“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” Robert Kiyosake on Financial Planning
Am I Protecting My Financial Future?
Retirement and tax planning are both very important as you begin to accumulate wealth through your business. Uncle Sam is out there ready to take his share of your success. Most of us don’t have the knowledge or desire to know what the best course is for investing, growing and protecting our wealth. That doesn’t mean it isn’t a critical matter that needs to be addressed. Finding the right person to handle your investments is as personal and important as choosing a doctor. Getting recommendations from friends and setting up appointments to interview financial advisors is the best way to find the one who is right for you. Having the right partner to help you with this important aspect of your life also gives you one less thing to worry about.
According to an October 2016 BMO Wealth Management survey of small business owners, most are woefully unprepared for retirement. The survey found that 75% of business owners between the ages of 45-64 had saved less than $100,000. Only 8% had saved more than $500,000. 90% pay themselves less than $100,000 and have very little extra after paying their personal bills. Most consider the business their retirement, so almost all excess money gets plowed back into the business. There are countless stories of business owners who find themselves ready for retirement. However, the value of the business is not enough to maintain the lifestyle with which they have grown accustomed. This “eggs in one basket” approach of financial retirement planning can be a very risky course.