Are You Ready?

Did you know that financial advisors recommend spending no more than 4% of your total retirement savings each year post retirement?  As an example, if you saved $500,000 and retired at 65, you could spend $20,000 a year on living expenses until the money runs out at 90 years old.

Why am I telling you this when I typically write about business ownership?  Because far too many owners won’t even save $500,000 by the time they retire.  Instead, they find other ways to spend their money living beyond their means or putting all the profits back into the company thinking they’ll get it back when they sell.

Saving for retirement along the way is so critical because the chances of you selling your small business for enough to continue living your current lifestyle is very small – like 20% small.  So, here’s my advice today – hire a great financial planner and do your homework to see what retirement vehicles are right for you, but most important – start saving today, not tomorrow!