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Health & Fitness

Business Owners: Don't Risk Your Financial Future

I hate reading news like this: the Fox Small Business Center reports that one in three small business owners don’t have a retirement plan and have no idea how they will retire. This is scary.

Especially in this fragile economy and this time of government cutbacks, we all need solid retirement plans. This is particularly important to me because I believe every financial advisor and every financial coach should focus on educating clients and motivating them to prepare for major issues like retirement.

More Important Than Healthcare Reform
I’d even argue that your preparation for retirement is more important to your future financial well-being than healthcare reform or tax policy changes or the other issues that seem to dominate today’s headlines.

Have you estimated how much retirement will cost you? Without a good grasp of that figure you can’t be well prepared to take care of yourself and your family in the coming years.

Don’t Focus Only on Cash Flow
Yes, I know that as a small business owner you have a lot of other issues on your mind. Increasing profits, developing new markets, keeping your operation efficient, meeting customer demands – these all are vital concerns and can overwhelm you. I know many business owners who focus on cash flow and balance sheets. I’m not saying that’s wrong. I am saying that business owners need to also plan for your future.

And just developing an estimate of your retirement needs on your own isn’t enough. The business owners who build a comfortable retirement are those who work with a qualified financial advisor or coach who they can trust. Your financial advisor or coach will make sure you consider all major factors. He or she will make sure you build a retirement strategy and plan that’s realistic. A qualified financial coach will be sure you document your plan in writing and keep it up-to-date.

In my next post I’ll talk about what business owners can do today to take immediately positive action that will reduce their financial risks in retirement.

For more information you can always call me, Gene Offredi CFP, RFC at Summit Investor Coach in Guilford at 203.453.1017.

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