Effective Retirement for Family Business Owners/Managers: Perspectives of Financial Planners Originally written for Money Magazine Only three of the top 10 most important conditions cited for an effective retirement were about finances. They include maintaining one's lifestyle, meeting long-term care needs and having shareholder agreements. Eighty-seven percent of the respondents felt that compared to their typical client, the family business clients exhibited more complexity in retirement planning. The other aspects of successful retirement relate to a myriad of non-financial issues. Some dealt with relationships with the retiree's spouse, children and grandchildren. Other personal issues, such as completion of a personal mission, creation of a legacy and establishment of a new identity and sense of significance, are recognized as important factors affecting retirement success. Most financial planners believe that the retirement period affords an excellent opportunity for the retired owner-manager to improve relationships with family members. At a recent meeting of the Financial Planning Institute (FBI) in South Africa, a paper on what constitutes successful retirement for the CEOs of family businesses was presented and received the award for best paper. The report provided the perspective of experienced financial planners in the United States, advisors whom many family businesses use not only for asset management, but also for assistance with estate and succession planning. The researchers for this project, Tom L. Potts, Ph.D., CFP, Professor of Finance at Baylor University; John E. Schoen, Co-Director of The Family and Owner Managed Business Program at Texas A&M University; and Margery E. Loeb, president of Loeb & Associates, LLC, consultants to family business, report several unexpected findings that show that financial planners are aware of the many complexities affecting the successful retirement of family business owner-managers.

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