Banking on selling a business to fund retirement is a very bad idea and seems to be a popular one. The Financial Planning Association conducted a survey and discovered that 78% of American small business owners are expecting to fund 60%-100% of their retirement by selling their business, and yet many of them have no idea what the true value is. 

Even if a business valuation is performed and the business is valued at $500,000 or more, anything can happen between the date of the valuation and the date the owner decides to sell. And what if the business doesn’t sell when the time comes? What then? 

Many small business owners have been living “check to check” since the beginning of the pandemic. They spend every penny they make to keep their business (a.k.a. their retirement plan) afloat and aren’t considering other investment options because they feel they can’t afford them. The truth is, they can’t afford not to invest towards retirement. 

Our experts at Alloy Investment Management would say that investing something is better than investing nothing. Even 3%, 5%, or 10% of earnings invested in a 401k, IRA, Fixed Annuity, Stock Market, etc. can help build retirement savings. And you don’t have to make a lot of money to benefit from our Retirement Planningservices. When you are ready to sell your business, we’ll be here every step of the way. 800-689-3935