Guest post by Lydia Chan of alzheimerscaregiver.net When you hear an Alzheimer’s diagnosis, it’s natural to feel overwhelmed with change, fear and uncertainty. While you might feel a sense of relief in finally getting an understanding of why you’ve been feeling so out of sorts lately, that moment is often overshadowed by the long-term reality of this progressive disease. There’s going to be a lot to consider and prepare for in this journey with Alzheimer’s, and health care is going to be at the top of your list. Here are a few answers to three of the most common, and most important, questions about the health care costs associated with Alzheimer’s disease. What will Medicare actually cover? Since the vast majority of people diagnosed with a cognitive disorder like Alzheimer’s or dementia are over the age of 65, it’s important to know what Medicare will and will not cover. For example, Medicare will only cover hospice care if a doctor has determined the patient is near the end of their life. But hospice can provide much more care than that. Often described as comfort care, hospice is an effective way for people with Alzheimer’s to manage their chronic pain. In those situations, as well as others that Medicare won’t cover, consider looking into Medicare Advantage plans. Medicare Advantage plans provide the same coverage as Medicare Parts A and B, but with additional benefits such as prescriptions, dental, vision, fitness services, and caregiver support. How can I cover out-of-pocket expenses? There will be some costs and fees for Alzheimer’s treatment and care that you will have to cover yourself. Consider selling your home and downsizing if you want to cover the cost of in-home care or moving into an assisted living facility. If you have dividends from investments, properties you no longer use or other assets you can sell, putting those resources aside now for future long-term care can save you time and money later. If you are savvy about your finances, you can avoid having to sacrifice quality of care for cost. For example, you can sell a life insurance policy for a cash payout, which will allow you to pay for a caregiver, medical equipment or home modifications not covered by your insurance. At this point, you may want to consider the future financial well-being of loved ones as well. It may not be easy to think about your funeral, but the average funeral costs $7,000 to $10,000. This can be a significant financial burden for family members to take on, but if you purchase burial insurance, you can pay for the costs of your funeral and even leftover medical bills and debts. How do I find good and affordable care? You have a lot of options when it comes to finding care to help you manage your Alzheimer’s. There may be a family member who is willing to take on the role of caregiver, which is a very rewarding but also very stressful endeavor. This may be the most affordable option, but you should suggest some training for your companion, such as CPR, managing the difficult behaviors associated with Alzheimer’s and understanding the body’s aging process. You can also hire a professional caregiver, a nurse or nursing assistant with experience working with cognitive impairments. You’ll want to interview candidates, check references and make sure this person is a good fit professionally and personally. There can be some unexpected costs here, such as food, mileage reimbursement and paid time off. A third option is to tour assisted living facilities to find one that has a good reputation for Alzheimer’s care. When it comes to looking at a facility, often the most expensive option, you’ll need to find a balance between comfort and affordability. Typically, however, when moving into a center or a home, you have a house or other property you can sell to offset the annual and monthly costs. Even in the early stages of Alzheimer’s disease, memory loss and confusion can make decisions about care difficult. All of these changes can add more stress, making your illness harder to manage. Stay calm and remember that you are not alone. About 5.5 million people in the United States have been diagnosed with Alzheimer’s and more than 5 million of those are over the age of 65. These decisions and changes are hard, but not impossible. Planning and preparing now— with loved ones if you can— is your best bet for a comfortable future. Final Thought. If you are looking for advice in preparing for all stages of retirement, the Peak Wealth Planning team can assist. - - - - - - - - - - - - - - - About the Author Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning provides concierge services to meet your wealth management needs. Services include: financial planning, investment management, esop diversification, retirement income, insurance, and estate planning advice. Peak Wealth Planning is a fee-based financial advisor based in Champaign, Illinois, and Fraser, Colorado.

