Manage Your Money Mondays - Small Business Owners and Retirement

Why should a new business owner be thinking about Retirement?
If you have a business plan - even a one-pager - the very last (but not least) section should address your Exit Strategy. Eventually, you will exit from your business venture. Why not exit on terms that are most favorable to you?
REMEMBER: As the years go by, it takes a larger (and more painfully difficult to find) chunk of your earnings to build a nest egg for retirement.

Most of my clients are, in fact, planning to retire from the businesses they are running now. Some may start new ventures later, but the firms that they are now nurturing are also their means for building wealth. Retirement planning, therefore, is a key strategy for right now, not the future.

So, how does a savvy business owner address the issue of retirement planning -- along with all the other challenges that come with business ownership? The short answer: Face it head-on and treat it like the necessary expenditure that it is.

Retirement investment funds should be in your budget, just like every other planned monthly cash outlay. Whether or not this line item is in your corporate budget, your personal budget, or both depends partially upon how your business is structured. Consult your financial planner and tax advisor for the best approach. Sub-S corporations can manage this process a bit differently from LLCs, for example.

The bottom line: You gotta do it! For a perspective on the retirement realities and the impact of timing, see this Facebook video from Pete "The Planner" Dunn.

E-mail us with your questions, or leave Comments below, about how to reach your business goals.

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