Do you own a small business? If so, then you already know,
all too well, how challenging it can be to run your business and look out for
yourself too. One important way that you should be “looking out” for yourself,
if you’re not doing so already, is by taking some of your money and putting it
into a retirement plan.If you’re not doing that, then you’re missing out in
some major ways.
Missed Tax Benefits
One of the big ways in which you miss out if you don’t have
a retirement plan is by not getting the resultant tax benefits. Most plans open
to business-owners, such as 401(k) plans designed specifically for them, come
with a great many tax benefits…benefits you don’t get if you don’t sign up for
a retirement plan. Such benefits include, in many cases, tax-deductible
contributions to your retirement plan, which is basically like free money, and
who would turn that down?
Missed Savings and Emergency Cash
Another problem with not having some kind of retirement plan
in place is that this can make it much harder to save money for the future.
And, when you don’t have money saved and retirement rolls around, what are you
going to do? You don’t want to be one of those people scrambling to make ends
meet in retirement and never truly enjoying what should be this golden time in
your life.
Furthermore, many retirement accounts, including 401(k)
plans, give you the option to borrow from your account if you need to, such as
in an emergency situation. It’s nice to have that built-in safety net, a safety
net you don’t have without a retirement plan, in case you or your business fall
on hard times.
As you can see, you miss out on all kinds of things- and
these are just a few- when you don’t save for the future. So, make sure you
have a retirement plan and that you make full use of it to get and enjoy these
awesome benefits.
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