Small Business Equity..."how to tap" for ER?
We are contemplating ER at 61 using equity in our small tax businesses to fund ER until 67/66 at which time we are fully funded with SS and savings.
Should we insist on cash buyers only and if none come forward, simply hold out until one does?
From a tax and financial viewpoint, it would be beneficial to sell on a contract, but we are leary of "getting them back" in who knows what condition?
Maybe we just continue ownership and beef up staff so we don't have to work so hard? But "catch 22"... still managing people!
We have been self-employed for 28/20 years. No pensions. 1st Home and vehicles are paid for. 2nd home gets sold soon with proceeds to payoff mortgage and outstanding new RV loan leaving us totally debt free. We "half-time" in RV but never totally free spirits with 3 seasonal tax offices and 2nd home. We want to streamline our affairs sooner than later.
If we could cash out, even with a big tax hit, we have enough cash to fund 61-66 without any SS (plan is FRA) and no withdrawals until 67.
We are essentially planning to "blow" the equity in our businesses because we don't need the $ for FRA and have no legacy concerns.
Plan is to work for our buyers to aid a smooth transition.
These tax businesses are successful and provide a good income for seasonal work. (We work only 1 day a week from the RV during the "off season".)
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