Most business owners invest a great deal of time and effort growing their own business. It is not easy, but the rewards can be significant! At retirement there are many options and sometimes it is decided that the business should be sold. There is usually a need for a continuation of the income that the private business provided to the business owner and so I am often asked what can be done. In my experience, the best way to provide long-term growth and income on an investment, without the effort associated with running a business, is by investing in the publicly-traded stock and bond markets. Although returns are often not as high as can be earned by owning a private business, there is usually significantly less risk and effort required. This transition from hands-on running of a business to relatively hands-off ownership of publicly traded stocks and bonds can be unsettling to some. Stock and bond markets are inherently volatile. Each publicly traded company is run by management and the average investor has little say in how that business is run. This can be frustrating for a business owner who is used to making most or all of the important decisions within their business. Also, because of the interconnectivity of large companies in the economy, the price of a publicly traded company’s shares can decrease for reasons completely unassociated with the specific company – and can do so second by second as publicly traded companies share prices are traded actively throughout the trading day. However, the benefits of owning a properly diversified portfolio of stocks and bonds can involve positive returns and rising income with very little effort required by the investor. The retired business owner is free to enjoy their retirement years spending their time in areas entirely unrelated to the running of a business. This can be incredibly freeing and produce an exciting and relaxing retirement! I look forward to this time in my own life and having successfully helped many retirees, would strongly recommend it to others!

Information in this article is from sources believed to be reliable, however, we cannot represent that it is accurate or complete. It is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities. The views are those of the author, [name], and not necessarily those of Raymond James Ltd. Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment decision. Raymond James Ltd. is a Member - Canadian Investor Protection