As a business owner, I can certainly understand both the rewards and challenges of entrepreneurship. One area that is easy to overlook for many business owners is planning for your eventual retirement.

We often get caught up in the day-to-day of running the company, and the idea of looking that far into the future becomes pretty foreign. Still -with some forethought now – you can set yourself up for financial confidence down the road. Here are a few tips:

First, take time to realistically estimate your retirement income needs.

Consider your desired lifestyle, healthcare costs, and life expectancy. An advisor like myself can help calculate the required nest egg and savings rate to reach your goals. The earlier you start saving, the more your funds can grow through compounding investment returns.

Next, establish a tax-advantaged retirement plan for your business.

Examples include a Solo 401(k) or SEP IRA. Consistently contribute each year, seeking the maximum allowable deductions to lower your taxable income. You may also want to invest those savings into low-cost, diversified funds like index ETFs. Target date funds automatically adjust your asset allocation over time. Everyone should approach this based on your unique situation, and a professional can help determine that.

In addition to personal retirement savings, build equity value in your business.

Document processes, cross-train employees, and create a transition plan. A business that runs smoothly without you will be both more profitable and more marketable if you eventually look to sell or transfer ownership.

By taking a proactive approach, you can feel confident about your financial confidence in retirement, whether by selling your business interest or simply stepping back from daily operations.

I’m happy to discuss long-term projections and wealth management strategies tailored to your small business needs. Please don’t hesitate to reach out with any questions.


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
ETFs trade like stocks, are subject to investment risk, fluctuate in market value, and may trade at prices above or below the ETF’s net asset value (NAV). Upon redemption, the value of fund shares may be worth more or less than their original cost. ETFs carry additional risks such as not being diversified, possible trading halts, and index tracking errors.​
The target date is the approximate date when investors plan to start withdrawing their money. The principal value of a target fund is not guaranteed at any time, including at the target date.
No strategy assures success or protects against loss.
Securities and advisory services offered through LPL Financial, A Registered Investment Advisor. Member FINRA/SIPC.