What’s Your Exit?

Nearing retirement age as a business owner can be a stressful time filled with questions and concerns for the future of your company — and yourself — going forward. Many issues may seem to come out of nowhere, and at times it may be difficult to imagine actually moving forward with your plan to retire.

This is where a solid exit strategy comes into play. If you don’t have one, there’s no time to waste. Some business owners come up with their strategy while drafting their original business plan. But, a solid strategy can be put into place later in the game as well.

Think through the following questions when putting together your exit strategy, and talk to an exit planning professional or business lawyer to be sure your strategy will work out in the long run.

Who Will Take Over?

One of the most important aspects of a solid, successful exit strategy is figuring out who will take your place upon your exit. This is critical for the future of your business. Will it be a family member, one of your kids? What about a partner who’s been in the business for a long time? Or are you looking to sell to an outside investor?

Considering your plan for moving forward must include serious thought about who will take over and whether or not they’ll be capable of carrying out the goals you have for your business. Put some time into this as the rest of your exit strategy may depend on it.

What’s Your Goal?

Once you’ve decided who will take over, think about yourself. Where do you see yourself living out your retirement, Lititz, Pennsylvania or Los Angeles, California? Your choice of residence determines the amount you’ll need to have set aside. Don’t forget to consider taxes.

What about the lifestyle you hope to live? Would you prefer a simple, laid back retirement or a luxurious retirement traveling the globe? If applicable, consider your spouse and his or her savings, pensions and retirement plans. Will he or she be able to contribute to your retirement plan or will the entire plan rely on your savings?

By taking an honest look at the lifestyle you hope to live following your business exit, you’ll be better equipped to plan for the finances required to make that dream a reality.

Will You Remain Involved?

Are you prepared to cut all involvement from your company, leaving it completely in the hands of someone else? Or, do you see yourself sitting on the board, or even working part-time? If so, for how long?

One of the most important parts of an exit plan is taking an honest look at your goals. If you’d like to totally cut ties with the business, that’s fine; just decide that up-front and build your plan around that goal.

The choices you make now, prior to retirement, are critical and will cut down on the confusion as the time draws nearer. Answer the questions above and start considering your exit strategy today.

5 Home Improvement Ideas To Help You Retire In Style

You have waited for 40 long working years for this day. Now it is here. The golden retirement years are upon you. You have finished your last day of work. Your co-workers have thrown a party for you, complete with cake with black icing so you all can go home looking like your teeth are falling out. Now what do you do?

The first job to tackle is home improvement. You are not getting any younger. That is apparent. Therefore, time is of the essence. Your home needs some improvements in order for you to actually have a relaxing retirement. Here are a few changes you can make to keep your home stylish while you age comfortably in your retirement years.

1. Remodel the Bathroom

As you age, you may be plagued with arthritis. It would be a good idea to redo that tiny bathroom to make it more conducive to your body. Expand the room, if possible. There may be a wheelchair in your future, so be ready for it. Add grab bars to the shower, bath tub and by the toilet.

2. Add an Exercise Room

If you have an extra bedroom that you do not need, an exercise room would be a great addition. As we age, our bones become weaker. With weight bearing exercises, you can gain back some of that bone mass with daily exercise. A home gym would do the trick.

3. Landscaping

With retirement comes travel. Less time for yard work. A good landscaper can show you how to redo your lawn to eliminate some of that work. Replacing mulch with rock will eliminate yearly re-mulching. Add bushes and trees that tend to themselves and do not require constant trimming.

4. Add a Spa

You may be feeling your age already. Imagine how nice a spa would be? Customize a spa or hot tub for your back yard and feel those aches and pains diminish as the hot water swirls around you. Imagine relaxing in your spa with a good book to while away your time.

5. Patio

A beautiful refurbished patio surrounding your new customized spa will add to the ambiance of your hot tub experience. Your guests will love it as well.

Retirement is a time for fun, relaxing and enjoying your home. With these improvements, you will be well on your way to your golden years of relaxation.

Companies Still Risk Averse as Economy Grows

The financial markets are watching the recent stock market records with a great deal of interest relative to a potential renewal of significant merger and acquisition activities. This indicator that the downturn that started in 2008 is now history is only one reason for expectation of increased M&A announcements. 

The fact that many companies now carry record cash balances while they experience historically low interest rates would normally drive an interest in aggressive hunting for industry-shaping deals. This is especially the case in light of the relatively limited global opportunities for strong organic growth. 

Evaluating the reasons for so many CEOs remaining risk averse can be found, in part, in the ongoing concerns over major market-shaping events. The continuing issues of problems in the Eurozone, the U.S. budgetary fiscal cliff, and several large deals that were announced but failed to happen are examples. 

These traumas all weigh heavily on companies and their boards when any consideration of major transactions takes place. While macro factors affect every industry, there are indications that some areas are more inclined to aggressive actions than others. 

For example, chemical M&A advisors see an increasing necessity to return to acquisitions and mergers as a viable way for larger companies to achieve their strategic growth objectives. 

When evaluating the most productive ways to put their cash hoards to work in a way that will increase earnings, there are simply limited opportunities to grow organic revenue streams. Analysts are most focused on the possibility of a sustained period of market and global stability to light the fires in the M&A market segment.

Are You Mr. Handyman? Six Ways to Save Money on DIY Projects

Well-intended DIY home projects provide an excellent way to spend less on awesome upgrades to any home. The trick is to make sure the quality does not suffer and that the end result is the same high quality that a professional would deliver. While saving money is a very important reason for taking on projects yourself, it is also equally important to save money in ways that do not compromise the project results.

Below are six recommended ways to save money.

1. Obtain advice and plan the project before jumping in with both feet.

Getting advice from experts is always a good idea. Consulting with professionals before getting started can definitely save a novice from making costly mistakes. There are many unfortunate stories about projects taking on a life of their own and costing a bundle.

2. Rent expensive tools to get the best quality and to save money.

There are often many rental shops that offer high-quality tools. For example Tool Rental San Francisco loans tools out. The other benefit provided by tool rental stores is that they will also show you how to use their tools and answer questions you have. In addition to renting tools that are of the highest quality and would be unaffordable for purchase, there is free advice available.

3. Do not consider tackling plumbing or electrical issues on your own.

It is illegal and unsafe to take on these projects without a licensed professional. Considering the amount of damage that plumbing and electrical mistakes can create, it is critical that professionals be called upon to handle any related project word in these areas.

4. Get all necessary permits before starting any project.

One of the quickest ways to go over budget on any project is by paying for fines levied by municipalities that require permits for certain projects.

5. When in doubt, put quality as the top priority ahead of cutting costs.

Otherwise you might end up having to redo the project later from using inferior products that wear out prematurely.

6. Select one color of paint for the entire project whenever possible.

In any DIY project, combining a good plan with quality tools and materials will reward you with good results. It is important to avoid the impulse to get started before you are fully prepared. The rewards of a job well done and money saved are worth the effort.

Beware of Payday Loan Firms

Payday Loans Neon Sign (Photo credit: rinkjustice)

In this current financial climate, our wages barely cover the cost of our living expenses. For this reason, thousands of us now turn to payday loan firms each and every week. If managed properly, payday loans can be useful over a short period of time, particularly if you have a one off expense towards the end of the month that you are able to pay back immediately the week after. 

Should I Get a Payday Loan?

If you are drowning in a sea of debt, you may think that a Payday loan is the answer to your prayers. However, problems commonly occur with these loans, and for that reason, we must be very wary of them. For example, large loan amounts that are taken out some way before the repayment date carry a very high rate of interest. If you take these out and incur another cost during the next month and you are unable to pay off your loan as a result then you are forced to take out another loan to cover the interest rates of the one you had taken out previously. From here, the process becomes cyclical and you can soon spiral into large volumes of debt that can become impossible to pay. From here, these companies immediately consider repossession of your assets under the terms of your contract! Due to this, it is vitally important that you check the fine print details of your contract so that you know the details of your repayment agreement. 