Every year I enjoy attending the annual convention for the Illinois Chapter of The ESOP Association. In this particular year, the convention was held right in Champaign, Illinois, at the I Hotel. I love getting the opportunity to speak with employee owners, learn about their companies, and gain a sense of what questions are baffling them as they edge towards retirement. Employee owners 5-10 years from retirement have common questions about the process of leaving their company and gaining their retirement paycheck. Here are the answers to the top 4 questions asked by employee owners nearing retirement. When should I diversify my company stock? How do I diversify my company stock? At what age should I start taking social security payments? How much retirement income do I need each month? 1. When to diversify company stock? In terms of when to diversify company stock, a common mistake is if the stock is doing well to keep all of the company stock as long as possible. If you have enough investments in your ESOP and 401k to generate sufficient retirement income, then it is prudent to diversify your concentrated company stock at each opportunity. Many employee owned companies allow for diversification of 25% of stock at age 55, another 25% at age 60, and then if you retire at age 64 for example, distributions of the remaining stock of approximately 20% a year spread over five years. 2. How do I diversify my company stock? Your company human resources department can guide you on how to request diversification of your stock. Usually there is a web site you login to make this request or a form you fill out. Your HR department or ESOP administrator can let you know how many shares of stock you are eligible to diversify. When you elect diversification, your shares are sold back to the company, and a check is mailed to you or your individual retirement account custodian. If the check is sent to you, you will pay tax on the distribution. If the check is paid to your IRA, you can delay the tax until you withdraw income for retirement expenses. You can set up an individual retirement account (IRA) and select investment funds consisting of stocks, bonds, real estate, and cash to meet both your long term income need and your wealth preservation needs. Having the right mix of stocks to continue growing your wealth to protect against inflation is important. You should work with a financial adviser to find the mix of stocks, bonds, real estate, and cash that is appropriate to meet your retirement income need. Continue learning more about ESOP diversification and distribution. Click here to access the Peak Wealth Planning white paper Demystifying the Diversification of Your ESOP Holdings. 3. At what age should I take social security? You can go to SSA.gov and use the social security benefit estimator to project your social security income when you turn 67, which is full retirement age for most retirees. If you take social security early at age 62, your monthly income will be significantly reduced -- usually by hundreds of dollars per month. If you delay social security until age 70, your monthly income will be much higher -- typically hundreds of dollars per month. If you have sufficient income to cover your expenses until age 67 or 70, waiting to take social security can be financially beneficial. Your financial adviser can help you determine what age is best for you to start social security payments. 4. How much retirement income do I need each month? Take a look at your monthly paycheck, look at the amount you deposit to your checking account each month. If that monthly deposit, or 'take home pay,' is just covering your living expenses without much leftover, then your monthly retirement income need is equivalent to your current take home pay. This after tax take home pay is the amount you should work with your financial adviser to plan to generate from your investments. If you have a major expense such as a mortgage that will end during retirement or you move to an area with a lower cost of living, you may be able to live on less retirement income from your own investments. If you have rental property income, your spouse has a pension, or you expect an inheritance, you may be able to live on less retirement income from your own investments. A financial adviser can create a financial plan to determine whether your investments and different sources of income are sufficient to meet your living expenses during retirement. What to do next: Gather up your social security benefit estimate, IRA, 401k, and ESOP statements, and schedule an appointment with a financial advisor. Your financial adviser can help you understand your diversification options and forecast whether you have sufficient investments and social security to meet your retirement income needs. He can also help you diversify your company stock into an IRA with a comfortable mix of stocks, bonds, and real estate to meet your goals. Final thought. Are you comfortable with your progress towards retirement? How about helping future generations meet their financial goals? If you have more than $2 million saved and need help from a wealth manager, the Peak Wealth Planning team can assist. Continue learning about ESOP: How Peak Wealth Planning helps ESOP participants Our Collection of Resources Specifically for ESOP participants - - - - - - - - - - - - - - - About the Author Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning provides concierge services to meet your wealth management needs. Services include: financial planning, investment management, esop diversification, retirement income, insurance and estate planning advice, Peak Wealth Planning is a fee-based financial advisor based in Champaign, Illinois.

