How do we create wealth outside of the family business, so the next generation doesn’t have to support us when we’re ready to exit the business?
This is a question I get regularly from parents running the family business and thinking ahead to when they may want to pass the reins to the next generation. I try to educate on the options available
and things to consider early in the piece, so there’s plenty of time to put plans in motion for a financially secure future.
- Firstly, it’s important to understand what your ongoing commitments will look like when you are no longer actively working in the family business. What expenses will you have to continue to fund?
- Do you have sufficient Superannuation, and can you consider building it up to help fund your retirement.
- Is it time to consider paying yourself adequate wages or profits from the business, again ensuring there’s enough in your retirement nest egg when the time comes.
As a starting point, thinking through these matters long before you consider stepping aside in the family business will help you plan for a comfortable retirement and relieve the next generation from financial burdens.
By South Australian based Family Business Accredited Advisor
Matthew Bartemucci | Hood Sweeney
Matthew Bartemucci is a chartered accountant with 20 years of experience, specialising in accounting and business advisory for family businesses, small to medium-sized enterprises and high net worth individuals. He is also an accredited Family Business Adviser with Family Business Association.
Client focused, dedicated, and understanding, Matthew specialises in the areas of business financial and management accounting, taxation and compliance, business strategy, asset protection, succession planning and governance for his clients.
