If you own your own business, you may find yourself asking the question, "Who else has my courage, vision and commitment?" Most business owners fail to groom prospective successors to ensure the longevity of their company. Therefore, expectations of drawing a retirement income from the corporation rarely come true because of the following reasons:

• Many business owners have a "warm and fuzzy" intention to transfer their business to their family members without assessing their competency.
• One out of four business owners will become disabled before they retire, without a disability income plan to protect their income.
• Three out of four business owners must return to work to rescue the company from bankruptcy, and protect their retirement income.

Succession planning allows for the orderly transfer of ownership and management, ensuring that your retirement income goals become reality.

• You may want to retire, yet continue to draw a business income. Consider being a consultant to your sons or daughters, helping them tune their managerial skills.
• Perhaps you could act as chairperson of your company while giving the presidency to one of your children.
• You may want to do some creative estate planning to transfer assets to a child now, in order to defer future income taxes on capital gains.

Set aside time for planning with your financial and business advisors.

Here is a list of those whom you may want to benefit from the business:

Employed by the Company and are Shareholders

• Yourself as the major shareholder owner
• A family member
• Non-family employee

Employed by the Company and are not Shareholders

• A family member
• Non-family employee

Not Employed by the Company and are Shareholders

• A family member
• Non-family shareholder

Not Employed by the Company and are not Shareholders

• A family member
• Other heirs