Retirement is one of the biggest changes you’re ever going to make. Too often I see people retire, then wish they never did it. They’ve not thought through some of the changes that are likely to happen.
Someday you might want to retire. If you’re like most people you probably haven’t saved enough. If you own a business I can almost guarantee you haven’t. That’s because you think your business will provide more money than it really will.
If you work as an employee for someone you might not have done a plan that allows you to see how much you should save. I’m hoping that you’re under 35 years old and reading this post. If you are, it’ll be easy for you to save. If you’re not it gets much more difficult.
Some of these subjects are crucially important to business owners and others are just things they will be interested in and want to know more about. I think understanding what is crucial versus just interesting will help you know how much time you should spend becoming knowledgeable in these different areas.
I think a lot about 401(k) plans and how they can be best used to help a private business owner reach financial independence. When I speak before advisor groups whether they are financial professionals, attorneys or CPA’s I always emphasize that when working with private business owners it’s crucial that they understand how 401(k) plans can be used to the benefit of the owner Clients.
If a business has less than 25 employees, the advice to a private business owner shouldn’t be how much money they can put away. Instead, we should start with the following question: