26 May Options for Entrepreneurial Retirement – Gaining A Real Peace of Mind
At some point in every entrepreneur’s life, they have dreamed of starting their own business. When that newly minted entrepreneur steps away from corporate employment and into the wild west of self-employment, they take on the full responsibility of their financial destiny. Gone are the days of contributing to a matching company 401k plan.
These small business owners are now responsible for setting up and contributing to their retirement plan. According to a recent TD Ameritrade survey 7 in 10 self-employed people are not regularly saving (if at all) for retirement. I recently spoke with Heather Banks, a Certified Financial Advisor with First Bank Wealth Management in Asheville, NC. Heather shared with me her impressions of how retirement savings has shifted over the years. “For too many years, U.S. citizens have been reliant on social security benefits to fund their retirement. Social security is simply not capable of fully funding a retirement with any realistic expectation of maintaining the lifestyle they grew accustomed to during their working years. It is vital that small business owners take advantage of the retirement benefit options available to them, and work with financial professionals (financial advisors, accountants, etc.) to determine which option is the most beneficial for them.”
There are several programs a self-employed person can utilize to help them achieve their retirement goals.
Alex Trodder
Posted at 00:01h, 18 FebruaryMy dad started his own civil engineering firm while we were growing up. It doesn’t surprise me that “7 in 10 self-employed people are not regularly saving (if at all) for retirement.” It wasn’t until he hired a certified public accountant for his business that he set up a retirement plan. The CPA had the knowledge about how to set up regular savings and start investing wisely that was able to get him started.