I just had a birthday.  Yeah I know- So What….  But  celebrating a birthday when you are “Middle Age” by most definitions and or “old” by my teenage daughters definition a little introspection is done.  Fact is Im not getting any younger.  As a business broker based in Florida it also makes me think of all the business owners that are getting older and maybe are or have been ready to sell their business but the bad economy has delayed that decision. Another year passes, the “recession” is still with us and it really looks like it will be with us next year and maybe beyond.

How long can a business owner wait to sell their business?  What if this down economy last 2,5, 10 years.  I am generally an optimistic person.  I started and owned a business for 20 years and during the lean years I continued to see the glass as half full, and fought thru some difficult years and successfuly sold my business when I was ready.

I beleive there are many business owners that had planned to have exited their business by now.  Maybe they planned to sell their business and begin enjoying “that retirement thing” they have heard of, but had to delay those plans due the the reduced value of their 401k and other investments, the reduced equity in their home, and the lower revenue and profit of potentially their biggest asset- their business.  Its easy and common to say “I want to sell my business but I dont want to sell it now when my business is down”.   I understand that thought process.

But I think from here is where the thought process becomes more difficult.  Considerations should include:

• What if we remain in a prolonged recession- can I wait 3-5 plus years?
• What happens in our world of supply and demand.

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The financial planner, in this day and age, is often seen as something akin to the proverbial fox in the hen house- and may be treated likewise. The economic outlook is grim, and this doesn’t inspire confidence in clients; open any paper and dire predictions are handed out like candy at a pre-school playground. The catch-22 is that, while talking about one’s financial future is something many clients would rather avoid, now is the exact time solid financial advice is needed. This is particularly true for Baby Boomers. Here is the bad news:

• Baby Boomers, in general, don’t save the way their parents did, or the way they should. One-fourth of Baby Boomer households have so far failed to accumulate significant savings, and will most likely have to rely on government benefits to retire.
• There are currently 79 million Baby Boomers in the United States. According to the U.S. Census Bureau, only 20 % of them have a clear plan for their retirement.
• The aging of an enormous generation is combined with the lengthening of the average life span. Many Americans, therefore, expect to work longer, more often than not until death.

What is the financial planner to do in this type of climate? The task of re-creating trust, exuding confidence, providing realistic advice and even results, seems daunting; it is no wonder that many advisors are feeling the pressure. In addition, as Newsweek’s columnist Anna Quindlen pointed out in her recent article Dollars and Sense: “Many Americans don’t understand the basics of the economy”(Newsweek, 3-30-2009, p. 62). If that statement rings true for your clients, you have to address some serious issues. Don’t worry, you are not alone, and there is a solution.

Identifying your problems is essential; they may include some or all of the below:

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Retirement Is Not a Dead End
Americans today are living longer than ever and enjoying an active lifestyle at a more advanced age than their parents ever did.  A famous saying from a decade or two ago was, “Forty is the new thirty.”  When it comes to business owners, though, you might say, “Seventy is the new fifty.”  Even though the traditional retirement age is 65, many people work well beyond that, correctly believing that remaining physically and mentally sharp in their golden years will greatly improve their overall quality of life.  Others choose to work longer due to economic concerns, as retirement funds and pensions have taken a financial hit in recent years.  Embarking on a second career can be a very rewarding experience, and many retirees choose the route of buying a franchise.

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