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Should You Sell Your Business Before You Retire?

By U.S. News & World Report

Retirement planning is especially complicated for business owners. You have to fund your own retirement plan and decide what to do with your business before you retire.

[Read: 5 Ways to Save for Retirement When You’re Self-Employed.]

Many retiring business owners decide to sell the business. The proceeds from the sale can help to fund retirement. However, the process of selling a business can be practically difficult and also emotional. You’ve probably spent years or even decades building up your business, products or services. You may know your employees well and want to make sure they are cared for.

Here are six tips for getting ready to sell your business before you retire:

1. Get an appropriate valuation. First you should determine what your business is worth. This can take some time and sleuthing. You’ll want to start by taking stock of the assets and liabilities. Then look at your profit from recent years. You should also check out similar businesses in your niche to see what they might be selling for. It can be helpful to consult with an experienced professional before initiating a sale. Sometimes you’re not planning to sell your business, but a potential buyer comes along with an offer you can’t refuse. However, it’s still a good idea to double check that the offer lines up with the valuation of the company you built.

2. Create a succession plan. You don’t want to leave your business suddenly, especially if the goal is to keep things going for your employees and customers. Instead, take time to work with your buyer on a plan of succession. Introduce the buyer to your employees, business processes and customers. Show the buyer what it takes to keep your business running smoothly.

[Read: 5 Challenges of Early Retirement.]

3. Consider whether your children want to be involved. You might decide to hand over the reins of the business to a child or partner. You may still be involved on some level, but in a scaled-back way that lets you feel retired. However, your heirs might not want to run the business. Maybe you have aspirations of running a multi-generational business, but your children have other dreams. In that case it may be better to sell the business to an eager new owner rather than trying to force a poor fit.

4. Train your employees. Having well-trained employees, especially at the management levels, will make your business easier to sell and help ensure that things stay on track as much as possible. If you’ve been doing most of the management on your own, take a year or two before you sell to train employees to do some of this work.

5. Thank about your base of customers. As a business owner, you want to take care of your customers. So you’ll want them to continue to be served after you retire. Finding a good buyer to continue running your business is a good way to do this.

[Read: 11 Tips for Starting a Business in Retirement.]

6. Be ready for the emotional work. Many people find that retiring is more emotionally difficult than they thought it would be. This may be even more true of business owners. You’ve invested a lot of yourself into this business. You’re emotionally invested in your product. Maybe your business was born of an excellent product idea that you want to see continue. In this case, allowing for a buyer may mean you get to see your product grow and flourish.

When you sell a business, you’re stepping away from something that’s very important to you. Be ready to process the grief that can accompany this transition so that you can move on to enjoy your retirement years.

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Should You Sell Your Business Before You Retire? originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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