By: Michael J. Searcy
Using money you've worked hard to earn on your business makes sense. While other people are spending money on new cars or vacations, you hardly miss the funds you spend on your business because the prize at the end of the spending tunnel is in sight. You can see how the funds are helping to reach your goal of building a successful business.
Treating your retirement fund like another business is a strategy that can help set you up for future success. Payments you make today toward your retirement are funds that can be saved and invested to experience the benefit in the future. Think about why you own your business... Chances are you find joy in watching your business grow, and you expect it to provide a future payoff or benefit after years of dedication and hard work.
By viewing your retirement fund as a second business, you can experience the same feelings and benefits as your retirement account grows due to your diligent saving and investing, and you have the potential for a big payoff in the future!
Put Your Dollars to Work
Just as employees work in your company, your dollars work for you in your retirement portfolio, if you put the right amount in the right places. Choosing the right investments is like finding the right employees for your company – you want them aligned with your goals and divided appropriately among the various departments or "sectors" of investments. Knowing where to place your dollars will depend on your risk level, time horizon and market conditions. Working with a financial advisor who takes these considerations into account when developing an investment policy for you can keep your resources on the right track.
Commit to Incremental Upgrades
Don't be discouraged if you can't save as much as you'd like when you start your retirement savings. If you really had the dream of starting a business and believed in what you were doing, would you let not having all the funds necessary from the start keep you from moving forward? No, you would start where you could and work to raise the money. Additionally, if you wanted to advance your business through technology upgrades, but the expense was too high, you would make small upgrades toward implementing the technology as the funds became available. The power of making incremental changes to work toward a goal is a great strategy for accomplishing a goal. You can make incremental upgrades to your retirement plan by starting with an amount you can save today, and then increasing that amount over time.
Start Saving NOW
If your ultimate goal is to save 10 percent or more of your annual income for retirement, but you can't make that commitment from the beginning, start by saving as much as possible. Each year, you can increase your contribution until you reach your target. It's actually better to start small (if necessary) and increase your savings each year rather than waiting for the day when you can save the entire 10 percent at one time.
How dedicated are you to your "second business" of preparing for retirement? In every business there is room for improvement and you can start today to make a difference in your retirement savings. Are you ready to say, "Business is good!"
Originally published in Mission Hills Magazine
Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this content, will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for you or your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter (article) serves as the receipt of, or as a substitute for, personalized investment advice from Searcy Financial Services, Inc.
The content of this letter does not constitute a tax or legal opinion. Always consult with a competent professional service provider for advice on tax or legal matters specific to your situation. To the extent that a reader has any questions regarding the applicability of any specific issue discussed in this content, he/she is encouraged to consult with the professional advisor of his/her choosing.