Think Your Business Will Fund Your Retirement? Think Again.

How to calculate your FIN number and create a real plan for financial independence

Most business owners believe their business is their retirement plan.

And on the surface, that makes sense. You’ve poured time, money, and decades of effort into building something valuable. So when it’s time to retire, the assumption is: sell the business, cash out, and live comfortably.

But here’s the truth that doesn’t get talked about enough:

👉 Most small business exits don’t fully fund retirement.

In fact, the majority of business owners overestimate their company’s value, underestimate how long it will take to sell, and forget to factor in taxes, fees, or the emotional toll of letting go.

That’s why your future self is begging you to read this now—while you still have time to plan.

✅ Step 1: Know Your FIN Number ✅

What Is a Financial Independence Number, Anyway?

Your Financial Independence Number (FIN) is how much money you need- invested smartly- to live your life without relying on a paycheck. It's the pot of gold that lets you live on your terms. No more wondering if you're saving “enough.” The FIN tells you exactly what “enough” looks like. Here’s the magic formula:

👉 Your Desired Annual Retirement Expenses ÷ 4% = Your FIN

That 4% number? It comes from a tried-and-true strategy backed by data, math, and people with way more financial degrees than we have. The idea is: if you only withdraw 4% of your investment total each year, it should last around 30 years—even with market ups and downs.

So if you spend $100,000 a year to live comfortably? $100,000 ÷ 0.04 = $2.5 million. That’s your FIN.  

✅ Step 2: Reality Check – Will Your Business Actually Cover It? ✅

Here’s where things get real.

Your business might be profitable, but that doesn’t automatically mean it’s sellable—or that it will sell for what you think it’s worth.

Common issues that tank business exit value:

• The business depends on YOU. If clients, knowledge, or key relationships are tied to you, it’s harder to sell.

• No clean financials. Buyers want systems, not spreadsheets full of guesswork.

• No recurring revenue. Businesses with predictable, repeatable income are far more attractive.

• Low scalability. If there’s no growth potential, there’s limited buyer interest.

Even if you do sell, taxes, broker fees, legal costs, and time on the market can eat up a large portion of your payout. Knowing your FIN helps you know how much you need to walk away with. And knowing it ahead of time means that you can scale your business to the desired selling price over the next 3 to 5 years.

✅Step 3: Build the Plan—Now, Not Later✅

If your FIN number is $2.5 million and your business realistically might sell for $750K after fees, you’ve got a $1.75 million gap. That’s not cause for panic—it’s a call to plan. But that is the topic of another blog.

Okay, so here’s what you can do next:  Use our FIN Calculator to plug in your numbers  

Get honest about how you want to live after you exit your business. Talk to someone... (hi, that’s us ) who can build a roadmap that’s tailored to your specific situation  

👉Real Talk: It’s Not Just About Money

Here’s the deal. Reaching your FIN isn’t just about the math. It’s about freedom.

• Freedom to take a break.

• Freedom to pivot into something new.

• Freedom to never look at another spreadsheet or sales report again if you don’t want to.

And for a lot of our clients, it’s also about getting out of a business that no longer sparks joy—without feeling like they’re jumping off a cliff.  

Wait—Is This Financial Advice? Nope. This is financial education.

We’re not giving you personal tax, legal, or investment advice in a blog post. What we are saying is that there’s a better, clearer, and smarter way to prepare for your exit. And we’d love to help you figure it out. If this got your wheels turning, head to suitesolutions.biz to run your numbers and let’s start mapping out your future.  

Want to dive deeper? Listen to our full podcast episode on the FIN right here or catch the top highlights in our Instagram reels and LinkedIn posts!