Time to sell the business?
Jeanne is starting to think that she just wants to work as a dentist, and no longer carry the responsibility of running a dental practice. She wants more flexibility, but isn’t sure if it’s the right time to make a move.
She helps care for her father and bought him a house nearby. She also wants to continue to support her boys and their activities, including competitive skiing.
She has accumulated $200,000 in an RRSP, $92,000 in a TFSA, $340,000 in non-registered accounts, and $45,000 in an RESP. She also has an offer on the table to buy the practice and is tempted to take it, but wants to make sure she understands what this will mean to her financial future.
How we helped
We ran some scenarios to test her options.
Scenario 1: If Jeanne keeps her practice and it stays profitable, it will fund her retirement, and also lead to a projected total estate of more than $5 million by the time she’s 95. So, that gives her financial security, but may not offer the quality of life she wants.
Scenario 2: If she sells the practice, she can invest the proceeds and use those investments to fund her retirement. She would still be able to retire at 55 and be cash positive through her life, with a $3 million projected estate by the time she’s 95.
Results
Because of her IG Living Plan, Jeanne:
Had an understanding of her options and could make an informed decision
Could make the decision that was best for her—knowing that either way, she would be financially secure
Could adjust her plans as her life unfolds, and manage her resources wisely
Having this information gave Jeanne what she needed to move forward and live life on her terms.