Published on
January 12, 2026
How to Monitor Wealth After Selling a Business
Track net worth, liquidity, cash flow and investments after a business sale — use dashboards, diversify holdings, plan taxes, and work with advisors.
Selling a business is a major financial milestone, but managing wealth post-sale comes with unique challenges. Without proper planning, your hard-earned proceeds can diminish quickly. Here's a quick guide to help you stay in control:
- Track Key Metrics: Monitor net worth, liquidity, cash flow, and savings rates regularly to maintain financial health.
- Set Clear Goals: Define short-, medium-, and long-term objectives, and align your financial benchmarks with them.
- Use Technology: Financial dashboards and tax tracking tools simplify wealth management and help you stay organized.
- Diversify Investments: Spread assets across stocks, bonds, real estate, and other classes to reduce risk.
- Work with Advisors: Build a team of professionals, including financial planners and tax advisors, for expert guidance.
Pro Tip: Take a 12-month pause before making major financial decisions to ensure clarity and avoid mistakes. Regular reviews of your financial strategy will help preserve and grow your wealth over time.
Set Up Key Metrics to Track Your Wealth
Identify Your Core Financial Metrics
After a financial windfall, keeping tabs on your money’s movement and status is essential. Start with net worth, which is simply your assets minus liabilities. As R.J. Weiss, CFP and CEO of The Ways to Wealth, puts it: "Net worth is a good measuring stick for yourself, a way to provide feedback on how you're doing financially" [3]. Reviewing your net worth twice a year can help you spot trends and make adjustments as needed.
Another key metric is liquidity - your ability to access cash when necessary. Aim to maintain a safety cushion of three to six months’ worth of essential expenses. This buffer can protect you from having to sell long-term investments during market downturns. Also, keep an eye on your debt-to-income ratio (DTI). A DTI under 36% ensures you have the flexibility to manage unexpected financial challenges [3].
Cash flow tracking is equally critical. This involves monitoring how money flows in and out - whether through operations, investments, or financing [5]. Mismanaging cash flow is the primary reason 82% of small businesses fail [5], and the same risks apply to personal finances after a financial exit. Lastly, measure your savings rate, which is the percentage of your income you’re putting aside. A good target is saving 15% to 20% of your gross income [3].
Create Benchmarks Based on Your Goals
Metrics become far more meaningful when tied to specific goals. To make them actionable, translate your aspirations into measurable targets. For example, you might define retirement success as having $5 million in retirement accounts or generating $150,000 annually in passive income [6]. Traditional guidelines suggest saving 8x your annual salary by age 60 and 10x by age 67 [3]. However, as Jay Zigmont, CFP and Founder of Childfree Wealth, points out: "All of the retirement benchmarks are like a one-size-fits-all shirt. They really fit no one... The key is to make progress each year" [3].
To stay organized, divide your benchmarks by time horizon. For short-term goals (1–3 years), keep funds in liquid accounts. For medium-term goals (3–10 years), use a mix of balanced investments. For long-term goals (10+ years), focus on growth assets [4]. This approach ensures you won’t need to dip into long-term investments for immediate needs. Considering that households typically retain only 35% of a financial windfall after four years [4], setting clear benchmarks can help you avoid common pitfalls and preserve the wealth you’ve worked hard to achieve.
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Use Technology to Track Wealth in Real Time
Using modern technology is essential for managing and preserving your wealth after selling a business.
Set Up Financial Dashboards
After a business sale, manual spreadsheets just don’t cut it anymore. Automated financial dashboards are now a must-have. These platforms sync with thousands of financial institutions - banks, brokerages, 401(k) plans, and even crypto exchanges - keeping your balance sheet up to date automatically [7][8]. Tools like Compound Planning and AssetView consolidate all your accounts into one place, giving you a clear view of your overall financial situation at a glance [7][8].
