{"id":38,"date":"2016-08-31T09:04:31","date_gmt":"2016-08-31T09:04:31","guid":{"rendered":"http:\/\/investdifferently.ca\/blog\/?p=38"},"modified":"2016-08-31T09:05:25","modified_gmt":"2016-08-31T09:05:25","slug":"retiring-successfully-avoid-these-5-mistakes-franchisees-often-make","status":"publish","type":"post","link":"https:\/\/investdifferently.ca\/blog\/retiring-successfully-avoid-these-5-mistakes-franchisees-often-make\/","title":{"rendered":"Retiring Successfully: Avoid These 5 Mistakes Franchisees Often Make"},"content":{"rendered":"<h2><em> 1. No Succession Plan<\/em><\/h2>\n<p>A succession plan will not only give you clarity as to when full retirement is possible, but it will also help ensure you get the retirement you want. With even a basic plan as a foundation, you can begin to build the rest of your retirement strategies on top of it \u2014 and with a successful sale, you can also get a head start on the funding you need to lead the lifestyle you want. Be sure to consider the following:<\/p>\n<ul>\n<li>Hoping your children will come in to run the franchise without discussing the transition in detail, is not a succession plan. Start having these discussions early to ensure they will be up to the task once you\u2019re ready to retire.<\/li>\n<li>Talk to your business planner or advisor, and make sure your succession plan aligns well with your financial goals and strategies.<\/li>\n<\/ul>\n<h2><em> 2. Underestimated Lifestyle Expenses<\/em><\/h2>\n<p>While your business is active, it provides many benefits around taxes, income and cash flow that help you to support your lifestyle. A lot of newly-retired business owners find themselves in a sudden cash pinch in retirement because they have not planned their new sources of income to accommodate the new costs of their lifestyle. Be sure to consider:<\/p>\n<ul>\n<li>Spousal income\/pension<\/li>\n<li>CPP and its tax considerations<\/li>\n<li>RRSPs and other registered accounts<\/li>\n<li>Investment income<\/li>\n<li>Your savings and drawdown strategy<\/li>\n<\/ul>\n<h2><em> 3. Unprepared for Sudden Changes in Health<\/em><\/h2>\n<p>Your life, goals and needs are constantly changing, whether you\u2019re working or retired. For many retirees, some of the biggest unplanned-for expenses result from health-related events or changes in personal health status that require ongoing attention. So consider how well prepared you may be in the case of:<\/p>\n<ul>\n<li>Forced retirement due to illness<\/li>\n<li>Health care costs for a long-term illness<\/li>\n<li>Nursing home or home care expenses<\/li>\n<\/ul>\n<h2><em> 4. Investment Returns Are Too Low<\/em><\/h2>\n<p>From now until retirement, one of your most immediate priorities should be growing your net worth. The exact risk\/reward balance you need to reach depends wholly on the details of your personal situation, but many business owners are stuck with a portfolio that either generates very little, or risks too much. Your growth plan should address:<\/p>\n<ul>\n<li>Your capacity for risk<\/li>\n<li>All financial structures, including holding companies, trusts, registered accounts and brokerage accounts<\/li>\n<li>Your income needs in retirement<\/li>\n<\/ul>\n<h2><em> 5. Not Enough to Do<\/em><\/h2>\n<p>This is an obvious one, but nonetheless many people do not sufficiently clarify what sorts of things will fill their days in retirement. Without a clear picture of your lifestyle, it\u2019s difficult to set appropriate income and savings goals, but it\u2019s also a precursor to overspending. Dig deeper and ask yourself:<\/p>\n<ul>\n<li>What is most important to me in life, and how can I use my time in retirement to pursue or develop this?<\/li>\n<li>What kind of hobbies or interests will I have the freedom to engage in once I retire?<\/li>\n<li>Will I want to change my living situation by selling my home, purchasing secondary properties or travelling more?<\/li>\n<li>Will I want to work part-time in retirement?<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>1. No Succession Plan A succession plan will not only give you clarity as to when full retirement is possible, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":39,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/investdifferently.ca\/blog\/wp-json\/wp\/v2\/posts\/38"}],"collection":[{"href":"https:\/\/investdifferently.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/investdifferently.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/investdifferently.ca\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/investdifferently.ca\/blog\/wp-json\/wp\/v2\/comments?post=38"}],"version-history":[{"count":2,"href":"https:\/\/investdifferently.ca\/blog\/wp-json\/wp\/v2\/posts\/38\/revisions"}],"predecessor-version":[{"id":41,"href":"https:\/\/investdifferently.ca\/blog\/wp-json\/wp\/v2\/posts\/38\/revisions\/41"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/investdifferently.ca\/blog\/wp-json\/wp\/v2\/media\/39"}],"wp:attachment":[{"href":"https:\/\/investdifferently.ca\/blog\/wp-json\/wp\/v2\/media?parent=38"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/investdifferently.ca\/blog\/wp-json\/wp\/v2\/categories?post=38"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/investdifferently.ca\/blog\/wp-json\/wp\/v2\/tags?post=38"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}