When you’re CEO of your own business, retirement plans become your responsibility. It’s unfortunate that many companies don’t offer retirement plans. More often than not, the reason for this is busyness. This is a major mistake. A successful company considers the future of not only their own retirement but also of the well being of their employees.
Knowing that a retirement plan is important to have, take these necessary steps to obtain the right one.
Establish future desires.
When planning your future, you need to know what you are working towards. For example, are you retiring in a beach community or will you travel? Determining the final outcome of your later years in life will assist you in deciding which plan is right for you. Being specific with your expectations will help you set goals and current budgets.
Hire a Financial Advisor.
This individual will help you determine what retirement plan is best for you. They will also help you determine the right employee benefits, insurance plans, and other safeguards needed to ensure yours and your employee’s future.
Determine who you will pass your business down to.
In every job, there are successors waiting to take over when you pass the baton. It’s a little more difficult with small businesses. Many times when the owner decides to retire, the company retires with them. If this is something you are not considering, this article is not for you. However, it is important to understand that the more valuable your organization becomes in the present, the better it is for you in your retirement. That being said, planning a successor is ideal.
Hire a Business Attorney.
If you’re unsure of how to go about setting up a succession plan, it’s always best to speak with a lawyer that can walk you through the process. It’s also definitely a good plan to involve the individual you intend to pass the business down to. They will have to purchase your company to continue on as owner or relinquish ownership to all employees involved. Either route would require a lawyer to be involved.
Team building should start sooner than later.
Remember that you not only have to determine your retirement budget for after the fact, but you have to start researching tax implications and other financial factors that come with selling your business. This requires to you hire an individual that has knowledge in this area. After all, this is a decision that not only affects you as the business owner but other individuals that have invested in making your business the success that it is.
Hire a CPA (Certified Public Accountant).
If you’re unsure of tax implications and liabilities, this is the individual that will help you make the right decisions.
So remember, even though your business is in full speed ahead mode, discussions like retirement and succession are just as important to your company’s success. Be sure to invest in this to ensure a happy future for everyone.