The best dashboards go beyond traditional accounts and include alternative assets like private equity, real estate, collectibles, and even domain names [10]. Kubera, for instance, offers automatic currency conversion for international investments [11]. As Tina Eaton puts it:
"A robust financial dashboard will bring together all of your assets and financial data to give you a complete view of your wealth in real-time" [11].
Look for platforms that include scenario modeling, which helps you predict how market changes or spending decisions might affect your finances [8]. Some tools even offer estate planning features, like a "Dead Man's Switch" that securely transfers financial credentials to your beneficiaries if your account remains inactive for a set period [11]. Additionally, tracking metrics such as Internal Rate of Return (IRR) can help you compare performance across various asset classes [8].
These dashboards not only simplify managing your wealth but also make tax and investment tracking more efficient.
Connect Tax and Investment Tracking Tools
Your tax responsibilities don’t end after selling a business - they often become more complicated. Investment tracking software automates tasks like monitoring cost basis and identifying tax-loss harvesting opportunities, helping you maximize returns [8].
Tax laws are always changing. For example, updates effective in 2025 permanently limit excess business losses and allow immediate expensing of domestic research costs [12]. Tools with tax simulation features let you model how these changes could affect your long-term financial plans [12]. Staying ahead of these shifts ensures you’re prepared to adapt your strategy when needed.
Choose tools that allow secure, real-time access for your financial advisors [9]. Michael F., CFP, highlights the benefits:
"AssetView gives me a complete view of my clients' financial lives, making it easier to design the right asset allocation across their entire portfolio. It streamlines tax-efficient planning and simplifies preparation for client meetings" [8].
Make sure the platform you select uses enterprise-grade encryption and robust authentication to keep your data secure [7].
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Build and Monitor a Diversified Portfolio
Portfolio Allocation by Risk Tolerance: Conservative, Moderate, and Aggressive Investment Strategies
Once you've sold your business, it's time to shift your investment strategy from a concentrated approach to one that's more balanced. The goal here is to spread your money across various types of investments that don’t all react the same way to market changes.
Spread Investments Across Different Asset Types
Diversification is about owning assets that behave differently in changing markets - for example, when stocks drop, bonds often rise, helping to offset potential losses [15][19].
You can diversify in two main ways: across asset classes (like stocks, bonds, and cash) and within each class (different industries, company sizes, and geographical regions) [13][17]. For stocks, aim to hold at least 25 to 30 companies across various sectors, or simplify this by investing in index funds to gain broad exposure instantly [6]. To add another layer of protection, consider including real estate (via REITs), commodities, or private equity in your portfolio [15][6].
The "right mix" of investments depends on your goals, timeline, and risk appetite. Historically, a portfolio with 60% stocks and 40% bonds has offered smoother returns and less volatility compared to an all-stock portfolio [19]. It’s worth noting that large company stocks have, on average, lost money about one out of every three years [13]. This is why pairing growth-focused assets like stocks with more stable ones like bonds is so important. Also, evaluate whether your portfolio generates enough income to cover your expenses or if you’ll need to dip into the principal [18]. For those relying on their wealth post-exit, experts suggest sticking to an annual withdrawal rate of 3% to 5% to help preserve your nest egg [18].
| Risk Tolerance | Stocks | Bonds | Cash | Other Assets |
|---|---|---|---|---|
| Conservative | 30% | 50% | 15% | 5% |
| Moderate | 60% | 30% | 5% | 5% |
| Aggressive | 80% | 10% | 5% | 5% |
Just like tracking your net worth or cash flow, keeping an eye on your portfolio is essential to achieving your long-term financial goals. Regular reviews ensure your diversification strategy stays effective as markets shift.
Review and Adjust Your Portfolio Regularly
To maintain the benefits of diversification, it’s important to review your portfolio on a regular basis. Over time, market fluctuations can cause some investments to grow faster than others, shifting your portfolio away from its intended risk balance [14][20]. Experts recommend rebalancing when an asset class drifts 5–10% away from your target allocation [16][20][22].
