As an architect or engineering firm owner, you’ve likely dedicated decades to building a successful career and thriving business. You’ve poured your heart into your designs, built strong relationships with clients, nurtured your firm, built a talented team, and solved countless challenges along the way. But while you’ve been busy crafting buildings and structures, have you given the same level of attention to building a financial plan for your own future?
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For many firm owners, regardless of age, retirement feels like a distant concept, or something that doesn’t even seem necessary. After all, if you love your work, why would you ever want to stop? It's common to think, “I’ll work forever,” or “I’ll figure it out when the time comes.” But this mindset can lead to serious financial consequences down the road.
No matter how much you love what you do, there will come a time when you want—or need—to slow down. Whether it’s because of health issues, a desire to spend more time with family, or simply the realities of aging, the day will come when stepping back from work is no longer optional but essential. And if you don’t have a plan in place for that day, you could find yourself scrambling to figure out how to support yourself, just like David, the architect whose story we’ll explore.
This short story is meant to serve as a cautionary tale, showing you what can happen when you assume you’ll always be able to work, and the steps you can take to ensure you don’t face the same fate. Whether your years away from slowing down or already thinking about cutting back, this case study will help you understand how to build a financial plan that supports your future, so you can transition from work on your own terms.
David is an architect in his late 60s, and for most of his career, he believed he would always work. Architecture wasn’t just his profession, it was his identity. He loved the process of creating, the problem-solving, and the sense of accomplishment that came from seeing his designs come to life. He figured that as long as he was physically and mentally able, he would continue working. He never envisioned a time when he wouldn’t want to be fully involved in his projects.
But life has a way of changing plans. After years of managing his firm, dealing with the pressure of deadlines, and keeping up with the demands of his clients, David started to feel the fatigue. It wasn’t that he didn’t love his work anymore—it was that he simply didn’t have the same energy he once did. He found himself longing for more time with his family and a slower pace of life. Vacations that once felt like luxuries started to feel like necessities. He began to realize that he couldn’t—and didn’t want to—keep working at the same pace forever.
The problem was, David hadn’t prepared for this moment. He hadn’t thought about what life would look like if he decided to step back from full-time work. Like many firm owners, David had always assumed that as long as his firm was generating revenue, he’d be fine. He thought that his business’s cash flow would sustain him indefinitely, and he didn’t prioritize setting up retirement accounts or passive income streams. After all, why worry about retirement when you never planned to retire?
But now, facing the reality of wanting to slow down, David was stuck. Without a clear income plan for his post-work life, he was unsure how he would support himself. His business was still profitable, but it relied heavily on his presence. There were no systems in place for it to run without him, and he hadn’t built up enough assets outside of the business to provide a sustainable income. David felt trapped, unsure of how to transition into a different phase of life without compromising his financial security.
It’s easy to fall into the trap of thinking that your business will always provide for you, but the reality is that, without a proper financial plan, you could find yourself in a difficult situation when it’s time to slow down.
David’s story illustrates a common trap that many firm owners fall into: the belief that they’ll always work. Architecture is a deeply personal and fulfilling profession. It’s not just about the paycheck—it’s about passion, creativity, and the desire to leave a lasting legacy through your work. For many firm owners, the thought of “retirement” doesn’t feel like a natural endpoint. Instead, they picture themselves staying active in their profession well into their later years, continuing to design, manage projects, and guide their firm as long as they can.
But this belief comes with a dangerous assumption—that you’ll always have the choice to keep working. Life, however, doesn’t always go according to plan. You may be able to perform at a high level and love your work today, but what about in 10, 20, or 30 years?
The reality is that unexpected events—health issues, family obligations, or simply a shift in your energy and interests—can change everything. You might find yourself needing to scale back, either by choice or circumstance. But without a financial plan in place, that transition can be much harder than you expect.
Too many firm owners, like David, assume that the steady cash flow from their business will always be there to support them. They believe that as long as their firm is running, they don’t need to worry about saving for retirement or creating other income streams. Or they think that it will be easy to sell the firm for enough to sustain their retirement years. But this is a risky gamble. Relying solely on your business is like walking a tightrope without a safety net—one misstep or unexpected life change, and the entire financial foundation can crumble.
Even if your passion doesn’t fade, you can’t control external factors. A downturn in the construction industry, economic recession, or changes in client demand can all impact the stability of your business. There is also no guarantee that someone would want to buy your business, especially if most of the value is tied to your personal relationships. And if you haven’t set up a plan for how to generate income without relying solely on your work, you could find yourself scrambling to figure out how to maintain your lifestyle.
The biggest mistake firm owners make is assuming they’ll always be able to work and that their business will continue to provide the income they need. This mindset can lead to a lack of urgency in creating a solid financial foundation. But when life throws you a curveball, it’s often too late to build that foundation quickly.
The good news is that with the right planning, you can ensure that you have the financial flexibility to make choices about your future, instead of being forced into them. By shifting your mindset from “I’ll always work” to “I’ll plan for a future where work is optional,” you can take control of your financial destiny. It also can lead to a more prosperous business.
