Personal Financial Planning
for Family Business Owners:
Providing for the Future Without Rocki
How do you plan for retirement when most of your wealth is tied up in the business? That’s the challenge facing many owners of small and mid-size companies.
For owners of family businesses, though, that is just the beginning of the challenge. Because they must not only deal with approaches for generating retirement income, but with delicate family planning issues as well.
If the next generation of family members won’t be involved in the business, personal financial planning could take one course. If some members of the next generation want to be in the business and some don’t, personal financial planning could take another course. And if all members of the next generation expect to be in the business, it could take still another direction. More…
Just In Case Something Happens to Me…
by Edwin A. Hoover, Ph.D. CMC
and Colette Lombard Hoover, M.S
LSi Resource for Family Business Management
Editor’s Note:The company described in this article is not an actual company but is a composite based on many family businesses we have worked with.The names are fictitious.
The last thing Judy Richardson expected was that her husband Gary would not make it out of the recovery room, dying from complications related to hip replacement surgery. Gary was only 61.The doctors assured him that the risks were few given his good health.No one imagined that a blood clot would tragically end his vibrant life.It was impossible to imagine the impact of the hole left in his family and in the business which he founded and ran for twenty-two years.”Thank God,” said Judy, “Gary left us those instructions about the business!”
Judy referred to the Emergency Management Transition (EMT) letter that Gary had written barely a year before his death.Like most successful entrepreneurs Gary was enthusiastic, optimistic and hard driving.The very same characteristics that make business owners successful also make it difficult for them to think about their mortality and planning beyond it. More…