PLANNING FOR RETIREMENT AS AN ENTREPRENEURPLANNING FOR RETIREMENT AS AN ENTREPRENEUR
August 1, 2019
As an entrepreneur, the last thing on your mind is retiring but as we all know we can’t be young forever. There comes a time when you are inactive to work and you have to step away. As much as you don’t want to admit it, you are someday not going to be as agile as you are now.
What plans do you have for retirement? How confident are you that your current income will be enough to sustain you at that point?
You probably believe that your business will sustain you long until after retirement. Unfortunately, I do not think that you are willing to take that risk and leave your old age to chances. Rather than solely depending on your enterprise, you can start preparing for retirement by exploring other alternatives while still running your business.
A more diverse retirement plan guarantees your financial freedom and peace of mind. Wouldn’t you want to have that after working relentlessly for years?
Here are five (5) ways to tackle retirement planning as an entrepreneur;
1. Establish for yourself a stream of passive income: The idea of making profit from your business while you have money coming in from multiple sources is the exact definition of living the dream, you must agree with me. Having income from sources that do not necessarily require your active participation is an extremely important ingredient to having a comfortable retirement. You could create income streams based on your interests, talents or invest in bonds, stocks, real estate, etc.
2. Setting up a Self-Running Business: The concept of entity in business suggests that it is more sustainable for a business to be separate from its ownership. This is especially more important if you have any plan of earning from your ventures after your active years. Even before retirement, wouldn’t it be beautiful knowing that you can go on a vacation and still have your business running smoothly? Although it isn’t always easy for the business owner to do this, it can be very rewarding if planned strategically. It could take years to build your business to this point but in the long run, you will find that it is beneficial both to you and the business.
3. Get yourself a Financial Advisor: Running a business can be ardent, leaving little time to plan for your future and financial security of your family. It is quite unadvisable to run your business without hiring the service of a Financial Advisor as he/she has the experience and expertise to develop and manage your long-medium term financial plan, identify risks and plan your personal finances in coordination with your business finances. A Financial Advisor’s job is to make sure that your income continually meets your obligations in the short, medium and long term which includes your retirement phase.
4. Have a Home of your Own before Retirement: It’s not too early to start thinking and working towards having your dream residence. Owning a property is a big deal in today’s world. It will save you the stress of paying the rental fee or the burden of deducting a huge sum from your account to purchase upon retirement. Your home is one of the biggest investments you’ll ever make and is recognized in our society as an important symbol of security and stability.
5. Open a Retirement Savings Account: When it comes to planning for your retirement as an entrepreneur, it is believed that there’s nobody else to look out for you. Well, we are here to debunk that belief. As a leading Pension Fund Administrator, we say you don’t have to worry about that, just open a retirement savings account with us. The benefits of opening a retirement savings account (also known as pensions account) are enormous. Your future financial future is secure as you are guaranteed regular income from the time you hit the age of retirement (usually 50 years and above). Also, your contributions are invested to yield valuable returns. Talk of using one stone to kill two birds!
Reward yourself today by planning NOW for your future. You don’t want to spend the rest of your years filled with the regrets of what you could have done better. The earlier you start saving towards retirement, the better for you and your loved ones. You should open a Micro Pension account with us today. Call us on 01-2800800 to find out more