The dream of running your own business can be a powerful one. Unfortunately, it sometimes blinds people to the world’s ugly realities.
The odds of success aren’t great, of course – but even first time entrepreneurs know that on some level. Startlingly few of the ones who do make it think forward to their golden years, however, which could present a big problem when they’re ready to retire.
Those who do consider retirement options often consider selling their company as the sole exit strategy, and investment option. A big buyout, after all, is likely to top whatever they can squirrel away in IRAs and mutual funds. Reality has a way of squashing those dreams, though.
Dun Bradstreet reports small business failure rates rose by 40 percent between 2007 and 2010 – and some states had it even worse. California, for instance, had a failure rate of 69 percent. For owners who were counting on those companies to set them up for life, it’s a devastating figure.
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“It’s been my experience that most entrepreneurs think of their business as their retirement,” says Rick Rodgers, author of “The New Three-Legged Stool: A Tax Efficient Approach to Retirement Planning” and president of Rodgers Associates. “At some point, they think ‘I’m
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