How to Think About What's Next After a Sale

Structure your post-exit financial strategy with concrete allocation frameworks and decision trees for business owners.

  1. Calculate your new baseline numbers. Start with net proceeds after taxes, fees, and any seller financing. Subtract 12-24 months of personal expenses to establish your liquidity floor. This cash stays in high-yield savings or money market accounts paying 3.5-4.5% APY as of 2026. Everything above this floor gets allocated strategically.
  2. Split remaining proceeds into three allocation buckets. Use a 40/40/20 framework as your starting point: 40% in conservative investments (bonds, CDs, treasury securities), 40% in diversified growth investments, 20% for opportunistic moves. Adjust percentages based on your age and risk capacity. If you're under 50, consider 30/50/20. Over 60, try 50/30/20.
  3. Set a 6-12 month waiting period before major decisions. Don't buy real estate, start new businesses, or make large investments immediately. Post-exit decision-making often suffers from identity shifts and lifestyle inflation pressure. Use this period to interview fee-only financial advisors and tax professionals. Your brain needs time to adjust to different risk parameters.
  4. Build your new income replacement strategy. Calculate what annual income you need from investments. Use the 3.5-4% withdrawal rule as a baseline — if you need $200K annually, you need $5-5.7M invested. If your proceeds fall short, plan for part-time work, consulting, or board positions to bridge the gap. Don't assume investment returns will exceed historical averages.
  5. Address tax optimization and estate planning gaps. Exit proceeds often push you into higher tax brackets and estate tax territory. Review your state tax situation — some states have no capital gains tax. Consider moving before the sale closes if timing allows. Update estate documents to reflect new asset levels and beneficiary needs.
  6. Plan your next professional chapter deliberately. Decide whether you want to start another business, invest in others, or retire. Each path requires different capital allocation strategies. Angel investing typically allocates 5-10% of net worth maximum. Starting fresh requires 2-3 years of operating capital plus your personal liquidity floor.