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