At the beginning of next year, I will receive about $1,000,000 from the sale of company stock (company is being acquired). I am 49 years old, married, with four children at home. My wife and I would like to retire in about 5 years, and we would like to start our own business soon.
Congrats! But that is a tough one. You would have to have an offsetting loss, which I am guessing is unlikely. The only thing I have seen done is spreading out the sale over years to minimize taxes, but that was when the owner had control of the purchase. And it does not sound like the case here.
The only thing I can offer is to make sure that the funds are invested in a tax-efficient, low-cost way, and you prepare for starting your own business. It is easier than ever to have good retirement plans for small businesses.
Mark Struthers CFA, CFP®
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This is for informational purposes only. Your specific situation would need to be taken into account. All information is subject to change. Not to be considered investment, tax, or legal advice.
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