The Retirement Myth: Why most small business owners can't afford to retire and what to do about it

The Retirement Myth: Why most small business owners can't afford to retire and what to do about it

by James Stephen

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Product Details

ISBN-13: 9780994563521
Publisher: Michael Hanrahan Publishing
Publication date: 12/09/2016
Pages: 216
Sales rank: 890,829
Product dimensions: 5.83(w) x 8.27(h) x 0.46(d)

About the Author

James has over 16 years' experience in the financial and business services industry in Melbourne, Sydney and London. He holds a Bachelor of Commerce degree (Finance & Economics), Advanced Diploma in Financial Services (Financial Planning) and is a Certified Financial Planner (CFP). He is the founder of Stephen & Partners Wealth Management, an independently owned financial planning firm with clients from Australia and overseas. He is a specialist in the financial planning needs of small business owners.

Table of Contents

Introduction: 'My business is my super' 1
'My business is my super' 2
1. Running a business is risky 3
2. Business owners have unrealistic expectations 4
3. They don't know how much is enough 5
4. They're entering a crowded retirement market 6
5. Business owners have no exit plan 8
The solution... 9
Step 1: Discover your retirement gap 10
Step 2: Grow and diversify your wealth 10
Step 3: Protect your wealth 11
Step 4: Realise your wealth efficiently 11
Step 5: Review your progress 11
Step 6: Enlist a team of advisers 12
How do I know this? 12
Step 1: Discover your retirement gap 15
1. Where are you now? 16
Key documents 16
Net worth 20
Cash flow 23
2. Where do you want to be? 27
How much do you need? 29
When do you want to achieve the goal? 33
3. What is your retirement gap? 33
4. How can you close the retirement gap? 36
Your turn 41
Key learnings from this chapter 45
Step 2: Grow and diversify your wealth 47
Strategy 1 - Build your business asset value 48
Business profit 50
Business valuation multiple 55
Strategy 2 - Diversify your wealth with non-business assets 58
Ownership structures 62
Asset choice 69
Asset management 74
Use of investment debt 76
Automation 78
Strategy 3 - Adopt an active retirement mindset 79
The benefits of an active retirement 80
Creating an active retirement lifestyle portfolio 83
Take a mulligan 85
Key learnings from this chapter 87
Step 3: Protect your wealth 89
The four steps in your risk management plan 90
1. Identify the risks you face 90
2. Measure each risk 92
3. Choose your risk management approach 93
4. Implementing your risk management plan 95
Structuring your assets 95
Insurance - protecting against a financial loss 101
Estate planning 115
Key learnings from this chapter 128
Step 4: Realise your wealth efficiently 129
Realising wealth from your business 129
2 business exits and 3 exit strategies 132
Exit strategy 1 - Keeping the business in the family 133
Exit strategy 2 - Selling the business outside the family 136
Exit strategy 3 - Liquidating the business 141
Realising wealth from your investments 144
Income from your retirement accounts (super) 145
Income from non-super assets 152
Key learnings from this chapter 154
Step 5: Review your progress 155
Step 1: Discover your retirement gap 157
Funding your retirement gap 160
Step 2: Grow your wealth 161
Business value 161
Diversified investment portfolio 162
Active retirement plan 163
Step 3: Protect your wealth 164
Asset ownership structures 164
Insurances 165
Your estate plan 166
Step 4: Realise your wealth 167
Realising your business wealth 167
Realising wealth from your investment portfolio 168
Key learnings from this chapter 170
Step 6: Enlist a team of advisers 171
The art of delegation 172
Your advice team 174
Accountant 174
Lawyer 175
Financial planner 175
Business coach 176
Technology specialist 176
Small business marketer 177
Business valuer 177
Business broker 177
Mortgage broker 178
A secondary problem... 179
Financial project manager or personal CFO 180
Key learnings from this chapter 181
Bringing it all together 183
Appendix A: Case studies 187
The trouble with earn-outs 187
The value of starting early 188
The consequences of not having an exit plan 189
'My business is my super' 190
The importance of diversification 192
To have an agreements or not to have an agreement... 193
Why you need the right legal agreements in place 194
The benefits of a plan B 196
Appendix B: Useful resources 199
Books 201
Useful guides 203
Websites 203

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