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If you're like most business owners, you tend to put all your money back into the business. In fact, 45% of a small business owners’ net worth is tied up in their business1. But relying on your business to be your sole source of retirement income is like putting all your eggs in one basket. Here are some questions business owners should consider about retirement planning:
Consider that only 3% of start-up entrepreneurs acquire an existing business2. This means only 3 out of 100 people may even be in the market to consider buying your business. So it’s especially important to have a retirement plan that isn’t solely dependent on your business. Fortunately, there are a variety of retirement planning options that can help address the unique needs of business owners, but many are not aware of them.
1 Source: LIMRA Small Business Owners, 2009
2 Source: "Business Creation in the U.S." Small Business Administration, Office of Advocacy Report, 2010
The right mix of qualified and non-qualified retirement plans is a good start to your retirement savings. As a small business owner it’s important to set up the right retirement assets to meet you individual needs while providing tax advantages. Consider: