Your Income and Post-Transition Plans

Quick Summary
Thinking of selling your business or passing it on to your heirs? Smart planning is critical. Be sure to consider how to sell your business in a way that achieves your goals, both today and tomorrow. This three-step plan helps ensure that you’re thinking about the right issues in advance of the transition.

STEP 1: Determine What You Want/Need From the Transition

  1. Consider the costs of supporting your current and future lifestyle. Tally up today’s and tomorrow’s financial obligations.
  2. Determine what you want to do now. Retire? Start a new business? Get a job? Stay on as a consultant to the business you’re selling?

STEP 2: Base Your Income on Your Post-Transition Plans

Structure a plan to make your future vision a reality. Among your potential income sources are:

STEP 3: Prepare a Financial Plan for Your Sale Proceeds

  • First pay capital gains taxes on any cash proceeds from the sale in the year(s) in which you receive them.
  • Then protect and grow  the remaining capital, in order to provide for your future needs.
 
Need Business Insurance?

Need Business Insurance?

For more than 200 years businesses have trusted The Hartford. We can help you get the right coverage with an online quote.
 
The content displayed is for information only and does not constitute an endorsement by, or represent the view of, The Hartford.