The freedom point is the specific financial threshold at which a business owner has accumulated enough wealth to be financially independent, no longer needing the business to sustain their lifestyle.

The freedom point is not retirement. It is optionality. An owner who has reached the freedom point can choose to keep running the business because they want to, not because they have to. That shift in the nature of the relationship between an owner and the business is one of the most significant transitions available in a business owner’s financial life.

Reaching it requires knowing the number, the precise after-tax net worth at which financial independence is achieved given the owner’s lifestyle, longevity assumptions, and legacy goals. Most business owners have never calculated it with precision. They have a vague sense that the business will “take care of it” without having verified that the math actually works. The freedom point calculation is the reality check that either confirms the plan or surfaces the gap while there is still time to close it.

Knowing the freedom point changes the decisions made about the business and about life after it. See how Wefinx approaches exit planning.

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