Pension and succession planning for entrepreneurs after liquidity event

For many entrepreneurs, the sale of a company is the highlight of their professional career. Not only does it mark the success of often decades of work, but it also leads to a so-called "liquidity event", where a considerable amount of cash is suddenly available. While this financial windfall is gratifying, it also brings with it a number of challenges and questions. What is the best way to manage, protect and grow these assets? How do you plan for the next phase of your life, both personally and financially?

1 The challenge of a liquidity event

A liquidity event, such as the sale of a business, can often be overwhelming. In addition to the emotional aspects - letting go of a life's work - there are also practical questions: How should the money be invested? How can taxes be minimized? How can you ensure that the assets are preserved for future generations?

2. provision for the future

Careful pension planning is essential to ensure that the fruits of the company's success will continue in the future. This can include building a diversified portfolio, setting up trusts or foundations or investing in alternative asset classes. It is also the right time to think about retirement, possible philanthropic endeavors or funding projects and passions.

3. succession planning: securing the legacy

For entrepreneurs who have a family or other heirs, succession planning is a key concern. This involves not only ensuring that assets are distributed in the desired way, but also preparing the next generation for the responsibility of managing a substantial fortune.

4. investing large sums intelligently

After a liquidity event, there is often a substantial sum of money available. The challenge is to invest this capital in such a way that it grows and is protected at the same time. This can be achieved through a combination of traditional investments, such as equities and bonds, and alternative investments, such as private equity or real estate. The use of experts, such as asset managers or family offices, can also be of great benefit here.

Conclusion

A liquidity event is both an opportunity and a challenge. With careful retirement and succession planning, entrepreneurs can ensure that their hard-earned wealth is not only preserved, but also lasts for future generations. It takes strategic thinking, a clear vision and the right partner to make this transition successful.

ZWEI Wealth - the first wealth office in Switzerland

In a world characterized by financial issues and uncertainty, the Zwei Wealth office provides clarity and support. With extensive expertise and a holistic approach, we enable you to embark on your financial future with confidence. Please do not hesitate to contact us if you have any further questions or would like a personal consultation.