After-tax sale impact
Owner Wealth Gap
See whether an illustrated sale, plus what you have invested today, could support the income you want later. Simple math. Heavy caveats. A useful conversation starter.
Illustrated after-tax picture
$2.8M short
After a 25% haircut, the sale illustrates about $1.4M. Combined with current investable assets, that is $1.8M toward a $4.5M capital target at a 4% spending heuristic.
$1.8M of $4.5M illustrated
Illustrated sustainable income
$70,000 / year
Income difference
$110,000 short
- The illustrated capital base may not support the income target without working longer, selling at a higher value, or adjusting spending.
- The 4% figure is a long-used planning heuristic, not a promise that a portfolio can support that spending every year.
- Sale proceeds can be taxed very differently depending on entity type, basis, installment terms, and state rules.
- This illustration ignores Social Security, pensions, rental income, and the possibility that you keep a residual interest in the business.
This is a simplified educational illustration, not a tax projection or financial plan. Sale proceeds, capital-gains treatment, entity type, basis, state tax, installment terms, and after-tax spending needs vary. A 4% withdrawal rate and any tax haircut shown here are rough planning heuristics, not advice. Speak with your CPA and advisor before making decisions.
If the gap is uncomfortable, that is useful information.
The next step is usually a clearer value, a tax picture, and a personal plan, not a rushed listing.