Small Business Owners – John and Emily


Age: 45 & 49

John is self-employed and has a successful online business that they started 5 years ago. He describes himself as a serial entrepreneur and has worked independently most of his career. Emily has been working as an airline pilot for the past 20 years. They have two kids that are successful in their careers. John would like to sell his company in the next 5-7 years and would like to know if they can retire comfortably and maintain the same lifestyle without worrying about running out of money.

Their goals

  • John would like to sell his company in 5-7 years
  • They would like to retire and slowdown in the next 5-7 years
  • They would like to buy a second home somewhere warm for the winters
  • They would like to travel the world

Their concerns

  • Because of the success of the company, they pay a lot in taxes, and are wondering if there are ways to reduce their tax burden
  • They wonder if the company is set up structurally in the right way
  • They worry about selling the company when the time comes and ensuring a succession plan for the business if something were to happen to John
  • They worry they are not putting enough away for retirement

Our solution

We suggested setting up a company self-employed 401k and cash balance pension plan which enabled them to save $130,000 to $150,000 per year for retirement. This significantly increased the amount of savings for retirement while simultaneously lowering their taxes.

After talking with our team, we connected them with a trusted CPA who helped them change the structure of the company to an S-Corp to protect personal assets, pass-through taxation, and salary and dividend payments.

We helped them determine business valuation options while also connecting them with other professionals to finalize a business succession plan and establish proper levels of insurance.