(NC) Do you keep an eye on your retirement nest egg despite the distracting, day-to-day tasks of running your small business? Many of us don’t, but there are some clever ways to be proactive for future financial security.
Meridian, Ontario’s largest credit union, offers the following tips to help small business owners start saving for their dreams:
Start now. Retirement planning is important for everyone, but small business owners are often guilty of funnelling all their energy, time and resources back into their business. Saving for retirement is a marathon not a sprint, so starting as soon as possible is vital.
Your business succession plan is only part of your retirement plan. You need both. A succession plan should be one aspect of a holistic retirement plan.
Understand your sources of retirement income. Many small business owners make the mistake of thinking that selling their business will be their primary source of funding for their retirement. But that’s not always the case. Some small business owners plan to pass the business down to a family member or the value of a business may fluctuate over time, leaving the owner without a significant nest egg. Retirement income from government sources such as the Canada Pension Plan and Old Age Security may simply not be enough to fund your dream retirement.
Assemble a team of trusted experts. Working with trusted professionals including a financial advisor, tax specialist and lawyer will help you better understand your options and tailor solutions based on your full personal and professional financial picture.
Make it automatic. Pre-authorized contribution plans are a great tool for contributing to registered saving plans or tax-free saving plans. Most financial institutions provide pre-authorized contribution plans that automatically transfer funds from your chequing account into your savings investments on a regular basis.
Find more information at www.meridiancu.ca.