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David P. McCabe,
WMCP®, ChFC®, CLU®
Financial Planner
Nathaniel D. High, RICP®
Financial Planner
Nicholas J. Over, CFP®
Financial Planner
Sara E. Martin
Client Relations Manager
Jennifer A. McCabe
Client Relations Specialist
jennifer.mccabe@prudential.com
Centuria Financial Group
2333 Baltimore Blvd Suite B
Finksburg, MD 21048
Phone: 443-952-7232
May/June 2023
Retirement Planning: The Right Approach
As a business owner, you might be counting on the sale of your business to fund your retirement. That expectation may lead you to believe that increasing your business’s profitability is the key to a lucrative sale. But, according to the Exit Planning Institute,* up to 80 percent of businesses don’t sell — or sell for less than expected — leaving most owners unable to cash in on their business’s profits and potentially depriving them of retirement income.
Value Over Profit
The key to positioning your business for an eventual sale lies with increasing the business’s intrinsic value. Instead of focusing only on growing your profits, shift some of your focus to making improvements in these crucial planning areas: sales, marketing, leadership, people, operations, finance, and legal. While there are no guarantees, building intrinsic value may help make your business more attractive to potential buyers.Retirement Planning
Funneling most of your profits back into the business can provide you with a substantial income as long you’re still working. But, when you eventually step away, you run the risk that, without a sale, you will be left with no money to fund your retirement. Investing a portion of your profits outside of your business can provide diversification** and offers a way to save for retirement that is distinctly separate from, and not affected by, business performance. Additionally, investing some of your profits in tax-favored retirement accounts may reduce your immediate tax obligation and, in some instances, move you into a lower tax bracket.A Strategic Plan
Business owners can benefit from not thinking of business planning as an isolated activity. Combining personal financial planning with business planning can put business owners on the right path for reaching both business and retirement goals. Your financial professional can help you devise a strategic plan to help increase wealth and build your retirement savings.* The Institute provides education and resources to professional business advisors.
** Diversification cannot eliminate the risk of investment losses. Past performance won’t guarantee future results. An investment in stocks or mutual funds can result in a loss of principal.
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Centuria Financial Group is not affiliated with Prudential Financial. Centuria Financial Group sells insurance products of Prudential Financial's affiliated insurance companies in addition to products of non-affiliated insurance companies. Centuria Financial Group is authorized to sell and service certain insurance products of Prudential Financial companies as well as use this material. Centuria Financial Group and its representatives do not give tax or legal advice. Please consult with your own advisors regarding your particular situation. Offering financial planning and investment advisory services and programs through Pruco Securities, LLC (Pruco), under the marketing name Prudential Financial Planning Services (PFPS), pursuant to a separate client agreement. Offering insurance and securities products and services as a registered representative of Pruco, and an agent of issuing insurance companies. 1-800-778-2255. Sara E. Martin and Jennifer McCabe are employed by David McCabe and not The Prudential Insurance Company of America or its subsidiaries.
This newsletter is general educational information provided by a Prudential Financial Professional and is not intended to market or sell any specific products and services, but rather provide general information about the subject matter covered only.
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