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.