Crafting the Right Retirement Plan for Business Owners

 

All businesses need a retirement plan, from a sole proprietor single owner to a corporation with a few thousand employees. What I can do is find out what type of plan is right for your business and begin an investment plan for you, your employees and anyone else involved. From a 401(k), to a SEP IRA or even a SIMPLE IRA there are many options to consider for business owners and you need to maximize your tax savings, while having a plan that will be there for your business as you continue to grow.

 

You wouldn’t start your business without a business plan, so why have a retirement plan for your business without a financial plan. If you are an organization with employees, we offer financial advisory services for all employees who participate in your retirement plan. This is an added value we do not charge for, and one that you can leverage for recruiting new, highly skilled, employees to your team.

If you are a business owner with a partner, it is essential to get a Buy-Sell Life Insurance Contract where each business owner purchases a life insurance policy on each of the other owners. If an owner dies, this allows the surviving owners to use the death benefit to purchase the deceased owner's share of the business, or to buy-out a surviving spouse. In most every case the business will pay the premiums and will be the owner and beneficiary.

If you have an employee in your business that upon death of said employee would drastically impact, or even ruin your business you must consider key employee life insurance. In a small business, this is usually the owner, the founders or perhaps a key employee or two.  The purpose of key man insurance is to help the company survive the blow of losing the person who makes the business work. 

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There are many things to consider when developing a financial plan for business owners, you can schedule a complimentary meeting with me and my Spartan Wealth Management team to craft a unique plan that is right for your business and have the confidence going forward that you will achieve your long term, and short term financial goals.