At Peak Wealth Planning, the security of your personal information is very important to us, and we want to help you keep it protected. We recently discovered a text message scam and wanted to make sure you are armed with everything you need to know to avoid falling victim to it. This scam involves sending text messages alerting you that your credit card account has been restricted and that you'll need to call a phone number to regain full account access. Once you call the provided number, the scammer will attempt to obtain sensitive information, such as your: Date of birth Social Security Number Mother's maiden name Card account number Card expiration date 3-Digit security code If you receive a suspicious communication that appears to be from your credit card company trying to persuade you to provide the type of personal information listed above, please call the number on the back of your credit card to verify if it is legitimate. Awareness and education are your best defenses against scams Always proceed with caution and confirm requests are legitimate before responding to someone asking for personal information, money, or gift cards to resolve an urgent, yet fictitious scenario — such as a block on your account or the threat of an arrest. Please note, it is common for scammers to pose as a person you can trust, such as a family member, government official, someone you do business with, or a charity. Please visit the U.S. Federal Trade Commission's Identify Theft Info page to learn more about ways to protect your personal information. Do you think that you've fallen victim to a scam? If you think you may have been a victim of a scam or that your personal information has been compromised, you can place a fraud alert with your credit bureau by contacting one of the major credit reporting agencies. Experian: 1-888-397-3742 TransUnion: 1-800-916-8800 Equifax: 1-800-685-1111 You can also visit the U.S. Federal Trade Commission's Consumer Information to sign up for scam alerts, get information on the latest scams, and learn how to prevent yourself from becoming a victim. - - - - - - - - - - - - - - - About the Author Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning provides concierge services to meet your wealth management needs. Services include: financial planning, investment management, esop diversification, retirement income, insurance and estate planning advice, Peak Wealth Planning is a fee only financial advisor based in Champaign, Illinois.

Guest post by Karen Weeks of Elder Wellness As you are prepare to enter your retirement years, you have much to look forward to. Without the nine-to-five burden, you will have more free time on your hands and can put greater effort into enjoying friends, family, and hobbies that you love. You still need money to maintain your lifestyle, however, and you may be worried that your funds will run dry when you no longer have a fixed income. This is a common fear: Surveys show that the majority of older persons are concerned that they will run out of cash during their retirement years. Luckily, with a bit of preparation and oversight, you can make sure this doesn’t happen to you. Follow the 4 tips below to protect yourself financially in the years to come. Tip 1: Get a Handle on Your Monthly Expenses If you want to tweak your budget, you need to figure out what your current earning and spending habits look like. Begin by creating a monthly budget. Collect your financial statements, list your expenses, and setting your goals. This allows you to see where your money is going and areas where you can cut down. For instance, if you have a public transportation pass that you pay for but rarely use because you are retired, this is an expense you can likely save on going forward. You can also reconsider “luxury” costs like going out to eat. Tip 2: Downsize Your Home to a Cheaper Property If you have a large family home and your kids are long gone, you might consider moving to a smaller property. You can sell the house and use the profits to fund the down payment you will need for a new place. Downsizing also has other benefits for seniors: It means you will spend less money and time on home maintenance. When looking for a new property, you can further focus on finding the perfect real estate for aging in place; for instance, you can opt for a one-story model that nixes the need to climb stairs. Tip 3: Hold Off on Collecting Social Security Social Security benefits are designed to keep people afloat after they retire. You might want to cash in on these advantages as soon as possible. If you do this, however, your benefits will be reduced by 25% compared to if you hold off claiming benefits until after the full retirement age of 66. And, if you delay claiming your social security benefits until age 72 you will get an extra 32% monthly income. Tip 4: Make the Most of Medicare Health care is one of the most significant costs that older persons have to deal with. You can save significantly in the big picture by switching to a Medicare Advantage plan. The United States Medicare website explains how it's done. Medicare Advantage covers additional fees, such as certain preventive care procedures: For instance, Anthem provides expanded coverage for prescriptions as well as dental and vision services. Since it’s often cheaper to address healthcare problems when they are in their early stages instead of paying for large-scale treatments down the road, this is sure to be a monetary boon. Final Thought. Follow these tips and you will be on your way to enjoying retirement. They don’t require a lot of energy or time to implement but can spare you the stress of financial worries as you get older. This doesn’t just mean more money in your pocket, it also means peace of mind — which you can’t put a price on. With your financial security in retirement secured, you can focus on other aspects that are essential to happiness in retirement. If you are 60 or over, have $2 million or more in investments, and think you may need assistance with any of the areas above, the Peak Wealth team is here to help. - - - - - - - - - - - - - - - About the Author Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning provides concierge services to meet your wealth management needs. Services include: financial planning, investment management, esop diversification, retirement income, insurance, and estate planning advice. Peak Wealth Planning is a fee-based financial advisor based in Champaign, Illinois, and Fraser, Colorado.

