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Plan for Retirement

Part of the responsibility of a small business owner is to plan for retirement. The following are a few things for your consideration:

  • Don’t count on Social Security. When Social Security was first enacted, the average life expectancy for a male was 59 years, yet social security didn’t start paying benefits until age 62. ( smart move on the part of government). Today the average life expectancy is 85; that may give you a clue as to future problems. Studies show that by the year 2030 more than two-thirds of the people alive in the U.S. will be over 60. When planning for your retirement, plan for at least another 30 years of life after retirement, and eliminate social security as part of the retirement income.
  • Keep your retirement funds safe. The two biggest financial fears are losing money and running out of money. The best person to manage your retirement fund is “you”. That does not mean that you should not have a financial advisor, but you need to study and be a participant in your investment portfolio. Make sure that you have a very diversified retirement portfolio.
  • Growth potential. There are two ways to plan; (1) have enough money in your retirement account so you can draw on your principal and earnings and have enough to last for at least 30 years. Remember that inflation will be with us so you must figure a yearly increase in the amount you withdraw. (2) Is to save enough so that you can live off the interest and dividends paid by your investments and never have to touch the principal. In either case, chances are slim that you will be able to accumulate the needed dollars without earnings on your retirement dollars during the accumulation period.
  • Control and Access: Two very important words. In a retirement plan you should demand that you maintain total control over your assets, both during accumulation as well as distribution. This allows you to choose how and where to invest or spend these hard-earned monies.Every retirement plan should include setting some funds aside for unexpected events or emergencies. During your retirement years you should still maintain access to you funds. Things can change ( health, inflation, long term care, health care costs, etc). You must have access to your funds if you need it. Make sure you money is not locked up.
  • Start today, it’s never to late to start planning for your retirement. The younger you are the better chance you have of reaching your goals, but at any age, start. Some retirement is better than nothing.

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To become rich you must be frugal and have an investment , not consumption mentality.

Have a great day!

1 Comment

  1. Dr. Trish Dolasinski on April 10, 2010 at 4:23 am

    Nice job – and, good information.
    Trish Dolasinski

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