Buy Income and Invest the Difference

Today’s retiring business owner may have many fears about the future. Is there a willing and able buyer ready to step in and purchase my business? Will the business sell for what it’s worth or what I think I should receive? Will the new owner fail and I end up with the business in less than optimum condition?  
Once you have resolved those issues and overcome those particular fears, a new set of fears may overwhelm you. They include: 
  • Outliving your income
  • Loss of financial control
  • Inflation eroding your purchasing power
  • What will my legacy be for my family, community, business?
  • Making investment mistakes
The steps necessary to alleviate those five fears are:
First; eliminate risk-based income sources, while simultaneously insuring against investments that may not perform as planned or expected.
Second, hedge your financial resources so they meet or exceed current inflation rates.
Third, after personal and family obligations are satisfied, consider legacy planning for your community and support for preferred charities.
Lastly, consider the difference between ‘Retirement Paychecks’ and ‘Retirement Playchecks’. What does that mean?
Retirement Paychecks provide constant and consistent income day in and day out without regard to market or inflationary concerns.  Once you’ve established your Retirement Paychecks, then we can consider Retirement Playchecks. 
Retirement Playchecks allow the retiree to take some investment risks because their Retirement Paychecks (base pay) are protected. Think of a Paycheck as your defensive position and a Playcheck as your offensive position.  Both have their role on the team but totally different objectives. Together, they make for an almost unstoppable financial position. Combined, they allow you to accomplish your financial objectives in retirement while also alleviating many of the fears that business owners and retirees face.
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Make it a great retirement with Covenant Consulting Group!