Small business owners think differently about retirement than other executives. Your business’s assets and savings all play a key role in your retirement strategy.
SunTrust Business Owner Research found that more than 70 percent of owners count on either the sale of their business or savings it generates to fund their retirement. Consequently, having a plan for building and monetizing your business asset well before you plan to leave your business must be a key part of your retirement strategy.
The challenge for business owners is that many financial advisors traditionally involved in retirement planning focus only on narrow aspects of the retirement formula, such as investing non-business assets, securing insurance and handling the sale of a business. So it’s no surprise that SunTrust research found that less than five percent of business owners identified their investment advisors, business brokers and insurance agents as the best resources to build the value of their businesses before they retire.
You need to consider your entire financial picture when assembling a team of financial professionals. Your team should help build your business asset, while growing and preserving your personal investment portfolio. Ideally, your checklist for financial partners includes those who:
Keep in mind that you are unlikely to check all the above boxes with one person. Your team often will include advisors or bankers who specialize in a particular area, such as business banking or private wealth planning, but understand how to work together to address your needs. As a business owner, your needs holistically should include plans for your business and personal assets.
About SunTrust Business Owner Research: SunTrust surveys small business owners and advisors as part of its ongoing business seminars and symposiums. The small business owners attending these events include both SunTrust client and non-client business owners and are representative of the broad spectrum of businesses located in the SunTrust markets. The research cited in this report is extracted from these 5,425 small business owner surveys collected between 2007 and 2011.
This article is general in nature and does not constitute legal, tax, or investment advice. SunTrust makes no warranties as to accuracy or completeness of this information, does not endorse any non-SunTrust companies, products, or services described here, and takes no liability for your use of this information.