This blog post contains the transcription of a free virtual Lunch & Learn we hosted in April 2024 titled, “Planning for Retirement as a Business Owner.” You can view all of our upcoming webinars here.
Top Retirement Tips for Entrepreneurs
Who are the Top Experts to Know?
Misty Lynch, CFP® is a personal finance expert and the Owner and CEO of Sound View Financial Advisors, LLC. Misty hosts the unscripted reality show HEARTBROKE and the Demystifying Money podcast. She is also the author of the DEMYSTIFYING MONEY book and a personal finance expert and resource for media outlets including The New York Times, Cosmopolitan, CNBC, CNN, Investopedia, Real Simple, Student Loan Hero, and many others.
Investopedia named her one of the Top 100 Financial Advisors in 2021 and US News and World Report called her one of the 9 Women in Finance to Follow “because sometimes you need life advice, not just financial advice.”
When she isn’t working, you can find her reading mysteries, skiing on the East Coast, or coaching her kids’ basketball and field hockey teams.
Nicky Morong is a Certified Financial Planner®, author, coach, and entrepreneur. In over a decade as a financial planner she has helped thousands of clients and students use their money to live and achieve their ideal lives. Her program, Profit 2 Wealth teaches entrepreneurs how to maximize personal profit from their businesses and leverage those dollars into more lifestyle, passive income, and generational wealth. And she walks her talk. One of her most significant personal financial achievements is retiring her husband from a career in teaching so he could explore entrepreneurship and their family could chase the sunshine, moving cross country to San Diego in pursuit of their best lives.
Brendon Elliot has been in financial services for over 14 years. In 2013 Brendon was made a Partner in the Boston General Office of New York Life. In 2017 he founded Cornerstone Financial Group, LLC to provide more extensive and personal service. Here, he still maintains an agency relationship with New York Life and the Boston General Office but is not exclusively restricted to New York Life and their products.
Brendon takes a fully integrated, proactive approach to financial planning, custom to each individual client’s needs. His focus is working with individuals, small businesses, young families, and retirees/pre-retirees, while also providing options for wealth protection.
Brendon is currently insurance licensed in sixteen states and holds twelve state securities licenses. Cornerstone’s main office is located in the heart of historic, downtown Plymouth, MA convenient to Routes 3 and 44.
How Can You Plan for Retirement?
The Overwhelming Aspect of Choices
Our brains, attuned more to survival than to thriving in choice-rich environments, can feel overwhelmed by the multitude of decisions we face daily—from picking what to watch on TV to serious financial planning for the future. For business owners, prioritizing retirement planning amidst urgent business needs can be particularly challenging.
First Steps in Retirement Planning
The first step is to acknowledge the necessity of a plan and give yourself permission to start making decisions—even if they are imperfect. This proactive approach involves focusing on critical decisions rather than getting bogged down by every available option.
Start Small, Think Big
Starting small can significantly impact your future. Regular, even minimal contributions to a retirement account can compound over time, providing substantial savings later in life. Understanding that perfection isn’t required from the outset can liberate you from inaction.
Understanding Your Current Situation
It’s essential to take stock of your current financial situation before making any plans. This snapshot provides a foundation for more tailored, effective planning and helps identify potential risks that could impede long-term goals.
The Role of Advisors
Financial advisors can play a pivotal role by helping navigate the myriad of choices and challenges that come with retirement planning. They offer personalized advice, grounded in an understanding of your unique business and personal circumstances.
Investment as a Stepping Stone
Investing—even in small amounts—is better than inaction. The process of investing can start simply, with small amounts placed in accessible investment accounts, and grow more sophisticated over time as your financial situation improves.
Tax Considerations and Retirement
Business owners have unique opportunities to optimize their retirement savings through various tax-advantaged strategies. These can include formal retirement plans for employees, which not only benefit the business owner’s future but also enhance the business’s appeal to potential employees.
Comprehensive Financial Health
Staying informed about your business’s financial health is critical. This awareness ensures that you are prepared for various business scenarios, including growth opportunities or potential sales.
The Journey to Retirement
Retirement planning is not just about reaching an age or financial goal but about understanding what you want your life to look like during those years. It involves a strategic approach to savings and investment, leveraging professional advice, and making informed decisions that align with your long-term lifestyle goals.
In conclusion, while retirement planning can seem overwhelming, especially for busy business owners, taking intentional, informed steps can make a significant difference. It’s about starting somewhere, focusing on what’s crucial, and adjusting as needed—always with an eye toward the future.
Resources for Massachusetts Businesses
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