We define Half-Retirement as enjoying the economic benefits of business ownership without the daily headaches. A Half-Retired business owner maintains their current salary while working two half-days a week. They accomplish the transition from working income to equity income by shifting their management philosophies and following an eight-step process to Half-Retirement.
Why business owners should consider Half-Retirement
Two words, valuation gap. The lump-sum sales value of many small businesses is worth far less than the value of the income stream from the business. Many business owners simply cannot afford to sell. It’s not economically viable.
However, as business owners approach retirement age, the stress and daily grind of business ownership seems less tolerable, so they dream about flipping a switch and making it all go away. That is, until they run the math and see that they will have to take a significant pay cut simply to end the daily headaches of business ownership.
Keep your income, ditch the problems via Half-Retirement
Sometimes business owners forget that owning a company and running a company are two different roles, not one. The CEO of Pepsi doesn’t own 100% of the company. She has a role as the leader of the company. The shareholders of Pepsi earn a return on their investment with no daily worries about the operations of the company. This is the shift you can make to turn your company into equity income from earned income.
How it’s done
Half-Retirement isn’t easy, but it’s incredibly rewarding. Imagine doing only the work you enjoy, ditching the work you hate, and keeping your income, and keeping the business asset. Pulling off Half-Retirement can dramatically alter your financial future. See the math for yourself.
We have created several resources to help you on your journey to Half-Retirement. You can find them at the links below.