Retirement Plans are not just offered in large companies. Businesses of every size can provide Retirement Plan savings opportunities. It is a way to prepare you and your employees for life after your working years. On average, it is suggested that you save 60% – 80% of current income in order to maintain your current lifestyle.
Unfortunately, the average working American is far below this targeted amount. According to the Federal Reserve, the median account value for Americans between the ages of 35-44 is $42,700 based on 2013 data. For those between the ages of 55-64, the median account value is $103, 200.
Small Business owners struggle more because they never get around to saving money for tomorrow. Usually they have invested all of their available cash and savings into the business if there is a profit to begin with. Another common scenario is when owners are buried under so much debt trying to sustain the business. Their ability to invest in themselves is compromised by the lack of financial flexibility to do anything beyond keeping the business afloat.
It is important to understand that your business is not your retirement plan. The good news is that with proper guidance and planning, small business owners can successfully grow their business and save for retirement.
Engage Forward LLC works with business leaders to evaluate their current financial situation and review Retirement Plan options that work best for their business model.