Don't Bet On Your Business To Fund Your Retirement

If you own your own business and business is good, your plan might be to fund your retirement by selling your company someday. But as Entrepreneur writer Sujan Patel puts it: your business isn't a retirement plan.

Betting on your company is a risky way to fund your retirement. If your industry or your business slows down, your future savings are at risk. Here's how Patel explains it:

That's why it's so important to set up a traditional financial cushion to ensure your financial security instead of betting on selling your company in a few years and rolling it into your next successful venture.   You can work out a complex investment strategy with your financial advisor across stocks, bonds and mutual funds, or you can simplify the process and set up a no-fuss plan.

If you're a small business owner and you haven't started investing, it's something to consider. There are plenty of options for saving for retirement if you're self-employed.

Patel offers more retirement advice at the link below.

It's Never Too Late to Invest Wisely. Just Don't Raid Your Retirement Funds. [Entrepreneur]


Comments

    This is very specifically focussed on the US. Try setting up a 401k plan in Australia and see how far you get... sigh.

    It actually would have been a nice little article if it mentioned small business CGT concessions, retirement contributions etc for people.

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