Is it something you ever think about?
I have found that many entrepreneurs tend to avoid that subject like the plague. But, it should not be avoided because we will not be able to go forever.
In today’s post, I am going to give you 6 tips to ensure you can retire comfortably. I hope they help you.
Retire Comfortably Tip #1: IRA
Known as an Individual Retirement Account, investing a percentage of your income is a wise idea to prepare for retiring.
There are 2 types of IRA’s you will want to consider:
- Traditional – This IRA accepts money before it has been taxed. But you can be taxed upon withdrawal.
- Roth – The contributions to this IRA come after your money has been taxed but when you withdraw, it will not be taxed.
Retire Comfortably Tip #2: Keep Your Business And Your Personal Finances Separate
Having your business and personal finances separated will help you not only with your taxes, but will also help you identify the best uses and strategies for your money for retirement planning.
Retire Comfortably Tip #3: Automatic Withdrawals
One of the first things we learn as entrepreneurs is to pay ourselves first. And out of that pay, you should set up an automatic withdrawal to your retirement account.
If it is out-of-sight, it is out-of-mind.
Retire Comfortably Tip #4: Make A Budget
Your budget should list expenses that are absolutes and expenses that are, shall we say, flexible.
As a business owner, the money can be volatile so, when you have a slow month, you can cut out a few of the flexible expenses.
A budget is necessary to ensure you save for a comfortable retirement.
We developed a handy tool you can use in your budgeting process. Called the Expense Tracker, you can take advantage of that tool by clicking here.
Retire Comfortably Tip #5: Build An Investment Portfolio
Building a portfolio of stocks is a good idea. I recommend stocks that pay dividends.
You may have people tell you to sell during downturns, but I also suggest you “ride out” those downturns. Holding them is usually your best move as they often rebound and do better than your original investment.
Another area that many people do not consider is cryptocurrency. The blockchain has been roaring for a few years now and as a co-founder of Nasgo, we have witnessed many small businesses tokenizing to fund their business. You can often invest in these businesses by purchasing their tokens and as the business grows, so will the value of the token.
Retire Comfortably Tip #6: Education
Just as you are reading this blog, I suggest seeking out any, and all resources that can educate you on ways to save and invest in your future retirement plans.
You may consider hiring a financial adviser and by all means, read books, take courses and attend financial seminars to educate yourself.
One of the most important tips I can give you in today’s post is do not put all your eggs in the same basket. If your depending on that 1 IRA or 1 stock, you are apt to have problems. What happens if it “tanks?”
By having investments and savings in various areas, if 1 has issues, you have back-up.
Do you have any questions? Go ahead and post them below and I will answer them if I am able.
Thank you for popping in and I hope you found value. If you did, please share it with others.