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Selling Business yet Worried about Income >>> Linda's Story


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Fear of how to draw income nearly stopped Linda from selling her company. Expecting conservative low returns she couldn't afford to sell ....until learning Life Income Mandates support higher and safer results. >>> See more also at Amazon, "A Lifetime Of Wealth -- And How Not To Lose It"

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Selling Business yet Worried about Income >>> Linda's Story

  1. 1. Selling Business yet Worried about Income <> Linda’s Story Brian Weatherdon MA, CFP, CLU, CPCA Author, Speaker, Financial Planner. Aligning your Wealth & Life to overcome fears and secure your income, lifestyle, & comfort to age 105
  2. 2. Before hearing this story . . . . • Continuing into these slides signifies you realize one person’s story cannot be representative of what everyone else should do. This story is personal and not in any way prescriptive for what you should do, nor for how your advisors may guide you.• • Stories in this wider series capture different approaches to value and decisions in business, pension, savings, and results for personal security, life income, and family estate. • More information/insights at educational website • And 5-star rated book (Amazon, Kindle, bookstores) “A Lifetime Of Wealth -- And How Not To Lose It”
  3. 3. Linda completed sale of business • What a relief – 5 years completing this! • But she nearly pulled the plug & stopped it! • Question was, she knew how to get income from a business .... But how would she get income after selling the business?
  4. 4. Linda is cautious about money • Business was her “equity”, and other savings were invested conservatively, in low % rates. • With 30-year bonds paying <4% and 5-year deposits nearer 2% Linda decided it wasn’t safe to sell the business: she’d need more money and fewer years ...or grow old & poor!
  5. 5. Fear of outliving her money • She would only invest in guaranteed deposits paying near the rate of inflation. • She came to realize, earning 3% and paying tax on that, she’d soon run out of $$. • She also realized health inflation is higher: if we’re aging, we’ll be paying for health care. * In 2009 the International Monetary Fund said the impact of aging and health care will hit the world with 10-times the force of the 2008 global financial meltdown.
  6. 6. Fear of the future • Over-spending earnings, and out-living capital would put her at mercy of her family. Her health bills could attack their savings and prevent her children from every retiring. • Selling the business seemed too risky. She’d have to postpone her dreams and keep to the grindstone at least 8 more years. Eight years to press on with delayed dreams of freedom.
  7. 7. The answer came in layers • “Life Income Mandates” is a strategic process that can resolve Linda’s fear of the future. * • “Life Horizon Analysis” also aligns Linda’s income needs with the future stages of living to fulfil dreams of early retirement, lower spending of middle years, and greater expense for personal care & comfort at a later point. * * More on these in website and book: see final slide.
  8. 8. Ultimately an Income to fit Life • Linda realizes her spending won’t be constant. “Bucket list” experiences – travel, family, and more – will need higher income to age 70/75. • She expects life and spending will be more settled then for an extended period. • Eventually reduced strength and increasing support suggests a return to higher spending in order to sustain her comfort, care & dignity.
  9. 9. Income sources to support life • Guaranteed Life-Payout Annuities laddered from >6% and rising with future rungs on ladder. • Global govts & corporate fixed-income • Global Dividend Income • Global Infrastructure Income • Global Diversified Real Estate Income + income sourced from life, health, long term care insurances. + tax advantages with some of the above sources of income.
  10. 10. Strong income, indexed income • Life annuities come with guarantees; laddering increases these future guaranteed payments. • Sources of income from global dividends, infrastructure, and diversified real estate will generally also rise through future years. • AND will such a portfolio prove effective and fit Linda’s precise investor (risk/return) profile?
  11. 11. If the plan fits . . . Linda can sell • Linda cannot sell the business and secure her life dreams & future on 3%. But if something near 6% were possible with a reduced market- risk, could Linda then consider to sell? • If Linda doesn’t sell now, countless variables can affect business valuation in coming years. And if she eventually sells, can Linda buy back the lost time and fulfil her delayed dreams?
  12. 12. Exit strategies for Linda’s business • Exit strategies include preparing the business and Linda: business valuation, assessing the market, guidance of her accounting and legal advisors, and strategic planning for wealth, life-income, tax-reduction, and family estate. • This may take 1 to 5 years. If Linda has been preparing well ahead, it may go more quickly.
  13. 13. More on Exit Strategies for Business • The website has a growing library of resources including video, podcast, articles, blogs, in addition to the learning modules in the site, and the book. • A next step and subscribe for more... “Exit Strategies for Business”
  14. 14. Resources to help get what you want • Experience this website to help focus on your future: • Get 5-star book, Amazon/Kindle/bookstores: “A Lifetime Of Wealth – And How Not To Lose It” ie=UTF8&qid=1380311791&sr=8-1&keywords=a+lifetime+of+wealth+-- +and+how+not+to+lose+it • Visit