I was asked by a friend why there are more than $17 trillion of negative yielding global bonds. A negative yield means investors pay the government or a corporation to 'safely' hold their money. Investors in Germany, for example, are willing to pay a premium -- and ultimately take a loss -- to get the safety of high quality government or corporate bonds. If you purchase 100,000 euros of German government bonds, you 'pay' $674 euros a year for the government to hold your money for 10 years. By some measures, 17% of the total global bond market is paying negative interest rates to investors ($17 trillion of approximately $100 trillion). This problem for investors could get worse before it improves. The economies of Japan, the Euro Zone, and China have all experienced significant slowdowns. The data in the U.S. are mixed, especially given record levels of student debt and the trade war with China. When economies slow down, central banks and policy makers call for further interest rate reductions instead of spending government money (aka fiscal stimulus) or cut taxes. How did we get here? In response to the 2009 financial crisis the European Central Bank, the Bank of Japan, and the U.S. Federal Reserve slashed short term interest rates to basically zero and purchased trillions of dollars of longer maturity bonds to drive interest rates across maturities (1 year, 5 year, 10 year, etc.) to historic lows. Following the financial crisis, major corporations became quite profitable (in part because of ultra-low borrowing costs) and have built up record amounts of cash on their balance sheets. Corporations do not want to invest in risky stocks, instead they hoard cash to buy back their own stock, pay dividends to shareholders, invest in research and development, or make major investments in factories or equipment. Sitting on record levels of cash, a corporate treasurer whose CEO and board members want it safely invested, has very limited options. So, the treasurer buys the safest government bonds and the highest rated corporate bonds she can find. Or, she purchases money market funds that essentially buy the same debt with shorter maturities. In addition, pension funds are willing to pay more for long-dated bonds and accept lower yields to match future retiree payouts (liabilities). Finally, add in aging populations across the globe (baby boomers in the U.S. for example) who are reducing risk by selling equities and purchasing government and corporate bonds. The 'pile-on' effect of central banks, corporate treasurers, pension funds, retirees all needing a safe place to store ridiculous amounts of cash has overwhelmed demand causing prices for bonds to bid up so high as to make the return (annual % income or 'yield') to investors negative. Where are U.S. rates today? In 2011 2 year rates in the U.S. dropped to near zero, around 0.15% and stayed extremely low until the Federal Reserve began raising rates at the end of 2015. Recent 2 year rates in the U.S. were 1.47% and 10 year rates also touched that level (week of 9/3/2019). While negative 10 year treasury rates seem a long way off --- bond prices would have to rise almost 20% -- I doubt that investors in Germany thought they would be paying the government to hold their cash. And, the Federal Reserve in the U.S. is poised to lower short term rates for the 2nd time during 2019 this week. As an investor what can I do? Consider your future cash flow needs and decide whether you can accept today's interest rates (at different maturities) to meet your needs. You may want to consider how to ladder a portfolio of bonds or ETFs to meet your spending needs. Or, if you are saving for decades into the future, you could review your stock/bond mix and the average maturity of your bond investments. Finally, you might talk with your financial adviser about whether it is a good idea to stay in lower risk governments bonds or invest in higher risk corporate bonds. You may consider substituting some alternative investments (for example, hedge funds with returns less correlated to the equity and bond market) or equities for a portion of your bond portfolio. Your response depends on your investment risk tolerance and individual goals. Final thought. Take advantage of Peak Wealth Planning's Riskalyze software, which will help identify your risk tolerance. If you are 60 or over, have $2 million or more in investments, and think you may need assistance with any of the areas above, the Peak Wealth Team is here to help. - - - - - - - - - - - - - - - About the Author Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning provides concierge services to meet your wealth management needs. Services include: financial planning, investment management, esop diversification, retirement income, insurance, and estate planning advice. Peak Wealth Planning is a fee-based financial advisor based in Champaign, Illinois, and Fraser, Colorado.

