Survival in the US market for us business owners has never been easy, in spite of it being one of the most lucrative markets in the world. Small businesses from tech to moms and pops keep popping up every now and then but they may vanish just as easily. As per statistics 28.8 million businesses in the US are small business i.e. having less than 100 employees with the looming threat of only 50% survival chances as their fifth year unfolds. This makes retirement plans for small business owners crucial step to safeguard their family before they plan to retire.
To sustain, we need to set serious goals and be ready to adapt and evolve quickly to the changes around us. So, we often lose ourselves in drafting plans and implementing strategies for the business. Our business becomes our baby to be taken care of and nurtured with extreme devotion.
Meeting up with too many routine chores and stresses, and fighting the looming threat of survival, keeps us on our feet, and thus maybe along the way, we often forget that even while our business is our top priority to a secure future, retirement planning should simultaneously be considered on the same foothold.
Well, taking years to settle my business, by the time I got a chance to lift my head up I realized I was already standing on the threshold of 40. It had never really bothered me until then, as I was secure that I would be leaving behind a well-settled legacy for my family to inherit even though I had lost a good many years by not beginning my personal investments when I was in my 30’s.
Here is more information on retirement planning for small business owners.
But it was the struggle of the moms and pops business owners in their 60’s and 70’s which spurred on the need for an immediate and stringent retirement planning, within me. All their life these business owners had invested their assets and wealth thinking that their business sale would fund their retirement but when the time came, they were left disappointed. It was not easy for them or their children, who did not want to continue with their parent’s business, finding other sellers to take over and hand them liquidated asset in return.
According to a survey by the Financial Planning Association/CNBC, it was found that almost 75 to 78% of the business owners targeted the funding of their families financial interest by the sale of their business. It invoked in me the need to establish an effective wealth plan so that my family could reap the benefits after my exit. This is when I learnt that expertise in the matters of retirement planning lay with skilled financial planners who had an array of strategies up their sleeves to help us with effective investments and schemes.
Here is an interesting article on why small business owners aren’t saving for retirement.
They recommended savings as per retirement calculator advising us on how much money we would be required to save annually and for how many years, they assisted in planning an exit plan depending on the changing markets, helped us in chalking out schemes which would cover family members and maximizing our investment returns as well as monitoring our investments to help us retire in grace and leave behind a smile on the faces of our family members.
Business owners in strive to maintain business often forget to invest for their retirement intelligently. Increasing awareness among the business class is gradually helping them to invest wisely and safeguard their family when they are no more. Do you want professional help and advise on this matter? You can get in touch with our service professionals at Flagship Financial. Contact Flagship Financial.