VANCOUVER ISLAND – The pandemic has caused many business owners to accelerate their transition plans. Once they’ve gone through the process of selling their business assets, the lump sum they’re left with should help fund their retirement dreams.
When I assist clients in this situation, our discussions usually focus on how they can best convert these proceeds into a stable retirement income.
I share with them that a well-designed retirement income plan should take into consideration many elements, including:
- How can I ensure the safety of my principal?
- How do I mitigate inflation, or of out-living my money?
- How can I control my tax situation?
As a start, here are some tips to consider if these thoughts are also weighing on your mind:
- Just like with your business, solving complex problems probably never came down to one approach. Likewise, you’re going to have a difficult time making your corporate savings both 100% guaranteed, while also realizing some meaningful growth, if your strategy’s not diversified. When you plan, consider using a variety of investment types (term deposits but also things like blue-chip stocks) and then align them to specific time horizons. This will allow more control over risk and can also enhance your return potential.
- Tax has been on your mind for years, but did you know there are some specific things you can do to control its impact on your savings? Consider using corporate-class investment funds, which are designed to be more tax-friendly inside your corporation. Also, using a fee-based investment program will allow you to use some of your expenses as deductions.
If retiring’s on the horizon for you, find an experienced and trusted Certified Financial Planner (CFP) to help you make the most of your retirement income. But as the saying goes, teamwork makes the dreamwork—coordinating the financial planning, tax and legal professionals in your life will allow them to do a much better job for you. And that means more free time to enjoy the other things in retirement… Fore!
Shawn Heidema, BBA CIM, CFP, CPCA is a Private Wealth Advisor / Investment Advisor at Coastal Community Private Wealth Group / Credential Securities For more info, call 250.268.4594