Dave on CNBC’s Power Lunch

On Tuesday, August 19, Dave Yeske was featured on CNBC’s Power Lunch to discuss what small business owners need to do to prepare for retirement. The discussion stemmed from a recent survey conducted by the Financial Planning Association (FPA) and CNBC.

Lori Ioannou, senior editor, summarized the study and interview on Power Lunch in her article (snippets below) on CNBC.com.

Neglecting a personal financial investment strategy and just plowing money into a business is fraught with risk. “It means the only way to fund retirement is to sell and cash out,” explained David Yeske, a principal in Yeske Buie, a financial advisory firm with offices in San Francisco and Vienna, Virgina. “There is always uncertainty on how successful the owner will be in finding a buyer at the right price. If he or she dies before this is accomplished, all can be lost.”

Financial advisors who participated in the CNBC/FPA survey pointed to three key initiatives small-business owners and their financial planners should follow in order to secure their financial future.

1. Diversify. Work to reduce dependence on the eventual sale of the business to fund retirement. Instead, strike a balance between reinvesting all profits in business expansion and diverting some funds to other investment assets.

2. Prepare for the worst. Protect your family and your business assets by buying insurance that covers the business owner’s disability or premature death.

3. Plan for succession. The time for a business owner to start developing a succession plan or exit strategy is from the first day the firm is launched. That’s because a well-designed strategy—including grooming the right individuals for succession—may take years or decades to implement.

The good news is, there is usually a fallout benefit. As Yeske pointed out, “Having a smart exit strategy boosts the odds of a small business’s long-term success, since it guides the founder on how the business should be properly structured and managed on a day-to-day basis.”