READER’S POLL: Have you Calculated Your Wealth Gap?
Retirement is an inevitability for us all. At some point, you will have to stop working, whether by choice or through myriad circumstances. Regardless of how you come to retire, you will need to have enough saved up to support you through your golden years. While you may have a 401(k) or ROTH IRA, that may not be enough to sustain the lifestyle you desire for your retirement. Calculating this wealth gap can give you a clear target (that you and your advisor can plan around) for what you will need to earn to live the retirement of your dreams. As a business owner, you have an incredible tool for closing this gap, at your disposal. Working to improve the intrinsic value of your business is a great way to leverage your greatest asset into a valuable commodity that can be sold to help fund your retirement.
If you answered…
“Yes. I’ve closed my wealth gap and I’m ready to retire.“
This is great news! But, unless you’re actively moving into retirement, don’t stop now. By continuing to work on the 8 key areas of your business that have the most direct impact on its value, you could create even greater wealth. By playing the wealth game to its completion, you could leave a legacy that impacts generations to come.
“No. I’m afraid to look.”
We understand. As a business owner, you have so many who depend on you. There’s always “that next meeting,” a team member who’s struggling through something deeply personal, imposter syndrome, trying to keep all of the plates spinning, etc. It’s amazing that business owners get any sleep at all with the constant parade of things to worry about when lying in bed at night. However, the only way to quell those fears is by facing them head-on. Once you’ve taken the time to examine the problem, you can create a plan to resolve it. Don’t waste another day wondering if everything’s just going to work out. Be proactive and create a plan to close your wealth gap. It will be one less thing to keep you up at night!
“Yes. I still have some work to do but I have a plan in place.”
Knowing where you stand has got to be a huge relief. As you continue to work on your business and toward closing your wealth gap, don’t forget to include an often overlooked detail. Many business owners think they’ve considered everything in their financial plans but reach retirement realizing that life outside of their businesses is a bit more expensive than they were expecting. You can avoid this financial shock by normalizing your personal income and including it in your wealth gap calculation.
Many business owners fail to make the connection between their personal finances and their business. The Financially Simple team of advisors and business value growth experts are passionate about helping small business owners succeed in reaching all of their financial goals. But to bridge your wealth gap and have the retirement you’ve always dreamed of, you must begin working on your exit now. Reach out to our team to learn more about how we could help.