March 6, 2013
According to a recent American College study, 40% of small business owners have no retirement savings or pension plan. Even more, roughly 75% of small business owners have no written plan for how to fund their retirement.
As a small business owner, you likely realize the need to save for retirement, but may have put planning for it on the back burner for now. Many business owners posses the admirable quality of taking care of others before themselves. While this is noble, don’t forget to take care of yourself along the way as well. Jeff Manley, Executive Vice President of Cadence Bank put it well when he said, “Business owners shoulder the most responsibility for their businesses, yet often forget to pay themselves first.”
So, how much should you save for retirement and what IRA plans are available for small business owners? The general rule of thumb is to save between 10 and 15 percent of annual income in retirement savings vehicles. A great option is a self-directed IRA – a tax-deferred retirement account that allows creative, non-traditional investing such as real estate, notes, and private companies. For an in-depth look at more retirement plans available for small business owners, check out our blog post entitled “I Own a Small Business or am Self-Employed – What are My Retirement Plan Options?“.
Saving for retirement doesn’t have to be hard for the small business owner. Just remember to take care of yourself, as well as your employees. The right retirement plan will depend on your strategies and growth goals for your small business. As always, contact our Florida self-directed IRA administration company to learn more about the many ways you can invest in your retirement. Give us a call today at 407-367-3472!