Retirement Onboarding - Retirement, Time, and Money

Construction business owners should look at time and money very simply in their retirement at the start of planning their retirement onboarding.

Sue Weiler-Doke Profile Picture
Share
Contributors David Brown
  1. Figure out the approximate annual cost of the desired lifestyle in retirement.
  2. Multiply that by 20 and that is approximately the size of the total retirement portfolio required.

Those numbers are good enough for general planning purposes. A combination of a good financial planner, CPA, and attorney can very likely improve upon these metrics but start here. This is no different than starting the architectural programming and schematic phases with some basic square-foot estimates.

For construction business owners, there are a few dynamics in play that make these calculations more difficult than a simple 401(k) retirement calculator:

  • Many owners and executives have personal expenses co-mingled with the business to some degree, including vehicles, meals, entertainment, phones, technology, etc. Understanding what those will truly look like in retirement is often challenging.
  • Many owners are continuously reinvesting their retained earnings into the business for working capital, which means that while their net worth is steadily increasing, their liquid cash for investment in a traditional retirement planning arrangement is weighted toward later in life.

This is Part 8 of a 15-Part Series


Topics Covered in the Series Include:

  • When is it Too Late to Start My Retirement Planning?
  • Future Vision for Your Company
  • Post-Retirement Business Involvement
  • Where to Turn for a Helping Hand
  • The Ideal Lifestyle for the Retiring Contractor

Interested in learning more? Contact us.


Retirement Onboarding for Construction Owners
Retirement Onboarding is something that construction business owners must regularly be working on for themselves and other key team members....

Retirement Onboarding for Construction Owners
Retirement Onboarding is something that construction business owners must regularly be working on for themselves and other key team members....

Lean Principle - People First > Process > Tools
To maximize productivity a contractor must focus on their people, processes and technology tools as an integrated system with a hierarchy. This is not a linear process and should be looked at as a continuous PDCA cycle.
Succession and Choosing 3rd Party Advisors
Most contractors have gone through the succession process zero times. Choosing the right team of advisors will help you effectively explore options and refine the details of your specific succession.
Stop Doing Things - Peter F. Drucker
The tendency as a leader’s role evolves is to keep adding things to their list of responsibilities and to their team. What’s important is to regularly pause and reflect about what you can STOP doing to allow for new ideas if they are really better.