Owning a business can be one of the most challenging, yet rewarding, adventures to undertake. Every new project is a great validation of your hard work & you’ve enjoyed years of success with plenty of happy clients. When you’re focused on running your business, it can be easy to put your retirement plans on the back burner. With so many other things on your plate, have you taken a moment to imagine or plan for your retired years?
Where to start?
When you’re a small business owner, planning for your retirement is vital. Unlike some Canadians who enjoy company pensions or employer matching retirement savings, your savings plan is spearheaded by you and planning early can make a big difference!
The first step towards retirement planning is to visualize the life you hope to lead. It can be helpful to make a list of things you’ve always wanted to do, places you’d like to travel to, or hobbies that interest you. Your list can be as simple as spending more time around your community or as grandiose as travelling around the world. For many retirees, giving up work completely is not how they prefer to spend their time. If that’s your perspective personally, you might consider adding jobs to your list that you may find enjoyable and allow for part-time or self-set schedules. Defining the life you hope to live is the biggest factor in your retirement plan, and will help you determine how much money you’ll need to save while you’re at it.
Where will your retirement income come from?
Canadians have several retirement savings tools available to them to help maximize their savings. Government programs like the Canadian Pension Plan and Old Age Security are available to all Canadians and help provide a very basic level of income. However, these programs are best used in partnership with savings tools like RRSP’s & TFSA’s that you would contribute to during your working years to maximize your savings for retirement.
These two tax incentivized programs help you grow your wealth well into retirement, so you can enjoy the lifestyle you imagine for yourself without financial concerns. Speaking with a financial advisor early on can help you determine which tools work best for you & will help you align your saving habits with your retirement goals.
What future do you plan for your business?
Everyone’s retirement goals are different, but as a business owner, it’s important you also plan for the future of your business as well as yourself. If your retired years take you globe-trotting to the far corners of the earth, is it a feasible decision to sell your company? If you plan on continuing to work in an advisory role, is there a family member or employee who can take on the lead role to manage the day-to-day responsibilities? Retirement plans for your business are just as vital as the ones you make for yourself and deciding which route to go will impact your own savings.
It’s important to speak to a qualified advisor like Darryl Smith to find a plan that you’re happy with and that will result in the retirement you imagine for yourself especially if your plan is to retire within the next 10 years.
Take on your next great adventure, your retirement, with financial peace of mind for yourself and your business. Give Darryl Smith a call at 705-434-0562, as your Synergy Life Financial advisor he’s always ready to jump in with both feet to find out what your retirement future holds! Let him help you live that dream retirement…it all starts with a phone call!