soccerdad12 wrote:I only have about $1.5M currently. The other $2.5-$3M (after tax) would come from the sale of my business. I could sell it easily and get that amount right now. It has grown every year for 10 years and based on current conditions I don't see the growth stopping. It could be worth 50% more in 5 years or worth quite a bit less if business falls off- who the heck knows. I am making mid-high 6 figures (wages + dividends) each year in it, but taxes are killing me.
Even if the company shrunk to half its current size I would still make low 6 figures and I am not worried about it going away.
It is a matter of cash in now and take the money and run or wait it out a bit longer. I am only willing to cash out now if I can retire comfortably the rest of my life without having to work again. If I can't do that then I will wait another couple of years.
Like I said, this is the biggest financial decision on my life. I want to be very careful with it.
soccerdad12 wrote: That still wouldn't address my issue of a $3M bird-in-the hand vs the risk of something unforeseen declining the value of the business.
wesleymouch wrote:I am 57 and would like to retire. I have about a $6.4 mill net worth and we spend $70,000 per year. That does not include health insurance costs in retirement. I am struggling with whether to work another 2 to 3 years just to make sure I have enough. Personally I would be hesitant to retire that young in such uncertain economic times. I would sell the business and take the cash. I have relatives who had multimillion dollar businesses that became worthless (one is in Venezuela).
soccerdad12 wrote:To complete the loop I thought I would post back what I have decided to do.
I am going to ride it out for 2-3 more years. I will be able to have very high income for a couple more years and very sure that I can increase my personal payout on the business by an additional $1M in that time as the revenue of the business grows even larger.
One other note... I know I am very lucky to have this flexibility and I have decided as an interim step to only work 3 days / week. I think that is pretty good option while not make any final decisions either way.
Thanks to everyone for their great advice.
PS. Firecalc is about the best tool I have ever seen!
soccerdad12 wrote:The enterprise revenue is much larger than $3M / year. If I could hire someone for $250k to 100% confidently run and grow the business the way I do then I would hire them in a New York minute. Alas, that person is EXTREMELY hard to find. That still wouldn't address my issue of a $3M bird-in-the hand vs the risk of something unforeseen declining the value of the business. As mentioned, I am starting a 3 day work week in the next month and try that out for awhile.
$100k in living expenses? I plan on the wife and I traveling a good bit, many local sporting events, plays etc.....
My definition of retiring (at my age at least) is having the flexibility to do what I want without worry about money. I will start some other kind of venture and do some charity work.
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