Concentrated stock is when you have a large portion of your investment portfolio in a single stock. Company founders, board members, senior management, and ESOP participants may receive stock in the company as a benefit of employment. Even some investors can amass shares over time or inherit a large position in a single stock. These large holdings can create unwanted risk to your portfolio. Even if this stock is doing great in the market, you may need to consider diversifying. Let's take a look at how a wealth in concentrated stock could sway with the following scenario. At the beginning of the year, you reviewed your net worth and your financial goals with your advisor. Your family wealth is $6.5 million, with $3.5 million invested in a single stock that you received from being a tech entrepreneur. That single stock has made you wealthy beyond imagination. Your single stock has ripped higher than the market for the past 10 years and you feel great. Yet, your financial advisor says you should reduce the risk of having more than 50% of your wealth in a single stock. Why is that? In this scenario, you may be planning to retire in a year, potentially in 5. And, your investments currently support your retirement lifestyle goals of traveling significantly during your go-go years and continue to grow your art and wine collection. Your advisor reminds you of Enron. Enron shares gained 27% a year in the 1990’s, outpacing the broader market 14% a year. However, while Enron stock may have made everyone rich, it also wiped out with a 100% loss from January 2001 to January 2002 ($90 a share to zip). More recently, General Electric has fallen from $30 in December 2016 to $10 in May 2019. This is a 67% loss within 30 months. A good financial advisor will ask you if you could stomach the risk. Could you stomach a 67% decline on your $3.5 million single stock position? It would be worth $1.2 million after that decline, so of course not. You would go crazy. And, that 67% decline might put a crimp in your overseas travel plans. So what should you do? Consider the following three options and discuss the pros and cons of each with your trusted financial advisor. Strategy #1: Create a multi-year plan and commit to selling shares of your concentrated stock. I know it’s painful to pay capital gains tax of 20%. But consider the benefits of having ‘sleep at night’ protection with investment grade bonds to diversify the overwhelming stock market risk on your balance sheet. Strategy #2: Get a costless collar. Is that for your new dog? No, it is an option strategy that allows you to limit losses on the stock you are in love with to no more than 13% down while participating in appreciation up to 9%. This ‘collars’ your single stock value from -13% to + 9% (results vary by individual stock and market conditions). If the CFO of your beloved company turns out to be running an off balance sheet ponzi scheme, you will thank your advisor. Oh, and by the way, 9% up isn’t too shabby. Strategy #3: Exchange the return of your single stock for the Russel 1000 or the S&P 500. You can do this with a liquid or an illiquid exchange fund. The illiquid approach: You contribute a single stock and get back 30-35 stocks in return seven years later. You should gain large stock market appreciation minus about 1% in fees. The problem with the illiquid approach is foregoing your dividend and you don’t know what stocks you will get back in seven years. The liquid approach: Your advisor employs a costless collar to protect your single stock. Then he wraps options that participate in the upside of the S&P 500 as well as downside in that index around the collar. There are some costs to this strategy, but you receive immediate protection for your concentrated position and diversification to the broader large cap stock market in the event of a major market rally or a market decline. The strategy is liquid, meaning you can exit the strategy or sell your single stock at any time. In other words, you maintain control. Plus, with the liquid exchange fund strategy you keep your dividend. Final thought. If you don’t want exposure to a broad market decline, particularly in the 10 years leading up to retirement, consider that multi-year plan to sell your concentrated stock position and buy investment grade bonds. If a single stock made you wealthy enough to meet your lifestyle spending, the Peak Wealth Planning team can help you preserve your wealth by limiting or diversifying equity risk. - - - - - - - - - - - - - - - About the Author Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning provides concierge services to meet your wealth management needs. Services include: financial planning, investment management, esop diversification, retirement income, insurance, and estate planning advice. Peak Wealth Planning is a fee-based financial advisor based in Champaign, Illinois, and Fraser, Colorado.

