Small-business owners pour an exorbitant amount of time, energy, and resources into building their companies. Small business owners are the true backbone of our economy, and the daily whirlwind of fulfilling professional priorities, personal financial planning often ends up on the back burner.
Many entrepreneurs fall into the trap of viewing their growing business as their sole retirement plan. Others start a basic retirement plan when launching the company and never review whether it still fits their evolving needs.
The Risk of Operating Without a Roadmap
Simply owning a business does not automatically translate into having a secure retirement strategy. Relying solely on the hope of selling your company or passing it down to family can easily backfire.
Consider these statistics:
- One-third of small-business owners do not have a retirement strategy in place.1
- 34 percent plan to look for new job opportunities after they retire from their business.2
- More than 40 percent plan for their retirement to begin after age 65.2
Life is full of surprises, and delaying retirement isn't always an option. Unforeseen health challenges can force an early exit and only 31 percent of retirees report being very confident in their ability to cover medical expenses during retirement.3
Steps to Take Right Now
To retire on your own terms, the first step often is transitioning from a passive mindset to a proactive strategy:
- Consult with a professional: Schedule an initial consultation with a financial advisor who regularly works with small business owners and understands the challenges you are facing.
- Define your ideal retirement: Clarify your target retirement timeline and the lifestyle you want to enjoy.
- Build strategies to bridge the gap: Identify the concrete actions needed to bridge any gaps between your current assets and your future income requirements.
- Hold yourself accountable: Do not let the daily demands of business ownership derail your personal long-term financial health.
Read the complete e-guide, 5 Retirement Strategies for Small Business Owners.
At Evergreen Financial Partners, we know how tough it is to balance personal and professional goals. If you are ready to build a comprehensive retirement roadmap, contact Chad Cole today at (208) 904-6146 or email Chad@EvergreenFinancialPartners.net to discuss your next steps.
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1. SBECouncil.org, 2022
2. AllBusiness.com, 2022
3. EBRI.org, 2022