Small business owners are usually so focused on the daily operations of their business, many think they don’t have the time to look further and plan for retirement. As a result, some entrepreneurs may actually never be ready for retirement. A recent survey by Manta stated that one-third of business owners don’t have any retirement plan.
The retirement plan for some small company owners is to simply sell their latest venture when the time arrives, finally paying themselves off after years of creating a lasting business. Rather than putting all your eggs into a single basket, being preparations for retirement by exploring your options now.
While selling a company is one way to retire, many professionals warn about the risks of relying solely on cash from a sale to bankroll your golden years. Maybe your business experiences a sudden downturn in business or severe property damage. Selling your business may be unprofitable at that point.
Rather, diversify your retirement plan by opening one of more retirement savings accounts. Such retirement plan options come in the form of SIMPLE IRAs, SEP IRAs, self-employed 401(k), or a combination thereof. You may also have to take your employees into account – certain plans, such SIMPLE IRA or SEP IRA, require that you make contributions to your workers’ retirement plans each year that you contribute to your own account.
Investors have always favored precious metals. However, platinum is often ignored, even though it's rarer than silver and gold. What makes it deserves its place on this list is its limited source of supply – even though more platinum is being discovered around the globe, it is still much rarer than silver and gold. Besides its limited supply, platinum is more energy and capital intensive for refining and manufacture.
The most profitable way to invest in platinum is to physically own the metal. It is also possible to enter the platinum futures market or find a platinum index. Another great thing about platinum as a retirement option is its growing demand, both in the investment and industrial spheres.
If you’re planning for retirement, begin by considering where you want to end up – living a humble life in a small apartment, traveling around the world, or somewhere in between. Understanding what consequences you want to create will enable you to start planning.
Retirement objectives, just like any other, work best when they’re measurable, specific, and time-sensitive. You will need to set intentional and realistic financial and retirement objectives so that you can work towards the retirement lifestyle that you want.
Another excellent option for a retirement plan is to make long-term investments that you can set and forget until the time comes. Professional investors agree that purchasing low-cost index funds that invest across entire markets – for instance, the entire U.S. or foreign stock market – is a great way to reduce risks while investing.
Alternatively, you can start investing in target-date funds that adjust the balance of your fixed-income investments and stocks based on your age and the expected time of retirement. These investments can be taken in conjunction with any other steps you take to protect your retirement plan. Speaking to a financial advisor can help with understanding the best investment options for your retirement situation.
If you’re nearing your retirement, you likely aren’t looking to run a business anymore. One excellent alternative is to own a part of somebody else’ business. There is no shortage of innovative startups that emit their shares via crowdfunding websites in order to obtain working capital.
If you manage to find good-looking and profitable companies with high growth potential, their shares could pay high dividends. All you need to start is a couple of hundreds of dollars and you can begin working your way up in this booming environment.
If all of this still seems overwhelming, you can start working with your financial advisor to build a plan that puts you on track for retirement without compromising your existing cash flow or lifestyle. In the end, the best thing any small company owner can do to ensure a comfortable retirement is to begin planning as early as possible.