Self-employed? Your business is not a retirement plan
Though it may be tempting to invest all your profits back into your business, it's wise to put some aside for retirement
You're a successful entrepreneur and business is booming. Though it may be tempting to invest all your profits back into your business, it's wise to put some aside for retirement. Here's why. The benefits of diversification apply to everyone Unless carefully managed, the very traits that make you a winning business person — innovation, risk-taking, optimism — can be a recipe for retirement disaster. Everyone knows that the key to long-term investment success is a diversified portfolio. But my business is doing well Reinvesting profits into your business may offer excellent returns, and the tax benefits can be very appealing. You've likely convinced yourself that as your golden years approach, you'll be able to sell your business for a hefty amount of capital and ride contentedly into retirement. But study after study show that only 20% to 25% of privately owned businesses ever get sold. The value of a small business often comes down to the owner's skills, network and customer relati...
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