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Article: Retirement planning for the family business owner. (Business Management).(Brief Article)
- Article from:
- Air Conditioning, Heating & Refrigeration News
- Article date:
- July 29, 2002
- Author:
CopyrightCOPYRIGHT 2002 BNP Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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By now most business owners are familiar with the headline, "Less than one-third of family businesses survive into the second generation, and fewer than 13 percent survive into the third generation." But few seem to know why this is the case.
This high failure rate is due, in part, to the failure of business owners to properly plan for the succession of management, the retirement income needs of the owners, and the transfer of ownership to family members.
When business owners and their families address these issues early on, they can greatly improve the chance that the business will survive into succeeding generations and even fund their retirement. Such ...