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When owners begin to be proactive regarding succession and exit planning or as we call it, business retirement planning, there is one main question that needs to be answered.

“When will I move from I need more to I have enough?”

Both the question and the answers are as complex as they are varied.

For owners to move into the decision making process for their eventual exit, they must clearly understand and identify these three areas of financial need:

  1. Core capital – Amount necessary to maintain financial independence throughout life expectancy
  2. Risk capital – Amount available to subject to future risk
  3. Emergency capital – Emergency cash for unforeseen expenses (health care, etc.)

It is impossible to implement great planning strategies and move forward in the process until the question of “do I have enough?” is answered.

Traditional financial planning comes up woefully short as most financial planners simply accept the value placed on the business as the exact amount that the owner will receive upon retirement. What if this asset is never monetized?

Business owners crave the ability to see their financial life in an integrated and coordinated manner. They need their personal finances detailed in much the same way they organize their comprehensive business financials. From there the “what if” scenarios can be applied and forecasted out to see if their definition of “enough” is a reality 20-40 years into the future.

When the question of “When will I move from I need more to I have enough?” is accurately answered, business owners gain the confidence to make the big decisions that will positively impact their exit, succession or estate planning.