David’s situation didn’t happen overnight. It was the result of years of focusing on his business, assuming everything would work out in the end, and neglecting personal financial planning. And there were warning signs along the way—subtle indicators that he was overly reliant on his business and lacked a clear plan for the future.
The same signs show up in the financial lives of many firm owners, but they’re often ignored or overlooked until it’s too late.
Here are the key warning signs that you may be heading down the same path as David:
If the cash flow from your firm is your only significant source of income, you’re walking a financial tightrope. Your business may be doing well now, but what happens if there’s an economic downturn, a slowdown in the construction industry, or if you simply want to take a break? If you don’t have other income sources or a financial safety net, you could find yourself in a precarious situation.
If your business’s cash flow is your only source of income, you’re missing out on the benefits of passive income. Real estate, stocks, and other investments can provide consistent income without the need for your active involvement. Relying on just one source of income (your business) can leave you vulnerable, but diversifying into passive income streams helps ensure financial security even when you’re not working.
Many firm owners get so caught up in the day-to-day demands of their business that they forget to prioritize their own future. If you’re not consistently contributing to retirement accounts like 401(k)s or IRAs, you’re missing out on years of compounding growth. Waiting too long to start saving can leave you scrambling to catch up later in life, especially when it comes to building a nest egg large enough to replace your income when you’re no longer working. It is highly recommended that you maximize your contributions every single year.
You’ve built your firm with your blood, sweat, and tears, but is it ready to run without you? If you haven’t thought about how your business will continue to operate—or be sold—without your daily involvement, you could be setting yourself up for a tough transition. A lack of succession planning means that your business’s value is directly tied to your ability to keep working, which can make it difficult to slow down or step away when the time comes.
To ensure a successful transition, it is crucial to identify individuals who have the skill sets that are best suited to take over. Future leaders should possess an entrepreneurial mindset, have a knack for bringing in work, are respected by their peers, are interested in business financials, like mentoring and leading a team, and have the ability to manage themselves and others effectively.
- Rena Klein, FAIA
Many firm owners assume they’ll just figure out their retirement income needs later. But without knowing how much you’ll need to live comfortably in retirement—or semi-retirement—it’s impossible to create a clear financial plan. Not understanding your future income needs means you could be saving too little or relying too heavily on your business’s performance.
Start by building an annual budget to determine your desired income at retirement. Then you can use the table below to estimate the amount of assets or investments you need to support that income level. Consider that your expenses may significantly change. For instance you may need different health care coverage, travel expenses may significantly increase during retirement, perhaps mortgage payments will drop if you pay off your house.
This table outlines desired income in retirement and the approximate value of assets required, assuming a conservative 4% withdrawal rate, which is commonly used in financial planning:
Desired Annual Income
in RetirementApproximate Assets Required
(4% Withdrawal Rate)$40,000
$1,000,000
$60,000
$1,500,000
$80,000
$2,000,000
$100,000
$2,500,000
$120,000
$3,000,000
$150,000
$3,750,000
$200,000
$5,000,000
$250,000
$6,250,000
$300,000
$7,500,000
If any of these warning signs sound familiar, it’s time to take action. These are the same mistakes David made, and without proactive planning, they can lead to unnecessary stress and uncertainty about the future.
Recognizing these signs early allows you to pivot and put a plan in place before it’s too late. It’s not about waiting until a health scare or a sudden change in the market forces you to react—it's about planning ahead so that you can face the future with confidence, knowing that you’ve taken the steps to secure your financial well-being.
Recognizing the warning signs is just the first step. Now it's time to take action. By putting a plan in place today, you can avoid the stress and uncertainty David faced and build a future where work becomes a choice, not a necessity. Here’s a blueprint to help you secure your financial future and avoid David’s fate.
The earlier you start contributing to retirement accounts, the better off you’ll be. Time is your biggest ally when it comes to building wealth, thanks to the power of compounding interest. Whether it’s a 401(k) or IRA, making consistent contributions over time allows your money to grow tax-deferred, giving you more flexibility when you’re ready to step back from work.
Start contributing today—even if retirement feels far away. The longer you wait, the harder it becomes to catch up later in life. Take advantage of employer matches, tax benefits, and compounding growth to ensure you have enough to support yourself when work is no longer an option.
Although the earlier the better, it is never too late to start. As a firm owner you have the power to set up retirement plans through your business. Make this a top priority if you don't already have something in place.
Your business is likely one of your greatest assets, but is it ready to be sold or handed off when you’re ready to retire? The value of your business can't be tied solely to you. Building a sellable business means creating systems and processes that allow your firm to run smoothly, even without your direct involvement.
Start thinking about succession planning now. Train a strong leadership team, document your workflows, and position your firm as a standalone entity that doesn’t rely on your presence to succeed. By doing this, you’re creating an asset that can either be sold for a substantial sum or handed down to the next generation without putting your financial future at risk.
Regularly analyze your financial performance to identify strengths, weaknesses, and opportunities for improvement. Calculate key financial ratios, such as profitability ratios, liquidity ratios, and efficiency ratios, to assess your business's financial health and compare performance against industry benchmarks.
