Author Topic: Two paths...or maybe more, would appreciate your thoughts.  (Read 376 times)

khg2023

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Two paths...or maybe more, would appreciate your thoughts.
« on: August 12, 2019, 04:02:43 PM »
My husband and I are contemplating two roads and would love some advice/input on our options.

By mid 2023 we anticipate owing $50k on our mortgage and about $53k on some land.  We are consistently paying down our mortgage, and have no CC debt, student loans or car loans etc.  Our plan is to sell our home and the land we own, which being cautious and following the last 5 years of real estate values in our area, should net us with about $550k plus after fees.  (Yes real estate may crash etc., but if that happens this plan won't be acted upon).

We own a business that we can sell for about $650-750k (in 3 years time we would hope for more, but this is assuming revenue is maintained, and we have grown by 20% min. every year of business).  All told we should have $1.3-1.4M.  We plan on spending about $200k on a small home and investing the remainder in order to retire.  We are anticipating a $45k a year budget which allows us some travel.

A second option is to sell the land & home, buy a small home, invest the $350k plus $100k already invested and draw a salary of $72k a year from the business, hiring someone to run it.  In this case, it would be our daughter who will have her degree by then and will have worked for the company for 6 years at that point.  An entrepreneur at heart, it would be an excellent stepping stone for her to starting her own business, allow us 5+ years of passive income, and then (hopefully) a greater return on the sale down the road. She would get bonus's based on increased revenue so it is a win-win for all.

Of course the potential is always that it doesn't work and the company devalues.  We have 4 kids, and this one is the only one who has the balls to do this and would do it well. 

I don't know if anyone has been down this road before, but we thought hearing from others would help us weigh our options more effectively.