Before making the kind of decisions on what investments to use in your business retirement plan like annuities versus straight mutual funds, your plan details and setup need to be decided first. It is definitely not the exciting part of starting a plan for your business. Mostly likely you are a small business owner that has finally reached a sustainable profit level or you are finally realizing that your employees will leave your business for another that offers benefits.
It can be quite complicated to get a new plan up and running. It will take some time and energy. You will also probably experience some frustrations as well. Your favorite employee may not even contribute or high paying salespeople might avoid the plan even though they might be the very employees you are trying to retain for the long run. After these frustrations and once you get the plan up and running, it is surprisingly simple to maintain.
If you are a business owner right now I cannot express enough the importance of a having a plan in place for you and your family. It is true that you might be able to sell the business for millions of dollars but keep in mind that by that time those millions could be tied to millions in operating debt due to competition, lawsuits, or even missed opportunities to advance that resulted in a dying market. Think - vinyl records. Think - VHS tapes. Do you follow this line of thinking? No one can predict the future. A fully funded retirement plan could literally save your financial life towards the end of your business life cycle.
That said, you need a place to begin. To get started read - What Size Should Your Business Be Before Starting A Business Retirement Plan?
Image by Tatiana Gerus at Flickr.com
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