To create a large investment portfolio and gain higher investment returns, you need to save money regularly, invest consistently, and learn to stay the course for as many years as it takes. When you invest your hard earned cash, there are 2 questions you should ask. Question 1: When do you need this money back? This is your time horizon. Is it next week, one year, or ten years or more? In the investing world, long term is generally 10 years or more. Question 2: How much risk can you take? Risk is usually thought of as market value fluctuation. What does that mean? If you invest $1 million in a stock, today it could drop down to $800k next month. That is a 20% fluctuation down. This is not uncommon with an individual stock. Alternatively, that stock could increase to $1.2 million. How does this make you feel? Does a $400k range from low to high churn your stomach? Or, does a long term average return of perhaps $70k a year over 15 years on your original $1 million investment sound compelling even with those large changes in value. What is your risk tolerance? For most individuals, the risk isn't the actual market value fluctuation, but whether they call their financial adviser in Champaign, IL and ask him to sell the investment after it drops to $800k. If your wealth manager does his job, he will ask you to recall the conversation about market value fluctuation (also known as risk) we had before your initial investment. And, you will recall that conversation and remember the 'safe cash' your investment adviser had you set aside in your savings account. Then you will go back to your golf game, wine magazine, or road trip and not take any action. Why? For most individual stock investments, a time horizon of 10 years or more is recommended. This long time horizon improves your chances of a higher return. What if you have saved up $250,000 to pay college tuition for your kids during the next four years? Well, that means you have a time horizon with obligations during years 1, 2, 3, and 4. Due to that short time horizon, and the necessity to pay those college bills, you probably don't want to risk 20% market value changes. Your financial adviser will suggest a conservative investment. Perhaps one where the value cannot go down, but you may earn a 2% return each year ($2k per $100k invested). Your wealth manager in Champaign, Il may advise you to keep $50k in a checking account and then invest in 4 certificates of deposit (CD's) with $50k each maturing at the end of the next four years. Balancing Risk within your Time Horizon For obligations that are near term and cannot be avoided, you may desire a lower risk and accept a lower investment return. For obligations that are 10 years or more in the future, accepting higher changes in market value can lead to higher investment returns. In addition to time horizon and risk, you should always check with your financial planner or wealth manager to find out if your investment has liquidity. Liquidity is the ability to immediately sell your investment and convert it back to cash. There are some investments that may have a lock up period, meaning you can't get your cash back for at least two years or longer. In some cases, this illiquid investment can earn you a higher return, however you need to be certain that you understand at what point your investment can be sold and when get your cash back. There are some investments such as very risky bonds where the liquidity may be impaired, meaning there are no buyers for the bond today. But, there might be in three months. Selling an illiquid investment can lead to a higher loss or higher transaction costs. Final thought. Make sure your investment advisor discusses time horizon, liquidity, and risk in the context of your financial plan and potential investment returns. Have this conversation before you make an investment decision. Need a second opinion? The Peak Wealth Planning team can assist. - - - - - - - - - - - - - - - About the Author Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning provides concierge services to meet your wealth management needs. Services include: financial planning, investment management, esop diversification, retirement income, insurance, and estate planning advice. Peak Wealth Planning is a fee-based financial advisor based in Champaign, Illinois, and Fraser, Colorado.

