For small business owners, retirement investments can be a time of great transition. You may have spent years building up your business, and suddenly you’re faced with the prospect of not having that daily structure and purpose in your life.
It’s important to think about how you want to spend your retirement and what lifestyle you want. Do you want to travel? Spend more time with family and friends? Pursue hobbies or other interests?
Many options are available, and choosing the one that’s right for you is important. You may want to consult a financial advisor to help you plan for retirement and make the most of your assets.
A retirement plan is a strategy for how you will exit your business and transition into retirement. Without a retirement plan, you may work well past the age you want to retire, and you may not receive an adequate return on all the hard work you’ve put into the business. Planning for retirement investments can help ensure a smooth transition into retirement and provide you with the financial security to enjoy your twilight years.
You don’t have to plan everything out perfectly to have a successful outcome, but it is important to consider key issues and get advice from others to improve your chances.
Begin with the Basics
Before you can learn more advanced concepts, you must ensure you understand the basics. Once you have a strong foundation, you can build on that and expand your knowledge.
When do you want to retire? It’s a question worth considering carefully, as your answer will profoundly impact the rest of your retirement planning. Too often, small business owners don’t give this question the attention it deserves, and as a result, they end up working until ill health forces them to retire.
Making a conscious decision on a retirement age can bring all other questions relating to your retirement investments into sharp focus, and provide the catalyst for other key planning decisions that need to be made.
Build Your Business into a Retirement Investment
To ensure a smooth retirement, you must look closely at your business and plan for its sale or succession. This will ensure you have the financial resources you need to live the retirement lifestyle you want.
The next key decision is whether the business will be passed on to family members or sold. If it is to be passed on, a timeline for the transition must be drawn up, as well as an agreement for how any cash value extracted from the business will be paid.
Other business planning issues to settle include:
- Keeping inventory levels low by ordering the amount of stock it needs at any given time.
- Ensuring that all financial records are up-to-date and well-documented is important for any business.
- Reducing the amount of money owed to the business by customers, known as debtors.
- Identifying what these are so, they can be used to lower the amount of tax owed.
Settling these will help you understand whether you need to take measures to increase the value of your business or make changes to your retirement plans.
Prepare for This with New Wave Financial
Turn your current assets into valuable retirement investments with New Wave Financial Planning now! Using the best technologies, we can tailor our advice to each client’s needs wherever they are in Australia. Get educated on retirement investments for free, or get in touch with us through our website!
