work versus the time you spend in retirement can help you create a real picture of the amount of years you need to financially cover.
CONSIDER HOW YOUR CASH VALUE LIFE INSURANCE CAN HELP YOU
If you hold permanent life insurance, such as whole life, then you have probably built cash value in your policy. For business owners with a retirement-income gap, you may want to consider using your insurance’s cash value as a financial strategy.5 Not only can taking income from your life insurance help you avoid increasing your tax bracket, it can also provide you with immediate funds — that you can delay paying back.6
In addition, should the stock market fall early in your retirement, you can draw from this income without having to sell your investments in a down market.7
ASK YOURSELF:
How much cash value have I built up in my policy? Identifying how much money you have available will help you identify how large a gap this income could fill.
How much longer will I hold this policy? Remember, not paying back your cash-value loan plus interest before you distribute your policy has consequences: You will decrease the amount of distributed benefits in order to settle the loan.8 So, making sure you have enough time to pay back that cash value is part of a sound borrowing strategy.
As a business owner, your financial needs are uniquely yours — and which strategies help you retire from your business when you hope to will depend on your specific goals and income needs. If you’d like to explore how prepared you are to retire, feel free to contact us today. We’re ready and happy to talk.
Investment Strategies
Retiring While Owning a Business
Being a small business owner is a unique life experience that can provide many personal and professional rewards, such as being in control of your career. But, this also brings specific financial challenges when creating a path to retirement. As a business owner, you should put important strategies in place before you’re ready to retire, so you can exit your business when and how you want. Read on for some brief reminders on how to plan for challenges and opportunities you may find as you prepare for life after your career.
REMEMBER TO SAVE FOR RETIREMENT
Here is a potential reality shock for you: According to a BMO Wealth Management survey, 75% of small business owners have saved less than $100,000 for their retirement.1 That means only a quarter of small business owners may be financially preparing themselves for their retirement years.
Considering that a retiree today may need as high as $350,000 in retirement for healthcare costs alone (depending on how healthy they are or aren’t), many business owners savings' wouldn't even cover their medical needs.2
Further, if you are relying on selling your business to fund your retirement, you may be left unable to make that vision a reality. In fact, only 20% of companies listed to sell successfully find a buyer.3 As a result, up to 28% of business owners have stated they would delay retirement if they could not sell their business or receive the proceeds they needed.4 So, having adequate savings and other backup financial strategies can help you diversify your retirement funds, should certain goals not pan out as you expect.
ASK YOURSELF:
How much have I saved so far for retirement? Knowing the true value of your savings can help you also identify how this sum will help or hinder you future income goals.
How long do I want to keep working? The difference between how long you will work versus the time you spend in retirement can help you create a real picture of the amount of years you need to financially cover.
CONSIDER HOW YOUR CASH VALUE LIFE INSURANCE CAN HELP YOU
If you hold permanent life insurance, such as whole life, then you have probably built cash value in your policy. For business owners with a retirement-income gap, you may want to consider using your insurance’s cash value as a financial strategy.5 Not only can taking income from your life insurance help you avoid increasing your tax bracket, it can also provide you with immediate funds — that you can delay paying back.6
In addition, should the stock market fall early in your retirement, you can draw from this income without having to sell your investments in a down market.7
ASK YOURSELF:
How much cash value have I built up in my policy? Identifying how much money you have available will help you identify how large a gap this income could fill.
How much longer will I hold this policy? Remember, not paying back your cash-value loan plus interest before you distribute your policy has consequences: You will decrease the amount of distributed benefits in order to settle the loan.8 So, making sure you have enough time to pay back that cash value is part of a sound borrowing strategy.
As a business owner, your financial needs are uniquely yours — and which strategies help you retire from your business when you hope to will depend on your specific goals and income needs. If you’d like to explore how prepared you are to retire, feel free to contact us today. We’re ready and happy to talk.
Business Owners
Retiring While Owning a Business
Being a small business owner is a unique life experience that can provide many personal and professional rewards, such as being in control of your career. But, this also brings specific financial challenges when creating a path to retirement. As a business owner, you should put important strategies in place before you’re ready to retire, so you can exit your business when and how you want. Read on for some brief reminders on how to plan for challenges and opportunities you may find as you prepare for life after your career.
REMEMBER TO SAVE FOR RETIREMENT
Here is a potential reality shock for you: According to a BMO Wealth Management survey, 75% of small business owners have saved less than $100,000 for their retirement.1 That means only a quarter of small business owners may be financially preparing themselves for their retirement years.
Considering that a retiree today may need as high as $350,000 in retirement for healthcare costs alone (depending on how healthy they are or aren’t), many business owners savings' wouldn't even cover their medical needs.2
Further, if you are relying on selling your business to fund your retirement, you may be left unable to make that vision a reality. In fact, only 20% of companies listed to sell successfully find a buyer.3 As a result, up to 28% of business owners have stated they would delay retirement if they could not sell their business or receive the proceeds they needed.4 So, having adequate savings and other backup financial strategies can help you diversify your retirement funds, should certain goals not pan out as you expect.
ASK YOURSELF:
How much have I saved so far for retirement? Knowing the true value of your savings can help you also identify how this sum will help or hinder you future income goals.
How long do I want to keep working? The difference between how long you will work versus the time you spend in retirement can help you create a real picture of the amount of years you need to financially cover.
