Planning for Retirement as a Small Business Owner
If you own a small business, you may not have given much thought to retirement planning. Many of the more than thirty million small business owners in the United States start their businesses to have more freedom and control over their schedules, career goals, and finances. However, retirement planning is often not part of their financial planning, because they make assumptions about the future. They think family members will take over the business, or they plan to sell the business and use the money to retire. However, small business retirement planning is important. Here, we look at the importance of retirement planning and how to choose the right retirement planning company to help.
Start Planning Early
What is retirement planning? Planning retirement begins when you start thinking about how you want your life to look after you stop working. The earlier you start considering this, the smoother your transition to retirement will be. As a small business owner, you have options in terms of financial planning for retirement. As a small business owner, your retirement planning strategies should include a business plan to leave, to ease your transition into retirement. Partnering with the right retirement planning company can help ensure that you have a plan that covers all your bases and facilitates a comfortable retirement.
Evaluate Your Needs
The first step in planning your retirement is to consider the income you will need to live comfortably after you have stopped working. A retirement planning consultant can help you determine this, or you can use retirement planning software to get an idea of what your living expenses will look like before you even start deciding between retirement planning companies. Establishing a clear picture of your needs will help you determine your savings goals. Use your current age and desired retirement age to produce a savings plan that will enable you to comfortably retire later. Many small business owners funnel their available funds back into the business, but it is wise to put some of your revenue into a retirement planning investment fund. Having a nest egg means you will be financially secure, even if you have a health issue or must retire early unexpectedly.
Explore Retirement Plans
Small business owners have access to retirement plans that are not available to employees of larger companies. Talk to your financial advisor about following a retirement planning guide to choose the best plan for your business. The various plans are flexible but, in general, five factors to consider when planning for retirement as a small business owner are who contributes to the retirement plan, how much is contributed, what assets qualify under each plan, the dates on which you can withdraw from the retirement fund, and how long the fund will last once you’ve retired. Considering these factors, with the help of a retirement planner, can help you decide which retirement plan is right for you.
Diversify your investment
Choosing to pay into a 401(k) or an IRA can be beneficial because it helps you lower your tax bill while building your nest egg. You can count on those funds to grow, tax-deferred until you need to begin making withdrawals. You can enhance your retirement security by leveraging retirement planning annuities to create a reliable income stream, and with some good investments and insurance planning, further, diversify your holdings to create a solid financial base for your retirement. A retirement planning consultant can be extremely helpful in strategizing and determining the best course of action for you.
When you start your retirement planning early, you gain the freedom to make some adjustments to your business to shore up your retirement. Look into unique business investments, and do not be afraid to try some unconventional approaches to creating new revenue streams. Set your business up in such a way that it will remain viable once you leave it. A business that can run without you is an asset, whether you are passing it along to a family member or selling it.
Sun Cities Financial Group is a Top Choice for Retirement Planning in Phoenix
If you are a small business owner in need of retirement planning services, Sun Cities Financial Group is an excellent option. Choosing the best retirement planner in Phoenix requires careful consideration of your needs, credentials, reputation, services, approach, fees, and ongoing support. When you need a retirement planning advisor, trust the firm that has served individuals and families in Phoenix, Arizona for over 15 years and is a top choice for retirement planning. Sun Cities Financial Group provides clients with high yields from insured and guaranteed deposits not available in traditional banks and brokerage houses, as well as comprehensive services, a personalized approach, and a transparent fee structure.
In addition to working with more than 6,000 Federally insured banks, all covered by the maximum FDIC insurance protection, we also employ only dedicated and honest professionals committed to their clients’ best interests. Accredited with an A+ from the Better Business Bureau (BBB) for providing outstanding services to our clients, we have been in business since 1998.
Founded to provide safe and guaranteed returns to our clients, we protect our clients’ savings in ways they are not even aware of, and our staff gets excited about the clients’ reactions. When you invest with us, we will go above and beyond to exceed your expectations, and do the work so that you can reap the benefits by earning more interest while maintaining the safety of your principal. When you are ready to begin your journey towards a secure retirement by scheduling a consultation with retirement planning specialists who have your best interests at the heart of everything they do, contact us by calling 623-207-8423 or visiting our website to learn more.