You have worked hard to build your business and spent a great deal of effort to attract talented employees, take care of your customers, and support your family and community. Now you are considering a sale. Here are three aspects to consider: How will you spend your time after selling your business? Do you want to take some 'chips off the table' and set aside some of your wealth from the business while still being involved to serve your customers and collaborate with your employees? Or, do you want to exit completely and start another career or business? Or, are you ready to stop working and volunteer in your community, travel, or spend more time with family? Many successful business owner's lives are so intertwined with their business, that it can be challenging to go from 110% to zero. Consider your transition options and how you will feel about working less. One option could be serving on a non-profit or for-profit board to stay intellectually engaged. Have discussions with trusted friends, advisers, family members, and colleagues before planning your exit. What does a sale look like? Do you want to sell to a private equity firm or a competitor and maximize your proceeds? Have you considered what that might mean for your employees or your local community? Would you like to sell to your management team, key employees, or family members? Do those folks have the resources to purchase the firm? Are you willing to finance part of a sale? Or, do you prefer to walk away 'clean' with your proceeds? Depending on the revenues, profits, and industry of your business, each of these may be a viable avenue. One often overlooked exit strategy (if you have 20 or more employees and stable or growing profits), is a partial or full sale of the business using an Employee Stock Ownership Plan (ESOP). There are also options available from family offices that are looking for minority investments in well run businesses that will keep management, whether yourself or key team members, in place. Will the proceeds to support your lifestyle needs and core values? Your financial adviser and accountant can determine the after-tax and post debt re-payment proceeds you can expect from a sale. Your financial adviser or wealth manager can project the income you can expect from investing in a portfolio of stocks, bonds, cash and real estate; advise on strategies and timelines for donating money to the charity of your choice; and navigate what trusts to set up for your children or grandchildren. One important consideration is whether you will need proceeds from a sale immediately to support your living and enjoyment expenses, or whether the proceeds will be set aside for future generations or a charitable cause. How to get started: Develop a plan with your financial advisor. A trusted advisor will help clarify your financial and lifestyle goals. Your advisor can assess whether the proceeds from a sale will support your lifestyle goals. He can help evaluate whether the buyers you consider align with your company and business values. A good financial advisor can help you understand the pros and cons of sale options whether: a private equity buyer, strategic acquirer, family office, investment bank or broker, or an ESOP transaction. Leading up to and after the sale, your advisor can assist you with estate planning, investment, and family wealth preservation strategies to meet your asset protection, philanthropic, and financial goals. Final thought. Selling a business can be one of the most important events in your life. If you, or a friend, is interested in starting a conversation about business exit strategies, the Peak Wealth Planning team can assist. Continue learning about ESOP: How Peak Wealth Planning helps ESOP participants Our Collection of Resources Specifically for ESOP participants - - - - - - - - - - - - - - - About the Author Peter Newman is a Chartered Financial Advisor (CFA) and president of Peak Wealth Planning. He works with individuals nationwide that have accumulated wealth through company stock, ESOP shares, real estate, or running a business. Peter applies his unique background to help clients achieve their specific goals and enjoy peace of mind. Peak Wealth Planning provides concierge services to meet your wealth management needs. Services include: financial planning, investment management, esop diversification, retirement income, insurance and estate planning advice, Peak Wealth Planning is a fee-based financial advisor in Champaign, Illinois.