Many Boomers Tap Nest Eggs To Found New Businesses

Another important issue boomers may need help with is replacing any savings invested if their venture turns out to be unsuccessful. Boomer business owners have a shorter time to rebuild their wealth than do younger business people if their investment in their business fails to produce desired financial results, points out Diehl.

"At the same time, many boomers, in what is known as the Sandwich Generation, may also be responsible for providing financially for college-age children as well as aging parents, so their financial plans need to take those obligations into account," Diehl says.

For advisors, there is an opportunity in offering help with business and personal finance issues faced by such boomers, he notes. Boomers who have a clear vision of what their business itself can do may turn a blind eye to other obligations, he says.

There are a lot of pressures and responsibilities unique to the baby boomer business owner, Diehl says. He suggests that advisors press boomer owners to look at their overall portfolio and what role the business has in it, he adds.

Many got into owning a small business because it gives them the ability to call the shots, he observes. So they're looking for a planner who is able to help them take a step back and view their business in terms of their overall financial picture.

"Often, we see that business owners who are using their own assets have their primary focus on running the business," Diehl says. "They tell themselves the business is going to generate the money they're going to depend on in retirement."

The financial advisor should help the owner view those prospects realistically.

"Let's assume the business doesn't go gangbusters," says Diehl. "Consider what percent of retirement income would come from the business. Should there be other sources of income to make sure the client has a sustained plan outside the day-to-day operation of the business?"

The astute advisor can help boomers more effectively plan for their business and personal financial success while freeing their time up to focus on building and growing their business, Diehl observes. "With a shortened time horizon and potential family obligations, boomers especially need to balance their strong sense of confidence with practical counsel," he says.

Other survey findings:

o 67% of boomer business owners consider themselves conservative decision makers rather than risk-takers when it comes to business judgments. In their attitude toward financial investments, they were even more cautious, with 74% describing themselves as conservative.

o 59% say their work-life balance improved after going into business, despite the many day-to-day responsibilities business owners face.

o 55% reported an improvement in their personal financial picture after starting their business, compared to only 25% who saw their financial situation get worse.