"Two-thirds of small business owners do not have a written retirement plan, according to The Guardian Life Small Business Research Institute. You may be too busy managing the business, not planning on retiring or have complex family dynamics. As a small business owner myself, I understand the importance of committing to a plan and thought about these same questions:
"What does retirement look like for you? Develop a vision early on and create a plan centered around that vision. Be sure to coordinate your retirement plan with your overall estate plan.
"What is the best way to save for retirement? Consider establishing an employer retirement plan or individual and spousal IRAs. There is less temptation to pull money from non-commingled accounts that are earmarked for a specific goal, allowing your retirement savings to grow.
"In retirement where does my cash flow come from? Many small business owners view their business as a pot of gold for retirement. With unknown liquidity, it's not enough to count on the future sale of your business as your sole nest egg.
"How do I develop a succession plan? According to the Family Business Institute, only about 30 percent of family businesses survive into the second generation. Get guidance on not only the legal procedures and tax ramifications of transferring ownership, but also how to create the family legacy you envision. Do you want to find yourself in the top third? Transfer your succession and retirement plan from vague dreams to a concrete and attainable reality."
Ellenbecker Investment Group Inc.
N35 W23877 Highfield Ct.,
Suite 200, Pewaukee