Did you realize that one third of all small business owners have not created a retirement plan, such as a 401(k), SEP IRA, Roth IRA or deferred annuity? In fact, many small business owners have not even stopped to consider retirement, either because they are too busy in their endeavors, or because they love their business and haven't considered life after work.
There seem to be a number of mentalities that are causing small business owners to put retirement planning on a back burner. One of the top reasons is that any money earned from the business is already allocated and needed to keep the business running and pay the owner's living expenses. It is especially difficult in our upside-down economy to find extra funds to put toward the future. Many of us are simply trying to get through today.
A second reason for the failure to plan is that many of these business owners are trusting that proceeds from their business will provide for their needs over the full course of their life. While this is a worthy hope, it is not a certainty. We have seen many businesses fail over these past few years. There are no guarantees. What if your business goes under? What if you are injured or incapacitated and can no longer run the business? There are so many factors that could affect your business, making it vital to have a back-up plan where your retirement is concerned.
Some owners have simply avoided setting up a retirement plan because the process seems daunting. These things can easily be overwhelming, but there are a number of excellent advisors that can help direct you in this matter. There are also a myriad number of online resources that can give you excellent guidance at no cost - just make sure that the sources you use are reputable.
The final biggest reason small business owners fail to plan for retirement is simply that they haven't considered it. Many plan to continue running their business until the end of their life. While this is admirable, you may feel differently in 30+ years. In fact, by then, you may be really looking forward to the break. However, if you failed to plan for retirement, you won't have the choice.
Make certain that you plan appropriately for your retirement. Sit down and discover how much money you need to support yourself, and any dependents, and start saving so that you will have enough to cover your needs. It is never too late to start, but don't delay the process any longer. Start planning today so you can have a better tomorrow!
Morris Hall Can Protect You in Today's Litigious Society:
We live in a litigious society, where over 1 million lawsuits are filed every year in America alone. Financial predators are looking for ways to take funds from others and often use litigation as their means to do so. At Morris Hall we provide your assets and your loved ones with important protections that can prevent financial predators from taking advantage of you. We do this through proper and current estate planning techniques. With an MH living trust, we can also protect your property, assets and loved ones from probate, estate taxes, gift taxes, creditors, Medicaid spend-down, conservatorship or guardianship proceedings, ex-spouses and more. A living trust also keeps your asset and beneficiary information private and secure to avoid giving financial predators information to use against you and your family. Without a living trust, this information will be made public. For those living in Arizona, we serve the areas of Phoenix, Mesa, Gilbert, Fountain Hills, Scottsdale, Prescott, Flagstaff, Sedona, Tucson, Sonoita, Arrowhead, Avondale, Goodyear and Tempe. In New Mexico we serve the areas of Albuquerque, Santa Fe, Las Cruces, Rio Rancho, White Rock, Alamogordo, Truth or Consequences and more. Contact us today at 888.222.1328 to schedule an appointment with an attorney in your area!
Contributed by MH attorney and senior partner, Dan R. Morris