- Ryan Sullivan PE, from Fundamentals of Business
We've already discussed the risk of relying solely on your business for income, especially as you reach retirement age. That’s why it’s crucial to start building income streams outside of your business—income that can work for you even when you’re not actively working.
Investing in real estate, stocks, bonds, or other income-producing assets is a smart way to diversify your wealth. These assets can provide steady, reliable income and create a financial safety net in case business slows or you decide to scale back your work. The earlier you start diversifying your income streams, the more secure your financial future will be.
Having a plan for how you’ll generate income after you step back from work is essential. You need to know how much money you’ll need to live comfortably in retirement—and where that money will come from.
Start by calculating your projected expenses in retirement, factoring in things like healthcare, housing, travel, and other lifestyle choices. Then, assess your assets to determine how much income they’ll generate. A mix of retirement savings, passive income from investments, and any proceeds from the sale of your business can create a stable cash flow to support you for the rest of your life.
By having a clear income plan in place, you can confidently step back from work without worrying about how you’ll maintain your lifestyle.
Instead of stopping work cold turkey, consider a phased approach to retirement. You don’t have to quit entirely overnight. A phased retirement allows you to gradually reduce your hours while still generating income and transitioning your responsibilities to others within your business.
This approach not only gives you time to adjust personally and financially, but it also gives your business time to adjust as you step back. You can continue earning income while making sure your firm remains successful without your full-time involvement. This can also allow you to ease into retirement more comfortably, knowing that your finances are secure and your business is in good hands.
By following this blueprint, you’re setting yourself up for financial abundance. These steps allow you to avoid David’s fate—scrambling to figure out how to support yourself when it’s too late. Instead, you’ll have a clear plan for how to transition into the next phase of life on your own terms, with financial security and peace of mind.
What happens if you choose not to act? If you continue down the path David was on, there’s a real risk of facing financial insecurity when you should be enjoying the freedom you’ve earned after years of hard work building a business.
Not planning for your future doesn’t just mean you’ll have to work longer—it means you may lose the ability to choose. The beauty of financial planning is that it provides you with options. It allows you to decide how and when you’ll step back from your career, whether that’s scaling down your hours, retiring completely, or pursuing personal passions without financial worries.
But if you neglect to plan, you may find yourself scrambling to figure out how to maintain your lifestyle at the very moment you want to slow down. You might still love your work, but the pressure of relying on it for financial survival can lead to burnout, stress, and even resentment toward the very career you once cherished.
Here’s what can happen if you don’t take action:
Without a solid income plan or diversified investments, you might have to work much longer than you planned. Retirement becomes less of a choice and more of an obligation.
As health issues arise, the desire to spend time with family grows, or the pace of work slows, the lack of a financial safety net can create anxiety about how to support yourself in the years ahead.
Without proper planning, your business might be too dependent on you to continue running or sell when you’re ready to step away. A lack of succession planning means you could miss out on the opportunity to turn your business into a valuable, sellable asset.
Failing to diversify your income streams means missing out on passive income that could provide long-term stability. Relying on one source of income—your business—puts you in a vulnerable position if that revenue slows down or disappears.
Inaction doesn’t just affect your financial well-being—it impacts your personal life, your ability to enjoy your success, and your freedom to choose how you spend your later years.
By taking proactive steps now, you can avoid these challenges and enjoy the financial freedom and security you’ve worked so hard to achieve.
David’s story is a cautionary tale, but it doesn’t have to be your reality. By taking control of your financial future now, you can avoid the stress and uncertainty of scrambling for income when you’re ready to slow down. The truth is, financial freedom isn’t just about accumulating wealth—it’s about having the freedom to choose when and how you want to work, without being forced into decisions because of financial pressure.
The beauty of planning ahead is that it gives you options. When you follow a blueprint designed to support your future—whether it’s utilizing retirement accounts, building a sellable business, or creating diversified income streams—you’re giving yourself the gift of flexibility. You get to decide how you want to spend your later years, whether that’s continuing to work at your own pace, traveling, spending more time with family, or pursuing new passions.
But the key is to start now. Don’t wait until it’s too late. By taking small, steady actions today, you’re laying the foundation for a future where work is a choice—not a necessity. And that’s the ultimate goal: creating a financial plan that allows you to live on your own terms.
If David’s story resonates with you, or if you’ve seen yourself in any of the warning signs we discussed, I encourage you to take action. Whether it’s reviewing your retirement accounts, exploring passive income options, or building a succession plan for your business, these steps can set you up for the freedom and peace of mind you deserve.
I’m here to help you create that plan. Let’s work together to ensure that when the time comes for you to step back, it’s on your terms—and with the financial security to support the life you’ve always envisioned.
Schedule your free consultation with Ryan Sullivan today to begin building your Wealth Blueprint. Feel free to reach out with any questions or to discuss how we can work together to help you achieve the life you’ve always envisioned.
Remember, financial abundance is just a plan away.
Let’s start crafting yours.
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