Retirement Planning Tips for Entrepreneurs

Retirement Planning Tips for Entrepreneurs

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Most of the time, entrepreneurs are caught up with the stresses and details of running a small business and sometimes don’t have the time or resources to plan for their own financial future. According to a survey from TD Ameritrade, 70% of entrepreneurs aren’t contributing to a retirement plan. Forty percent of self-employed individuals aren’t saving regularly, and 28% aren’t saving at all. 

It’s never too late to start being retirement-savvy. And while the sometimes unpredictable nature of small business can make your monthly financial planning, well, unpredictable, here are some steps you can take to gain control of your retirement plan:

Business vs. personal

This may seem like a no-brainer, but some people don’t separate their personal banking from their business accounts, and it muddies the waters, so to speak. When taxes come around, it’s a lot easier to sort out the expenses and income when it’s correctly allocated.  It also makes it easier to plan and strategize for your retirement.

Your business is not a retirement plan

Emptying out your retirement fund (if you have one) may get your company going in times of need, but it won’t do you any good when retirement finally comes around. It’s important to set up a financial safety net that is completely separate from your business. After all, you are the one who will be retiring, not your company.

Set up a Solo 401k, SEP IRA or a Simple IRA. Talk with your investment advisor, and work out the best spread of your resources in a sensible investment portfolio.

Put savings on autopilot

Make your retirement savings an automatic process. It can be difficult to set aside your savings when your monthly income is variable, so talk to your investment advisor and figure out the best strategy.

  1. Review your past earnings, and determine an average, calculating what amount should be contributed to your savings every month.
  2. Take 10-15% of every paycheck or owner’s draw, and put it straight in your savings plan right off the top. In other words, you are the first person who gets paid out of your income.

Looking ahead

The unexpected can be counted on. Always. So plan ahead for the unexpected by having more than one fallback fund that can bail you out in times of need.

Find a good advisor

The options available to an entrepreneur can be overwhelming, so find an advisor you can trust, someone who will offer a middle ground approach though that will not guarantee results and work to secure a financial future for you and your family.


Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances.



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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website:

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Jake Mendlinger
Account Manager
516.829.8374 X 232

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