After
years of long, hard work you may have decided to sell your business to venture
out to other opportunities. Now that you've sold, you are tasked with figuring
out what to do with the profit and what to do now that you don't have your
business. Keep reading to learn what to do after you sell your business.
Maximize
Your Income From The Sale
Some
business owners receive enough income after the sale of their business to
sustain themselves for the rest of their life. A post-sale strategy that can be
helpful is to put a significant amount of money from the sale in pre-tax
accounts and convert those into Roth IRAs. Each year that you convert your
money into a Roth IRA, you can prevent reaching the higher income tax brackets.
Create
A Charitable Donation Strategy
Creating
a donor-advised fund can handle charitable contributions for several years. One
tactic called charitable bunching can allow the owner to make a significant
donation in the year of sale. You don't want to necessarily spread out your
donations because the donation is more valuable in the year of sale. A large
donation of hundreds of thousands of dollars will offset income taxes from the
sale.
Make
Sure You Have Health Insurance
You
may have had your health insurance go through your business's
employer-sponsored plan. Since you may be selling before the age of 65, you
will not qualify for Medicare, the main health insurance for retirees. First,
see if your spouse's employer has a health insurance plan that you and your
family could utilize. If this is not an option, you'll need to look for
insurance on the open market. Utilize a health insurance broker to take a look
at different plans that work best for you and your family.
Decide
How You Want To Spend Your Time
After
selling your business, you can feel lost trying to decide what to do with your
time. Now that you do not have your business anymore, what are you going to do
to fill your days? Whether it's taking a well-deserved vacation, picking up a
hobby, or starting a new business venture, it is important to decide how you
will spend your time.
If
you are in the process of selling your business or recently sold your business
and need direction, our advisors at Genesis Financial Group are here to help.
We can assist in minimizing your taxes, deciding how to spend your money, and
laying out your new chapter in life. Give us a call today to get started.
Sources:
https://www.allbusiness.com/what-entrepreneurs-should-do-after-they-sell-their-company-100364-1.html