You have a business plan.  What’s your retirement plan?

Updated : Oct 23, 2019 in Articles

You have a business plan. What’s your retirement plan?

Patricia – Business Advisor : A
solid retirement plan is as important to
a small business owner as it is to
everyone else. Many business owners expect their business to support them
throughout their retirement, and while
this may be possible for some, it’s
important to know where you stand financially before you assume that
this can work for you. In order to make
this assessment, you’ll need to know
what the current value of your business is, and look at how much money
you’ve put away for your retirement to
date. A Registered Retirement Savings
Plan, or an RRSP, is a great place to start saving.
If your business is not incorporated,
your annual contribution limit is based
on your previous year’s business income. If you are
incorporated, you can set your own
personal salary in order to maximize
your allowable RSP contribution. In
addition to making RRSP contributions, why not
set up an individual pension plan, or
IPP. This is a defined pension plan
where you are the only member, and your company makes regular
contributions. It can be a great way to
add to your retirement savings plan.
You also have the option of an insured retirement plan or IRP. An IRP is a
tax-exempt life insurance policy that
can provide you with additional tax-free
retirement income. So you see, there are many options for retirement
planning, outside of your business
revenue. It just takes a little
planning! To learn more about saving for retirement, visit the link provided
in this video and download your free
guidebook on Personal Financial
Management for Business Owners.

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