You Built the Business — Now Build the Future: Financial Strategies With 1891
August 20, 2025
August is National Black Business Month, a time to support and acknowledge Black-owned businesses across the nation. It’s also the perfect opportunity for all entrepreneurs to ask the following question: How do you protect the legacy you’ve worked so hard to build? Enter annuities.
Someday, the time will come when you’ll need to retire from daily operations. A thoughtful, well-planned exit strategy means you’ll be able to maintain income stability and peace of mind well into your golden years.
But because entrepreneurs have special considerations, here’s how to decide if an annuity is right for you.
What Happens After the Hustle? Planning for the Transition
Business owners can be so focused on business operations that they often overlook personal retirement planning. Maybe you’ve just sold a big-ticket item worth $100,000, and the last thing on your mind is thinking about your retirement. But just imagine for a moment intentionally turning that lump sum into lifetime income. You can do that with annuities.
Annuities work later in life, too. Let’s say Linda sells her art gallery after running the business for almost 40 years. She could let the money from the sale sit in a low-interest savings account — or she could have her money work for her by investing a portion into an annuity. In this scenario, she’d be able to secure lifetime income alongside her Social Security, savings, and other investments.
How Annuities Offer Stability After Stepping Away
It’s easier to weather the risks of financial ups and downs when you’re young and building the business of your dreams. But once you enter retirement, the predictable, lifetime income offered by an annuity can feel like a welcome breath of fresh air.
Different types of fixed annuities fit different goals and needs. For payouts that start right away, an immediate annuity may be the answer. In terms of long-term planning, deferred annuities accumulate tax-deferred cash over time and usually won’t pay out for many years to come. Fixed annuities are considered conservative financial vehicles, with predictable payments not tied to market performance.
If you decide to pass your business on to your children, keep in mind that the company’s success (or failure) is then out of your hands. Purchasing an annuity will lock in your retirement income, no matter how the business performs once you’re no longer at the helm.
Although great for long-term planning, annuities do have surrender charges. This means you can’t access the bulk of your funds for many years without incurring a penalty, depending on the product.
Making the Most of Your Legacy
No matter your age or stage in life, it pays to think about what the future of your business might look like when you’re no longer in charge. The right financial strategy can protect both you and your loved ones.
Life insurance can help heirs pay the bills or even support the surviving business partner in the event the unexpected happens. Succession planning goes so much smoother when all parties have the financial liquidity needed to make important decisions during this transition.
If you end up selling your stake in the company and retiring instead, putting some of that money into annuities can support you with stable income down the line.
Annuities serve another purpose, too: Consider using a portion of the sale of your company to purchase both annuities and life insurance for your children or grandchildren. You can set them up with healthy financial futures and create the legacy of generational wealth.
Talk to a Financial Professional Who Understands Business Owners
1891 Financial Life understands the unique needs of business owners all year long — not just during National Black Business Month. If you currently own your own business, we offer customized guidance to help you reach your retirement goals, plan for succession, and secure your future.
At 1891 Financial Life, we specialize in providing tailored insurance solutions that cater to diverse needs. Our team is equipped to help you navigate these challenges with expertise and compassion. Contact us today for personalized assistance and to explore your options.
About 1891 Financial Life
Our culture is about looking out — for you, for others, for family, for the community. That is how we go “Beyond Life Insurance.”
At 1891 Financial Life, we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. In 2023, 1891 Financial Life was listed by Forbes as one of “The World’s Best Life Insurance Companies.”
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.