25-Question Owner Financial Readiness Assessment (OFRA) ^SM

1. I know the total amount of money I will need to retire comfortably.

2. I have a written personal financial plan that outlines retirement income needs.

3. I have calculated my retirement “wealth gap” (difference between needed vs. available assets.)

4. I have considered longevity risk (living longer than expected) in my planning. Rate on a Scale of 1–5: (1 = Strongly Disagree, 5 = Strongly Agree.)

5. I understand how inflation will impact my long-term retirement needs.

6. I know the realistic market value of my business. Rate on a Scale of 1–5: (1 = Strongly Disagree, 5 = Strongly Agree.)

7. I understand how much after-tax money I will net from the sale or transfer.

8. My retirement plan does not rely too heavily on optimistic business valuation assumptions. Rate on a Scale of 1–5: (1 = Strongly Disagree, 5 = Strongly Agree.)

9. I have had my business valued by an independent professional within the last 24 months.

10. I have modeled retirement scenarios using conservative, moderate, and aggressive exit values.

11. I have diversified income sources besides the business (investments, rental income, etc.).

12. I know what percentage of my retirement income will come from exit proceeds vs. other assets. Rate on a Scale of 1–5: (1 = Strongly Disagree, 5 = Strongly Agree.)

13. I have maximized retirement savings contributions (401(k), IRA, SEP, etc.)

14. My investment strategy aligns with my retirement time horizon and risk tolerance. Rate on a Scale of 1–5: (1 = Strongly Disagree, 5 = Strongly Agree.)

15. My spouse/partner has a clear understanding of our retirement income plan.

16. I understand the tax implications of my exit (capital gains, depreciation recapture, estate tax, etc.)

17. My business is structured in a way that supports a tax-efficient exit. Rate on a Scale of 1–5: (1 = Strongly Disagree, 5 = Strongly Agree.)

18. I have consulted with tax professionals to minimize taxes from retirement distributions and exit proceeds.

19. My estate plan is updated and coordinated with my exit strategy.

20. I have strategies in place to reduce tax risks related to deferred compensation, earnouts, or seller financing.

21. I have adequate insurance coverage (life, disability, long-term care) for retirement security.

22. I have an emergency fund large enough to handle unexpected expenses during retirement. Rate on a Scale of 1–5: (1 = Strongly Disagree, 5 = Strongly Agree.)

23. I have modeled retirement risks (market downturn, health event, reduced sale price, etc.)

24. I am not financially dependent on the business continuing to operate after I exit. Rate on a Scale of 1–5: (1 = Strongly Disagree, 5 = Strongly Agree.)

25. If I could not sell the business at the expected price, I would still have a financially viable retirement plan.