Here’s a startling statistic. One in three small-business owners aren’t prepared for retirement. USA TODAY reported last week that the American College surveyed small-business owners and found that about a third of the owners “do not have a personal or business-sponsored retirement plan such as a 401(k), a SEP IRA or deferred annuity.
We might be an optimistic lot but this isn’t good. We will stop working someday (or at least slow down). So your income from the business will also stop or slow down. And if you’re counting on financing your retirement from selling your business, ask the owners who tried that over the last 4 years.
One of the reasons small-business owners aren’t prepared according to Gary Kushner, CEO of a human resources consulting firm, is that setting up a 401(k) for the owner (and employees) is a big challenge that most owners don’t feel they have the knowledge and time to do.
If you’re a small-business owner in South Carolina, the Small Business Chamber is riding to the rescue.
Within the next few weeks we will have a new member benefit plan that will let small businesses join a 401(k) Multiple Employer Plan that will offer the employer and employees a menu of over 40 brand name money market funds. By combining with other small businesses through the Small Business Chamber’s 401(k) Plan our members will find reduced set up, recordkeeping and administrative service charges. Our members will save $200 up front and another $200 every year of the plan. Plus, a professional will make setting up a plan simple.
If our members are only interested in a solo 401(k), our program through Complete Investment Management and plan administrator My Benefits, LLC, can help there also.
If you can’t wait to find out more, email me at sbchamber@scsbc.org and we’ll be in touch.
Owing a small business is truly an opportunity to dramatically improve your own personal wealth. Don’t throw it all away from a lack of planning, saving and investing.