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Category: Finance
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Experience:  Tax professional and business consultant for 35 years.
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I sold my business. The price was $3.6 million but there was

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I sold my business. The price was $3.6 million but there was a mortgage to pay off. I roughly came out after taxes with $1.25m. Its all the money I have in the world. My post ownership living expenses are high and the burn rate will have me out of money in a few years. There is basically no chance for me to make the salary I was and I can see the writing on the wall. I will always be short and I will burn through the cash. I didn't sell my business to ruin my life but its turned it upside down and I'm having a hard time with the idea banking $1.25m, and instead of celebrating, I'm counting the minutes to doomsday. Instinct is to cut expenses, but how do I tell my family that we made money selling but now we have to reevaluate our entire lives. Seems like the whole thing is blowing up in my face. Any advise?
Submitted: 2 years ago.
Category: Finance
Expert:  PDtax replied 2 years ago.

Hi from just answer. I'm PDtax.

Expert:  PDtax replied 2 years ago.

The real truth is sale of a business means change. It is likely a financial gain, but you also lost your job. This is the second part of the sale. How to live afterwards.

Expert:  PDtax replied 2 years ago.

Using terms like burn rate for personal finance make sense. Without the big income your business offered, you do have to revise your spending. Or you will go through the sale proceeds, which is more than most people accumulate in a lifetime.

Expert:  PDtax replied 2 years ago.

You do have to tell your family that you ask will have to adjust. If you can't live on what that newest egg will earn you, you have to cut expenses. An 8% return yield 100,000 per year. Since that isn't enough, you have to cut expenses and decide what to do with the rest of your life.

Expert:  PDtax replied 2 years ago.

Involving the family by letting them know is the only way to do it honestly. If you return to work, or opening a business again, it might be different in the future.

Good luck, and thanks for asking at just answer. Positive feedback is appreciated. I'm PDtax.