Payday Loans-What Could Go Wrong?

If you dive in head first without fully understanding the consequences, you can wind up in serious financial difficulties, and a zero bank balance can seem a world away. We are currently seeing an increasing number of people become unable to pay their loans, and as has been mentioned previously, the consequences are dire. Due to this, the government has stepped in to try and control the loans offered by these companies.

In stepping in, the government is aiming to help those who are vulnerable to the lure of these companies and they are trying to ensure that loans are only provided to those who can repay them. 

I Got a Payday Loan-Now What?

Despite all of the work that the Government are doing, many people are still left with the financial burden of the loans they have already acquired. If you are one of these people, consolidate your loans in order to avoid excessive repayment fees.

As has been mentioned, getting a payday loan is not an issue if it is a short term payment to help with an additional cost. But, make sure you can afford it and always check the fine print before you take one out. Whatever you do, taking action is the best way to dig your way out of debt. Don’t bury your head in the sand, talk to a debt specialist today.

Is there a difference between Chapter 7 and Chapter 13 Bankruptcy?

Declaring bankruptcy is an upsetting time for anyone. You never want to be placed in this position. In the US, there are two major types of bankruptcy you might file for if your personal debts have grown out of control: chapter 7 and chapter 13 bankruptcy. A lot of people confuse these two types, and when you are facing serious financial debt, it can be very difficult to know which route to take.

Here are the major differences between chapter 7 and chapter 13 bankruptcies, so you’re aware of your options if you face insurmountable debt.

Chapter 7 Bankruptcy Explained

Chapter 7 bankruptcy is where you admit to the court you have no chance of paying off your debts, and the court discharges your debts. You’ll be completely free from debt, but the catch is your belongings and property can be distributed to creditors to pay off your debts. There are items exempt from this, but in extreme situations where you owe large amounts of money, you could lose everything.

This is the end of the line for most people. The bankruptcy mark will remain on your record for a number of years, making it almost nearly impossible to take out credit.

Chapter 13 Bankruptcy Explained

Chapter 13 bankruptcy isn’t bankruptcy in the conventional sense. While you agree you can’t pay off your debts, you don’t necessarily discharge the debts. Instead, you broker a deal in the courts between you and your creditors where you’ll create a repayment plan. Usually, you’ll have your wages garnished every month until the debt is repaid. The difference is you aren’t putting your belongings at risk unless you specify that in the terms of repayment. In some cases, you might have some of your debt discharged.

Like chapter 7 bankruptcy, the mark of a chapter 13 bankruptcy remains on your credit score for several years, making it difficult to take out new lines of credit.

What Can They Take?

In chapter 13 bankruptcy they can’t take a thing. This isn’t where you admit you have to make a fresh start. It’s simply admitting you need legal intervention to help you pay off your debts. You can agree to sell something, like a car or furniture, to make the deal better for yourself, but it isn’t always necessary.

In the case of a chapter 7 bankruptcy, they can take anything of sufficient value. A bank could seize property, but in many states your primary residence is protected. Despite the equity, it’s likely the bankruptcy could still force a sale of your home so the creditors can recover their money.

You can lose your vehicle unless the court deems it essential to your livelihood. You can also keep trade tools for your work, but this only applies to a certain value. Anything above this value can be sold.

Your furniture and personal belongings are normally exempt from being sold off to collect a debt. Expensive jewelry and large items like plasma televisions and high-tech computers can be sold if they’re worth enough.

If you’re filing for either type of bankruptcy, it’s strongly recommended you employ a bankruptcy lawyer to help with the process. Through professional legal guidance, you can get you a more favorable deal and potentially help you retain many of your possessions.

About the Author:Ashley Parker has worked with many bankruptcy lawyers and financial advisors over the years. She regularly educates people on the differences between chapter 7 and 13 bankruptcies. As one of many chapter 7 attorneys, she recommends her clients try to opt for chapter 13, if at all possible.