Instead of selling high-performing assets and triggering capital gains taxes, consider using dividends or interest from those assets to buy into underrepresented areas of your portfolio [16][17]. Another option is to direct new contributions toward underweighted investments to restore balance [14][21][16]. As Investor.gov puts it:
"By cutting back on current 'winners' and adding more current 'losers,' rebalancing forces you to buy low and sell high" [14].
During these reviews, take a closer look at individual stocks, bonds, and funds for any red flags, such as changes in management, shifts in strategy, or consistent underperformance compared to benchmarks [20][23]. Use indexes like the Dow Jones US Total Stock Market Index for stocks or the Barclays Capital US Aggregate Bond Index for bonds to gauge performance [20][22]. Also, check that no single stock or bond holding exceeds 5% of your total portfolio to avoid overexposure to one issuer [20].
If you’re still working, it’s wise to keep 3 to 6 months of living expenses in an emergency fund. Retirees, on the other hand, should aim for 6 months to 2 years of portfolio withdrawals in cash to help ride out market downturns [23].
Work with Financial Advisors for Ongoing Support
Managing wealth after a business sale requires a fresh set of skills and a team of professionals. Studies show that individuals who partner with financial advisors are more likely to meet their financial objectives [25]. This becomes particularly important when navigating the complexities of a liquidity event.
It’s not just about tracking your finances - it’s about making timely, informed decisions. As Ryan McGregor and Tom Hodgson from Lutz point out:
"The M&A process doesn't end when the deal is signed. In fact, some of the most important decisions happen after closing" [24].
Without expert guidance, you risk making impulsive choices or concentrating too much of your wealth in one area. This is where structured advisory support becomes essential.
Use Fractional CFO and Advisory Services
Professional advisors bring the expertise needed to turn your business success into a well-planned personal wealth strategy. Justin Fisher of Moss Adams highlights a common oversight among business owners:
"Business owners are very intentional about the value creation of their business; but at times, they aren't as intentional about the value creation of their wealth as a family operator" [27].
Fractional CFO and advisory services address this gap by applying the same strategic approach to your personal finances that you once used for your business.
These services can help you create a personal balance sheet, estimate your lifetime spending needs, and ensure your business sale proceeds can support your lifestyle after exiting the company. This is critical, as 70% of business owners depend on the proceeds from their business sale to fund their post-exit lives [26]. For example, Phoenix Strategy Group offers fractional CFO services that include financial modeling, KPI tracking, and aligning sale proceeds with long-term goals. In 2024, they helped SpokenLayer CEO Lauren Nagel navigate a challenging business period, delivering financial strategies that outperformed previous full-time CFOs [30].
Integrated support across various financial disciplines is where the real benefits lie. Fisher warns of the challenges caused by fragmented advisory:
"If you have several people managing accounts that are both buying and selling securities, that may come with complicated tax reporting and potentially higher costs; and that creates a competitive environment instead of a holistic partnership" [27].
A coordinated team ensures that your tax advisor, estate planner, and financial consultant work together seamlessly, avoiding valuation issues and unnecessary costs.
Get Customized Support for Complex Needs
As your financial situation becomes more intricate, having a tailored advisory team is crucial. Off-the-shelf financial advice often falls short when dealing with the unique challenges of post-exit wealth management. You need experts who can handle tasks like cash flow forecasting with irregular income, tax planning for capital gains, and managing follow-on investments.
When choosing advisors, look for those with fiduciary status, meaning they are legally obligated to act in your best interest. Certifications like Certified Private Wealth Advisor (CPWA) or Certified Financial Planner (CFP) can also indicate specialized expertise [4][29]. Philip Kendall from Charles Schwab emphasizes the importance of a collaborative approach:
"Managing significant wealth is too complex for any one person to handle alone" [28].
