Retiring as an Entrepreneur…
Putting some away for tomorrow!
When you’re in business for yourself and everything is going grand, Remember that saying, “Don’t put off for tomorrow what you can do today.” At some point in your life you’ll have the desire to lay back and relax, so even though the rat race is so far behind you, there is still a need to think about your tomorrow.
We’ve been told for years the sooner the better, I’m always amazed at what can be accomplish for those golden years, when you start early and how what you do today will have a direct effect on your tomorrow’s lifestyle.
As a business owner you have many different options of starting a retirement plan:
You have the Self – employed 401k or Solo 401k, it’s flexible and works much like an employer’s 401k also having a matching contribution. The cap for total contributions is $44,000.00 unlike with employer 401k plans.
Another option is the SEP or Sep IRA (simplified employee pension). They are basic and easy to understand and also offer low maintenance costs. Your contributions are tax deductible and you can contribute up to 20% of your net self-employment income and 25% of your salary as an employee of your own corporation. If your income fluctuates, so can your contributions
Just be mindful and do your research, planning will be the key for a good retirement, follow these steps to get started:
1. Determine how much you will need annually to live comfortably and how much time you have until your retirement. Including wills, beneficiaries, estate planning and such are very important.
2. Having multiple avenues of saving work best, hopefully social security, pension and stock & mutual fund investments.
3. Be creative with your current daily expenses so that in tomorrow you won’t have to worry, ask yourself, “Does this fit with the goals I’ve set for my life?
4. Prepare for inflation. Educate yourself on today and tomorrow’s economy as well as as with every major purchase.
One final bit of advice is to stay healthy, in our senior years; health care is the biggest drainer of our resources!
Click here for a retirement calculator.
