Four Main Drivers of Financial Planning

As the majority of business owners start to strategize and plan their exit or transition from their business as part of their retirement planning, they should consider the 4 main drivers of retirement financial planning. These drivers are (1) age at retirement; (2) spending at retirement; (3) current assets; (4) savings until retirement.

Age at Retirement

The first driver for business owners is determining when the right time is to retire and exit or transition their business. Similarly, knowing their retirement age allows them to properly forecast how much they will need to provide for themselves and their family during retirement.

Spending at Retirement

The second driver for business owners is forecasting what their spending and financial needs will be during retirement. Accounting for your lifestyle and the financial needs of you and your family at retirement enables and empowers business owners to take control of their financial future. As a majority of a business owner’s wealth will likely come from the sale of their business, understanding the current value of the business and the amount of money they will need for retirement allows a business owner to make strategic moves to ensure a prosperous financial future. Similarly, working with your team of professionals to structure the sale of your business

Current Assets

The third driver for business owners is analyzing their current assets. Knowing the value of their current assets and what percentage of their current assets are directly tied to their business is very important in crafting a holistic financial plan. Every business owner, prior to planning the sale or transition of their business, should know their current assets and the relative liquidity of their assets. Effective exit planning relies on putting the business owner in the best possible financial position for their retirement and accounting for their current assets is a pivotable consideration.

Savings Until Retirement

The fourth driver is accounting for the rate and the amount that a business owner can save leading up to retirement and the sale or transition of their business. As business owners plan for retirement and the sale of their business, knowing the rate in which they can save is an important analytical data point that can assist in creating a holistic financial plan that adequately provides for themselves and their family in retirement.


As these four main drivers of retirement financial planning will impact both the timeline and the strategy that a business owner uses in strategizing their exit plan or transition it is important to keep your team of professionals on the same page and working together to provide complete advice as you move towards retirement.

The legal team here at Jacko Law Group, PC (“JLG”) is experienced in advising business owners through the sale and transition of their businesses. Further, JLG with their Certified Exit Planning Advisor, is able to provide support and coordination among all your professionals to ensure that you have a complete Exit Plan that seeks to maximize the value of your business upon its sale or transition and provide for the financial needs of you and your family.

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