Your team should include a tax advisor to minimize liabilities, an estate attorney to protect assets through trusts, and financial planners who understand the transition from illiquid business ownership to liquid assets [2][4].
Timing is another critical factor. Engage a wealth advisor at least 18 months before selling your business to allow for thorough tax planning and the setup of trusts or foundations [1]. After the sale, consider taking a "12-month pause" before making major financial decisions. This adjustment period is vital, as households often retain only 60% of a financial windfall within the first year, and that figure can drop to 35% after four years [4].
Conclusion
Keeping track of your wealth after selling your business is no small feat - it takes a mix of structured planning and expert advice. Without a clear plan, your hard-earned wealth can dwindle faster than you might expect, so taking action early is key to protecting what you've built.
Start by crafting a solid Investment Policy Statement (IPS). This document should outline your asset allocation, selection criteria, and guidelines for managing and maintaining your portfolio [2]. To make things even clearer, divide your assets into specific "buckets" based on their purpose: one for immediate living expenses, another for opportunistic investments, a third for globally diversified markets, and a final one for legacy goals. This approach helps balance your short-term needs with your long-term aspirations [2][4].
As discussed earlier, combining technology with professional expertise can elevate your financial strategy. Build a team of trusted advisors, including a fiduciary financial advisor, a CPA, and an estate planning attorney. Together, they can help you create a plan that’s both tax-efficient and legally secure [4].
Take care of the basics right away: deposit your initial proceeds into FDIC-insured accounts, update your estate documents, pay off high-interest debt, and get umbrella liability insurance for added protection [4][31]. After that, give yourself some breathing room. A 12-month pause before making major financial moves can provide the emotional and strategic clarity you need [4]. Make it a habit to review your financial health quarterly - check your net worth, cash flow, and investment performance against your goals to ensure you’re staying on track [32].
FAQs
What financial metrics should I focus on after selling my business?
After selling your business, keeping an eye on key financial metrics is crucial to managing your wealth effectively. Start with cash flow - this means understanding how your income stacks up against your expenses. You’ll also want to regularly assess your net worth and liquidity to make sure you have enough readily available funds to cover your needs.
It’s also important to factor in tax liabilities, like capital gains taxes from the sale, and monitor how your investments are performing. If you still hold assets tied to your former business, consider diversifying your portfolio to minimize risks. Don’t forget to track any earn-out or holdback payments to ensure they’re received as expected - on time and in full.
Navigating these financial complexities can be challenging, but working with seasoned professionals, like the team at Phoenix Strategy Group, can offer valuable insights and support along the way.
How can I use technology to manage my wealth after selling my business?
Technology has become a game-changer in managing wealth after selling a business. With modern financial tools, you can bring together all your assets - bank accounts, investments, real estate, and equity stakes - into a single, user-friendly dashboard. This makes it easier to keep track of your cash flow, asset allocation, and overall financial picture. Plus, AI-powered analytics can take it a step further by spotting potential risks, recommending diversification strategies, and creating tax-efficient plans. All of this helps you make smarter decisions without the headache of crunching numbers yourself.
If you'd rather take a backseat in managing your wealth, technology makes it simple to collaborate with financial advisors. Tools like cloud-based bookkeeping software, fractional CFO services, and real-time financial dashboards let you securely share data with your team. Companies like Phoenix Strategy Group offer advanced solutions that handle automated reporting, budgeting, and scenario planning. This way, you can keep your finances organized and focus on what’s next.
Why is it important to diversify your investments after selling a business?
Diversifying your investments is key to safeguarding your wealth after selling a business. By spreading your assets across various investment types - like stocks, bonds, real estate, and other opportunities - you reduce the risk of being overly dependent on a single asset class. This strategy helps protect your wealth from market ups and downs.
A well-diversified portfolio not only balances risk but also positions you to navigate shifting economic conditions more effectively. Collaborating with seasoned financial advisors can further refine your strategy, aligning it with your personal goals and comfort with risk.
