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How to Retire When You Have Assets to Sell First

Retirement planning is a great idea, but it relates mostly to people who have pensions to access when they reach the appropriate age. When your circumstances are different due to owning other types of investment assets or a business of one type or another, then it’s a lot more complex. The planning of the sale, its timing and so forth, have to be carefully considered to ensure you do the right thing at the right time.

Here are some examples of retiring when you own different assets that require selling, either in part or in full.

A Retiring Accountant

If you’re an accountant with your own practice, there are regular clients who provide billable business every year. They take time to acquire and manage and so this has a value in the marketplace.

When you’re looking to retire or leave the accounting business, then selling off the accounting firm makes sense. The acquirer can take over the client book and manage their accounts for them instead. An orderly transition can be arranged by using a facilitator like Retiring Accountant that manages the partial or complete sale of accountant firms in the UK.

Trying to Retire with Rental Assets

Managing a rented house or a flat might have been fine when working, but who wants to deal with a frozen water pipe in the winter during retirement? Not when you’d rather be enjoying the Canary Islands or soaking up the sun on a beach in Asia during the wintertime, that’s for sure!

In which case, selling off buy-to-let properties to other investors will remove the burden of being a landlord. Also, don’t forget that you’ll need a plan for whether you’ll invest the net proceeds from the sale after it’s completed too. Leaving the cash in your bank account isn’t a plan as you need to generate an above-inflation return to live off the proceeds in the years to come.

Selling Digital Assets to De-Risk Your Investment Portfolio

Digital assets are favourable because they can produce high rates of growth and throw off 30-40% in annual income yield at the same time. However, depending on their business model, they’re also at risk from Google algorithm changes, technology innovations and other factors that can turn a profit into a loss virtually overnight.

Given that even owning several websites doesn’t provide protection from the above risk factors, de-risking the portfolio by selling off digital assets and putting the money into safer assets is useful. It sidesteps the risk of a blowout and having to return to work.

There’s also the possibility that you need to reorganise your traditional investment portfolio if you’re in ISAs and brokerage accounts or a personal pension with a drawdown feature. Most retirees look to reduce their equity exposure near their retirement date to avoid the risk of a dramatic decline in the value of their investments. Therefore, some selling and subsequent buying to rebalance the equity exposure is involved – which may trigger capital gains, taxes, and certainly some transactional costs – as a result.