Stick Like Glue Radio #156 On this special episode of Stick Like Glue Radio, I interview the Retirement Answer Man, Roger Whitney. We talk about getting ready for those ‘golden years’ and how being an entrepreneur has both challenges and opportunities!
On this special episode of Stick Like Glue Radio, I interview The Retirement Answer Man, Roger Whitney. We talk about getting ready for those ‘golden years’ and how being an entrepreneur has both challenges and opportunities!
Main Questions Asked:
How long have you been known as the ‘Retirement Answer Man?’
Is there a different strategy for self-employed people when it comes to retirement?
Do you work with entrepreneurs to help them ready their business for sale?
When someone is getting their business ready for sale, is there a certain time frame?
What are the biggest challenges people face when it comes to retirement planning?
Do you have a personal opinion on social security?
Are there any special laws or circumstances that pertain to entrepreneurs and retirement?
Key Lessons Learned:
Roger believes that entrepreneurs are told to think about retirement in a wrong way.
If you have forethought, you have a lot more control over a life you never want to retire from.
Structure life to where it is more of an enjoyable journey than it is about building up a nest egg and hope it lasts until you die.
If you can build a business rather than a job, i.e. a business that can operate without you and has enterprise value, you can create a life of having something of an annuity for the rest of your life.
Readying Your Business For Sale
From a business owner’s perspective, the steps you would take to sell the business or have it operate on its own are pretty much the same.
The steps you take to have your business be an enterprise rather than a sole proprietor not only increases the value of the business but increases the likelihood that you can step away.
As a small business owner, there are things you do to minimize your tax bill, but at some point, in order to make your business attractive, you need to do things differently to make your profit and loss look healthy.
Roger suggests getting the businesses books in order 3-5 years before the sale.
Entrepreneurs Thinking About Retirement
Think about yourself separately from your business.
Entrepreneurs don’t have a lot of ‘don’t go broke’ money as they are used to making bets on themselves.
Challenges of Retirement Planning
People don’t necessarily understand how much money they need in order to maintain their lifestyle into old age.
Decide how you will manage the risks of challenges in the market and uncertainties in your health and inflation.
Personal Financial Planning
Figure out your 1, 3, and 5-year priorities as a person.
Identify your current and future revenue sources.
Assess your lifestyle expenses and overheads.
Figure out where to invest excess cash flow.
Roger uses the ages of 90 for men and 92 for females as the life expectancy point from which to calculate.
As you age, plans will need to be adjusted in order to maximize quality of life.
The biggest planning opportunity for small business owners with few employees and consistent cash flow is to create a personal pension plan.
Anyone born before 1960 probably won’t have a problem with benefiting from social security.
There are ways of solving the social security crisis that aren’t as dramatic as some of the published articles have you believe.