Carnac, France
Taking the stress out of financial planning
What does financial freedom mean for you?
You have worked extremely hard – running a business that you perhaps founded; getting through the tough times; making it successful; supporting employees and their families. You have put blood, sweat and tears, every waking hour, and maybe even your own money into making your business a success.
You have probably been running at 100 mph for some time now – and as you plan to relinquish control via the Employee Ownership process, you are now about to embark on a life-shaping journey.
So what does life look like now? What does financial freedom mean for you?
The Big Question:
How confident are you that you have a robust, stress-tested financial plan in place that not only provides you with peace of mind over your future financial security, but shows you exactly what you need to do to ‘get more life out of life’?
What does the future look like for you?
In our 30-odd years of working with business owners, we’ve found we’re often the first people to really encourage exiting owners to think about what they want the next stage of their life to look like.
Going through this visualisation process is crucial: it gives you the peace of mind during your next steps – confident in the knowledge that you will have the money to do what you want to do next.
Which one of the following most closely describes you?
You want to keep working in some capacity, but with more free time to actually start getting more life out of life – in other words, you are looking for a better work/life balance
You’re ready for another entrepreneurial challenge: the next exciting thing to build from scratch and grow into a success
Actually, it’s pretty simple: you want to hang your boots up…and sail off into the sunset
Whatever your aims, your next step will always be the same…
…it’s time to make a plan.
Making a plan: why it is important?
At the moment you are used to earning a certain amount of money and funding a certain lifestyle – mostly through salary and/or business profits. You may also receive income from other sources you have established over time, such as other business ventures, investments, or a buy-to-let portfolio. You might even already be receiving some pension income.
But how does that change when you exit the business?
You will need to make sure the proceeds you receive when you exit the business – the funds you have worked so hard for – are now in turn working hard for you. This ultimately means investing them in the right way.
How investment can transform your future
By moving the slider below, you can see a simple example of how and when investments might be used across a person’s remaining lifetime, from their 50s until age 100. Let’s call them ‘Jack’.
Jack is used to a certain lifestyle that costs around £100,000pa. He’d like to maintain this into retirement (the black line in the graphic below).
Without proper financial planning, the returns from his business sale (yellow) do not allow him to sustain that level across his lifetime. He holds a state and a personal pension (dark blue and green), but they cannot plug the shortfall (red).
With proper financial planning, carefully managed investments – calibrated to the level of risk Jack is willing to tolerate – can make up the difference (light blue).
Your next step: Talk to us about EO
Start planning for the future you want today: book an exploratory consultation with one of our specialists.
This is a chance for us to find out a little more about your situation, and for you to ask any questions you need to. It is complimentary and there is no commitment required on the back of it.
If you are already an EOA member, you should have been provided with a private link to book a complimentary consultation with us. If not, don’t worry. Just book via the link below and state in the booking questions that you are an EOA member.
We look forward to speaking to you.
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