Early Retirement Blog

According to the National Small Business Association, only 22% of small and mid-size business owners, have set up retirement accounts.   A good article on CNN Money, gives a run-down on the different retirement savings options, available for small business owners.

Having owned and managed a small hotel, prior to starting Green Retirement Planning, I have a pretty good idea of why so few small business owners save for retirement. There are two principal reasons for the low number, treating the small business as a retirement asset, and re-investing profits to grow the business.

Re-investing Profits
It is natural for small business people to try and grow the size of their business, by re-investing the profits, to increase the value and income from their business.

Small Business Retirement Asset
Many small business men and women have traditionally looked at their business as their primary retirement asset.   Most plan to grow their businesses, and then sell the business, to finance their retirement.

However, this is a risky “put all your eggs in one basket”, approach to retirement planning, that places your retirement at the mercy of the business.   Your business may be doing great right now, but as you can plainly see from the current economic melt-down, the situation can dramatically and quickly change.   Can you risk your retirement on economic conditions 10, 15, 20 years down the road?

If you are small business owner, who believes that tax-deferred retirement accounts are only available for employees, think again.  USA Today, has a great article on the different retirement plans available, for small business owners.   Consult you financial planner to find out which one works best for you.

Also Read:
How to Save $1 Million
How to Retire Early
Early Retirement Planning
Early Retirement Software