Categorized | Business

Here’s Where We Drop the Ball

By Tom Irmen

The truth is that if most small business owners were as adept at planning for their retirements as they are at managing the day-to-day activities of their businesses, they would have a lock on their futures.  So why do so many entrepreneurs put off planning for retirement?  Well, for starters, we’re busy, not to mention that retirement is a long way off for many of us.

That’s what you think.  I’m 66 years old, and the span of time from age 35 to today was a little more than the blink of an eye.  You simply will not believe how time accelerates as you age.  And the longer you postpone planning for your retirement, the greater the risks are that your dreams for the future may not live up to your expectations.  The bottom line is that the sooner you start planning, the more secure your retirement will likely be.

Time is of the essence in planning for your future, and you may be well advised to seek the advice of a qualified financial planner in your efforts, as there are far more moving parts to your retirement plan than you might have imagined.  In addition, there are numerous uncertainties as well.  Will you be able to count on the availability of Social Security?  Will Medicare become unaffordable?  Will you outlive your retirement savings? Will you require expensive in-home care as you age?

I would not recommend going it alone when planning for your retirement.  A qualified planner – and here’s where it gets sticky – who puts your goals ahead of theirs is worth their weight in gold.  But start today.  The earlier you start planning, the higher the investment risk tolerance you can accept.  And if things don’t go exactly as you planned, you will likely still have ample time to recover.  Taking these same risks later in life can have unintended negative consequences that you may never be able to fully recover from.

But won’t the sale of my business at retirement be enough to ensure a secure future? Perhaps, if you want to put all your eggs into that one basket.

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