Invest beyond your business
By Roger Pierce
Are all of your retirement eggs in your business basket?
Building wealth outside of your business could reduce the risk of relying on just one income source to fund your Golden Years.
Your most valuable asset may be your business, so it’s natural to count on the money its eventual sale will generate to contribute to your financial needs in retirement. To achieve that goal – that dream – you’re likely doing all the things that build the value of a business such as installing and training a capable management team, developing a recognized brand, standardizing systems and, of course, relentlessly pursuing operating efficiencies.
You deserve all due rewards. You deserve a big payday from your business.
However, as terrible as it is to contemplate, astute entrepreneurs must ponder a few chilling scenarios regarding that future event.
• What if the sale of the business doesn’t fetch the amount of money you need to retire?
• What if it doesn’t sell when planned?
• What if the business doesn’t sell at all?
An even worse scenario is the business fails.
While none of these things may happen, you may decide that wealth diversification may help you (and your family) to sleep better at night.
There are many options available to help build your investment portfolio, including RRSPs, a Tax-Free Savings Account (TFSA), real estate holdings, Guaranteed Investment Certificates (GICs), stocks, bonds and savings.
It’s worth investigating these and other options.
As any changes to your plans may involve both personal and business assets, it’s best to speak with your team of advisors to gain the advantage of
full-view input. Contact your personal financial advisor, accountant, lawyer and Scotiabank Small business advisor.
Are you investing outside of your business? Please share your suggestions for other business owners.