The New Golden Parachute is the means  to ensure when retirement comes around, your pay checks will always continue.  Cash flow is King in retirement, assets become secondary if they don't work for you.

 

Originally a Golden Parachute—was a guaranteed severance package for CEO’s in case of:

1. Early termination

2.  Company closes or declares bankruptcy

3. A hostile take over or buyout

4. Forced retirement

5. Disability

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What did it protect them from? Sacrificing their career efforts and risk taking only to be financially wiped out, or arrive short of their retirement goals. 

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So why can’t the small business owner or mid-level executive, or soon to be retiree, do something like this?  Actually, they Should!

 

Technically The New Golden Parachute is a customized retirement plan or severance package for the small business owner, mid-level corporate executive, and or age 50+ employee.   

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Based on your circumstances, it is a wealth building and retention strategy that avoids the watering down of your retirement cash flow due to ill timed market crashes, tax increases, lawsuits, inflation, liquidity and health problems. 

 

In the case of the corporation it is the board who agrees to such a package. In the case of a small business owner or partnership, of course it is up to themselves to guard their future income. A soon to be retiree working for someone else can really be all on their own. 

 

For the small business owner where the majority of their retirement savings is in the business, often this is referred to as "Blue Sky"—“blind hope at the end of the rainbow, that someone will pay full price, for the business.” 90% of the time, however, it is never going to happen, and even if it does they often have to remain as a consultant while receiving payments. 

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If you had the power to guarantee lifetime increasing income, even tax free income, would you take steps now to do something? 

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