Retirement concerns cause real anxiety for many Americans.
A common estimate is that retirees need roughly 80 percent
of their current income to maintain their standard of living.
Yet, according to a 2017 survey by small business information
company Manta, more than one-third of small business owners
(SBOs) have no retirement savings plan at all.
For SBOs, socking away money for the future may seem like a
distant need. In fact, the Principal’s Well Being Index℠ found that
a whopping 22 percent of SBOs never plan on retiring, while
three-quarters of respondents plan on retiring after age 60.
However, uncertainty about Social Security, Medicare, pensions,
and tax legislation makes it more important than ever to take action to help secure a comfortable retirement. SBOs need to diversify their balance sheets and grow personal wealth, as well as the
value of their businesses. In addition, providing employees with
retirement savings vehicles can give them peace of mind, help you
attract new talent, retain talent, and provide potential tax benefits.
Fortunately, today’s SBOs have access to a variety of retirement
plans and strategies that can help them achieve all of these goals.
• WEALTH BEYOND YOUR BUSINESS •
If you’re counting on wealth from your business to sustain you in
your later years, you need to first look at a succession plan. Many
business owners lack liquidity, as the wealth they have built lies in
the business and is only accessible if the business can be sold, says
Jamie Hopkins, associate professor of taxation at The American
College of Financial Services. Determining who will lead your
INC. STUDIO IN PARTNERSHIP WITH PRINCIPAL
How Small Business
Owners Can Banish It
Small business owners
have unique opportunities
to invest in their retirement.