Business owner topics covered in this episode: -Private Equity deals for small and medium size business owners -Deferred Sales Trust -Succession Planning and Exit Strategies for business owners
So that leads us to our topic of the day, a milestone that many strive for and more people reach than the news would have you to believe – accumulating a million dollars – but is that enough to retire on? We’re even going to discuss strategies for those of you fortunate enough to have a million dollars of investments and looking at potentially retiring early, which I can tell you from experience, is one of the most enjoyable and fun financial planning experiences we have with our clients at Gulf Coast Financial Advisors.
Rule 72(t) is a section of the IRS code that covers the exceptions and processes that allow you to withdraw money from your qualified retirement accounts be age 59 ½ and not pay the typical 10th early withdrawal penalty.
A Roth Conversion is a pretty simple concept to grasp. Basically, you take a withdrawal from the assets that you have accumulated in a pre-tax qualified account, or in plain English, a traditional IRA, and then that withdrawal is deposited into a Roth IRA account soon thereafter.
What if I told you that there is process that involves both forward looking tax planning and systematically looking into every nook and cranny for tax efficiencies? Would you be interested?
Do you enter into a buy-sell agreement with a partner? If you don’t have a partner, do you bring one on? Do you transition the business to the next generation of family? Do you sell it to the employees? Do you sell it to a third party? And of course, the million dollar question is…what is it even worth?