Guidebook, Pages 86-90; Wk 1-2 CD; “Business Overview”; Wk 3 CD; “Other Income and Rental Income”) We ve entered a value for our business in Quicken that is the same as our business checking account. Should I be concerned about pages 86-90 of the book?
It is important to complete Pages 86-90 and establish a “going concern value” for your business if; a. You are depending on the sale of your business to fund a future financial goal, such as retirement and the value you expect to receive is different than the value that you currently see in your Quicken accounts. For example, if I own a business that I think will provide $100,000 in cash flow when I retire and sell the business, then I d better go through the worksheets to see if that is realistic. It s much better to find out that a more realistic number might be $50,000 now then later when I no longer have the time to pursue other ways of increasing retirement assets. Be careful, however, about “double-dipping.” If, for example, you have the option of selling your business income stream or continuing to receive residual payments make sure that you choose one or the other. If you do choose to receive the ongoing income stream, only include the value of your cash and net accounts recei
