For many business owners, their companies are more than just a way to support themselves during their working years — they’re also their retirement plans. After all, years spent pouring energy into an enterprise can yield a profitable business that, when sold, offers ample funds to support the owner through their golden years.
In reality, this strategy comes with risks. Consider Gary, an optometrist in Georgia. For more than two decades, Gary expanded his patient base and grew the practice’s profitability. Last year, he expected to sell his practice for approximately $3 million to $4 million and retire comfortably. Yet when it came time to sell, a corporate optometry chain opened a location in his town, and prospective buyers were no longer willing to pay what he thought the business was worth. Gary could get at most $2.5 million, leaving him with a significant gap in his retirement funds because he was too preoccupied with running his business to diversify his retirement planning strategy.
