Have you been considering a mega backdoor Roth? It might not be the right fit for you. Here are a few reasons why it rarely works in the real world.

As a business owner, your professional and personal lives are intertwined and inherently connected to your business. With their identity largely tied to what they do professionally, many owners face confusing and conflicting emotions when leaving their company. Selling a business can be one of the most significant decisions of your life. The first step to planning for your exit is finding mental readiness.

Business owners are on the hook for a lot: the full 15.3% self-employment tax, the cost of healthcare, building your own nest egg without the matching employer contributions to retirement plans often referred to as “free money” for employees. It’s no wonder that investing for retirement isn’t a top priority for some business owners who are busy trying to grow their business’ value.

Most business owners will agree: scaling a profitable business is not easy. It takes a strong vision, sufficient capital, the right leadership and great talent to build a valuable business asset. Even if you never decide to sell, creating a profitable business asset is an incredible way to build wealth. However, many business owners lack the right playbooks and resources to unlock the wealth trapped in their business.

If retirement is on the horizon for you or if you have already taken the leap, you may have amassed savings and wealth but aren’t sure how to go about living off of that in retirement. Moreover, you may not have thought about “sequence of return risk”.

As a successful professional selling or exiting your business, selecting the most appropriate strategy for you is critical for achieving not just your potential for wealth, but your potential for living.   1. Strategic (Industry) Buyer  Strategic buyers often pay the highest price, however, may restructure the acquired company.   2.

One of the biggest challenges for people entering retirement is knowing how to start spending from their portfolios when they’ve spent an entire life saving. How do you even know where to begin to make sure you can do what you want, when you want, without the risk of running out of money? A good first step is taking stock of how much set income you will have in retirement from sources other than your portfolio.

Think a QCD might be right for you? Here are some important things to know: QCDs can be made from a traditional IRA, inherited IRA, inherited Roth IRA, SEP IRA, or SIMPLE IRA, however you cannot be actively receiving any employer contributions to the account (SEP or SIMPLE). You must be at least 70 ½ years old at the time you plan to make the QCD. Your QCD can satisfy your RMD.