CONSIDER HOW YOUR CASH VALUE LIFE INSURANCE CAN HELP YOU
If you hold permanent life insurance, such as whole life, then you have probably built cash value in your policy. For business owners with a retirement-income gap, you may want to consider using your insurance’s cash value as a financial strategy.5 Not only can taking income from your life insurance help you avoid increasing your tax bracket, it can also provide you with immediate funds — that you can delay paying back.6
In addition, should the stock market fall early in your retirement, you can draw from this income without having to sell your investments in a down market.7
ASK YOURSELF:
How much cash value have I built up in my policy? Identifying how much money you have available will help you identify how large a gap this income could fill.
How much longer will I hold this policy? Remember, not paying back your cash-value loan plus interest before you distribute your policy has consequences: You will decrease the amount of distributed benefits in order to settle the loan.8 So, making sure you have enough time to pay back that cash value is part of a sound borrowing strategy.
As a business owner, your financial needs are uniquely yours — and which strategies help you retire from your business when you hope to will depend on your specific goals and income needs. If you’d like to explore how prepared you are to retire, feel free to contact us today. We’re ready and happy to talk.
BLOGS & RESOURCES
Retiring While Owning a Business
Being a small business owner is a unique life experience that can provide many personal and professional rewards, such as being in control of your career. But, this also brings specific financial challenges when creating a path to retirement. As a business owner, you should put important strategies in place before you’re ready to retire, so you can exit your business when and how you want. Read on for some brief reminders on how to plan for challenges and opportunities you may find as you prepare for life after your career.
REMEMBER TO SAVE FOR RETIREMENT
Here is a potential reality shock for you: According to a BMO Wealth Management survey, 75% of small business owners have saved less than $100,000 for their retirement.1 That means only a quarter of small business owners may be financially preparing themselves for their retirement years.
Considering that a retiree today may need as high as $350,000 in retirement for healthcare costs alone (depending on how healthy they are or aren’t), many business owners savings' wouldn't even cover their medical needs.2
Further, if you are relying on selling your business to fund your retirement, you may be left unable to make that vision a reality. In fact, only 20% of companies listed to sell successfully find a buyer.3 As a result, up to 28% of business owners have stated they would delay retirement if they could not sell their business or receive the proceeds they needed.4 So, having adequate savings and other backup financial strategies can help you diversify your retirement funds, should certain goals not pan out as you expect.
ASK YOURSELF:
How much have I saved so far for retirement? Knowing the true value of your savings can help you also identify how this sum will help or hinder you future income goals.
How long do I want to keep working? The difference between how long you will work versus the time you spend in retirement can help you create a real picture of the amount of years you need to financially cover.
CONSIDER HOW YOUR CASH VALUE LIFE INSURANCE CAN HELP YOU
If you hold permanent life insurance, such as whole life, then you have probably built cash value in your policy. For business owners with a retirement-income gap, you may want to consider using your insurance’s cash value as a financial strategy.5 Not only can taking income from your life insurance help you avoid increasing your tax bracket, it can also provide you with immediate funds — that you can delay paying back.6
In addition, should the stock market fall early in your retirement, you can draw from this income without having to sell your investments in a down market.7
ASK YOURSELF:
How much cash value have I built up in my policy? Identifying how much money you have available will help you identify how large a gap this income could fill.
How much longer will I hold this policy? Remember, not paying back your cash-value loan plus interest before you distribute your policy has consequences: You will decrease the amount of distributed benefits in order to settle the loan.8 So, making sure you have enough time to pay back that cash value is part of a sound borrowing strategy.
As a business owner, your financial needs are uniquely yours — and which strategies help you retire from your business when you hope to will depend on your specific goals and income needs. If you’d like to explore how prepared you are to retire, feel free to contact us today. We’re ready and happy to talk.
CONTACT US:
info@theafigroup.com
Office: 714.543.5900
Hours: Monday - Friday | 8AM - 5PM
DISCLAIMER:
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named representative, broker - dealer, state - or SEC - registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
We take protecting your data and privacy very seriously. As of January 1, 2020 the California Consumer Privacy Act (CCPA) suggests the following link as an extra measure to safeguard your data: Do not sell my personal information.
Life insurance & annuity services provided by Advanced Financial, Steve Sousa CLU, CA License#0476190
Brian Walker CA License #0H13310 | Jessica Markworth CA License #0E56830 | Jill Sousa CA License # 0L05626
Securities investment services provided by Inception Financial Services with advisory services offered through AlphaStar Capital Management.
CONTACT US:
info@theafigroup.com
Office: 714.543.5900
Hours: Monday - Friday | 8AM - 5PM
DISCLAIMER:
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named representative, broker - dealer, state - or SEC - registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
We take protecting your data and privacy very seriously. As of January 1, 2020 the California Consumer Privacy Act (CCPA) suggests the following link as an extra measure to safeguard your data: Do not sell my personal information.
Life insurance & annuity services provided by Advanced Financial, Steve Sousa CLU, CA License#0476190
Brian Walker CA License #0H13310 | Jessica Markworth CA License #0E56830 | Jill Sousa CA License # 0L05626
Securities investment services provided by Inception Financial Services with advisory services offered through AlphaStar Capital Management.