Trend of Business Owners Selling Companies Before Traditional Retirement Age

Julie Ellenbecker-Lipsky, president and senior wealth advisor at Ellenbecker Investment Group, reports seeing an increase in business owners between the ages of 45 and 60 who plan to sell their companies before traditional retirement age. For these owners, the financial planning required is distinct from traditional retirement planning.

When an owner exits a business early, their primary income source may disappear decades before Social Security and Medicare become available. This necessitates financial independence planning, as investment assets must support a much longer period of life, and health insurance costs can become a significant expense.