Oftentimes, however, the small business owner realizes the need before death occurs. For some a health problem, such as a mild heart attack, either personally or of a close friend, turns thinking inward. For others, a less dramatic chain of events, like paying the youngest child's last college tuition bill or finding a potential retirement home during vacation, sets the wheels in motion. As a business owner, the best time to begin thinking about your retirement is in your 40s. At this age time is on your side and many options are available.
Less money is needed because funds can be accumulated over a greater period of time.
In the 50s, as the calendar pages seem to turn more rapidly, the need for a plan intensifies. A more aggressive strategy is necessary because there is less time until retirement. The owner who waits until his or her 60s or 70s has even fewer options. If no one has been groomed to take over the business, it might be difficult or impossible to find someone who can quickly step up to the plate. The owner might have to sell the business in order to free capital for retirement, long term health care or other needs.