By Bigg Success Staff
Bigg on Small Business
Small business owners have some incredible opportunities to prepare for retirement. Yet many entrepreneurs don’t take advantage of them.
Sharebuilder Advisors, LLC recently released their second annual Small Business Annual Retirement Trends survey (SBART). The survey, conducted by Harris Interactive, found that nearly half (47 percent) of small business owners are not adequately prepared for retirement.
What about you?
Are you building a business that can be sold?
You may enjoy a great income from your own business, but that won’t necessarily mean much when you’re ready to retire. If you aren’t there to do the work, will you still be able to draw your income? If so, you probably have a saleable asset. If not, get it to the point where it is, if possible, or divert money to other assets of value.
Do you regularly contribute to a qualified retirement plan?
Small business owners can build a significant portfolio of assets through a qualified retirement plan. Find an advisor who can explain your options so you get the best plan for you and your business.
Your advisor will help you set up a plan that’s not “top-heavy” (i.e. you’re not getting an unfair share compared to your employees), but still meets your retirement needs.
Have you considered a second business?
If your first business can be sold, this may be less of an issue. Even then, why not double the fun? If your first business isn’t saleable, and it’s difficult to see how to turn it into an asset that can be sold, this may be your best move.
There are many ways to do this. However, it’s not as easy as it may sound. Many entrepreneurs succeed wildly with their first business only to get tripped up by their second business.
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Do you own any income-producing real estate?
If your business isn’t saleable, take the profit from it and invest wisely in real estate to build a significant nest egg. Real estate offers tax-sheltered income, growth in net worth, and an asset that bankers love.
Another nice thing about real estate is that professional management is available in almost every market. So it’s easy for you to own, while someone else manages. That way, you don’t get distracted from your core business.
Many business owners don’t spend enough time planning for their retirement. The years just tick by and the next thing you know, you’re ill-prepared for what should be your golden years. Don’t make this mistake – if you haven’t started already, get started today!