Let’s think about what a business owner lives off of during retirement.
- If you have a big business, you probably have started some kind of employer-sponsored retirement account for you and your employees (401(k), defined benefit plan, etc.)
- If you are a sole proprietor, you may have established some kind of vehicle such as a SEP IRA.
- You may have sold your business completely, cashed out, and invested the distribution.
- You may have sold part of your business and retained a partial stake, continuing to receive some income.
- You’ll likely be eligible for Social Security benefits
Social Security can be a very important part of this equation.