An article in Oregon Business caught my eye when it asked the question of Boomer business owners, “Is Your Retirement Tied Up?”
Based on studies, the average mass affluent Baby Boomer has $1.2 million in net worth and over $0.5 million in investment real estate and business interest. The rest is in investable assets.
But don’t be fooled by the averages, though. Those with illiquid investments will have a larger percentage in those assets, and a smaller percentage in investable assets.
While liquidating your business assets may create investable assets to generate retirement income, you may look for generating the maximum income from your existing investable assets.
A recap from the 2017 PLANSPONSOR National Conference (PSNC) pinpointed a common theme. New solutions are needed to address Plan Sponsors’ lifetime income fears.
To be honest, I’ve heard the Plan Sponsors dilemma for 10 or more years. They’ve done a poor job in addressing their participants’ concerns about lifetime income.
My answer? Let participants move to rollover IRAs without restrictions. That’s where the creative solutions exist.