Do you wish you could have educated yourself around retirement options and invested earlier in life? Well, it’s never too late.
Whether you have a spending problem, haven't been brought up to prioritize it, or lack education on all of this, you can always start now.
Maybe you're a spender and not a natural saver. Maybe you're too much of a saver and don’t spend money when you should. Either way, this can cause problems because there's a difference between spending, investing, and stewarding.
Don't come with a mindset that you have to have a retirement plan because you're using it as a measuring stick of your worth. People have a different set of circumstances than you and they're prioritizing things differently than you at this point.
Retirement is the least of many people’s worries. Maybe there's a reason why this hasn't been part of what you've done up to this point. However, when it's the right time for you, it will be the right time for you, even as a business owner. At least equip yourself with some knowledge right now so you can use it whenever you're ready.
Here are six common retirement plans for business owners:
- Solo 401k
- Safe Harbor 401k
- 401k
- Profit-sharing plan
- Simple IRA
- SEP-IRA (simple employer pension IRA)
Getting Key People Involved
Getting into a retirement plan requires partnership in order for you to navigate the landscape. If you mess up, it could cost you a lot of money. This is something you don't want to do by yourself. Therefore, at some point in your journey, you should have key people involved in what you're doing both personally and in your business.
Partnerships yield transformation and this is definitely an area where you need partners. As your business is growing, this is an incredible benefit not only for your employees but also a great opportunity to minimize your taxes. Get in and have a conversation not only with your tax preparer but also with your financial adviser.
Two heads are better than one. Get into a relationship with a pro who will encourage you and help you plan for your future with the tools that you will use and love. Make sure that you partner up with a financial planner so you understand what you need by the time you retire so you can have the life that you want.
If you want to learn more about common retirement plans, check out Episode 075: Common Retirement Plans for Small Business in 2022.
